Category Archives: Income shocks

How to start an emergency fund

posted by in Budgeting, Debt, Income shocks, Money saving 2 Comments

So you’ve made the usual New Year’s resolutions. You’ve resolved to go on a diet, take more exercise, take up a new hobby and stop drinking.

There’s a lot of pressure that comes along with keeping a resolution. One minor slip-up, and it can feel like it’s all come crashing down and there’s no point in persevering with it. There is, however, one resolution that you should make and keep this year: start an emergency fund.

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7 ways to cut your medicine costs

posted by in Budgeting, Income shocks, Wellbeing Leave a comment

Good health is something we all value – you can’t really put a price on it. Well, that’s what people say, but it’s not entirely true.

In 2014, illness was listed as the fourth biggest reason our clients gave for getting into debt. There can be lots of financial consequences of falling ill, like having to take time off work, make alternative travel or childcare arrangements, or shell out money on prescriptions.

Whether you have a long-term or short-term illness, getting sick can have a huge impact on your finances, especially if you’re already living to a strict budget.

The good news is that there are ways to help lower the costs associated with illness, and in some cases even get rid of them completely. Why cough up more than you need to?!

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“It completely destroyed my life”: James’ story

posted by in Client stories, Credit cards, Income shocks, Payday Loans 1 Comment

Lots of people use credit in their day-to-day lives, and because they’re keeping up with the payments, trouble never seems like it’s round the corner. But that’s the thing about credit – it’s not a problem, until one day it is.

James* from Bristol had always stayed on top of his debts. He had a credit card with a small credit limit, and a car loan, which he regularly made payments towards. But things changed quickly when James developed a back problem which meant he was signed off work for months at a time. When his period of sick pay ran out, he started to receive Statutory Sick Pay.

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“If I didn’t pay then the bailiffs would be sent”: Faye and Nick’s story

posted by in Bailiffs, Client stories, Council tax, Income shocks Leave a comment

Contrary to popular belief, most people don’t get into debt because they overspend or live beyond their means.

According to our recently released Statistics Yearbook 2014, the biggest cause of problem debt among our clients is unemployment. Just under a quarter of clients tell us it as the main reason for their debt, with a further 12.8% saying they got into debt after experiencing a drop in income.

These income shocks could happen to anyone. In May 2014, it happened to Nick and Faye* from Birmingham.

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How I supported my partner through redundancy

posted by in Income shocks, Redundancy Leave a comment

You can get through this by working together

You can get through this by working together

Redundancy is far from a pleasant thing to deal with. That’s why it’s important that a person going through redundancy gets the support they need from their partner – emotionally as well as financially. How do I know this? Because in 2012, out of the blue, it happened to us.

I remember my husband telling me he’d been made redundant like it was yesterday. He looked so worried, so uncertain of what lay ahead. We hadn’t had any major money worries since we were students, and now it would be up to me to keep us trucking along until he found work again. I had this dull, heavy feeling in the pit of my stomach thinking about how we would cope.

Thankfully my hubby was able to find work within a few months, but not before we learned some very valuable lessons about our finances during his time out of work.

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Borrowing to cover job loss or ill health (debt danger sign #5)

posted by in Debt Awareness Week, Income shocks 1 Comment

Mini Graphic 5As part of Debt Awareness Week we’re discussing the five danger signs to help you avoid them, or if you’ve tried to deal with your finances in this way, how to get help sooner.

One of the more unfortunate danger signs is using a debt to cover living costs following unemployment or ill health. Having a sudden drop in income will always be a huge blow but for some it can be worse than others.

Relying on credit to survive can seem like a lifeline but it can actually make things much worse.

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Ellie’s friends

posted by in Income shocks, Wellbeing Leave a comment

This is a special guest article from our friends at the Eleanor Rose Foundation, established in 2012 in memory of Ellie Jeffery, who died of breast cancer aged 29. The MoneyAware team have been sponsoring her friends this month, in a concerted effort to raise money and awareness for the charity.

Ellie's legacy lives on through the Eleanor Rose Foundation

Ellie’s legacy lives on through the Eleanor Rose Foundation

Ellie was diagnosed with breast cancer in 2010 and the following year she discovered that the cancer had spread to her lungs, liver and bones.

During this time Ellie began to write a blog called ‘Written Off’, which quickly gained a large following thanks to her frank, funny and deeply affecting descriptions of her life with cancer.

Her blog even featured in various newspapers and magazines.

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