In the world today you only need to open a newspaper or turn on your television to get a glimpse of the economic situation we are all facing. Everywhere you look the talk in both the media and the high street is of cutbacks, repossessions, and job losses. In these tough times it is easy to become disheartened, and in some cases panic stricken wondering how you are going to survive, and pay your mortgage and find enough for your family to eat.
No-one can deny that the situation is difficult but there are a few things to do that can make life a little easier in the event that you start to experience financial hardship.
Preparation is key to survival
The key to surviving in tough economic times is preparation you may not be experiencing severe difficulties yet, but now is the time to make your plans. Do it now before you get into debt and the situation deteriorates out of control.
Work out how much money you have coming into the house every month now, and how much you will have if you lose your or your partner loses their job.
Next work out how much money you need to survive each month. Budget for the essentials like, mortgage, rent, food etc. It is likely that the amount of money you need to live on works out to be higher than the amount you have coming in each month.
The final step is the most difficult but also the most essential. You must find a way to increase your income to the level you need each month.
Don’t be afraid to seek advice
One of your first steps should be a trip to your local free law centre or citizens advice bureau. These places can advise you on your entitlement to any benefits, or welfare payments you may be eligible for, or ways you may be entitled to them if your situation changes.
If you are paying off a mortgage or other loan it is worth talking to your bank or lender to see if the terms of the loan can be altered. A mortgage adjustment, or loan modification could make the difference between keeping or losing your home.
If you are renting your property and believe the rent level is likely to be too much for you in the near future it might be advisable to take some time to investigate cheaper properties nearby or perhaps moving to cheaper neighbourhood. This may not be your ideal solution, but it would be far better to move now before your debts increase and you are finally evicted, than to wait and end up losing everything, having nowhere to go, and no deposit for a new property.
It is possible to survive tough economic times by making preparations now.