{"id":1581,"date":"2021-02-12T18:52:04","date_gmt":"2021-02-12T13:22:04","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1581"},"modified":"2021-02-12T18:52:09","modified_gmt":"2021-02-12T13:22:09","slug":"how-to-manage-money-post-unemployment","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/","title":{"rendered":"How to Manage Money Post Unemployment?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e5f025f323b\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e5f025f323b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#Money_Management_for_the_Unemployed\" title=\"Money Management for the Unemployed \">Money Management for the Unemployed <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Stick_to_Affordability\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Stick\nto Affordability\">\u25cf&nbsp;&nbsp;&nbsp; Stick\nto Affordability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Prioritize_Requirements\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Prioritize\nRequirements\">\u25cf&nbsp;&nbsp;&nbsp; Prioritize\nRequirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Ask_for_Help\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Ask\nfor Help\">\u25cf&nbsp;&nbsp;&nbsp; Ask\nfor Help<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Find_Money_Saving_Solutions\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Find\nMoney Saving Solutions\">\u25cf&nbsp;&nbsp;&nbsp; Find\nMoney Saving Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Create_Savings\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Create\nSavings\">\u25cf&nbsp;&nbsp;&nbsp; Create\nSavings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Develop_New_Money_Sources\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Develop\nNew Money Sources\">\u25cf&nbsp;&nbsp;&nbsp; Develop\nNew Money Sources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Claim_Insurance\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Claim\nInsurance\">\u25cf&nbsp;&nbsp;&nbsp; Claim\nInsurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Find_a_New_Job\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Find\na New Job\">\u25cf&nbsp;&nbsp;&nbsp; Find\na New Job<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Check_Council_Tax_Reduction_Eligibility\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Check\nCouncil Tax Reduction Eligibility\">\u25cf&nbsp;&nbsp;&nbsp; Check\nCouncil Tax Reduction Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Start_Collecting_Money\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Start\nCollecting Money\">\u25cf&nbsp;&nbsp;&nbsp; Start\nCollecting Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-manage-money-post-unemployment\/#%E2%97%8F_Resolve_Bank_Overdrafts\" title=\"\u25cf&nbsp;&nbsp;&nbsp; Resolve\nBank Overdrafts\">\u25cf&nbsp;&nbsp;&nbsp; Resolve\nBank Overdrafts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>The recent rise in redundancy due to the ongoing pandemic situation\nhas concerned many UK citizens, especially money issues. Many people rely on\ntheir salary as a primary source of household finance.<\/p>\n\n\n\n<p>Also, recently unemployed professionals might find it challenging to find new jobs, mostly due to the protocols, working hours, and conditions. Many professionals such as car mechanics, plumbers, home developers, etc., don&#8217;t find much work quickly, even working as freelancers.<\/p>\n\n\n\n<p>Therefore, they depend on benefits,\n<strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/unemployed.html\">unemployment loans<\/a><\/strong>,\nor other sources for acquiring household income. Unfortunately, keeping\nup with existing debts, mortgage or rent, food expenses, etc., becomes\ndifficult. However, there are a few solutions for managing money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Money_Management_for_the_Unemployed\"><\/span>Money Management for the Unemployed <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Stick_to_Affordability\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Stick\nto Affordability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Recent unemployment can prevent a person from relishing the\nbenefits of recurring monthly income. If you fall under this scenario, sticking\nwith affordability would prove beneficial. The first step involves creating a\nsustainable budget.<\/p>\n\n\n\n<p>So, gather letters, bank statements, records, and books related\nto lenders. Check your existing credit report with Experian, Equifax, and\nTransUnion. Add occasional, monthly, and durational expenses.<\/p>\n\n\n\n<p>Subtract the overall expenses from savings and investments. At\nthis point, if you have any passive income from investment or benefits, then\nadd them. It would define the affordable budget requirement for covering\nmonthly costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Prioritize_Requirements\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Prioritize\nRequirements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Prioritize paying important bills for mortgage or rent,\nelectricity, water, maintenance, etc., before others. Remember that there are\ndire consequences of delaying or missing payments for such expenses.<\/p>\n\n\n\n<p>At this stage, your savings would significantly diminish. If\nyou don&#8217;t have any savings, you should opt for promotional credit cards, loans\nfrom friends, bad credit loans, unsecured loans, etc.