The annual growth in take home pay has dropped to an all time low of 1.8% and saw an unprecedented fall of 0.2 per cent during January as employers make drastic cuts to save their businesses from collapse.
Honda is just one of the companies that has stopped or cut back on car production as the recession hits the motor manufacturing and subsidiary industries. Reduced hours, cuts in overtime or a shorter working week are becoming common place across many business sectors leaving workers with less cash in their pockets.
Jobless totals just announced reveal that there are now more than 2 million people out of work in the UK and redundancies have reached a record high. From November 2008 to January this year 165,000 joined the ranks of the unemployed. Not all of the 6.5% of the British working age population without a job are entitled to benefits but those on Jobseeker's allowance rose during February by a staggering 138,400, putting yet more strain on an already over-stretched government purse. Job vacancies are down too, so getting another job is not easy - at least in the short term. The UK's recession is unlikely to be over during 2009 and some doubt that 2010 will see much of a recovery. More optimistic economic experts predict that next year will bring some signs of growth but it will be slow, holding to the generally accepted principle that unemployment figures remain high even after recovery has begun.
The net result is that many household budgets are close to breaking point. Mortgage payments have dropped but not to the same extent as bank rates. Interest on savings is negligible and whilst this might not be of particular importance to the young family who has little in the way of a 'rainy day' fund, it has a real impact on the retired who rely on a decent rate of interest to bolster pensions. Households that went into the recession in a healthy financial state and remain employed are, in general, coping well; it is those who were already paying off debts and have been further hit by reduced working hours or job losses who are faring the worst.
If debts spiral out of control your home can eventually come under threat. Repossession has repercussions that last many years, affecting your credit rating and your ability to get future finance. These factors, as well as the significant stress and upheaval involved, mean that repossession should be viewed as an absolute last resort.
With help from Property Rescue it is possible to beat repossession, keep your home and live in it as a tenant. The scheme works by selling your home to Property Rescue and then paying rent under a tenancy agreement whereby your rights are safeguarded. But if you want to remain a homeowner you may decide it is best to sell up and move on, paying off your debts and buying a cheaper property. In a declining market selling in a hurry is nigh on impossible but again, Property Rescue can help. They guarantee to value your home and, if you accept that valuation, you can sell up and move within a matter of weeks or even days.
If you are facing what seems to be a financial dead end, contact Property Rescue. You can talk to one of their advisers in complete confidence and without obligation.