How can I reduce my outgoings?

Angela Ellis

With a rise in redundancies and possible changes in income and circumstances, we wanted to share some ideas on reducing your outgoings as well as some support options you may qualify for that you hadn’t considered or weren’t aware of.

Council Tax Reduction

You might qualify for a council tax reduction if your income has dropped or if you started claiming benefits recently. Contact your local council to see if you qualify for a council tax reduction. 

Credit Card Freeze

Alongside the help for credit and store cards, bank customers have already been allowed to apply for an interest-free overdraft of up to £500. The FCA confirmed that these would also be extended for three months. Anyone wanting to take advantage for the first time can apply by the end of October. Read more

Car Insurance Reduction

You'll be able to ask for help from 18 May to 8 August 2020. Insurers could offer help by reassessing your level of risk e.g you'll be driving less due to lockdown, reviewing your level of cover and waiving cancellation fees, or any fees associated with amending a policy. These temporary measures may help to reduce monthly payments. Or if you’ve paid upfront, you could get a refund. 

Universal Credit

Universal Credit is a payment to help with your living costs. It’s paid monthly. You may be able to get it if you’re on a low income, out of work or you cannot work. Read more about it here

Self Employed Income Support Scheme Grant

The scheme has been extended. If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020. You can make a claim for the second and final grant if you’re eligible, even if you did not make a claim for the first grant. Learn more about this grant

Coronavirus Bounce Back Loan

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. Click here for more information