Several people only felt a load of their debt when there are unfortunate changes in their situation as after losing their job. Unemployment and reduced work hours equate to a decrease in income. This can be a difficult situation especially if you’re dealing with debts.
Moreover, unemployment can happen to anyone. When you lose your job, been unemployed or had to reduced work hours, you’ll likely to have a limited income. If this happens, we can assist you on how you can deal with your situation and get back on your feet.
Am I at risks of redundancy if I have been furloughed?
Your employers might be taking measures to deal with the COVID-19 pandemic. As part of these measures, you and the others might be furloughed from work.
Being furloughed does not follow redundancy. You’re still on board with your employer and it could mean you can return to work when the furlough period ends.
For details check our guide on: Redundancy, Debts, Rights and Entitlements
Unemployment relating to Debt Problems
Unemployment relates to debt problems because it involves finances. Any household or individual who struggles with debts even when employed could certainly find it hard to deal with debt problems. This can be extremely hard during unemployment. Even if you become unemployed and is debt-free, you’re still likely to consider taking credit or loan somewhere else to meet your essential living costs.
Having a limited income could mean making a realistic budget and knowing which bills to pay first.
How can I manage my finances?
Primarily, you have to start facing your financial difficulty and debts. Here are some of the things you can do to help boost your income:
- Avoid taking further credit or loans
- Avoid using your credit card with liberty
- Do not increase your overdraft to make sure you do not rip your pocket repaying it
- Check your bank if they can offer help with your debts with them. If not resort to taking a basic bank account
- Prevent taking debt consolidation loans without getting the advice of organization like us
- Do not take out loans secured against your home
Instead of taking out a loan or credit, you can explore alternatives such as:
- Check entitlement to benefits that you can claim
- Seek debt help and advice
- Find means where help is available such as when needing emergency food and money, Help to Save scheme and more
Debt problems are not something that you can solve overnight, it needs careful planning and strategy. Besides, millions of people across the UK are coping up with their debts. Those who seek support are lucky to gain control over their finances.