January 6, 2009
No Payrise Means A New Plan For 2009
UK workers are anticipating missing out on £3.1bn in payrises in 2009 as recession sets in, meaning many people will have to change their financial plans radically in this New Year.
New research by uSwitch.com Consumer Opinion Panel suggests that almost 6 million UK workers expect to miss out on payrises. This means millions will have to seek new financial deals and new loans as more find what they accounted for simply won’t be there.
Louise Bond, personal finance expert at uSwitch.com, says: "2008 was a tough year for consumers, who are now bracing themselves for an even tougher year ahead. 2009 is going to be a bit of a roller coaster ride – bumpy for those who are able to stay in their job, but catastrophic for those who can't. It is good to see that the overall cost of living has started to fall, but this will be small comfort for the growing numbers of unemployed.”
A bumpy year indeed: if you think you are not ready for 2009, and you don’t expect any more money coming in, talk to your financial adviser. You may be able to get a new mortgage, a new loan or simply rework the deals you already have.
Bond adds: “As we go into 2009, households need to focus on recession proofing themselves – cut out unnecessary expenditure, shop around to reduce household bills and get back into the saving habit. If the axe does fall, having money set aside in a savings account will help cushion the blow."
As much as an adviser can do, everyone will have to work hard in 2009 to make sure their spending is lower, their savings are higher and that their finances are as trim as they can be.
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