Consider whether you

should negotiate for more severance pay or other perks, particularly if

circumstances, such as your age, may make it more difficult for you to

land a new job.

In any case, resist

the temptation to use your severance to pay off your mortgage or credit

card debt. You may need the money down the road to keep you in the black.

Apply for unemployment

benefits.

Each state has different

eligibility requirements for qualifying for unemployment benefits. Normally,

if you've lost your job through no fault of your own (such as being laid

off) and you meet your state requirements for wages earned or time worked

during a certain period, you can qualify for unemployment benefits. Most

states now pay up to 26 weeks.

Don't forego medical

insurance.

Most employees are

accustomed to having the company pay all or part of their health insurance

and other benefits.

However, once you're

laid off, the cost of benefits generally becomes your personal responsibility.

Medical coverage is expensive but make no mistake, no one, especially

not the unemployed, can afford to be without it.

Under COBRA, a federal

law that derives its name from the Consolidated Omnibus Budget Act, you

and your family can remain covered by your company's health insurance

policy for up to 18 months (longer in some cases). You pay the tab, generally

at the company's group rate plus a 2 percent administration fee. You have

60 days to elect coverage under COBRA, and within that period you can

choose to have the coverage begin retroactively.

Slash expenses.

The first step is

to prioritize your bills and take a hard look at how you may be able to

reduce discretionary spending.

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