Really need some advice regarding finances

evt17

I'm 50 and live alone, with a mortgage. I was off work 7 months last year and 2 months this year - I returned to work and after one week was called into a meeting and told they had to let me go, as my long-term sickness was obviously putting more work onto others. I was offered £20k and just didn't have the strength in me to fight to keep my job.

So I'm now unemployed and at my age I know it will be hard to find another job, but I am looking.

I was only getting SSP when I was off sick, so struggled with finances. I got in touch with a debt agency for help and wrote to my credit card people and have arranged to pay only a small amount until I get sorted.

I know it would be wise to pay off these credit card debts with my payout - the debts are about £10k. Or would it be better to stick to the arrangement I have come with them (ie pay a small amount each month) and when I get another job and know I have an income coming in, then pay them off? I know £20k sounds like a lot of money, but if I don't get another job obviously I will be living off that and it won't last long.

I want to pay my debts off, but then again I need the security of the money to live off whilst I am looking for work - which could take months.

Also, with £20k would I be entitled to claim any benefits?

Sorry for the long post, but I am really worried and stressed out. Have no-one to help me out and only myself to rely on. And I'm not financially savvy at all.

sleepless_saver

evt17 wrote: »

I'm 50 and live alone, with a mortgage. I was off work 7 months last year and 2 months this year - I returned to work and after one week was called into a meeting and told they had to let me go, as my long-term sickness was obviously putting more work onto others. I was offered £20k and just didn't have the strength in me to fight to keep my job.

So I'm now unemployed and at my age I know it will be hard to find another job, but I am looking.

I was only getting SSP when I was off sick, so struggled with finances. I got in touch with a debt agency for help and wrote to my credit card people and have arranged to pay only a small amount until I get sorted.

I know it would be wise to pay off these credit card debts with my payout - the debts are about £10k. Or would it be better to stick to the arrangement I have come with them (ie pay a small amount each month) and when I get another job and know I have an income coming in, then pay them off? I know £20k sounds like a lot of money, but if I don't get another job obviously I will be living off that and it won't last long.

I want to pay my debts off, but then again I need the security of the money to live off whilst I am looking for work - which could take months.

Also, with £20k would I be entitled to claim any benefits?

Sorry for the long post, but I am really worried and stressed out. Have no-one to help me out and only myself to rely on. And I'm not financially savvy at all.

Depending on your national insurance contribution record, you might be entitled to contribution based jobseekers allowance which lasts 6 months. You can claim online.

If you have care and/or mobility needs which are likely to last, then you might be entitled to disability living allowance.

Any other benefits would be affected by your £20k. Don't use it to pay off your credit card debt! Your priority is keeping up with your mortgage and having enough to pay for day to day living costs. Once your savings are below £16k you can claim council tax benefit and, once the contribution based JSA runs out, income related JSA (with luck you will already be back in work before you get to that point). If you use the £20 k to pay off your debts before you have to, then DWP will treat you as if you still had the money and you would not get income related benefits.

You can get advice on the benefits and the debts from CAB if you get stuck.

getmore4less

How long had you worked there

When did they pay you off

did they use a comprimise agreement

approx how many weeks pay is £20k

it may be worth looking at a claim if the payoff was on the low side.

Contributions JSA is the starting point for generating some income if you are looking for work.

For debt management you will be better posting on debtfreewanabee