Cost of living crisis: How to manage debts and avoid spending more than you can afford

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

As the cost of living crisis begins to bite it has been revealed three million people fear falling into debt within six months.

Even before inflation hit 6.2% those earning less than £21,000 per year were spending at least 40% of their income on debt repayments, according to the Jubilee Debt Campaign anti-poverty group.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

And a poll by debt charity StepChange found that one in five people worry they will get into problem debt this year.

StepChange CEO Phil Andrew says: “Without bold action from Government that goes beyond the support offered at the Spring Statement, more and more people face falling into problem debt, eating through hard-earned savings or going without the basics just to get by.

Global Tech News Daily

“More targeted help with energy bills, greater forbearance and support for people struggling with energy debt and arrears, and the uprating of benefit levels to keep pace with inflation are key to alleviating the impossible financial burden many people are now facing.”

Here’s our guide to help you manage your debts and avoid spending more than you have…

Global Tech News Daily

Cost of living crisis: How to manage debts and avoid spending more than you can afford

Phil Andrew is the Chief Executive of StepChange Debt Charity

Write down all your debts

Finding out just how much you owe might be frightening, but by writing out a list of your debts and the interest you’re paying on them, you can decide which is the most important or expensive form of debt, and take action to sort it out.

Prioritise your debts and bills

Your most important debts might not be the biggest. Some bills, like council tax, rent or mortgage and utility bills, need to be prioritised so you continue with essential services and have a roof over your head.

Child maintenance, council tax or payments on a secured loan should also be prioritised as the consequences of non-payment can be serious.

Cost of living crisis: How to manage debts and avoid spending more than you can afford

You should prioritise your bills ( Image: Getty Images)

Move your overdraft to a 0% money transfer credit card

If you’re finding you can’t get back into the black, but are getting charged for using your overdraft, one option is to use a specialist money transfer credit card, which allows you to use the card to pay cash into your bank account.

The cash clears your overdraft, so you owe the card instead, but at 0%. You then make monthly repayments to the credit card during the interest-free period, meaning that every penny you repay goes towards clearing the debt. Some cards come with an initial handling fee of the money you borrow, so look for cards which don’t come with a fee.

Transfer your credit cards to 0%

If you’re not able to pay off your credit card debt you could switch to a balance transfer card which offers zero interest for a set period.

Some cards offer as much as 36 months interest-free. Some cards charge a fee to switch, so try to find one that doesn’t.

Cost of living crisis: How to manage debts and avoid spending more than you can afford

Some credit cards come with no fees ( Image: Getty Images)

Negotiate your debts

Creditors will often agree to lower your monthly payments if they can see you’re paying as much as you can afford. That might be in the form of a payment holiday, giving you breathing space to sort out your finances and where they may freeze interest and charges for a short time.

You can also arrange a debt management plan where you pay a much smaller amount per month, while it’s also possible to negotiate settlements with your creditors, who may agree to accept a percentage of what’s owed. Debt charities like StepChange can help you make such arrangements.

StepChange’s Phil Andrew says: “It’s really important to talk to any creditors with whom you have arrears – banks have a legal duty to offer forbearance, utility providers can offer write-offs for people in exceptional circumstances and many people are eligible for council tax reductions.

“If your creditors don’t know you’re struggling they can’t help you, so reach out and let them know.”

Contact your suppliers

You may be paying more than you ne0ed for your bills and subscriptions. Spend a day going through your bills and phone each supplier to see if you are eligible for better deals or discounts, from your mobile phone and broadband to streaming services.

Use money apps

There are a number of useful apps that help you manage your money, keep track of your spending and help you reduce impulse buying.

Moneyhub lets you see all your accounts in one place, while Money Dashboard is an online personal finance management tool you can use on your phone.

Cost of Living

Cost of living crisis: How to manage debts and avoid spending more than you can afford

Our Cost of Living team of experts are here to help YOU through a very difficult year.

