Do you know the financial impact lockdown has had on you?
By Mr Bankruptcy
18th June 2020
In April, The Guardian reported the economic impact of the lockdown would mean households will see a monthly fall in disposable income of £515 per household. In addition, between the 20 and 30 March 2020, 49.6% of people in Great Britain reported “high” anxiety, the most common causes being work and finances. In these situations, it can be critically important to reassess your finances and take action if the sums don’t add up.
When did you last assess your financial situation?
It’s likely that over lockdown your income and outgoings will have changed. Take time to record carefully everything you’re spending and your revised income. You need to understand the gap between these two figures before you can really understand what action you need to take. Also, make sure you keep on regularly reviewing your finances for any more changes.
What you’re losing v what you’re saving
Many expenses, such as rent, mortgages and bills may remain the same, but you might be saving on costs like commuting, buying lunch at work, your morning coffee, eating out etc. These savings may be significant and help balance some of the loss of income and maybe, you can put some of it aside to save. Also, remember to check for any refunds you may be eligible for because of missed holidays or refundable membership fees.
Understand your financial commitments
Some outgoings you’re committed to and there will be consequences if a payment is missed. Mortgage, rent, utilities bills, credit cards, existing debt repayments can all increase your financial burden if you fail to keep them up because of fees, penalties, added interest or even direct action taken by creditors.
Ensure you know how much you’re committed to paying each month. Know which payments take priority and take time to understand initiatives the Government has introduced, such as mortgage or credit card payment holidays, which can relieve the immediate pressure from such commitments.
Don’t ignore your financial worries
Stress can be good – it can be a warning sign and it can spur you on to take action. You need to know if your income can’t support your current level of expenditure so it’s essential you take that first step and assess your financial situation. Then take action to minimise the impact of your new financial circumstances and, importantly, don’t be afraid to ask for help if you aren’t sure what to do next.
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 facing unmanageable debt or involved in civil or commercial disputes.
Our services include:
● Insolvency support
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Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.