How to prepare if there is a Recession
Hi everyone, it is time to talk about the economy. In the past week a lot has changed with the OCR being dropped to 0.25% So I really want to about what are three things you can do right now to get braced for this recession that is potentially coming The first thing is to get your luxury expenses reduced. So that means cutting back on luxury spending. Now I’m fully aware that that is what causes a recession, but at the moment we all just have to know what is the minimum that we can live on in terms of what are the minimum expenses that we can going out. The second thing is to review your mortgage.
So you might have 21 years left on your mortgage.
But if you lose your job, then you are going to have to continue paying that amount to your mortgage. The trick might be to move your mortgage back to a 30 year term, and then continue to pay your mortgage as though you only had 21 years left on it. So you would pay it down over 21 years if nothing changes. But if you lose your job you can reduce your payments back to those 30 year term. A nice little comfort blanker there for you if the worst should happen to your employment. The third thing is get your secondary debt sorted. So either move it to a lower interest rate, consolidate it so it’s nice easy payment or push it to a longer term, and again, it’s not a long term situation. We just want to know that if the worst happen with the recession,
we have some comfort around the expenses going out. So three quick tips for bracing the recession. Have a read of our blog that has become the most popular blog on our website within two days. So everyone is wanting to know about this. If you like this video, follow us and follow our Facebook page and we can update you on the latest information on the economy. Cheers!