How to Overcome Financial Difficulties during a Period of Unemployment

At first glance, unemployment may not seem like a considerable issue in the UK. After all, the number of citizens without employment fell by 65,000 to just 1.36 million during the second fiscal quarter of 2018, representing the lowest level of joblessness for 40 years.

Still, there’s evidence to suggest that a large number of newly added job roles are temporary or part-time in their nature, while a core group of people continues to struggle in their seemingly endless quest for work.

Spending significant periods out of work can cause huge financial issues, making it difficult for people to meet their financial liabilities over time. Below, we’ve included some steps that will enable you to overcome these issues and achieve greater financial security.

1- Simplify the Repayment of your Debts

In instances where you owe considerable sums of money to various creditors, it can be difficult to manage your debt and repay this over time.

You may also struggle to cope with the associated interest repayments in this instance, as these can accumulate significantly over time and gradually prevent you from reducing the original debt.

The key here is to simplify the process of repaying your debts, and there are a couple of ways to achieve this. You could access paid and managed bank accounts through lenders such as Think Money, for example, which help you to make regular repayments and improve your credit rating.

Similarly, you could look to consolidate your debts into a single monthly repayment, by. borrowing a lump sum to settle your outstanding liabilities and dealing with one creditor going forward.

2- Adopt a More Frugal Lifestyle

Ultimately, adopting a frugal lifestyle is always sound financial advice, whether you’re relatively well-off or struggling to make ends meet during periods of unemployment.

The key is to create a frugal and consistent spending plan that is adhered to at all times, while also attempting to make savings by reducing the cost of food, groceries, and utilities.

These savings will accumulate considerably over time, and this approach proves far more effective than striving to eliminate big-ticket purchases or one-off items of expenditure.

Your ability to budget is also crucial to this, as you look to balance your incomings and outgoings while optimizing the amount of disposable income available to you on a monthly basis.

3- Develop Transferable Skills that Make you More Employable

The employment market has changed considerably over the course of the last 20 years or so, thanks primarily to the relentless pace of technological advancement.

This has rendered some industries largely irrelevant in the modern age, while also creating a significant generation of people whose skills have become outdated.

If this applies to you and remains the reason why you occasionally find yourself out of work, you may want to consider developing more relevant skills that are in-demand among the current generation of employers.

You may also want to develop some transferable skills, which can be applied to a number of different job roles and industries and improve your chances of finding work at any given time.

Umar Bajwa
Umar Bajwahttp://www.theroom.com.au
Umar Bajwa is a young business enthusiast and content coordinator loves to write about Business, Technology, Life Style & Digital Marketing


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