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  • FIRST POST
    • Mondy
    • By Mondy 11th Jan 18, 11:24 AM
    • 41Posts
    • 0Thanks
    Mondy
    Looking for advice on what to do with bills/debt after redundancy
    • #1
    • 11th Jan 18, 11:24 AM
    Looking for advice on what to do with bills/debt after redundancy 11th Jan 18 at 11:24 AM
    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
Page 1
  • National Debtline
    • #2
    • 11th Jan 18, 12:27 PM
    • #2
    • 11th Jan 18, 12:27 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • ratrace
    • By ratrace 11th Jan 18, 12:32 PM
    • 489 Posts
    • 328 Thanks
    ratrace
    • #3
    • 11th Jan 18, 12:32 PM
    • #3
    • 11th Jan 18, 12:32 PM
    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
    Originally posted by Mondy
    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
    People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”

    Rat Race
    • Mondy
    • By Mondy 11th Jan 18, 3:23 PM
    • 41 Posts
    • 0 Thanks
    Mondy
    • #4
    • 11th Jan 18, 3:23 PM
    • #4
    • 11th Jan 18, 3:23 PM
    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
    Originally posted by National Debtline
    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 www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by Mondy; 11-01-2018 at 3:36 PM.
    • thriftychick
    • By thriftychick 11th Jan 18, 3:44 PM
    • 185 Posts
    • 230 Thanks
    thriftychick
    • #5
    • 11th Jan 18, 3:44 PM
    • #5
    • 11th Jan 18, 3:44 PM
    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.
    Just when I'm about to make ends meet, somebody moves the ends.

    MBNA 0% Card £4,800 now £3,300 (Aug 15) £2,420 (May 16) now £1,870 (Oct 16)
    WTC overpayment £3,616.36 now £766.36 (Aug 15) £316.36 (May 16) now £66.36 (Oct 16) £0 (Feb 17)
    • Mondy
    • By Mondy 11th Jan 18, 4:06 PM
    • 41 Posts
    • 0 Thanks
    Mondy
    • #6
    • 11th Jan 18, 4:06 PM
    • #6
    • 11th Jan 18, 4:06 PM
    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.
    Originally posted by thriftychick
    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
    • By thriftylass 11th Jan 18, 4:06 PM
    • 3,179 Posts
    • 26,118 Thanks
    thriftylass
    • #7
    • 11th Jan 18, 4:06 PM
    • #7
    • 11th Jan 18, 4:06 PM

    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 www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Originally posted by Mondy
    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
    • andydownes123
    • By andydownes123 11th Jan 18, 4:07 PM
    • 139 Posts
    • 239 Thanks
    andydownes123
    • #8
    • 11th Jan 18, 4:07 PM
    • #8
    • 11th Jan 18, 4:07 PM
    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.
    Originally posted by Mondy
    I think with the levels of debt you have, redundancy is an option you should explore.
    • thriftylass
    • By thriftylass 11th Jan 18, 4:10 PM
    • 3,179 Posts
    • 26,118 Thanks
    thriftylass
    • #9
    • 11th Jan 18, 4:10 PM
    • #9
    • 11th Jan 18, 4:10 PM
    I think with the levels of debt you have, redundancy is an option you should explore.
    Originally posted by andydownes123
    Did you read any of the previous posts?
    • andydownes123
    • By andydownes123 11th Jan 18, 4:16 PM
    • 139 Posts
    • 239 Thanks
    andydownes123
    Did you read any of the previous posts?
    Originally posted by thriftylass
    I meant bankruptcy whoops
    • Mondy
    • By Mondy 11th Jan 18, 4:55 PM
    • 41 Posts
    • 0 Thanks
    Mondy
    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
    • Drawingaline
    • By Drawingaline 11th Jan 18, 10:08 PM
    • 237 Posts
    • 938 Thanks
    Drawingaline
    My husband was made redundant in April 2016 and was out of work for 13months. We managed. Look online to see if you qualify or any council tax support, are you receiving child tax credits? If so ring them now and let them know. You should be due an increase.
    Can your partner look for a part time job? I was working two jobs while my husband was out of work which meant we could at least pay the mortgage.

