As more and more of us on DU are laid off, here is some (Hard earned) Advice

[truedelphi]

First of all some spiritual advice:

Number One: Don't beat yourself up.

This society of ours has become more and more accusatory and more and more neurotically focused on trifles than at any other time in history.

Whatever reason you may have been given for your being let go, laid off, and told not to come back, be kind to yourself. If there is part of the message that would help you to learn about personal undesirable traits, remember you can't change yourself until you have given yourself some approval.
Only then can you change.


Now on to economic matters:
Second of all, the moment that you can't pay for your credit cards, call the company that issued them and see about cancelling the card. That cancellation will not allow you to be free of whatever balance amount you owe, but it will allow you to avoid being penalized from $ 19 to $ 59 each month for being behind late in paying and for being over the allowed credit card limit.

Those penalties will indeed add up - and yes, I know, you are always optimistic and always believing that a new job will come along next week or next month, or that maybe you'll win the lottery. In any event, you should at least know that you have the right to cancel the damn cards before the next ten months of employment add an additional $ 600 to $ 1,000 in PENALTIES to each card.

Third of all, if you have had a job that offered you benefits, and you are now being offered COBRA for your health insurance coverage, make yourself fully acquainted with the Health Care Tax Credit.

This is a form, 8885, that you can download over at the same IRS website where you download your 1040. It comes with 3 pages of instructions.

It is my belief that if you really study this material, you will be eligible for as much as 65% of the amount you pay into COBRA. Although My Husband and I did not have the ability to do a different type of insurance, for those of you who get a private insurance after lay-off, there are benefits spelled out inside the 8885 as well, I am just not familiar.

For us Baby Boomers, COBRA health insurance MONTHLY payments can be as high as $ 500 for a single individual, and $ 980 for a couple. It may also be possible to get this deduction and/or allowance sent to you even before the tax year ends.

Knowing this may make a difference in whether or not you decide to do COBRA. For some people deciding to do or not do COBRA is not an option. (For instance if there is a life saving surgery only a month or two down the road, you may have to do COBRA to have the operation.) But in any event, being able to recover a good portion of the COBRA payments might help you stay economically healthy. While being insured as well.

Keep excellent records of your COBRA payments as they will be needed to complete the IRS form 8885. This includes keeping copies of your initial letter of enrollment, the lump sum payment that you initially make, and all subsequent monthly payments.

Good luck and may God (or Goddess) Bless.

[XboxWarrior]

1. I hate long posts.....

and I never have believed in "god"

whew.......

[truedelphi]

4. If I had read this post a year ago, I would have saved myself

A lot of grief, and had a much easier time surviving.

It's long, but then anything related to the IRS is gonna be long.

I mean the short version of this would have been, - "Guess what folks: There is a form on the IRS website that might help you in at least one aspect of your life pnce once you are unemployed.

But since i never make long posts, you read all the IRS forms and then you figure it out."

[onehandle]

5. Thanks for nothing! nt

[lonestarnot]

6. Well, you're in bad shape then aren't you.

hmmmmmf.

[BeatleBoot]

9. Here's a short post that won't waste your time.

Bite me.

[Sugar Smack]

13. What was with all the porn in the beginning?

I mean, I'm not trying to pile on, but I don't get it.

[tkmorris]

17. You think that was long?

That........... saddens me.

[Scout]

28. short attention span? n/t

[Karenina]

40. Sesame Street quick cut early training...

That was NOT a long post.

[Yael]

32. This is the future of our country, people.

I don't know whether to laugh or cry.

[Fed_Up_Grammy]

2. Great advice---thanks. (And it's Goddess,by the way. LOL)

[onehandle]

3. Thanks for the advice! nt

[BeatleBoot]

7. I paid well over $ 1,000 for Cobra

for a couple.

But thanks for the info on Form 8885 - I will look into it.

Hoping this was pertinent for the 2007 tax year.

[truedelphi]

10. I haven't started the 2007 taxes yet, but the form exists on the website.

So I think it still applies.

Also I didn't mention this in my OP - but you can also have help if you are not under COBRA but private insurance.

That wasn't my case, but it may be some other person's situation.

[BeatleBoot]

12. Thank you.

:yourock:

[ayeshahaqqiqa]

8. Good advice

I don't have credit cards and don't have insurance, but I'd like to offer a few more tidbits, if you don't mind.

1. Look around for many little jobs you can do. One way to do this is to volunteer. When I lost a job and was unemployed with a year, I started teaching computer skills to senior citizens, a new field for me. I made a website for them, and then got jobs making websites for people-simple ones, but it does bring in some money each month. Also, I used the contacts from the senior center as references that helped me land a full time job.

2. Trade off tasks with others--barter is a great way to get along.

3. Look for opportunities to sell things-old stuff, crafts, even garden produce

4. Know your neighbors-they can be a great support group in hard times.

[truedelphi]

11. I hope everyone reads your FOUR pieces of advice in the posting above this.

Everything you say applies.

[mdmc]

15. more!

:kick:

[Alameda]

44. Good advice

I also lived like that for a while. Hopefully, my current employment will last until something better comes along.

