{"id":4968,"date":"2024-02-12T10:39:45","date_gmt":"2024-02-12T10:39:45","guid":{"rendered":"https:\/\/darren-hopkins.trulyifa.co.uk\/32-billion-hole-in-uk-savings-pots-2\/"},"modified":"2024-02-13T09:04:27","modified_gmt":"2024-02-13T09:04:27","slug":"32-billion-hole-in-uk-savings-pots-2","status":"publish","type":"post","link":"https:\/\/darren-hopkins.trulyifa.co.uk\/32-billion-hole-in-uk-savings-pots-2\/","title":{"rendered":"\u00a332 billion hole in UK savings pots"},"content":{"rendered":"
The average cost of housing, food and energy bills has increased by nearly \u00a3500 per month as of September last year compared to August 2022, according to statistics regarding the cost of living in the country. This rise in living costs has forced many people to dip into their financial reserves.<\/p>\n
The survey showed that over 23% of respondents had to utilise their savings due to the escalating living costs. The average amount withdrawn from savings stood at \u00a32,623. This translates to an astounding total of \u00a332 billion being utilised to balance the increasing household expenses.<\/p>\n
Interestingly, the research also reported a rise in overall savings levels. However, this increase was primarily seen among homeowners who have paid off their mortgages. These individuals held double the average savings (\u00a333,858) compared to the rest of the sample (\u00a317,575). In contrast, renters, especially those in social housing, only possessed \u00a33,642 in savings. Alarmingly, one in five people (21%) had less than \u00a3100 in savings, a statistic that has remained consistent since March.<\/p>\n
The study further revealed that 76% of people were anxious about rising interest rates following consecutive hikes in the Bank of England Base Rate since December 2021. Renters expressed significant concern, with 82% worried about climbing rental payments. Similarly, 80% of homeowners with a mortgage voiced fears about rising mortgage costs. This is a significant increase from the previous year, when only four in ten renters and a third of mortgage payers expressed such concerns.<\/p>\n
The increase in the base rate has positively impacted savings interest rates. Despite this, one in six individuals (16%) plan to use their short-term savings to manage the bill surge. Consequently, they\u2019ll draw less benefit from the now higher interest rates as they dip into their savings to balance the mounting bills.<\/p>\n
Almost half (46%) who have or intend to withdraw from their savings have turned to their \u2018rainy day funds\u2019. This reaffirms the value of maintaining an emergency fund. Consequently, only a small fraction of people would consider other financing methods to cover rising living costs. These include increasing credit card spending (6%), borrowing from relatives and friends (5%), utilising a bank overdraft (4%) or turning to payday lending (1%).<\/p>\n
Additionally, most individuals are determined to maintain their long-term investments, including pension savings. Only a small number of people (7%) would contemplate tapping into their pension or similar long-term investments to handle escalating living costs.<\/p>\n
Start by deciphering where your money goes. It may sound simple, but the actual amount of expenditure each month and its allocation might surprise you when laid bare. Access your bank statements and credit card bills from the past three months, either physically or online, and scrutinise them.<\/p>\n
Highlight areas where you could spend less money on non-essentials. This could be anything from an unnecessary high-end broadband package to a mobile phone contract with unused data. Notably, unused subscriptions like gym memberships often drain money unnecessarily.<\/p>\n
If you find it challenging to clear your energy bills, don\u2019t hesitate to contact your energy provider to discuss possible payment plans. They should agree on a plan considering your current income and outstanding balance. If you can\u2019t agree on a plan, contact Citizens Advice for assistance.<\/p>\n
You may qualify for a Council Tax discount depending on your living conditions and cohabitants. For instance, you can enjoy a 25% reduction if you\u2019re the sole adult in the property or if the other occupant is a full-time student or someone who qualifies for the disabled band reduction scheme. Discover what discounts your local council offers at www.gov.uk<\/a>. Note that different rules apply for people residing in Northern Ireland who pay rates instead of Council Tax.<\/p>\n Billions of pounds in state benefits go unclaimed every year. You could be missing out. Turn2us, a national charity, provides a free and confidential benefits calculator on its website. This tool assists you in determining which means-tested benefits you\u2019re entitled to. They also have a grant search tool for information on grants you may qualify for.<\/p>\n If you\u2019re struggling to afford essentials, resorting to one credit card to pay off another, or if your debts are causing you sleepless nights, contact a debt advice charity. Organisations like StepChange<\/a> or National Debtline<\/a> can provide free help to manage your debts effectively. The national charity Turn2us<\/a> has a free and confidential benefits calculator on its website (https:\/\/benefits- calculator.turn2us.org.uk\/)<\/a>, which can help you work out which means-tested benefits you\u2019re entitled to. It also has a grant search tool (https:\/\/grants-search.turn2us.org.uk\/)<\/a> for information on grants you can apply for.<\/p>\n Grocery bills often constitute a significant portion of household spending. Therefore, it\u2019s wise to find potential savings. Plan your weekly meals and jot down a shopping list to avoid buying unnecessary items. Consider switching to a cheaper supermarket or different brands within your preferred store.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The average cost of housing, food and energy bills has increased by nearly \u00a3500 per month as of September last year compared to August 2022, according to statistics regarding the cost of living in the country. This rise in living costs has forced many people to dip into their financial reserves. The survey showed that…<\/p>\n","protected":false},"author":6,"featured_media":4967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nUNCLAIMED STATE BENEFITS<\/strong><\/h5>\n
MANAGING DEBTS EFFECTIVELY<\/strong><\/h5>\n
SAVING ON FOOD BILLS<\/strong><\/h5>\n