Surviving on Unemployment Insurance

[preciousjeni]

Since I work with a lot of consumers whose sole income is unemployment insurance, I wonder every day how they're managing to survive. In New York, the maximum benefit is only $405 per week. That's only $21,000 gross per year!!! I know many of these people are completely stressed because they don't have savings.

How does one survive on UI when they're supposed to be out traveling to interviews and such? So, they have to spend money on transportation at the very least, plus housing, food, etc.

Is anyone on GC on unemployment or know anyone who is? How do they manage???

[tld221]

I lived on UI for about 3 months. Its hard, but there are loads of people who make it on less than 21k a year. Perhaps they are on some type of public assistance. Or getting some external financial help.

Or, living on credit cards, which is awful. I know I did that for a while in between jobs. I'm paying for it hardcore now. But you do what you have to. I'm fortunate that I just have to worry about me and my rent-no mortgage, car note, insurance, childcare, etc. Those are the people who need to worry.

[IlovemyAKA]

Originally Posted by tld221

Or, living on credit cards, which is awful. I know I did that for a while in between jobs. I'm paying for it hardcore now. But you do what you have to. I'm fortunate that I just have to worry about me and my rent-no mortgage, car note, insurance, childcare, etc. Those are the people who need to worry.

I know what you mean. I lived off credit cards while trying to find a job after graduation. I too am paying for it DEARLY now. I still have a car note & insurance too, but the note ends in about 4 months. I can't wait!!

Unfortunately, student loans will start again after I finish grad school next year.

[Benzgirl]

I was laid off December 2 and my severance pay ran out last week. I have a one-week waiting period, then I get a whopping $365 per week. Considering my mortgage is around $1800, I can't live off unemployment.

Your question is valid, MOST people can't live off UI unless they have a working spouse. The $365 per week will pay my utilities, car lease and COBRA. Food is no longer a necessity, I guess. I was fortunate that I foresaw troubled times ahead and stashed away a lot of money (left it in cash). I also had no balance on my credit cards. Not including the UI, I have over one year to live off of my savings.

If I dont have a job by summer, my only choice is to put the house up for sale. Another glitch is that my tenant is moving out of my condo (rental) by April 1. The rental is up for sale or for lease, but no action yet. If nothing happens, I'll probably do a short sale and hand the procedes back to the bank. So much for my 796 FICO.

I have done a lot of research on Free Training. I was in a 2007 Power Point Class yesterday, offered by a local Computer firm and will take a Dreamweaver class from them in 2 weeks. The local Community COllege is paying for my Paralegal Certification, as well as two additional legal classes. I have an appointment on Tuesday to talk to a Job Works Network to cover my books. I never knew that I could get so much by walking in with my Severance Papers.

I'm in the minority, though. One of my friends (whose spouse does work), said the family will be able to survive until May. Another friend, a single mother with 2 kids, is living on credit cards now. She can't file BK since she did so a few years ago. She has COBRA for herself and is getting federal assistance for the kids medical. She can also qualify for food stamps because she has no savings.

[preciousjeni]

Originally Posted by Benzgirl

I have an appointment on Tuesday to talk to a Job Works Network to cover my books. I never knew that I could get so much by walking in with my Severance Papers.

Is Job Works a federal one-stop employment and training center? If so, that's the exact type of place I work. People on UI can come in and we're basically pushing them into training programs. If you're in training, your UI is extended for a period of time, plus the government has that emergency UI extension for (I believe) seven weeks. We're completely overwhelmed by people who've been laid off.

My very unfortunate task is to convince employers to hire my consumers. When very few legitimate employers are still hiring, it's nearly impossible to be effective.

Every day, people come into our office in tears. It is horrible and there's not much we can do.

[Benzgirl]

Originally Posted by preciousjeni

Is Job Works a federal one-stop employment and training center? If so, that's the exact type of place I work. People on UI can come in and we're basically pushing them into training programs. If you're in training, your UI is extended for a period of time, plus the government has that emergency UI extension for (I believe) seven weeks. We're completely overwhelmed by people who've been laid off.

My very unfortunate task is to convince employers to hire my consumers. When very few legitimate employers are still hiring, it's nearly impossible to be effective.

Every day, people come into our office in tears. It is horrible and there's not much we can do.

It's actually run by the county and is called the Employment netWORK. Most of the services available for the unemployed is not what I can use (i.e. Interviewing Skills, Computer Basics), but they do qualify the unemployed for ITA money. I got the third degree when I was on the phone with the director that I needed to go to their "boot camp" before getting the money. I told him I would get "an excuse" from my Outplacement Coach, if he would like.

Right now, when I interview I am up against candidates who also have Master's Degrees and PhDs. The new face of the unemployed are not blue collar workers; they are educated professionals. So many people I have spoken with are competing against their former co-workers for the same positions. Two of the positions I interviewed for were given to internal candidates, one position was put "on hold", and two others were not what I thought they were. I'm trying to network my way into a Temp position underwriting loans (something I did years ago), just to get me through the next few months.

