Jennifer's Compass

Viewer Questions: Unemployment insurance, FSAs and gift cards

Thanks for sending your questions:

Michael from Fall River: I live in MA and I worked in RI. I was laid off a few weeks ago, but I'll receive continued compensation and benefits through my separation date of 12/31. After that I have a severance package that runs through July 2009. When should I apply for unemployment? Many people say to apply right away, but would it be better to wait until after my severance ends? I don't want to lose any benefits.

Tommy in Lowell One my employee benefits is a flexible spending account or FSA. I've never used it before, but now I have medical expenses that are not covered by insurance. Would an FSA save me money?

Sandy in Worcester I like giving gift cards as presents, but with all the stores closing some people have said to avoid them. Are the American Express gift cards a better alternative to the retail store cards?

Click here to watch the segment with the answers:

Kicking off your smart holiday shopping

Make your holiday a money savvy one by setting clear priorities before you go shopping. Learn the Grinch's lesson; "Christmas doesn't come from a store" and have a happy holiday without wracking up more credit card debt.

Increasing your job security

No one is completely "lay-off proof" – especially in this economy. This segment offers suggestions on how to increase job security and tips to help survive if your job gets downsized.

What to check for when purchasing gift cards

The holiday shopping season officially kicks off next Friday. In light of the state of the economy, Massachusetts Attorney General Martha Coakley has issued some advice to consumers about certain gifts this year -- especially gift cards, and gift certificates.

Help with your bad mortgage....maybe

Fannie Mae and Freddie Mac announced a new loan modification plan this week to try to keep some struggling homeowners in their homes.

To qualify for this new plan -- which supplements modification plans already in place -- the homeowner must:

* be able to afford the mortgage accept for a recent financial hardship

* have a mortgage made on or before January 1, 2008

* be at least 90 days behind on payments

* be escrowing taxes and insurance

Loan servicers will adjust the interest rate, extend the term of the loan or forebear principal payments to create a new payment equal to 38% of the mortgagees gross pay. After three payments have been made on time the modification becomes permanent.

If you're having trouble with your loan, take a very close look at your living expenses and review all your options including selling the house as well as loan modification. Call your servicing company to see what loan options are available. Be sure that you understand the modification they offer you. Some programs may take away your option to file bankrupzy.

Thank you Veterans!

What better way to honor veterans on Veteran's Day than to donate to a Veterans charity or send a care package to someone serving overseas.