They'll be bringing you the latest money news stories and also providing specialist advice.

Whether it's rocketing energy bills, the cost of the weekly shop or increased taxes, our team will be with you all the way.

Every Thursday at 1pm they will take part in a Facebook Live event to answer your questions and offer their advice. Visit facebook.com/dailymirror/live to watch. You can read more about our team of experts here.

If you have a question – or want to share your story – please get in touch by emailing webnews@mirror.co.uk.

Stamp out duplicate payments

Go through your bank account statements with a fine-tooth comb to look for unnecessary or duplicate payments you might have forgotten to cancel.

For instance, people often sign up for anti-virus software when buying a new computer, without cancelling the old one. Or you might be paying for a subscription you’re not using anymore.

Look at ways to bring in extra cash

There are plenty of ways to make a few extra pounds, like using cashback websites or selling unwanted goods on online. If you’re in receipt of benefits, remember that any additional income may affect the amount you’re entitled to.

Depending upon your situation, you may also find you can claim support from the Government. StepChange’s benefits calculator can help you make sure you’re receiving the help you are entitled to.

Involve the whole family

It’s common for one member of the family to be responsible for the household’s finances, which means no-one else in household knows what’s really going on.

It’s important to come clean with your partner and family members, so everyone in the house can get involved and help reduce costs. That might mean some hard conversations, but getting your kids to be involved in the budgeting and saving process will also help them develop personal finance skills which could help them later in life.

Cost of living crisis: How to manage debts and avoid spending more than you can afford

Video Loading

Video Unavailable

Click to play Tap to play

The video will auto-play soon8Cancel

Play now

Get professional debt help

Don’t be afraid to reach out for help. Organisations like StepChange and National Debtline can help you find solutions to your debt problems and get your finances, and your life, back on track.

“Our main advice is don’t make the mistake of struggling on alone,” StepChange’s Phil Andrew says. “If the last two years has shown us anything, it’s that we’re all at risk of circumstances beyond our control – which is the main reason why people end up experiencing debt. It can happen to anyone, and advice is there for everyone.”

News Related

OTHER NEWS

This is America: It's not just Asian American and Pacific Islander Heritage Month anymore

Asian American and Pacific Islander Heritage Month was already a lot to take in. There are so many distinct cultures and disparate experiences within these two massive identity groups, so ... Read more »

Red-hot inflation is probably costing you an extra $311 per month

Financial squeeze stems from the rising cost for a number of everyday goods Read more »

How Kurtwood Smith Approached His Character In Firestarter - Exclusive

Blumhouse/Universal Stephen King’s 1980 novel, “Firestarter,” was the celebrated horror author’s first full-fledged foray into science fiction, after incorporating elements of the genre into his two previous books, “The Stand” ... Read more »

The Devastating Death Of Tremors Star Fred Ward

Kevin Winter/Getty The entertainment world is reeling today at the news that character actor extraordinaire Fred Ward has died at the age of 79. No cause of death has been ... Read more »

Formula shortage reveals GOP's compassion for American babies, anger over nourished immigrant ones

Cearly these Republicans are addressing the baby-formula shortage through the scriptural philosophy of: “All lives are precious, expect these little immigrant whiners over here. They can pound sand.” Read more »

Self-driving truck company looks to fix supply chain issues for the long haul

Embark Trucks successfully completes autonomous driving tests in winter conditions Read more »

A timeline of billionaire Elon Musk's bid to control Twitter

Elon Musk announced on Friday that his plan to buy Twitter in a proposed $44 billion deal is “ temporarily on hold ” as he tries to pinpoint the exact ... Read more »

Protesters demand arrest of former Sri Lankan PM over attack

The Associated PressSri Lankans protest demanding president Gotabaya Rajakasa resign and decrying the appointment of Prime Minister Ranil Wickeremesinghe in Colombo, Sri Lanka, Friday, May 13, 2022. Five-time former Sri ... Read more »

Law & Order: SVU Fans Are Outraged With Olivia Benson After Season 23, Episode 21

