Cost of living in 2023

It’s fair to say we’re in a difficult economic time at the moment, with the ongoing cost-of-living crisis affecting many people across the country. And it’s no secret that some of the biggest culprits behind the UK’s upheaval are the increasing prices for gas, electricity and fuel.

Almost 90% of people have seen an increase in their cost of living over the last month alone, and those aged between 25-34 and those between 65-75 are some of those most affected.

At The Cambridge Building Society, we understand the increased financial pressures our members may be facing right now due to the rising cost of living. Financial worry is one of the biggest causes of stress, and can affect both mental and physical wellbeing.

As well as the government’s promise to help those who are most vulnerable with further one-off payments for 2023, there are a few things you can do in order to more confidently manage your money.

From mortgage advice and savings top-tips, to handy hints about shopping around and finding alternatives to payday loans, we’re here for our customers through some of the biggest financial changes in the UK this decade.

 

Money Help

During these challenging economic times, changing your spending and savings plans could help you to stretch your money even further.

If you’re struggling to make it to your next payday, think carefully and seek advice before taking out interest-heavy payday loans. Sometimes situations can feel impossible, and payday loans seem like a quick fix, but often people can find themselves struggling to make the hefty repayments that come with them.

There are a number of online resources which can help you to make informed decisions when it comes to borrowing money, and opting for something more manageable long-term such as an interest-free credit card, authorised overdraft, or Buy Now Pay Later (BNPL) services could help. Always make sure to seek advice before making a financial commitment, and check that the repayments are affordable and will still allow you to live comfortably.

When it comes to finding ways to pinch the pennies, we know it can be tempting to cancel or reduce insurance policies, but they can help protect your finances in the long-run. In particular, home insurance policies are there to protect your house and assets if anything were to go wrong. It’s the same for contents insurance and tech insurance packages. And it goes without saying – car insurance is a legal requirement in the UK, and should never be sacrificed to help save some cash.

And you don’t have to go it alone. We’ll be here with the support you need to make sure that your money is in the right place and working as hard for you as it can. There’s also a number of places to seek help and advice, such as Money Helper – a jargon-busting, impartial and free money advice service backed by the Government and available to all.

 

Mortgages

Over a quarter of people surveyed across all age groups said they’re finding it difficult to afford mortgage or rent payments, alongside the increased costs for other essentials.

Whether you’re a first time buyer, current homeowner looking to remortgage, or you just need some advice, we’ll be here to help.

You might have heard a lot of chatter in the news about the changes to the Bank of England base rate, and been left wondering how this affects you. Although the mortgage market is a confusing place to navigate at the moment, our mortgage advisers are always on hand to help. Get in touch with us by booking an appointment, or by using our live chat feature.

If your current mortgage is due to come to an end this year, we’ll be in touch three-months beforehand to guide you through your options and to help with any one-to-one advice. We’d strongly encourage anyone who is experiencing financial difficulty or worried that they may do, to get in touch as soon as possible and talk to our highly trained Financial Support team who’ll be able to offer tailored support.

 

Savings

It isn’t all doom and gloom. Savvy savers will have seen savings interest rates steadily rise over the last few months, meaning that there’s never been a more rewarding time to save. And although saving some pennies might seem difficult right now, there are things you can do to help boost your savings pot.

Many current account providers offer a free service to round up any of your purchases to the pound. Stash the cash in another pot and transfer over to your savings account each month. Alternatively, you could try the 52-week challenge, or vow to swap the weekly takeaway to a weekly fakeaway.

It’s also worth double checking if you’re getting the most out of your hard-earned money by utilising your Personal Savings Allowance (PSA). Your PSA allows you to earn up to £1,000 of tax-free interest on your savings each year - depending on your income-tax band.

By taking advantage of high-interest savings accounts, you can make your money work harder for you without even needing to lift a finger!

 

Shopping Around

There are a number of websites and apps designed to help people save money. Take a look at some of our suggestions below:

Airtime Rewards – Earn money to put towards your monthly phone bill. Link your debit and credit cards, then shop as normal at qualifying retailers and you’ll earn money off your mobile bill.

ZIPZERO – Get rewarded by simply sharing receipts from your daily shopping trips. Take advantage of both in-store and online Premium Offers to earn even more and lower your utility bills each month.

TopCashback – one of the UK’s biggest cashback sites, TopCashback lets you earn cashback by clicking relevant links before you purchase.

And finally, sites such as Price Runner are there to help you make informed shopping decisions by doing the legwork for you. Compare prices on 2.6 million products from 6,100 UK shops to ensure you’re always getting the best price

 

We’ll be here

Sometimes, things in life can be out of our control. This can make us more vulnerable or susceptible to risk. And although we aren’t experts in matters outside of financial services, we think it’s important to offer support for anyone who might need somewhere to turn to.

We offer a safe space, and a friendly face if you need one, and can direct you to specialist organisations who can help. So, if you find yourself feeling concerned or vulnerable in your physical, financial or emotional health, please get in touch.

If you have any concerns, are looking for some advice, or would just like a chat, we’ll be here – with a personal approach and practical support. Call our team on 0345 601 3344, pop in to your local store or visit Cambridge Cares to find out more.