furloughed and in debt
Furloughed and in debt COVID-19 has had long-lasting, negative effects on the UK economy and many businesses have either had to fire or furlough their employees.
If you have been furloughed for months, it may seem like paying off your debts is impossible as you will have only received 80% of your usual wage. It is, however, not impossible for a furloughed employee to pay off their debts, here’s how…
1. Create a new monthly budget
Create a new monthly budget that accurately reflects your new situation. For example, you may wish to increase your monthly savings by placing the money you would usually spend on evenings out, eating at restaurants, etc into your savings.
2. Find the 20% elsewhere
To ensure you can keep up with your debt repayments, try to find the 20% of your unpaid wage elsewhere in your finances. You could, for example, cancel music or streaming services you rarely use or create more frugal meal plans and shopping lists. This will ensure you do not fall behind on debt payments.
3. Apply for a debt consolidation loan
Debt consolidation loans simplify all of your debts into one, unified loan. This makes it much easier to create a monthly budget and ensures there is no confusion about how much you owe and when you need to pay it by.
Debt consolidation loans are particularly useful for furloughed employees as a consolidated loan will help you to manage your limited wage more effectively and prevent you from feeling as though you are drowning in multiple unpaid loans.
4. Plan for the future
Think about your future plans and goals, this may involve buying your own home or starting your own business to ensure you have total job and housing security. A debt consolidation loan can help you to raise your credit score, ensuring that you will be able to secure a business loan or mortgage in the future without having to pay overly high interest rates.
To learn more about how to save money during a pandemic and how debt consolidation loans can help furloughed employees do not hesitate to contact Debt Consolidation Loans today.