How do you decide what not to pay?

[melmichigan]

Just when we were finally getting a handle on our finances we are looking at a curve ball. My DH's company and the union have been in talks for two months and are not making progress on a new contract. On Tuesday the union members voted to approve a strike in a stance against the company in hope of a fair contract. Right now the company is preparing heavily to lockout the union workers as of tomorrow night. ( The living trailers are in place for those who will be locked in, along with refrigeration and food trailers.) If this happens there is no money coming in and no aid available.

 

How do you decide what not to pay with an unknown like this looming?

[Sue G in PA]

Yikes. First, I will be praying that everthing works out. If you have any credit cards bills...those are the first to ditch. Don't pay those. Can you skip a payment with your mortgage? Some companies allow you to do that. Try programs like Angel Food if you have a center near you. Cancel all subscriptions that you pay on a monthly basis, cancel cable, phone (if you can get by with just cell service), any "extras" that you can do without. Such a tough situation. My prayer is that the strike doesn't happen.

[VA6336]

If you have student loans, you can call them and they might be able to grant you a temporary forbearance based on your income (or lack thereof). If it gets desperate enough, my rule of thumb is not to pay the stuff that won't end up on our credit report. Missing a credit card payment will show, but not paying the phone bill usually won't. The trouble with not paying utilities and insurance bills is that there are usually reconnect fees later...start calling them and tell them what's happening. The worst that will happen is that they'll say there's nothing they can do and you just won't pay them anyway!

 

Here's hoping they get it worked out fast.

[Debora R]

Mortgage first, in full if you can. Set aside money for food second. Then utilities. cancel or hold what services you can, for the rest, Make token payments to everyone, else- even if it's only $10. That will may result in some fees, but may extend the time before a ding to your credit report.

Edited June 6, 2010 by Debora R

[2squared]

I would start hoarding cash and cancelling everything. Maybe some services can be put on hold?

 

I would put my grocery budget down to the bare minimum and buy those first. Then, I would pay for the mortgage and necessary utilities (no cable, internet, cell phone, etc).

 

I would save some money for gas so I could go find a part-time job ASAP.

[....]

I agree with trying to defer as many things as possible.

 

Dave Ramsey says that you should take care of your four walls: mortgage/rent (if you can't defer), food, electricity and running water.

 

Anything else you cannot pay, you need to call them and tell them what's going on.

[Ottakee]

This might be a time to see, at least short term, if you qualify for food stamps or other benefits. In a crisis, you need to do what you need to do.

 

I would also call the utilities, credit cards, mortgage, etc. and explain what is happening and your plan to pay them as you can. If the first person says they can't help you, there is nothing to do, then ask for a supervisor. Many places have programs for those in need.

 

If you are invovled in a church, contact them as they might have a special fund to help with food, mortgage, etc.

 

Can either you or your dh look for odd jobs, part time work, take in a day care child, etc. during this time?

 

Do you have anything you can sell (that won't cost more to replace later)---stuff you are keeping but really don't NEED or USE?

 

In our area we have Love, Inc. which is a parachurch organization which offers budget counseling, bill payment help, food pantry, etc. See if there is something like this in your area and take advantage of it.

 

Cancel/put on hold anything you can---magazines, extra cable/cell phone/internet services---maybe scale back your plans for now.

 

Cut back on driving and try to find free/very low cost family activities so that you can all feel OK while this happens.

 

If possible, have dh do some volunteer work (if he can't get odd jobs or a part time job). That will give him something positive to do and help maintain some order to your home (my dh is laid off now).

 

Try to use some of this time off to tackle big (but no cost) projects around the house---weeding, trimming, dejunking, cleaning the garage, etc.

[Jennifer in MI]

:grouphug::grouphug:

 

I don't have any better advice than what's been offered here. :grouphug::grouphug:

 

But, we have friends who work there too.

[chiguirre]

Does your union have a strike fund? Can you get a fast food or retail job on short notice and have your dh watch the kids? Are any of your kids old enough for a part-time job?

 

Good luck!

