I got laid off right before thanksgiving. Boo… but in actuality, I got very lucky with a 6 month severance package on top of the company paying out my yearly bonus (usually comes in february) and additional money to cover 6 months of cobra. I knew about this layoff for about 6 months, so although I was still paying down debt, I was also saving a lot of money in case I would be out of a job for awhile. I should I have asked earlier for advice on this, but I guess late is better than never.
I got the following payout:
6 months salary, which will payout as normal paychecks (every 15th and last day of month) starting today 11/30/12 and last one will be 5/15/13. The total I’m getting here is approximately 38k. Taxes taken out I believe is around 35% for both state and federal (I live in California)
Bonus amount was 10k, which ended up after taxes to be 5,800.
The extra money for 6 months of COBRA came out to 2,000 after taking out taxes, as they considered this to be income.
Since all this money came in today, I put pretty much everything away in savings/money market except for 2k in my bank, and I also put money into my roth IRA since I no longer have a 401k to contribute to. So now, I’m sitting on about 17k in savings (including from what I’ve saved before) and I will also start receiving around 450 a week in unemployment.
My question is how should I continue to pay off debt? Should I stay on my current payment plan, or be more conservative in case it takes awhile to find a job?