64% ‘would fall into debt’ if unemployed

A large proportion of homeowners feel they would quickly fall into debt management problems if they were to lose their job, research has found.

Following the release of Office for National Statistics (ONS) figures showing unemployment is on the rise, a survey by Nationwide has revealed people’s fears about job security.

It discovered that 64 per cent of homeowners aged 34 or under do not believe they could make mortgage repayments or meet household bills for more than three months if they were out of work.

Nationwide advised those worried about the issue to save enough cash to cover four months’ income and consider making mortgage overpayments now while they can afford it.

It also recommended carrying out debt consolidation if possible.

Director Robin Bailey commented: “It is important that people do not rest upon the hope that they will not experience redundancy.”

In the three months ending November 2008, the amount of people in full-time work was down 89,000 compared to the previous quarter, the ONS revealed.

By Jamie Price