How to take your finances ‘back to school’ this autumn
Getting on top of some financial admin could help you to prepare for rising costs this autumn.
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Your support makes all the difference.Now the new school year is in full swing, some adults may have a bit more spare time in the day to get on top of those tasks they’ve been aiming to do for weeks, or perhaps even months.
And with prices rising sharply, now could be a good time to tackle some money admin – and maybe learn a bit more about some aspects of your finances.
Here are some ideas to get started:
Check out what help you could get with energy costs
Prime Minister Liz Truss has just announced that energy bills for the average household will be frozen at no more than £2,500, in a plan that will limit the price suppliers can charge customers.
While this will bring some relief to households, it may also be worth checking out your entitlement to any additional help.
Citizens Advice has some information about schemes and grants on offer at citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/grants-and-benefits-to-help-you-pay-your-energy-bills/#Grants_To_Help_Pay_Energy_Debts.
Charis – charisgrants.com – which is an administrator of grants and funds – also has information about support schemes on its website.
The Energy Saving Trust – energysavingtrust.org.uk – has some suggestions on its website, too. It suggests that, based on the April 2022 price cap, a household in Britain could potentially save £70 per year typically by taking four-minute showers, and £55 annually by switching items off standby, based on average occupancy.
The UK Government also has information about help households will get with their energy bills this winter at helpforhouseholds.campaign.gov.uk/help-with-your-bills.
Check whether you can move your mortgage
With interest rates on the rise, some borrowers may be looking to lock into a new fixed-rate mortgage to protect themselves from further increases.
Fixed rates have been getting more expensive in recent months. The average two-year fixed mortgage rate on offer has increased from around 2.44% in February to 4.2% by the end of August, according to Moneyfacts.co.uk.
The average five-year fixed-rate deal on offer has increased from around 2.71% in February to 4.29% by the end of August.
Moneyfacts also found in August that mortgage deals were only hanging around on the market for an average of 17 days – so borrowers may need to be prepared to jump if they see an attractive deal.
Even if your current mortgage deal isn’t due to run out for a few months, you may still be able to secure a new deal now, to run when it ends. Check with your lender.
Use budgeting tools
The Government-backed MoneyHelper website has a budget planner tool at moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner.
See if you could get a better phone, broadband or TV deal
If you’re out of contract, use comparison websites to see if you could get a better deal. Regulator Ofcom has an accreditation scheme for comparison websites.
You could also try negotiating with your provider. If you’re unsure how to approach such a conversation, Ofcom suggests potential questions to ask may include: ‘Can I get a better service, and how much will it cost?’ and: ‘Do I need to pay any fees to sign up to a new deal?’
There are also some social tariffs available for people who may struggle to afford their broadband or phone services.
More information is on Ofcom’s website at ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs.
Ditch little-used subscriptions
Many people signed up to subscription services during the coronavirus lockdowns, but now habits have changed, you may be using some less often and even have forgotten about them.
Cut the interest on your debts
Shifting your debt onto a 0% balance transfer card could help you to focus on reducing the debt itself, rather than just paying the interest. But bear in mind any fees for transferring the balance, and set up a diary alert for when the 0% period ends.
Make micro savings
If you do have a bit of spare cash in your budget, use “round ups” to make saving easier. Some banking apps will allow you to round up small amounts of change to the nearest pound when you spend and deposit this into savings.
Speak up if you’re struggling
If you’ve already cut back as much as you can, get help from a charity such as StepChange, Citizens Advice, Christians Against Poverty or the National Debtline, run by the Money Advice Trust.
If meeting lending commitments is a concern, contact the financial firm involved to see what can be arranged. The National Debtline, for example, has sample letters on its website that people can use to write to creditors.
If you’re worried about paying energy bills, remember that Ofgem rules mean suppliers must work with customers to agree on a payment plan they can afford, including reviewing a plan that has been agreed before.