Looking for advice on what to do with bills/debt after redundancy

Mondy · 11 January 2018 at 11:24AM

Hi All,

I did post this in the redundancy form but was advised to post here as well for better advice.

I am looking for some advice after being made redundant at the end of December. I am still waiting on my redundancy payment being paid out but in the meantime I am using credit cards to get by for everyday living. I am going to be receiving a small amount, around 4k redundancy and I need to make this last me until i can find a new job.

In the meantime should I be calling up my bank to let them know about my situation. I haven't done this yet as I don't want them to suspend my credit cards. I also have a loan with them of 12k which i can put a stop to for 1 month using the online facility but ideally I would like a longer holiday on this. Is this something a phone call to the bank will solve?

Other bills include the following:

Car finance
MBNA Credit Card (already paying the minimum on this)
Mobiles
Utility bills

I am also due to submit a tax return by the 28th. I have yet to complete this and submit it but I know I will be die the HMRC money and it will be a large one of payment. Should I call them and let them know about my situation?..... I am hoping they can freeze the payment or let me settle it in small amounts.

I have been online and submitted a JSA form while I look for a new role, I have the first appointment on Friday which I am not looking forward too. Is there anything else I should be thinking about looking into as my partner is not in work and we have two kids so its all a bit tight right now and I am fearing the worst. Any help you can provide would be greatly appreciated.

Many Thanks

National_Debtline · 11 January 2018 at 12:27PM

Hi Mondy

How long are you expecting it will take this redundancy payment to materialise?

On a separate note, this would be a good time to do a Statement of Affairs (SoA) if only to see how far your money has to stretch, and thereby give you an idea of how long it would take to fully exhaust that £4K while you are seeking fresh employment. Depending on how long that takes, you may sooner or later need to contemplate taking measures that will result in the credit cards being suspended, but let's have a look at your outgoings first and take it from there. The following version can be easily pasted into this forum thread:

http://www.stoozing.com/calculator/soa.php

Dennis
@natdebtline

ratrace · 11 January 2018 at 12:32PM

Mondy wrote: »

Hi All,

I did post this in the redundancy form but was advised to post here as well for better advice.

I am looking for some advice after being made redundant at the end of December. I am still waiting on my redundancy payment being paid out but in the meantime I am using credit cards to get by for everyday living. I am going to be receiving a small amount, around 4k redundancy and I need to make this last me until i can find a new job.

In the meantime should I be calling up my bank to let them know about my situation. I haven't done this yet as I don't want them to suspend my credit cards. I also have a loan with them of 12k which i can put a stop to for 1 month using the online facility but ideally I would like a longer holiday on this. Is this something a phone call to the bank will solve?

Other bills include the following:
Car finance

MBNA Credit Card (already paying the minimum on this)

Mobiles

Utility bills

I am also due to submit a tax return by the 28th. I have yet to complete this and submit it but I know I will be die the HMRC money and it will be a large one of payment. Should I call them and let them know about my situation?..... I am hoping they can freeze the payment or let me settle it in small amounts.

I have been online and submitted a JSA form while I look for a new role, I have the first appointment on Friday which I am not looking forward too. Is there anything else I should be thinking about looking into as my partner is not in work and we have two kids so its all a bit tight right now and I am fearing the worst. Any help you can provide would be greatly appreciated.

Many Thanks

Hi sorry to hear about the redundancy hope you find work soon

i take it you drive if so you are guaranteed a job in the next few days, if you pop down to a few local fast food places they are always looking delivery drivers, i worked for a local chinese then for dominos for 3 months when i was told my hours at work were getting cut, give it a try its not forever but its better than jsa also get you out of the house

hope this helps

Mondy · 11 January 2018 at 3:23PM

National_Debtline wrote: »

Hi Mondy

How long are you expecting it will take this redundancy payment to materialise?

On a separate note, this would be a good time to do a Statement of Affairs (SoA) if only to see how far your money has to stretch, and thereby give you an idea of how long it would take to fully exhaust that £4K while you are seeking fresh employment. Depending on how long that takes, you may sooner or later need to contemplate taking measures that will result in the credit cards being suspended, but let's have a look at your outgoings first and take it from there. The following version can be easily pasted into this forum thread:

http://www.stoozing.com/calculator/soa.php

Dennis
@natdebtline

Thanks for the advice, the payment actually just came in today and in total its £3090 as i had gone into my overdraft. I have done a basic SoA for the forum but am working on an excel sheet to try and calculate what I am spending out exactly and will work to that. I know I can cut back on internet services like Spotify and the like. I notice my mobiles are high but these are on contracts so not sure if these can be suspended or reduced but still keep the handsets?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 565
Other income............................ 170
Total monthly income.................... 735

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 34
Gas..................................... 45
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 115
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 100
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 11.25
Car Insurance........................... 46
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1042.37

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................12000.....237.......0
Credit Card....................9000......85........0
Car............................12000.....225.......0
Total unsecured debts..........33000.....547.......-

Monthly Budget Summary
Total monthly income.................... 735
Expenses (including HP & secured debts). 1,042.37
Available for debt repayments........... -307.37
Monthly UNsecured debt repayments....... 547
Amount short for making debt repayments. -854.37

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -33,000
Net Assets.............................. -33,000

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

thriftychick · 11 January 2018 at 3:44PM

Hi Mondy,

So sorry to hear of your redundancy, it is a rollarcoaster of a ride but you will get through it.

