The latest unemployment figures show 1.92 million people were out of work at the end of November last year. Bearing in mind that almost two months have passed since this time and further redundancies are being announced on an almost daily basis, this figure cannot reflect the true number of those without a job. One substantial employer not included in these statistics is Woolworths, which closed stores up and down the country in the lead up to Christmas and early in the New Year.
The TUC has reported that women are first in the firing line when it comes to redundancies, currently being twice as likely as their male counterparts to lose their jobs. Perhaps this is because more women work as shop assistants in a hard hit retail sector but whatever the reason, women's wages make up an essential part of many household incomes and their loss will have a severe impact on family budgets.
Every job loss represents a family or an individual who is suffering loss of income, often loss of self esteem, and sometimes the loss of a home. Mervyn King, the Governor of the Bank of England, has made it clear that the recession is unlikely to end soon. In fact, his predictions as to when the economy is likely to start growing again are so uncertain that he has been accused of making the money markets more nervous than they are already. A deepening recession inevitably leads to more job losses. Employers are looking for ways to reduce their wages bill by cutting jobs, freezing headcount and reducing work outsourced to agency or temporary personnel. To forecast a bleak outlook may be pessimistic but to do otherwise would be unrealistic.
The threat to homeowners is significant. Interest rates are low but mortgage repayments remain the biggest financial commitment for many households. Without a regular income, defaults on loans are sure to rise.
If you are struggling to pay your mortgage you should talk to your lender or approach one of the free independent debt advice agencies who will help you tackle the problems. When debts and loss of income are short term the threat of repossession can usually be avoided. But a different solution will need to be found for those who are without work long term and simply cannot meet their financial commitments.
Property Rescue has strong financial backing that means they can make an offer for your home, regardless of its condition or location. They will present you with a free valuation, which - if you accept - can be followed up with a sale within a matter of days, thus avoiding repossession and allowing you to re-build your lives in a cheaper property or rented accommodation. There is even a 'buy and rent back' scheme that means you can stay in your home as a tenant after the sale. To find out more, contact Property Rescue for a free, confidential discussion.