Losing a job is a stressful circumstance that comes with many factors to consider. From paying bills that do not pause just because your income has to cover expenses dealing with eating and other personal necessities, this is a lot to think about. No matter how stressful the situation gets, there is relief in knowing that others go through this all the time. Being in debt while being unemployed is not a permanent lifestyle. There are ways to make it easier, and these tips for unemployed in debt will assure you that everything will be okay.
Helpful Tips for Dealing With Debt While Unemployed
These tips are designed to help anyone who is unemployed and in debt, struggling with finding a job. These two factors combined can be very stressful, but they are easy to overcome with structure and a routine.
1. List All Debts
Making a list of all your outstanding debt is important to understanding how much money you will need. This is also a great tactic to stay organised and not feel like you are being overwhelmed by outstanding bills that are due.
2. Talk to Creditors
Many people that are unemployed and in debt are ashamed or worried about contacting their creditors because they believe the companies will be inflexible. However, this is not always the case. Most of the time, they are going to understand that unforeseen circumstances come up. Many might be willing to create debt-relief plans to allow you to make smaller payments, as long as they are aware you are unemployed and will eventually begin searching for work.
Once you have completed the first two steps, next comes budgeting. You likely had a budget in place when you were employed, but this will inevitably change because your income has changed. Think about what you need versus what you want. Paying bills, keeping up with rent or mortgage payments, and being able to feed and upkeep the household are all necessities. Also, consider a consolidation loan, even when you’re unemployed some lenders will be able to provide unemployment finance.
Learn more here: Top 5 Ways On How To Budget When You’re Unemployed
While there can be extra money left over, consider if it is a good idea to spend this money on material items or to put it away in savings for the next time a bill is due. This awareness is incredibly helpful.
4. Claim on Insurance
Home insurance is an incredibly helpful factor to consider while trying to consolidate debt. If you have a mortgage, there is special insurance you can claim called MMPI (mortgage payment protection insurance). This enables you to keep your home while being temporarily unable to pay your mortgage for a period of time. There is also PPI (payment protection insurance), which allows for help paying loans and credit cards for 12 to 24 months.
Consider which bills are most important, and focus on paying these. If you can manage your bills accordingly, you will understand how to organise the money you do have.
Other Resources in the UK for Unemployed in Debt
Jobseeker’s Allowance, or JSA, is helpful for someone trying to get back on their feet while unemployed and in debt. You can apply for this while you are ready to actively look for work and, once approved, receive a stipend. To do so, simply apply for eligibility and then make a claim. Once agreeing to look for work, you can start receiving this allowance.
After considering these options, it is much easier to breathe a sigh of relief when thinking about how to manage keeping up with bills, maintaining personal necessities, and looking for a new source of income. The above tips are designed to help anyone unemployed in debt living in the UK, and it is helpful to remember that you are not alone. The debt can be sorted, and a new job can be procured.