What’s the Issue with Car Finance? 

From 2007 to 2021, many car dealerships and brokers used something called Discretionary Commission Arrangements (DCAs). This meant they could set their own interest rates for car loans. Sadly, this led to many customers paying more than they should have, as the extra commission wasn’t clearly explained. The FCA has been investigating this practice to see if it was fair to consumers. 

What’s Happening Now? 

The Supreme Court is set to make a big decision in April 2025 about whether these commissions were unlawful. This decision will help decide how consumers might be compensated. The outcome could affect a lot of people, so it’s important to stay informed. 

What the FCA Plans to Do about Car Finance Claims 

If the Supreme Court rules in favour of compensation, the FCA plans to set up an easier way for people to get money back. Instead of filing individual claims, the FCA wants car finance companies to identify affected customers and pay them back directly. This would make the process simpler and quicker for everyone. 

Key Points to Remember 

• Who is Affected? If you got a car finance agreement between 2007 and 2021, you might be entitled to compensation, especially if the commission wasn’t clearly explained. 

• How Much Could You Get? Estimates suggest that payouts could average around £1,100 per person, with total industry liabilities potentially reaching up to £44 billion, according to reports from The Guardian and industry sources. 

• What Happens Next? After the Supreme Court makes its decision in April 2025, the FCA will explain how the compensation process will work, probably within six weeks. 

What You Can Do 

• Stay Up to Date: Make sure to follow updates from the FCA and other trusted news sources such as Which?

• Check Your Agreement: If you think you might have been charged unfairly, it’s a good idea to review your car finance agreement. You may be able to claim compensation. 

At The Debt Advice Service, we’re here to help you understand these changes and what they mean for you.   We expect further information on this topic to be available in April 2025. 

The post Update on Car Finance Claims: FCA’s Latest News appeared first on The Debt Advice Service.

So, when exactly should you reach out for support? Here are some signs it might be time to get help—and how doing so can help reduce stress and improve your mental health. 

Your Debt is Becoming Unmanageable

One of the most common signs that it’s time to seek help is when your debt feels overwhelming. If you’re unable to make your monthly payments, or if your credit card balances keep increasing despite your best efforts to pay them off, it’s a clear sign that things are getting out of hand.  

Debt can spiral quickly, leading to stress and anxiety, which in turn can affect your mental health. By reaching out for help early on, you can stop the cycle before it becomes unmanageable. Debt Counsellors can help you create a clear and achievable repayment plan, offering immediate relief from the uncertainty and pressure that can weigh on your mind. 

You’re Struggling to Keep Up with Payments

Missing payments or only making the minimum required payments can add extra strain to your finances and your emotional well-being. If you’re constantly juggling multiple bills or paying off one creditor while another one continues to grow, it’s time to evaluate your options. The stress of trying to keep up with payments can be overwhelming, leading to sleepless nights and constant worry.  

Getting professional debt advice can reduce the stress of managing multiple bills by helping you streamline payments and reduce the anxiety of not knowing how you’re going to make ends meet.  

It’s a step toward not only better financial health but also better mental health. 

You’re Getting Calls or Letters from Creditors

Persistent phone calls, emails, or letters from creditors or debt collectors are a sign that your debts have reached a point where they need immediate attention. The stress from dealing with creditor harassment can impact your mood and mental health, causing feelings of guilt or even panic. Rather than letting these communications escalate your stress, seeking help from an expert can ease your burden. They can handle negotiations and help you regain control, so you no longer have to face the emotional toll of creditor contact alone. 

You’re Using Credit to Pay Off Existing Debt

If you’re taking out new loans or using credit cards to pay off existing debt, it’s a sign that your financial situation is in trouble. This “debt snowball” effect can leave you stuck in a vicious cycle of borrowing and paying off debt, often leading to more debt in the long term. This cycle can trigger heightened anxiety, stress, and even feelings of hopelessness.  

A professional can help you stop this cycle, offering solutions like debt consolidation, which will simplify your finances and reduce the mental load of managing multiple debts. By taking charge of your finances, you can begin to feel more confident and less overwhelmed. 