[Deja Q]

14. No jobs out there; I'd rather study up for a quick and painless death.

Sorry, I know that's not going to be a popular response.

[truedelphi]

19. One reason I'm still here typing my long posts

is I wasn't clever enough to discover any quick easy way.

Though there were nights when so many threats were looming, I truly thought my heart rate's accelteration would do me in on its own!

You have my sympathy and support.

[Viva_La_Revolution]

16. Excellent advice. I'd like to add...

visiting the Frugal and Energy Efficient Living Group
http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=353

The Cooking forum has some great threads on cheap meals
http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=353

And somewhere in the DU archives are several threads with excellent tips on saving $$$.
I'll see if I can dig some up...

[truedelphi]

18. Please please do.

I am rather sick of the meals I have been cooking - they are nutritious but drawn from the same tired palette.

[Viva_La_Revolution]

20. here ya go...

:)

I need some tips
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=105&topic_id=6872165

"Oldsters" advice to the young ones.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2700067

On surviving
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2681158

Post your budget-stretching recipes here
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2101012

Have You Stopped or Curtailed Discretionary Spending?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=1935340

Prepare your family for the hard times ahead.
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=383196

Could YOU Live on $1 a Meal? Four House Dems take the "Food Stamp Challenge" to Promote New Bill
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=934325

The coming Depression, what is smarter Canned goods or MRE'S?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2732701

How to do better in this economy
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2548486

[truedelphi]

29. I've made it through three or four of these

And will get through the rest later.

They've been great. Really enjoyed SoCal Dem's advice to younger people.

Lately I have been in enough of a funk that my only advice to the younger crowd was found on a Tee shirt I spotted the other day:

"Always remember that age and treachery trump youth and skills!"

[bbinacan]

21. Here's something I learned about COBRA.

When I was laid off in 2005, I found I had 3 months to activate the coverage. I was told the coverage was retroactive. So, if I got sick in, let's say month 2, I would be covered as long as I activated COBRA and paid the back premiums. Luckily, I didn't get sick and got a new job in 6 weeks. I hope this helps.

[truedelphi]

22. For most COBRA would-be-enrollees that is probably the case.

However the former employment entity we were stuck with would not have allowed that to happen.

We were told by the local customer relations people at the hospital where we go that the unnameable entity really seemed to enjoy screwing people over.

And since my husband needed an operation to happen in six months or so, our having the information about the tax code would have been the most helpful.

PS Glad to hear you are back on the rolls of the employed.

[bbinacan]

23. If I'm not mistaken

the law allows for two months to retroactively activate COBRA.

[truedelphi]

24. We had an all important Doctor visit

About six weeks into the COBRA period.

The doctor saw us and he and the office staff insisted that we were enrolled.

Then we went to the lab to get some ultra important tests that the Husband had to have. The lab personnel told us we were not in the system.

The supervisor told us we were not in the system.

We believed we were- after all, we had just been seen by the doctor at this facility two floors up and supposedly on the same computer system.

I insisted that we were in the system and demanded my husband receive tests. Like you are saying, from YOUR reading of the information, I had read the information packet and I believed We were within our rights. I did not yell or scream, just kept re-iterating that we had to be seen and be covered.

Security was called. Luckily the security officers were very sweet and basically took my side, but in the end, we still were escorted out of the facility.

This hospital's customer relations people said that the reason this happened is that the head of the COBRA position at my former husband's job would not EVER sign off on any one being covered until the department handling COBRA received the payment. Supposedly, there is a loop hole that says it is UP TO THE ADMINISTRATOR in all cases. And that this particular ADMINISTRATOR never signed off on anyone getting seen or covered until the lump payment was made.

So that is my experience. Whether in the end we were or were not covered, or should or shouldn't have been treated like this, I will never know. But this is only one of about forty BAD experiences we had with health care in the USA over the last twenty four months, any one of which was Michael Moore, SICKO- worthy. (When you are paying $ 900.00 a month to be covered and still have terrible health care, you really realize what crap our HC system is!)

If you are right and the hospital customers relations people are wrong, then I had (as in past tense) a lawsuit against the Former employer. But over a year has gone by, so it wouldn't do any good.

[bbinacan]

25. I'm so sorry

to hear about your difficulties. You may want to check this site if you haven't, but I suspect you have. Best of luck.

http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

[TexasObserver]

26. Thank you for making this attempt to help others.

Anyone facing a period of unemployment and therefore lowered revenues should remember this:

Keep your cash for what you absolutely, positively have to pay. That means you have to be able to pay for:

1. a place to live
2. electric, gas, water, phone
3. food
4. auto insurance
5. auto payment

You cannot get by without paying these items, so if you must choose between paying them and keeping your credit intact, you must survive to fight another day. Don't be too proud about it. Everyone has bad times, and when you're in it, strive to survive.

There are approved groups who will interface with credit card and other creditors, and they will help you get your best deal, often free of charge.

[truedelphi]

35. Great advice in all that you say. Thanks!

It's too late to edit my OP but if I had known how many DU'ers would have shared by posting all the things they ahve learned and understood, I would have.

