Preparation is the best defence in uncertain times

As the credit crunch continues many consumers may feel there is little they can do to safeguard their home and finances. Cheshire Building Society, however, advises that preparation is the best defence. Over the past few years, the UK has enjoyed a buoyant housing market, but the market is changing and it is likely that more difficult times lie ahead. The Society, which offers a range of financial protection options, has provided tips on what consumers can do to ensure they are fully prepared for whatever the future holds.

Karen Torson, Partnerships Business Manager at the Cheshire said: “Most people don’t like to think about what they would do if they lost their job or could not work through illness; however it is an important consideration and even more so given the current economic conditions.

“You may not be able to safeguard your job but you can take steps to protect your mortgage payments and other outgoings.”

Whatever the future holds, the following tips will help to ensure you are prepared:

Make sure you have adequate protection for your needs - there are many different policies on the market offering various levels of cover, so consider what you actually require, be it mortgage protection, income protection or both.

Research cost options – it is important to consider an individual policy’s options to get the right cover at the right price for your needs. Many income protection policies allow you to defer when a claim would become payable to the point at which any sickness or redundancy payments you are eligible for run out. This can significantly reduce the cost of the premium.

Check the Small Print – Take time to read through the small print of any policy you have to ensure you fully understand how the policy works and how to make a claim. If in doubt, speak to the provider who arranged your cover.

Save for a Rainy Day – It’s important to have some form of savings in place to help tide you over in the event that your financial circumstances change. The rising cost of living has made it more difficult for most to save but every little bit helps so try and put a small sum into a high interest savings account each month.

Know Where to Get Help – There are numerous services which can assist and advise you on options available if you find yourself in financial difficulties. The Citizens Advice Bureau is a good starting point.

Keep Your CV Up to Date – Regardless of whether you feel secure in your job or not, take time to update your CV. It will mean one less thing to worry about if you find yourself unemployed.

Karen added: “An uncertain economy can cause worry for many individuals but taking the time to ensure you are well prepared can provide peace of mind and make a big difference, whatever the future holds.”