You’re Feeling Anxious or Overwhelmed by Your Finances

Debt can take an emotional toll, leaving you feeling anxious, stressed, or even embarrassed. The constant worry about making ends meet, the stress of struggling with money, or the fear of not being able to pay your bills can negatively affect your mental health, leading to depression and burnout. If you find yourself losing sleep over your finances or constantly worrying about bills, it’s a good idea to get help. Financial experts can provide both financial guidance and emotional support, helping you navigate your debt with a sense of control and clarity. By taking action to talk about your debt, you can ease mental stress and regain a sense of well-being. 

You’ve Exhausted Your Options

Sometimes, we try everything we can to reduce our debt, from cutting back on spending to consolidating loans, but nothing seems to work. If you’ve exhausted your options and still find yourself struggling, it may be time to reach out for expert advice. 

Experts can offer fresh perspectives on your situation and guide you toward solutions that could reduce your financial strain and emotional distress. Knowing you have a roadmap and a plan can significantly reduce anxiety and offer much-needed peace of mind. 

You Want to Avoid Bankruptcy

Bankruptcy is a last resort and can have long-term consequences on your financial health. The thought of filing for bankruptcy can add immense stress, fear, and uncertainty about your future.  

If you’re feeling like bankruptcy is your only option, getting help from a debt expert can help you explore alternatives that could prevent you from having to go down that path.  

There are options that might be a better fit for your situation, allowing you to avoid the stigma and stress of bankruptcy while also alleviating your financial pressures. 

Take Action Today 

The earlier you seek help, the easier it will be to regain control of your financial future—and your mental health. If you’re having any of the signs mentioned above, it’s important to reach out for professional help before your debt situation worsens. 

With the right help, you can develop a plan to reduce your debt, rebuild your credit, and move forward with a fresh financial start. You’ll not only improve your financial situation, but you’ll also lessen the stress and emotional burden that often accompany it. 

Don’t wait until it’s too late—take the first step today toward a debt-free future and a healthier, more balanced state of mind. 

The post When is the Right Time to Get Help with Your Debts? appeared first on The Debt Advice Service.

If you have spoken to any off-shore company saying they are The Debt Advice Service, please be aware we do not have any off-shore staff members.

If in doubt please call us on 0800 254 5112 or email us via admin@thedebtadviceservice.co.uk for further advice.

You can also report any fake contact to the National Cyber Security Centre by following the below instructions;

·        a text message, forward it to 7726 – this is free of charge

·        an email, forward it to phishing@hmrc.gov.uk

·        a message in an application, for example WhatsApp, take a screenshot and email it to phishing@hmrc.gov.uk

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Interest rates going up can cause problems for many people, but those already in debt may struggle to cope with rate increases the most.

The Bank of England has increased interest rates by the largest amount in 27 years, half a percentage point, but what does that mean to people already living (and struggling) with debt?

Let’s consider a few potential scenarios…

Personal loans

There are several reasons why someone might take out a personal loan or finance. It may well be to get an extension to the house, or to buy a new car. An interest rate increase will mean that the interest rate on a new personal loan may be higher and the amount to be paid back will therefore be higher. This may affect how much someone is willing to spend.

There are other people however, that may have been looking to a loan to consolidate their existing debts, or they may require a loan to carry out necessary repairs or replace a broken item like a white good or a car. In these situations people might be purchasing at a higher interest rate which might come in at a monthly rate they are going to struggle to afford.

What about people worried about their mortgage repayments?

It’s an understandable worry, as for those not on fixed rates, the impact of rising interest rates may already be front and centre of household conversations. Mortgage repayments are obviously high (if not highest) on the list of essentials, and so people experiencing higher repayments will be looking to make savings in other areas. There will be some people looking at their mortgage repayments alongside other debt repayments, and wondering where the money is going to come from to pay for everything. For those with fixed rate mortgages, the worry is more to do with just how big the jump is going to be once their fixed rate comes to the end of its term.

How about people looking to move house?

The rise in interest rates will be affecting many peoples’ thinking when it comes to moving house. The amount home buyers will be looking to borrow will probably be lower now than it would’ve been before the rate increase, as they have to be realistic about how much they’d be able to pay back in the future. The next question they’ll be considering is how long to fix the rate for, especially if interest rates rise again, as they are widely expected to.

Are there any winners in this?

The only real winners with an interest rate rise like this are savers, who will find that their savings go up quicker. Saving during a period of increasing interest rates can mean you’re in a stronger financial position once rates do eventually stabilise. That being said banks are being a lot slower to pass on the rate interest to savers than they are to adding it to the interest rates they are charging.

