Protect your finances in tough times

DURING these uncertain times it’s important to preserve and protect your cash, which means avoiding unnecessary expenses, shopping wisely and avoiding scams. Here are my top-five tips:

CANCEL UNNECESSARY SUBSCRIPTIONS

Many people subscribe for regular goods or services that cannot be delivered during the pandemic. On the basis that the trader cannot deliver the goods or services they have an obligation to either put the subscription on hold (including your payments) or to simply cancel it. Responsible traders like BT Sport have done this automatically, but others may need prodding. My advice is that you cancel the direct debit for any such subscriptions immediately.

USE YOUR CREDIT OR DEBIT CARD FOR ALL PURCHASES:

This lends you protection if the goods or services are not delivered or something goes wrong and the trader refuses to help or is unable to because it has gone bust. If the purchase price is more than £100, you will have the protection of section 75 if you use your credit card. If you use your debit card, you will be able to make a chargeback claim, regardless of the purchase amount.

SEEK PAYMENT HOLIDAYS:

All mainstream mortgage lenders are allowing payment holidays of up to three months. I’ve heard cases where other lenders (car loans, personal loans and other forms of finance) have also allowed this. So it’s worth asking.

ASK TO BE FURLOUGHED:

If you’ve recently been made redundant or put on lay off, ask your exemployer/employer if they will consider taking you back/designating you as a furlough worker. You will receive 80 per cent of your usual salary and it costs the employer nothing, as HMRC pays the bill.

BEWARE OF SCAMMERS:

Fraudsters have dreamt up lots of scams linked to Covid-19, ranging from fake cures and testing kits to promises to deliver regular essentials to doors of the vulnerable. Don’t sign up to any cures or testing kits and only buy from reputable traders with a history and reputation you can clearly see online.