One of the reasons that you might be having difficulties with debt is that you are suffering from a period of unemployment. In this situation if you have no savings to fall back on or these have already gone you could borrow more to get you through.
However borrowing more during a period of unemployment is not recommended. Your debt can rapidly increase to a level which becomes impossible for you to repay even if you do eventually find another job. Instead it is generally better to deal with your debts by using a debt management solution.
Your options are explained here including suggestions for if you feel you will be without a job in both the short and longer term and what to do if you lose your job while already using a debt management solution.
Managing debt if you are short term unemployed
If you have recently lost your job but you believe that you will be working again shortly perhaps because you already have a new position lined up you will need to find a short term fix for managing your debt repayments. In these circumstances borrowing more to supplement your income you could be an option especially if you want to protect your credit rating. However if you do not want to borrow more or are unable to then a short term DMP is an option. you also need to consider what to do if you get a new job quickly but on a lower salary. Detailed advice about all of these options is available here.
Are you struggling with debt due to unemployment? Give us a call on 0800 077 6180 or complete the form below to speak to one of our experts
Managing debt if you are long term unemployed
If you have lost your job and you are concerned that there is no reasonable prospect for you to get back into work any time soon then you need to find a longer term solution to manage any debts that you have. If you have access to a cash lump sum perhaps in the form of a redundancy payment you may be able to simply offer cash settlements to write off the debts you owe. However if this is not an option you will need to consider a debt management solution which will either help you to reduce the ongoing payments that you make towards your debts to an amount that you can afford or help you to write off the debts altogether. All of these options are explained in more detail here.
Dealing with redundancy during an IVA or DMP
If you are already managing your debts with an IVA or DMP but are then made redundant there are various options that you can consider depending on your ongoing circumstances. It might be possible to settle the outstanding debt that you owe with any redundancy money that you have received. Alternatively the payments that you make into the arrangement could be reduced still further to allow you to continue with it. Of course the final option is to allow the plan you are on to fail altogether and chose a different solution. You can find out more about all of these alternatives here.
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