The Government’s furlough scheme finishes at the end of October and many people who took payment holidays from their bank, credit card and / or mortgage company during lockdown, are now set to see their expenditure increase. The economic situation for the remainder of 2020 looks bleak with job losses inevitable, however there are always solutions to help households.
We are here to help anyone who is facing problems with furlough or payment holidays coming to an end and you can speak to a qualified debt adviser on 0800 085 0226 or you can take our online debt test.
Cutting The Cost Of Your Credit Cards
You may have a credit card which has a high interest rate. You have the potential to cut this by moving the debt to a 0% interest-free period on a credit card. This can help to save you money, so that the payments you make each month are paying off the capital (amount your borrowed) instead of the interest. While balance transferring your credit card debt can help “buy you time” to repay the debt, it’s imperative that you’re able to reduce the balance and eventually become debt free again. If you don’t think you’ll be able to clear the debt with a balance transfer credit card then you can always receive free debt advice from Debt Support Trust.
Move From Expensive Overdrafts
This year banks have changed how they charge for overdrafts – they are no longer able to charge different interest rates for authorised, unauthorised, overdrafts or daily fees. This has resulted in interest rates increasing significantly. Another option is to clear your overdraft with a 0% credit card, however this will only save you money if you can pay the full balance of the credit card in the allocated time. If you decide on this option it is important you don’t go back into overdraft. If you’re not sure what you’re best option is then speak to a money adviser at Debt Support Trust and we will be able to help.
How To Deal With Your Mortgage
Mortgage payment holidays remain open until 31st October 2020, so you still have time if you need to apply. If you have had a mortgage payment holiday or are furloughed, it may be more difficult to remortgage and may be worthwhile talking to a mortgage broker. For many people a mortgage is the largest monthly expense, so it is worthwhile looking into remortgaging to see if it’s possible. If you’re in a fixed rate mortgage you may have early repayment penalties to consider too. It could be financially beneficial to assess whether another mortgage lender could offer you a better interest rate.