Help! I don’t know how to manage my money.
According to a recent report by The Money Charity, the average credit card debt of £1,063 per adult would take 24 years and 9 months to repay, when making only the legal minimum repayments, at the average interest rate each month.1
That’s a long time.
Given most of us take at least that long to pay off a mortgage, is it any wonder so many of us struggle to pay off our credit card debt?
The same report claims one person every 4 minutes and fifty seconds was declared insolvent or bankrupt in England or Wales between May and July 2021.
Managing money isn’t always easy. If you’re finding it tough going, here at The Mortgage Expert we’d like to offer the following budgeting life hacks.
Grab your bank statements.
Whether they’re online or still sent in the post, take an hour or two to go through the last few months. On a piece of paper, make three columns:
Regular payments in
Regular payments out
One off payments
|Gas, electricity, water
Mortgage or rent
Add up the first two columns. Column one minus column two will give you the amount you have left at the end of the month. Divide column three by twelve and this is how much you should put in a safe place to pay for the bigger bills. Whatever is left you can spend each month on the fun stuff!
Paying too much?
When was the last time you checked whether you are paying the best rate for your mortgage, insurance and utilities bills? We can help with the mortgage and insurance repayments. If you’re out of your fixed rate contract or haven’t checked the rate for several years, please give us a call to check whether we can save you money on your repayments.
Anything you’re paying for you don’t need?
When you check your bank statement, look out for out-of-date subscriptions or payments you’d forgotten about. A classic error is to continue paying insurance for large household goods, such as washing machines, that have since been replaced.
Watch those subscriptions!
We’re all tempted by the ‘three months free’ offers provided by entertainment, gyms and online games. How many are you paying for but don’t use? Time to have a review and cancel the ones you don’t need.
What? Pay more towards my mortgage? Why!
If you do manage to save money, consider using it to overpay on your mortgage. Depending on the type of mortgage you have, it may be possible to bring down the term of your mortgage by paying a little extra each month. This is especially beneficial in the early years of a mortgage as interest is based on the total amount you owe. The less you owe, the less there is to pay in interest.
And finally, ask for help.
Our biggest tip is always to seek expert advice. At The Mortgage Expert, we understand the impact debt can have on your ability to find a good mortgage. We have access to the most understanding mortgage providers and we will do all we can to help you fulfil your dreams of owning your own home.
Put us to the test.
Ask about remortgaging or purchasing a new home with or without a poor credit history.
You’re not alone.
Talk to an adviser today to check whether you’re on the right mortgage deal for you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE