Are You Worried About The Cost Of Living Crisis?

August 17, 2022

The UK’s cost of living crisis rages on, with energy bills rising, petrol prices on the up, food inflation now at a 13-year high… and the government coming under fire for its response to the situation, with millions now struggling to afford common household basics.

As the Guardian reports, data from Resolution Foundation shows that inflation is expected to hit 8.4 per cent this year, the highest it’s been since 1981. So, despite the fact that average disposable household incomes have risen every year in the last 60 years, once we take inflation into account, real incomes will fall by 4.1 per cent this year.

The consequence of this is that, for many, incomes are now no longer able to cover life’s necessities in the face of soaring prices. For the poorest fifth of the UK, food, energy, housing and so on now account for more than half their disposable income.

It can be difficult to manage finances during uncertain times, but it’s essential that you do all you can to keep up with priority bills and payments, or you could find yourself in a sticky financial situation.

If you’re concerned about the crisis and the possibility of falling into debt because of it, it would perhaps be a good idea to discuss your finances with an experienced debt adviser, who may be able to help you work out what to do.

For those already in debt at this time, any extra pressure on already squeezed finances can be very stressful.

If you’re worried about missing a payment on an IVA, income payments order or income payments agreement, make sure you get in touch with your creditors as soon as you can. Avoiding the situation will inevitably make it worse.

Are you trying to remortgage with an IVA? Get in touch with us today to see how we can help.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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