One of the biggest fears of anyone living from check to check is that they lose their job and are now faced with an unemployment check that simply does not cover their debt load.
If this happens, it will not take long for panic to set in, as you quickly realize you have a lot more scheduled to go out than you have coming in.
Here are some ideas to help prevent this from happening.
Most credit cards and loans offer insurance against loss of employment.
The fee for this is often very small and it gives the assurance of your debts being paid while you are out of work.
However, most of these will have a provision that states the policy will only go into effect if you lose your job through no fault of your own.
In other words, do not get fired for fighting with a supervisor or unsatisfactory work!
Even during the most difficult of times, it is important to create a rainy day fund. Putting even £25 a week to the side in some type of interest bearing account will make a significant difference over time if you lose your job. The small savings may mean the difference in being able to make your payments or having to decide between groceries and electric.
Do not wait until the last minute to be proactive with your creditors, either. As soon as you find out about the loss of employment, contact all credit card companies and lenders to inform them of the problem. They may be able to temporarily lower payments or even allow you to skip the next payment while you seek employment.
Even if one or two of them alter payment structures, it can make a big difference in your monthly budget.
If you are up front and honest with them, they are more likely to work with you to prevent missed or late payments. If you re get resistance as the first level of customer service, demand to speak to a supervisor. Keep going up the chain until you get someone that is willing to work with you.
Eventually, you will probably find someone that is both sympathetic to your cause and that has the authority to restructure your payments.
