Should I take voluntary redundancy to clear huge debt?

Hi Shouldi,

I had almost the same debts ( between myself and my husband) I was made compulsory reduntant in July, it was the best thing ever, I got the money and transferred most of it off all our debts, it was a fantastic feeling.. debt free, I did this with in 1 day....human nature is a funny thing, I felt the longer it was left in my bank the more ideas I would have about how I could spend it.. like a long haul holiday or something LOL.

So I strongly recommend you take it, the cost of falling behind in your loans is too high - i.e. late fees and stuff companies love people to mess up and they add crazy penalties.

One more thing, when I cleared my €6000 credit card bill I requesed mbna to reduce my limit to €1000 which they did straight away, this is to prevent myself from getting into to trouble again, I would have cancelled the card except in a recession, I would hardly get a new card - being unemployed that is.

Best of luck with what you decide.

Blueeyes.
 
I would definitely take the VR.

You take home 1,800 per month you said... this is only 21,600 per year, so your redundancy is nearly two years wages.

If you factor in 9,000 or so Social Welfare per year, then you're down less, and if you get another job you'll be laughing. How much interest do you pay per year?.. you'll save this too...

The one disadvantage is that you may not get more work in your industry, but you should be able to get a job paying 400 to 500 per week eventually..
 
As an outsider looking in, this is a no brainer to me. Take the VR. Pay off your debts. Wise up. Have a short holiday and start anew. You'll have learned a great lesson and by using your 'get out of jail card', you won't want to get in that state again. I hope it goes well for you.
 
Thank you

Hey All

Thanks so much for all your replies they have been really helpful

I am going to speak to my manager and ask her to push for VR for me ( I may not fall into scope but she said she would push if anybody really wants it)

With all your advice and the way i feel i'm drowning in debt it really is the best solution for me, my credit rating has already been affected and I would love to clean the slate and start afresh.

Blueeyes123 - I can imagine the relief you felt!

The money i'm on isnt a huge salary and well below what I should be on for my role... I dont think I would have a huge issue getting another position in my industry but TBH I wouldnt mind a change and would work anywhere!

Thanks agin I will keep you all posted! the only thing I need to find out now is the amount & how much is taxable and would it clear my bills and leave me with a small amount.

Thanks again
 
Chocks away said:
As an outsider looking in, this is a no brainer to me. Take the VR. Pay off your debts. Wise up. Have a short holiday and start anew. You'll have learned a great lesson and by using your 'get out of jail card', you won't want to get in that state again. I hope it goes well for you.
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Thanks Chocks Away , you can say that again! I think I can safely say I will Never rack up a personal debt like that again! I cant wait to have freedom from my bills (Fingers Crossed)
 
Good luck shouldi. Please remember to let us know how you get on with it. Would be nice to know!
 
shouldi said:
but TBH I wouldnt mind a change and would work anywhere!
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So would many of the 450,000 people looking for a job.

You really need to have a good idea of where the next job will come from. If you are talking to your manager about VR, start talking to the recruitment agencies about your next job to get a feel for your options.
 
Agree with the above poster. Have a look on all the recruitment websites and it might be an idea to send your cv to any other places in your sector (like if you work in legal send your cv to other law firms via the dx), even if you get rejected by all of them you're guaranteed 2 or 3 will keep your cv on file and consider you for any upcoming roles.

Obviously VR is your best option and even if you end up on the dole for a little while you'll still be a lot better off than you are now but you need to consider the longer you are out of a job the harder it is to be motivated to get a new one. You could look into going back to education, moving abroad etc as well, in fairness this could do you so many favours
 
Hi All

Thanks again for all your replies

I'm going to speak to my manager tomorrow and fingers crossed I will be able to go for the VR.

I have had a long think and its the best way for me to go with my current circumstances.

I have looked at jobs in my sector and there is more than i expected for the role I do.. I am also looking at returning to education short term to upskill.

Thanks again for all your advice and hopefully I will be on with good news in the next week or so!

Hope all is well with everyone
 
I'm in the minority here but I'd definitely reconsider taking VR. All well and good to be debt free but you need to get a job and survive afterwards. I was offered VR a year back and also have some debt (not as high as yours but still finding it very difficult). I weighed everything up and came to the conclusion that even if I cleared it I would still need to find money for my mortgage, food, heating etc. Yes there are jobs out there to be had but in the industry I'm in, I'm seeing people getting 6 month contracts with quite low wages. I wish you the very best of luck if it works out for you but for me, I've a few years left to grin and bear it! :)
 
I don't think the OP has a mortgage.. this is the crucial difference. He is on relatively low wages, and would have many opportunities if he could clear his debt.. he could go travelling for example.
 
Complainer said:
So would many of the 450,000 people looking for a job.
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Is this true? Would many of the unemployed architects and solicitors work in Tescos or McDonalds, or in a service station for example?

Many people have large mortgages etc and would likely say that they cannot afford to take a poor paying job.
 
JoeBallantin said:
he could clear his debt.. he could go travelling for example.
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Another fine way of getting into more debt. :)

I know she doesn't have a mortgage but do you not think a permanent job is extremely important these days? It's awful to be in debt and fair play to her for facing it head on but if you REALLY cut back you can get through it. Very difficult but can be done.
 
If I was in your position and got offered that sum in redundancy I would consider it a gift from heaven. There is nothing like the feeling of being debt free. In relation to getting another job my attitude is that if you really put a lot of effort in and chase up every opportunity you will find a job. You may not want to be too fussy in the type of job though. It will be a massive weight off your shoulders. No brainer IMHO.
 
Rejected for VR :(

Hello Everyone

Just to give you all an update I applied for the VR but was rejected :(

I had a feeling this would happen but i'm still disappointed as it would have sorted me out big time..

So onwards and downwards (debtwise!) I've decided to work on the present and see what I can do to take away some of my bills

I am going to move in with family and use the money I was spending on rent to take a chunk off my higher interest debts hopefully in 12 months I will be in a much better place and in the meantime am going to focus on things I can change rather than getting upset at what I could have done with the money..

The place I work always offers VR every few years so will hang on and maybe I get it the next time.

Thanks again for all your advice everyone I really appreciate it :)
 
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