How to combat your financial worries

Rises in fuel, energy, groceries, and more – this is a difficult time for households across the UK, as the cost of living crisis continues. For a lot of people across the country, it’s causing real financial worry. The government support on offer only goes so far – and that doesn’t go far enough in a lot of cases. So, is there anything you can do to help ease any financial issues that you’re facing?

The steps that you feel you can take by yourself may seem insignificant in the grand scheme of things, however, try not to feel disheartened, as you may find small actions can make a big impact.

Create a budget…and stick to it

Each month, why not consider creating a budget for your household finances? Start by tracking everything that you have coming into your bank account – and everything that’ll be going out of it.

Firstly, it can help you work out how much money is available for emergencies, or the odd treat. Secondly, it will give you an idea of things you might be unnecessarily spending your money on. You might have a gym membership you never use, for example? Or too many streaming services? < I don’t think these should be questions, or if they are they should be formatted better

Get into sorting out existing debt

It’s not uncommon to have existing debt. Loans, credit cards, and mortgages are all forms of debt that people experience, for multiple reasons. However, when money is tight, the main worry may be keeping up with repayments. For others, finding a provider who will lend to them can be a challenge, particularly if their credit score is less than ideal.

However, you still have available options to explore. For those who are struggling with debt and a poor credit history, bad credit loans can present a solution that might work. Additionally, there are ways to consolidate all your existing debts into one monthly payment that may help. Whatever your individual circumstances may be, it may be worth talking to your bank, lender, debt relief charity, or a financial adviser to see if there are ways you can reduce your debt.

Look to build up your savings pot

One of the benefits of budgeting and reducing debt, is that you can use any spare (I don’t think spare is the right word? I don’t think people reading for debt advice will have spare money) cash to boost your savings. Having a sum of money stored away can be useful in the months and years to come (can we expand why?). However, one in four people don’t have any savings whatsoever. As a result, it could mean having to take on more debt in the face of an unexpected bill or similar.

You don’t have to put away lots of money each month, little and often can be just as useful as any other saving pattern. With the right account, you’ll earn interest on what you saved too. (wouldn’t it be worthwhile adding in a link here about which accounts?)

Read more financial news articles

Have you ever contemplated reading the financial pages of a newspaper or news website? What about reading up about things like APR, compound interest, and credit scores? By taking time out to read financial news and information articles, you can build up your knowledge about your own finances, that can mean making better informed decision when the time comes.

As we’ve discussed in this article, taking charge of your financial affairs doesn’t have to be daunting or complex. It can take as little as a few minutes each day, or week, to explore how you can make a difference. Although, this won’t automatically solve all your worries, it can go a long way to help you work towards being in the best position to resist the pressures that come with the increased cost of living and economic recession.