Hi all, I found out today that my federal research grant (molecular biology) was not funded for renewal and that my income will end this September. I suppose that federal basic research is a casualty of the Sept. 11th attacks and the resulting financial strain on the federal government. :-( I will begin the process of looking for a new position soon. As I am looking, I desperately want to protect the credit I have so painstakingly rebuilt over the past two years. In the event that I do not have a new position by September, I will need to go into ultra-frugal mode and want to have my balances protected under some kind of credit insurance. I have been vigorously paying down a CC balance, which is now at $5300 and at 0% interest through November. It should be paid in full by January 2003. Because the balance is on my Citi card and Citi does not provide credit protection insurance for my state, I will need to move my balance to one of my other cards. Thanks to CreditNet , my total available credit is $57,000 now, so I have many CC to move my debt to who do offer some type of credit insurance for my state. NOTE to newbies: This is one reason why I believe that one should have as many reputable, high limit cards as possible. A nice e-fund and obviously no revolving debt would be beneficial, too... Anyway, I needed to know the different types of credit insurance (suspended payment v. minimum payment v. pay-off) out there, and whether there are any waiting periods for enrollment before the protection goes into effect (I only enrolled one card in credit protection, since I had heard that credit protection was generally a rip-off). Also - if people have any experience with the cards listed below on whose protection is better, please comment. None of them are enrolled with the exception of Capital One: AmEx Blue AmEx Hilton (Optima) Bank of America Capital 1 - currently enrolled in credit protection/pays the minimum dues Chase Citibank - not available for my state Citibank USA Generations Bank MBNA Thanks in advance,
I don't know how to help you out here, but I wanted to say that I'm sorry to hear about it. Pretty tough news especially with the economy the way it is.
Be optimistic, the economy will get better. I am losing my contract in September also. Use whatever money you are going to spend in insurance to lower your balances. Start looking for a job or a business idea now, don't wait. www.creditsense.com
Hello Marci, I am sorry to hear that you got layoff today... the business all over are slow right now our company just recently did a major layoff... some people are getting the salary cuts I know how it feels nothing is really secure right now so just calm down and something will come up for you... Good Luck to you in finding something even better... Thx, Kev
Erica and Kevin, Thank you for your well wishes. I think things will work out okay fairly soon. Biotech (industry) is still very strong, but this will require a relocation on my part more than likely. I'd prefer to remain in academia. I found out this afternoon and I already have two possibilities that opened up. Sam, thanks for the advice. I know that credit protection is a last alternative - but based on where I have been credit wise and based on my training as a scientist (which compels me to plan for the best, the worst, and everything in between) - I will do anything legal now NOT to screw up my credit. I'm just asking for people who are familiar with credit protection to comment on the pro's, cons, and process. By September, I plan to have the balance at or below $2000. And I will have an e-fund or unemployment (if it comes to that) to continue paying the minimum. You do make a good point re the cost of credit protection v. the benefit. Thanks all. Any others with comments?
Marci, I'm so sorry to hear this The economy is still really bad regardless of what anyone says. You know...have you thought of trying to get on with Gennentech? I don't know if I spelled that right, but I know they are really, really hot right now stock wise and have an exceedingly promising new drug. (Okay...I feel like an idiot...that *is* what molecular biologists do isn't it...lol? If not, please disregard this post and my red face...lol). L
whyspers, Yes, Genentech is a nice biotech to work for. They are in San Francisco and yes, they market drugs, and novel gene based therapies. Thanks for your well wishes.
Marci - put this in perspective. Teams change, organizations change - now it's your turn. The first thing I "read here" is how depressed/shocked you feel right now - but that's day one or week one. Then, after you vacation, etc -do the simple thing now and put up a Monster resume. You will get calls. You already have 2 opportunities and my bud downstairs has biotech connections - he has changed jobs twice in 2 yrs - brilliant guy too! SO - you kind of did two things at once - 1 - got the news and reacted, 2 - started networking and look at new possibilities you have and its thge first day or hour! Dogman says large companies are now getting headcount dollars so it was good you found out now instead of a year earlier. Hey M, look at what you did in 2 years on fighted the credit bureaus! Snap me if you want - SMILING YOUR WAY FROM CALIFORNIA best - and yes this too will pass - dogman
i don't know anything about credit insurance but i wish you a lot of luck as you search for new opportunities. when one door closes, another one opens. I know it is not easy, but You seem to be on the right track!
