I’ve been made redundant, will I lose my house?

‘Will I lose my house?’ is the biggest single question people ask Payplan’s helpline after they’ve been made redundant.

The free debt advice and solutions company helps over 100,000 people every year and while losing a job is a terrifying experience, Payplan says it doesn’t mean you’re automatically going to have your home repossessed. Help is at hand.

Simon contacted Payplan two years ago. The 39-year-old had a good job and was in control of his finances – in 2009 he was made redundant and struggled to keep on top of his payments, building up £22,000 of debt. Despite finding more work, Simon had to take a big drop in salary that left him unable to meet all his repayments. Simon is now in a debt management plan and says he can see light at the end of the tunnel - a day when he will be debt free again.

Simon’s story is very typical of thousands of calls into Payplan’s helpline.

“Redundancy often happens totally out of the blue and comes as a huge shock,” explained Diane Watson, who leads Payplan’s specialist advice team. “It is devastating and turns people’s lives upside down. But it isn’t the end of the world, even if getting another job isn’t that easy.

“There are plenty of options available so while the job search goes on, the family finances and any potential debt issues are being managed.”

Free debt advice companies such as Payplan work alongside the Citizens Advice Bureau and the National Debtline to provide impartial help and solutions for individuals and families who find themselves in just this situation. Debt consolidation through a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) are two of the solutions considered.

“If you’re out of work and worried that you’re going to creep into debt or have already started to do so, don’t leave it too late to seek advice,” added John Fairhurst, Payplan MD. “You could find the situation you’re currently in isn’t nearly as bleak as you first imagine.”