Experiencing unemployment while undergoing debt review can be stressful, but you can maintain financial stability and relief during difficult times with the right strategies to overcome unemployment.
We’ve gone through some of the best practical steps to help you navigate this period, below:
Communicate with Your Debt Counsellor
If you lose your job while under debt review, the first step is to inform your debt counsellor. They can negotiate adjusted payment terms with your creditors, possibly reducing your monthly payments temporarily.
Debt counsellors can also provide guidance on applying for payment holidays, which can give you breathing room while you search for employment.
Reassess Your Budget
Review your financial situation and make necessary adjustments to your budget. Focus on covering essential expenses like rent, food, and utilities, while cutting down on non-essential spending.
By reallocating your available funds, you’ll be able to maintain your debt review payments, even if they are reduced.
Seek Temporary or Freelance Work
While searching for permanent employment, consider temporary or freelance work. This can help generate some income to cover daily expenses and continue making reduced debt review payments. Even small, consistent income streams can alleviate financial pressure.
Access Unemployment Benefits
If you’re eligible for unemployment benefits in South Africa, apply for them immediately. This income can help cover your basic living costs and contribute to your debt review payments. These benefits can serve as a lifeline while you search for new job opportunities.
Avoid Taking on New Debt
In times of financial stress, it may be tempting to take on new debt, but this will only worsen your financial situation. Debt review protects you from accumulating more debt, so it’s crucial to avoid payday loans or credit cards during this period.
Focus on Job Search Support
Use this time to actively seek job opportunities, polish your resume, and network. Many debt counsellors and financial advisors also provide job search resources or referrals to services that can help you secure new employment faster.
Maintain a Positive Mindset
Dealing with unemployment and debt can be emotionally overwhelming. Stay focused on the long-term benefits of debt review, which aims to alleviate your financial burdens and set you on a path to financial recovery.
National Debt Counsellors offer emotional support and guidance throughout the process, helping you remain on track despite financial setbacks.
Benefits of Debt Review During Unemployment
Debt review with National Debt Counsellors can be especially beneficial during periods of unemployment as it protects your assets, prevents creditors from taking legal action, and reduces the pressure of high monthly payments. This provides a safety net while you regain employment, ensuring that your financial recovery is manageable and sustainable.
Debt review is one of the most effective strategies to overcome unemployment-related financial stress, ensuring that even in the toughest of times, you are comprehensively protected from the worst financial consequences.
