Building strong financial foundations

If your debts become unmanageable, we advise you to use Christians Against Poverty or Stepchange. They can help you create a budget and offer practical solutions based on your situation.

Important: Some bills, such as council tax and energy bills, are priority debts and can have potentially severe consequences if not paid.

Look into using tools like Piggy Banking, whilst places like IPSE can offer advice and guidance around financial wellbeing for the self-employed.

For freelancers, learning how to pay yourself a salary can also be helpful. Finally, The Money Course can teach you the skills to understand and manage your money.

Creating a budget can help to identify where you can cut costs. Start by using advice about your household bills, to see where you might be able to get a better deal on your utilities. 

Additionally, freelancers may benefit from Cashflow Planning which can help manage a fluctuating income. It’s also useful to know that if you claim certain benefits you may be entitled to additional support, including social tariffs on broadband and mobile costs, and even your rent.

You can check your benefit entitlement using our Benefits Checker. And for more information on how to tackle household bills, including grants and schemes to help with energy costs, visit Citizens Advice.

If you are concerned about money, its best to avoid all borrowing where possible, as credit card debt and short-term borrowings can quickly spiral out of control if not managed properly.

Ensure you only borrow what you can afford and ideally pay off the balance in full every month. If your credit card debt is becoming unmanageable please contact your lenders, talk to your bank, and seek debt advice or consider consolidating the credit card debt into one loan with a lower interest rate.

However, if used correctly credit cards can provide valuable free protection, a chance to (re)build your credit rating and along with special 0% deals it can be the cheapest way to borrow. For more information on how credit cards work, click here.

With mortgage interest rates fluctuating, you should analyse your budget carefully and use a mortgage calculator to work out whether owning a home is affordable and right for you.

If you’re intending to buy a property, start planning for a mortgage as early as possible, including saving for a deposit, taking advantage of a Lifetime ISA, or work to improve your credit score. You should also be aware of the different types of mortgages available, such as fixed rate or variable rate mortgages, and the pros and cons of each.

Additionally, consider working with a mortgage broker who can help you find the best mortgage deal for your circumstances, particularly as some mortgage lenders are better suited towards the self-employed. If you are looking to re-mortgage, be clear about the pros and cons depending on your circumstances

It’s important to have a contingency fund in case of unexpected expenses such as car repairs, medical bills or for those dry periods of work. 

This can provide a financial cushion in case of unexpected costs and can help you avoid taking on more debt – but saving even a small amount can help. Using a budget effectively can help you towards this goal.

Have you considered working with a professional? This may include working with a financial advisor to create a financial plan, working with a tax professional to ensure you’re paying the correct taxes, or even using accountancy software.

If you’re struggling with the cost of living crisis, take a look at some of the simple steps outlined in our information around the cost-of-living crisis. You may also want to apply for charitable grants to assist with household bills and debt. Further support:

• Lightning Reach: their portal allows you to find and apply for support from multiple providers
• National Energy Action: energy advice and support service