Don't Panic!

edited 7 January 2015 at 4:02PM in Debt free diaries
544 replies 35.2K views


  • October_StarterOctober_Starter Forumite
    664 Posts
    Hello Diary and Diary Readers :wave:

    This entry is mostly for me, to help me think. I know I have spoken before about my job situation and my options. I have also said how I am burying my head in the sand and trying not to.

    It turns out I have less time than I thought and things are becoming increasingly worrying. There are many things to think about and many things that are bothering me. The number one thing at the moment is the choices. I can't make my mind up which is causing anxiety and stress. If I make my choice and I am certain that is what I want to do then things will be better all round.

    So I am writing in my diary to try to help me work out the benefits of all my options, financially, emotionally and sensibly.

    Basic Figures - Monthly outgoings, not including food, petrol and social spending = £983.94

    Current Basic Salary without Overtime = £1202.00
    Average Overtime per month = 37 @ £12.98 per hour, increasing wage to £1529.00

    Option 1 - Redundancy

    I will be given notice on December 11th with 4 weeks notice. My redundancy will be anything from £1239.00 - £1406.00. This will be a tax free lump sum.

    I will have December's pay and some of January. Leaving me with just enough to cover me until the end of January. After that I will be relying on my Redundancy and small emergency fund. This could help me manage for another two months if I am living very frugally.

    My OH will pay the rent of £430.00 a month if I am out of work and is willing to pay half if I can only get part time work. This will extend my time to job search.

    This option is attractive as the company is horrible. The job is stressful and I could potentially find a better job quickly and get a nice lump sum for debt repayments/savings.

    Option 2 - Promotion

    This will be a mobile role. I will get a company car, laptop and mobile. I won't be able to get overtime. I will have a region that spans 232 miles from one side of the country to the other. However, I will get a guaranteed 22000 a year and it works out at £1493.00 per month after tax. It is a promotion, so a step up in my career. I can look for other jobs in the meantime and possibly apply for higher jobs due to the promotion. It will be difficult and time consuming.

    Option 3 - Drop to a lower level

    I could drop to a £6.86 per hour with overtime. I am not guaranteed hours and could potentially not have a position. Less responsibility though and no travel. I also worked out that if I got full time hours and did my usual average overtime, I would get £1263.00 per month. None of this is guaranteed though and they are being very cagey about available hours..

    So I dont know... 3 options, all with pros and cons. Do I go with financial security or do I take a risk or do I try and survive on a minimal wage?

    Just need to keep thinking and keep job hunting. I know ideally I would like option 1 with a job to go to in another company.

    I will keep thinking..

    October xx

    PS. Thanks PP, I will stick to mfp.
  • please-let-me-be-luckyplease-let-me-be-lucky Forumite
    10.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You alone can make the decision which is best for you.

    If I was faced with those 3 options, I would only really consider options 1 and 2. You could get the wages of option 3 somewhere like Asda, and you would be away from all the uncertainty.

    Again though, you know what is best for you.

    And don't forget all the tricks of the trade you have learnt on the Make £10 per day thread. You could really boost your earnings while you look for alternative work if you go for option 1 Xx
    Debts @ LBM £23,729.31. Debts @ 08/04/2016 £0 :j
    Best win so far - holiday to Florida
  • BubblesmumBubblesmum Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic

    Having been through redundancy I appreciate how difficult this time is.... I cam out the other side much better for saying au revoir

    I have also helped clients in this situation.....and I would ask them.....

    1. Option 1 - Do you want to work for this company? If working full time including overtime... Have you the energy to apply for a new role... Which takes time..... So would taking redundancy give you the space to look at your options .... Would you do anything if th "right" job hasn't come along? Would you look at benefits if need be?

    2. Do you want to work for this company? Do you want to do all this driving - what impact will this have on your home life. Have they told you how much extra tax you would pay - as a car is a taxable benefit in kind? If you only saw this as a stop gap, truthfully would you have time and energy to find another job, would you be stuck there ..... Overall do you need/want the safety net of being employed v a stressful job?

    3. What is your ego saying about working with colleagues at a job much lower than your capabilities ? I know you said something about - if you took this there was no redundancy, that's because there are strict employment/tax laws re redundancy so its not the companies doing. You are effectively still employed and have not left.

    In my case I made to apply for a role in my banding before redundancy was given, I didn't get the role so the choice was taken away.

    If you can't decide - what about going for the promotional job, if you are not offered it, then taken redundancy.?

    Hope this helps

    mrs B

    Ps I use MFP and would recommend it
    As a dear MSE friend says “keep plodding” or
    What does the saying say.... When life hands you lemons, crack open the Gin......
    Or as my Mum would instil, brush yourself down, tomorrow is another day or
    Fake it, to you Make It
  • October_StarterOctober_Starter Forumite
    664 Posts
    Hello Diary and Diary Reader! :j

    Thanks Lucky and Bubblesmum. You have given me a lot more to think about. I know what I would like to do but I am honestly terrified. I would like to take redundancy and leave the company.

    I have never been out of work since I got my first job at 17. I also have never had so many outgoings. I dont have the safety net of benefits. (The government class my house as £70000 savings, even though it's not paid for). I think I would still be entitled to JSA but think that is only £60.00 per week. This wouldn't even cover my mortgage repayment.

