What is income shock?
Income shock is a sudden drop in your income that has negative effects on your life. Income shock can happen for several reasons, including:
- divorce
- redundancy or demotion
- accidents or illness
- changes to benefits
Income shock can mean you struggle to pay your bills, which can be very stressful. We also understand that the cost of living crisis can play a role in making income shock worse.
How to prepare for income shock
Income shock can be a very unexpected issue, but there are some ways you can financially prepare yourself:
- Keep a rainy-day fund: having an emergency fund stashed away for harder times can help you lessen the squeeze caused by a lowered income.
- Get Payment Protection Insurance (PPI): PPI can be helpful when you have a loan, credit card or similar credit agreement.
- Work with a budget: create a budget plan to help track your spending. Make sure you include things like your monthly expenses and any debt you must pay.
Help and support for income shock
We're here to support customers who might be experiencing income shock and the effect it can have on everyday finances.
if you're experiencing income shock and/or worrying about future payments, let us know by getting in touch as soon as possible. We can offer help and support based on your circumstances.
More resources for income shock
There are several online resources you can use for help and support with income shock, including:
Contact us
There are different ways you can contact us to find out more about the support available:
If you have hearing or speech difficulties, you can use the national text relay service, Relay UK, to act on your behalf. Everything is completely confidential, including the details you share for identification and verification questions.
More support
Head to our Help and support hub to find more resources or check out the links below.
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