4 Tips for managing your finances on a reduced income
During this global pandemic, the health and safety of your friends and family are of course your primary concern, but for many, money worries are a close second. If like many others you've found yourself managing your finances on a reduced income due to loss of business, loss of employment or being temporarily furloughed, then read on. This post will give you four practical tips to stay on top.
1) Do a thorough assessment
The first and most important step is to thoroughly assess your financial situation. Complete a review of any income that's still coming into your household. This could be income from employment, business, benefits, investments etc.
Next, go through all of your expenses such as mortgage, utility bills, groceries, debt repayments, monthly subscriptions etc.
Once you've completed these tasks, you'll have a clearer picture of whether you're still able to live within your means or whether you need to take steps to increase your income and/or decrease your spending.
You may feel tempted to bury your head in the sand rather than addressing your current financial situation, but by facing your fears you'll be much better equipped to continue managing your finances on a reduced income.
2) Check what support is available
If you're currently in a financially vulnerable position, firstly know that you're not alone and that this is nothing to feel embarrassed about.
Financial problems can happen for many reasons - and can often be out of your control.
The important thing now is to seek the support you need to make sure you're able to keep your head above water. The government have provided lots of useful information on financial support that's available during these difficult times.
There are also lots of resources on the Money Saving Expert website.
3) Speak to your lenders
Many lenders are offering a 3 month mortgage payment holiday to people who are struggling with finances right now. You will still be charged interest for the period when you're not paying, but this will be added to the total cost of your mortgage rather than charged upfront. Please note that you must seek agreement with your lender before taking a payment holiday.
Loan and credit card payments are also offering 3 month payment holidays right now.
Click here to learn more about how BB Mortgages can support you through the current crisis.
4) Consider refinancing your mortgage
One option might be to remortgage. Interest rates are at an all-time low right now so there is a potential to lower your monthly payments if you're able to refinance to a mortgage with a lower rate. It's a good idea to speak to a mortgage adviser who can assess your current situation and advise you on the best options for you.
Here at BB Mortgages, we offer free consultations so do get in touch if you'd like to chat.
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