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Thousands of people in UK face unemployment issues and the main problem that they come across is the management of debts while they are not left with a job. The expenses are never ending and the person finds himself in a bad situation. It is thus important to learn unemployment debt management and keep a check on your expenses in this demanding time. Here are some steps that you need to take to manage your funds effectively.
You will have to figure out what assets and liabilities you have. You can prepare a financial balance sheet and note them down there. You will also be able to see what expenses you can deduct. When you prepare the balance sheet, it is important to note down all the bills and payments that you have to make. Only then will you get the real picture. If you cannot make full payments for your bills, make sure that you pay certain amount and not skip any of them. If you do so, it will make the situation worse.
You can get in touch with your creditors and let them know about the situation. You can ask them if they can enter a debt management plan so that you can pay them in an easy manner. Most of the creditors will accept your demand and will suggest you a payment plan. You should have written agreements so that you have a proof with you. You immediately need to stop using your credit cards for payments. All they so is to pile up more debts on you and you also have to make extra payment in the form of the interest. If you have some items that you don’t need, you can sell them and get some cash.
Unemployment debt management is important and you should not ignore your bills. If you do, you will have to pay the late fees. You may have to face threats from the creditors if you do not make payments on time. You can make some arrangements with the creditors in order to avoid such threatening calls from their side that add up to your stress. Your creditors will offer you the best plans to get you out of the situation. If you like what they suggest, follow their advice and enter the payment plan. When you are in such a situation, you need not take any loans as they would just add up to your problems. The interest rates on loans are high and you will face more trouble.