<\/p>\n\n\n\n<p>Optionally, you can work at a place that pays lower income than your last drawn salary to avoid severe repercussions. Selling or renting unused items online can also help to generate passive income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Ask_for_Help\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Ask\nfor Help<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you have existing debt and have been recently unemployed,\nyou should inform the lenders. They can assist by freezing charges and interest\nrates. Additionally, they would provide temporary measures for recovering\nrepayments.<\/p>\n\n\n\n<p>A few creditors can even offer payment holidays to borrowers with a good credit history and continued to make timely repayments. Besides this, you can opt for debt consolidation loans to ease clearing debts.<\/p>\n\n\n\n<p>Optionally, figure out your passion while staying at home and avail yourself a startup loan after creating a business plan. It can uplift your career and ongoing salary if you have experience in the field. Moreover, it is the best help a person can avail during such a time.<\/p>\n\n\n\n<p>The government provides grants and funding to startups with\ninnovative creations. Alternatively, draw money from investments at a specific\ncharge or loss. Furthermore, ask for financial help from friends and family\nmembers. Besides this, peer-to-peer lending can prove advantageous.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Find_Money_Saving_Solutions\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Find\nMoney Saving Solutions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another useful method of increasing monthly income during unemployment is by finding money saving solutions. For example, switching energy suppliers by using price comparison websites. Similarly, reviewing a phone contract to check the best possible deals.<\/p>\n\n\n\n<p>Likewise, check whether you are eligible for government\nbenefits. Additionally, review bank statements, records, lender letters, etc.,\nto check for discrepancies. Also, check the credit rating to avoid any late\npayment charges, unnecessary deductions, stop repayments, etc.<\/p>\n\n\n\n<p>Furthermore, most households incur large expenses from mortgage\nor rent. Inform the concerned person of your recent unemployment and notify\nabout late payments. It will help to avoid excess interest or charges.<\/p>\n\n\n\n<p>Besides this, the person might even provide solutions for\nmortgage or rent. A few banks offer to stop repayments for almost three months.\nThe person can repay for the lost months after the first income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Create_Savings\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Create\nSavings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The most challenging task during unemployment is creating\nsavings. However, diligent efforts can help to achieve this goal too. The\nprimary step is to diminish existing debts. It is possible by making early\nrepayments.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/unemployed.html\">Short-term loans\nfor unemployment<\/a><\/strong>, credit\ncards, and other money borrowing options can help clear small debts. After\nclearing these debts, find the adequate time required for clearing new and\nlarge debts.<\/p>\n\n\n\n<p>Schedule your repayments through your bank to avoid late\npayment charges. Ask your spouse to become a guarantor to avail better interest\non loans. Also, open a savings account with small denominations with the\nfacility to withdraw with no or minimal charges.<\/p>\n\n\n\n<p>The additional interest generated through the savings account\ncan help to recover remaining debts. After that, any amount deposited into the\nbank would create interest rates. Moreover, the expenses would diminish and\nprovide more cash for spending and saving.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Develop_New_Money_Sources\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Develop\nNew Money Sources<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Besides lending space or unused items, there are a few other\nsources of generating passive income. A few of them include affiliate\nmarketing, blogging, courses, podcasts, website creation, online selling,\ncontent writing, etc.<\/p>\n\n\n\n<p>All of these skills don&#8217;t require a device and an internet\nconnection. These have helped many home-based entrepreneurs to develop\nsuccessful online businesses. Keep in mind that rental income can generate\n\u00a37,500 or higher monthly payment.<\/p>\n\n\n\n<p>Also, Airbnb services can incur much higher monthly income\nbased on the total number of stays. Additionally, leasing out space to a\ncompany can secure money from home with almost negligible efforts. <\/p>\n\n\n\n<p>However, there are terms and conditions and taxes accrued for\nleasing, renting, and Airbnb.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Claim_Insurance\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Claim\nInsurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Verify whether you have a Payment Protection Insurance (PPI), Mortgage payment protection insurance (MPPI), or Short-term Income Protection (STIP). Claiming them becomes possible after losing a job or during severe illness.