Household Income Stretched too far?

24/04/2012

With the latest employment and wage figures from the Office of National Statistics showing only a slight improvement on last quarter, and the cost of living continuing to escalate, MoneySave Solutions is reminding those already financially stretched to tackle the issue sooner rather than later. MoneySave Solutions is financial services specialist established specifically for those in financial difficulty or with a poor credit history.

Matt McKenning, MoneySave Solutions Operations Director, explained, “It is great news that employment and average wages have slightly increased this quarter and we hope to see that trend continue. Despite this inflation is rising faster than average wage increases and many people are finding they are still in a very difficult position as day to day costs and bills continue to increase. Wages are being stretched ever-further, but families struggling to make ends meet need to realise that they are not alone, they should not be ashamed and there are things they can do to ease the financial burden in the short and long term. For example, simply comparing costs of various energy suppliers can save families hundreds of pounds a year as they could currently be on a more expensive tariff than necessary.

“The old adage ‘a stitch in time saves nine’ applies perfectly to managing debt, or even the impending risk of unmanageable debt. The sooner you seek help with a debt problem the easier it will be to get finances back under control – ignoring a debt you cannot pay off each month will only lead to a debt spiral, getting worse rather than better.”

Prioritising your household expenditure is an essential discipline, as is effective budgeting, knowing exactly when payments go out. According to a recent Halifax survey, more than 1 in 5 people check their bank balance at least daily. These changes in bank account management may be in part due to the higher concerns UK households have over personal debt levels. Tighter finances with minimal room for error before incurring bank charges or having critical payments returned is a constant financial worry for millions of people. We offer bank accounts where there are no charges for failed direct debits and standing orders. Tight budgeting and taking advice can help avoid mortgage or rent arrears which could put people at risk of eviction from their homes, and with the Council of Mortgage Lenders recently predicting repossessions will increase by a shocking 25% by the end of 2012, this is a very real threat to homeowners of all backgrounds.

“Times are still extremely tough, and things do not look set to improve dramatically any time soon,” Matt McKenning concluded, “so for those already struggling and finding their finances stretched too far, now is the time to completely review their finances and do all they can to cut unnecessary expenditure and identify ways of optimising their income. At MoneySave Solutions we are committed to finding the best ways for those in financial difficulty to save money, whether that is on energy bills or home or car insurance, or finding ways to protect income.”

Tags; Current UK Economy, Housing Debt and Bills, Income Worries and Debt, Budgeting Advice,