Rises in the cost of living may be causing you to worry and panic about your financial situation.
It’s understandable to be concerned, but there are ways you might be able to improve your circumstances.
In this blog we will cover a few strategies you could try in order to help with tackling rising living costs...
1. Focus on reducing monthly bills
The most effective thing you can do to tackle rising living costs is to try and reduce your monthly spending. Focusing on this could help you to cover the extra living costs and therefore may help to relieve some of your worries.
A couple of ways you may be able to help cut your costs might include:
- Shopping around for better mobile and broadband deals – Suppliers can often cut their prices in order to encourage people to switch accounts. Therefore, it’s worth shopping around and seeing whether you can get a better deal elsewhere.
- Reduce water consumption – Try to limit the number of baths you take and make sure you do any washing up in a bowl rather than under a running tap. In addition, you could install a water meter to monitor how much you are using.
- Transport costs – Travelling to and from work can add a lot on to your monthly expenses, and so it is worth thinking about ways you could reduce this. If it’s a possibility you might want to consider walking or cycling to work, in order to cut fuel costs. Additionally, whenever you have to travel further afield, it’s worth ensuing that you book your travel in advance to get cheaper prices.
- Pay bills on time – Another important thing to consider is when you are paying your bills. If you’re often late at making payments, then you may be charged interest or face extra fees. Therefore, it is worth trying to make your payments on time to ensure this does not happen.
We have a much more detailed blog available on how to cut your everyday bills, which shows you some other tactics you could employ.
2. Consider consolidating debts
Debt consolidation is a way of combining all your debts into one single loan which means you’ll only have one monthly repayment to make, rather than multiple.
Doing this can make keeping on top of your repayments easier and can even reduce your monthly outgoings, as you may get a lower interest rates or be able to spread the debt repayments over a longer term. However spreading debts over a longer term could result in you paying back more in interest in the long run.
Consolidating debts can be achieved by; borrowing more from a first mortgage provider, although many first mortgage providers may have restrictions on lending for the purposes of debt consolidation, or getting a personal loan, however the loan terms available are typically only 5-10 years and may not provide the necessary reduction in outgoings. Another popular option is to take out a secured loan. With these loans you can borrow a large sum of money (over a long or short term) to cover a range of purposes, including debt consolidation.
These loans are secured against a property you own, which means that your home may be repossessed if you do not keep up repayments. As a result of this, lenders are usually more flexible with their criteria so you have a greater chance of getting accepted and may qualify for lower interest rates.
To get a secured loan it may be beneficial to speak with a mortgage broker who can help you understand what options may be most suitable.
3. Think about selling items online
We’ve all been in that situation where we hold on to items that we no longer use, whether its clothes, toys or electrical devices.
Although it can be nice to hold on to these items, it can also actually be a really useful source of extra income.
There are lots of places online where you can sell your old items, it’s just a case of researching which one is the best fit for you. Once you have determined which sites to use you can start listing the items you want to sell and make some money.
It may not be a huge boost to your income, but it can definitely help to give you a bit extra to work with.
In summary, the rising cost of living is scary for many people, but there are methods that can be used to help to relive some of this pressure. This may include reducing monthly spending, consolidating debts and selling old items online.