That being said, saving in the first place becomes a tougher task when repayments are increasing with everything, at the same time as the ongoing rise in the cost of living, which is showing no sign of slowing down.

What can you do?

For people worried about how a rise in interest rates affects their situation, especially with regards to their existing debts, there may be options available to help soften the blow. As ever, burying your head in the sand is a bad idea, as things will likely get worse before they get better, and doing something is always better than doing nothing.

Whilst no two cases are ever the same, considering consolidation options such as IVA’s and Debt Management Plans could provide workable solutions for many people.

Interest rate increases can cause stress and real financial difficulty for those living in debt, especially at a time like this where everything seems to cost more, but taking a positive and proactive approach now could make a real difference for your future.

The post How the latest interest rate rise may affect you appeared first on The Debt Advice Service.

The amount is usually at least £90 per month and the length is usually over five years.

When the IVA expires, assuming you have stuck to the terms, any unsecured debts that are left unpaid are written off.

But, is an IVA the right choice for you?

First of all, you’ll need to know whether you qualify or not…

To qualify for an IVA, you need to live in England or Wales, Scotland has it’s own debt solution called a Protected Trust Deed. You usually need a minimum debt level of £6,000 of unsecured debt, with at least two lenders. The type of debt that you have may vary across things such as credit cards, loans, catalogues, store cards, etc.

In addition to this, you must be able to prove that you’re struggling with your current repayments if you’re to be considered for an IVA.

Just because you qualify for an IVA however, doesn’t necessarily mean that it’s the right choice for you.

You can find out about the types of debt that an IVA can be used for here, but some things worth considering are that:

• You need approval from unsecured creditors who you owe at least 75% of your debt to.
• An IVA stays on your credit report for 6 years which affects your credit rating.
• An IVA is a legally binding contract with limited flexibility.
• Should your financial situation improve, you might be required to increase your payments to align with your income levels. This includes substantial earnings in overtime or bonuses.
• If you are a homeowner, you may be required to release equity by re-mortgaging your property.

Whilst the above points must be considered, there are certain benefits to getting an IVA which are just as important to bear in mind:

• An IVA consolidates all your debts into one affordable monthly payment.
• All interest and charges are frozen upon the creation of an IVA.
• All contact between you and your creditors will cease and be handled by your Insolvency Practitioner. You’ll also receive full legal protection from further creditor action.
• Should your financial situation worsen, your IVA may be altered to reflect this change of circumstance.
• Upon the completion of the IVA’s fixed term, any remaining debt will be written off.

After weighing up the benefits and considerations, and checking whether or not you qualify, you may decide that an IVA is the best solution for your needs. What is right for one person though, may not be right for the next person, and each case needs to be looked at on it detail and in isolation.

To find out more about an IVA contact one of our debt specialists today on 0800 254 5112

The post Is an IVA the right choice for you? appeared first on The Debt Advice Service.

What is a doorstep loan?

A doorstep loan does essentially what it says on the tin, it will allow you to borrow money, which is then delivered to your doorstep. The process is of course slightly more complicated than that. Doorstep loans are designed to cover short-term emergency costs and therefore will only loan a relatively short amount, normally between £100 and £1,000, with a term of usually no more than one year.

A doorstep loan is not a payday loan

This is quite important and will be touched upon later. A doorstep loan can run from a month to a year whereas a payday loan is expected to be paid back on the next payday. This means that someone can have longer to pay back their debt.

Advantages of a doorstep loan.

If there weren’t some benefits to a doorstep loan, no one would do it. So, in the interest of transparency, this is what the Debt Advice Service see as the perceived benefits.

• Doorstep loans are often delivered and collected in cash which makes them easier for people that are struggling to get a banks account.
• Lenders can be more open to lending with people who are unemployed or have a poor credit rating.
• Rates are fixed, so you will know how much you will be paying back over the course of the loan.

Disadvantages to a doorstep loan

As with everything there are disadvantages to doorstep loans, and it is the choice of the individual to decide whether they feel the advantages outweigh the disadvantages.

• High interest rates – different lenders have different rates, but we found examples of everything from 9% APR to 1333% APR. This could result in a simple £200.00 loan costing you a total of £642.48 to pay back.
• Doorstep loans are classed as ‘home credit’ which means they weren’t subject to the same scrutiny that pay day loan companies were when the FCA reviewed the sector.
• You are faced with the loan company coming to your door on a regular basis looking for their repayment.

