A study examining the financial status of UK households since the start of the pandemic found that rising prices have put more individuals in financial difficulties than Covid-19. Over 46 million citizens in the UK continue to say that their cost of living has increased. More quickly than usual, prices are rising everywhere. Food, clothing, and gasoline are the necessities that fall under this category.
According to the study, most people have reduced the quality of their diets, a third have pawned items, and a quarter has canceled insurance. Families with three or more children, disabled persons, renters, and single parents are those most impacted. While credit card debt is increasing, very few people have any savings.
Mubin Haq, CEO of the Abrdn Financial Fairness Trust, says, “This is the first significant degradation we have noticed since tracking people’s finances when the pandemic started.” Although hard times are affecting everyone, those with the lowest incomes are disproportionately affected by price increases.
The truth is more than one in five homes in Wales and Scotland are experiencing “severe financial difficulties,” which is a worsening trend than in England and Northern Ireland, where the percentage of households considered secure has dropped from 38% to 31%. Increasing energy costs, transportation costs, and rising grocery prices, in that order, are the leading causes of rising costs.
People are buying less food and other money-saving strategies as the cost of living issue bites harder and harder. However, many people are having trouble paying their critical payments.
What’s The Solution?
‘’There isn’t a magic wand that can solve the housing crises’ affordability issues,’’ Stephen Taylor, an entreprenuer advises. ‘’However, several cost-free tactics might materially improve the bottom line of your home budget.’’
Turning off the heating, using the cooker less frequently, and skipping a few showers and baths were the three most popular ways to reduce expenses. Some expenses, like rent or mortgage, council tax, and utilities, are unavoidable.
However, having your annual insurance policies—such as those for your home and car—renew automatically is expensive. Switching to a quick and affordable option might result in several hundred pounds in annual savings.
Choose from various policy options to get cheap coverage that works for you and your automobile. Find Quotes and stop paying interest on credit cards. Also, check to see if there are any income-related perks or grants you might be missing out on if you are confident that your regular outgoings are as minimal as they can be.
Over time, minor adjustments to engrained daily routines can also be beneficial. For instance, deciding to consume less energy. Understanding which home appliances consume the most power is a brilliant place to start regarding energy conservation. Changes made outside the home, such as looking for free parking and bringing your pre-packaged lunch and coffee, can bring a significant impact.
For large segments of the population, having trouble keeping up with daily living expenses is nothing new. But the struggle to stay afloat in the rough financial waters continues to be fierce.