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Unemployment, job loss and reduced hours

Many people find themselves trapped by debt after becoming unemployed. This can often feel like a very difficult situation, and can be hugely stressful.

Unemployment can happen to anyone. If you're unemployed, you're very likely to find yourself on a limited income, which can make it very difficult to deal with things such as unsecured debt. We can give you the support and information you need to get you back on track.

Unemployed and need help with debt?

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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.

  • 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
  • Move to a basic bank account to stop your bank collecting on any debts you may owe to them by right of setoff. 
  • 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.

It's also recommended that you:

  1. Use our benefits calculator to see if you're getting all of the benefits you may be entitled to
  2. Make your mortgage provider aware that you're not currently working, as you may qualify for government mortgage assistance
  3. Talk to the Jobcentre about how you can claim benefits to pay your rent and council tax until you're back in work

Get debt help if you've lost your job

Millions of people in the UK have debt problems. If you're suffering, get free, expert debt help and advice.

Visit our contact us page to find out how you can talk through your options with one of our advisors. Alternatively you can use our online advice tool Debt Remedy.