It’s time to seek savings, claim back cash and deal with debts
LAST week we covered the basics of budgeting. Once you’ve faced down the finances, you’re free to make some savings, claim back some cash and start over.
FIND A FREE APP TO HELP YOU MANAGE YOUR MONEY
AS a general rule, do a basic budget before you download apps and spreadsheets. That’s because learning new tech can often become a chore in itself!
However, once your basic budget is done have a look at the huge range of Open Banking apps that offer free ways to manage your finances.
Open banking apps and websites allow you to take control of your financial data about key things like your spending patterns and – crucially – how you could make savings, to be shared – but only with your permission.
Many of these apps let you bring all your accounts and financial things under one roof so you can see what you spend and get tips on how you can make savings too.
IF YOU DON’T NEED IT, CANCEL IT
RARELY tune in to that TV streaming site? Not using that gym membership? How about that £5 a month lifestyle app?
Every little bit adds up – so ditch what you don’t need. You may be surprised what you find. busy lives and online statements mean we often don’t notice or realise we’re overpaying contracts that have ended, have been billed for subscription traps after free trials or have forgotten to cancel things like old mobile phone insurance policies.
SWITCH AND SAVE
ENERGY use will have gone up considerably if you’ve been working from home, but this is the time of year to switch providers before the price reviews that tend to happen around this time too.
Take a meter reading and ask your provider for a revised bill.
Then look at the options for switching. MSE have a good switching club for energy here: clubs.moneysavingexpert.com/ cheapenergyclub
Now is also a good time to check if you are out of contract on your mobile, broadband or other annual subscriptions. See if you’re being charged for an old mobile handset that you’ve paid off too.
GET A (FREE) PLAN
IF your financial difficulties look like they might be longer term, speak to a free service like StepChange, a charity which helps people get on top of their finances. They’ll contact creditors for you and negotiate affordable payments. It’s not easy, but it’s a solution.
Never pay for a debt management service – there are free options out there. And bankruptcy and IVAs are very much a final option. Don’t go there unless you are all out of other solutions.
THERE are times when it’s apparent you can’t afford your property. If that’s the case, speak to your mortgage provider about your options when the pandemic has calmed down a little. You may find down-sizing to a cheaper property is a better option than defaulting on your mortgage.
No-one likes dealing with problems that threaten their security, so if you’re worried about paying your mortgage speak to the lender early so they can find solutions.
AND FINALLY… BE REALISTIC
DEALING with difficult decisions about finances can seem overwhelming. But tackle them head on, and the pressure is much less than the burden of worrying but not knowing. There is help out there.
IF you need to make a complaint or even just contact a business or organization about finances, budgeting or any other consumer rights issue, Resolver can help. resolver.co.uk