Five steps to protect your finances if you are unemployed

Millions of people in the UK are currently unemployed – either after being laid off from their jobs or simply being out of work after training – and things are likely to get worse before they get better.

In a recent survey, debt counseling experts, PayPlan found that money worries affected the mental health of 82% of people. When seeking debt help, 81% noted an improvement in their mental health, which highlights the need to speak to someone if you are currently unemployed and having problems.

To help unemployed workers with their financial wellbeing, PayPlan has put together expert tips to help out in the event of a sudden job loss or job search.

Take a closer look at your finances

Understanding what money you are getting and what to pay for will give you a better picture of your overall financial situation. To take control of your finances, use a monthly budget planner and write down everything you need to pay for. Divide these payments into senior and senior debt.

Priority debts include arrears in rent, mortgage arrears and secured loan arrears, gas and electricity debts, and council taxes. It’s important to keep track of your priority payments as the consequences of not paying mean you may not have a warm, lighted home.

Increase Your Income

It may take a little time to get back to work in the current market, but there are things you can do to maximize your income while looking for a job. First of all, check that you are receiving all of the benefits that you are entitled to by: a Free performance examiner . You may be surprised at the benefits you may be missing out on.

If you have unwanted items around the house, these can be sold to raise a little extra cash. Sites like Facebook Marketplace, eBay, and Depop are perfect for selling clothes and gadgets.

Cut down on your expenses

See your current bills and expenses to see if you’re getting the best deals and cancel anything you no longer need. Comparison websites can help you compare current offers and negotiate a better deal for a new product or service.

If you are not using a subscription service, cancel it and wait for your finances to improve before incurring additional luxury costs. Make sure you have read the terms and conditions before canceling if any fees apply. Some services – such as B. Gyms – provide an option to freeze payments while their premises are closed or to assist customers with repayments. So take advantage of it.

Get on your debt

If you are behind on repayments, this is a good indicator that you should seek free advice to regain control. If you are not sure who to speak to, the Money Advice Service can let you know You where to go for free debt counseling .

When you have next to no income, it is a good idea to let your lenders know of your troubles as they may be able to offer short term assistance with reduced payments and respite so you can consider a longer term option to trade with your debt. It’s always worth asking for help, so don’t be shy.

Ask the experts for help

PayPlan can help if you’re struggling to make your repayments every month. However, there are other expert organizations that can help on anything from labor rights issues to mental health support.

  • ACAS – can help with all labor rights issues. Call 0845 747 4747 or visit

  • Citizens Advice – provides free and impartial advice. Find your local office on the website, visit:

  • – provides general online advice on redundancy selection, counseling, layoff compensation, and notice periods. Visit:

  • If you are a member of a union, speak to your workplace representative or contact your union directly.

  • Pension advice – You offer people with a company and personal pension free and impartial advice. Call 0800 011 3797 or visit:

  • Samaritans – they are there to support you no matter what you are going through. They are available 24 hours a day, 365 days a year. Call 116 123 or visit:


Leave a Comment