Debt and Redundancy
Losing your job could quickly leave you deep in debt.
A survey by Yorkshire Building Society recently showed that the average person in the UK would start to experience money problems just 52 days after losing their job and as many as a third of adults would only be able to manage financially for an alarming 11 days.
Redundancy in itself is hard enough to cope with but it comes with a whole host of other points you need to think about:
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Finding a new job – Being made redundant can be a stressful experience and leave you feeling bitter and angry. However, dwelling on the fact is only going to pose you more problems, especially if you bear in mind the figures mentioned above. Taking decisive action and trying to bounce right back could save you from slipping into a cycle of debt.
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Your mental health – Losing your job is a worrying time for anyone, and with this worry often comes lack of sleep, loss of appetite and general lethargy. A survey by the charity MIND revealed that 91% of people surveyed thought that debt had played a significant role in their mental health problems.
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No nest egg – The same Yorkshire Building Society survey as mentioned earlier found that a massive 36% of people in the UK have less than £500 of savings to use in an emergency such as an unexpected redundancy. If the worst was to happen and you lost your job, you could start to suffer from the mental and physical symptoms of stress and anxiety.
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Panic borrowing – If you find yourself without a job unexpectedly and you have very little money to fall back on, it’s easy to be tempted to rely on credit cards to pay your bills. The trouble is that it’s all too easy to become reliant on these and lose sight of the bigger picture, which is to find a long term solution to your debt problem. Also, by using a credit card you’re actually paying extra on your bills by the time the lender has added on their interest.
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Talk about your debt – There’s no doubting that for most people, finding themselves in debt is something they’d rather not share with friends and family. If you can summon the courage to talk about your financial problems and get some
debt advice you’ll find the burden of debt resting slightly less heavy on your shoulders and with the right help, it can be lifted completely.
If you find that you’re struggling to pay the bills after a recent redundancy then the worst thing you can do is put off dealing with your debts.
Call Debt Solver for Expert & Confidential Advice now on 08000 434 336.
