09 Oct 2024
By Wbg
Following the news that car manufacturer Albion Automotive is planning to stop production this month, putting at risk 100 jobs, Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, has outlined five key steps that can help ease the financial burden and assist families in managing the financial impact of redundancy.
And ahead of World Mental Health Day tomorrow (Thursday 10th October), the firm has stressed that redundancy is not only a financial issue but an emotional one.
Its five steps are:
1. Review household budget
The first step to managing financial stability is reviewing the household budget. List all sources of income and compare them to monthly expenses.
Paul McDougall, Insolvency Practitioner at Wbg, said: “Identifying areas where cuts can be made will help ease financial pressure and make funds stretch further during unemployment. Make budgeting a family discussion so everyone is aware of any necessary changes.”
2. Assess financial reserves
Evaluate available financial reserves, such as savings, to determine how long they will cover essential expenses.
“Having a clear understanding of available funds allows for better financial planning during the job search,” said McDougall.
“If necessary, consider creating an emergency savings fund to help manage unexpected expenses.”
3. Identify support from government programmes
Encourage family members to research government programmes, benefits, and unemployment support they may be eligible for.
“Social security programmes, unemployment benefits, or assistance with utilities and housing can provide a much-needed financial cushion while they find alternative employment,” said McDougall.
4. Reevaluate debt management and seek advice
Redundancy can make existing debts, such as mortgages, loans, or credit card payments, harder to manage. It’s important to review all debts and consider renegotiating payment terms.
'Many lenders offer temporary relief options like reduced payments or deferred payments for those facing unemployment,” said McDougall.
“Reaching out to a debt advisor to explore options to deal with household debt should be considered.”
5. Support emotional well-being and financial planning
Support your loved one by helping them maintain a positive outlook and encouraging them to focus on proactive financial planning.
“Mental health resources, coupled with sound financial strategies, will provide a comprehensive approach to managing both stress and financial concerns of redundancy,” said McDougall.
“By following these steps, families can take practical and proactive measures to manage the financial impact of redundancy, ensuring financial resilience during a difficult time.”
Wbg provides debt advice and offers debt solutions to individuals and families. Its mission is to empower people to take control of their finances and improve their quality of life.
