How to cope with debt if unemployed

The economic crisis has meant that unemployment levels are on the increase. Brits are already facing huge dents to their budgets with the cost of living spiralling and house prices on the increase. Being out of work adds another pressure to consumer’s already mounting debt bills.

According to official figures unemployment reached a 17-year high this week. Unemployment increased by 28,000 between November 2011 and January 2012 to hit almost 2.7 million.

Although being made unemployed, through redundancy or for any other reason, can put Brits into austerity mode, there are a number of ways that you tackle debt while trying to re-enter the job market.

Claim your full range of benefits

The number of people claiming Jobseeker’s Allowance has gone up for the 12th consecutive month. This increased by 7,200 in February to 1.6 million.

There are also a range of other benefits that you may be entitled to such as Housing and Council Tax benefit, and potentially Free School Meals for your children. Your local Jobcentreplus should be able to answer any queries you have on additional support.

Ask for support

According to recent figures from a leading price comparison site four and a half million UK adults are permanently overdrawn and a further 17 million have dipped into the red in the last 12 months. Ask friends and family to rally round you during this difficult time. Seeking unemployment debt advice could also help to organise your debts.

Look at ways that you can make cost savings

Assess your budget and identify the areas you could make savings. You could try and carry out some energy saving measures to reduce your heating bill, cut back on luxuries or switch to economy own brand ranges to whip up a tasty meal.

Get help in returning to work

The government run a number of schemes to get people back into employment. The following are just a handful of work initiatives that are listed on the DirectGov site:

Work Together
This is for anyone who is unemployed and looking for work. Work Together gives you the opportunity to volunteer with a local voluntary organisation. Volunteering can help you to improve your chances of finding work.

Work Clubs
These are for anyone who is unemployed and looking for work. Work Clubs give you the opportunity to make the most of the local knowledge that’s available, to help you in your search for a job.

Emma Barwick

Emma has worked with the company since January 2007 and has gained a vast knowledge of insolvency and how we as a company can help people who are struggling with debt.

Emma ensures people are given the best advice before moving to the next stage and provides a wealth of experience in advising and providing technical support to IVA and Debt Management Plan customers.

In 2009 Emma completed her BTEC Advanced Certificate in Debt Resolution.

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How to cope with debt if unemployed

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