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Step 1 Preparea CompleteHousehold Budget

Getting control of your personalfinances is important to surviveunemployment. Use a house-hold budget worksheet to seewhere you spend your moneyand where you can save. Dothis as a family project.

Your budgeted expensesshould include:

I Fixed expenses (mortgage,rent, taxes, insurance,loans, installment payments,credit card payments,child support and otherfixed monthly payments)

I Variable monthly expenses(food, gas, repairs, dues,prescriptions, recreation,utilities and child care)

I Future expenses (income/property tax and other

outstanding debts)

Your budgeted incomeshould include:

I IncomeI SavingsI Severance payI Union strike assistanceI Unemployment compensationI Accrued vacation payI Refund from pension funds

Step 2 List Assets

Other assets may include:

I Cash value of insurancepolicies

I Prepaid burial or funeralpolicies

I Equity in your home (thedifference between the valueof your home and the amountyou owe on your home)

I Resale value of vehicles,boat, RV, etc.

Step 3 Set Prioritiesfor Your Expenses

List payments in order of

importance. This will help youpay first things first when moneyis short.

The most important will beyour mortgage or rent payment,followed by utilities, healthinsurance and car payments.Child support or alimonypayments (if any) are also ahigh priority.

Step 4 Make aComplete Listof Creditors

List the following information foreach creditor:

I Name, address and phonenumber of the contact person

I Account number

I Total amount owed

I Payment schedule andamount

I Interest rates

Step 5 Notify YourCreditors BeforeYou Get Behind

Determine how much you canpay regularly on each bill. Ifyou need to negotiate a lowermonthly payment than yourcreditors expect, notify thembefore you get behind.

Creditors are usually easierto work with when you let themknow about your situation before

a severe problem arises.Contact creditors in writing:

I Tell them you need to workout a plan for delaying,reducing or refinancing pay-ments until you return to work

I Always include your accountnumber, phone number andaddress in all correspon-dence

I Keep copies of your lettersand follow up by phone

Step 6 PayWhat You Can

Even if you cant pay the amountcreditors want, pay somethingregularly.

Taking Charge of Personal Finances

Financial Action Plan

1 Prepare a Complete HouseholdBudget

2 List Assets3 Set Priorities4 Make a List of Creditors5 Notify Your Creditors6 Pay What You Can7 Stay in Touch with Creditors8 Stop Credit Purchases9 Reduce Household Expenses

10 Sell What You Dont Need11 Check into Other Financial

Resources

This keeps your overduebalance as low as possibleand lets creditors know youare making a good faith effort.Partial payment may keep youraccount from being turned overto a collection agency.

Step 7 Stay in Touchwith Creditors

After your first letter, keepin regular contact with yourcreditors. This reassures them,shows a responsible attitudeand may keep them fromharassing you.

Step 8 StopCredit Purchases

Stop using all your credit cards.Interest on most credit purchasesis extremely high. If you haveadvance warning that youll beout of work, try to make largerpayments to reduce the balanceyou owe.

Step 9 Reduce

Household ExpensesWith your family, plan reduc-tions in household expensesto stay within your budget.

To cut your food costs:

I Plan less expensive mealmenususe leftovers andprepare snacks from scratch

I Adjust your buying habitsonly shop when you need to,make a list and compareprices and brands

I Use coupons

I Consider other shoppingoptionsfood co-operatives,farmers markets or going toa farm and picking your own

To cut your telephonebills:

I Switch to a money-savingrate plan

I Eliminate unnecessary calls(measured service chargesfor calls by length and timeof day)

I Make fewer long-distancecalls (take advantage of

lower evening and weekendrates)

I Cancel electronic phonefeatures like call waiting

I Discontinue cell phones,e-mail services and pagers

To cut your energy and fuelcosts:

I Turn off lights, TV andappliances when not in use

I Cut back on the use ofpower hogs like hair dryers

I Lower the thermostat on yourhot water heater and furnace,or turn up your air conditioner,and dress accordingly

I Wash and dry only full loadsof clothes or dishes

I Eliminate unnecessarycar trips

I Consult your local ConsumerCredit Counseling Service

Step 10 Sell What

You Dont NeedConsider selling that extra vehi-cle or the boat and trailer yourarely use. Look at your posses-sions to see which items couldbe sold or traded without reallychanging the way you live.

