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Unfortunately in many of the cases redundancy is unexpected and can have devastating effects on you, your family and your home both financially and emotionally as the debts build up. If you have recently become redundant and the financial problems have become inevitable after redundancy here are some suggestions and ideas that may help you:
Remember:
- Do not panic
- Do not ignore the problem, it will not go away on its own.
It is important not to take out any further credit after redundancy as the loss of income will have possibly caused you to get behind on your existing debts and further borrowing will only make your situation worse. It can sometimes feel using credit cards is the only way to continue meet your current secured or unsecured debt repayments however this will only cause an increase in your debts.
Debt Plan Direct can help you avoid this scenario by providing free Debt Management Advice.
In some redundancy cases you may receive a lump sum amount from your employer. This may enable you to negotiate a Full and Final Settlement of your outstanding debts to clear either the whole debt amount or a portion of it. Contact a Debt Plan Direct adviser to see how we can help in this situation to help ease the burden of your debt repayments.
First of all you need to get a good understanding of your situation by making a list of all your creditors (the people you owe money to). Next find out exactly what is owed on each type of secured (e.g. Mortgage, Hire Purchase agreement) or unsecured debt (e.g. credit cards, store cards, overdrafts, personal loans). Include all of your debts regardless if your payments are behind or are up to date.
As some of your debts will be priority debts such as your mortgage (or any loans secured against your house) you will need to agree a repayment arrangement immediately to stop any mortgage arrears building up. As any mortgage arrears can lead to home repossession so you will need to agree on repayments of these priority debts first.
By calculating your disposable income on a weekly or monthly basis will enable you to find out how much money is available from your total income that is not taken up by your general living costs. Don't be surprised on how much of your income is spent on essential items like food and fuel. It is important to maximize your income by ensuring you receive the any full benefits entitlement.
If you feel you need help in organising your debts or have finally got to a point where you can't cope anymore, call us on 0845 055 8152.
Either call our free debt advice helpline or submit your details online and one of our trained debt advisors will call you back when it suits you.
This is a free, no obligation, confidential service and no sales person will call.
Remember: You should seek debt advice as soon as your financial circumstances change.
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