Nationwide offers finance tips to workers in the UK

On the day the Office for National Statistics announces UK unemployment has risen to its highest level since September 1997, Nationwide research reveals that a third (34%) of people are now more concerned about job security than they were 12 months ago. At the same time, nearly two thirds (64%) of homeowners aged 34 and under with a mortgage do not believe they could keep up repayments and pay other household bills for more than 3 months if put out of work To help combat the effects of redundancy, Nationwide recommends people take the following steps:

save enough money to cover four months' income (monthly salary) as an emergency fund;

look at monthly outgoings and consider any cost savings which can be made and add these to existing savings;

consider making mortgage overpayments now to provide a cushion for the future and, if concerned about unemployment, discuss options to reduce mortgage repayments in the short term by talking to the lender (e.g. extending the mortgage term, changing to interest only repayments);

consider consolidating unsecured debts;

delay making large purchases until job security returns;

seek a review with a financial consultant for advice on protecting and making the most of existing financial arrangements, and to obtain help in understanding any protection products already held.

Robin Bailey, director at Nationwide, said: "Job security has become a major concern and it is important that people do not rest upon the hope that they will not experience redundancy. By acting now people can take steps to lessen the financial impact of losing their job and make sure, should the worst happen, they are in the best position to weather the storm and get back into employment as soon as possible."