NEW CASTLE —
Dear Dave: I’m an accountant, and my company is experiencing layoffs. I just learned that I’ll be losing my job in four weeks. I’ll receive a severance check, but I have no other savings set aside. Should I use some of the severance to pay off debt, or hold on to that money as long as I can? — Frank
Dear Frank: I’d hang on to that money and pile up as much other cash as I possibly could. Right now, the most important worries are food, lights, water and shelter. Debt is not on the list. We need to take care of your basic survival needs first and make that money stretch as far as it will go. There are two bright spots in this scenario. One, you know the wolf is going to be sniffing around the door, and that gives you time to prepare. The second thing is you’re an accountant, and that’s a very marketable skill. Lots of companies are going to be looking for your kind of expertise as we slowly turn the corner and come out of this recession. Here’s another thing. The better financial cushion you have during this time, the better you’ll do when interviewing for other jobs. Things will be tight, but if you’ve saved and budgeted your money well, you won’t come off as needy or desperate. You can be confident in your abilities to add value to a different company, instead of being all freaked out and begging for a job. Then, once you’re settled into someplace new, you can start writing checks out of the remainder of the severance money and your first couple of paychecks to catch up on things! — Dave
Dear Dave: Several months ago, I was diagnosed with stage 4 cancer. I have about $30,000 in credit card debt and would like to continue getting my finances in order. My husband has been unemployed for six years due to his own health issues, but I do have life insurance, a 401(k) and receive Social Security. How should we handle this? — Vivian
Dear Vivian: God bless you and your husband. I know this is a really rough time for you both. I hope you guys are sticking by each other and loving on each other a lot. That may not make these problems go away, but it will make you each stronger and bond you together in incredible ways. If I’m in your shoes, the last thing I’m going to worry about is credit card debt. Your concern right now should be your quality of life and taking advantage of all the medical options that are available to you. That’s the primary goal. You and your husband need to use your financial resources to prioritize, but at the moment you come first. For someone in your situation, that’s not being selfish. The hard truth is this. We’re all going to die some day. Anything you own, like the 401(k), has to stand good for what you owe when you pass away. In other words, the credit card debt would have to be paid before your husband or others received anything from your estate. I appreciate your diligence and honor in wanting to make sure your debts are handled. But in this situation, so what if a credit card company has to wait a while to get paid? It will happen when it happens. Right now, you are the number-one priority. — Dave
All About You ...
Related Photos
-
For years Dave Ramsey has been the host of the popular ‘Dave Ramsey Show’ on radio stations across the nation. Now, his financial advice column is carried by more than 300 publications. It will appear each Friday on The News website.
Discussion
Dave Ramsey: Handling the severance package
- All About You ...
-
-
Sarah Stright-Hartley: ‘With child’ doesn’t have to mean without style
Over the past month we've talked about wedding styles for women and wedding styles for men. I didn't want to leave out my pregnant ladies! Dressing for a wedding during the hottest months of the year while you're pregnant can be understandably difficult.
-
Kali Davies-Anderson: Ten things I’ve learned from my father
By the time you read this, Father’s Day 2013 will have come and gone. However, I would still like to take the time to wish all of you dads out there a happy Father’s Day, with special wishes going out to my own father, the infamous Bob “Booby” Davies and my husband and father to my children, the not quite as infamous Erik “Crow” Anderson.
-
Mitchel Olszak: Excuses for data sweep sound hollow
Perhaps 2013 will go down as the year privacy and civil liberties became too inconvenient for government. Listening to assorted officials defend massive programs that scoop up vast amounts of data certainly gives that impression.
-
Culinary Conversation: Lighter fare great during summer months
Sometimes a cook just wants to hear the word “easy.” And in warm weather, who wants to turn on the oven? We would love to hear what you’re making during these warm months.
-
Dave Ramsey: Offer settlement to creditors — not information
“Dave Says" is a weekly column featuring financial advice from nationally syndicated radio host Dave Ramsey. His column is filled with timely, relevant questions and answers taken from actual letters and calls on Ramsey's radio program, “The Dave Ramsey Show.
-
Need a last-minute gift idea for Father's Day? Pick up a ’Canes’ DVD!
One team. One vision. One heartbeat. TWO incredible keepsakes! Relive all the magic of New Castle High’s WPIAL championship basketball season by purchasing a collectible DVD or special section that was given out at the team’s banquet.
-
Lori Brothers: Tips to keep your breath from stinking
I remember, when I was about 12 years old, my grandmother talked about how mint was excellent to chew on because it prevented halitosis. She actually used this word, which expanded my vocabulary, but also horrified me.
-
Sarah Stright-Hartley: Summer sandals can go with just about anything
Ah, summer! The time to relax on the beach, sun yourself and attend many barbecues. And also the time to free your feet from the confines of the past several months being bundled up in boots and closed-toe shoes.
-
Kali Davies-Anderson: If I remember correctly ... aw, nevermind, I don’t.
I used to think I was good with remembering faces. In fact, I would see a person one time in the checkout of a grocery store and the next time I would see them I could recall the contents of their shopping cart. However, somewhere along the line this gift of facial recognition somehow dwindled
-
Mitchel Olszak: Casino satire comes to fruition
Several years ago, I wrote a satirical column about government subsidizing casinos. In it, I envisioned a time in the future when casinos became so prevalent that the gambling market was glutted with them.
- More All About You ... Headlines
-
