It’s time to take a good look bank accounts
DURING 2020, the UK has faced challenges and concerns unlike anything before.
Most polls and research conducted during the pandemic suggest that well over half of us have significant concerns about making ends meet.
Taking a clear look at your spending makes your financial situation a reality – you can see what you can and can’t afford in plain terms. But it’s also the first step towards taking back control of your finances.
HERE’S HOW TO GET STARTED. Budgeting basics:
TAKE a deep breath turn on the computer or grab a pad and have a look at your bank accounts. But set a time limit of no more than 30 minutes. Just getting started is the most important thing.
You can download free apps, watch flashy guides on YouTube or check out lifestyle blogs from ridiculously organised people. But budgeting is best when it’s basic. A simple spreadsheet is all you need – or a blank piece of paper.
If you have online banking, you can get a list of direct debits and standing orders with one or two clicks. List when your regular payments are due and total up the cost, then compare it to what’s coming in. In a separate column, include things you pay as you go, like the food shop, travel (when we can) and lifestyle spending like entertainment and take aways.
You’ll be amazed how quick this is to do – however, you’ll be left with the sum of money you have left over each month in rather stark terms.
Now that’s out of the way, let’s get some cash back
GO back 13 months through your bank statements and note down anything that you don’t recognise.
Many people are spending hundreds, if not thousands of pounds each year on sneaky annual debits for things they neither wanted nor needed.
These might be free trials for goods or services you signed up to, or things, like Amazon Prime or iCloud storage.
Why 13 months? Many businesses sign you up to annual payments that might have slipped under your radar. So go back a year and overlap by an extra month and you should spot everything.
Ask your bank to cancel anything you don’t want or need, straight away – and claim back the money if you haven’t authorised the payments.
You can dispute unauthorised transactions through your bank or card provider or take it up direct with the firm that’s debited you – it’s up to them to prove you said they could take the cash.
Contact your creditors
IF you’re worried that your household income is tight, or you’re struggling to stay on top of things, there’s a lot you can do to tackle the problem before it gets out of control.
The rules about financial difficulties are clear. If you’re struggling to meet your financial commitments and ask the business for help, they should come up with some solutions for you to help you buy some time while you get back on your feet again.
They should also consider suspending interest and charges for a short period if it’s making your situation worse.
This doesn’t mean money you’ve spent will be refunded, but it does mean that money you’ve been charged on top might be refunded, if there’s a good reason for doing so.
Loan and credit payment holidays are available too so ask and explain if you’re struggling.
I’ll be covering how to save some cash for free in the next part of my guide to making a fresh start.
Get help at resolver.co.uk