Our fear of a doorstep loan is the spiral it can create. The loan solves the short-term problem but then in the next week, two weeks, you need to find the money to pay the loan back. If you are struggling in the first place this has created an extra expense to afford. If you can’t you may default on something else and then you get another loan to cover that cost and all of a sudden you find yourself heading into deeper levels of debt.

Alternatives to a doorstep loan

Everyone’s situation is different and as such you may well find that not all of these suggestions are available to you, but perhaps one of these options might work for you.

Ask friends or family.

It is never easy to ask to borrow some money but if it is a relatively low amount and you have a good relationship with the person you are asking, then this could provide a good interest free way of covering an unexpected cost.

Use a credit card

There are credit cards available that are offering low rates of balance transfer and interest. These cards can be used to pay off expected one off cost or be used to consolidate your debt in one place.

A guarantor loan

A bit like asking a friend for cash or money this will very much depend on your relationship with those closest to you. A guarantor loan means that if you can’t get a loan, you can use someone who does have a good credit rating to guarantee your loan. This means that if you default they have to pay what they owe.

What to do if you are already spiraling into debt?

If you are already on the path to debt then a doorstep loan will only be a sticky plaster and is likely to make the situation worse in the long-term. If you are in debt then you might need to consider options like a debt management plan or an IVA. If you feel like this is you then speak to our team on 0800 254 5112 and talk to one of our debt specialists.

The post The Perils of Doorstep loans appeared first on The Debt Advice Service.

Create a budget

Not a very exciting place to start but nevertheless it is an important one. We live in a society where we can spend £100 with a tap on a card and the ease of spending is obvious. However, set yourself a monthly budget that is sensible and reasonable. If you struggle to manage this with a card then take out cash for the month and use that to pay for your shopping.

Maybe more important than having a shopping budget is to have an eating out budget. According to NimbleFins a family of 4 will spend £99 a week on shopping but £52 a week on eating out. That is a third of your weekly food spend! By setting a good budget we may find ourselves skipping the odd meal out and saving ourselves money. And if you don’t think you eat out, what about lunch, do you make a packed lunch or do you buy your lunch from a café? Or do you do the £3 meal deal? Did you realise that a £3 meal deal would set you back £720 a year? Maybe, it is time to consider going back to the packed lunch.

Changing where you shop

Not all supermarkets charge the same price. Each supermarket will try and position themselves differently, for example Waitrose and Marks and Spencers will sell on the basis of quality, whereas Aldi will position themselves as a cheaper alternative. Many of us will choose to shop at the supermarket that is closest to us. But do some internet research, are there supermarkets that are still close that might be offering a cheaper shopping experience?

Aside from supermarkets there are also several other shopping experiences that offer cheaper alternatives to the supermarkets for example if you are in receipt of means tested benefits or work for one of the emergency services you might be able to shop at the Company Shop. An organization that sells surplus stock from supermarkets of food on their best before date which will allow you to make a savings and still feed high quality food from well named brands.

There are of course other budget shops, do your research, ask around and find the best shops for you. It might mean going to a couple of different shops a week compared to one but it may well be worth it for the cost saving.

Habits to get into at the shop

When you are in the shop there are various things that you can do to reduce your costs:

Use the world food aisle

The world food aisle can be a great place to pick up some value for money items. Products such as rice, sauces and spices can be cheaper compared to buying in other areas of the shop.

Don’t just look at eye level

Companies pay for prime slots in supermarkets, so the items at eye level are going to be the ones that make the supermarket the most money and not necessarily the best option for the customer. To counter this make sure that you look all around the shelves for your product of choice.

Value packs aren’t always the best value

Always check the price per 100g/ ml to work out the cheapest item gram for gram. Just because the label says ‘value pack’ or ‘50% free’, it doesn’t mean it’ll be cheaper. Two smaller packs can often be cheaper than the ‘value pack’.

Give non-branded a chance

If you are serious about saving money, try this little challenge. Drop one brand level with everything you buy, and if you can’t tell any difference, stick with the cheaper brand.

