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Debts and the Credit Crunch
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by: Dave Saltonstall
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Word Count: 361
The number of people losing their jobs seems to be increasing on a daily basis and very few sectors in the community seem to be safe. From banking services, the retail trade, manufacturing, catering and service industries nobody seems immune apart from possibly the public sector. Losing a job is a traumatic experience. If you are working for an employer that is able to provide good redundancy payments then you should have a breathing space at least. It is not unusual to receive tax free redundancy payments of £30,000 in certain sectors of the economy and there are many examples of people using this money to start up their own businesses and become very successful in the long run. Most of us however are not so lucky as most firms only pay the statutory minimum redundancy payments.
These are in fact derisory and amount to one weeks pay for every year of service between the aged of 22 and 41 and one and a half weeks pay for ages above 41. Below 22 and you only get half a week pay for each year served. Unless you have another job lined up straight away, it is off the job centre and sign on. If you are over 25 you qualify for the maximum job seekers allowance of £64.30 a week. Of course there are some additional benefits available for special circumstances and if you have children, but they do not mount up to much.
How far will this go to paying off that credit card debt?
Very few of us plan being made redundant. Generally just getting by and putting a little aside for our old age is the best we can do. Most of us have some degree of credit card debt and bank or other loan which we are paying off. Just because we have lost our job does not make these debts go away.
Probably the best thing you can do with any spare cash you have is to pay off some of these debts while you can. Some debts are more important than others and they all need to be prioritised.
About the Author
Even though you may have many other things on your mind at the moment you should not delay taking action and talking to a debt management organisation which should certainly be able to help... The author recommends you to the helpful pages of -- http://www.Debt-free.org.uk --
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