How long could YOU manage?

Have you ever given any thought to how you would manage if you were suddenly out of work, whether through illness or redundancy? If recent research is anything to go by, it may be as little as one week.

Seemingly, only three in ten adults can fall back on savings of £249 – equivalent to one week’s average take-home pay. Even worse, 20% have no savings at all. (Source: thisismoney.co.uk, 14 October 2010.)

This perception that many people have no financial safety net may be supported by another worrying development reported by Shelter – the housing and homelessness charity. Research conducted by Shelter shows that more than two million people have resorted to using a credit card to pay their mortgage or rent in the last 12 months – a staggering increase of nearly 50% in a year. So what steps can you take to ensure you can pay your mortgage if you can’t work? As well as building up a source of rainy day money, you should perhaps consider Accident, Sickness and Unemployment cover (ASU).

As the name suggests, ASU is designed to help you meet your mortgage payments should you be out of work because of accident, sickness or unemployment. This could be the difference between paying and not paying your mortgage while you are recovering or looking for employment.

If you have any concerns about how you would pay your mortgage if you’re not working, contact Graham Lear your local (Bovey Tracey based) Positive Mortgages adviser for a free, no obligation financial consultation.

Tel: 07731991514 NOW