How best to handle Redundancy

M

Mary3

Guest
I have just been made redundant. Thanks to other posts I have a good idea of things I need to do but thought I 'd post my situation to gain some opinions on what should I do.

I have one child receive 200 per month maintenance
Car with tax of about 500 p/a and insurance 300 p/a
Credit Card with 6,000 balance

Redundancy Payment:
45,000

Current Outgoings Per Month
Mortgage 1072 (2nd year, 28 to go!, fixed @5.5% for next three years)
Loan 324 (2nd year 9,000 balance)
VHI 101.67 Plan b Options
Life and Serious Illness cover 85
House Insurance 46
Oil 100
Child's extra cirr. activities 70


Don't think I'll manage all on job seekers!


Thinking of reducing VHI and life cover, paying off loan and credit card.
Considering changing car to diesel as if do get another job live in remote area and long commute a possiblity.
A few jobs in house which need doing which will cost about 5,000
Is it worth paying for a course to get a qualification.

Maybe i'am best to lodge money , apply for benifits and use redundancy money to meet to balance until I get another job.

Sorry for long post just very confused and worried.
 
Hi,

I was in the similar situation a year ago, unfortunately I haven't had any luck getting a job since.
My jobseekers benefit is about up. I sold my car , got a less expensive one as live in a remote area too. I couldnt afford the vhi any more, got rid of the credit card too.
Had remainder of my redundancy payment in a high interest deposit a/c, but going to have to live on it now, as the Jobseekers allowance is means tested.
 
Hi Sorry to hear about your sutuation
I was made redundant myself last week

I would suggest the following
1) Use redundancy to Pay off credit card and loan balances as they are costing you more than you can earn viai interest on the redundancy ( Max 4.75 gross with anglo on demand)

2) I would suggest talking to lender about your mortgage

3 )I woud eliminate all unneccessary expenditure if you have any

4) not sure i woud spend money on the house unless not spending it is costing you in terms of extra heating costs etc.

5) Personally i think changing car is not worth it given the transactions costs /margins uness you have a very expensive one
Anyway good luck with the job search
 
Here's how I would handle it, others might do it differently:

I would pay off the loan and credit card straight away. That leaves you with 30k from your redundancy money.

I would take six months worth of mortgage payments from this money and set that aside as a prepayment. That leaves you with a safety net of more than €23k, put that on deposit. You now have six months breathing space to find a job without having to worry about your mortgage.

I wouldn't bother changing your car at all. You are bound to lose money in the process. I would forget about the home improvements until you find a new job, unless they are absolutely necessary.

I would maintain the VHI cover. Others might advise better on the serious illness/life cover, but I'd maintain that also. The €200 a month maintenance takes care of both them.

Your oil costs should start to come down in coming months.

You should manage to scrape by on JS Benefit of just over €800 (plus your children's allowance) for your living costs, if you cut out luxuries.

Apply for mortgage interest supplement straight away.

€200 seems low for child maintenance. Can the child's other parent not up the payment to you?

Good luck in the job hunt.....
 
cancel your vhi cover and apply straight away for a medical card as you would be entitled to. takes about 4 weeks to come through. made redundant my self last week but luckly dont have a mortgage just yet.
 
Regarding cancelling vhi . not sure about that as what you lose if it cover lapses for more than 13 weeks (i think) is cover for pre exisitng illnesses for 2 years. I would hold off and see how long you are unemployed first .Regarding the "options" bit i woudl just see if are you claiming more than paying ....if noty cancel it .personally i consider it a gimmick
 
Please please please call the VHI and they will give you 12 mths free if you tell them you have been made redundant, they will offer you different options first but if you tell them you cant afford anything at all they will hold your waiting periods for 12 mths, this means you can start to pay them again at any time in the 12 months if A) you are back working or B) if you need to go to hospital. No penalties for non payment!! Trust them they will help.
 
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