Whether you're downsized, laid off, or just plain fired, losing your job is a traumatic event. The following tips can help you stretch your budget and your benefits to cover family needs until you find another job.
Cut costs wherever possible. Try not to incur additional debt. Work with your credit union to gain access to an emergency line of credit, or to restructure current debts.
Ask if the company allows severance pay. It varies depending on years of service and type of job held. You may budget better with salary payments than with a lump sum payment.
Negotiate the severance package. If your spouse can purchase health coverage, consider dropping health benefits in exchange for additional severance pay.
Weigh COBRA benefits. The Consolidated Omnibus Budget Reconciliation Act, or COBRA, is a federal law that allows you to retain health care coverage at group rates for up to 18 months, but you must pay the full cost.
File for unemployment immediately.
Ask for outplacement services. They help you find potential new jobs, create a professional resume, register with employment agencies, and prepare for interviews.
Check on vacation and sick pay. Employers must pay any vacation time owed when the job is terminated.
Roll over retirement funds. Contact us and ask about investment services that assist you to roll these funds into tax-sheltered retirement accounts to avoid significant tax penalties.
Copyright 2008 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.
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