[Scuff]

I know who your DH works for. My DH too. We were both a bit shocked that so many voted to strike. (97%. In this economy? Seriously? what other job are you going to go to? How many people are lined up to take this one you're giving away?) You seem to know a bit more than we do, though. I didn't know they were making preparations like that. I guess that explains why DH didn't get called for storm. I was sure he'd be working today with all the tornatos last night. Who to pay? I guess we'll do the DR priority thing. Food, utilities (yeah) and morgage first. Everything else can wait. We don't have much of an emergency fund. We could probably do a month without pay before getting behind. Oh, one tip, I don't know if all cities do it this way, but in ours they will just tack your water bill onto your taxes if you don't pay it. So that's one thing you could get away with not paying for awhile. Sorry. Not much help. We're in the same boat. :(

[Scuff]

This might be a time to see, at least short term, if you qualify for food stamps or other benefits. In a crisis, you need to do what you need to do.

 

 

 

Does one qualify for assistance if one is on strike? I know you can get aid for being laid off, but this doesn't seem like the same thing. We definately don't qualify normally. I'm not above getting it when needed, though!

 

Michigan's a pretty depressed area right now. There aren't many places hiring, even for fast food jobs and babysitting. Not saying that it's impossible or not worth trying, just that it's not very probable.

Edited June 6, 2010 by Scuff

[Desert Rat]

These are the bills I would pay in order, mortgage/rent, food, water, electricity. Make arrangements for the rest. Look into food pantries in your area. (I do bookkeeping for one.) Find out what you need to show-sometimes they require proof of residence, ssns, etc. We have 18 pantries in our area, each with different rules, but if you use many of them, you'll not go hungry.

Hang in there. I hope they resolve without a strike.

[elfgivas]

i am so sorry...

 

there have been some great suggestions.

here are a couple more.

- take in a boarder or three. there may be some coworkers who live alone who would find it easier to contribute a bit to your household income than continue to pay rent where they are. (i have at times put all the kids in one room and rented out the rest)

- become sunlight people.... everyone goes to bed when the sun goes down. its amazing how that helps the power cost.

- move one car to being registered to not driven... it saves a ton in some states.

 

good luck!

ann

[StartingOver]

When in a position like this, I resort to living expenses. Shelter, food, electric, water, gas and vehicle.

 

All the rest is luxury, talk to them to try to put it off, close it down whatever is needed. You can work on cleaning it up later. Survival is the focus.

[melmichigan]

There are no food stamps or government aid, no unemployment and no strike pay. The strike vote was to try to get the company to bargain in good faith. Right now the company is looking at lockout, which is the same legally as far as assistance goes.

 

My DH is a mess. He works tonight. The non union day shift workers aren't allowed to go home today, "shadow" workers are coming in at 6pm, and the company will announce at 11:30 if everyone will be escorted off the properties.

 

I'll know later tonight if I need to start making phone calls. I keep telling my DH there isn't anything he can do and that's true, we are just along for the ride in this one. I hope the AFL-CIO knows what they are doing. It'll make headline news if they go through with this, on either side.

Edited June 6, 2010 by melmichigan

[angela in ohio]

We're also in Michigan, and we've been watching that situation. :grouphug: Dh's union (pubic school employees) just had to give concessions due to budget cuts. Yuck.

 

1.) Go to your church if you have one, and let them know the coming situation, so that they can be prepared to help you.

 

2.) Find out where in town free meals are offered. Use them and save the money to pay bills.

 

3.) Always pay your mortgage (unless you can get a deal to skip a payment with no harm,) insurance, and car loans. Utilities are more forgiving, and they won't hurt your credit, but you have to talk to them. Call them and let them know your situation, find out what you qualify for, get extended payment plans.

 

4.) Go into minimum mode for food. Eat the cheap stuff for a while if you have to. Unless you have family members with serious helth issues, you can survive it for a while. Clear out the pantry and freezer and use things up.

 

5.) I agree to start saving up cash. You can use this to feed yourselves if things get very bad.

 

Scuff and Mel, PM if things get bad. I don't remember where in MI you are, but we'll help if we can.

Edited June 6, 2010 by angela in ohio

[fivetails]

The non union day shift workers aren't allowed to go home today

 

Whoa - you said something in the first post about trailers/food/etc for people "locked in"...and now this "aren't allowed to go home" ... how in the blazes does THAT work? I mean, a company can't just KEEP its employees locked inside the workplace! :001_huh::001_huh::001_huh:

[dansamy]

Well, I don't know about other fields, but in hospital work, yes, you can be mandated. And yes, they can keep you locked inside the hospital. Attempting to leave would constitute patient abandonment and would result in, at a minimum, of the loss of your professional licensure. It could result in criminal prosecution and civil damages as well.

