IVA, debt management and Redundancy

Often redundancy and financial hardship go hand in hand. It is extremely important to get advice as soon as possible and we can offer IVA debt advice now. When a person is made redundant from their job it can mean that their income is substantially reduced. A reduction in income can lead to the build up of debt, which can quickly become a problem if that person had been relying on their steady income to meet all of their loan repayments, etc. Due to a lack of jobs it is even more difficult to find new employment in order to quickly get back into making these repayments.

One of the most common redundancy stories will involve a person who has worked in a job for many long years and then suddenly they are made redundant. When this happens the person might see themselves as being too old to start a new career. Especially when the area they once worked in has declined and they must venture into a new area of work where there are jobs available. The long period between redundancy and finding a new career can lead to massive debt. During this period a person will be working with a much smaller income than that they are accustomed to, which is a clear cause of financial hardship.

Another example of how redundancy leads to debt is the adjustment in lifestyle. A lot of the time people are used to having a certain amount of money to spend on things, and so instead of cutting down they will simply borrow money in order to fund a lifestyle they can no longer afford. Of course, when a person has been so used to a certain way of living it is not an easy task to change this, and so, debt builds up quite easily. In this respect, if the individual had sought some advice about how to handle their change in circumstance they might have avoided the strain they are currently under.

Sometimes a business can go under quite quickly, resulting in very little resources left for redundancy payments and so on. When this happens workers will be left with even less money than they might have hoped for. Losing your job can often mean a loss of identity, and when you add this to the financial struggle that follows it can be too much for one person to deal with alone. This is why seeking free debt advice can help to alleviate the burden somewhat.

There are few bigger upheavals that can occur in a person’s life than redundancy, and it can lead to a situation where an IVA, debt management program or other debt solution is the only manageable way out. It is not easy for a person to admit to needing help, especially when they have been financially independent their whole lives. However, redundancy and in particular redundancy in the later stages of a career can be cause for this.

An IVA may be an option where an individual has been made redundant, built up a large amount of debt because of it and then found employment giving a suitable amount of surplus income. It may be that the income they now receive is less than they were used to increasing the debt burden further.

If you have any IVA questions or require general debt advice, please contact X-debt now.