Would you take the plunge? Advice needed

ex_fox_now_a_dragon

I have been offered voluntary redundancy on compulsory terms with a payout of £25K. Now my personal debt is about £28k plus our mortgage which is around £164K. I'm very tempted as I can pay off the majority of my debt with the payout. But that is only a short term gain. I believe that my working conditions will change dramatically in the next few months (becoming worse not better), but I don't have a crystal ball and after all a job is a job.
I would like to know what other people would do in this situation and in this current economic climate as I'm leaving one day and then the next day I'm not and it's hard to have an impartial view talking to other colleagues.
Thanks for your time

henm01

ex_fox_now_a_dragon wrote: »

I have been offered voluntary redundancy on compulsory terms with a payout of £25K. Now my personal debt is about £28k plus our mortgage which is around £164K. I'm very tempted as I can pay off the majority of my debt with the payout. But that is only a short term gain. I believe that my working conditions will change dramatically in the next few months (becoming worse not better), but I don't have a crystal ball and after all a job is a job.
I would like to know what other people would do in this situation and in this current economic climate as I'm leaving one day and then the next day I'm not and it's hard to have an impartial view talking to other colleagues.
Thanks for your time

Thank God, somebody has posted a question I have been dying to ask myself. I am in the same position as you but I have been verbally offered a couple of jobs staying with my current employers. The VR/CR money is so tempting but should I be looking at job security and not the cash?

Everybody keeps telling me that I will find another job - but will I?

bunny999

Unless you have another job to go to I would hang to the one you've got. How are you going to pay your mortgage? If you pay off all your debts this will count as deprivation of assets and debar you from means tested benefits. If you have more than £16,000 in saving -ditto. JSA (contributory) is only paid for 6 months.
Do you have a partner who can afford to support you?
It is a nightmare trying to get ANY job at the moment and it sounds as if your financial position is dire enough (massive debts) without taking any risks.
If you hate your job start trying to find a new one, but don't hold your breath. This depression is the worst that has happened in living memory.

1984ReturnsForReal_2

If you have more than £16,000 in saving -ditto. JSA (contributory) is only paid for 6 months.
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He/she wont have any savings if they use the £25k to pay off a majority of the personal debt.

neilcr_2

I have just took VR as I have no debts and mortgage is paid. The long hours of the job I have just finished was getting me down and giving me high BP.
I realize things are bad out there now but if it carries on like this we will all be stuffed anyway.

I suppose it is a risk but people with good work records who want to work should be OK.

bristol_pilot

I would not give up a job voluntarily for £25k unless I had another job lined up - if I did, I would consider it. In fact, I once left a job under similar circumstances and received a payment of about that amount then started my new job the following day. Without another job lined up and at the beginning of a recession I would want around £100k. A job is a job and very worthwhile hanging on to.

bristol_pilot

neilcr wrote: »

people with good work records who want to work should be OK.

sadly, I disagree

Oldernotwiser

1984ReturnsForReal wrote: »

If you have more than £16,000 in saving -ditto. JSA (contributory) is only paid for 6 months.
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He/she wont have any savings if they use the £25k to pay off a majority of the personal debt.

You forget that lots of people have both debts and savings!

1984ReturnsForReal_2

Oldernotwiser wrote: »

You forget that lots of people have both debts and savings!

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I dont forget anything "I'm very tempted as I can pay off the majority of my debt with the payout."

neilcr_2

bristol_pilot wrote: »

sadly, I disagree

Give me a break mate :beer: I have just worked 37 years long hours and don't you think I would have some good contacts. Good health is worth more than any job as some of my friends have found out in recent years.

I will take my break and go back to work soon enough;)

Oldernotwiser

1984ReturnsForReal wrote: »

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I dont forget anything "I'm very tempted as I can pay off the majority of my debt with the payout."

You're missing the point; he might have savings other than his redundancy money.