<\/p>\n\n\n\n<p>Most people don&#8217;t realize that they have insurance coverage\nfrom PPI and forego their claims. Besides this, a lender can inform whether the\nmortgage, credit card, or rent has any of these coverages.<\/p>\n\n\n\n<p>Unfortunately, most of them either have a minimum work duration\nperiod clause after taking the insurance. Also, people that know upcoming\nredundancy might become ineligible for taking a PPI.<\/p>\n\n\n\n<p>Besides this, PPI can get refused if the person had information\nabout upcoming redundancy before applying. At times, people with insurance can\nget a refusal for insurance. Under such circumstances, the policy was mis-sold.\nTherefore you can make a compensation claim.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Find_a_New_Job\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Find\na New Job<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another easy solution to avoid increasing debt due to\nunemployment is finding a new job or work. As mentioned earlier, the payout may\nnot match your last compensation; however, it would provide a sustainable\nincome.<\/p>\n\n\n\n<p>Moreover, clearing a debt and managing monthly expenses would become much more manageable. To find work fast, brush up communication skills, showcase work completed during the lockdown, improve social media presence, etc.<\/p>\n\n\n\n<p>Make it easy for recruiters to find your profile by uploading a\nrecent resume and personal details on job websites and portals. Continuously\napply for new and relevant jobs available both online and offline. Ask friends\nand family members to refer to a new job.<\/p>\n\n\n\n<p>Besides this, keep the option of working at a family business\nand escalating company revenue. It will help to boost your resume and develop\nnew skills.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Check_Council_Tax_Reduction_Eligibility\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Check\nCouncil Tax Reduction Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Citizens that have recently diminished household incomes or availed benefits should check for council tax reduction eligibility. The local council representative can inform the citizen of the deduction after reaching out to them.<\/p>\n\n\n\n<p>Under many circumstances, the local council would provide the option of paying lower taxes for a specific duration. Optionally, they can offer to help by allowing covering expenses for a more extended period.<\/p>\n\n\n\n<p>Alternatively, the local council might offer to reduce the\nexisting tax due to the recent unemployment. Citizens can find the local\ncouncil contact details on the official UK government website.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Start_Collecting_Money\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Start\nCollecting Money<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Clearing personal debt is an ideal method of reducing expenses\nand increasing savings. However, recovering money from people is also vital.\nLenders understand this perspective better than others.<\/p>\n\n\n\n<p>Therefore, collect money from tenants, borrowers, friends, and\nfamily members. The increased income can help to recover debt repayment faster.\nFollow government protocols for recovering debt from people if they refuse to\nmake payments.<\/p>\n\n\n\n<p>Notify the credit authorities to recover debt from borrowers\nand inform the borrower of the repercussion&#8217;s impact on their credit rating.\nUnder such circumstances, recovering money becomes easier because borrowers\nfear the loss of funds from potential lenders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%97%8F_Resolve_Bank_Overdrafts\"><\/span>\u25cf&nbsp;&nbsp;&nbsp; Resolve\nBank Overdrafts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Banks or financial institutions understand the situation of the\nborrower, especially during recent unemployment. However, it is essential to\nkeep them in the loop, especially if you have an overdraft.<\/p>\n\n\n\n<p>Many banks offer the option of removing interest on an overdraft, reducing the monthly limit but keep the existing amount, and loan for recovering partial or full overdraft. However, seeking professional advice before taking loan lenders only or overdrafts is crucial.  Besides this, switch to renewable energy sources for electricity, air, heating, etc., to lower household expenses. The green sources would also contribute towards environmental protection.\u00a0 Conclusively, these methods would help to manage money post unemployment. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent rise in redundancy due to the ongoing pandemic situation has concerned many UK citizens, especially money issues. Many [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[193,189,192,191,190],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1581"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1581"}],"version-history":[{"count":1,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1581\/revisions"}],"predecessor-version":[{"id":1583,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1581\/revisions\/1583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1582"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}