Why don't you take the money that you were going to pay off the $5300 by 2003 and do this: Buy money orders to represent the minimum payment due on each and every one of your charge cards. Try to buy enough to have at least a couple of months worth of payments(I actually had 6 months). Keep buying them while you are working and save them until you actually need them. When your contract expires, if you haven't found employment, at least you have those money orders for the cc's and it can carry you for a while. This may sound silly, but it works. There was a time that I had to do the very same thing and it really helped to know that I had those money orders available for the bills. It also will protect the credit that you've worked so hard to obtain. Once again, I know it sounds silly as I hate the money order thing. I write checks for everything. But this little bit of advice came from someone who I just knew had there S*** together and it shocked the hell out of me. This person has a $400k house, the most gorgeous furniture you could ever see, and they drive a Lexus. I was told by her, that they continue to buy those damn money orders way ahead of time and that at any given point, they have 6 months worth of money orders to pay bills. It seems to me that if she could do that then she could certainly keep that money in an account and draw some interest off of it, but she says that's her system and it has been working for her for years. Anyway that's my 2 cents. Hope it helps.
I haven't commented around here very much, but I hope I have enough crediblity to convince you to buy the e-Myth by Micheal Gerber. Starting a business isn't what most people think it is, and having a "scientific" mind is a help, not a hinderence in doing it right. Planning for every contingency is the key... I should know I have owned and do own several successful small businesses, and I emphasize the "anal" in analytical. Please, it's an easy read, and it might just convince you to step out into the world of the entrepreneur. I never regretted trading an 8-5 for a 6-8 maybe 9 or 10. It gets much easier (and shorter hours.... say 6 to 6 <grin>) as time goes on, and I can honestly say I have a lot more time that is my own that when I worked for someone else. CBJ
marci, I'm sorry to hear about your job loss. I like the idea about the money orders. It makes sense. The good thing to look at is that you have 4 months to find a new job. If after a few months of not finding anything in your field you would still be able to find a job of some sort. 120 days is a long time if you take it one day at a time. You'll get the job you want. Charlie
Marci, I won't be of much help to you, but I wanted you to know that I truly feel for you. About 10 years ago, I knew I was going to not have a contract renewed and of course it scared me to death. But, my advice is, don't wait until September to start being "super frugal". DO IT NOW. If you have another job by then, then you'll have that much more of a cushion of disposable income. But take a good look at your budget and be ruthless about what to cut out. You're have to switch gears into survival mode now. Guerrila warfare tactics apply. Stopping my the Starbucks on the way to work? Stop it. Picking up a magazine and some "impulse buys" at the grocer checkout? Quit that now. Dropping off your dry cleaning every week. Cut back now. You get the point. You'll be amazed at how much fat there is in your daily spending that yesterday you thought you couldn't do without having. I bought the book "The Tightwad Gazette" and stockpiled canned goods and dry goods; switched from whole milk to skim milk, hoarded coupons and only shopped in bulk on double/triple coupon day. Cut my own hair, and dropped that expensive salon for awhile, also did my own manicures and pedicures instead of going to the nail salon (this was actually therapeutic for me as I did it as a treat for myself when job-hunting got me down). Laundered and pressed my clothes instead of sending them to the cleaners; found cheap and free entertainment. (I volunteered as an usher at one of the local playhouses (free concession goodies and first-run plays). Paid the utility, gas and water bill months in advance (you'll get a credit, won't have to worry about coming up with the money for that while you job-hunt and those bills will be paid for months). Garage sales became my haunts (I still have the perfectly good $5 toaster oven from the local Lutheran school neighobrhood sale from a decade ago). Many grocers have a section of "half price, buy it now" stuff that the FDA says they have to throw out soon. Believe me, I learned and my kids and I ate steaks that were cheaper than the macaroni and cheese I'd been buying. Just be prepared to eat it that night or the next. Stop all delivery services, cut back from premium cable/satellite with HBO to Basic. Run the dishwasher once a week and the the washer/dryer, too. Take turns doing pot luck dinners with your friends. I contests on who could spend the least amount of money for a delicious meal for 6 or so. Even my well-to-do friends got extremely competitive, and I ending up having to cook maybe once a week. Plus, the company boosted my spirits and I didn't have to hide my frugalness from my friends. It worked. And I ws a single Mom of two with a car note. I believe in you girl. You can do it!!!
