advide needed on redundancy and debt :(

mejaa

redundancy is ineviatable for my husband- possibly getting notice in july, maybe sooner
we would be ok in the 12weeks notice period and also would live of his redundcay sensibly which would last @ 13 weeks if he was to get minimum redundancy
my question is what would happen to our debt? of course i know it will need paying but there would be no way on this earth we could afford to pay out £400 a month like we are now.
we dont own our house but are hoping to get a mortgage in future. im worried that we will end up with bad credit and will never get a mortgage....
any advice?
thanks

mejaa

anyone ??

cats2012

mejaa wrote: »

redundancy is ineviatable for my husband- possibly getting notice in july, maybe sooner
we would be ok in the 12weeks notice period and also would live of his redundcay sensibly which would last @ 13 weeks if he was to get minimum redundancy
my question is what would happen to our debt? of course i know it will need paying but there would be no way on this earth we could afford to pay out £400 a month like we are now.
we dont own our house but are hoping to get a mortgage in future. im worried that we will end up with bad credit and will never get a mortgage....
any advice?
thanks

If you speak to your creditors some of them may well allow you to go onto a payment plan and help cut your outgoings down from £400 a month to something more manageable. This is assuming your debts are not growing i.e. you're paying off a set about, not still adding to it.

My worry for you re:mortgage is that most creditors will require payments to stay above a certain level in order for them to not default your account - the default is what would affect you getting a mortgage more than having to go onto payment plans and without knowing what you will be able to afford I can't know whether you will fit into this.

My tips would be (others will have better ones I'm sure)
- Talk to your creditors & find out what they can offer and EXACTLY how it would affect your credit file. Then you can way up then pros/cons

- Find out what benefits you will be eligible for, I'm guessing at least some, and obviously get your husband looking for work (though I know it's easier said than done at the moment)

- Look through your incomings and outgoings in a lot of detail and see where you can cut back, there are some great tips on here

DS4215

Sit down with your recent bank statements and work out a SOA with all of your income and outgoings - both now and projected after redundancy. You might be able to use any redundancy payment to settle some of the debts with a full & final offer - particularly if they know that they are going to be receiving token payments from July onwards.

If you post the SOA on here, people will be able to advise you on ways to cut back. Hopefully to a level you can afford on benefits.

mejaa

it might be worth mentioning that i also work but only part time. we would poss get more tax credits ...
what would happen if we went on a dmp? would it affect our credit rating?

RAS

Yes a DMP affects your credit rating for at least 6 years, depending when the creditors default your accounts.

Check you finances on www.turn2us.org.uk for the period after his notice and after the redundancy money runs out.