Debt Help through Redundancy in the Uk

Sometimes redundancy comes out of the blue and it can have devastating effects. If you find that financial problems have become inevitable after redundancy we have some suggestions and ideas that you may find helpful.

The two main things to remember are

1) DO NOT PANIC and
2) DO NOT IGNORE THE PROBLEM, it won't go away on its own.

As the last thing you want to do is to make the situation worse, don't take out any further credit. First get a good grasp of the situation, make a list of all the people you owe money to. Ask yourself how much you owe to each one and what type of debt it is. Include all of your debts, whether your payments are up to date or not. This could be credit cards, a mortgage, bank overdrafts etc.

Because some debts can have a dramatic effect on your life, you need to prioritise your debts. Mortgage arrears can lead to home repossession so you will need to agree on repayments of these priority debts first.

All this will lead to you knowing and understanding the total amount of money you have available on a weekly or monthly basis.

Your disposable income is the amount left over from your total income that is not eaten up by bills. Try to eliminate unnecessary expenses. Don't be surprised on how much of your income is spent on essential items like food and fuel. Also, try to ensure you are maximising your income as well. For example, there may be benefits you are not getting which you may be entitled to. Check to see, you may be pleasantly surprised.

Try to re-negotiate your monthly repayments by getting in touch with your most important creditors first. If you have any other money left over, split it between your other creditors.

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 free on (0800) 018 6868.

Either call our free debt 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.