Managing sudden changes to income and outgoings

Most high-street banks have lots of ways to contact them if you’re concerned about income loss. They have specialist teams to offer help and guidance. You can contact your bank online through their website. If you have a mobile banking app, you may be able to use this to speak to someone from the bank. Some banks may have an email address you can use to get in touch.

Your bank may also be able to tell you about charities and other services that can help.

Charities offer free advice to help you. Some can help you set up agreements with your creditors. They can help stop or reduce fees and charges and make affordable payments towards any debt you have.

Charities who can help in this way include:

• Turn2Us – Their website gives free financial support, including help with checking and claiming benefits
• Citizens Advice – In-person and online free advice on debts and managing your money
• StepChange Debt Charity – Free advice on your money and a range of debt solutions

These organisations give advice and support on how to manage your money.

They include:

• Moneyhelper – Offer advice and articles to help you deal with debt
• National Debtline – A free confidential service, available by phone or online

You can check whether you can claim benefits using one of the free calculators.

When interest rates rise with inflation, your monthly mortgage repayments may increase. For the rental market, if more people need to rent and there are fewer homes available, this can cause rents to rise.

Struggling to meet your mortgage or rent payments? Get in touch with your mortgage provider or landlord. Explain the situation and ask about options. For mortgages, these may include changing to an interest-only option or extending the mortgage term. For rent, there may be an option for an affordable payment plan or extra time to pay. 

The Money Saving Expert site has useful tips on help with mortgage payments.

Our energy bills can change because of factors outside our control. When demand for gas, oil and electricity rises globally, the price of these fuels goes up for everyone. Natural disasters can damage sites where fuel is produced. There are also times when we use more fuel – in winter, for instance, when we need to heat our homes more.

If you're finding it hard to keep on top of your bills, talk to your supplier. Ofgem has clear rules that mean the supplier has to help you. This could be an agreed repayment plan.

There may be extra benefits or other support that you can claim to help with these bills. Some energy companies have hardship funds. The government has a range of schemes to help. Your local council may also be able to help.

Top energy-saving tips:

• Turn down your thermostat by 1 degree – the Energy Saving Trust says this can save you around 10% of your energy bill
• Fill it up and turn it down – We're talking about your washing machine. Running fewer, full loads and using cooler programmes will both help
• Think about using a microwave or air fryer – These may work out cheaper than an oven, depending on what you're cooking
• Try a free water-saving shower head – These and other gadgets can save you money. Ask your water company what they can offer.

The price of food can change for many reasons. For instance, environmental changes can mean there are fewer vegetables, fruit and other crops available. So the price of these goes up. 

If you're facing an emergency and you need food urgently, your local council's welfare support scheme may be able to help. Some of these offer small cash loans or food vouchers to people are on a low income. Each council’s scheme is different and has its own rules. Find your nearest council. 

Food banks may also be able to help with food and other essentials. Find out where your nearest food bank is.

Top tips to cut food bills:

• Shop around to find cheaper prices
• Swap standard or premium brands to 'value' or own brands
• Shop at the end of the day – Look for the 'yellow label' items close to their best-before dates 
• Use your loyalty card – Many supermarkets reduce their prices for card holders
• Buy fruit and veg in season – Better still, grow your own. You can share and swap produce with your neighbours

This is one area where you may find yourself suddenly needing extra money.

Some examples are:

• Marriage or civil partnership – The cost of the wedding or event itself, plus the honeymoon
• Pregnancy and birth – Equipment and clothing costs, at a time when your income may be reduced
• Growing families – Childcare costs, school uniforms, plus more spending on food, home and clothes
• Loss of a partner – Funeral costs, plus taking on the full cost of regular outgoings
• Ill health of a partner or family member – Care costs, living aids / adaptations, hospital trips
• Divorce or separation – Legal fees, division of property and assets

It's good to plan for family events, and saving money should be part of that plan. Some events can happen unexpectedly, though. That's why having an emergency fund is important. When you set out your budget, think about how much you can put aside for these life events and other unexpected costs.

We'll talk about budgets and emergency funds in the next chapter.

Many phone providers put up their prices once a year, in line with inflation. So you may hear from them while you're part-way through your contract, to let you know there's an increase coming. If you're still within your contract period, you'll need to pay this increase – or pay a fee to leave the contract early. Contracts usually run for 12, 18 or 24 months, and you can contact your provider to check whether you're still in contract. Once a contract has ended, you can change to a different one with that provider, or go elsewhere.

Not sure whether your phone bill will rise this year? Check the terms of your contract. These should state clearly whether they can raise your monthly payment while you're in contract. Not all phone companies increase your payments – some guarantee no price rises. So it's good to shop around when your contract ends.

Broadband packages often tempt you with cheap prices to start. But you may find you're suddenly paying a lot more, after that initial contract period. Do check how long you get the lower prices for, and what the costs will be after this time. You may be able to get a cheaper deal either with your current provider or another one.

