Brits may be wondering if there are ways to manage their money and ease some of the pressure on their households. Express.co.uk spoke exclusively to Neil Kadagathur, co-founder and CEO of Creditspring, about how Britons can manage these rising costs.
He said: “The cost of living crisis is about to bite harder when energy bills soar and especially now with the rise in National Insurance.
“The latest interest rate hike by the Bank of England will not reduce the cost of living or ease the pressure on households struggling to make ends meet – nor will it provide relief for savers.
“In this context, trying to save money on a day-to-day basis is a challenge. But the good news is that there are tons of new apps and tools out there that can help people manage their money better.
“From budgeting tools that help people know where they’re spending their money, to rounding services that save a small amount each time a payment is made, these products make saving more manageable, even for those who thought they could not afford.
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“These types of tools can also give people new ways to borrow to meet unexpected expenses, helping them avoid high-interest, high-risk alternatives like payday lenders.”
Better money management can make all the difference, as people will be more aware of where their money is really going each month, potentially preventing them from taking on more debt.
Mr. Kadagathur shared his top tips for saving money.
He said: “One of the first ways people will try to save money is to reduce their day-to-day expenses.
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“Be savvy when shopping for weekly groceries – smaller local supermarkets tend to charge more than their larger counterparts – and think twice about what you buy.
“For example, branded drugs often mean you only pay for the nice packaging because they contain the same ingredients as supermarket branded products, and you can often save money on drinks by walking to the back of the store and choosing your drink at rather than the refrigerated section at the front where the prices are higher.
He encouraged Britons to use budgeting apps if they can.
There are a host of budgeting apps and tools available to help people take control of their finances.
He explained that money management apps like Cleo and Plum cam help people understand where their money is going so they can see if there are areas where they are overspending.
Additionally, he reminded Britons to only use “Buy Now Pay Later” if they can repay.
He said: “A third (32%) of people don’t know that BNPL is a form of borrowing, but it is. If you miss a payment, it can impact your credit score and even lead to debt collectors in the worst case.
“It may seem like a simple way to split the cost of an item, but it only works if you know you’ll be able to 100% afford all refunds.”
Brits are being warned to avoid high-cost lenders, especially when they need them.
He added: “It can be tempting to turn to the kinds of lenders you see advertised on TV who promise your money will be with you within minutes. But no ! These types of lenders often have exorbitant interest rates, which can lead to more problems and prevent you from accessing cheaper loans in the future.
Finally, people need to remember that there are people who can help.
Mr Kadagathur explained that sadly three in ten adults (29%) in the UK feel terrified about their financial future.
He said: ‘If you are in financial difficulty, remember that help and support is always available.
“Charities like StepChange offer free expert debt advice to help people get back on track with their finances. Just answer a few questions and they’ll be able to tell you which solution or service is best for your situation.