It’s officially the first day autumn! The leaves will begin to fall, sweaters are starting to come out and pumpkin spice has made its seasonal appearance. It’s time for a change in the air as we bid farewell to summer, without hesitation or regret; but many Britons find themselves feeling financially drained after the warm holiday season.
Summer and WINTER SPENDING TRENDS
A survey published by LendEDU reveals that summer is not the most expensive season, missing first place by a mere £62. During this time of year many people go on holiday and have (or attend) weddings so spending can be pretty high – on average at £1630.
According to a different LendEDU survey, winter is the most overspending season. Participants spent an average of £1,691 during this time and respondents increased their credit card balance by nearly £731 – for ten months more to pay off!
With autumn falling between two of the most expensive seasons of the year, it becomes one of the most important seasons to plan and take care of your finances. Having a plan can help you pay off any summer debt, set a budget for the last quarter of the year or even save money for all the Christmas or end of year expenses. Here are a few tips to help you better manage your finances this season.
1. How to get out of credit card debt
The first thing to do if you want some extra cash before winter is to invest in paying down your existing balance. It’s especially true for those who plan on using their credit cards at Christmas time!
Paying off your card is the best way to avoid growing interest charges, but if that doesn’t work for you there are other options:
- Paying more than what is required
Making a few extra payments can help you get out of debt faster. Your minimum balance may be enough for now, but it won’t necessarily keep your loans afloat in the long term when interest rates go up and more money is owed than before. Make larger monthly payments so that even small changes push them ahead quickly instead of making just one or two everyday transactions as much as possible. If you find yourself with a tight budget, consider making your regular monthly payment and then make extra payments as more disposable income becomes available.
- Explore other options such as a personal loan
Personal loans are an excellent way to reduce the cost of your debt or refinancing. You can use one as an option because it helps you consolidate payments with other debt like credit cards, car note and student loans into one low rate loan that will be easier to manage or for everyone involved!
Personal loans offer great benefits in comparison with traditional bank financing; from helping combat high interest rates when using these for personal purposes to shaving off some points during repayment. Personal loans are a great way to pay off credit cards, and with the market for personal finance becoming increasingly competitive you should consider this option before your late fees add up. However, it’s important to know the difference between refinancing and personal loans before you use one. When considering a personal loan, it is best if your interest rate on credit cards are lower than what they offer instead of having an extra expense with no benefits.
- Consider using a zero-interest balance transfer card
Zero-interest balance transfer cards are the perfect way to get out of debt and save money. They allow you to transfer your existing credit card payments, up until their approved capacity limit (which may be less than what’s owed on all other accounts combined), onto one with no annual fee or interest rate. This will help reduce costs in the long run because there won’t be any new charges added from old balances being carried over while still accruing interest just like before!
2. Staying on top of your finances by planning your budget.
One of the basic but important tips to great financial planning is creating a budget and sticking to it. Keeping your spending in check over time, will help you be less nervous about the holidays, plus having an itinerary for December can really take some stress off.
You should include everyday living expenses, such as your housing and transportation in addition to groceries. You’ll also want a budget set aside for holiday presents or trips you take during this time of year.
For many of us, the idea of budgeting can be daunting. Thankfully there are several easy-to-use apps that make it much easier on you. It’s amazing how easy it is to manage your finances these days with the right budgeting apps. You can even sync them across various devices and accounts, making sure that you always track the movement of your finances.
Not sure which app is right for you? There are many options available with features to suit any need. Yolt offers easy mobile budgeting, bill payment and balance alerts as well as syncing capabilities that work seamlessly across most financial institutions in the UK.
If you find yourself spending too much money, the Money Dashboard might be able to help. It will let users know how much they have left after all their bills and other budgetary concerns are factored in so that it’s easier for people who struggle with overspending not only see where things stand financially, but also take appropriate steps towards managing their finances more responsibly in order save up some cash.
If you want to budget with your partner or family member, consider Emma. It’s the perfect app for couples who need an open and honest solution that can be accessible to multiple parties at any time.
WHY Financial Planning during this season is important
In conclusion, autumn is the perfect time to take stock of what you’ve accomplished this summer, make a plan for how you will spend less in winter and get ready for the coming months ahead. Autumn gives us just enough chance so we can catch up on our finances without being bogged down by taxes or holiday shopping before new year’s eve rolls around again!
Need help with your finances before the end of the year?
We all have different financial objectives and expenditures. Depending on you individual circumstances, you may need to consider individual options to save and manage your budget. Our team of financial advisers can help you create a bespoke financial plan with the right solutions that meet your needs and secure your future. For more information, please contact Headway Wealth on +44 (0) 2033 935 920 or email email@example.com. We’d love to hear from you.