Michael Greenberg/NBC Since the series debuted in 1999, “Law & Order: SVU” fans have rallied behind the exploits of protagonist Captain Olivia Benson (Mariska Hargitay). As the Commanding Officer of ... Read more »

Here's Who's Hosting The Saturday Night Live Season Finale

Amy Sussman/Getty The untold truth of “Saturday Night Live” involves all sorts of behind-the-scenes shenanigans, but when it comes to the show’s guest hosts, few things are left untold. There’s a ... Read more »

Woman arrested in 2002 Missouri hospital patient's death

On Location: May 13, 2022 Catch up on the developing stories making headlines.The Associated Press CHILLICOTHE, Mo. — A former respiratory therapist charged with first-degree murder in the death of ... Read more »

Inflation has eroded 40% of Social Security's purchasing power since 2000

Social Security would need to increase by $539 per month to offset inflation Read more »

Toddler weighing under 10 pounds dies; parents arrested

The Associated PressThis photo provided by Polk County, Florida, Sheriff’s Office shows Arhonda Tillman and Regis Johnson. A 2-year-old girl in Florida weighing less than 10 pounds (4.5 kilograms) died ... Read more »

Jesse Spencer Responds To Those Leaked Chicago Fire Finale Images

Timothy Hiatt/Getty Matthew Casey (Jesse Spencer) has been a fixture on “Chicago Fire” ever since the very first episode. Originally starting off as a lieutenant for the first six seasons, ... Read more »

Multiverse Of Madness Screenwriter Reveals Elizabeth Olsen's Reaction To Scarlet Witch's Violent Scene - Exclusive

Kevin Mazur/Getty Images Spoiler warning: This article includes major plot details from “Doctor Strange in the Multiverse of Madness.” Arguably one of the most dramatic character arcs in the history ... Read more »

Pilots at United will vote on contract after tentative deal

The Associated PressFILE – In this July 2, 2021 file photo, a United Airlines jetliner taxis down a runway for take off from Denver International Airport in Denver. United Airlines ... Read more »

Unionists block new N Ireland govt over Brexit trade rules

The Associated PressFILE – Democratic Unionist Party leader Jeffrey Donaldson pauses as he speaks to the media at Parliament Buildings, Stormont, Belfast, Monday, May 9, 2022. Britain and the European ... Read more »

Five-year-old girl dies after being found unconscious in the sea in Stavanger

The five-year-old girl who was found lifeless in the sea in Stavanger on Thursday night was declared dead at the hospital on Friday. The police do not suspect that the ... Read more »

Mixed Texas ruling allows trans youth parent investigations

AUSTIN, Texas — The Texas Supreme Court on Friday allowed the state to investigate parents of transgender youth for child abuse while also ruling in favor of one family that ... Read more »

Mimi Rogers Cried When She Learned About Her Bosch Character's Fate - Exclusive

Tyler Golden/Amazon Freevee Emmy-nominated actress Mimi Rogers has more than 100 IMDb credits to her name, but dedicated fans of “Bosch” almost certainly know her best from her role as the ... Read more »

Severe storms blamed for 2 deaths in South Dakota, Minnesota

Severe weather hits the Heartland and moves East Chief meteorologist Ginger Zee has the latest forecast after damaging storm reports from Kansas to Minnesota. The Associated Press SIOUX FALLS, S.D. ... Read more »

Jesse Williams addresses leak of Broadway nude scene

The Associated PressMichael Oberholtzer, from left, Jesse Williams and Jesse Tyler Ferguson attend the Tony Awards: Meet The Nominees media day at the Sofitel New York on Thursday, May 12, ... Read more »

House of Representatives to give staff free Peloton memberships, costing taxpayers

The benefit is is being offered to Capitol Police officers and House staff Read more »

Elon Musk pausing Twitter deal because of spam accounts not a ‘legitimate excuse': Market expert

