For several individuals, the idea of redundancy can be daunting as it entails reduced in income. However, when you are already struggling to pay off your obligations each month and nor facing redundancy, you might be on the verge of depression and anxiety.
When you’re being made redundant, your initial thought is to look for a new job. However, along with this, you need to do something to prevent further damage to your finance.
Know Your Rights
When undergoing the process, you have to be aware of your rights and available alternatives. There are processes in place that your employer needs to abide. These cover things like selecting workers for redundancy, preparing the necessary announcement period. You are also covered with the redundancy package entitlements.
Depending on the circumstances, your employer may allow voluntary redundancy or new skill training or retraining for another position. When this happens, your employer will ask you to sign a contract concerning a redundancy package. This could include additional pay or a diminished notice period.
Scrutinizing Your Finances
Scrutinizing your financial state will assist you to plan a budget that accommodates your essential living costs while finding means to resolve your situation.
The downside is when you rely on credit month after month or when you have arrears piled up. This implies insufficient budget when your income is reduced. If you are in this position, do not hesitate to contact us for debt help and advice.
Look for Useful Ways to Reduce Spending
You can try to find means on where you can cut on your budget to reduce spending. You can refer to our guide on how useful tips to reduce your spending.
Find Means to Increase Your Income
Check whether you can qualify for benefits or any entitlements. Apart from this, you can consider a second job or getting some side hustles to increase your income.
Government Mortgage Schemes
Payment Protection Insurance
If you’ve given for payment protection with any of your creditors, check whether you can be eligible to claim it. The insurance will compensate for the monthly payment for you instead.
Will I be made redundant if I have been furloughed?
In recent situations, companies are taking measures to manage the impact of COVID-19 pandemic on the economy. Companies are assisted by the government, making it possible for workers to receive 80% of their wages while on furlough. However, this does not entail that you’re at risks of redundancy.
If you’re facing redundancy while struggling with your debts, you must know your privileges and options. We can help you determine your alternatives and come up with a solution to resolve your circumstances.