Practical tips to help you improve your credit rating and avoid expensive high interest loans
If the worst should happen and you fall ill and have to take significant time off work, there are some steps you can take to help see you through:
The first thing to do is check you are receiving all the money that is available to you.
This could come from different places so it is worth checking carefully.
From your employer, you may be eligible for Statutory Sick Pay. This is for up to 28 weeks as long as you are employed but unable to work and you earned an average of at least £112 a week in the two months before you stopped working.
The minimum sick pay you are entitled to is £88.45 a week but some employers may be more generous. You should check your contract or talk to your HR department to find out what you are entitled to.
You are also legally entitled to ask your employer to make reasonable changes to your working conditions if these would enable you to return to work. These might include:
You should also speak to your employer or pension provider if you have been paying into a workplace pension as some include sickness benefits such as early retirement options.
You might be eligible for some state benefits some of which are not well known; these include:
If you have Critical illness insurance as well as Life insurance you might be eligible for a pay-out depending on the nature of your illness. Read your policy carefully and contact your insurer if in doubt.
If you have mortgage payment protection or other payment protection policies you are probably entitled to make a claim. Again, read your documentation carefully or contact your provider. Do this as soon as possible to avoid running up non-payment penalties.
Contrary to popular belief no one wants to cut off your phone/electricity/bank overdraft. If you contact the relevant companies and explain your situation you will probably be able to work something out with them. In these cases, honesty really is the best policy.
Whilst we are a loan broker, we fully endorse responsible lending, and for people to only take on debt if it’s affordable and sustainable.
So if you are having money issues as a result of being ill, any reputable lender will only help you if you are able to show that the monthly loan repayments are affordable and sustainable for you.
We specialise in helping people with a less than perfect credit file, so if you have a source of income, a guarantor, and are able to show affordability, get no-obligation quotes from our panel of lenders.
Please only consider taking on additional borrowing if you are completely sure that you will have the means to pay this back.
For help, go to moneyadviceservice.org.uk
See our Responsible Lending Policy