Waterloo-Cedar Falls Courier, Iowa, Jim Offner column

Jul 4, 2010 — Waterloo-Cedar Falls Courier

Jim Offner

Jul. 4, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- The dip in area unemployment last month brings a shred of hope to a recession-weary region, but for those workers who remain without work and find themselves staring at the prospect of seeing unemployment benefits run out, there are some important strategies for meeting the crisis.

And, for many, the crisis is long-term. A survey released Wednesday by Iowa Workforce Development and Iowa State University found that 76 percent of respondents were unemployed for over half a year.

The consumer money resource website Bills.com offers several strategies for jobless workers who are facing imminent loss of unemployment and government-subsidized COBRA benefits.

Newly unemployed workers should immediately contact Iowa Workforce Development to file the relevant paperwork and make themselves eligible for benefits. Claims can be filed through IWD's website, http://www.iowaworkforce.org/ui/file1.htm.

Those facing a sudden loss of benefits should begin to do the following:

--Budget: The first step should be to revise the family budget in line with new economic realities. Assess cash reserves, prioritize monthly bills and allocate enough money each month to cover critical expenses, such as groceries, rent, and utilities. Avoid paying down extra debt or luxury spending to conserve cash.

--Communicate: Inform creditors of the situation. Many credit card companies and utilities will offer temporary assistance to low-income or unemployed individuals to help them meet their monthly obligations.

--Plan: A little planning can net big savings over time. In daily job hunting, map the daily route to minimize gas or public transportation expenses. Don't eat out. Eat a good breakfast to avoid snacking, and bring a brown-bag lunch for an all-day job quest.

--Economize: Cut costs wherever possible. Consider lifestyle changes such as quitting smoking. Shop at warehouse stores, buy generic-label products, clip and use coupons, entertain the family at home. Try selling old items and bartering for services as ways to limit overhead and extending the budget. In some cases, it might be prudent to consider living with a relative while searching for employment.

--Insurance: If COBRA benefits are beyond reach, consider looking at the private market. There is insurance available for most people with some concessions in terms of flexibility or coverage. Additionally, people living under extremely crushing budget circumstances can turn to public or community health clinics for services usually offered on a sliding scale. Iowa offers public health insurance and medical programs for low-income families with children.

Bills.com has an "Ask Bill" service that offers free, personalized answers to questions. It's available at http://www.bills.com/askbill.

The loss of a job or the prospect of an extended search for another position comes with plenty of stress, as it is. It doesn't have to be a an utterly desperate situation. Resources like IWD and online sites can provide some much-needed guidance in navigating through often-terrifying times.

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