    My OH is willing to help with food and rent. This would leave me with £235.30 a month to find. Obviously petrol, food etc would be less as I would be home so I wouldn't be buying food out and I would make my OH's breakfast/lunch/dinner. I would also have more energy to make better dinners at home with the food we have. My OH pointed out that I could go for a part time job. Anything to add income. I also feel like it is a lot to expect of my OH. We will have been together 6 months in 8 days. That's not long to then become financially dependant on him. I feel very vulnerable.

    I keep crunching numbers. If I got a 20hr a week job at basic wage (£6.50/hr), I would take home £563 a month and not pay any tax or NI. This would cover my mortgage, phone, car insurance etc and my OH would have to pay the rent. It would leave me with £8.00 plus whatever my mum gives me and then obviously anything else I get from selling things on e b of a.

    It all just seems so risky. Blissful to have some time at home though and some time to actually look after my OH and myself properly.

    I think in someways Bubblesmum has the best idea, apply for the promotion and if I dont get it, go for redundancy. One of my other colleagues also suggested that I say I will drop down to a lower level if they guarantee a full time contract.

    Going to spend my days off looking at job vacancies/wages etc. Then work from there.

    The last few days have been difficult. Not feeling well, getting a lot of tummy pain and tiredness, no matter how much sleep I get. I am training a new starter while working my usual hours which also makes things more difficult. OH isnt feeling good either. Wondering if we are coming down with something.

    Ahh well.. Will keep plodding :)

    October xx
  • Upsidedown_BearUpsidedown_Bear Forumite
    18.3K Posts
    I have never been out of work since I got my first job at 17. I also have never had so many outgoings. I dont have the safety net of benefits. (The government class my house as £70000 savings, even though it's not paid for). I think I would still be entitled to JSA but think that is only £60.00 per week. This wouldn't even cover my mortgage repayment.
    They really don't.
    The value of a property you own (mortgaged or outright) and live in as your primary residence is not counted for benefit purposes.

    If you want to know about JSA have a look here :)

    General benefit advice here:
  • October_StarterOctober_Starter Forumite
    664 Posts
    Oh I did a check and they said I wasnt allowed :-S

    Might have to check again. It might be that it's because I dont live in it. I will check the JSA bit. Thanks Bear -hugs-

    October xx
  • Upsidedown_BearUpsidedown_Bear Forumite
    18.3K Posts
    Oh I did a check and they said I wasnt allowed :-S

    Might have to check again. It might be that it's because I dont live in it. I will check the JSA bit. Thanks Bear -hugs-

    October xx
    I didn't realise you don't live in it.
    As I said it doesn't count if it's your primary residence and you live in it.

    Hope the JSA link helps though :)
  • October_StarterOctober_Starter Forumite
    664 Posts
    Hellooo everyone :)

    Soooo... sick as a dog at the moment and still working...:mad: On the plus side I have reached my two days off and I am going to go and die in bed!! OH is still a blah too.

    He's worrying me again. He is all for paying the rent and food etc but he is broke this month and has had to borrow £130.00 (from my savings) just to cover some bills and not go overdrawn, then signed himself up to a club thing tonight that's going to cost £11.00. So I asked him how he was going to pay for that when he had just borrowed another £30.00 from me to stop his account going overdrawn. He is using his credit card :mad:. He has assured me that he is paying off his debt to me and ALL of his credit card on Friday when he gets paid. I dont want to be the nagging girlfriend but as I have always said to him. If his choices effect me then I have a right to complain/be concerned etc. He is telling me he can support both of us without getting into debt himself but if he can't even control his spending now (he has very few outgoings) how is he going to manage when he has big bills to pay.. :(

    Last week was a major overspend week :o Mostly due to DM visit, feeling poorly and being too lazy to get up and make food etc. Going to total it all up.. £93.46!!! Thats a massive £41.62 over budget :( Next couple of days, I am going to try very hard to make NSDs. Can hopefully get back on track and stop spending like a loon! My first week was so good with £23.28 left over from my budget, all gone now and need to scrape back another £18.34 to fix the overspend and stay within budget overall for the month. I can do it!! Need petrol though!! ARGHHH!!! :rotfl:

    My B'clays app has finally put back my loan balance so I can update my signature with how much I have paid off so far. It doesn't seem much but I feel a little less pressure everytime I see it drop.

    I was talking to my DM today about the whole job situation and she said that I should just forget about it for the next couple of days and concentrate on getting better. I think I agree with her but I am definitely going to look at supermarket websites etc and see if there are positions available. I think it will ease my worries if I can see some possible jobs to apply for.

    Oh Bear.. Thanks for the links. I looked on the JSA website and it uses the same benefits calculator as Housing Benefit. However, there was a little clause about my house not being counted as savings if I have a pension credit claiming parent living in it!! There may be hope yet! Think the best thing to do would be to go to the council themselves and see what they say.

    That's all for now. Have a lovely evening everyone :)

    October xx
  • monzmonz Forumite
    4.1K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Stoptober Survivor
    I am same with you I love how i can see my loan dropping every time I pay extra! x
    Debt (1/9/14) £6,702.11 Debt free (30/11/2016) mortgage port- £70,077.82 and mortgage £126,517.39 o/s currently
    Debt - £17,190.83 (29/7/22) now (19/8/22) £16,688.80
  • Take a big breath, look after yourself and focus on getting better. The rest will come, but will be easier to move towards a decision with a bit of space and a clearer head xx
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