Great Britain Is Officially In Recession So How Can You Protect Your Savings, Pension And Home?

If you are made redundant, from the 13th week after this happens, the Government will pay the interest on your mortgage up to 200,000 pounds. Although, for couples both need to lose their jobs to qualify and it will not pay for any other borrowings.

Insurance linked to your earnings will pay out monthly providing you with some funds to pay bills. As an example, with Pay Protect a 35 pound per month premium will insure 60 per cent of your gross income, up to 1,000 pounds a month and for up to 12 months.

You can also protect your mortgage repayments for up to 2 years with Mortgage Payment Protection Insurance which is linked to your home loan. They do not, however, pay out if you work on a short-term contracts, if you are employer has made it known there will be job cuts or if you are self-employed - always read the small print.

If you can, you need to pay off as much off consumer debt and credit cards as possible because card issuers are reducing interest-free periods and increasing charges. We have always had the 56 days breathing space before we have had to pay before interest is charged but it is being cut by many to 50 days and balance transfer fees are going up.

Tesco and Barclaycard One Pulse both are offering good deals if you want to switch. Both companies state they have the 56 days interest-free and will accept balance transfers at 0 per cent for 14 months, say Moneysupermarket. They charge a 2.9 per cent transfer fee and Barclaycard will charge 14.9 per cent after the 14 months and Tesco 15.9 per cent; so do not spend on these cards in this time.

A cash back card is a good idea for you if you do not have debts. They reimburse you for your spending, such as Shell Mastercard from Citi will give refunds of 3 per cent on your Shell fuel costs and 1 per cent on other spending. American Express will refund 5 per cent up to 200 pounds for the first 3 months.

If you can afford to overpay on your mortgage this will be beneficial and if you do struggle you can take payment holidays while you recover. Overpayment can reduce the term of your mortgage substantially and could help you to pay your mortgage off earlier. For example, a lifetime tracker mortgage with First Direct which cost 1,000 per month last October will have dropped to 690 pounds per month now, and if the rate stays low, but the repayments remain at 1,000 pounds, the mortgage would be paid off 9 years early with a saving of 16,000 pounds.

Any savings need to be kept easily accessible as things will change again yet and there are still rates around the 4 per cent mark to be had. Be alert and move your money quickly to make the most of these rates.

For any insurances that you have do not automatically renew. Tell your provider that you are going to look around for other quotes and do; they may come back with a more competitive quote to keep you, if not, go elsewhere.