Talk to your landlo

doing minor repairs,lawn or doing other ytenance in place of r

Step 11 ChecOther FinanciaResources

I Life InsuranceRpolicy or talk to yoance agent to seeyou can borrow agpolicy

I Pension FundsTunion representatemployer to see ware owed a refundpension fund contfrom other compa

I You may be able tagainst your 401(kTax Deferred Acco

IMPORTANT: DontIgnore Your Mail!Sometimes trouble comes becausefolks ignore government agencyinquiries or creditor requests forinformation. That only makes thingsworse. If you do not understandnotices or bills sent to you, call theperson who sent the bill.

Americas jobs happen. Ameri

result of bad popolicy choices tAmericas workmake a differen

A

TimothyGonzales,SalemStatesmanJournal

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The WorldDid Not End

We take pride in our skills. Ourwork provides for our families.Our jobs are a vital part of howwe feel about ourselves.

Thats why losing your job istraumaticwhether it meanstemporarily losing the entirefamily income or a part of it.

Unemployment is difficult andwill change the way you live. Butits not the end of the world.

By knowing where to turnand taking control of yoursituation, you can surviveunemployment and reduce theimpact of temporary jobless-ness on your family.

Talk to Your Family

Unemployment is tough onthe whole family. Your spouseand children feel helpless. Talkout your problems and plantogether. Explain your unem-ployment situation to them andinclude them in developingyour plans to deal with it.

It helps to give each memberof the family some positivesteps they can take to help. Bysharing the burden and pullingtogether, members of a familygrow closer together and drawstrength from one another. Aprofessional family counselormay be helpful.

Turn to YourUnion for Help

Your union can help you whentimes are hard.

Your union representativecan let you know what union,company or public benefits youmay be eligible for, and adviseyou on how to keep your healthinsurance after you are laid off.Call your AFL-CIO central laborcouncil for information on avail-able AFL-CIO communityservices.

Get the HelpYou NeedYouve Earned It

While you were working, youhelped to pay for public pro-grams through your taxes, andfor voluntary agency servicesthrough contributions to yourlocal United Way or othercommunity organizations.

So make your money workfor you when you need it. We allneed a little help at some timein our lives. Even companiesget subsidies and tax breaksfrom the government duringhard times. Dont be embar-rassed to ask for the help you

need. You paid for it. Youearned it.

Surviving Unemployment Getting The Help You Need

Your Best Resource is Your Union

Your union representative, AFL-CIO communityservices liaison, labor agency representative orUCAN activist has information on assistance pro-grams and services available in your community.They can explain the eligibility requirements,benefits, applications processes and other factsyou need to know. Call your AFL-CIO centrallabor council for information.

Online Resources for Help

I www.workingforamerica.org

I The People Who Helpwww.aflcio.org

I When the Paycheck Stops Manualwww.aflcio.org

I When the Paycheck Stops Brochure(English)www.aflcio.org

I When the Paycheck Stops Brochure(Spanish)www.aflcio.org

I National Employment Law Projectswebsite for unemployed workerswww.unemployedworkers.org

I Unemployment Compensationwww.ows.doleta.gov

I Trade Adjustment Assistance (TAA)www.doleta.gov/tradeact/2002act_index.cfm

I Americas Service Locater (to find the closestone-stop center)www.servicelocator.org

AFL-CIO

John J. Sweeney

President

Richard L. Trumka

Secretary-TreasurerLinda Chavez-Thompson

Executive Vice President

815 16th St., N.W.

Washington, D.C. 20006

202-637-5351

LindaKahlbaugh