How To Manage Debt and Save For Big Goals.
As we approach the end of 2024, it is the perfect time to take a closer look at your financial wellbeing and make plans for success in the coming year. Whether you are looking to tackle debt or save for a special event, proactive financial planning can make all the difference.
We’ve put together some tips on how you can take charge of your finances in 2025:
Why Year-End Planning Matters
The end of the year is when we all reflect on different matters and finances is one that is not to be ignored. It’s an opportunity to assess your spending habits, review debts and set goals for the months ahead. By starting 2025 with a clear plan, you will reduce your financial stress and increase your chances of achieving both short-term and long-term objectives, like buying a new home, completing renovations or growing your savings.
Debt Consolidation
Managing debts can feel overwhelming and often lead to stress. Consolidating debt into one manageable monthly payment can free up your budget and reduce financial stress.
For instance, we recently helped a couple consolidate their £24,000 mortgage and various other debts. After carefully assessing the client’s circumstances, we secured a mainstream mortgage with Halifax that combined their existing mortgage and unsecured debts. This solution extended the term to eight years, creating affordable monthly payments of £660. We made the clients aware that in doing this, the benefit would be that their monthly outgoings would be reduced but that restructuring the debt over a longer term, may mean the overall cost is higher due to additional interest. They were happy to accept this though as their priority was to reduce outgoings now.
The new mortgage arrangement resulted in a saving of £1,138 per month, significantly improving their immediate financial wellbeing.
Saving For Your 2025 Goals
Whether 2025 involves saving for a dream home, a renovation or even a new business venture, the key is consistency and planning. Here are our tips to help you achieve your goals:
- Write down exactly what you are saving for and the amount you need.
- Set up a standing order to move a fixed amount into a savings account each month.
- Audit your spending and eliminate non-essentials to boost your savings pot.
- Utilise ISAs or other tax-efficient saving schemes to make your money go further.
- Seek advice from a financial adviser to help you create a tailored plan that aligns with your goals.
Whether you need help consolidating debt, saving for a goal or reviewing your mortgage options, we are here to help. Get in touch for bespoke financial advice that fits your circumstances.
Please note: Think carefully before securing other debts onto your mortgage. Your home maybe repossessed if you do not keep up repayment on your mortgage.