If you’re having trouble making ends meet due to steep living costs, it’s vital to look at ways you might be able to ease some of the financial pressure.
Inflation is on the up again, and costs are still increasing across the board on most things ranging from food to clothing and household goods, and although interest rates have started to reduce, those with variable rate mortgages, credit cards and loans still face much higher costs than previously. These increases in general living expenses are making it particularly tough for those on lower incomes to manage their spending.
Here’s our rundown of some of the ways you might be able to get help if you’re struggling to stay in control of your finances.
Mortgages and rent
If you think you’re not going to be able to afford to pay your mortgage, contact your lender as soon as possible to discuss the options that might be available to you.
There may be certain ways to make your monthly payments more manageable. For example, you might be able to move your mortgage from a repayment to an interest-only basis, although you’ll need to be able to demonstrate to your lender that you’ve got a plan in place to pay back the capital you owe at the end of your mortgage term. Alternatively, you might be able to temporarily extend your mortgage term, or if you’re not tied into your current mortgage deal, you could think about remortgaging to a cheaper rate to reduce your monthly payments.
Want to speak to a mortgage advisor? Speaking to an experienced mortgage advisor can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with an independent mortgage adviser at Fidelius. Speak with a qualified, FCA-regulated, independent mortgage adviser you can trust. Rated 4.7/5 on VouchedFor from over 1,250 reviews.
If you’re renting, let your landlord know as soon as possible if you’re not going to be able to pay your rent. They may be able to work out a way you can temporarily reduce your payments. Landlords can’t start eviction proceedings against tenants until they have missed more than three months of rent payments, so even if yours is unsympathetic, they can’t ask you to leave straight away. The charity Shelter has plenty of useful information and housing advice for those struggling to pay rent.
Overdrafts
If you’re overdrawn on your bank account, and you do not have an arranged overdraft or you have exceeded the limit on one, charges can rack up quickly. Contact your bank directly to ask how they can help you. They should try to help if you’re finding ti impossible to meet everyday living costs, and going into the red on your account. For example, they may offer to reduce or cancel fees, or offer a manageable repayment plan.
If you fail to get the help you need from your bank, and you’re struggling with spiraling debts, it may be worth contacting a debt charity to see if they can provide a solution. You can find out more about overdrafts in our guide How overdrafts work.
Credit cards and personal loans
If you’re worried about paying off your credit card balance, you could consider switching to a balance transfer credit card with a lengthy 0% introductory interest rate. This would let you pay off what you owe without building up hefty interest charges on top of it. We regularly update our list of the best balance transfer credit cards so you take a look at some of your options.
If you’re having trouble paying off a personal loan, get in touch with your provider directly and see if you can arrange a different repayment plan that suits you better.
Energy bills
Energy regulator Ofgem has set the energy price cap at £1,717 a year on average from October 2024, rising to £1,738 from January 2025.
Remember that the Energy Price Cap is not a cap on the amount you can be charged for your energy. The actual amount you’ll pay will depend on how much energy you use, so those living in bigger homes or properties that aren’t energy efficient could pay much more than £1,717 a year, whilst those using less energy will have lower bills. Read more in our article What is the energy price cap?
Many people are currently in debt to their energy supplier, although some might be entitled to some help with their bills. Find out more about what your options are in our articles Are you eligible for help with heating costs? and What can you do if you can’t pay your energy bills?
If you’re not entitled to the Winter Fuel payment, which is now means-tested, and you’re on a low income, check whether you qualify for Pension Credit or any other means-tested benefits, as this will mean you get more support with heating costs. For example, you should then be eligible for the Warm Home Discount Scheme, which gives you a one-off discount on your electricity supplier between September and March.
Read more in our articles Winter Fuel Payment 2024: who is eligible, and how can I claim? The energy bills crisis: what can you do about soaring costs? You can also find tips on how to reduce your energy bills in our article Save money on your energy bills.
Water bills
You might be able to save money on your water bills by having a water meter installed. Some companies, such as the Consumer Council for Water, provide a calculator to help you figure out if getting a meter installed could keep your bills down. Find out more about this and other ways you can reduce your water bills in our article How to reduce your water bills.
Most water companies offer support to customers who are having problems paying their water bills.
Options may include moving to a capped tariff where your payments won’t exceed a certain amount, taking a break from payments until you’re able to get back on track, or your provider might agree to lower your bills temporarily.
What you’ll be offered will depend on your individual situation, so get in touch with your supplier to see what help they can offer.
Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £530* per year.
*51% of consumers could save £529.95 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from February 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
Council tax
If you don’t think you’ll be able to afford to pay your council tax because you’re now on a lower income or claiming benefits, you might be eligible for a council tax reduction which could reduce your bill by up to 100%. The amount you receive will depend on where you live, your circumstances, your household income and whether you have children or other dependents living with you. You can apply for a council tax reduction here.
If you don’t qualify for a reduction, you may still be able to ask your council whether you might be able to take a break from payments for a month or two. The support available varies from council to council so it’s worth contacting your local council to find out what help they can provide – you can find their contact details here.
Petrol and diesel
Although the Government cut fuel duty by 5p a litre in the latest Budget, fuel prices remain steep, so it could pay to shop around next time you need to fill up.
You can search for the cheapest fuel prices in your area at Petrolprices.com, which has data for nearly 8,500 petrol stations across the UK. The site claims that the average user can save as much as £220 a year by always locating the cheapest places to buy fuel.
Seek professional help if you’re struggling
As well as asking for support on your regular bills, it’s a good idea to look at other ways you might be able to reduce your outgoings. Hopefully our articles How to save money – 21 money saving tips and 32 frugal living tips might have some useful ideas.
If you’ve explored all of your available options and are still struggling, your council may offer a local welfare scheme for families and individuals who are struggling to meet basic costs. The Household Support Fund, which was recently extended until April 2025, is provided by the government to councils for this purpose. Contact your local council to see if you might be available for support. You can read more about this in our article The Household Support Fund Explained.
If you’re finding it impossible to manage your finances during this difficult time and are worried about your debts spiralling out of control, it’s important to get professional help as soon as possible. Charities StepChange, National Debtline and the Debt Advice Foundation all offer free debt advice and may be able to help you arrive at a manageable repayment plan with your creditors. The sooner you act, the better your chances of finding a workable solution so don’t be ashamed about speaking to someone during these times of crisis. Find out more in our article Are money worries affecting your mental health?
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