Are we heading for hard times as the cost of living rises?
By Mr Bankruptcy
28th October 2021
After a financially challenging 18 months, a rise in the cost of living will add more pressure to already stretched household and business budgets. What action can you take to avoid falling into unmanageable debt?
Inflation is going up
This October, the rate of inflation was reported to be 3.1%, which reflects the average increase in prices for the past 12 months. Rising inflation is being blamed on a combination of factors:
- The global increase in demand for oil and gas, pushing up prices and energy bills
- Increased food prices as producers pass on their own rising costs, due to higher raw material bills, supply chain issues and shortages in drivers and CO2
- Supply chain issues in other sectors, pushing up prices
- Government tax breaks and business support provided during the peak of the Covid-19 is coming to an end
Many businesses are unable to absorb these additional costs and the prediction is that price rises will continue, with The Guardian reporting two in three firms expecting to see price increases in the run-up to Christmas. It’s no surprise, therefore, that the Bank of England predicts inflation could hit 4% by December and even surpass 5% next year.
Protect your finances by taking action now
At the beginning of the year we talked about the difficult debt situation in the UK and a sustained increase in the cost of living may prove unmanageable for many more people as the perfect storm of Brexit, rising inflation and the ending of Covid-19 support starts taking its toll.
Now is the time to ensure that you are clear about your or your business’s financial situation and assess how you can manage an increase in day-to-day cost of living or business operations:
- Revisit your budgets and understand how much spare financial capacity you have, to cover increased costs
- Understand where costs are increasing and see where cutbacks could be made
- Take a proactive planning approach to managing your finances and look for ways to mitigate increasing costs heading our way
- Review your finances regularly
When supporting vulnerable clients with debt management we see the impact that rising costs have on all aspects of their life. However, in financial times like these, thinking ahead and seeking advice can help you prepare for more challenging situations.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
- Insolvency support
- Negotiated settlements
- Personal assisted bankruptcy
- Mediation
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you need to deal with an unmanageable debt, or want to bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.