Losing a job can be very difficult. It brings out a whole range of negative emotions. Thinking about mortgage, personal loans, credit card repayments, and other debts can make matters much worse. However, you shouldn’t lose any of your sleep because there are some solutions. These five simple suggestions should help you through this hard time in your life.
Dive Into Your Savings and Prioritise Expenses
Now is the time to check all the money you saved over the years. Look at all the figures in your savings and current accounts, then add them up. Once you have the total sum of money, calculate your monthly expenses.
Start by looking at the most essential items, such as groceries, utilities, and rent. You must have enough money for all of these. Consider asking your family or friends for some cash to keep you rolling till another job opportunity comes along, or find a temporary small job to make ends meet for a while.
Note Down All the Pending Debts
For starters, you should make a list of all the debts. It could be car loans, mortgages, credit cards, utility bills, personal loans, or any other obligation. It should include the names and the total amounts you need to pay back. You also need to note down the costs you pay back every month.
Prioritise these debts to know which ones need to be paid off immediately. Mortgage payments are essential as you could lose your home if the payments aren’t continued. Whereas credit card companies can only take you to court and demand payment, which you can pay in affordable plans.
Use Your Coverage Policies
Several policies can help you through these tough times. However, they may only be applicable if you had gotten these while working a job.
Short-term Income Protection Insurance
It can cover your lost income. It might not give the entire amount of your former salary, but it can cover you for a period of 12 to 24 months.
Payment Protection Insurance
It can help you cover the credit card bills for 12 to 24 months. It might only partially cover the costs, but it will make a big difference.
Mortgage Payment Protection Insurance
It can be very beneficial, as it covers the entire amount of mortgage payments while you are unemployed.
Many people in Scotland have this coverage without their knowledge. They are included in several other policies, which is why you should consider looking into your coverage.
Create A Budget To Pay the Money Your Owe
After going through all the essentials, you need to figure out if there is enough to pay back the loans.
If there isn’t, look into getting a debt arrangement scheme. It is an excellent program that allows you to pay back at a more affordable rate. You will be protected from any legal actions from the lenders, and your possessions will also be safe as long as the payments continue. The repayment plan varies considerably depending on how much you can pay and the amount of debt you are under. It is available for Scottish citizens and can be very crucial for getting through these times. You can click here for more information.