I'm reinventing myself, which is why I'm going after the Paralegal Cert. I've worked in banking/mortgage for 17 years and know enough about the regulations and statues of credit. I am positioning myself to become a foreclosure or bankruptcy paralegal. Heavens knows, there is plenty of that going on. Sure it's a huge paycut, but honestly, I don't care at this point about the money. I have worked full time for 25 years and I'm going stir crazy.

When I went to a seminar a few weeks ago, they said that Unemployment apps in the county were up 300% from one year ago. It's really bad, and not just here. I just talked to a friend in LA. They are cutting everyone's hours at his company to 4 days and reducing their pay by 20% in order to avoid layoffs. One of my friends last week had to layoff 3 of her 10 employees.

Trust me. The tears flow often, and sometimes for the dumbest things. I'm not losing my house today or next month, but it could happen next year if things don't improve.

[justabeachbrat]

Off topic, slightly.
Not on unemployment, but disability.
When I got hurt, my income imploded by 2/3rds overnight--my bills did not. At the place I went for physical therapy, I knew of two patients who went into foreclosure and another who divorced.
I radically changed my lifestyle, Starbucks, before a daily thing, now a treat.
I could no longer afford my place near the beach, have had to move twice to get within limits. Some of my friends still in safe worlds have stepped away, as if I might spread something. The true ones remain.
I started back to school late last year, then had to drop out due to family matters. I am due to start in a week or so, and boy, what a time to attempt a career change.

[preciousjeni]

Originally Posted by Benzgirl

It's actually run by the county and is called the Employment netWORK. Most of the services available for the unemployed is not what I can use (i.e. Interviewing Skills, Computer Basics), but they do qualify the unemployed for ITA money. I got the third degree when I was on the phone with the director that I needed to go to their "boot camp" before getting the money. I told him I would get "an excuse" from my Outplacement Coach, if he would like.

Right now, when I interview I am up against candidates who also have Master's Degrees and PhDs. The new face of the unemployed are not blue collar workers; they are educated professionals. So many people I have spoken with are competing against their former co-workers for the same positions. Two of the positions I interviewed for were given to internal candidates, one position was put "on hold", and two others were not what I thought they were. I'm trying to network my way into a Temp position underwriting loans (something I did years ago), just to get me through the next few months.

I'm reinventing myself, which is why I'm going after the Paralegal Cert. I've worked in banking/mortgage for 17 years and know enough about the regulations and statues of credit. I am positioning myself to become a foreclosure or bankruptcy paralegal. Heavens knows, there is plenty of that going on. Sure it's a huge paycut, but honestly, I don't care at this point about the money. I have worked full time for 25 years and I'm going stir crazy.

When I went to a seminar a few weeks ago, they said that Unemployment apps in the county were up 300% from one year ago. It's really bad, and not just here. I just talked to a friend in LA. They are cutting everyone's hours at his company to 4 days and reducing their pay by 20% in order to avoid layoffs. One of my friends last week had to layoff 3 of her 10 employees.

Trust me. The tears flow often, and sometimes for the dumbest things. I'm not losing my house today or next month, but it could happen next year if things don't improve.

What you're talking about sounds like a one-stop. They're all funded through the Workforce Investment Act (WIA) and managed by any one of many operators (county, state, community colleges or non-profits - like the one I work for).

I hope our economy bottoms out sooner than later. Of course, that means more people out of work for the short-term. But, it also means an upswing is just around the bend...perhaps even before a lot of people's UI runs out!

[Benzgirl]

Originally Posted by preciousjeni

What you're talking about sounds like a one-stop. They're all funded through the Workforce Investment Act (WIA) and managed by any one of many operators (county, state, community colleges or non-profits - like the one I work for).

Not exactly one-stop (maybe 3 or 4 stops), but he did mention WIA. They are covering tuition for three classes and we are trying to figure out the books now. netWORKS is willing to cover the cost, but because the books need to be purchased through an online site instead of the school bookstore, we are running into a snag. They won't reimburse me, so the admissions office is working with the bookstore to see if they can get in all of the books. I have no idea how they will pay for the WestLaw susbscription.

Just a sidenote. The place that I went was attached to the Welfare Office. Honestly, I was afraid that things were going to be stolen from my car. Most of the people in there were getting information on their GED. The counselor nearly dropped his pen when he asked my education and what I was making. He also asked if I went through the "job book" in the lobby. Yes, but I really don't plan to make a living as a landscaper.

[NinjaPoodle]

Originally Posted by Benzgirl

I was laid off December 2 and my severance pay ran out last week. I have a one-week waiting period, then I get a whopping $365 per week.

I was laid off Dec 31st and my severance ends at the end of this month. I'm not sure how much Calif. pays but I will find out soon enough.

