Finance tips for making it through the pandemic
With more than one lockdown this year, households will be feeling the squeeze. Making sure you're on top of your finances this year is more important than ever.
We've outlined some simple steps that you can take to make sure you're keeping on top of your finances:
Budgeting
Simple, but very effective; sitting down and planning a budget is an important place to start when working out affordability. It's important to focus on essential costs first like food, housing, heating and council tax. There are lots of useful tools and apps that can help you work out how much you're spending each month.
Mortgages and Loans
Mortgage payment holidays are also being extended, so if you are struggling to meet the monthly cost of a mortgage, credit card or loan, this could be an option. Under its proposals, borrowers will have until 31st January 2021 to ask for payments to be deferred.
If you're thinking of moving during the lockdown, the property market has remained open.
The following are all currently allowed, subject to all parties adhering to social distancing measures:
- Renters and homebuyers are allowed to move
- Estate agents and removals firms can continue to operate
- Construction sites can stay open
- Tradespeople are allowed to enter homes
The property market has been flourishing since the Government cut stamp duty rates back in July.
First-time buyers and home movers have been facing significant delays to the home buying process, and many buyers have also seen their mortgage options cut by COVID-19.
If you are a first-time buyer or are struggling to secure a mortgage speaking to an adviser can help. Brokers have access to a wider range of lenders and have more chance of getting you a better deal.
Consider consolidating debt
Debt consolidation allows you to focus on one monthly payment rather than many. Suppose you've got debt in various places, including credit cards and loans. In that case, a debt consolidation loan such as a secured loan could help you bring it all together, potentially saving you money and making it easier to manage with a single monthly repayment.
Getting advice
If your struggling with your finances or are considering your financial options, getting advice can be a huge step forward. There are a range of different financial options out there and an adviser can help you find the right finance option for you.
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