It can be daunting for someone who is made redundant while on a DMP. Losing your job while managing your debt according to the outline of your DMP can make you anxious. However, you have to be aware that DMP is flexible debt relief. This means, finding means to deal with your circumstances wouldn’t be that hard after all.
Steps to Consider when Dealing with Redundancy while on a DMP
There are three easy ways that you can consider if you are being made redundant while on a DMP. These useful steps can help you keep your DMP smooth and on track.
Research on your Rights, Benefits or Entitlements
You might need to do some research to find out more about your rights as the available alternatives on redundancy. You can check our guide on redundancy and benefits for further details.
Review and Analyze Your Budget
When analyzing or reviewing your budget you have to guarantee that your essential living costs are satisfied. This is prior to making any payments on your debts. Though you are certain to have enough sources of income or perhaps a new job, you have to anticipate the possibilities, since things might not go according to what you’ve planed. Having this disposition, you will be cautious in spending and be more frugal towards creating your budget.
In fact, there are things that you can eliminate or cut back on your budget. These are not just in terms of your food, toiletries or cleaning items, but also includes your suppliers or providers of certain services and products.
Complete a Review
Once you are made redundant or under the situation that affects your income, you have to reach out to your DMP provider right away. Since DMP is a flexible debt solution, you can male a new household budget based on the review that you have initially created. This budget will include the payment that you’re making on your DMP. Having this in place will make the payment affordable for you despite your current circumstances.
If you are one of our clients under DMP, do not hesitate to contact us if you’re on the same circumstances so we can modify your DMP according to what you can afford.
We suggest, contacting us if you can’t bear your current payments so we can help you meet your other essential needs. This is way better rather than taking out further credit or loans which will just make the situation worst.
FAQs Associated with Redundancy and DMP
Will I have to surrender redundancy settlement I’m qualified to, to pay my debts?
Any settlement you’re designated to from the redundancy is treated as your income and not your asset. Therefore, you should not give up or surrender your redundancy settlement.
What if I can no longer afford my DMP?
Once you and your DMP provider complete the review, they’ll be able to figure out whether a DMP is still best for your situation. If it’s not, they’ll sure to have alternatives available to resolve your circumstances.
Will my creditors object if I make any changes to my DMP?
Your creditor expects an annual review of your budget when you’re on a DMP. They are aware that a DMP is flexible to accommodate any changes in your circumstances. Your DMP provider will contact your creditors informing them of the changes on your plan.
Besides, it is also possible that some of your creditors may seek further action to recover the debt when your payment is reduced. They can either forward your debt to a debt collection agency or send a notice of default. When this happens, there’s no need to panic for as long as you get in touch with your DMP provider.