The loss of employment is devastating to families. Many people are faced with the prospect of having fewer dollars to meet the same bills. However, there are steps that you can take to help ease the pain. People are displaced from employment for a variety of reasons, regardless of the reason, blaming yourself will not solve the problem nor will blaming others. Eventually, you will find employment, the question we face is what to do in the meantime. It is normal to feel stressed, but once the initial shock passes, don't panic. What you need to do is develop a plan to help you survive this setback until you find your next job.
The first step is to file for unemployment. This should be done immediately when you are notified by your employer that you are losing your job. You should gather all the information needed to file for unemployment by telephone (1-800-320-2519) or internet (http://wwwmoclaim.com). You will need your social security number, name and complete mailing address of your last employer, the last date of employment, documentation of active military service, if applicable, and your alien registration number if you are not a United States citizen or national. Unemployment insurance does not usually begin until the third week after you file, so file promptly. If you are denied unemployment benefits, you have the right to appeal this decision by mail or fax to the address listed on the determination letter. Your appeal must be in writing and include your name, social security number, the document you are appealing and a detailed explanation of why you disagree with the determination. If you are not eligible for unemployment insurance, you should contact the Missouri Career Center to determine if you qualify for other forms of public assistance.
The next step is to discuss your circumstances with your family. Unemployment is hard on the whole family. Everyone feels frustrated and need to express their feelings about the situation. All family members should be included in discussions about the decisions that must be made. Talk about what is really important (what you have to have) and what is not so important (things you can give up temporarily). Use this as a guide to determine what each family member can do to help. Agreeing and working together to meet this challenge can help your family grow stronger.
The next step is to take a close look at your personal resources, what you have and what you own. Taking stock may point out some assets you could use during this period that you hadn't thought of before. This may take some time, but the information can be helpful. List your financial assets, what does your family own. Gather financial records such as bank statements, savings accounts, certificates of deposit, cash value of life insurance, investments, etc. Determine the market values of your property such as real estate, furnishings, vehicles, boats, campers, 4-wheelers, and jewelry. Try to determine how much they would bring if you sold them. Once you finished listing all your financial assets, you will have a new realistic picture of what you own. Don't be rash; keep in mind the value of these items to you. If you will need them in the near future, don't sell them. On the other hand, if you don't want them anyway, selling them might make sense during this difficult time. Consider non-monetary resources you and your family have. Personal talents, knowledge, skills, time and energy you may be able to put to work for you. Ask yourself if you can substitute activities that will do the same job for less. For instance, can you cook from the basics rather than using convenience foods or rent, rather than buy costly equipment you seldom use. Be conservative; ask yourself "how can we get more use out of things?" Avoid waste; keep your possessions in good condition. Get the most use or satisfaction out of each car trip, oven use, and washing machine load and clothing dollar spent. Determine if your family has talents, time or resources that could be put to use in a new, more productive way. Can you rent out a room, clean homes, do car repairs, and babysit to increase earnings. Get you children involved mowing the neighbor's lawn or walking their dog. Always, try to barter or trade when finances are involved. New ideas can boost your spirits and ease the stress of unemployment.
The next step is to develop a budget. The University of Missouri Extension has budget worksheets available at our local office to help you achieve this. The worksheets help you to estimate expenses and decide where cuts can be made. Living on less is difficult. It is hard to cope with the fact that you can't spend as much as you have in the past. A budget is a useful tool to take control of your finances by setting your own priorities for spending less.
The next step is to set priorities for debt. Above all, do not ignore your bills. Make a list of creditors and outstanding debts. Include the name, address, telephone number of your creditors, account number, and balance due and minimum monthly payments. If it looks like you are over your head, don't panic. Develop a revised payment plan to pay your debts as you can. You must set priorities. It is important to pay first things first when money is short. In general, your highest priorities will be mortgage or rent, followed by utilities, groceries and car payments. It is important to communicate with creditors before you get behind. Explain your situation as soon as you realize you can't pay your bills. Be honest and courteous. Tell them you have lost your job and need to make arrangements to reduce your payment plan. Keep a record of the dates and times of your conversations and the terms of your revised agreements. Request a paper record from your creditor of the new terms and follow up with letters to them. Send the letters by certified mail with a return receipt request. Most creditors would prefer to receive smaller payments on a regular basis than to begin an expensive collection procedure. Above all, stop credit purchases.
Finally, watch out for financial scam artist and predators. High-cost lenders, debt consolidation scams and phony credit counselors target people in vulnerable situations and may deceive, manipulate or engage in outright fraud to get you to engage in activities that are a waste of time, money and not in your family's best interest. Do not allow anyone to encourage you to sign contracts which may include hidden fees and charge money on the front end. If it sounds too good to be true, it probably is. Signs of predatory lenders include pressure to accept an offer immediately, ignoring or evading legitimate questions, signing blank papers, charging extreme fees or pressure to take out a loan larger then what you requested. A lender who is hesitant to fully answer your questions and reveal all cost such as annual percentage rates, payment amounts, due dates and extra fees is a red flag.
The loss of employment is freighting, however, keeping your head and developing a plan will help you survive and be financially stronger when you do find your next job. It can also be an educational experience that will continue after you find a job. Communicating with your family on finances, reducing your level of spending through budgeting, keeping list of creditors and assets and knowing community resources have value even when you have employment. Most importantly, the lessons we learn during a time of unemployment make us stronger and wiser and help us prepare during good times for difficult times.
The University of Missouri Extension office is open Monday -- Friday, located in Kennett, Missouri at 233 North Main Street. Contact 573-888-4722 with questions or comments. MU is an equal opportunity/ADA institution.