Home Finance How does one survive living costs with delayed unemployment benefits?

How does one survive living costs with delayed unemployment benefits?

Loans for the unemployed
Loans for the unemployed

Individuals faced widespread unemployment during the COVID times. The government launched universal credit or unemployment benefits to support such individuals with necessities. Thus, around 95% of people filing for unemployment benefits got the amount within 14 days.

However, the percentage dropped significantly to 45% after the sanctions. It is due to fraud prevention and other techniques to restrict unnecessary applies. It equally impacted the ones in genuine need of it.

Delays in getting unemployment benefits leave many people without savings and income. Moreover, some reasons for delay or rejection take long to resolve.

Possible reasons for the delay in receiving unemployment benefits

The following situations may be the cause of delay in receiving benefits for unemployment. Analyse whether there could be possibilities of any of these. Check whether your application for government benefits is just or not.

1) Long processing time

The respective agencies perform due diligence before approving any profile for government benefits. It may be time-consuming as the authority sets strict standards for the applicant to pass through. It helps them avoid fraud.

2) Deductible income

Certain income that a claimant receives gets deducted from his account. It could be the income or severance pay. It requires the authority to cross-check the same with the employer. Thus, until the review, the authority puts the application on hold.

3) Leave job on will

If the claimant or the employer reveals that the person left the employment out of his choice, it disqualifies him. He may not be eligible to receive benefits in that case.

4) Missing or incomplete information

Missing details or incomplete information on the application cause is another cause of the delay. You may err in mentioning your Social Security Number, birth date, home address, etc. The authority may request you to re-fill the form in that case.

5) Appeal to cross-check the ineligibility

If you are found ineligible to get unemployment benefits, you can appeal the authority to re-check. It requires additional time and research. It may take around 21 days for the process to complete.

These are some possible causes for the delay in receiving unemployment benefits. However, with minimal savings at hand and no benefits, you may struggle. Let’s analyse the ways to manage financial and lifestyle requirements until then.

5 Ways to Manage Finances Until You Receive Benefits Payment

If you face delay due to any of the reasons mentioned above, take action. Contact your state unemployment office and enquire about the status. Additionally, stay informed and analyse the possibilities of stolen benefits.

The below-listed strategies may help you counter essential expenses until then:

1. Analyse your budget and savings

It is the first thing to do after getting no response from the unemployment benefit authority. You must wait for their response and analyse savings. It will help you know when you can survive without benefits. It will also help you make a budget accordingly.

Calculate the amount from your previous salary drawn. If you have no savings from there, check alternative income sources. It could be from your contribution to bonds in the form of dividends, income from part-time income, rental income, etc.

After getting one, calculate the amount of the crucial expenses like- groceries, medicines, insurance payments, rent, etc. If the amount is higher than what you own, prioritise expenses according to urgency.

If the amount surpasses expectations and you cannot ignore the expense, facilities like loans for the unemployed may help. It is essentially for individuals with low income and instant financial need. You can finance your requirements with this loan. No, it would not be troublesome for you as you never get more than what you can afford comfortably. In severe cash need, you can rely on these loans.

2. Save even with low finances

Creating a budget is the best way to reduce unnecessary expenses and save money. Identify discounts, coupons, and flash sales to buy products cheaply. You may find discounts on groceries, medicines, electricity subscriptions and other necessities. Resort to a low-key lifestyle until the finances improve. It will help you keep some for emergencies.

Be it £100 or just £20, save it. It will help you counter other priority expenses. For example, even if you save just £20 per month, you can collect around £120 in 6 months. That’s a lot in circumstances like unemployment.

3. Find ways to earn more

Improving cash flow means gaining flexibility in finances and savings. Identify the gig working economy to get the best jobs that suit your preferences and expertise. You can spot multiple platforms providing gigs for the short term. Explore the authentic ones and choose the best jobs to apply.

Apart from this, check for some temporary job support. Many firms belonging to industries like construction host short-term projects. Check such industries offering temporary work for 4-6 months. It will help you improve your income and manage finances easily until then.

Moreover, this effort on your part increases the possibility of gaining unemployment benefits quickly. It is because the authority analyses the efforts one puts into gaining a regular or part-time job as an unemployed. Thus, it may also prove positive from the universal credit point of view.

4. Look for other assistance programs

Apart from unemployment benefits, you may check other benefits you may qualify for.  It will help you reduce costs over daily expenses and improve your savings. You can utilise these savings for the job commute or related requirements. Here are some assistance programs by the government for the unemployed and low-income people. Check the eligibility criteria for each before applying:

  1. Maternity pay and benefits
  2. Benefits for parents with disabled children
  3. Childcare support
  4. Tax Credits
  5. New Style Jobseeker’s allowance
  6. Housing benefits
  7. Help with rent and mortgage costs
  8. Council tax reduction support
  9. Pension credits

Identify these schemes and their usability. If you find these useful, leverage the support immediately. It makes money management easy.

5. Negotiate on debts with creditors

Clearing debts while unemployed is challenging. One struggles hard to ensure some savings. Thus, you may not save enough to finance the debts. However, ignoring it is not a good idea either. It is because if you stop making payments, the interest costs and penalties rise. It may further make the debts unaffordable for you. The best way to tackle it would be to negotiate the terms with creditors. If you share a sound relationship with your lender, you can negotiate.

Alternatively, analyse the best debts that you can clear now. It may not be possible but try to identify your income sources and work harder for a month to earn more. It will help you pay some of your debts on the list.

Eventually, it improves your credit status and makes you eligible for hassle-free short-term loan assistance. It enables you to manage your finances independently and qualify for loans like very bad credit loans with no guarantor from a direct lender nearby. You can use it to consolidate debts if you cannot pay it all. It will impact your finances more positively than clearing a loan individually.

Bottom line

It’s challenging to figure out how to budget when you are unemployed. Moreover, with unemployment benefits on halt, it becomes challenging to meet expenses. These tips may help you decide the right move and finance your needs wisely. Determine your budget and ensure a low-key living with track over new the best job opportunities. It will help you improve your finances and re-track your finances.






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