Facing redundancy? Steps to take if you’re worried about debt

By Mr Bankruptcy

30th September 2020

Being made redundant is a situation many people may soon be facing. Suddenly losing your job throws all sorts of challenges and uncertainty in your path even when you think your life is in order. It’s even more difficult if you’re already in debt, when your debt can become unmanageable. The following steps can help you to take control of your financial situation from the start and prevent you from feeling overwhelmed.

Know your rights

Be sure you know your redundancy rights. Organisations such as ACAS and Citizens Advice (CAB) can provide you with information on redundancy to help you understand what you may be due.

You may also be entitled to benefits including Universal Credit. Start your applications as soon as you can because there will be a delay before you receive anything.

Check your insurance

Revisit your insurance policies to see whether you have income protection. It may be part of your mortgage deal or you may have a separate income protection insurance.

Assess your debts and outgoings

Going through debts and expenditure is going to feel daunting but having a clear understanding of your debts and expenditure will arm you for moving forward.

List your debts and understand which are priority debts to be paid first (take a look at my article Do you know how to prioritise debt? For more details). It may be tempting to use a redundancy lump sum to reduce your debts, but focus on those debts that need paying first and consider keeping some back for future bills while you secure a regular income.

If you have a debt management plan already in place, speak to the provider to see what can be done to adjust the plan to reflect your reduced income. Avoid using credit cards and unauthorised overdrafts to pay other debts because these are only short-term solutions.

Reset your budget

Review your budget to ensure your outgoings can be supported by your income. Look for opportunities to make cuts be reassessing what’s really essential and what isn’t.

Ask for help

With so many people under threat of losing their jobs because of the effect of Coronavirus, there’s been a move by banks and many businesses to support their customers. Talk to your creditors to see how they can help you. Whether it’s support with your wellbeing or advice on how to manage your debt, take action sooner rather than later and avoid the eight common mistakes to make when in debt.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who find themselves facing unmanageable debt or involved in civil or commercial disputes.

Our services include:

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.

What you should be thinking about before applying for a payday loan

By Mr Bankruptcy

22nd September 2020

At a time when many people are feeling financial pressure it can be tempting to go for a quick fix to a short-term cash flow problem, but are payday loans the best option?

Why would you consider a payday loan?

Payday loans are known for being expensive in the long term but in an emergency when only a short-term loan is needed to tide you over, they can be very useful:

What about the potential pitfalls?

Much of the bad press that has surrounded payday loans has centred around how costs can spiral if payments are missed, putting financially vulnerable people in an even worse position. Therefore, before considering a payday loan it’s important to do the following:

The Money Advice Services states that for payday loans, over a year, the average annual percentage interest rate of charge (APR) could be up to 1,500% compared to 22.8% APR for a typical credit card*.  This highlights the challenge for some payday loan customers. If you have any concerns that you may not be able make the agreed repayments you should consider cheaper options.

If you find yourself regularly relying on short-term loans to manage cash shortfalls, it is time to reassess your budget and potentially seek advice to help address your debts to prevent them from increasing further.

James Rosa Associates

We are a team of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who find themselves in the position of facing unmanageable debt or are involved in civil or commercial disputes. Our services include:

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.

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