Company in administration: time to get payment protection insurance?

newsmonkey

The company I work for has gone into administration. I have not been there long enough to be eligible for statutory redundancy (just payment in lieu of notice and untaken holiday pay).

I have:
a £2k overdraft (0% until next summer) - maxed out
an Egg Money card (£2k limit - 7.9%) - always in credit but probably won't be if I stop being paid!

I also have £3,000 in savings (mostly to pay off the OD). I can't be sure I'll be paid at the end of this month. I have a few freelance bits and bobs on the side - earning nowhere near as much as the full-time job does.

Would now be a wise time to take out payment protection insurance?

immoral_angeluk

I'm guessing that one of the terms of the payment protection insurance is that you have no prior knowledge of anything that could cause you to make a claim, ie redundancy etc. IF you imagine it from the companies point of view it's going to look a bit dodgy if someone decides that they want to take out PPI and then find themselves redundant not long after so they probably wouldn't pay out...

lynzpower

i doubt it.

If you dont have PPI now, then taking it on when you know your company is going into admin will probably negate them paying out, so a bit later really.

Why dont you pay off the OD and live on the rest of the safvings & your income.

If the egg money cards in credit, wouldnt it be prudent to just close this down?

As you wont be getting a payoff, Id start looking for someting else pronto- which IM sure you are

Snaggles

Yes, sorry, I agree with the above - pretty much all of these policies have a condition that says 'any recent or pending changes to your employment may affect your eligibility'. You would just be paying out extra for an insurance policy that you couldn't claim on.

Good luck with finding another job, hope you manage to find something quickly.

Kevicho

With all the clauses in PPI its bad enough getting the g**s to pay out in the first place, and unfortunately they have themselves covered in this situation.

Time to live off your savings im afraid.

Also might be a good time to review your SOA and also any benefits you will be entitled to to pad your income out for a while

A good place to start job hunting is your competitors or suppliers

id personally use your last few working days to job hunt

https://www.reed.co.uk is one good site, im sure people will point out many more

newsmonkey

Thanks to everyone above for the advice. I'll stay clear of the PPI.

I'd quite like to hang onto the 0% overdraft until it expires.. the money's there to pay it off, and I'm disciplined enough to not touch it (it's earning 5 per cent interest) unless it's an absolute emergency.

So that leaves me with about £1,000 until my next paycheque - wherever that may be coming from. I've been living at home since I started work (this summer), so have managed to keep overheads low, but I'm looking to move out and find a flat with partner. The savings were supposed to be the deposit and first month's rent.

My girlfriend says she can easily afford the full rent, but I'd like to be able to pay my fair share. Time to start pounding the freelance trail, I think, until something more permanent comes up.