January is usually a tough month after Christmas, many people are paid before the holiday which makes this a long period before the next pay day, and with this year being in the midst of the cost of living crisis it’s going to be even tougher for some. Although things are looking slightly more positive, with the Bank of England base rate remaining unchanged since August 2023, it is still at a 15 year high and it is hard to believe that in February 2022, nearly 2 years ago it was only 0.5%, nearly 5% lower than it is today.
The cost of living also seems to be coming under control too, the annual rate of inflation reached 11.1% in October 2022, a 41 year high before easing. Recent data shows it was 4.6% in October 2023, down from 6.7% in September 2023*1.
However, I have to say that countless times I have been shocked at the increase in some items, including my recent household and buildings insurance renewal which appear to have nearly doubled. Talking amongst friends this seems like a general trend.
So what would my advice be? Firstly, try to avoid using credit cards if you can. It is so easy to get caught up in a credit card trap and quickly build up debts which can easily spiral out of control. Also, consider seeking professional advice and don’t try to hide from your situation. There have been measures put into place to try to help individuals currently.
We offer a free without obligation consultation so if you would like advice on how to manage your finances why not pick up the phone today and give us a call.
*1House of Commons Library website, Dec 2023