OMG, Hope...lol. I have all three of the Tightwad Gazettes...lol. I go in spurts though unfortunately. I'm not a tightwad all the time. L
I know what you mean. My soon-to-be hubby stills fusses at me for re-using aluminum foil and plastic baggies! But hey, that's how i came to own a big house in north Dallas! I made my son't Pirate Halloween costume and his "steel blade" was cut out from an old cardboard box shaped like a blade and covered in shiny aluminum foil. He's 17 and still has it and the rest of the uniform. Their jeans were fraying at the knees. I did a pre-emptive strike by getting some colored craft glue from the local hobby store and cutting out shapes of baseballs, soccer balls, tennis balls...and decorating them with the glue. They were hits at school and neither they, nor their friends ever suspected that those cool ornaments were covering holes in the knees!
Marci, Good luck to you on your new job search! I feel your pain (I was laid off in Oct. 2001 and am still looking). I can't add much to the great advice others have given, but I will say this -- it's not as bad as I thought it would be. After getting over the initial shock, I found myself being more resourceful, more frugal, but still living my life! Food is on the table, bills are paid, family is happy, etc. Good luck to you -- I'll be praying for you as well!
Hope, How do you get by on running the dishwasher only once a week? I guess it depends on the family size perhaps. Good Advice! I am trying to cut back just to have more savings currently!!
Thanks to all for your emotional support! I needed that, and I am grateful for each of you. Dogman - you get big hugs! Yes, this too will pass and I am trusting the Lord to meet all my needs (Psalm 37:25). Hope - That was an excellent post. I am a fan of the Motley Fool and so your post falls on eager ears. I'm printing it out and hanging it up by my living room door. Nothing like an acute crisis to slap sense into your head. :-/... Caseybjone - that's interesting and I will have to think that through re the money orders. I thoought they were only good for 90 days max. I hate only paying the minimum on the Citi card right now. Citi is sooooo minimum sensitive and I don't want them to jack my rate because "payments weren't high enough". I also want to take advantage of the 0% as much as I can. But I just need to think through my payment plans a bit more. The absolute worst case scenario is that with no job in my field: I have a significant retirement fund that will pay off any remaining CC balance, and my car. My student loans can go into hardship deferment. And there's always work at the post office, right? Wow. A really close friend is jobless and nearly homeless; at least I can relate a bit to what he's feeling. Thanks again everyone. I'm assuming since no one replied re the credit protection insurance, that it shouldn't be an option for me...
Hey radiohead, Nowadays, I have casual and formal placesettings of 12. And the old days of learning to run the dishwasher once is the reason. So, it takes me about a week to run through my "stock" of daily wear. Then I run the dishwasher. Cheap on the water bill, too. Well, like I said, I had 2 boys. Let's see they were about 7 and 13 then. I bought a stack of 1,000 or so paper plates from a church garage sale (You could probably do the same thing at Sam's Club, or Costco nowadays, but that wasn't an option for me then. The cost was something ridiculous like $2.00. So we'd make good use of those and do things like pretend to picnic in the Living Room. They loved it! I still keep a handy supply on hand (got a stack in the pantry right now). It helps bunches sometimes. (Think (Spring Break when you don't want to come home to a sink full of dirty dishes. I've never had to fuss at the boys about tidying up the kitchen so long as they had paper plates around. ) They also giggled at "Breakfast for Dinner" nights. That's when we had scrambled eggs, bacon, toast, jam and potatoes or something for dinner. Mostly leftover stuff that I'd frozen during the week. Little did they know, it's was so much easier for me to whip that up. And cheap, too.
