How to mitigate the effect of rising prices
15 Oct 2021
The UK’s Chancellor of the Exchequer will announce the conclusions of the 2021 Spending Review in an autumn Budget on October 27, the Treasury has announced. The three-year review will set UK Government departments’ resource and capital budgets for 2022-23 to 2024-25 and the devolved administrations’ block grants for the same period. It has been widely suggested that the Budget will set out more tax increases – including income tax and council tax - for UK consumers. It comes at a time when households are already experiencing rising inflation and soaring energy prices. As such, many will be needing to review their personal finances to help mitigate the tax hikes and increasing prices. And it’s not just in the UK. The scenario is being played out across the world as governments try and balance the books after unprecedented fiscal measures were implemented during the pandemic. Here we take a look at how consumers might prepare to shore-up their finances…
Debt repayment is a major outgoing for many consumers. Those with credit card debt may be able to transfer the outstanding amount to a 0% balance transfer credit card. This is likely to allow for an interest-free period in which to repay the remaining balance, often making it quicker and cheaper. Another option for those who have debts with different creditors would be to consolidate their debts into one personal loan. This can reduce monthly repayments and make the debt more manageable.
It’s wise to review savings accounts to make sure you are receiving the best returns. Standard rates on many savings accounts have begun to climb in recent months, meaning shopping around might be a good thing to do right now as you could get a better return by switching.
Check insurance policies
Although insurance policies, including home, vehicle and travel, are important, you also need to ensure that you’re not paying more than they need. It’s possible to easily reduce car and home insurance costs. Don’t fall into the "it's not time to renew now" trap, you can still ditch, switch and save whenever you like.
Review your taxes
Each year there are millions of mistakes with tax codes, meaning a huge slice of the population has paid too much tax.
Boost your income
There are lots of ways to add to your income; whether it's home-working, using the online platforms to profit or getting paid for your opinion.