For many households around Britain, 2012 was not the most comfortable of years financially.
With austerity measures, job cuts and the rising cost of living, many families were stretched to breaking point, trying to juggle dwindling income with increasing expenditure.
And the bad news is that 2013 doesn’t look to be bringing any change to the financial climate; the national deficit is not reducing as expected and Britain is under threat of losing its top notch credit rating among numerous high street brands – with Blockbuster the latest victim. All of this adds up to pressure to maintain spending cuts, with little money left over to help those who are struggling.
The double dip recession seems to have also brought about a marked change in the spending habits of the nation; although splashing out on plastic remains more or less as popular as ever, the amount of borrowing being repaid is cancelling out the amount being spent. Brits are far more focused than they have ever been in recent times on paying back what they borrow and avoiding falling into any more debt than necessary.
It is difficult to pinpoint the exact reason for the change in the collective consciousness but experts believe that a lack of security is making people nervous about having too much debt. With an increasing number of jobs being axed and overtime and bonuses being drastically reduced, the amount of money being earned is not just falling but feels very precarious. People are therefore doing everything they can to put themselves in the best financial position possible, in case they are victims of the economy.
And unfortunately, no matter how hard you work, there is the chance that you could end up being one of the unlucky ones.
Figures from money charity, Credit Action, reveal that 1,399 people were made redundant every day between July and September last year, a figure which has remained constantly high all year. And during that same period, 894,000 people had been out of work for more than a year, piling huge amounts of pressure on their household budget.
Unfortunately, financial hardship is something that can hit anyone and if it does, it’s important to deal with it sooner rather than later. And it might not be getting made redundant that causes the problem; it could be long-term sickness for either the main bread-winner or someone they need to take care of, or a failing business for the self employed. And many small businesses are finding it tough to survive with such little money being spent in the economy.
How to get your finances under control
If you think your debts may be spiraling out of control, or you simply don’t have enough to meet your commitments and pay for your essentials, it’s imperative to get help straightaway – even if you expect your situation to improve before too long.
There are many types of debt help services you can take advantage of, depending on how much money you have coming in and how much you owe. Some solutions are more flexible than others, so if your situation improves and you wish to increase debt repayments and clear debts in a shorter amount of time, you can.
Dealing with debt can be emotionally exhausting so getting some expert help can be a way to relieve some of the pressure. There are many professional debt management companies such as Baines and Ernst, who can take on the responsibility of talking to your lenders on your behalf and negotiate lower repayments for you.
Hopefully, 2013 will be kind to you and by managing your money sensibly, you will be able to stay out of debt, but if the worst happens and you find yourself in difficulty, take some comfort in knowing that you are far from alone and that there is plenty of help available to get you through.
Has anyone ever used a debt service before or gone into voluntary / forced bankruptcy?
Thankfully I have never had to go through bankruptcy but have hard tough times and living lean as early as possible helped build a cushion to stomach the bumps on the road.![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
Pauline recently posted..13 money resolutions for 2013: #10 stop buying!
Thankfully, I haven’t had to utilize these options, but I came dangerously close to needing to years ago. I’ve learned to reign in my spending habits and keep an eye on my finances now.![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
The Happy Homeowner recently posted..Friday Link Love: Roommates, Gold and Princesses
I guess that lessons has served you well! 🙂
Absolutely! I’m happy that I’ve learned from my mistakes and that I’m no longer making them 🙂![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
The Happy Homeowner recently posted..Personal Finance and Lance Armstrong: What You Can Learn from Lance’s Fall from Grace
Like Pauline, thankfully I’ve never had to go through a bankruptcy but times were tough even my last year in the UK. I was running my house on my own and I was very frugal in everything I did but noticed prices going up. Life isn’t easy no matter where you live, that’s what I learned. Even in Canada we budget, save and make sure not to spend more than we earn. Cheers![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
Canadian Budget Binder recently posted..How I Support My Family On One Income
Do you find life a lot cheaper in Canada? I know that (London especially) the UK is one of the more expensive places to live..
Yes I find most things cheaper here in Canada especially housing and they are much bigger for your $$ and have a basement.Our basement is about 1000 sq feet so pretty decent size.The house is about 5 times the house size I had in the UK and it’s cheaper than my 600 sq ft house back home and I get a double garage where I didn’t have one at home. Some food is pricey like cheese but fags are cheaper but I quit smoking anyways. Vehicle Insurance can get pricey over here. Overall I’m going to say yes it’s cheaper for some things but not others.![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
Canadian Budget Binder recently posted..Mr. CBB’s Crispy Chicken Parmigiana On Garlic Mashed Potatoes
It’s strange how inflated some items are… In Luanda (Angola) it costs about £8 for a loaf of bread! I want to live in Texas one day… it seems like you can get a HUGE amount of house for your cash. The equivalent sized house to our 2 bed terraced in London in Houston is a 5 bed with a pool! One day my friend.. one day! 🙂 PS Glad you quit smoking dude
You can get a 5 bed house just outside where I live with an inground pool and a full basement for around $500k and up. The thing about the USA and I don’t know if it’s everywhere as I only go what I see on those house hunting shows on the tele is there are no basements in most homes similar to the UK. All I know is, it’s cheaper here no matter what way you look at it, at least for housing. If I told my mates back home I had a pool they would be in awe.. ha!![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
Canadian Budget Binder recently posted..The Pros and Cons of Homeschooling In Canada Part 2 of 2
Dealing with debit can be extremely frustrating. If requires focus determination, and perseverance to get your debit under control. I agree Savvy debit services can be a huge help. Hope 2013 is treating you well my friend.![My Profile](https://savvyscot.com/wp-content/plugins/commentluv/images/littleheartplus.png)
Stephen S. recently posted..Interview with Michael Hodson: The Ultimate Train Challenge
Hey dude… agree with your comments! 2013 is looking to be amazing… just wrote a new post on the holiday we have coming up! 🙂 How about you dude?