[PeppyGPhiB]

I was laid off for seven months in 2002 - the last recession we had. I'm hoping it won't happen again (knock on wood!), but many of my former coworkers from other firms have been recently laid off and I fear our firm could be hit soon. I'm fortunate to live in a state with one of the highest weekly maximums ($540), and indeed the largest UI account in the country (so no worries about UI running out completely). But even back then it was difficult. I was only out of school for less than two years at that point. I had to move back home, which sucked, but at least it allowed me to pay my bills and even save some money. For those of you worried about student loans, you should look into forbearance; it allows you to put your payments on hold for a limited amount of time until you get back on your feet, and in these times I bet there's info on every student loan lender's site about it. I hated putting my loans off back in 2002, but it was a Godsend for me.

Something else I did: I didn't want to risk going without health insurance, so I bought individual health insurance instead of going with my company's COBRA. I was young, so it may not be as cheap for some of you, but I was able to get individual insurance, including good prescription coverage, through my state's biggest insurer for $99 a month. My COBRA would've cost me about $300, so I saved a lot of money by doing it that way.

Benzgirl's comments about the face of today's unemployed was just as true back in 2002 as it is today. I was furious with George Bush's cluelessness back then, and I was pissed when John McCain made similar remarks during his campaign about training programs, education, etc. Most of the programs in the local Work Source office have nothing to offer me, someone with a college degree and computer skills. We can't all be software engineers, and even if we did have those skills, there aren't enough of those jobs to go around...especially when the local companies are flooded with foreign workers here on visas, working for much less than their American colleagues. But that's a whole 'nother issue.

[Benzgirl]

^^^That's what they say, but the laws are changing so quickly now that it's hard to keep up with what will happen.

I got my first "check" today. They are now saying the first $2500 (something like that) will be tax free. That is less than 2 month's worth for me.

COBRA changes will be nice, although the administrators have no idea what to do with it. The 65% reduction for the first 9 months goes into effect for the March payment. March is the first month that I'm required to pay it. I had to pay the full amount today (ugh!), but am supposed to have the 65% either refunded or credited to future months. Knowing my TPA (Wells Fargo), it's going into the black hole.

Speaking of black hole, that is where my WIA money is now. There was a fire at the school where I'm to attend and my paperwork is on the desk of the Academic Advisor. She can't get back into the office until Thursday of this week.

PJ, you will love this tale of Government Red Tape.... Because the classes I'm taking are actually through a Legal company, that is where I need to purchase my books (about $500 worth). WIA is willing to cover the books, but only through the campus book store. We need to have the campus book store buy them from the company, then charge the government a premium to make their profit. Of course, approval on that is also caught up in the real fire that happened, and I have no idea if I will have books in time for my class that begins in 2 weeks.

Amazing!

[preciousjeni]

Originally Posted by Benzgirl

PJ, you will love this tale of Government Red Tape.... Because the classes I'm taking are actually through a Legal company, that is where I need to purchase my books (about $500 worth). WIA is willing to cover the books, but only through the campus book store. We need to have the campus book store buy them from the company, then charge the government a premium to make their profit. Of course, approval on that is also caught up in the real fire that happened, and I have no idea if I will have books in time for my class that begins in 2 weeks.

Amazing!

The genius of the Department of Labor hurts my brain.

[libramunoz]

I've been living on UI since May of 2008 when my job went bust-literally! The company I was working for was raided by the FBI and the IG because of the administrators/owners bilking of Medicaid/Medicare. Because of this, I never went back to work and the business closed about 2 months later.
I've learned, you just learn how to make it. I had some bills from an ex that I had to pay off. My Momma helped me when she could and after that, I just do what I can and make payment plans. I don't have any credit cards, but my student loans, they're after me now.
I am making payment plans with them, one for 25 a month and one for 250. I just do it. I cried the day the 250 student loan was bugging me, but I prayed and asked God and He told me that He has given me what I needed in order to see me through.
I don't have a mortgage, but I do have insurance, propane gas, lights, and H20. So I know that my Momma will help when she can, otherwise, I just make the payment plans, stick to them, and pay things off as I can.
During Christmas this year, I bought at Dollar General and Fred's and Family Dollar and the rest of the gifts, I made. I was able to get the material in Oct/Nov and made 4 dresses, and 4 sets of fleece sweats for my cousin and the children of a friend of mine. My figuring was If I cannot afford it, they won't get it.
Some people understand and are willing to work with you some aren't.
As far as health insurance, the company that I worked for never got any and since I don't have any children, I don't qualify for Medicaid. I try to stay as healthy as I can, but If I needed too, I'd go to the ER or a local doctor and make a payment plan or try to bring in the money that I needed. It does suck in the fact that I have HBP and arthritis and cannot afford my medications, but I use Alleve for the arthritis and just try to stay calm enough so that I don't raise my BP up too much.

[nikki1920]

If you need ongoing HBP meds, try going to the local health clinic. They may have programs that can help people with chronic conditions get medication. If your city has it, try calling 211 (or 311) and ask for medical prescription assistance.