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Redundancy & debt problems IVA 

Redundancy Caused Debts To Spiral

I was always taught to save money and never get into debt so when I found myself owing over £50,000 to different creditors after facing redundancy it was a shock.

I’m an educated woman who had a good job as an estate agent earning £30k per year plus bonus, this was until the financial collapse in 2008.

Suddenly the housing market crashed and my job was no longer safe but I always assumed there would be a job available to me in my current employment. I was told by my employer in early 2009 they no longer required my services and made me redundant with immediate effect, with no compensation.

Debt Problems Begin

Redundancy debtsWhen I was made redundant my debt levels were manageable however there was no way that was going to be the case for much longer.

While I had some savings which i was able to rely on it was important I got back into employment quickly, however my experience was in estate agency. No estate agent was hiring and during this period there was no great demand for rental properties either.

After 3 months of being unemployed my debt problems really began to start becoming too much to pay each month and charges from missed payment built up. At this point i really began to worry I would never be able get back into work any time soon.

Before I knew it suddenly 6 months had passed from when I entered redundancy and was no closer to getting back into employment.

How I Solved My Debt Problems

I realised my only option was to seek financial advice which is when I called a financial adviser, however they said it was debt advice I required.

The debt advice charity I called were really calm and friendly which suddenly made me realise my situation wasn’t unique. After they took my details and assessed my financial circumstance they advised me to make token payments each month until I was back working again.

Once I got back into employment, some 9 months after leaving my previous job, I called the debt adviser again who said an IVA was my best route out of debt.

This has allowed me to repay some of my debt over 5 years and still protect my property, although they have said it may be 6 years if there’s equity in my property.

Redundancy was never something I thought would caused me so many financial issues, I guess it was something I thought other people dealt with.

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[accordion title=”Story By” load=”hide”]Joanne Patteron[/accordion]
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Redundancy Caused Debts To Spiral
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