Spectre of Redundancy

RichL74

Boom times are great aren't they? I've had it good at my work place for the last 16 years however, things have changed, we are over staffed 3-1 and there is a likelihood of redundancy on the horizon.

Whilst all my credit cards are paid off in full if and when I use them, I am worried about the unsecured loan of £10,000 plus interest that I have 4 years left to pay - when I took it out, there were no job risks.

So, to the loan.

I fully expect Nationwide to take me to the cleaners, but let's just say I don't secure a job straight away and I have to suffer job seekers allowance or whatever it is called, what are they likely to do? I understand I will default, but will NW expect my dole money to be paid to them every 2 weeks or however often it is?

I see programmes like cant pay we'll take it away and it scares the bejesus out of me.

The simple truth is if I end up on job seekers allowance, I wont be able to pay - I understand I am screwed but what is the worst that can happen on an unsecured loan?

I rent, I don't have £10,000 of goods to sell, I don't drive so have no car, I have the laptop worth £500, small dent on £10,000, even if I sell everything I have and sleep on the floor, I'll still owe NW money.

iolanthe07

Sorry to hear about your possible impending redundancy. After 16 years, won't you be entitled to any redundancy lump sum? If you are made redundant, write to Nationwide explaining the circumstances and ask them to suspend interest. It is much better to keep lenders informed.

Arleen

Start saving!

You should be doing it anyway, but as you now fear redundancy, there is no excuse to not slash your expenses and save as much as possible. Posting an SOA on debt free wannabe will go a long way, as folk there can be very helpful in figuring out how to save a bunch every month.

There is little to do now besides the above and maybe starting to look around for a new job - nothing bad can come from after-hours job hunting. You may find a better offer, or at the very least get a realistic prospect of how the market looks like. If the redundancy happens, as mentioned above contact NW right away and keep them in the loop, as that will do wonders for you.

RichL74

I have about £3000 in savings which I can pay toward the loan and I will get some redundancy money however its catch 22. When I sign on, I will have to declare my savings and redundancy which means I run the risk of getting no dole money if they think I have enough savings / redundancy - which of course, NW will be expecting - so I could end up with nothing to live on.

Dead worried about that.

Oh, as an aside, I don't have a lot of outgoings, the usual gas, electric etc. Nothing major, pay as you go phone, basic Sky / internet (which would have to go anyway)

badmemory

The first 6 months of JSA is not dependent on either savings or redundancy money. It is contribution based. You can sign on on-line initially, do that the day you finish work.

Redundancy is a week per year, untaxed, unless you are older & so get more per year. Between the 2 that should give you 6 months to find another job even without many economies.

I hope this relieves a few of your worries.

Arleen

How many months of living is 3000 quid for you (all costs considered)? And how long do you think it will take you to find a job in case of this one going away?

Even if you will lose your job, and inform NatWest about it, as long as you will keep on with the payments there should be no problem. So if you have enough of savings to tie you through the unemployment period, there should be nothing to worry about - hence why I emphasised that point strongly.

Shakin_Steve

RichL74 wrote: »

Boom times are great aren't they? I've had it good at my work place for the last 16 years however, things have changed, we are over staffed 3-1 and there is a likelihood of redundancy on the horizon.

Whilst all my credit cards are paid off in full if and when I use them, I am worried about the unsecured loan of £10,000 plus interest that I have 4 years left to pay - when I took it out, there were no job risks.

So, to the loan.

I fully expect Nationwide to take me to the cleaners, but let's just say I don't secure a job straight away and I have to suffer job seekers allowance or whatever it is called, what are they likely to do? I understand I will default, but will NW expect my dole money to be paid to them every 2 weeks or however often it is?

I see programmes like cant pay we'll take it away and it scares the bejesus out of me.

The simple truth is if I end up on job seekers allowance, I wont be able to pay - I understand I am screwed but what is the worst that can happen on an unsecured loan?

I rent, I don't have £10,000 of goods to sell, I don't drive so have no car, I have the laptop worth £500, small dent on £10,000, even if I sell everything I have and sleep on the floor, I'll still owe NW money.

You may want to have a look at this:

http://www.redundancyexpert.co.uk/your-savings-benefits.html

cj1974cr

My advice don't panic,

I work for a bank , so here are some simple tips , household bills , rent and travel to work all priorities ahead of unsecured lenders - so pay all you bills and rent first and don't forget to eat.

Keep the 3k savings , just in case of an emergency , but ask nationwide for payment holiday , don't forget to ask what will happen with interest on loan.

Redundancy money is tax free up to 30k, and don't delay signing on if that day comes.

Hope this helps but don't panic and if all else fails speak with Step Change they can help and they are a charity, they don't charge you and can also help you with nationwide if they become problematic.

RichL74

Thanks all for your tips and advice, it is appreciated.

bris

16 years of employment might see the redundancy cover this dept., but are you strong enough to pay this debt or will the temptation to spend it and put the debt to the back burner be to great?

RichL74

I need to see how quicky I gain employment.