[Snarkoleptic]

27. Two quick pieces of advise...

First, if you can't afford COBRA, by all means get some type of health coverage.
This is important even if you have a $5,000 deductible.
If you have any gaps in your 'credible coverage', the next time you get a policy, they'll exclude pre-existing conditions.

Second, post your resume on Monster, Careerbuilder, and the rest.
Once per week, edit your resume (add a word, delete a word).
Any change in your resume will make your resume float to the top and you'll be 'fresh meat'.
A stagnant resume drops rapidly in the search results.
You can track the number of times your resume is searched and reviewed.
Every time you update, you'll see a spike in activity.
Good luck!

[truedelphi]

30. I'd say point one is excellent advice if getting the insurance

Doesn't mean you'll be living in your car.

And there is really no way to tell about the pre-existing conditions thing.

If you saw "Sicko", insurance companies will sometimes take your money, enroll you in their program, and then when you need the operation for let's say, removing cataracts, go back and show that this condition BEGAN during a period several years before.

So technically yes, doing as you suggest does get you the insurance, but what good is the insurance if when you need to use it, you are denied?

[NNN0LHI]

31. Thats not a real comforting photo there

Hope it doesn't come to that.

Don

[truedelphi]

34. The "Monster" CareerBuilder advice -- Very timely

I always forget that!

And i am about to psot my resumes there.

[Yael]

33. Lots of good information here. K&R and bookmarked.

[cascadiance]

36. Also be very careful about your start date with a new job and your unemployment payouts

Make sure that the weeks you are claiming DON'T overlap with when you are officially on the new job. And keep good records of your offer letter and your first paycheck stub so that you can document when you started. Why you ask?

Well, the state and various companies DO fuck up some times in their record keeping, and it can be a REAL hassle trying to get things fixed when they do.

Fortunately I had my records to prove that they were wrong when they were alleging that I was falsely claiming benefits for a week or two that they claimed I was working my new job but I could show that I wasn't. Their original mail solicitation to me was sent to my address two addresses in the past and got lost, so they were claiming that I owed them that unemployment money plus a bunch in penalties and fines. They withheld my tax refund (never mind that my tax return DID have my proper mailing address on it where they could have contacted me), and I wound up having to go to court where to get my money back, as they couldn't clear things up just through phone calls and mail communications. Was kind of awkward having to explain that to my present job then, which kind of pissed me off!

[truedelphi]

37. I hope everyone reads what you are detailing

I had a similar type of thing happen about twenty years ago.

Many years ago, I went off unemployment to work for this real dingbat of an attorney. I quit after three days.

When you are unemployment in CA, you must report the wages as belonging to the week when you worked. Even if you are not paid for that week.

It took me months to get the payment for the few days I worked.

But that was not the real problem. Unemployment decided that I had worked for him during the much later time period. They said I SHOULD HAVE reported the income for that period instead of what the law actually provides.

They could even see on their computer screen that I had reported the amount as their law required.

But they said I was fibbing - and that for that fib, I would spend 16 years in jail.

You have to understand that once it gets to this point, you are in the Fraud department, and those people want a conviction, so that they can get a promotion in a few months.
A friend who is a California lawyer intervened - they listened to her, though they would not listen to me. They kept saying, Who should we beleive - you with your pen and paper journal, or the lawyer who employed you and whose records are on the computer?

This was all over a matter involving less than $ 150!

[truedelphi]

38. The section where the private and Cobra reporting on the 1040 would go

(I believe - if you have a friend who does accounting you might ask them)
would be the second page of the regular 1040.

Line 55, for tax year 2006. (It should be that line or very close to that line in 2007)

You fill in on the blank that is provided, form # 8885 and list the amount. (You derive this amount by downloading all four page of the 8885 and reading them and do the calculations involving your total one time lump sum and all subsequent payments, then calculate as required. Plus assemble your receipts and proof of enrollment, etc.)

[dysfunctional press]

39. People have to remember that COBRA is retro-active for up to 3 months...

do NOT sign up for it unless/until you need it- hopefully you'll be back at work and/or covered by another plan before the need arises.

[Doremus]

41. For 8885 you have to be a retiree?

If I'm reading the requirements right, you have to be receiving a pension or be an 'eligible trade adjustment asistance recipient', whatever that means.

??

[truedelphi]

43. Or you have to have received a lump sum payout of

A pension and been able to receive the monthly or quarterly pension payouts except for having retired the pension funds. I didn'tmake that clear.

[Lydia Leftcoast]

42. If you live in a place with good public transportation

(and there are some in the U.S., believe it or not), do a little math. Figure out the monthly cost of running your car (loan payments, insurance, gas, repairs, parking, if charged for) and compare it with the cost of taking public transit for longer trips and biking for the rest.

Even running a paid-for beater like I have costs $3000 (closer to $6000 if it weren't paid for) a year, and if I didn't have to run errands for my elderly mother and stepfather, I'd get rid of it in a heartbeat. It would require some readjustment, but I could manage.

It may not be possible in your case because you live in some exurb with nothing but houses and freeways and malls around, but if you live in an urban area, you may be able to cope.

If you are living on the edge, you have good public transit, and the car is cutting into your grocery and utility money, dump the car.