Redundancy
Redundancy and Debt Problems
Redundancy or being made redundant is a common reason to get into debt. Our advice team offer debt advice and support for people suffering debt problems due after redundancy or being made redundant. Call our advice team today on 0800 0789 544 or apply online.
Experiencing redundancy at any age can be a financial and emotional nightmare. If you have debts already you risk falling into arrears, also being made redundant can trigger new debt or cashflow problems.
Please contact us ASAP if:-
- You feel that your redundancy will leave you short of money to pay repayments on debts such as credit card, loans or even your mortgage.
- You are worried that redundancy will leave you short of money to pay for everyday items to cover basic costs of living such as food, clothing and shelter.
Some of the most common reason for people getting into debt in the UK are:
- Redundancy
- Loss of Income due to reduction of overtime
- Reduction of income
- Loss of overtime
- Being made suddenly redundant.
- Redundancy following serious illness and being unable to work
Our advice team understand that redundancy can be a very worrying time and the debt advice team will be able to provide you with detailed money and debt management tips until you get back into employment.
Top Tips for those suffering debt after redundancy
- Make sure you bank your redundancy payments into an instant access high interest bank account
- Consider using redundancy payouts for full and final debt settlements.
- Work out a budget and stick to it until the redundancy period ends
- If you have debts and you see the redundancy period being a short period then consider paying some any priority debts such as mortgage or rent arrears.
- Please don’t rush off and pay off unsecured debts because this could leave you short if funds for day to day living.
- Contact your state benefits office to see what redundancy benefits you are entitled to.
- Always be prepared to have unexpected costs and so make sure you preserve some of your redundancy payout for emergency expenses around the house or vehicles.
- Please consider taking legal advice is you feel your redundancy was unfair.
- Contact your trade union if you need advice on your redundancy rights.
- Make sure you have received the correct statutory redundancy pay.
- Make sure you look for a new employment straight away and don’t be too picky about the job you take because you could lose the right to statutory redundancy pay if you reject a suitable alternative job.
- You may be able to claim on a PPI – Payment Protection Insurance policy. A PPI policy insures you against redundancy and could provide funds to cover mortgage or credit card debts.
Our debt advice team can provide detailed debt help and advice on what your rights are when you are made redundant or if you are in debt due to redundancy. Call our advice team today or apply online.
