![](\"https://multiply.ghost.io/content/images/2020/03/image-4.png\")
There are times when nothing can change the fact that you can't make your debt payments. It can feel as though no matter what you do, your debt isn't budging and there's no let up in sight.
So what can you do when an affordable payment plan is no longer an option? In this article we asked Multiply's Head of Advice, Peter, to give us a run down of the final things you can do when dealing with debt.
\"As you read through the options below, they seem a little daunting to say the least. The thing is debt can have serious implications for your health if you don't get it sorted. What is important is you and your family. Worrying about your credit rating and your ability to borrow in the future is small fry.\"
Your health must be your priority throughout the process of dealing with your debt. Financial stress can impact your mental and physical health.
The NHS have some guidance on how to cope with money worries, but they are not the only resource out there. All the debt charities listed below give some great advice on this important topic too.
The reality is that going down one of these routes actually takes a big weight off your shoulders. It can be a real positive. If you find yourself in this situation please seek out all the help you need. People who've been there say they feel a massive sense of relief after seeking help.
If you are in Scotland, you may see this referred to as a Debt Payment Programme (DPP).
This is an informal agreement between you and your creditors for paying back your non-priority debts. In Debt Series #3 we spoke about the two main debt types: credit cards, loans and store cards.
Most DMPs are managed by a DMP provider who deals with your creditors for you. This means you don't speak to them as soon as they take over.
\"Firstly you need to find a DMP provider. There are lots of companies out there offering different services, including charities. If they are offering a service that involves handling your money they should be authorised by the FCA. I would generally recommend one of the free charity-based providers\"
When you are looking for a provider it's worth bearing in mind three things:
Once you have found your DMP provider, they will speak to your creditors and negotiate with them on your behalf. It doesn't matter how many individual debts you have, a DMP will allow you to pay them back in one affordable monthly payment.
This payment is paid to your DMP provider and they are responsible for dividing it between your creditors. Presume your DMP provider reviews your plan each year to see if the agreed payment needs to change.
Some creditors insist on a note of the DMP being put onto your credit file. This can affect your ability to borrow money in the future.
\"If you have less that £20,000 in debt, with no assets and savings and a low disposable income then this is an option.\"
Although this is a legal solution, you don't need to appear in court. However, you do need to pay a £90 charge to set it up.
A DRO freezes the interest and payments on the debt included in your DRO for a period of up to 12 months. During this time your creditors can’t force you to pay off the debts.
When the DRO ends, most of your debts will be written off. It will however have an affect on your credit rating. Creditors and Lenders will be able to see that you have struggled to keep on top of your repayments.
If your situation changes during the year you need to advise the official receiver. When your DRO was set up you will have received an advice. This advice will contain all the details of the official receiver and who to contact in the event that your circumstances change.
It is really important that you make sure all the details in the application are correct. If they are not it could result in one of three things happening:
Before applying, during the application process and when you have a DRO, you need to be squeaky clean. In short, nothing short of absolute honesty and integrity is required throughout the whole process.
\"An administration order is a legally binding repayment plan. Both you and your creditors must stick to it.\"
In general this is suitable for someone who has some disposable income and doesn't want to talk to their creditors. Before you can apply you must meet two conditions:
If you don’t meet the conditions and you think this is right for you. There are a couple of things you can do.
There is no upfront fee for setting up an AO but the courts will keep 10% of your repayments to cover costs.
The court will assess all of your debts and your income. They will work out an affordable repayment plan for up to three years. Although creditors can ask to be kept out of the AO, the court will make the final decision.
Like with every debt solution there are additional caveats, extras and warnings. The most important ones to note here are:
You need to be aware of the main repercussions of an AO:
\"Although these can offer the flexibility you need, they can also be expensive. The people you need to set them up charge a lot for the services they provide. So make sure this is not only what you need but also what you can afford.\"
This is another form of legal repayment plan between you and your creditors. An IVA is suitable for someone who has a regular income and can afford to make repayments, but doesn't want to talk to their creditors.
You can get an IVA if you have two or more debts totalling less than £10,000, but it can be expensive so this is normally seen as the minimum. A typical IVA costs between £4,000 and £5,000 over it's lifetime.
If you own a home or a business an IVA can be a better solution to bankruptcy.
An IVA must be set up by a qualified person, called an insolvency practitioner, which is typically a lawyer or an accountant. You can find one on the government website.
Although you can use a debt management practitioner, it can mean incurring additional charges.
The insolvency practitioner guides you through the stages of the IVA process. Their primary goal is to help you negotiate an affordable repayment plan. They are also responsible for dealing with your creditors throughout the life of the IVA.
When the repayment plan becomes legally binding you will be required to make a single payment every month to the insolvency practitioner. They will deduct their fees and distribute the money to your creditors.
The arrangement typically lasts for 5 to 6 years. Any debt outstanding at the end of the process is normally written off.
You need to be aware of the main repercussions of an IVA:
\"Bankruptcy is generally the last resort when it comes to a debt solution. Even though this is an option, it is not one to take lightly.\"
There are three reasons that a bankruptcy order can be made:
If you are making the application yourself, make sure Bankruptcy is right for you. Citizens Advice have a helpful checklist online that will guide you through this process.
If you are eligible for a fee of £680 and the submission of an online form, you can go bankrupt. This means that all your assets, less a small amount of 'exempt goods' are distributed amongst your creditors.
Bankruptcy is a legal status which typically lasts for 12-months. After this time it allows you to make a fresh start free of debt. Although it does cover most forms of debt, it doesn't cover everything.
There may be other restrictions that apply for up to 15 years and you may have to continue to make some payments for up to three years.
