Being self-employed is tough right now.  There is the promise of financial assistance but not until June.  In the meantime, many of us are seeing our council tax, mortgage and other regular bills leaving our bank accounts as normal.  But life is far from normal right now.  It seems a long time to wait for help.  Financial uncertainty is the last thing we need in an already stressful time in our lives.

It is great that the government will be backdating the payment but many of us face a few lean months until then.  What can you do in the meantime to protect your financial wellbeing?

Contact Your Bank

See what assistance your bank can provide.  Some banks are being more helpful than others.  My bank has frozen interest on my current account.  I didn’t even have to contact them they just put it in place automatically!  It was a relief if I am honest as I am currently living in my overdraft limit and don’t see that changing any time soon.  June can’t come around quick enough!

Use Your Savings

If you are fortunate enough to have savings to fall back on but they are tied up till a certain date, check with your bank as some are letting you access them without penalty right now.  Sadly, given that we tend to live wage packet to wage packet, we never built up a nest egg to fall back on.  I think when this is all over, I will be changing my financial outlook.  Going forward I will be squirreling more away for rainy days and emergencies rather than splashing out on unnecessary purchases.  Also remember that the income tax payment date has also been deferred so if you had money saved ready to pay that, you could temporarily dip into it to get you through the next few months of financial uncertainty.

Take Out A Loan

As a short-term measure, it might be worth taking out a loan to last until June.  There is a point where I might reach my overdraft limit and come unstuck otherwise.  LearnBonds have a section of their site dedicated to the best payday loans that I had a look at last night.  It’s always worth balancing the pros and cons before making your decision.

Take Advantage of A Mortgage Holiday

Given the challenging circumstances we face you could take advantage of the three-month mortgage holiday.  I was trying to avoid doing this as you still have interest added to you mortgage.  But next month I might need to contact my mortgage provider and put this in place.  If you are struggling put that in place now rather than worry unduly.  Credit agencies have been told that this type of payment holiday should not impact your credit history.  Although this type of help is apparently being considered case by case, so it’s not guaranteed.

Make Cutbacks

I am very lucky my husband is still employed, although it does mean he continues to leave the house each day putting himself at risk.  It’s a double-edged sword really but we are grateful we have his income.  We still have had to make cutbacks, the boys used to have a math’s tutor who did offer to continue lessons remotely, but we just don’t have the money right now.  Go through your bank account with a fine-tooth comb and see what you can cutback on.  If you have gym membership see if you can freeze it if you can’t cancel it.  Also, if you have a travel card check if they will give you a partial refund.

Don’t Impulse Buy

Finally hang in there everyone!  Week three ticked off!  You can all do this.  Try not to panic about money it’s a temporary blip that hopefully will be resolved soon.  But whatever happens don’t use your extra time in the house to do more online shopping.  I am using all my willpower to resist buying the kids an expensive new trampoline!  Only shopping for essentials (food and household items and toiletries you REALLY need) will help you through this period of financial uncertainty!  If you get tempted to impulse buy, go through your belongings and see what you can sell when this is all over instead.