What to do with my Redundancy money.

worldofemma

worldofemma said:

Hi there,
I forgot to say I’m also have a permanent job as a delivery driver for a supermarket. The current job is giving me a steady income (21 hrs) The job I did before I was furloughed was a home based job making greeting cards. Basically I’m just very conscious of this lump sum and really don’t know what to do. I really don’t want to fritter it away.

Yes, I’ve managed to secure another job, so that’s a great safety net. My gut instinct tells me I should clear at least one big credit card that’s built up (£4487) 
ive been paying the minimum which is completely pointless and I’m just treading water. If I get rid of this one, I’ll free up some more cash which I can then start to save to build up some reserve too. My husband is self employed and is also currently working. I’m going to sit down and have a good read of the paperwork when it turns up. I’ve also done the government’s redundancy calculation and my offer is substantially more than that, so I think That should be ok. 

sharpe106

Without the SOA. If you have enough money to cover your living costs without the redundancy payment and have a emergency fund. The put the rest of the payment towards the debt. The car will be paid of some so probably no saving paying it of early by the time you include any fees. 

zippygeorgeandben

My sister has recently been made redundant but always lives in debt (paying % on all CCs etc) so she sent me alot of her money and I 'pay' her at the end of each month the salary she was on.  That way she says that she doesn't see the money in her bank, and isn't tempted to spend it.  You talk good sense but obviously like a spend or 2, hence the debt so could you really be strict on yourself? 

cdwuk2003

Looking for advice , i was made redundant and had a 14k pay out , at the age of 55 finding another job looks more difficult specially at this time, i decided the best thing was to pay off an outstanding 11k bank loan and 2k credit card leaving me debt free, however it seems to have back fired as universal credit deem that i made my self capital less deliberatly. and refuse to make any Universal  payment also looking at the 14k as a yeild , so not just this month but months to come 
Any advise on how to approach this would be gratefull
Carl 

sammyjammy

cdwuk2003 said:

Looking for advice , i was made redundant and had a 14k pay out , at the age of 55 finding another job looks more difficult specially at this time, i decided the best thing was to pay off an outstanding 11k bank loan and 2k credit card leaving me debt free, however it seems to have back fired as universal credit deem that i made my self capital less deliberatly. and refuse to make any Universal  payment also looking at the 14k as a yeild , so not just this month but months to come 
Any advise on how to approach this would be gratefull
Carl 

You really should post this on the Benefits board but you are allowed to repay debt when on universal Credit, if you post on benefits someone will point you in the direction of the guidance.

Andyjflet

I would be paying off any debts I could, ensuring first and foremost I had an emergency fund set up. Follow Dave Ramsey and his baby steps on you tube and podcast and youll see the method.