Practical Steps You Can Take

It is important to make savings wherever possible.

Some factors are hopefully obvious but of course not the kind of matters that we think about when times are good.

For example, walk the children to school where possible rather than drive, this saves on fuel and has health benefits for you and the children.

Turn the heating system down just 1 or 2 degrees from where you used to have it, This will be barely noticeable and yet save a lot of money over a winter.

Beware of “false information” for example the old chestnut “leave the heating on low ALL the time” to take the edge of the cold and avoid firing up the system from scratch. This is simply NOT true! Yes more power is required to start a cold system but using the heating only when you need it on will always be more cost-effective

Look at your mortgage and loan options, can you save money by switching to a different provider on lower rates?

Do not forget the “forgotten” utility, water! Whilst usually much less of a monthly drain than gas or electricity, water is still expensive and very often forgotten and thereby wasted.

Use a watering can rather than a hose or sprinkler, yes that is much slower and more of a pain in the rear end but it will save massive amounts of this precious resource which is beneficial to the planet and will slow you down which is a good thing for your mental health.

Do not leave the tap running when shaving, washing or cleaning your teeth.

Pensioners and over 55’s

If you are over 55 or a pensioner, you may want to look at Equity release and/or RIO (Retirement Interest Only) mortgages to release some funds and ease the short-term cost of living burden. You may also want to look at taking out a tax-free lump sum from your pension.

However, if you do wish to explore these kinds of options, please be sure to seek independent professional financial advice before making any such decision. Despite the obvious advantages, all of these options have consequences and it is imperative to be aware of them.

 

Further Reading and Advice

If your situation has gone beyond money worries to the point where you are actually already in significant debt it is important to prioritise.

For example taxes, VAT and child maintenance payments should always be the top priority, followed by any secured debts such as mortgages and then unsecured debts such as loans and credit cards.

When it comes to unsecured debts, broadly speaking one has to pro-rata payments, in a nutshell, if you owe £1000 and you have £100, then you pay them each 10% i.e. £10.

Ensure you advise creditors of your situation, most are very helpful and understanding providing they are kept informed.

Please do not be tempted or lured by debt management companies, they charge a fee for their services which means any repayments you are able to make to creditors will be that much less than they could be.

The exact same help and services are available freely from a number of charities particularly Step Change.org and National Debtline.

Another fabulous resource for help with debt and indeed saving money is the Martin Lewis site Money Saving Expert

Remember that fortunately, these days, in modern times, no one goes to prison or gets put into the workhouse for debt, it is vital for your mental health to keep matters in perspective.

For further help with that, organisational skills, money worries or debt anxiety call us for an appointment or book here using voucher code initialac and be sure to click apply.