SPEND RESPONSIBLY - Handling hard times

Losing your job

Losing a job is something that can happen to anyone. In fact, around 200,000 Australians are retrenched or made redundant each year. But by taking control of your finances, you can get on top of a challenging situation.

What you can expect to receive

In addition to any holiday pay or long service leave entitlements, most redundancy packages range from two to four weeks of pay for every year of service.

What you decide to do with the money – from cashing it in to rolling it over into your superannuation, will depend on your age, income and plans for the future. The tax treatment of redundancy payouts is complex though, so it pays to get professional advice before you make a decision.

Set a new course

Draft a new household budget that takes into account your reduced income. You may need to adjust your spending, so look at ways to cut back on non-essentials.

Contact Centrelink on 132850 or visit www.centrelink.gov.au to see what government entitlements you may be eligible for. Do this as early as possible, as it can take around four weeks to receive any benefits.

Contact your lenders

Lenders realise that losing your job is something that can happen to anyone, and they will often re-negotiate a new repayment plan rather than lose your debt. Make early contact with your credit providers to negotiate a workable arrangement. But don’t miss repayments – contact your lenders before they contact you.