Being laid off work can have a devastating effect on one’s personal financial situation. It can also place a family’s finances in a precarious position making it difficult for an otherwise financially competent couple to manage their financial affairs.
Ideally, laid off employees should opt for a redundancy package where this is offered. These packages are linked to the number of years an employee has been in service. It is important to know when the employee will receive the severance pay and how much it amounts to.
It is critical that a person notify their credit providers one this occurs. Some credit agreements have a built in life, redundancy and disability protection which will cover one’s debt for a predetermined period of time. Where a dispute is lodged with such an insurance provider, it is important to obtain records of the dispute in writing. This proof can become useful when negotiating with your credit providers.
Be sure to submit you unemployment insurance application timeously effectively giving you a portion of your income for six months. This affords you some breathing room to seek new employment opportunities.
Be sure to draw up a new monthly budget which will dictate how much you can afford to spend on your day to day activities. This can also inform where you will be able to cut costs or defer payments thus making the money you do have go further.
Some pension funds will enable one to access one’s cash where a person has been made redundant. Be sure to engage a professional who will advise and assist you to ensure you avoid the pitfalls of drawing off your pension fund early.
Debt counselling should be a serious consideration where single income households cannot cope with their debts.
Do You Need To Explore Your Debt Counselling Options?
Debt-911 will guide and assist clients through each step in the process including representation in court if required.
If you find yourself thinking about how you are going to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and one of our trained debt counsellors will call you to assess your personal situation and give you free advice.