The unemployment rate is higher than it has been in almost ten years. Since 2001, Massachusetts has lost more than 160,000 jobs. As the downsizing continues how will the layoffs effect married couples? Caterina Bandini talks with financial expert Suze Orman about what to do "When Your Spouse Gets Laid Off".
Married or single, unemployment is taking its toll and in today's economy when you lose your job, it's taking 25 percent longer to find another one.
Larry Flaccus, Communications Strategist
"It's hard to be laid off."
Larry Flaccus of Lexington, has been out of work for eleven months. It's the first time Larry and his wife Susan have dealt with unemployment.
Larry Flaccus
"When the key breadwinner is laid off, it changes the relationship."
A factor helping their relationship is Larry's support group.
Larry Flaccus
"In this market you have to make your own opportunities and that's what we've done with We Want Work Boston."
We Want Work Boston is a website where unemployed professionals can network. It's also a place they can post their resumes until they land a job.
If you or your partner is laid off, there are so many things to consider, but before the job search even begins, a mutual goal should be top priority.
Suze Orman, Financial Expert
"You need to join forces, first emotionally, and then look at what you can do financially speaking."
Fluent in finances and how they impact relationships is best-selling author Suze Orman. She has this advice for couples facing a budget bind.
Suze Orman
"Let's say you do have credit cards and you also have a home equity line of credit that you can take money from, question is, should you take it from the credit card or the home equity line of credit, to get by?"
If you guessed home equity... You're wrong. Orman says, borrow from your credit cards.
Suze Orman
"A home equity line of credit... If you cannot pay it back, they will foreclose on you. So you might first want to access your credit cards. When you do get a job, pay them back with a home equity line of credit."
Until then, cut costs to fit your new financial framework. Couples, who need to access quick cash, can also turn to their Roth IRA.
Suze Orman
"You can take any money that you originally contributed to your Roth out at any age without taxes or penalties."
You cannot withdraw the earnings on that money, but you can take out your original contribution. If you don't have an IRA, are you out of luck? Not necessarily...
Suze Orman
"Start living within a one salary budget rather than a two salary income budget, and you can make it work."
Another way to make it work, support your spouse and not just financially.
For more information:
Information about We Want Work Boston, log onto their website at www.wewantwork-boston.com
For financial advice, visit Suze Orman's website at www.suzeorman.com
For information about handling your finances in between jobs, log onto the AARP website at: www.aarp.org/confacts/lifeanswers/betweenjobs.html
