I’ve been furloughed, am I at risk of redundancy?
If you’ve been furloughed from work it’s because your employers are taking steps to deal problems caused by the coronavirus outbreak.
Being furloughed doesn’t necessarily mean you’ll be made redundant in the future. You’re still on your employer’s payroll, however, and you’ll be able to return to work when your furlough period ends.
Read our guide to coronavirus and your finances for more information.
Why are unemployment and debt problems linked?
Unemployment can devastate the finances of any family, especially if they're already struggling with unsecured debt. This can often leave a family feeling financially trapped.
Being on limited income means that you must prioritise your living expenses until things improve.
What can I do to help my finances?
It's important that you start dealing with your debt problem, and budget effectively, as soon as possible.
- Talk to your creditors and explain you're struggling to keep up with repayments
- You may be able to apply for Breathing Space, which means you get some time and space to deal with your debts, if you've had debt advice
- Avoid taking out any more loans
- Stop further use of your credit cards or adding to credit card debt
- Try not to increase your overdraft. Many people do this to tide them over between jobs, but overdrafts can be very difficult to get out of, even when you're back in work
- Talk to your bank and see if they can help with any
debts you have with them. If they’re not able to, move to a
basic bank account
with a provider you don’t owe money to.
- Avoid taking out any debt consolidation loans
- Avoid taking out any loans secured against your home
In addition to not taking out any further credit, we'd recommend you:
- Use our benefits checker to see if you're getting all of the benefits you're entitled to
- Make your mortgage provider aware that you're not currently working, as you may qualify for government assistance
- Talk to Jobcentre Plus about how you can claim benefits to pay your rent and council tax until you're back in work
You’re not alone - debt help is available
Remember that there are millions of people in the UK having problems with their debts, so you needn’t feel ashamed or embarrassed. If you're suffering under a burden of debt, please don't hesitate to get free, expert debt help and advice from us.