The Motley Fool Discussion Boards

Previous Page

Personal Finances / Credit Cards and Consumer Debt

URL:  http://boards.fool.com/reposted-to-make-it-easier-to-read-which-brings-30679084.aspx

Subject:  Re: Poll: E-fund Date:  5/11/2013  12:51 PM
Author:  TheEvilDrP Number:  307018 of 308454

Reposted to make it easier to read:

Which brings me to another point. People assume that when unemployed, expenses will go down. In my experience, most did by quite a bit. In fact I think they went down by about $600 to $800/month when I was unemployed; but that was completely offset by extra insurance and medical expenses I was not paying when I was employed. My employer folded, so there was no COBRA so my insurance payments went way up and what it covered was essentially nothing as it was a High Deductible Healthcare Plan and I never met the deductible.

To add on to what Joel said:

When I was laid off in 2008, my medical insurance went from $112/mth (employed) to $730(COBRA). I think that is the correct amount; I know I remember being amazed that anyone would think I* could afford to pay a huge amount for medical insurance when I had no income and was focusing food and shelter first.

Minxie

*I had some savings, received a severance and found a job quickly. The same situation applied to many people though who were not so fortunate. A better use of COBRA, IMO, would be to cover medical insurance premiums for a short time while the person looks for work.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us