Since the recession hit in 2008, we have all had to tighten the belt a little in an attempt to become more money savvy. In 2010 the unemployment rate rose to 8.1% which equates to 2.57m people which was the highest since 1994. It was an uncertain and uneasy time with money becoming scarce. Even though we are now out of the recession, the cost of living continues to rise, with the cost of living in Britain rising higher and faster than anywhere else in Europe, which was found in a study covered by the Daily Mail in late 2013:
‘The big squeeze on family finances is being exacerbated by wages failing to rise in line with prices. Increases in energy, food and alcohol prices are fuelling the high inflation rate in the UK, as political leaders clash over the effect on household disposable income.’
To try and tackle any money issues that may arise, it is imperative that you save a little each month, just saving three pounds a week can make a difference. Three pounds doesn’t sounds like a lot of money, but in fact, it could make or break your financial situation. This three pounds will equate to £156 a year. By saving just three pounds a week you could cover yourself for things such as car breakdown, a major vet bill, cooker breakdown and so much more. These are all issues that we don’t take in to consideration when we are working out our budgets. Sites like daily-proof.com also offer advice and help show you where you can save money on things such as car insurance, energy bills and much more.
If you end up in debt
Each month you receive your pay check, you know which bills will have to come out, and have you should have a small amount of disposable income that you use to enjoy life. But, what happens if you get to the end of the month and something breaks down or you get a leak? It has to be fixed. You go over-drawn. You get charged sky high for being over-drawn. You then have to weigh up your options. You could use a Pay day loan, but that will not solve the problem as you will end up paying up and over what you originally borrowed.
This is the kind of debt that can soon spiral, and as we all know, having no money can get you down, it can also lead to anxiety and even depression. In order to tackle debt, you have to realise and accept that it’s a problem. The next step is to talk about it. Don’t be ashamed of it. Do not regret it, but learn from it. Realise your fears and aim to overcome them.
Once you have spoken to a close friend or relative, they will be able to help you see more clearly and help organise a plan of action. You can also visit Citizen’s Advice Bureau or StepChange for free impartial advice. Once you have done this, get any outstanding bills and speak to the creditors. They will have procedures in place for people that are genuinely struggling.
Never be scared to ask for help, but try to avoid this situation by saving just a few pounds a month, and have a back-up plan in place. Use mobile apps that help you keep track of your outgoings and budgeting, but most of all do not let money get you down, as there is always help and support to help you through.