It has been a few years (2009) since we went through a similar experience but this is what we did. I went to the Council offices to talk to them about Council Tax, this is a huge bill every month and at the time, we didn't have to pay it for the period of time my OH was out of work (this may have changed). When we went to the Jobcentre, someone tried to get us to go onto income based JSA instead of the more appropriate contributions based JSA which we later sorted out. We applied for Child Tax Credits which topped up my income. You have missed rent/mortgage off your SOA but I contacted the mortgage lender and they said that as long as we kept up the repayments, losing your job has no adverse effect (which it hasn't). Personally, we found that talking to lenders was the best way forward and they were as helpful as they could be so I would speak to HMRC.

I know lots of people will be along with better advice than mine. Hope you find a job soon and your situation is resolved.

Mondy · 11 January 2018 at 4:06PM

thriftychick wrote: »

Hi Mondy,

So sorry to hear of your redundancy, it is a rollarcoaster of a ride but you will get through it.

It has been a few years (2009) since we went through a similar experience but this is what we did. I went to the Council offices to talk to them about Council Tax, this is a huge bill every month and at the time, we didn't have to pay it for the period of time my OH was out of work (this may have changed). When we went to the Jobcentre, someone tried to get us to go onto income based JSA instead of the more appropriate contributions based JSA which we later sorted out. We applied for Child Tax Credits which topped up my income. You have missed rent/mortgage off your SOA but I contacted the mortgage lender and they said that as long as we kept up the repayments, losing your job has no adverse effect (which it hasn't). Personally, we found that talking to lenders was the best way forward and they were as helpful as they could be so I would speak to HMRC.

I know lots of people will be along with better advice than mine. Hope you find a job soon and your situation is resolved.

Thanks for the advice. I have my JSA appointment tomorrow morning so I will keep in mind what you have said. With regards to mortgage/rent payments I am in the lucky position that I live in a family owned flat and pay no rent so thats all covered for now.

thriftylass · 11 January 2018 at 4:06PM

Mondy wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 565
Other income............................ 170
Total monthly income.................... 735

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 34
Gas..................................... 45
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 115 High but as you said maybe try phoning them and explain and see what they offer
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 100 Redundancy or not I would try to reduce this
Groceries etc. ......................... 400 check out the grocery etc boards, this can definitely be reduced unless you have two teenage boys
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 11.25
Car Insurance........................... 46
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 Nothing? also no other insurances?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1042.37

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................12000.....237.......0
Credit Card....................9000......85........0
Car............................12000.....225.......0
Total unsecured debts..........33000.....547.......-

Monthly Budget Summary
Total monthly income.................... 735
Expenses (including HP & secured debts). 1,042.37
Available for debt repayments........... -307.37
Monthly UNsecured debt repayments....... 547
Amount short for making debt repayments. -854.37

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -33,000
Net Assets.............................. -33,000

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Just a few comments. Sorry to hear about your redundancy. How likely are you to find a job again. Can your partner work? Could you take a job you're under/not qualified for just to get some extra cash (bar, supermarket work)?

All the best

System · 11 January 2018 at 4:07PM

Mondy wrote: »

Thanks for the advice, the payment actually just came in today and in total its £3090 as i had gone into my overdraft. I have done a basic SoA for the forum but am working on an excel sheet to try and calculate what I am spending out exactly and will work to that. I know I can cut back on internet services like Spotify and the like. I notice my mobiles are high but these are on contracts so not sure if these can be suspended or reduced but still keep the handsets?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 565
Other income............................ 170
Total monthly income.................... 735

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0 No rent at all? But you have council tax?
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 34 Gas and electricy should be about £50-60 change deal?
Gas..................................... 45
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 115 Outragous really - you could have four top of the line phones with high data packs for this price. How come it's so expensive?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 100 Again, on your income this can't go on. Combined with your phone you are spending 30% of your income on digital communication. I don't spend that much of my income on my mortgage!
Groceries etc. ......................... 400 Again, this can be more than halved. Shop at Adli. For two, we spend £30-40 a week with wine.
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 11.25
Car Insurance........................... 46
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20 every month?
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1042.37

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................12000.....237.......0
Credit Card....................9000......85........0
Car............................12000.....225.......0
Total unsecured debts..........33000.....547.......-

Monthly Budget Summary
Total monthly income.................... 735
Expenses (including HP & secured debts). 1,042.37
Available for debt repayments........... -307.37
Monthly UNsecured debt repayments....... 547
Amount short for making debt repayments. -854.37

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -33,000
Net Assets.............................. -33,000

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I think with the levels of debt you have, redundancy is an option you should explore.

thriftylass · 11 January 2018 at 4:10PM

andydownes123 wrote: »

I think with the levels of debt you have, redundancy is an option you should explore.

Did you read any of the previous posts?

System · 11 January 2018 at 4:16PM

thriftylass wrote: »

Did you read any of the previous posts?

I meant bankruptcy whoops

Mondy · 11 January 2018 at 4:55PM

To answer a few questions......

Mobiles
Samsung Galaxy S8+ on EE £45
Samsung Galaxy S8 on EE £40
Samsung Galaxy S7 on Three £30

Internet Services
Virgin 200mb £48
Vidahost £9
Supernews £9
Soundcloud £8
Spotify £15

Looking for advice on what to do with bills/debt after redundancy

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