Navigating employment or studying while dealing with debt can be difficult, but there are ways that you can make it more manageable. Read on to find out more.
Can being in debt affect my job?
Debt can affect almost every part of our lives. If you’re finding it hard to keep on top of your payments, struggling to find the funds for next month’s bill, or already behind and being chased by creditors, you’ll likely be feeling the strain at home and at work.
Worrying about debt can not only exacerbate existing mental health concerns, but it can also disrupt your sleep. Spending nights staring at the ceiling can also make work even harder to navigate. You might find yourself wading through your 9 to 5, lacking concentration, making mistakes, or being in an irritable mood with your colleagues.
This might lead to feeling that you’re unperforming or could even be at danger of losing your job. If you’re already finding it hard to keep up with your debt repayments, worrying that you could lose your income could increase your anxiety even more!
On the other hand, taking on extra shifts at work or starting a second job to help you boost your income can also pile on the pressure, tiring you out both physically and mentally.
Throw taking care of the family, keeping on top of the household chores, and feeling frustrating by debts that don’t seem to go down into the mix and it’s unsurprising that your job performance can start to suffer.
Should I tell my employer I’m struggling with debt?
Your relationship with your employer is personal and only you can know how they might react to hearing you’re in debt. If you have a good relationship with your line manager, consider talking to them about your situation. They may not be able to help you tackle your debt, but they might be able to ease the work pressure by moving a few projects off your plate or prioritising your requests for overtime.
If you’re not close to your manager, the HR team could be a good place to go instead. They should keep your conversation confidential and may be able to direct you to sources of support such as an Employee Assistance Programme (EAP).
Will debt management solutions affect my employment?
If you’re in severe debt and have decided to declare bankruptcy, certain professions will be temporarily unavailable to you. Until your bankruptcy is discharged, you won’t be able to work as a charity trustee, company director, insolvency practitioner, solicitor, estate agent, or consumer credit licence holder.
Other types of debt management solution shouldn’t stop you from working as normal unless you own a business and may be looking for finance for your company. Your credits should also not disclose your debt status to your employer, even if you’re working with them as part of a Debt Management Plan (DMP) or Individual Voluntary Arrangement (IVA).
If you’re looking for support with managing your debts, our friendly team of experts is here to help. They can guide you through the different debt management solutions available, help you find the right option for you, and explain how it might affect your employment.
Can being in debt affect my studies?
Being in debt can make the pressures of studying harder to navigate. Whether you’re studying full or part-time, learning and taking on new skills takes a surprising amount of energy. It probably won’t surprise you that your ability to learn effectively can suffer if you start losing sleep over your finances. It can also be hard to find work that fits around your education so that you can start earning and paying down your debt.
If you’re finding it hard to manage your finances while studying, don’t be afraid to speak to your university or college. They may be able to provide extra assistance like grants and counselling services. Your student union may also have useful resources available.
When will I start repaying my student loan?
One of the most substantial debts that most students have is their student loan. This shouldn’t be something that you worry too much about during your studies as it doesn’t need to be repaid until your education comes to an end.
Student loans are repaid automatically through the tax system once you start earning more than a certain amount. These payments won’t start being taken until the April after your graduation – and won’t start at all if you’re unemployed or not earning above the threshold – and will stop once the loan is fully paid.
Your student loan also won’t be marked on your credit report, but it may affect your affordability if you try to apply for a mortgage or other type of finance agreement.
Navigating work and debt? Our team at My Debt Plan is here to help. Give us a call on 0161 8260 585 or send a message here