Possible Redundancy - Debt Advice Seeked

fd1972uk

Hi All,

Whilst I've been involved in consultations before, although that was more general across a larger workforce, I have now been advised that my consultation will be starting and it is between 2 of us as one position is going.

If I lose my job, then I lose my job, but just wondering what my best course of action is with debt.

I do have a bit of debt behind me, and that's where my worry is obviously.

I have a loan which I just took out at the start of the year (Jan/Feb), I have just under £8k of credit card debt (on near 3 year 0%) and I have a car finance plan which still has just under 4 years to run.

I had no knowledge of it arising, so it has caught me out a bit obviously.

I do have a mortgage payment plan which pays around half my mortgage for a certain time, however no other cover plans.

I was wondering if anyone can advise about the success of dealing with these debts, I don't mind possibly reducing these costs maybe coming to some agreement or such, there is the option of going on one of these Debt Management Plans, but not sure how they actually work too well and how that effects me (I guess my credit rating takes a pasting, but not particularly bothered).

I have been in the job close on 22 years, so working out my redundancy not counting possibly notice period paid if not worked it would be around £10k or thereabouts.

If I can tackle those main debts then I'll be happy, I know things will be different, but with these main parts out the way it'd be a bit better to take.

The other guy thinks I'll get the job as if it's down to a scorign matrix then I may get it, but I wonder if it's a financial thing I may be the one to suffer as whilst it'll be cheaper to pay him off, I think due to my length of service I'd be the cheaper option in the long run. But this is obviously just guess work.

Anything you need to know, just please ask, my heads in a bit of a spin.


Thanks


Frank

getmore4less

Cancel everything you can, preserve cash.

12 weeks notice.

Debtfreewanabee board and post a SOA.
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

jlfrs

getmore4less wrote: »

Cancel everything you can, preserve cash.

12 weeks notice.

Debtfreewanabee board and post a SOA.
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

Its sound advice. I had the experience of being laid off in 2008 and it took me nearly 2 years to find work again.
This website helped me to get the best deals on my utilities and what savings I had, plus cutting insurance costs and you know, everyday expenses. Get your financial house in order is my advice first, starting with the things you can alter quickly and easily.

You mention an obligation for a car. If this is a "PCP" or "PCH" then you can do a voluntary termination after 50% of the payment plan has been met and simply hand the car back. You may have to wait for that threshold to be reached but that's one option open to you. If it's on a straight loan then perhaps re-finance to a cheaper product, if possible.

Good that the credit cards are on 0%, keep them that way and pay the minimum.

Apart from anything else, all this activity in providing financial safety nets will prove to be a welcome distraction and perhaps give you the feeling you are doing something pragmatic and positive about your situation. State of mind is all to ensuring you maintain self-esteem and the more confident you are, the better your chances of seeing this difficult period through.

Good luck!