Keep your cool if you lose your job

cover – is typically taken out on loans or credit cards and enables you to keep up repayments by paying out a set amount for 12 to 24 months.

Again, payments typically start three months after earnings stop.

Short-term income protection insurance replaces a part of your income for a fixed period of time – usually 12 or 24 months.

But don’t confuse this with other income protection policies that only pay out for sickness and ill health and not if you lose your job. website at gov.uk.

The main benefit is the new-style Jobseeker’s Allowance, based on your National Insurance contributions, which you can get for up to six months.

You may also be able to get help with housing and childcare costs via Universal Credit. It’s based on household income, so your partner’s income will affect how much you will get.

ONCE you have an idea of your redundancy pay, any insurance cover, benefits, savings or other forms of income you have, do a budget.

Note what’s coming in and going out. Work out how long you can keep going without any struggle. Then extend that with some ruthless chopping and switching.

Break outgoings into essentials, like bills and food, the would-liketo-keeps and don’t-needs. Ditch the don’t-needs for now and be really tough on your would-liketo-keeps, such as subscriptions and takeaways.

Check you are not over-paying on any of your regular bills such as energy and insurances – and switch if you can find cheaper alternatives.

Remember every penny you chop off your monthly costs will add up and mean your redundancy pay and savings safety net (if you have one) will last longer. card and work out how much you need to – and can afford to – pay each month to get it cleared during the introductory term. TSB offers 29 months; M&S Bank and Natwest 28 months; HSBC 25 months and MBNA 24 months. Talk to lenders directly about any options you may have to switch to cheaper products, freeze interest or extend the term of a loan agreement to reduce the monthly repayments. During these unprecedented times, these organisations are being more flexible and have been issued guidance from the Financial Conduct Authority to help find solutions to help those struggling to manage their finances. If you have unmanageable debt, get free, independent advice from one of the debt charities. Contact your local Citizens Advice or visit citizensadvice.org.uk; call the National Debtline on 0808 808 4000; call Stepchange Debt Charity on 0800 138 1111 or stepchange.org.