4 steps to help you avert a financial crisis

Following these steps may help lessen the blow of a financial crisis.

By Nicole Hamer |

10:31 21 April 2013

Economic downtimes make many people nervous. There is a lot left to the unknown and a pervading sense of vulnerability.

 

There are currently millions of people in the UK who are unemployed, and while nothing is guaranteed, here are a few ways to try and ensure that you’ll be able to weather whatever life brings, including a financial crisis.

 

• Savings Accounts—if you haven’t been able to set up a savings account yet, you’ll want to begin comparing the different ones available. There are Cash ISAs, Stocks and Shares ISAs, Junior ISA’s (both as well as Stocks and Shares), and regular savings accounts. This is one of the best and first steps to avoiding a financial crisis.

 

•  Payment Protection Insurance—while many may scoff at this type of insurance, it is often affordable, and in the event that you do become unemployed (as long as you were employed at sign up) you may qualify to have your major payments like mortgages, vehicles loans, and credit card loans paid while you work to get back on your feet. If something does happen, you’ll be eternally grateful you had this type of cover to lessen the stress of a financial crisis.

 

• Managing a budget—it seems simple, but we all know it’s a lot more difficult to live within a budget than it appears to be on paper. There always seems to be an unexpected cost lurking at the fringes of our financial plan. Make sure to include things like costs for vehicle maintenance, clothing, and even spending money. If you allot yourself some spending money to begin with, you’ll be less likely to overspend.

 

• Know your options—if something like a financial crisis does occur, check out available options. The Social Fund may even be able to assist you, and there are short term loans as well.