Buy own branded toiletries and cleaning products

Swapping to own branded toiletries could save you more than you would think. Washing powders, shower gels and other cleaning products are just a few examples of where you can shift down a brand level and start to see meaningful savings.

Never shop when you are hungry

An obvious one and something you have probably heard before, but it is worth repeating, shopping when hungry is likely to lead to spending more.

Time your shopping trip

If you shop in the same shop for awhile you will learn when the shop items are reduced, go shopping at this time and you could find a lot of potential savings. However, don’t get sucked into buying something just because it is discounted. Would you buy the item if it wasn’t discounted? If not don’t buy it. When buying reduced items, don’t forget that you can freeze things, so buying meats, breads on their best before date doesn’t need to be a problem.

Bulk buy

Buying in bulk is often more cost-effective than buying items individually. Look for non-perishables like rice, pasta, tinned items and seasoning.

Change your cooking habits

Changing the way you cook can quickly save you money, and remember the freezer is your friend.

Do bulk cooking:

Meals like curry’s, Bolognese, chili con carne, stews and much more can all be cooked once in a big pan and then saved for a later date. Let’s face it, when do we often give in to the mid-week takeaway. It’s when we are busy, don’t know what to cook and then we lazily reach for the takeaway menu, or app. With food in the freezer, you can quickly, defrost and have a healthy, nutritious and cost effective meal within minutes.

Make your meat go further:

Meat is getting more expensive, so if we are going to cook with meat we need to make it go further. There are several ways that we do that in our house:

Hide the veg

We have young children, and to make our meals more balanced and cheaper we like to add a lot of veg to our cooking, but the children don’t always like this. One way we get around the problem is to blend some of the less popular vegetables like mushroom and then add it to a curry or a bolognese to bulk the meal out.

Plan how to use the left-over roast

There is nothing quite like a roast dinner, but more often than not there are left overs. When we are doing our shopping we have a meal plan in place for the leftovers. This means that for the next day we have the right ingredients to make a curry, wraps, a stir-fry, pasta bake, or something new. By planning the meals, we are able to stretch the Sunday roast to two or three meals that week making our meat spend go much further.

Buy cheaper meats

This might seem obvious, but if you can cook from fresh and freeze, you can batch cook, stews or marinated meat to make delicious meals but with less expenditure.

To conclude

Times are not going to get easier anytime soon, but we can use new and good habits in our shopping, eating out and cooking to reduce the amount that we spend on food each week and month.

The post How to feed your family on a budget appeared first on The Debt Advice Service.

The debt spiral:

The debt spiral can happen to anyone, in fact some websites look at is happening to a country or a business. While this isn’t relevant to our blog and to you as a reader, it does highlight to us that debt can happen to anyone and we need to not be hard on ourselves if we find ourselves in this situation.

So, what is a debt spiral? In it’s simplest form a debt spiral is when your debt starts to become unmanageable and then accelerates from there. You are in a position where you can’t pay off your debt because as the balance gets larger you find that the payments you make are only paying off the interest on your debt. This can lead to more loans being taken out to pay existing ones and getting deeper into debt from there the spiral continues downwards.  It’s like robbing Peter to pay Paul.

How does a debt spiral begin?

There are many reasons for a debt spiral starting, some are listed below.

1. When you take out more debt than you can afford, e.g.
   1. Credit Card Debt
   2. Overspending on occasions like Black Friday or Christmas
   3. Gambling debts
2. Because of a drop in income e.g.
   1. Redundancy
   2. Divorce
   3. A cut in benefits
   4. Sickness
3. Rising living costs
   1. Increased energy bills
   2. Food prices rising
   3. Increase in petrol prices.

When we review the reasons above it becomes apparent that many of the reasons are external factors and not necessarily the fault of the person in debt. In the current economic climate, more and more of us are just using our entire pay packet to cover the monthly living expenses. This creates a situation where we are just not saving money for those everyday emergencies that can suddenly spring up. This means that if your boiler breaks, or your car needs a repair you don’t have the money to cover the cost. This creates a situation where people may put the cost on a credit card, which they can’t afford to pay back, or they look to take out a loan.

No matter what kicked off your debt spiral, it can be difficult to escape when you have high-rate debts. For example, if you have a £4,000 credit card balance with a 22% annual percentage rate (APR) and only make minimum payments, it could take over 21 years to pay off the card. And that assumes you’re not using the card for any new purchases. Payday loans can have much higher APRs, as can certain installment loans and lines of credit for people who have poor credit scores.

