Covering The Gaps

by hwrjoel Tuesday, June 10, 2008

Looking for a job in the current economic climate is time-consuming, stressful and difficult. Britain is faced with some of the highest unemployment figures for a decade meaning that every job you apply for is guaranteed to have stiffer competition than it would have done three years ago.

An added pressure to looking for a job is dealing with the lack of income and this can be particularly difficult if you’ve got a family. Even if you don’t have a family, meeting payments on rent or on a mortgage without a lot of money coming in can be very challenging.

If you have a mortgage, the first thing that you have to do is go and talk to your bank. No bank wants its customers to struggle financially and the worst case scenario of repossession is not ideal for either party. Arrange a meeting with your bank manager and go through some of the options, you’ll find that the bank will be very helpful and it may take some of the pressure off your finances.

Of course, if you don’t own your house, you’re not likely to get very far with a landlord if you can’t meet your rent obligations. The one thing that you absolutely must not do if you don’t have any money to meet your rent is to try and pay it on credit cards. Credit cards may seem like a good option, but they’re really only postponing the inevitable and the interest rate that many cards are charging at the moment is absolutely extortionate. Just a couple of month’s rent on a card, could mean that you pay three or four times that much to the credit card company when the interest rate kicks in.

The best sources of credit - if you don’t have a mortgage - are loans and the decision to get one should never be taken lightly. You’ll find that you’ll be faced with many repayments over a prolonged period; that length of term is important, because it means you pay lower interest rates, but it does mean that you’re tied into owing the bank money for a long period. For a good rate on loans, have a look at the likes of Santander.

Still, if you can secure your finances then you can put all your attention into getting back in employment. The most important thing when sizing up how much money to borrow is to err on the side of caution. You don’t want to get a loan and then find that you’ve used the money before you’re back in a job. Finally, don’t get credit over the internet, go to a bank and talk to someone face to face, it’s important that you know all the options and are in a position to get clarification if you’re not sure on anything.