With the recent announcement by AirTran management of their
intention to seek concessions, it’s essential for all flight
attendants to review the following important tips to help
you through this difficult period.
Assess your financial status.
• Prepare a household budget and cut any non-essential
items.
• Prepare a list of all creditors and a contact person. Make
minimum payments.
• Place your money in a bank in which you have no debt.
• Attempt to secure a loan early, so you will have a cash
flow.
• Assess your tax situation. You may be owed a refund or
need to file an extension.
• Be proactive. Assess your credit card debt. Look into a
temporary reduction or abatement in payments.
Contact your creditors.
-
You
must communicate with your creditors before any payments
become delinquent, and the sooner the better. You can
negotiate a lower repayment schedule before you run out
of money. Be professional, but assertive. Creditors are
easier to work with if they know ahead of time that
there’s a problem. Also, it shows ‘good faith’ – that
you are concerned about your debts and intend to pay.
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The
goal is to make the amount of money you’ve saved last as
long as possible. Pay what you can on a regular basis,
even if it’s less than expected. Partial payments may
keep collection agents away. Follow-up all telephone
conversations with a letter and keep documentation. Even
in the worst-case scenario, it takes a long time for
collections, repossessions and evictions to occur.
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Contact credit counselors in your state who can help you
sort out your financial affairs. Be sure to remember to
contact the creditors that are automatically payroll
deducted. Even if you can’t pay creditors the amount
they want, make your best effort to pay something
regularly. This holds arrears as low as possible and
lets the creditor know that you are doing all you can.
Partial payment may keep your account from being turned
over to a collection agency. Put your payments in order
of importance; this will help you pay first things first
when money is short. Generally, your most important will
be the mortgage or rent payment, followed by utilities,
health insurance and car payments. And after the initial
contact, it’s important that you keep in contact with
creditors – every two weeks or so. This reassures the
creditor, shows a responsible attitude toward your
obligation and may keep the creditor from ‘hounding’
you.
Prepare a household budget.
A budget helps you see where you spend your money and where
you can save. Your budgeted expenses should include:
• Fixed expenses, including: mortgage, rent, taxes,
insurance, loans, installment payments, credit card payments
and any
other monthly payments.
• Monthly expenses, including: food, gas, repairs, dues,
recreation, prescriptions.
• Future expenses, including: income/property tax and any
other outstanding debts.
Your budgeted income should include:
• Any remaining income • State disability insurance benefits
• Savings • Workers’ compensation checks
• Severance pay • Accrued vacation pay
• Unemployment compensation • Refund from pension funds
Your assets may include:
• Cash value of insurance policies • Equity in your home
• Prepaid burial or funeral policy • Resale value of
vehicles (including boats and snowmobiles)
Now you’re ready to adjust your expenses, negotiate with
creditors and use assets in the most effective way possible.
Midway Flight Attendants
n
AFA Resource Newsletter
Seek help in your community.
Check your local phone book or community guide to locate
assistance services in your area, such as food banks,
children’s services, support groups, utility/energy
assistance, credit counselors, unemployment compensation,
religious groups, etc. Any help you receive will lower your
bills, stretch your dollars, and ease your tension. Each
state and county has different services available.
File for unemployment immediately.
File an application at the state unemployment compensation
office nearest you immediately upon notification of layoff.
Bring your layoff or termination slip from the company that
shows you are out of work. Have identification (driver’s
license, Social Security card and/or company ID) with you
when you apply.
If you’re denied unemployment benefits, APPEAL!
While unemployment compensation programs vary widely from
state to state, all states have an appeal process if you are
turned down for benefits. If you are denied benefits
(notification usually arrives within 10 days of
application), file an appeal to the determination
immediately. In most states, you have only a short time in
which to file an appeal. Many times, mistakes are made in
reviewing applications for benefits. You may have been
disqualified in error.
Retain medical coverage.
Schedule an appointment with your doctor now, if possible,
before your coverage expires. Update and fill all
prescriptions. Ask your doctor for samples. Contact clinics,
hospitals, social and mental health agencies for low/no cost
service to families with financial stresses.
In the case of bankruptcy,
employers are not required to continue group health
insurance or provide a plan to allow for COBRA (continuing
coverage for terminated workers under the Consolidated
Omnibus Budget Reconciliation Act). However, under the
federal Health Insurance Portability and Accountability Act
(HIPAA), people who have group health coverage can’t be
denied group health insurance at a later date, even if they
have a pre-existing health condition. However, if you have a
significant break in your insurance coverage – 63 or more
consecutive days – you could lose this protection. You may
also be eligible for “special enrollment” privileges: If it
has been less than 30 days since you lost your health
coverage, you are eligible under HIPAA for special
enrollment in your spouse’s health plan – but only if your
spouse is already covered by a separate health insurance
policy. Keep in mind, HIPAA coverage can be quite expensive.
If you have additional questions about HIPAA coverage, visit
the Pension and Welfare Benefits Administration at http://askpwba.dol.gov,
or the Centers for Medicare and Medicaid Services at http://cms.hhs.gov/hipaa1.
Take advantage of Union Plus privileges.
Union Privilege, founded in 1982 by the AFL-CIO, develops
and manages the Union Plus programs to help union members
and their families save money in their daily lives. Designed
especially for union members, many of the Union Plus
programs provide the extra help you might need in case you
become unemployed.
• Union Plus Credit Card: If you carry this union-endorsed
credit card, you can skip up to three monthly payments. For
more information, call 1-800-522-4000.
• Union Plus Mortgage and Real Estate: If you have had your
mortgage through this program for at least one year, you can
apply for benefits through the program’s Mortgage Assistance
Fund. For more information, call 1-800-848-6466.
• Union Plus Life Insurance: Provides a skip-payment
provision. For more information, call 1-800-899-2782.
• Union Plus Loan Program: Offers a convenient skip-payment
option. For more information, call 1-888-235-2759.
For more information on ways that AFA’s EAP can help you in
this difficult time, visit www.afanet.org/eap.
For more union-related resources and information, visit the
AFL-CIO website at www.aflcio.org.
n d a n t
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When the Paycheck Stops
Furlough Resources
WARN List
Furlough and LOA Information
|
Council 57
AirTran Airways
www.afaairtran.com
Ask the Union Digital Edition
