Multiple bank holidays in May will see millions of people enjoy long weekends between now and the end of the month. Scots enjoying the May 1 holiday also have Coronation Monday on the 8th and the Spring holiday on the 29th to look forward to.
The extra days are a great opportunity to catch up with spring cleaning and getting garden-ready for summer, but they also present a perfect chance to check over your finances and make sure you’re on track for the months ahead. Although inflation remains high at 10.1 per cent, it is expected to fall below double-digits for the 12 months to April and energy prices are forecast to drop by July, which could see switching deals start to appear again.
Craig Bundell, Help me Borrow Director at Tesco Bank, shares five tips on how to take a fresh look at managing your money, start dealing with debt, budget setting and getting financial help this spring.
Craig said: “Clearing out the shed or dusting down the garden furniture are often top of the spring cleaning to-do list but it’s also a good time to do a pre-summer check on your finances.
“With the cost of living having a real impact on spending and household bills likely to have changed in the last few weeks, now is the time to dust off the budget, check your priorities for the summer, and make any changes you need to.”
Five financial checks to make this month
Clear out your budget
If you have a budget in place, now is the time to review it. Your spending will vary from month to month, and with recent changes to household bills and the start of the new tax year, now is the right time to review your budget and see if you need to make any changes.
Refresh your money goals ahead of summer
Whether you’re saving for the school holidays or a trip away with the family, review your money goals and see how you’re getting on. If you need to change your targets, or tweak the amount you need to save, now is the time to do so. And if you don’t have any savings goals in place, try and set some - having a clear figure in mind can motivate you and help you to reach your goal faster.
Throw away any debt shame
Spring is a good opportunity to have a fresh start with your finances, and this can mean being open and honest with loved ones about your financial situation. Nearly one in four (23%) people feel shame or embarrassment discussing debt and 18 per cent would never confess to being in the red.
While it can feel challenging, being open and honest about any debt or money worries you have can help you work out a way forward, helping to take the pressure off and potentially ease any negative impact on your mental health. Often the first step can be the hardest, but being open is the key.
Prioritise your payments
Whether you have one outstanding debt or multiple, it’s important to understand how much you owe and when your repayments are due.
Some bills such as mortgages, rent or Council Tax, or payments could have higher consequences if not paid on time, so it’s vital you prioritise them accordingly.
If you have multiple payments due, it could be worth considering a debt consolidation loan, which will combine your debt into one payment, making it easier to manage. It could also help reduce the total amount of interest you pay on servicing existing debt and, depending on personal circumstances, could be a good way to reduce the size of your monthly repayments.
The total amount of interest repayable over the life of the borrowing should always be considered alongside this. It’s important to seek financial advice if you’re unsure whether this is the right approach for you.
Speak to the experts and consider your options
Tesco Bank’s latest research showed that 30 per cent of people don’t know where to go for debt and other financial advice.
Charities and organisations including Citizen’s Advice, StepChange, Christians Against Poverty and Advice Direct scotland offer free, confidential and impartial advice on how to deal with debt.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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