Money: Help yourself tackle some frightening financial issues

HALLOWEEN is here – and if your finances are giving you nightmares, now might be the time to get to grips with any money horrors lurking around the corner.

In many cases, there may be simple steps to spirit some problems away.

Here are five money horrors and how to address them…

1. Failing to get your tax return in on time

For people who need to fill in self-assessment tax returns, the deadline for paper returns in is midnight on October 31, 2018. Many people nowadays fill in their tax return online, and the deadline for this is midnight on January 31, 2019. You’ll usually pay a penalty if you’re late. Some people end up filling their tax returns over Christmas and New Year – so if you don’t want this to get in the way of the festivities, plan ahead.

2. Sitting on your mortgage lender’s standard variable rate (SVR)

Homeowners whose initial mortgage deal comes to an end may find themselves sitting on their lender’s SVR – when they could be better switching. The average two-year fixed mortgage rate on the market fell to 2.49% in October, from 2.53% in September, according to Moneyfacts.co.uk

3. Paying too much for car insurance

Comparethemarket.com has found 62% of drivers don’t switch provider – meaning they could be missing out on a cheaper deal. It says the average saving for switching stands at £113.09. Simon McCulloch, of comparethemarket.com, says: “If shopping around became the norm for the majority of drivers, the increased competition would help drive prices down.”

4. Doing nothing as your savings suffer

Tom Adams, head of research at savingschampion.co.uk says it’s worth seeking out the best returns available for your rainy day pot of cash savings.

“If you don’t take any action, providers will not necessarily be tripping over themselves to improve your return. Even with the base rate going up in August 2018, many providers did not increase all of their savings interest rates and of those that were increased, not all have been raised by the full 0.25%,” he says.

“Don’t dismiss a provider because you haven’t come across it before, make sure that funds deposited with them are covered by the Financial Services Compensation Scheme and, if you have any doubts, sticking to the £85,000 limit per person, per banking licence should cover you should the worst happen.

“The worst thing you can do is accept poor-paying accounts.”

5. Paying the loyalty penalty with your energy bills

A string of energy providers have recently announced bill hikes – so if you’re worried about the chill on your wallet this winter it’s worth having a look around.

Apart from switching provider, you could check if you are eligible for any rebates or discounts, which may be available if you’re a pensioner or on a low income, for example.

Also make sure you’re not wasting energy. Making sure appliances aren’t left on standby and only boiling the amount of water you need in the kettle could help.