voluntary redundancy to clear my debts - am i mad?

itsalongroad

Hello,

I have been encouraged by my employer to apply for voluntary redundnacy by 9th June - leaving approx 1-6 wks later (my choice, I can give preference)

I have worked there for 4 yrs and would receive appro 21k, TAX FREE. I will not be offered any redunadancy again for at least 6 months

I currently owe either £41k or £55k if you include a debt for which they have lost the CCA. I am paying motnhly via DMP, but none of the creditors are interested in !!!!!!, and its climbing a huge and long mountain. Life is ok, mortgage is paid, we eat ok, and go out once in a blue moon, but its soul destroying

If I take the package, I am thinking a couple of months of token payments, may lead the creditors to think again about !!!!!! and settle for a decent amount, (i.e less than my total package).

I obvioulsy would then need to work and pick up my career again by around sept / oct, which may be easier said than done with thousands and thousands fighting over jobs

Spoke to several headhunters I have worked with previously, and the view is I am marketable and placeable but finding a definitive job by 9th June is highly unlikely as miost employers are taking their time, and not rushing.

I could afford a 20% pay cut no problem without debt. (after tax only 10% anyway). In fact 40% of my income goes on debt payments.

my instinct is to go for it, and try and change my life, although I am worried that my short term head is sending me in this direction, and the pressure of debt is skewing my judgement

Am I mad?

itsalongroad

bump - thanks

Shoe_Gal

Hi

Not sure what industry you work in - and am slightly wary of recruitment consultants - but my instinct says go for it!

itsalongroad

oh, another thought, anyone no whether I would get benefits as I have 'volunteered'

leese2504

I took voluntary redundancy to pay off my debts, I finished on the 13th Feb and started my new job on the 16th Feb. The reason it didn't work out for me is because my husband is self employed and stopped getting work around the same time, so the money got swollowed up supporting up until he got paid work again. I have also been to two other job interviews since and got offered a job both times ( turned them down ) So my advice would be, start applying now as it takes a good number of weeks before you even get an interview that way if you change your mind re taking the redundancy you can turn down any scheduled interviews. I work in the public sector and have had no shortage of job offers/interviews - hope this helps

leese2504

itsalongroad wrote: »

oh, another thought, anyone no whether I would get benefits as I have 'volunteered'[/QU

have a look on gov.co.uk they have alsorts of info regarding redundancy etc

tuggy

My gut would be to go for it. Could your partner support you if you cant find a new job soon? if the mortage is paid then I say do it. because if the worst comes to it you can buy a big sack of porrige oats and not spend a penny!

itsalongroad

thank you, i shall

another thought - does anyone have a view on how long creditors are likely to have token payments of £1 or so paid to them before they are willing to discuss F+FS.....

need to be confident that the bulk of the debt can be paid with redunanbdancy money (less some of the redundancy i will need to leave on in between jobs)
cheers

itsalongroad

if I have under 16k of savings then I can claim full JSA after my notice period is completed. Whether the redundancy covers a notice period is a moot point

i would receive x weeks per month, and therefore benefits folk could argue I am effectively being paid notice.....apparantly its a GREY area

chevalier

how long have you been on the DMP. Are you doing it yourself or via CCCS/Payplan? If you have been on the plan a while, then they may be more amenable to !!!!!!. BUT take advice if you are having the DMP run for you. Because your DMP provider will have a view on whether now is the time to offer !!!!!!.
good luck
chev

itsalongroad

thanks - nearly a year. CCCS have not really said to much on it, they just stated I must use the correct templated letters...