Musk could be putting the Twitter deal on hold to renegotiate the price, says Gregg Smith Read more »

Here's Why Moon Knight Could Suddenly Fly In The Final Episode

Disney+/Marvel Studios Marvel’s “Moon Knight” wraps up its six-episode run with an epic battle between Marc Spector/Steven Grant (Oscar Isaac) and the powerful zealot Arthur Harrow (Ethan Hawke). It’s a ... Read more »

The Fed raising interest rates will ‘create a recession,' Dick Bove warns

The Fed ‘can’t avoid’ a recession, the chief financial strategist stresses Read more »

German police investigate possible terrorism in knife attack

VIENNA — Police have arrested an Iraqi-born man and are investigating a possible Islamic extremist motive after five passengers received knife wounds on a regional train in western Germany, authorities ... Read more »

German police investigate possible Islamic extremist motive after 5 wounded in knife attack on train

BERLIN — German police investigate possible Islamic extremist motive after 5 wounded in knife attack on train. Read more »

Doctor Strange 2 Star Benedict Wong Recalls His Longtime Friendship With Benedict Cumberbatch - Exclusive

Noam Galai/Getty Images Thanks to the sprawling narrative of the MCU, many of the film saga’s actors have had the opportunity to work together again. That’s a good thing when ... Read more »

Queen attends horse show in first public appearance in weeks

The Associated PressBritain’s Queen Elizabeth II is joined by Prince Edward and Sophie, right, the Earl and Countess of Wessex as they sit in the Royal Box at the Royal ... Read more »

UN humanitarian official urges attention to drought in Kenya

The Associated PressVillagers gather during a visit by United Nations Under-Secretary-General for Humanitarian Affairs Martin Griffiths, in the village of Lomoputh in northern Kenya Thursday, May 12, 2022. Griffiths visited ... Read more »

Film Review: ‘Firestarter' remake fails to ignite

The Associated PressThis image released by Universal Pictures shows Ryan Kiera Armstrong as Charlie in a scene from “Firestarter.” (Ken Woroner/Universal Pictures via AP) For a movie about a girl ... Read more »

Report: Austria sees record number of antisemitic incidents

VIENNA — Antisemitic incidents reached a record high in Austria last year, according to a report published Friday. The statistics, compiled by the Jewish Community of Vienna, recorded 965 incidents ... Read more »

Germany: Over 300 far-right extremists at security agencies

VIENNA — The German government said Friday that it has identified more than 300 employees of national and state military, police and security agencies with links to far-right extremists or ... Read more »

38 rescued, 11 dead as US searches waters near Puerto Rico

SAN JUAN, Puerto Rico — At least 38 people have been rescued and 11 bodies found as the U.S. Coast Guard scoured the open waters northwest of Puerto Rico on ... Read more »

Becki Newton On The Joy Of Working With Neve Campbell On The Lincoln Lawyer And Her Dream Co-Star - Exclusive

Lara Solanki/Netflix Throughout her career, Becki Newton has worked with a string of talented actors, including Judith Light and Vanessa Williams on “Ugly Betty,” Neil Patrick Harris and Cobie Smulders ... Read more »

As the United States grapples with abortion law, what is the situation here in Norway?

The recent leaking of a draft decision, by the United States Supreme Court, to overturn more than 5 decades of the legal protection of a woman’s right to seek an ... Read more »

Nasdaq's nosedive nears pandemic crash of 2020

The 10-year yield hit 3.203% Monday – a 3.5 year high Read more »

Croatia passes law paving way for euro currency introduction

ZAGREB, Croatia — Croatian lawmakers on Friday approved a law that paves the way for the introduction of the euro currency next year. Croatia is due to replace the Croatian ... Read more »

Report: Missile attack kills 10 Syrian soldiers in the north

BEIRUT — A missile struck a Syrian military bus in the country’s north early on Friday, killing 10 soldiers, Syria’s state-run media and an opposition monitor said. It wasn’t immediately ... Read more »