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Nearly everyone is worse off because of the global recession with families asked to pay more in health levies and those still employed having to pay increased income levies from May following the crisis budget, households are going to continue to struggle financially for the near future.
Mortgage interest relief for those with a mortgage for more than seven years has gone, as has the early child supplement, hitting young families hardest of all.
It is no surprise therefore, that there has been a surge in the number of people seeking financial advice, as job losses, pay cuts and pay freezes continue to increase and people look for help to pay their bills.
If you find yourself in this position, a few courses of action you may wish to consider include:
Make quick savings
There is plenty of information on great money saving tips to reduce utility bills, phone charges and financial products. Also, by setting aside a day to go through statements that cover household bills, in particular home insurance, life insurance and motor insurance, research into whether you could be paying too much for unnecessary perks. Saving small amounts on these bills each month will make a big difference over the course of a year.
Use savings to reduce your debts
If you are lucky enough or prudent enough to have savings, use these to pay off credit card debts. There is one simple reason for doing this and it all boils down to interest rates. For example, if you have €2000 in savings and you are earning 3 per cent interest in a savings account, you will earn €60 in interest over a year, before tax. However, if you owe €2000 on a credit card and the interest level is 18 per cent, you will have added €360 to your debt in a year.
Earn extra money by housing a student
By offering to accommodate students who travel to Ireland to learn English you could earn an extra €150 to €190 per student per week. It is a great way of generating an additional income to help pay the bills. You will have to decide though whether you wish to be a host family, providing full board and laundry or just offer out a room and provide no meals.
These are just a few ways to help during the current recession. Help is always on hand so do not suffer alone.
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