Top tips to manage phone and broadband costs:

• See if you can get a social tariff – These low-cost phone and broadband packages are for people on certain benefits. The Ofcom site can tell you more
• Out of contract? Shop around – Use an Ofcom-approved comparison site to find the right deal for you
• Don't be scared to switch – It's easier than you think. You can keep your phone number and for broadband, 'One Touch Switch' is designed to be quick and easy

Sudden changes to the cost of getting around can have a huge impact on your day-to-day life. This could include getting the kids to school, making hospital appointments or your everyday commute.

How do you get around? You may need to think about:

• An increase in your bus fares or train season ticket price
• Petrol prices going up
• Your car insurance premiums rising
• What happens when your car breaks down or needs urgent repairs

Depending on your situation, you may be able to get help with some of these costs. In England, you may be able to claim free bus travel if you're disabled or have reached state pension age. In some areas, these cards give you free train travel, too. Looking for cheaper rail travel? The National Rail site is a good place to start.

Top tips to manage your travel costs:

• Think about how you travel – If you drive or use the bus, could you walk or cycle instead?
• Shop around each year for car insurance – You could get a better deal. Use comparison sites and always check what's included for the price, to make sure the policy is right for you
• Check fuel prices locally – These can vary, so it's worth looking at sites like Petrolmap and Confused.com to find the cheapest way to fill up in your area
• Drive to reduce your fuel usage – Whether your car is petrol, diesel or electric, the Energy Saving Trust has top tips on driving to save fuel and money
• Can you travel at a different time? – Many public transport services cost less if you travel 'off-peak', outside the main rush hours. Some taxi services also charge less at times where there's lower demand

Insurance is something we pay to cover unexpected costs. For instance, your pet insurance can help with vet fees when your dog is injured. If you're in a car accident, your insurance can pay for repairs. Some will even arrange for a car you can use while yours is being fixed, too. Travel insurance can help if you fall ill on holiday. So in itself, it's something that can help us manage our outgoings.

But you may find your insurance costs suddenly rise, when you renew your policy each year. This can happen for a number of reasons. For example, when there are storms in the UK causing lots of damage, many people will claim on their home insurance. So you may find that your premiums go up next time because there have been so many claims. Travel and health insurance premiums may also rise as you get older. 

Like other regular outgoings, it's good to shop around for the best insurance deal. Comparison sites like Compare the Market, Money Supermarket and Confused.com can help here. When you compare deals, look carefully at what you get for the price. It's tempting to go for the cheapest option, but this may end up being more expensive if you need to pay extra when you claim, or for certain features that you need. 

Don't be tempted to just stop paying - always contact your insurer if you can't keep up the payments. It's illegal to drive without car insurance, and being without other types of insurance can become much more expensive if something happens.

When you think of leisure costs, what do these mean to you? Trips to the cinema, meals out, day trips or holidays? We usually plan for these, and make sure we have enough money for them beforehand. For holidays, we may take out travel insurance to cover us, in case something happens either before or during the trip. 

Some of our leisure costs are more everyday. Like gym or movie streaming subscriptions. So what can you do if you're struggling with these monthly payments?

You can:

• See if you can freeze/pause or transfer your gym subscription – If this is available, it should be in your contract. Ask your gym if you're not sure
• Look at your gym's cancellation terms – These do vary. Again, it's worth just asking your gym and explaining your circumstances – it could be easier to cancel than you think
• Check if you can share your TV and movie streaming costs – Some streaming services let you share with others. Do check the rules to see what yours allow, especially around multiple households
• Choose to watch 'with ads' – Check to see if your streaming service has a cheaper 'with ads' option
• Review your viewing – Do you watch all the channels in your TV package? How many different streaming subscriptions do you need? Ditch the subscriptions you don't need and consider Freeview as a free alternative to paid TV options

If you have debts that you're paying off, it's important to keep paying on time. Sometimes though, this becomes harder. Debt emergency is what happens when you've stopped paying for a while. What follows may include court action, disconnection or eviction.

If you're struggling to make these payments, contact the organisations you owe money to. Let them know your situation and they’ll be able to explain the options open to you. It's always better to speak up early and tell them what has happened. Unless you speak to them, they won’t know until they see something wrong with your payments.

Don’t leave it too late to get help.

You may need to seek help if:

• You're relying on credit to cover your living costs
• You don't open bills when they arrive
• Your money worries are keeping you awake at night
• You're hiding your debts or purchases from your partner
• Money worries are causing arguments in your household

There are also things you can do yourself.

You can:

• Write a list of your debts – Include who you owe, how much you owe and what the monthly payment is
• Prioritise them – Priority debts are those where the consequences are worse. For example, the loss of your home or your gas being cut off
• Plan your approach – You may decide to start by paying off the lowest amount, or the one with the highest interest. Don't forget to keep up the minimum repayments on the others