Being made Rendundant and No PPI on Loan

bainy51

Hi guys/girls,

First post so be gentle please lol. I will be made redundant as of the 31st of this month, although I will be paid at the end of September so I think my redundancy officially starts from the 31st of September. I have a few outgoings but the largest is my loan which is £265 a month. I have no PPI on the loan at this point, I have looked into different policies and they all say if you are being made redundant or at risk of redudancy at the point of taking the policy out it will be void. Is there anything I can do to cover my loan? Or am too late?

Thanks,

John

Tixy

Hi John

You will be too late to take out any policy to cover your loan. No firm would pay out when you are being made redundant so quickly afterwards.

You probably have a few options depending on your loan T&Cs and your other circumstances, how long until you find another job etc.

If you feel it is likely you will find employment fairly soon you could possibly look to see if you can take a repayment holiday from your loan, a few lenders allow this.
If this is not an option but you still expect to be able to find some sort of income then how many months could you survive on your redundancy payout paying only essentials?
If you are not going to be able to keep up with repayments and feel you will struggle to find new employment then if this is your only debt you could offer reduced payments, explaining that you have been made redundant (this will affect your credit file long term).
If you have other debts as well as this then you might want to conisder contacting one of the debt charities for some advice, perhaps considering a debt managment plan.

As you still have a couple of pay days left before you are made redundant it would probably be a good idea to start looking at what you can reduce/cut back on now to make it easier to manage when you are redundant.

DS4215

Write to you lender now to tell them what the situation is, offering a £1 token payment and tell them that you will resume payments as soon as you can find alternative employment. Speak to CCCS or similar to discuss the situation also.

At least you have a little notice - I was called into a meeting at a hotel one day and never went back to the office - although I did get a decent payoff and was back in work within 6 weeks I am still earning less than I was 5 years later.

bainy51

Thank you both for your advice. I have a credit card debt of £1500, I am going to pay that off with my redundacy money. That leaves me with only the loan debt to pay and enough money left to cover my outgoings for two months max. I am looking for a job and will basically work anywhere to make enough money to try and cover my outgoings. So far I have been unsuccessful in finding a new job but I will keep trying. I have to the end of October preferably September to find something, and that should keep my head above water. Failing that I will contact the loan company and see if they will offer me a payment break.

Thanks again

John

mrsb83_2

I would be very wary of spending part of your redundancy money on debt repayments if you don't have another job.

Consider using it for minimum repayments whilst you job hunt so that you don't end up defaulting or having hassle from your loan company. Anything left over can go to the CC once you're back in employment.

jellybean39

How much do you have left on the loan? would it not be better to pay off that (if you had enough to) then you could pay minimum payments until you found another job? dont know if that would be advisable as if you didnt find a job soon your redundancy payment (i think not 100% sure) wil affect any jsa etc that you may be entitled to.
good luck with the job hunting!!

bainy51

I have £10,000 left on the loan so £1,500 won't clear it. I will take the advice about not clearing the credit card. I will get a new credit card with 0% balance transfer and transfer the balance to this and make the minimum payments until I am back in employment.

Again Thanks for the advice,

John