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Tackling the Rise in Living Costs

Empty Wallet
Mo
Adam
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With the rising cost of living in the UK, many people are facing increased financial pressure. From skyrocketing energy bills to higher grocery costs, it’s easy to feel overwhelmed. However, you don’t have to manage it alone—there are debt solutions available to help you manage your financial situation.

In this blog, we’ll explore practical ways to handle the cost of living crisis, budgeting tips, and how seeking professional debt help can provide a lifeline.

Why Is the Cost of Living Increasing?
Recent reports show that the UK is facing one of the highest levels of inflation in decades. Essential living costs are rising at an alarming rate, and many people are finding it difficult to keep up. Some of the key factors include:

  1. Energy Bills: With utility prices rising sharply, many households are facing average increases of up to 54% since 2021.
  2. Food Prices: Grocery prices have increased by 10-15% on average, with everyday essentials like bread, milk, and vegetables becoming more expensive.
  3. Transport Costs: Fuel prices have hit record highs, and public transport fares are also rising.

These increases put additional strain on household budgets, leading to stress and, for some, accumulating debt.

How to Budget During the Rising Cost of Living
While the cost-of-living crisis presents significant challenges, there are ways you can regain control of your finances. Implementing a solid budget can help you manage your spending and prioritise essential expenses. Here are some budgeting tips to cope with rising living costs:

  1. Track Your Spending: Start by tracking your spending to see where your money is going. Categorise your expenses into essential and non-essential items. This will help you identify areas where you can cut back and reallocate funds to your priority expenses.
  2. Prioritize Essential Expenses: Focus on the essentials first, such as rent, utilities, and food. If you’re struggling with these basics, consider reaching out to a financial advisor for help in creating a manageable plan to reduce costs.
  3. Cut Back on Non-Essential Spending: Review your non-essential expenses. Can you reduce how often you eat out or cancel any unused subscriptions? These small adjustments can free up money to cover more important bills.
  4. Shop Smart and Save: Be mindful when shopping. Look for special offers, buy in bulk, and plan meals around affordable ingredients. Avoid impulse purchases and focus on getting value for your money.
  5. Increase Your Income: Consider side hustles or finding extra work if you can do so. This can help supplement your income and ease the financial pressure you’re feeling.
  6. Build an Emergency Fund: Even if you can only save a small amount, start putting money aside for unexpected expenses. Having an emergency fund can prevent you from going into debt when things go wrong.

What to Do If You’re Struggling with Debt Due to Rising Living Costs
If your rising living costs are leading to mounting debt, it’s important to seek help as soon as possible. Ignoring your debt or putting off payments can lead to serious consequences like defaulted payments, additional charges, and even bailiff action.

Here are some debt solutions that may help you regain control of your finances:

  1. Debt Management Plan (DMP):A DMP allows you to make affordable monthly payments to your creditors, consolidating them into one payment rather than multiple different ones.
  2. Individual Voluntary Arrangement (IVA): An IVA can help you reduce your debt and make lower monthly payments, with the possibility of writing off a portion of your debt and providing you with legal protection.
  3. Debt Consolidation: Consolidating your debts into one single monthly payment can make managing finances simpler and less overwhelming, although this is a form of further borrowing and could come with high interest rates and further difficulty if not managed properly.

How We Can Help You with Rising Living Costs and Debt Solutions
At Stop My Debts, we understand the stress that comes with rising living costs and mounting debt. Don’t face it alone—our friendly, non-judgmental advisors are here to help you explore solutions that fit your unique situation.

Take the first step toward financial freedom by reaching out today—we’re here to help you explore the best options tailored to your situation.