Bills.com Shares Five Financial Strategies for Americans Facing Expiring Unemployment and COBRA Benefits

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-- Decisions made in critical weeks following loss of benefits could make a big difference for many families --

San Mateo, Calif. – June 22, 2010–

 

Just two weeks away from the nation’s next unemployment report and with15 million individuals currently unemployed as of May 2010

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,Congress has yet to pass extensions of key unemployment benefits for manyAmericans. To help plan for the potential loss of these benefits and to assistfamilies on tightening budgets make the most of reduced incomes, consumer moneyresource Bills.com today shared timely financial tips for the unemployed orunderemployed.

 

While legislators continue to consider anextension of unemployment wages, the government subsidy for COBRA has alreadyexpired for those laid off on or after June 1, 2010. This means that in additionto lost wages, many unemployed Americans could be forced to pay the full costof COBRA insurance in order to extend their current medical benefits. Accordingto health-care advocacy group Families USA, this will raise the average monthlyCOBRA premium from $387 with the subsidy to $1,107 without it.

“It’s a tragic reality that manyunemployed Americans are facing the sudden loss of these benefits even asemployment prospects remain dim,” said Ethan Ewing, president of Bills.com.“Families need to make quick and difficult decisions in the first few weeks ofunemployment to effectively conserve their resources. Bills.com has compiledthis list to help families make the most informed decisions possible duringthis transition.”

Newly unemployed workers shouldimmediately contact their state’s unemployment office to file the relevantpaperwork and make themselves eligible for benefits. Most offices can be foundthrough a simple Web search.

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

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Re-Budget

: Your firststep should be to revise the family budget in line with your new economicreality. Assess your cash reserves, prioritize your monthly bills, and thenallocate enough money each month to cover critical expenses such as groceries,rent, and utilities. Avoid paying down extra debt or luxury spending toconserve cash.

 

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Communicate

: Open uplines of communication with your creditors and providers so they understandyour situation and can work with you whenever possible. Many credit cardcompanies and utilities will offer temporary assistance to low income orunemployed individuals to help them meet their monthly obligations.

 

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Plan ahead

: A littleplanning can net big savings over time. If you’re job-hunting, map your dailyroute to minimize gas or public transportation expenses. Set a weeklydine-at-home menu to reduce the temptation to eat out. Eat a good breakfast toavoid snacking, and bring a brown bag lunch if you’ll be out job-hunting allday.

 

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Cut expenses

: Help keepyour new budget by identifying areas where you can reduce costs. Considerlifestyle changes such as quit smoking, shop at warehouse stores, purchasegeneric prescriptions, clip coupons, entertain the family at home, sell olditems on eBay, and consider bartering for services as ways to limit overheadand extend your budget. For extreme circumstances, consider living with arelative while searching for employment.

 

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Insurance alternatives

: If youfind yourself unable to meet the monthly premiums for COBRA benefits, considerlooking at the private market. There is insurance available for most peoplewith some concessions in terms of flexibility or coverage. Additionally, thoseon an extreme budget can turn to public or community health clinics forservices usually offered on a sliding scale. Some states also offer publichealth insurance and medical programs for low-income families with children.

 

Individuals with specific questions aboutunemployment benefits or how to best stretch their budget, can use the Bills.comAsk Billservice to receive free,personalized answers to their questions. This service can be found athttp://www.bills.com/askbill/.

 

About Bills.com

Bills.comis the leading resource for free and personalized money help. Founded by agroup of financial experts committed to helping consumers save time, money andstress, Bills.com is designed to give consumers confidence in making moneydecisions. The site offers useful information, powerful tools, and real moneyexperts to give consumers the information they need in the way they want it.

 

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