Joblessness Puts Frugality In Perspective

In April of this year my husband’s position was eliminated when his employer downsized. Luckily Alan was unemployed for only one month before accepting a new job. Even though the new job meant a large cut in pay, we were willing to exchange less income for job security and a super retirement program. If you, or someone you know, will be facing a job loss, perhaps our experience and solutions will be helpful.

When Alan lost his job, the first step he took was to apply for unemployment. He qualified for the largest amount - $300 per week. The checks didn’t begin arriving for three weeks, which is normal.

To our mortgage company, the utility company and Chrysler Credit (for car payments), I explained our situation and asked if there were any reduced payment arrangements we could make so that we could remain in good standing. Each company was willing to work with us since our accounts reflected a good payment record.

The mortgage company: sent paperwork to be completed. We submitted a financial statement and a letter explaining our hardship.

Most mortgage companies would rather help you through a temporary tight financial situation than have to go through the repossession process. We were told that they would lower our payments based on our ability to pay. We paid half the usual payment for two months, regular payments for three months and an additional 25 percent for the following four months.

The utility company: worked out arrangements for us to pay about 50 percent of our bill each month. We eventually had to pay the full amount, but it was a relief to have a reduced bill without the threat of having our service cut off.

Chrysler Credit: did not have the flexibility to lower our payments but were understanding and willing to let us skip a payment for the month of May. We paid a $25 loan extension fee. However, when June rolled around, we had to make a full payment. The skipped payment for May was moved to the end of the loan, meaning we will pay the car off one month later than originally planned.

My best friend told me that we might be able to qualify for reduced cost lunches for my son who attends the public high school. The lunchroom director was extremely helpful in mailing the simple form I needed to complete, and she made sure I understood that our participation in this program was totally confidential.

Instead of paying $2 for each meal at school, Jon received his lunches free until our income increased.

With the loss of a company car, we are now down to one vehicle. Both Jon, 16, and Erin, 18, have part-time jobs, and we put quite a few extra miles on the car each week taking them to work and other activities. We asked each of them if they would be willing to help pay for gasoline. They not only helped with that expense, but have voluntarily paid for other expenses we would normally cover.

We cut all spending totally out except for bare necessities. We usually spend $75 a week for groceries, but we cut that in half. We were glad we had bought extra food on sale in the past, because it meant our pantry was fully stocked. We’ve eaten lots of pasta, homemade soups, potatoes, rice, breads, beans, oatmeal and grits.

Unemployment seems to be a common occurrence these days, therefore, I am hopeful that sharing our experiences and how we met the financial challenges will assist others going through similar challenges. Creative penny pinching techniques and the support of friends and family make it easier to endure the hardships of unemployment.

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