    However I definitely think speaking to one of the debt charities to discuss short term and long term options is a must
    • Mondy
    • By Mondy 12th Jan 18, 10:13 AM
    • 41 Posts
    • 0 Thanks
    Mondy
    My husband was made redundant in April 2016 and was out of work for 13months. We managed. Look online to see if you qualify or any council tax support, are you receiving child tax credits? If so ring them now and let them know. You should be due an increase.
    Can your partner look for a part time job? I was working two jobs while my husband was out of work which meant we could at least pay the mortgage.

    However I definitely think speaking to one of the debt charities to discuss short term and long term options is a must
    Originally posted by Drawingaline
    My partner does receive child tax credits, I am nit sure if she would be entitled to more since I am now unemployed?

    As for my partner working this is something she is looking at but its tricky to juggle work whilst looking after our one year old son. Unfortunately we do not have any help from family to look after him.

    With regards to calling debt management companies this isn't something I have done before. I am not sure what to expect or how they would be able to help. Would any debt plan impact my credit rating or impact on me getting a job in a bank for example?
    • Ilona
    • By Ilona 12th Jan 18, 10:22 AM
    • 1,997 Posts
    • 6,860 Thanks
    Ilona

    With regards to calling debt management companies this isn't something I have done before. I am not sure what to expect or how they would be able to help. Would any debt plan impact my credit rating or impact on me getting a job in a bank for example?
    Originally posted by Mondy
    Just picked this up. Do not call a debt management company which charges a fee. You can get free help from Stepchange, Christians Against Poverty, and Citizens Advice. Any of those will go through things with you. Repeat....DO NOT PAY FOR HELP. They will take a cut and it will take a lot longer to resolve things.

    Ilona
    I love skip diving
    • Mondy
    • By Mondy 12th Jan 18, 10:34 AM
    • 41 Posts
    • 0 Thanks
    Mondy
    Just picked this up. Do not call a debt management company which charges a fee. You can get free help from Stepchange, Christians Against Poverty, and Citizens Advice. Any of those will go through things with you. Repeat....DO NOT PAY FOR HELP. They will take a cut and it will take a lot longer to resolve things.

    Ilona
    Originally posted by Ilona
    Thanks for the advice, if I was going call any debt management company it would be StepChnage. But as I said above I am not sure if it would impact my credit rating or impact on me getting a job in a bank for example?
    • sourcrates
    • By sourcrates 12th Jan 18, 1:17 PM
    • 13,066 Posts
    • 12,376 Thanks
    sourcrates
    Thanks for the advice, if I was going call any debt management company it would be StepChnage. But as I said above I am not sure if it would impact my credit rating or impact on me getting a job in a bank for example?
    Originally posted by Mondy
    Hi Mondy,

    You don't have enough money in your budget for debt management, you are currently, to all intents and purposes, insolvent, to the tune of £854.00 a month.

    Any form of debt management or missing payments will impact your credit file, i don't think you can avoid that now.

    To me you seem like the perfect candidate for bankruptcy,
    (i suspect stepchange will agree).

    You are out of work, you have no tangible assets, and find yourself £33,000 in debt, with no way of currently repaying it.

    Your budget is not extravagant at all, i`m not a fan of cutting back budgets to the bone for no real gain.

    Short term, you could just offer your creditors £1 a month each for the time being, write to each one explaining the situation.

    Long term, if you get work again soon, then re-evaluate the situation, if, on the other hand, well enough paid work didn't materialize, you always have a fall back option.
    Last edited by sourcrates; 12-01-2018 at 1:26 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • C.M.
    • By C.M. 12th Jan 18, 5:34 PM
    • 52 Posts
    • 102 Thanks
    C.M.
    Just an observation - you mention your partner would find it difficult to juggle looking after your one year old and working. But you are currently not working, so surely you could help out with the childcare; and then plan any new employment so that you work opposite 'shifts'...

    If your new employment is week days 9-5ish then your paryner can work evenings and weekends - to minimise childcare required, as it would appear that even if / when you return to employment one salary isn't enough for you to make a substantial dent in these debts - you have been living beyond your means prior to redundancy
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