Beat the Money Crunch
Money Advice Service research1 shows that one in three people in the UK felt pressure to spend more than they could afford over the past Christmas period, because of this they expect the number of people seeking debt advice to surge over the next three months.
An analysis by the TUC (Trade Union Council) 2 has shown that the proportion of household debt is at its highest for five years meaning that the average amount owed is 24 per cent higher than in winter 2011 when the data was first recorded. The financial woes are worsened this month as an estimated 13 million people will have longer to wait until payday than normal as they were paid early in December.
Almost half (48%) of those experiencing financial difficulty say that budgeting would have helped them to prevent overspending and most (72%) are certain that they don’t want to start the New Year in a similar situation. 1 Below are a few helpful tips to begin getting your finances into shape for 2016:
- Look at all your regular spending at home and keep track of it throughout the month. Doing this will help you see areas where you may be able to cut back, for example: cancelling unused subscriptions.
- You might be able to raise some extra money by clearing out items you don’t want or no longer use and selling these through online platforms.
- Don’t underestimate how much you waste if you throw food away – plan your meals carefully and use up your leftovers.
- Family meal time doesn’t have to be expensive you can find cheap and healthy recipes here.
- Easy money is usually expensive money - pay day lenders and high street money shops tend to have very high interest rates. Shop around and research your options to see what loan comparison sites have to offer. Scotcash also offer affordable loans you can Apply Now or Contact us to speak to a member of our staff.
- Find out about your local credit union. At Scotcash we can also help you open up a Savings account with one of our Money advisors allowing you can start saving for next year.
- Check the Money Saving Expert website for money off vouchers (online and in store) - every penny counts.
Over a third of people in London, Edinburgh and Glasgow pledged to avoid making non-essential purchases in January, compared to just 13% of people in Yorkshire who said they would reduce spending this month to help manage debts.3
This month the Money Advice Service launched a #survivejanuary campaign which suggests simple ways to put pounds back in your pocket. You can sign up today to receive your free kit providing you with the tools needed to save hundreds of pounds and get you back on track for 2016.
If you are a Scotcash customer and are worried about debt we can arrange a meeting with one of our Money Advisors who can provide free, confidential advice - contact us today to make an appointment. It’s best to get advice as early as you can, never ignore the problem or try to forget it. It’s always better to talk to your lender before repayments become a real problem. Charities such as StepChange are also there to help if you’re in trouble.