Please help not sure which way to go

johny2008

Hello, i have been made redundant and getting £4000 pay off, i have 3 credit cards which i have insurance for but have just bought a car which i dont have insurance for, £330 a mth, I will have to sign on to activate my insurance but will i be able to if i have had a pay off of £4000?
I also would mind trying my own thing with the £4000 but if i do would i be able to sustain the repayments as total repayments would be £330 for car and about £300 for cards as well as other bits and pieces, I dont know what to do for the best, if i do use the money on a job by myself ( catering ) I know its earning about £500 week less stock and rent.
Shall i sign on get set up ten see how it goes?
I now its wrong to do that but feel stuck in a corner as if i dont set up myself I wont afford the car just having dole money but if i do set up and not sign on I might not be able to afford cards or car???
hope this makes sense.
I have been in touch with car company and they wont budge on payments.

i Have thought about going bankrupt but have been told that the pay off i get will be investigated so i doubt i can set my own thing up, dont know what to do for the best.

please help I hope you understand what i mean

savingholmes

johny2008 wrote: »

Hello, i have been made redundant and getting £4000 pay off, i have 3 credit cards which i have insurance for but have just bought a car which i dont have insurance for, £330 a mth, I will have to sign on to activate my insurance but will i be able to if i have had a pay off of
£4000? Yes you can sign on even if you get a pay off - which triggers your insurance after any eligibility period - you won't get paid job seeker's allowance however until your notice period has run out. Signing on also protects your national insurance stamp and your pension...

I also would mind trying my own thing with the £4000 but if i do would i be able to sustain the repayments as total repayments would be £330 for car and about £300 for cards as well as other bits and pieces, I dont know what to do for the best, if i do use the money on a job by myself ( catering ) I know its earning about £500 week less stock and rent.
Shall i sign on get set up ten see how it goes?
I now its wrong to do that but feel stuck in a corner as if i dont set up myself I wont afford the car just having dole money but if i do set up and not sign on I might not be able to afford cards or car???
hope this makes sense. As to whether you should set up in business - this is hardly an ideal time in this economy - so you would need to be very sure that it was going to be worthwhile as once you are self-employed you are less able to a) get the type of insurance you're talking about and b) you are unlikely to be eligible for job seekers....

I have been in touch with car company and they wont budge on payments.

please help I hope you understand what i mean

In your situation I would try and get another job - bank the money for now and then review the situation later but then I'm not really a risk taker!

HTH

johny2008

Thank you, its just i have been made redundant so many times Im thinking just give it a go, im in debt anyway so it cant get any wors, the business/job i can get is already up and running and I would be able to sell it again if i needed too for roughly same price, I understand what you mean and i have thought about saving the money as you say, the problem being I still would have to pay for the car so it would not last long?
Job situation is quite bad here at the momment and im not the type to sit around being pick'y about jobs, i will try my hand at anything.
I guess i just need to decide
thank you

whitewing

It can get worse if you're not keeping tight control of your finances in your business though.

If you do go self-employed, don't forget to register as such with the Inland Revenue, and keep on top of the paperwork.

Do you mind telling us more about your background? I'd be less inclined to go self-employed with a young family at this stage?

If you're being made redundant, do you get outplacement support (career transition advice from a third party)? That can be extremely useful if you're not sure what to do.

I think I'd be inclined to get another job, and then maybe plan to go self-employed at some point next year when you can fully assess the risks.

savingholmes

In which case you might be wise to post a full statement of affairs using makesenseofcards (another website) you reformat it for mse and post it here

- you post all your outgoings, income, debts including aprs, minimum payments and any assets. We can then give you some advice on where you may be able to make cut backs - reallocate your money

johny2008

Thank you I will do that,
Im 37 (old) but have no commitmets or property or anything like that, alot of my jobs have been working away comming home to friends family as such at weekends, I do alot of work with fibber optics but I am not fully qualified as a result it is hard to get a job in that field and my last job doing that sort of thing I only got the job because I knew a forman, have been trying to get into other companies but not that easy, coursesto make me qualified are about 6-8 thousand but are job based and thats the problem, no job no qualification no qualification no job, think its a sign of getting old me thinks.

thanks for the help.
J

johny2008

Just thought i would add as a result in me having no ties and that, it is less of a risk to risk the money if that makes sense?
j

johny2008

Going to go now, just in case you think im not replying. will go online in the morning.
thanks again
night all
J

taxi73

Businesse are really struggling at the moment so it may not be wise to set up in this economic climate.I would find work working in anything if I was you even a couple of part time jobs.
Because you were vague and only mentioned catering for self employed work and in another breath stated that work was bad in your area at the moment where are your customers going to come from when everyone is tightening their belts/losing jobs etc?..eating out/takeaways/ sandwiches are all things people cut back on when trying to make ends meet .
At least the dole will feed you and put a roof over your head!!!..you may have to hand the car back or go on a dmp or something similar.
It's unfortunate that loads of people are losing their jobs and it will probably get worse.My DH and I are S/E and it is hard at the moment.
That £500 you may make will probably turn into £100 after expenses such as running costs,tax and insurance.
Good luck with whatever you decide x