5 ways to help if you face plummet in economic status

Knowing your options is a large part of the battle to stay on top of finances.

09:33 23 April 2013

The recent financial news that the UK’s credit rating has dropped from its previous AAA status will no doubt make some people a little uneasy over the economic status of the country. Typically economic struggles are evident throughout society long before a country’s credit rating is demoted.

 

Though it does indicate a reduction in an ability to borrow internationally, it doesn’t necessarily mean that there is a catastrophe ahead. With planning, research, and careful budgeting, people can take changes in stride and be prepared for some unexpected costs without being thrown into financial turmoil.

 

If your own economic status is a bit shaky there are a few things you may be worrying about, such as keeping up with mortgage payments. Here’s what you can do to hold onto your house despite a downturn in your economic status:

 

• Calculate how much you will be able to pay towards the mortgage, as well as the length of time you would be contributing reduced payments.

 

• Contact your mortgage company to find out what options are available and if they will be able to work with your proposed budget.

 

• The Social Fund may also be able to assist you depending upon the circumstances, but it never hurts to ask.

 

• If you have Payment Protection Insurance definitely contact the company to see if your situation qualifies for the benefit to kick in. They may contribute part or all of your mortgage payment for a set amount of time.

 

• See if there are other bills you can reduce quickly. If you have some smaller bills, consider transferring balances with a good credit card deal so that you benefit from reduced interest rates and the amounts will be paid off. 

 

The good news is that regardless of your economic status, these can be used to try and get you out of a financial pinch.