[melmichigan]

Whoa - you said something in the first post about trailers/food/etc for people "locked in"...and now this "aren't allowed to go home" ... how in the blazes does THAT work? I mean, a company can't just KEEP its employees locked inside the workplace! :001_huh::001_huh::001_huh:

 

Essentially they can, you either agree to be "locked" on the property or you are without a job. None of the non union workers want to be there indefinately but they don't wish to give up their jobs any more than the union workers. The last time the company did this was in the 80's and it lasted six weeks.

 

We just finished baby step 1 with DR, so please pray this doesn't happen.

[Jennifer in MI]

:grouphug::grouphug::grouphug:

 

 

Our neighbor/friend/baseball coach is on the other end of this. HIs wife is going crazy trying to make contingency plans for their kids if her dh isn't going to be home for a while. What a crazy situation!!

[Scuff]

Wow, 6 weeks. We're on step 3, so a little better, but we have very little in our emergency fund. And the dryer just died and we discovered carpenter ants and wood damage. So we have some things we needed to spend that money on, but they can wait if they have to. (And a few more things for next year's school I wanted :D but we'll survive without that too.) Thanks for the offer, Angela. Brought tears to my eyes seeing a complete stranger offer help like that.

 

DH said that they were told to report to work tomorrow morning and they'll find out then what's going on. So mel's DH is definately more in the know.

Edited June 6, 2010 by Scuff

[Ottakee]

I would still check with various aid agencies. It might be that you and the kids can qualify--meaning you will get food stamps for you and the kids but not dh. Private/church based charities might not have the "strike" clause in getting help.

 

I would be very proactive and start making phone calls tomorrow if this goes through. Your mortgage company might allow an interest only payment, utilities might put you on a budget plan (and if you have one already you might have a bit "banked" there already).

 

As gardening season winds up here, you might even see about helping someone with their garden for part fo the produce, checking farmers markets at the end of the day for less than perfect/reduced produce that won't keep until the next market day.

 

Don't hesitate to let your friends and family know of your needs. You might have some that are very willing to help you out if they know of your need. If your church as the benevolent fund, etc. let your deacon/elder know of your need and they should be able to help you out with some bills.

[melmichigan]

Thanks for the offer, Angela. Brought tears to my eyes seeing a complete stranger offer help like that.

 

 

:iagree:Thank you for the offer. Sometimes I get reading to fast and missed that completely. I am so praying this won't happen at all. There are 4,000 workers and then all those who are non union who are also effected.

 

 

:grouphug::grouphug::grouphug:

 

 

Our neighbor/friend/baseball coach is on the other end of this. HIs wife is going crazy trying to make contingency plans for their kids if her dh isn't going to be home for a while. What a crazy situation!!

 

It isn't any better for those who will be locked in that is for sure. They will be severly shorthanded and the "shadow" workers the company is talking about bringing in are office workers from elsewhere within the company, so I'm sure they don't want to be there either. It is a crazy situation for sure.

[TravelingChris]

Is the union insane? Can't the company just hire new workers? With this economy, striking seems completely nuts to me.

[Ravin]

Here's what I would do:

 

1. Cancel as much as you can of any cell phone service without breaking the contract.

2. Cancel as much as you can of cable/satellite w/o breaking the contract.

3. Call every creditor you have (credit cards, and especially student loans) and ask for deferment or forbearance.

4. Check with each utility and ask how late payments can be without shutoff. For us, we can fall behind a month on our city (water/sewage) with minimal penalty, and once a year the electric company will let us go a month, but you have to call first if you don't want shut-off warnings.

5. If you don't use an envelope system, now would be a good time to start. The envelopes can be filled in priority order from most critical to least important. In that crisis I'd probably have Food, Household Items (stuff like toiletries and cleaning stuff), and maybe a little for education expenses.

6. Any services you might have (yard, cleaning, whatever) cancel.

7. Pay rent/mortgage, most critical utilities first. As others have mentioned, avoid buying food--go to food banks, that's what they're there for, and eat up whatever you have on hand. Pinch every penny until it screams when you do buy food. And those household items and toiletries? If you don't truly need them, don't buy them. Think soap and toilet paper. Conditioner, makeup, fancy face-wash, and most household cleaners are optional (baking soda and water are cheaper). When they run out, let them.

 

If things go long enough that you have to, let the phones and internet/TV services go. Get 1 cheapie prepaid cell phone (trakphone or such) for needed communication, and make the library your friend when you need online.

