Your questions
Your frequently asked questions

What is the best type of protection product if I do lose my job?

What is the best type of protection product if I do lose my job?

This depends on your personal circumstances and what you need that protection policy to cover. If you have a mortgage as well as other debts then an income protection policy may be suitable as it is designed to pay out a fixed sum on a monthly basis to help you cover these outgoings. If you have debts such as a credit card or loan then payment protection products are available that will cover the minimum payments on these debts whilst you are looking for a new job. It may be that a combination of products is best for you. The most important thing is to establish what bills you will need to pay and how these products can best suit your needs.

How much should I be saving each month?

How much should I be saving on a monthly basis to protect myself against job losses?

It is of course very sensible to save for unexpected events such as losing a job or an emergency. How much you save is of course up to you, and should be affordable to you. What you need to consider is what protection you have such as payment protection on any loans or credit cards as well as what money you have available to you from your savings. Having some form of income protection is important especially of you have a large debt like a mortgage. If the worst should happen then this can be a vital source of income whilst looking for new employment, as well as any savings you have.

Should I take out income protection?

My job’s fairly safe, I think, but I’m thinking of getting some sort of income protection just in case. How do they work?

Basically, if you have an income protection policy and you lose your job you will receive a payment or payments to tide you over until you find new employment. It is very similar to an insurance policy. If the worst was to happen then you can claim against your policy to receive a payment. There is normally a premium to pay on a monthly basis.

How much should I be cutting back on spending in the current environment?

How much should I be cutting back on spending in the current environment?

It’s always important to know what you can afford to spend from day to day or month to month. In the current financial situation it becomes even more important. Many people are choosing to shop around and look for bargains for their spending. It’s also worth considering there is potential to save on regular outgoings such as energy bills. There are many places to compare deals and prices, such as Lloyds TSB Compare.com

What should be my priorities in managing my money in the current environment?

What should be my priorities in managing my money in the current environment?

The first thing you need to do is look at your income and expenditure and understand where your money is going. Once you have a good idea of your bills you can arrange your finances to meet these needs. Then if you have anything left over you can look at the best way to save this money, whether it’s for a specific goal or just for a rainy day.

Are there still good deals on credit cards at the moment?

Are there still good deals on credit cards at the moment?

There is currently a range of options available to suit most people’s requirements. If you are looking for a specific deal such as cash back, Airmiles, loyalty points or credits, many cards offer these. If you are looking for deals based on balance transfers and 0% interest for fixed periods these deals may not be as common as they once were but they are available.

What is the best way to consolidate my debts at the moment?

I’ve heard that it’s going to be harder to get a personal loan in the current environment? What is the best way to consolidate my debts at the moment?

The availability of lending is in most cases purely based on your personal circumstances. If you are considering consolidating your debt into a more manageable payment then this is something that you can discuss with your preferred lender. Primarily you need to consider how much you can afford to repay to clear the debts you have in a manageable way.

How can I repay my debts?

I’m concerned about my level of debts and my ability to continue repaying them – what can I do?

The first thing you should do is have a close look at your income and spending to see where your money is going. Once you know that you may be heading towards some difficult times make contact with each of the companies you have a debt with and talk to them. In these times of uncertainty you will not be alone, and many companies have a range of measures they can put in place to help you. It’s worth remembering that companies you owe money to want you to continue paying and it is in their interests to help you do that.

Should I be concentrating on my savings or debts?

I’ve got both savings and debts. Should I be concentrating on one or the other?

It is sometimes advisable to pay debts before adding to savings however you need to strike a balance so that you have access to some money for emergencies as well as considering other personal circumstances. If you have an outstanding debt then it is important that you keep up repayments and stay on track. If you are able to save whilst doing this then you will be a good position should you need more funds at short notice for those unexpected occasions.

What help can be found for people struggling to get on the housing ladder?

Are there any schemes out there for people struggling to get on the housing ladder?

There are a number of schemes run by the government to help with buying a home and there are several places you can go for more information. Your local Citizens Advice Bureau will be able to help, and you’ll find info at www.direct.gov.co.uk and www.englishpartnerships.co.uk.