How to get out of a debt spiral?

The first thing to do is to not panic. Once you realise that you are in a debt spiral there are ways out, and the sooner into the spiral you choose to do something the easier it is going to be.

The best place to start is to list your debts, it is important to understand which debts are costing you the most and which ones you can pay off quicker. It is also important to figure out how much you owe and what the consequences of not paying each debt is.

If your debts are less than £6,000 then you might want to consider getting a loan to consolidate your debts so that you can pay off your high interest loans and then just have one payment with one interest rate to pay. However, if this strategy is used it needs to be accompanied by a good budgeting strategy. If you go back to building up debt on a credit card you may find yourself in a worse position than you were before. It may be once you have examined your expenses that you will see there are expenses in your life that you can cut back on and with some smart budgeting you can start to reduce those debts.

If your debts are over £6,000 then you might find that you need alternative solutions to help you out of your debt predicament. These could include:

• An IVA, or Protected Trust Deed if you are in Scotland
• Debt Management plan
• Debt relief order
• Bankruptcy

If you are needing to speak to a debt specialist, then give our team a call on 0800 254 5112.

To conclude:

In our current economic climate, there are more and more situations and expenses that could push us into a debt spiral. The important thing is to be aware of it and to look for ways to stop the spiral as quickly as possible. The sooner you catch yourself in a spiral the easier it is to get out of it.

The post The Spiral of Debt appeared first on The Debt Advice Service.

We do recognise that in these hard economic times that not everyone can go on holiday and if you are in debt and feel like you need help then please visit our website – thedebtadviceservice.co.uk

Be flexible on your dates:

If you Google how to save money on holiday you will quickly find websites that will tell you to be flexible with your dates. Or to avoid peak times, like the school holidays. Of course, this is great if you can do that but many of us are tied into when we can take holidays and so we are going to look at other more practical options.

Plan your holiday in advance:

There are many websites that will promote the benefits of last-minute bookings and while this sometimes can be the case more and more it would appear that planning in advance is the way to go.

Plan the destination:

By looking in advance you can choose your destination and go where you want to go rather than where the deals are. This means that you can think about your holiday in more detail, for example once you are at the destination what are the costs like, for example the three most expensive places to buy beer is, Dubai, Sydney and Puerto del Carmen.

Other things to consider:

• How expensive is it to get there?
• What are the prices like once you are there?
• How much is the accommodation.

Shop around

Whether going somewhere in the UK or abroad there are numerous comparison and cheap deal websites. Go on several of these websites, whether it is booking.com, Trivago, Airbnb etc. As you look at all these websites you will get a feel for how expensive hotels, cottages, etc. are. This means that you can get a benchmark of what is good value for money and what isn’t.

Budget

We have written a few blogs about the importance of budgeting and going on holiday is no different. Save up before hand and go on holiday knowing what you can afford to spend and don’t go over it. Prioritise what you want to do. For example, eating out is simpler but more expensive that cooking meals yourself but it could leave money to do other things like visiting a local attraction instead. If you really don’t think you can budget while you are abroad then it might be worth considering an all-inclusive holiday so that you know what you have spent before you go.

Plan your food:

We mentioned not eating out above. Here are a few more practical suggestions on how you can manage this.

If you are in the UK life is simpler you can plan your food and snacks beforehand. If there is going to be a long car drive, make sure your packed lunch and road-trip snacks are all easily accessible. Stopping off at a service station and buying food can very quickly start to add up.

If you are going abroad or have limited car space, then try to find a local supermarket and buy your holiday food in advance and on your first day. This is of course easier in self-catering but even if you are staying at a hotel, you can at least buy food for packed lunches and drinks or snacks for the room.

Choose free attractions

Whether in the UK or abroad there are free attractions that you and your family can go to. It can be as simple as going to a beach or visiting art galleries or museums. Depending on the country you are in nature reserves and country walks can also be extremely enjoyable. Going beyond this, if you are on a city break you can sign up for a free city tour there are often a wide range of providers. Please note that although it is called free it is expected that you will pay a tip and the end of the tour. However, this is a great way to cheaply view a city and to get to know more about it.

