Debt After Job Loss: What to Do About Debt If You Lose Your Job

Losing your job can come unexpectedly and may cause problems if managed incorrectly. Thankfully, Debt Busters has over 15 years of experience helping people just like you regain the financial security you need after losing your job.

Our team know that you want to focus on hunting for a job and regaining your financial independence. That’s why we can offer you the short-term solution you need in order to get back on your feet, no matter who you are or what background you’re from. In the past, we’ve helped people like Karen take care of her debt when she was unemployed, and we can help you too. 

Money is one of the biggest worries if you’ve lost your job or been made redundant. Adding unmanageable debt on top of this only makes your situation more stressful. It’s important to take action quickly to protect your finances.

  • Losing Your Job Can Lead To Financial Hardship

    When you lose your job, it affects more than just your career. You now have to figure out how to handle your finances in the coming weeks or even months. This is what financial hardship is about.

    Losing a job can take a toll on your health and wellness, so it’s important to take care of yourself first. Long-term plans can be changed, but you need to lay the right groundwork in the present moment.

    While this can be a scary time, realise that you have options. Even though it can feel like you’re in this alone, there are steps you can take to survive this and come out a stronger person. Your debt doesn’t have to get in the way of a brighter financial future. Focusing on the basics of budgeting will go a long way towards helping you recover from debt after your job loss.

  • First Steps to Take After Job Loss

    It’s important to take the right steps after job loss to manage your debt effectively. Once you know what path to take, you’ll feel much more confident in your decisions. The good news is you don’t have to take these steps alone. The professionals at Debt Busters are here to help you with your journey to financial wellness.

    Here are the steps to take when you lose your job:

    1. Look at your finances – While it’s hard to take a close look at your finances right after losing your job, it’s important to know where you stand financially. Write down how much you have in savings (if anything) as well as all of your debts and expenses. Include things like rent, loans, credit card payments, and so on.
    2. Check with your insurance – If you have mortgage payment protection insurance (MPPI), payment protection insurance (PPI), or short-term income protection insurance, you might be eligible for repayments for a limited period of time.
    3. Prioritise – Now it’s time to make some decisions. You’ll need to look at your debts and expenses and prioritise your payments. You likely won’t be able to pay for everything, so work out the most important areas to put your money.
    4. Create a budget – Next, make a new budget. This should reflect your new income (if any) and your current expenses.
    5. Talk to your providers – It sounds scary to contact your providers, but this is an important part of the process. Many credit and service providers have assistance programs designed to help people in temporary hardship situations. You might be able to request payment assistance, deadline extension, and other options to keep your debt and expenses under control.
    6. Stop spending – While it’s impossible to completely stop spending money, try to limit your spending to your “needs” instead of your “wants.” Cancelling subscriptions you don’t need, eating at home, and skipping expensive entertainment options will help control your budget.
    7. Find a new job – All the while, continue seeking new employment. Talk to your network to see if they have any opportunities. Work online or create your own side hustle. Every effort counts!

  • Setting Up a Plan

    These steps above are all part of your short-term plan, but they’re not a long-term solution. Things like deadline extension, limited budgets, and more are just temporary.

    You’ll need to set up a long-term plan for success, but this will depend on your own goals and financial situation. Setting up a plan might include any of the following:

    All of these things are designed to not only free you from debt sooner but also to create long-term change. At Debt Busters, we can review your specific financial situation to help decide on the plan that’s right for you.

    It’s more than possible to get back on your feet after job loss and debt. These things don’t have to define you or your financial future.

  • Contact Debt Busters Today

    If you want to get your debts under control and start to move on with your life, please contact a friendly member of our team at Debt Busters today.

    Why choose us when you need help paying bills and debt?

    • Our goal is your financial freedom
    • We do all the communicating with your creditors
    • Debt Busters has over 15 years of experience
    • Our proven methods will allow you to stay on top of your finances
    • We’re upfront and transparent about every step of our process

    Losing your job can be traumatic, but thanks to Debt Busters you’ll get the peace of mind you deserve when your bills and debts are under control. To get you back on the path to financial freedom, we tailor all of our different strategies to suit your unique situation.

    No matter how serious your situation may be after losing your job, Debt Busters are here to help. Our expertise, proven methods, and specialised processes make us the perfect partner to turn your financial situation around.

    To confidently move forward from debt after job loss, call Debt Busters now at 1300 368 332.

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Debt Busters is an Australian owned business which was founded in 2005 - since then we have been able to help thousands regain financial control.

Debt Busters prides itself on providing a dedicated Client Service Manager to work closer with you and provide a higher level of customised service about your situation.