Living a Better Life
(featured column... from the editor's desk)

Another Year of Unemployment and Foreclosures

by Michelle Jones

There is never really a "good" time to become unemployed, however, it's easy to conclude that 2010 may well be one of the worst times in our U.S. history to lose a job.  Many countries are struggling financially, wars now seem never ending, natural and non-natural disasters are happening all around the world (requiring record amounts of funding), and our own economy is still suffering miserably.  This may sound to some like the end of the world is close at hand,  but we are still here and we have to keep going.  And many of you are probably reading this now, thinking, "I still have my job, I'll be fine."  Just hang on to that job for as long as you can and meanwhile, prepare for the possibility that your situation could change at any time.  More...

Job security no longer exists.  Every job, company and industry is at risk.  Your company may cut hundreds or thousands of jobs for the sake of the bottom line, or even close down your location completely without much notice.  The better prepared you are for unemployment, the better chance you'll have at getting through it without complete financial loss.  Set aside every dollar you can into savings.  

I know most of us have been doing so much better over the last ten years, but it's still not enough.  If you can start your own business, do it now, on the side, part-time.  Don't wait until you have to, that could be too late.  Do something that does not require a lot of money up front; not a business that requires all of your savings.  We have met family after family who have lost everything that way, new businesses fail every day.  So keep your risk low.

My husband and I have dealt with unemployment before, many years ago, and more than once.  Even when the economy is going well, it's always one of the most difficult and stressful times a family can go through.  Having lost my mom in 2007 to Colon Cancer, I can at least tell you that death is much worse than unemployment.  As well as many other awful things in this world.  It's just something you go through, deal with whatever happens the best you can, and then, eventually, start over. 

Even still, losing your main source of income is bad stuff.  If we continue to eliminate jobs without replacing them with other comparable jobs to keep the American family strong, how will our economy ever be able to recover?  Every job lost has a negative impact throughout our communities and one leads to another and another.  But that's another article.

And so is what my own solution would be.  Instead of the billions of dollars in bailout money given to a few select companies, they could have given every household $100,000.00 to be used specifically for housing.  Whether to pay off an existing mortgage, lower payments, or buy a new home for families who do not currently own.  This could have prevented the record number of foreclosures and helped families better survive long extended periods of unemployment.  It could also have revived the housing market and many businesses in every community, as then all families could stay afloat and stay in their homes.  I know, this is my rosy sky vision, and the process would actually require more money than the exact amount they spent, but there it is.  It's my idea, I like it, and I'm sticking to it. 

And if it worked, every country could do a similar plan! 

I struggle each day to remind myself that things are going to get better.  And y'all know me well, I never give up hope.  Over the last few months we've been researching information and reports on our economy, the housing industry, mortgages, unemployment and COBRA insurance.  Let's just say I'm discouraged; there isn't much to be hopeful about.  A lot of changes are still needed if we're all going to get through this.  

The good news is, we CAN and DO survive these difficult times with the help of family, friends, our churches, neighbors, and many organizations that are there to help.  God is good and with His help, we somehow manage to take pretty good care of each other.  We are very blessed.

After 11 years of a very successful career as regional manager with a publishing company, my husband's job finally ended on June 1st of this year. The company shut down their main magazine last year and his job was supposed to end then, but they hired him to continue on at the last minute. He would have received 26 weeks of severance, and affordable COBRA insurance. But in 2010, things have gotten worse for the unemployed, not better. After starting his 'new' job as a regional distribution manager, the company decided to close down all of their distribution, tossing out another layer of wonderful employees with it. Over the last 2 years, the total is about 5,000 employees.  It's heartbreaking, sickening.  I don't know how the owners of these companies sleep at night... and maybe they don't.  Many of them are still making plenty of money and could keep their employees, apparently it just isn't enough.  

His last day of work was June 1st. He received 10 weeks of severance, instead of 26. The COBRA subsidy extension for the unemployed ended May 31st.  Which means anyone who loses their job after that date would have to pay full price (about $1,300.00 a month for full family coverage), to continue their health insurance.  For most families, that is not an option.  

What are we doing?  Deciding each month whether or not to pay our mortgage or elect COBRA before the offer runs out at the end July (you have 60 days from the time of unemployment to elect continued coverage).  We've also been canceling all our doctor appointments and discontinuing any prescription medicines we can't afford.  Why is medicine so outrageously expensive, it's ridiculous.  Thankfully, we probably don't need half of what the doctors prescribe.  Though I cannot confirm this, it's just an opinion and feeling I have always had.  Certainly, if you are on prescription medicine it is likely best to stay on it... you should never stop taking any of your medicines without consulting your doctor.  In other words, don't do what we're doing!  Also, many drug companies offer rebates or assistance for people who cannot afford their medicine.  

Another difficult issue we're facing is the lost value of our home.  We put a ton of cash down when we bought it 4 years ago.  My husband's company transferred us from NC to GA so we had to move.  It would be lovely if we could even get to our own money, but our county recently revised property tax assessments and not only have we lost all the cash we put down on our home, but we owe much more than it's current appraised value. Evidently, it is against the law for counties to not assess the most accurate current home values for tax purposes.  It's nice that they are going to charge less taxes, but it's hurting them as well as us.  With less tax revenue, they'll continue to cut back on teachers, transportation, and everything else.  Many more jobs will be lost.  So now we have this low appraisal and the bank has said there is nothing they can do for us... our money is gone and we are making full house payments on a house that it seems we'd be better off walking away from.  There are supposedly programs available to help, but with the homes going right into foreclosure, and ruining a lifetime of good credit, the whole thing is just insane.  I'd like to cry, but I think I'm still in the stage of shock.   

What are we doing? First of all, we're absolutely grateful that we've had a home and we're still here for now.  Whatever happens, we'll be okay.  Life is full of change.  I'm actually excited as we wait to see how things turn out.  As we continue to trust Him to guide us, anything is possible.  It will either be great, crazy, painful, or unbelievable--or a combination of all!    

The company did what little they could, believe me, we are also grateful for the 10 weeks severance.  Many people lose their jobs with nothing.  It's important to apply for unemployment as soon as you can, it only starts from the day you apply.  And the program is different in every state, including the amount they pay.  We are hoping and praying my husband will find another job before all of our savings runs out.  I did offer him a job working with me but unfortunately I cannot currently afford to pay him.  He turned that down.  He's applying for jobs everywhere.  Although we would love to stay in Atlanta, we could be moving to your state or country!  

We represent so many families, maybe even you or someone you know. The unemployed are really in a bad situation all around and I wonder what the government is going to do when we are all living on the street, no longer able to continue making payments on our upside down houses that crashed with the economy, and hopefully not, flooding the hospitals with no insurance.     

I am still quite certain death, and many things, are worse than unemployment.   Next month we'll share a wonderful article on Rachel Keller's eight month trip to the Philippines, reminding us how blessed we are to have anything.  Unquestionably, unemployment and homelessness in any country is bad, bad stuff.  My heart continues to go out to everyone who is coping with it.  I would love to hear your stories, please visit me at michellejonesonline.blogspot.com

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Copyright © 2010 by Michelle Jones. All rights reserved.

Author of...

Dealing with Debt, Frugal Family Recipes Cookbook, 

The Better Budgeting Class: A 5-Week Course, and 

101 Coupon Tips... To Help You Save More at the Store!

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