Job loss would cause ‘financial difficultly’ for one third

Almost a third of adults would fall into financial difficulty inside two months if they were to lose their jobs, new research has claimed.

Findings from MoneyExpert.com revealed that approximately 30 per cent of those surveyed would be unable to meet repayments on mortgages, loans and credit cards for longer than eight weeks, while half of respondents only have funds to last one month.

The website also found only 16 per cent of credit card customers have a payment protection insurance (PPI) policy in place, prompting director Sean Gardner to call for more people to purchase PPI cover.

“Being in debt is sustainable if you have an income and a means of paying off loans and credit cards,” he explained, adding that PPI can be “vital” if a person loses their job and has no regular income.

Those following a debt management plan may wish to purchase PPI as it could help them should they lose their job.

In related news, Citizens Advice has reported a 125 per cent increase in the number of people seeking redundancy advice.

By Tom Musk