News Article

Savings could help you through a recession

Published 26 July 2012 by

The Prime Minister, David Cameron, appeared on television this morning conceding that the latest GDP (Gross Domestic Product) figures for growth in the UK were "very disappointing" - but said that the Government would do more to encourage growth while dealing with the deficit.

GDP measures the nation's output - how much money the country is creating, in other words - and is an indication of how well the economy is doing. GDP shrank by 0.7% between April and June this year, which means the 'double-dip' recession has run into three quarters (a recession is two consecutive quarters of negative growth in the economy).

Here at thinkmoney, we like to help people manage their money well. So, how do you manage your money well in a recession - a time associated with rising unemployment, falling incomes and inflation?

Alessandra Quartucci, Head of Savings, Mortgages & Current Accounts at Confused.com says savings are really important during a recession. If you have savings, it's more convenient to have easy access to them, because you may need to relay on them more during a recession. If you don't have savings yet, now is the time to set up a Direct Debit from your account into a savings account.

If you have a thinkmoney Personal Account, you can set up Direct Debits online, by text or ask a Money Manager to do it for you.

If you have debt, it's important that you continue to meet those repayments, but if you're struggling to do that already, speak to a debt adviser to discuss your options.

Finally, recessions do not last forever. If you are able to put anything into a nest-egg for the future now, you may find it even easier once the recession passes. If you can't afford to save, take another look at your finances and seek advice if you need to.

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