 

Minimize driving to save gas, and you can probably go a couple extra months/Kmiles w/o an oil change. If you own your car outright, consider going to state minimum coverage if you have more, assuming you pay monthly. If either you or your DH is a veteran, look into switching to USAA for your insurance. Consider selling a vehicle if you have more than one. Now is also a good time to plan a garage sale, etc.

[Renee in NC]

Is the union insane? Can't the company just hire new workers? With this economy, striking seems completely nuts to me.

 

It didn't work for a factory where we used to live. The company wouldn't give them what they wanted, the workers went on strike, and the company hired people to replace them. After 9 months or so they did come to an agreement, but it was the employees giving in.

[angela in ohio]

Medical people aren't allowed to strike though so the consequences are more dire. In the case of the OP the non-union workers could leave, but they would lose their jobs.

 

I'm going to assume that public utilities have a similar situation, and that't why the lock-in provisions are being made.

[Joanne]

Praying for your family.

 

And for peace and knowledge of security for the adults.

 

{{many hugs}}

[dansamy]

Medical people aren't allowed to strike though so the consequences are more dire. In the case of the OP the non-union workers could leave, but they would lose their jobs.

 

This isn't true either. There are unionized nurses in several states and working strikes is a very lucrative, high-paying travel assignment. The non-union travelers do get the possibility of being mandated. And of working 16 on, 8 off sleeping in a hospital cot.

[melmichigan]

I'm going to assume that public utilities have a similar situation, and that's why the lock-in provisions are being made.

 

Yes, this is correct. The workers would love to keep on working while they work out a deal. The strike vote was so huge because it was a solidarity vote. The company has been making plans to lockout for weeks.

[phathui5]

Food first.

 

Then electric.

 

Mortgage/rent next.

 

Anything else comes after those.

[melmichigan]

So the company was going to lock them out even if they didn't strike?

 

They took a strike vote this last week, but haven't gone on strike. Any strike would have to be appoved by the national union. The vote was a show of solidarity against the company in hope that it would bring about fair bargaining. The company has prepped to lock them out for weeks. The mandates to non union workers went out weeks ago when the trailers started coming in. At the end of the week everyone had to turn in their keys, vehicles, tools, etc. They started locking non union workers in today, day shift, and will announce at 11:30pm if they are removing the union workers who are in the plants as of the expiration of their contract at midnight tonight.

[Scuff]

If you hear anything, please post it. Since my DH doesn't go in until the morning, the heads up would be nice. Although he has been checking his email, ect all day. But in case he doesn't hear anything and you're still up,

[melmichigan]

Oh I'm sure I will be up. :001_unsure: I spoke to my DH a few minutes ago and all the non union workers are officially locked in. So we are just waiting...

[Scuff]

:D

Edited June 7, 2010 by Scuff

[FaithManor]

I am so sorry. I am not certain what location you are at in Michigan. If you happen to be in Mid-Michigan, I know of several churches with a number of outreach programs including help with electrical bills and in the winter, heat. Additionally, quite a few have food programs.

 

I agree with the others about keeping your four walls unless you rent and can get out without penalty. If you rent and have family near, it might make sense to move in with family for the short term and be able to save that money even if you gave your family members half of the former rent payment to help offset their utility costs for housing you.

 

This might be a good time to completely de-clutter, have a garage sale, list some things on craigslist or ebay and put the money away.

 

As for the lock-in thing, even my dd as an E.M.T. in paramedic school could fall under such orders in the case of a natural disaster. No joke, she could be ordered on ambulance shift indefinitely? It isn't common but there have been instances, 911 comes to mind, when paramedics did endless shifts with only scanty sleep. Usually two hour rest periods then "up and at 'em" to replace someone else for their two hour rest. The law has that much control when human life/safety is on the line.

 

Faith

[melmichigan]

An update for those who are wondering. Last night, at 12:30, they came to a temporary agreement. So for now everyone's still working. And we'll see where it goes from here.

 

(I PM'd last night because no one was releasing any information to the public until this morning. Why I do not know, but everything is still hush hush and no details or comments have been made on either side regarding the agreement, not even to members.)

 

My DH came home this morning physically and emotionally exhausted, it was so stressful in the plants last night. The company let all the non union workers go home around 1 am so at least that part is back to normal for right now. We will know more in the coming days as details are released and the union members prepare for a vote.

[Scuff]

Oh oops. I can go back and edit. DH got an email this morning, so I figured it was out. Though he still didn't know anything substantial.