Advice please re paying off creditors

susiepink

I'm £43,000 in debt and I've just had a baby and wasn't planning on going back to work. My only way out seemed bankruptcy but today I have been made redundant, I think my payment is going to around £15,000 +. My biggest debt is a loan for £11,000 and is covered by redundancy - phew. Should I try and do final settlements?

Thank you

warburtonrichard

If you've been made redundant, then now's the time to try to activate any kind of payment protection insurances, so yes, whatever you can do to get your big loan, credit cards, other loans being paid by insurance companies, then work it.

Your redundancy payment is your right under your employment contract and if you've insured your debts, you should claim under the insurances rather thank think about paying them off; PPI is a big fat waste of money most of the time, so you should get your moneys worth if you can.

Anything you don't have insured, yes, trying to get settlement could be a good route for you.

Don't forget; you'll be no better off if you spend more than you bring in; so attack your outgoings as best you can!

Good luck

Warby

susiepink

thank you. Unfortunately all my cards were covered originally but I cancelled this about a year ago - oh well. Am I allowed to put aside some of my redundancy, say about £2,000 or £3,000?

thank you