You may have successfully managed to ride out the last year while others had lost their jobs, but now you might fear of falling into financial difficulties because many companies are giving up now. The unemployment rate is too high when the economy is gloom.
Most companies have become bankrupt or unable to pay to their staff, hence making many people redundant. Some who are still not letting go their employees are asking them to work on a pay cut.
Well, whether you are on a pay cut or have been made redundant, you are likely to go through difficulty making ends meet. If your employer has put on a pay cut due to Covid-19, you should ask your lender to know what they can do for you. Payment holiday does exist no longer. You are to pay off your debts despite a drop in income.
If you tell them your actual financial condition, they will likely put you on a different repayment plan, or they can allow you to make minimum repayments until you bounce back. However, this kind of support you can seek when you have outstanding online loans in Ireland. There are some other financial supports you can get when your income drops.
You cannot work because you are sick
First off, you should find out your company’s norms about the pay to sick employees. If your company has no clause about the sick payment, you have other alternatives. The Irish government is providing some monetary benefits to such employees.
For instance, if you are told to quarantine yourself or restrict your movement, you can get the benefit up to €350 per week. However, if you are ill for another reason and have been told to restrict your movement because you are medically vulnerable, you will get standard illness benefits.
You cannot wok because you have to take care of dependents
You should check what your company’s policy says about it. Some employers allow for minimal pay to those who cannot work because of dependents in their family, for instance, children. Some employers strictly follow government rules and allow their employees for some time off to look after their children and other members.
If you are jobless
If you are jobless, you can seek benefits from the government. Department of Social Protection can continue to pay you some money to help you make ends meet when you are out of work. However, you will have to meet the eligibility criteria, and these benefits will be limited for a certain period. Try to land a job as soon as possible. You can get more information on such benefits online.
What other things do you take into account when your income drops?
Although you have some benefits that you can seek from your employer or the government, it will not be enough if you do not spend your money carefully. Here is what you need to do to keep the wolf from the door:
- Create a budget
When your income drops, the first thing, you need to assess your budget carefully. You cannot afford to spend on discretionary items. Make a lean budget. It means you will spend money on essential items only. The more you cut back on, the more money you will have to spend in emergencies. Budgeting is essential to take stock of how much you have and where it is going.
- Set priorities
You should set food, medical bills, utilities and debts as priorities. If you do not pay utility bills, you will keep adding them up. As a result, your credit score will go down, and penalties will pressure your finances. Make sure that you make debt payments on time. If you have multiple debts, try to pay off high-interest debts first.
For instance, if you have fast loans in Ireland and mortgage, try to prioritise the mortgage because you can lose your home. However, it does not mean you will not pay off the former loan. Ask your lender if they can allow you to make minimum payments.
The bottom line
Of course, it can be a bit difficult to manage your expenses when your income drops. Economic uncertainties are still out there, and hence you cannot be sure about your financial condition even if now seems everything is going all right.
There are several benefits you can get from your employer or government. Yet, you should create a budget and track your spending. The more careful you are about your spending, the better it is. Emergencies can pop up anytime. It might be hard to cover all of your expenses at that time when you are out of work or on a pay cut. Therefore, try to make most of your money.