Following our recent article The cost of financial uncertainty on relationships and the building evidence that the impact of the cost-of-living crisis goes well beyond finances alone, Geraint Davies (Independent Financial Adviser) from The Money Partnership share their perspective along with some guidance to help couples manage their finances during unsettling times.
An event-led recession
The combined affect of rising inflation, soaring energy bills, increased petrol prices, and food inflation are squeezing household budgets and taking their toll on UK families and households.
A recession may be on the way, but unlike others we have experienced which were led by financial institutions i.e. banks, this will be an event-driven recession. As you can imagine, COVID 19, Brexit, and the Russia-Ukraine war all play a part in this.
Though it all feels a bit doom and gloom – with recent mortgage interest rates adding to the pressures faced by UK households – banks are still able to lend money. For couples whose money worries and issues are putting a strain on their relationship, it may be worth considering refinancing to ease current financial pressures and help them to survive this period of heightened living costs.
A chat costs nothing
Otherwise, having conversations with mortgage lenders or credit card companies can be beneficial. They might be able to come to some sort of arrangement to help people avoid missing payments. If you’re open and honest with lenders and providers, they may offer support in the form of payment holidays or even reduced fees.
Unfortunately, many people when faced with financial challenges bury their head in the sand. If couples can’t agree on a solution, problems get left to spiral out of control. This is why seeking impartial financial advice is really important. Receiving guidance on how to budget, ways to save, and how to get out of debt will massively help people improve their financial position and security.
What you can do
It’s all about being proactive and keeping an eye on the figures. Partners may not have the same money beliefs or priorities but doing something is better than doing nothing. Try reminding one another that you’re on the same team battling against your financial issues rather than battling against one another.
We understand times are hard and we can’t predict what’s around the corner, but if you can take back control of your finances by seeking professional help, you’ll feel a lot more confident about your financial future.
Get in touch
The Money Partnership are an Independent Financial Adviser with 20+ years of experience in helping people achieve financial clarity. By translating complex circumstances and arrangements into something clients can understand they help them relay their financial foundations ensuring they can manage their finances independently and improving their financial security post-divorce.
Visit The Money Partnership for a range of financial resources, or contact them today for a no obligation conversation.
Please note, the above content offers information on what’s going on in the financial industry, general guidance on managing your personal finances and/or the risks and benefits of a given financial product or service. This is not financial advice. For financial advice we recommend you speak with a qualified financial adviser about your individual circumstances.
