MONEY saving expert Martin Lewis is one of the most in-demand people in the country right now.
Bills are set to soar again next month for millions of households as the cost-of-living crisis continues to inflict pain on our finances.
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Tara Evans spoke to Martin while he was appearing at the Ideal Home Show to ask the biggest money questions facing the nation.
Q) WE’RE headed towards a barrage of bill increases in April, so what should every household do?
A) There is a way to save money on anything that you spend money on.
There are always things you can do. Take time to make sure that with every bill you pay you’re doing it in the cheapest way, whether it’s broadband, energy or council tax.
Q) WHAT about the millions of people facing broadband, TV and mobile bill hikes next month?
A) If you are paying more than £10 a month and are out of your contract, the question is why?
If you want to stay where you are, do a comparison and find the cheapest package.
If you’re out of contract, take it to them and say, politely and nicely: unless you give me a better deal then I’m going to have to leave. I don’t want to leave, but I’d like you to match the price.
If they won’t match the price, then you’ll go through to “customer retentions” as that is where they have the power and authority to retain your custom.
Once you’re there, you simply say the same thing again.
Q) GROCERY and supermarket bills are at an all-time high – will we ever see prices come down in shops?
A) Inflation dropping does not mean prices dropping. It means prices won’t go up as quickly as they have been.
It’s a bit like the difference between a car’s overall speed and its acceleration. If you slow the acceleration down, the car is still getting faster.
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I don’t think prices are ever going to go back to where they were. If they did, that would cause a problem for the economy as we would get something called deflation.
The most important thing is that we get inflation down and then, over time, people’s incomes will hopefully catch up.
But there are still going to be a tough couple of years ahead for many people.
Q) WHAT is going on with our energy bills?
A) I’m pleased that the Chancellor listened to what I said in the letter I wrote him four weeks ago, asking him not to put up bills by 20 per cent in April.
I was delighted that he wrote back to me on the morning of the Budget to say he had accepted the arguments and they were not going to increase prices.
One of my arguments was that the end of the £400 Winter Energy Bills Support Scheme this month means households will no longer get the £67 a month subsidy off bills.
That means people need to budget for that increase.
Of course, energy bills are still hideous. People are paying double what they paid in the past.
It’s almost certain that energy bills will drop in July, because the price cap will drop substantially because wholesale energy rates that energy firms pay have fallen.
Bills will now stay flat in April, but you’ll pay the extra £67 a month more, and then from July we should see bills drop by 20 per cent from where they are.
That means the clouds are parting and we can see the sun through them, and maybe the rain is a little bit lighter than it was.
Q) WHAT can people do to look after their mental health with so many of us in financial turmoil at the moment?
A) There are no shortcuts when it comes to a healthy mind and finances.
We know there is a marriage made in hell between money problems and mental health issues. If you are stressed, then action is the best resolution rather than trying to ignore what is going on.
Go through your bills one by one to see if you can improve your financial situation.
Q) WHAT should you do if you’re in serious debt?
A) For anyone who is in debt right now, you don’t have to manage it alone.
There are great free debt agencies like Citizens Advice and Stepchange that will be able to give you support and help you work through it.
If you are struggling emotionally, try Christians Against Poverty as they give more hours per person than other charities and provide emotional support at the same time.
Talk to a professional about it. I’ve been doing this job for a very long time and the situation with people’s finances has never been tougher than it is right now.
There is always light at the end of the tunnel. It may not be an easy journey, or the light might be a little bit far, but the best thing to do is start to move towards that light by getting help and doing something about it.
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BOOST YOUR FINANCES IN 10 EASY STEPS
By Tara Evans
1. SIT down and work out your income and outgoings. I try to do this at the same time each month and put a reminder in my diary.
2. Take a look at all your outgoings, especially bills and subscriptions – is there a way to cut them down? Can you cancel any?
3 Don’t forget to check at your food shopping. Could you switch to a cheaper supermarket or to own-brand items? Maybe you could have a week where you use up your cupboard and freezer stash. Website trolley.co.uk is good for comparing prices.
4. Debts can make up a big chunk of your monthly expenses, so you need to make them cheaper. For example, if you have a credit card, can you switch to a zero per cent balance transfer deal. Use the eligibility checker at moneysavingexpert.com.
5. If you can’t afford to pay off your debt or feel stuck, get free advice from Citizens Advice, Stepchange or National Debtline.
6. Check you are not missing out on free cash or grants by using website Turn2Us to find missing benefits or support,
7. Make a note when bills and contracts are up for renewal. You can apply for a new mortgage three months before your current deal ends.
8. Think about how to boost your income. Could you take on another job, or could you sell some items in your home that you no longer use? I use websites like eBay and Vinted. Maybe you could do a car boot sale.
9. If you can, make a plan about how to save money. You could set yourself a savings challenge. I know this can be tricky when living month to month, but every penny counts.
10. Be realistic. Overall, only make a plan that is achievable and you can stick to. Otherwise you’ll end up deflated and you won’t make any progress.
