During the coronavirus outbreak, many industries have been affected by the lockdown. Some companies had to close their doors, while others had to reinvent themselves. Therefore, many employees lost their jobs to Covid-19. According to the BBC, the unemployment rate in the UK was 14.4 percent in May. The number of people receiving unemployment financial help was over 2 million.
Those people unemployed due to the pandemic may feel frustrated and desperate. But there’s always a solution. If you’re one of these people and you’re going through the same emotions, we’ve created a guide to help you.
Unemployment benefits are very helpful in these situations because they can save your finances from collapsing. However, you’d only have access to them if your employer lays you off or furloughs you. If you quit or are fired, you may not qualify for these benefits.
During the coronavirus outbreak it’s easier to qualify since there are other reasons to apply for this help. For example, you could request unemployment benefits if your employer temporarily lays you off, if he reduces your hours, or if you are not working to avoid getting the virus. Besides, you can also apply if you’re taking care of a family member who has Covid-19 or you’re self-employed with low income.
Unemployment benefits usually consist of a weekly payment between $200 and $700 depending on the state where you live.
It’s essential to spend your money smartly. To keep your finances safe, you must cut expenses. It’s also crucial that you find a way to replenish your emergency fund. This way, you’ll be able to continue having a good amount of money in your emergency fund.
If you have some debt, you must pay even during quarantine. It’s essential to find alternative sources of income that allow you to pay the debt without using your funds.
To cut expenses, consider cancelling any unused subscriptions, avoid buying unnecessary stuff, and start cooking meals at home instead of ordering food.
When you don’t have a steady paycheck, your outflows may exceed your inflows. Therefore, it’s very likely that you can overdraft your account if you don’t handle your finances properly. However, many banks are now suspending overdraft accounts during the coronavirus, which is a total relief for some people. Yet, you should always check this with your bank to make sure you don’t overdraft your accounts.
Even if you are unemployed, you may still have to pay mortgages for your car or your house. However, most lenders and financial companies are offering mortgage forbearance, which will allow you to continue paying your loan, but flexibly.
This isn’t an ideal situation. However, it can help you overcome debt so you don’t spend your funds. Besides, this also applies to student loans. Whether you are doing a bachelor’s degree or taking a coding bootcamp, your credit may be automatically changed to an administrative forbearance.
The pandemic can be a tedious and very frustrating situation, especially for those who have lost their jobs. However, we should not neglect our mental and physical health. If you feel like this is too much, talk to someone, go out for some fresh air, and do the things you enjoy. This way, you’ll be able to think straight, and you’ll be taking care of your health.