Securing a job is crucial if you want to be financially stable. Many in the UK find themselves asking, “How to pay bills if I lost my job?”
This post aims to help you get through this difficult period by providing helpful tips on managing debt accumulation, paying your rent and mortgage, and making ends meet. We can assist you in regaining financial stability and finding your footing, regardless of the strain of having “lost my job after a mortgage offer” or “lost job and can’t pay rent.”
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I Lost My Job And Can’t Pay My Dues. What Should I Do?
If you’re wondering ‘how to pay bills if I lost my job’, keep in mind that many people and families in the UK are living from payday to payday without proper savings. This indicates that they will not be able to pay their household dues if they are made redundant. However, individuals may be able to claim Universal Credit in order to access benefit payments quickly and stay afloat.
Jobseekers Allowance is also available for individuals who are actively searching for employment. However, these payments might not be sufficient to cover all monthly payments for energy, rent, groceries, etc.
If you stop making payments in full or on time, the company or the creditor might send you a reminder to pay. They might also ask you to reach out to discuss a more affordable payment plan for any arrears.
If you want to avoid the company from taking further action, such as taking you to court, it’s crucial to discuss a monthly payment. Taking up a debt solution such as the following is also an option:
But what if you’ve just got a new mortgage? The thought of “lost job after mortgage offer” can be really scary. Here’s the thing: lenders usually want to help you keep your home. So, it’s worth talking to them about your options.
But wait, there’s more you should know about handling debts. It’s not just about making smaller payments. You also need to think about how this might affect your credit score and future chances to borrow money.
Losing a job means you have to think about every penny. Here are some more tips:
- Reduce Your Monthly Bills: Look at every bill you have and check if you can switch to a cheaper energy provider.
- Sell Stuff You Don’t Need: Got things lying around that you don’t use anymore, try selling them.
And remember, it’s not just about cutting costs. Think about ways you can bring in some money while you look for a new job.
Need more help?
There are a number of alternative debt solutions available in the UK that you could use to write off some of your priority debts that may have piled up due to inability to pay off your bills. But keep in mind that choosing the right solution will aid you in writing off some of your debt, while choosing the wrong one will worsen your debt situation.
Here, the key is to determine what debt solution suits your personal financial situation in the best way possible. Fill out below online form to find a reliable solution to your debt issue using the help of our professional MoneyAdvisor team member.
Are you struggling with unaffordable debt?
- Affordable repayments
- Reduce Pressure from people you owe
- One simple monthly payment
How to Pay Bills if I Lost My Job?
If you lost your job and need money in order to keep paying your dues, apply for Universal Credit without delay. This is a benefit payment for many situations, such as if you’re looking for a new place to work.
However, in a situation where you have long-term contracts such as mortgage payments or rent, TV packages, and others, these benefits won’t be sufficient. So consider the following to make any benefit payments stretch further and reduce your immediate household expenses.
A lower household income could mean a reduction in council tax. Plus, you might get a refund for past overpayments. If you have already forgotten to do this, there’s a chance you might receive a refund.
It’s possible to get some help from your mortgage provider. Many of them along with banks offer a break from paying the dues if you file for unemployment. This will help you to get a break from paying your mortgage debt for 3 to 6 months.
It is advisable that you get in touch with any energy providers and clarify your financial circumstances. They can agree to halt payments for a while, or they might present a temporary substitute. All you need to do is add a little account information or personal information, then submit it!
If your bad credit history led to the installation of a prepaid meter, you should request emergency credit when you need it. Ignoring their calls and avoiding their letters could result in large debts and legal action being launched against you. Get in touch with a debt charity for more help and guidance.
List every other service and subscription you own. This will mostly concern Netflix and other streaming entertainment websites for most homes. Instead, you should prioritise paying for necessities by trying to cancel as many of these as you can.
When you are not working, you could have several expenses that are unnecessary. For instance, if you are not using your vehicle insurance to go to work, you might want to think about cancelling it. If you’re a student, you might think about applying for university hardship funds, which are offered to those who can’t afford their tuition because they lost their job.
I Lost My Job. What Can I Do About My Credit Card Debt?
You could be concerned about making your minimum loan or credit card instalments if you’ve already lost your job and have debts of any kind. In this case, your initial course of action should be to get in touch with each lender and explain your current financial status.
In order to make minimum repayments more manageable and customised to your individual financial situation, your lenders might be able to modify the monthly amount you owe. Numerous organisations and bodies encourage them to take this action.
Alternatively, you might choose to request a total repayment freeze that stops interest as well.
You should think about your options if you have credit cards and overdue credit card debt.
There are many that stand to gain from a credit card balance transfer in this scenario.
In essence, you are paying off your present debt by applying for a new card that has a lower interest rate than the one you already have. As a result, even if your debt is still there, its growth is slower due to the lower interest rate.
Starting a Budget
When you have obligations and possibly debts and have entered unemployment, creating a budget to keep track of your funds is another worthwhile chore you can accomplish.
You are able to take charge of your spending by making a budget. In only a few minutes, you’ll get a comprehensive snapshot of your financial condition.
All of your monthly expenses and income, including benefits, are listed in your budget. Once you’ve determined the expenses you can cut while looking for a new job, you can separate your spending into necessities and wants.
After that, you can modify your budget to help you save money by adjusting your spending.
Spending solely cash is a popular strategy used by some people to make budgeting easier.
Key Points
- Apply for Universal Credit or other government benefits if you’re wondering ‘how to pay bills if I lost my job’ to ensure some financial support.
- Contact your landlord or mortgage lender to discuss potential temporary relief options, such as reduced payments or a mortgage break.
- Reach out to creditors to explain your financial situation and explore options like revised payment plans or debt relief solutions.
- Engage with utility providers for possible payment plans and check for any available support schemes.
- Assess and cancel non-essential subscriptions and services to reduce monthly expenses.
- Consider part-time work, freelancing, or selling unused items to generate additional income.
- Create a budget to monitor your finances, prioritise essential spending, and identify areas for cost-cutting.
FAQs
Applying for Universal Credit or other appropriate government benefits is the initial step. This gives you a financial safety net while you look into other possibilities.
Make quick contact with your mortgage lender or landlord. Talk about possibilities such as a one-time rent decrease.
Speak with your creditors about your circumstances. They may provide updated payment schedules, postpone required payments, or point you in the direction of debt solutions.
In most cases, essential services cannot be disconnected. However, you should communicate with your utility providers to discuss potential payment plans or assistance programs.
