But the good news is that if you’ve been made redundant, there is help available. Here’s what to do.
Claim under any protection you may have
The first step is to check if you’ve got any protection in place that will cover you if you’re made redundant such as home loan payment protection insurance. If you do, check your policy to see if you’re able to make a claim.
Speak to your home loan lender
Your home loan lender will be able to give you advice on how to pay your home loan, and the different support options available to you. A popular option they may suggest is to take out a home loan repayment holiday, also called a freeze or a deferral.
Taking a home loan repayment holiday means the pressure on your finances may be relieved in the short term. But remember, you’ll still be charged interest whilst you’re taking it. This means the overall amount you pay for your home loan is likely to increase.
Also, taking a payment holiday could have a bearing on future lending decisions. Whilst this then may be an option to bear in mind if you’re struggling to make home loan repayments, you should always consider the long-term implications of any financial schemes you take advantage of.
Claim any benefits you’re entitled to
If you have lost your job, then ensure you claim any benefits you’re entitled to. There are online calculators that can help you see what you’re able to claim.
And if you’re on certain benefits and you’re struggling to pay your home loan, there may be government assistance available.
Do everything you can
And if you’re facing financial hardship it’s more important than ever to make the most of every penny you have.
Go through your monthly budget carefully and see where you can slash your spending.
Look at ways to maximise your income too (is there any temporary work you can get to keep you going while you’re looking for your next position?) Also have a clear out at home to see what you can sell that you don’t need any more to raise funds.
Don’t be afraid to seek help
If you’re still worried about your finances then you can seek free and confidential debt advice from a debt charity.
If you’ve lost your job and want a chat with people who are here to help, our expert brokers are always here.