I was made redundant last month and I’ve already started to fall behind on my bills. I’m looking for work, but is there anything else I can do so I don’t end up in debt?
There are steps you can take to avoid your bills building up.
First, check you’ve been paid any redundancy pay you’re entitled to. You might get statutory redundancy pay and possibly contractual redundancy pay if you’ve been in the job for 2 years or more.
This should be shown on your final payslip – if it’s not there, contact your employer.
Then look at ways to boost your income. See if you’re eligible for benefits like Jobseeker’s Allowance with Citizens Advice’s benefits calculator. You should also check if you can make savings on your bills, for example by switching to a cheaper gas or electricity deal.
Now look at how much money you have coming in and compare it to your essential spending. Priority bills include rent or mortgage and council tax, and should be paid first – there can be serious consequences for missing payments.
If you own your home, contact your mortgage lender to see if you can negotiate on your monthly repayment. You could also see if your credit card provider will negotiate on repayment amounts to give you some breathing space.
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Check out our Debts and Money online advice on Debt and Money Payday Loans, and Work Leaving A Job. Or give us a call. Our trained advisers can help you take the right next steps.