How to Prepare For Redundancy
It seems that at one time or another someone we know is waiting to find out whether they are going to be made redundant, especially in these uncertain times.
Sometimes they might even want to be if they are not happy in their job and would like to move on. At other times it might be due to a recession, public sector cutbacks or company mergers.
Whatever the circumstances it’s certainly a stressful time but there are ways you can prepare and get through it if the worst does happen.
Preparation is key
Generally, you will probably have some sort of warning that redundancy is possible whether it’s an official notice from your company or simply the rumour mill spreading the word. If you do hear that this could affect you here are some ways to prepare for the worst:
- Pay off any debts as soon as possible; with the possibility of being out of work for a while, you don’t want to be worrying about paying off credit cards or other loans and debts.
- Transfer debts you can’t pay off to something with a cheaper rate. There is usually someone offering a 0% balance transfer on credit cards for example.
- Re-assess your outgoings; by cutting back you will not only be saving money, but you will also be preparing for living on a smaller budget if you are made redundant.
- Have a clear out to raise some extra cash; if you’ve been meaning to get rid of some bits and pieces now’s the time to list them on eBay or Gumtree etc.
- Investigate part-time or evening jobs in your area; by doing the research now you’ll be ready if you find yourself out of work or in need of a second income.
- Be careful about redundancy or payment protection schemes. If you take our insurance after you discover redundancy is a possibility you might not be eligible for a pay-out.
- Contact your mortgage company and explain that there is a possibility you might be made redundant; most will want to help you and will even possibly change your payments if it is only likely to be a short-term problem.
By taking these and other steps you will be more in control of your finances if the worst should happen.
You can find out more about your rights when it comes to redundancy on the Gov.uk website.