Britons may be wondering if there are ways to manage their money and alleviate some of the pressure on their households. Express.co.uk spoke exclusively with Neil Kadagathur, Co-Founder and CEO of Creditspring on how Britons can manage these rising costs.
He said: “The cost of living crisis is about to bite harder when energy bills soar and especially now with the National Insurance increase kicked in.
“The Bank of England’s latest interest rate rise isn’t going to reduce living costs or alleviate pressure on households struggling to make ends meet – and it’s not going to provide savers with any respite either.
“Within this context, trying to save money day to day is challenging. But the good news is that there are a host of new apps and tools that can help people to manage their money better.
“From budgeting tools that help people keep track of where they’re spending their money to round-up services that save a small amount every time a payment is made, these products make saving more manageable, even for those who may have thought they could not afford to.
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“These types of tools can also provide people with new ways to borrow to cope with unexpected expenses, helping them to avoid high interest, high risk alternatives like payday lenders.”
Having better money management can make all the difference as people will be more aware of where their money is actually going each month, which could potentially stop people falling into further debt.
Mr Kadagathur discussed his top tips for saving money.
He said: “One of the first ways people will try to save money is by cutting back on everyday spending.
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“Get savvy when you’re doing the weekly shop – smaller, local supermarkets tend to charge more than their larger counterparts – and think twice about what you’re buying.
“For example, branded medication often means you’re just paying for the nice packaging as they contain the same ingredients as supermarket own brand products, and you can often save money on drinks by walking to the back of store and choosing your drink from the aisle rather than the chilled section at the front where prices are higher.”
He encouraged Britons to use budgeting apps if they can.
There are a whole host of budgeting apps and tools available to help people take control of their finances.
He explained that money management apps like Cleo and Plum cam help people understand where their money is going so they can see if there are any areas that they are overspending.
Additionally, he reminded Britons to only use ‘Buy Now Pay Later’ if they can repay.
He said: “A third (32 percent) of people don’t know that BNPL is a form of borrowing, but it is. If you miss a payment it can impact your credit score and even lead to debt collectors in the worst case.
“It may seem like a simple way to spread the cost of an item, but it only works if you know you will 100 percent be able to afford all the repayments.”
Britons are warned to avoid high-cost lenders especially when they are in a moment of need.
He added: “It can be tempting to turn to the types of lenders you see advertised on TV who promise your money will be with you in minutes. But don’t! These types of lenders often come with sky high interest rates which can lead to more trouble down the line and prevent you from accessing cheaper loans in future.”
Lastly, people should remember there are people who can help.
Mr Kadagathur explained that sadly, three in ten (29 percent) adults in the UK feel terrified for their financial future.
He said: “If you do get into financial difficulty, remember that help and support is always available.
“Charities like StepChange offer free expert debt advice to help people get back on track with their finances. Just answer a few questions and they’ll be able to tell you what solution or service is best for your circumstances.”
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