Collect vouchers for cheap days out

If you are staying in the UK use vouchers for a cheap day out. Using Tesco Clubcard points are one of the best ways to get trips to various attractions including Sealife centers, Lego land, theme parks and much more. However, Tesco are not the only people doing vouchers and we would advise to keep a close eye on the cheap days out page on money saving expert that regularly updates with new deals on how to get vouchers or codes for many of the UK’s top attractions.

Finding tips on how to reduce holiday costs are a hot topic and there is no shortage of websites to look through. We have only touched on a few ideas here. But the key thing is, if you are planning on going away think about what you are going to do and how you are going to do it.

The post Planning your summer holiday on a budget appeared first on The Debt Advice Service.

In fact, it’s likely to get a lot worse (more expensive…) before it gets any better.

So, what can you do?

Quite a lot actually…

…it’s about making savings in the right places, in the right way, and at the right time.

Start by having a critical look at your outgoings each week. It’s a good idea to separate these into ‘needs’ and ‘wants.’

For example, a mortgage payment or utility bill – these will obviously fall under your ‘need’ list, and unless you can make any changes by contacting your lender or supplier, it’s unlikely that you’ll be able to make too many cuts to your monthly outgoings down this route.

Saving money on your needs

Think about your food shopping habits  for a start. You obviously need to go food shopping, but can you swap your supermarket for a cheaper one? Can you buy in bulk and plan your meals ahead of time?

How about your travel? How do you get into town or to work? Maybe it is time we consider the convenience of the car. Would it be possible to bike to work? Can you get the bus into town? Can you car share? These options aren’t going to work for everyone but thinking about how you get to places could be a way of saving a few pounds each week.

There are real savings to be made here.

Saving money on your wants

The ‘wants’ are the things you want to spend your money on, the things you buy to treat yourself, or to treat your loved ones.

Of course, these could include things like shopping sprees, meals out, tv subscriptions and even holidays, but there are savings to be made in other places too. The devil is in the detail. We are going to take a closer look at shopping and tv subscriptions to highlight some ways you can sell money.

TV Subscriptions

Millions of us are literally throwing money away on subscription services we never use, or that don’t suit our situations and lifestyles.

How many of us pay for Sky TV, but never find the time to watch it? How many of us have Netflix plus Amazon Prime plus BT Sport plus NOW TV plus all kinds of YouTube subscriptions and other pay per view services?

A lot of us, that’s who.

It’s time to look at those subscriptions critically , to work out which ones are worth keeping and which ones are just burning our hard earned (and easily spent) pennies and pounds.

The shopping spree

For some people going shopping for a new wardrobe is their way to relax and some escapism and the important thing with saving money is that it needs to be a long-term habit, so cutting out your shopping spree is only going to last so long before you decide you need to go. So how can you make it more affordable?

Setting a budget

Set a budget before you go, if needs be take out cash and only spend the cash that you have. Let’s face it we all lose track with how much we are spending when we just tap the card, but with cash we can seeing it going down.

Create extra cash

Before you go on a shopping spree, look through your wardrobe are there items that you can sell? There are now a number of groups on Facebook as well as online shopping platforms where you can sell your clothes and make some cash before you then buy the new clothes. This money can then supplement your shopping or reduce the amount that you need to save to go and buy new clothes.

Family budgeting

All of this budgeting and differentiation between the ‘needs’ and the ‘wants’ doesn’t have to be a negative process, by the way. It doesn’t have to feel as though you’re depriving yourself of the things you really enjoy.

It’s important to keep some of the ‘wants’, if you can possibly afford to.

Creating a family budget is of course an important thing to do, but it’s much more important to stick to it, or it’s not worth the paper its written on. To encourage everyone to stick to it, why not include them in creating it?

Now, more than ever, it’s vital that children and young people are made aware of the costs that come with living, whatever that looks like for you and yours. Get creative. Get the pads, pens and crafty bits and bobs out.

Identify your ‘wants’ and separate them from your ‘needs.’ Make your family budget and then stick to it.

What if you are already in debt?

16% of the UK’s adult population is facing a debt problem. While find cost savings is important for some people who were already struggling with debt before the cost of living started to go up saving is only going to get them so far. If this is you and you are struggling with debt there are options out there for you. Call our debt specialists today on 0800 254 5112 if you need to speak to someone.

The post When the Going Gets Tough, the Tough Get Budgeting… appeared first on The Debt Advice Service.