How to avoid debt if you're on flexible hours

Working in a job that means your income changes from month-to-month is a reality for a significant number of people in Yorkshire, and research shows that there could be a link between this type of employment and struggling to repay debts.
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This can result in a variable income that’s hard to rely on, and make it difficult to budget for regular bills. And a third of people in this type of employment have struggled to keep up with their debt repayments because of their changeable income.

Even more worryingly, two in five said that their working hours meant they struggled to keep up-to-date with their utility bills – which are important priority payments.

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If you’ve found that uncertainty surrounding your working hours and income has affected your ability to keep up with regular bills, you certainly aren’t alone. Not knowing for sure how much you’re going to earn can really hinder your ability to budget accurately and keep on top of things. If you’ve also got debts to repay, you may find that a significant portion of any income you do get goes on those debts before it can go towards anything else.

So what can temporary workers do to tackle the problem? The good news is that there are ways to reduce the impact that flexible hours has on your finances.

It might be difficult, but it’s always a good idea to put something away in a savings pot whenever possible. When you do find yourself in work, make sure that you put enough money aside to cover essential bills like food, rent/mortgage, utility bills and council tax. After these have been accounted for, you can take a look at what you have left and the best thing to do is to save some of that money if possible.

By having a ‘savings buffer’, you can at least give yourself a little breathing space, should you find yourself low on hours one month.

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When you’re working out what your money should go towards, don’t forget to prioritise your payments correctly. Certain payments like your council tax, rent/mortgage, secured debts and utilities are more important than others. This is because the consequences of missing these payments are pretty serious – for instance, you could lose your home if you don’t pay your mortgage or your rent.

So even if you find yourself in the tricky situation of not being able to pay everything one month you should always put these payments before your unsecured debts – like credit card and loan repayments.

If you can no longer manage your debt repayments because of unpredictable working patterns, you don’t have to struggle on alone. There are lots of free sources of debt and budgeting advice – like the Money Advice Service that can make all the difference. Getting the help you need should mean you can work through any difficulties and get on more secure financial footing.

Debt Advisory Centre: 0161 871 4881

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