Do You Have An Emergency Fund To Avoid Going Into Debt?

Part of good financial planning is to have a good emergency fund in place to cover unexpected financial events.

Typically, it’s recommended to have a stash equivalent to 3 to 6 months of salary. The most obvious benefit is of course to prevent you going into debt and thereby debt collection.

The professionals here at iCollect have seen every scenario of people falling into debt collection, below is a common list of how easy it is to find yourself in a financial crisis.

Loss of job, a business or being made redundant?

If you find yourself in the traumatic position of losing your job or business, or if you are caught in the collateral damage of a business laying people off; you will not only have to deal with the practical implications, but also the emotional implications.

It’s important to act from a position of strength as getting a new job can be a slow process and slipping into debt is easily done. Many recruitment companies have seen the average time to hire increase from 28 days to 68 days. Employers’ processes can be lengthy between applications coming in, reviewing CVs, short-listing, interviewing and getting partners together if they are involved in the recruitment and decision making process.