\"The biggest impact will be on your life. The lasting effects of bankruptcy go way beyond the first year.\"
You need to be aware of the main repercussions of bankruptcy:
\"The final debt solutions are emotional, difficult and complex. This overview is intended to give you the headlines, but the devil is in the detail. It is for this reason that I strongly recommend that you talk to a debt specialist.\"
There is a vast amount of help out there online, but getting one on one help is essential to make sure you choose the right solution for you. There are three great organisations offering free services that Peter recommends as a starting point:
If you're in a situation that requires one of these solutions, we understand it must be very hard for you right now. So we thought we would end on a few wise words from Peter.
\"These are serious decisions you have to make, and often when you are at your lowest. Rest assured, there is nothing to be afraid of. Getting your financial situation sorted will reduce the time spent worrying and get rid of those difficult letters and emails from creditors. The history books show us that often people rise to their greatest achievements after a time of financial difficulty. Walt Disney was one such man, and look at what he achieved.\"
If you have any questions, please get in touch at support@multiply.ai.
","url":"https://multiply.ghost.io/debt-series-4-when-debt-gets-serious/","uuid":"709bb0e2-505a-4c6a-8c94-f112b3e4d9f8","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5ea9aba700f20c0039e053f1"}},{"node":{"id":"Ghost__Post__5ea2bd8d52a471003840c5f6","title":"Debt Series: #3 Different debt and what to do about it","slug":"debt-series-3-different-debt-what-to-do-about-it","featured":false,"feature_image":"https://images.unsplash.com/photo-1563198804-b144dfc1661c?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Peter, our Head of Advice is taking a closer look at the different types of debt and how to deal with them.","custom_excerpt":"Peter, our Head of Advice is taking a closer look at the different types of debt and how to deal with them.","created_at_pretty":"24 April, 2020","published_at_pretty":"24 April, 2020","updated_at_pretty":"22 October, 2020","created_at":"2020-04-24T10:21:01.000+00:00","published_at":"2020-04-24T10:46:52.000+00:00","updated_at":"2020-10-22T08:41:24.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"If you're on top of your budget and you're aware of the help that's on offer,\nit's time to take a closer look at the different types of debt and how to deal\nwith them.\n\nYour aim is simple: negotiate an affordable repayment plan.\n\n> \"Start talking to the people and companies you owe money to. Leverage all the\nhelp the government has provided and more if possible. The earlier you pick up\nthe phone the better as it is in their interest to help you too. They usually\nhave a team to help with a range of relief options and flexible payment terms to\nsuit a range of circumstances.\"\nBefore you pick up the phone you'll need to work out two things: what you owe\nand what you can afford to repay.\n\nThere are two main categories of debt; priority debt and other debt.\n\nIt's a priority debt if:\n\n * You could lose your home, property, or access to services if you don't keep\n up with repayments\n * It's anything legal or to do with the government and you could go to prison\n\nDealing with priority debts\nOnce you have identified your priority debts, get going on resolving these\nfirst.\n\nHMRC\n> \"Money you owe to the government is your number one priority.\"\nIf you owe tax and are unable to pay HMRC you need to try and set up an\naffordable tax payment plan. Arranging a repayment plan depends on the amount\nyou owe and whether you have online access to the government gateway:\n\n * If you owe less than £10,000 you might be able to do this online\n [https://www.access.service.gov.uk/login/signin/creds]\n * If you owe more than £10,000 or you can't apply online contact the Self\n Assessment Payment Helpline\n [https://www.gov.uk/government/organisations/hm-revenue-customs/contact/agent-dedicated-line-debt-management]\n\nEligibility is also dependent on whether or not you have any other payment plans\nwith HMRC.\n\nThe payment plan is designed to spread the cost of your latest Self Assessment\nbill. You can choose the amount you pay upfront and how much you pay each month.\nInterest is payable and currently charged at 2.60%.\n\nIf you’re self-employed\nYou can also delay your payment on account (which would ordinarily be due in\nJuly 2020) until 31 January 2021. Only delay if you really need to - if you've\ngot the money, you should make the payment.\n\nRent and mortgage arrears\n> \"Getting into arrears when it comes to your home is really worrying. If you\ndon't act quickly and pay back what you owe, you can end up losing your home.\nFortunately the government have announced some short term plans that help.\"\nHere are the key steps to take:\n\n 1. Firstly, speak to your mortgage provider or landlord and negotiate a\n repayment holiday or a new repayment plan.\n 2. Check\n [https://www.citizensadvice.org.uk/benefits/benefits-introduction/what-benefits-can-i-get/] \n to see what benefits you are eligible for. If you are already receiving\n benefits, check [https://benefits-calculator.turn2us.org.uk/AboutYou] to see\n if you are getting the right amount.\n 3. Consider asking for a proportion of any benefits you get to be paid directly\n towards the arrears.\n\nSelling and switching\nSwitching to a cheaper mortgage deal and selling the property are both options\nyou need to consider when you are dealing with mortgage debt.\n\nBoth will be trickier to do right now, although virtual valuations are starting\nto make it easier. Either way, if you are thinking about it, we recommend you\ntalk to a mortgage adviser first.\n\nOther priority debt\nThese arise when you fall behind on bills that could result in you losing\nutility services or property (for example an electricity bill). They could also,\nin extreme circumstances, result in court proceedings (for example child\nmaintenance and council tax).\n\nThese unpaid payments are called arrears. When you build up a balance that you\nowe, it attracts interest and non payment fees. If you do find yourself in this\nsituation, pick up the phone and negotiate a repayment plan that you can afford.\n\nOther Debt\nPayday loans\n> \"Because these loans attract such a high rate of interest, it's important to\ndeal with them sooner rather than later. After you have sorted out all your\npriority debt these ones usually top the list of the other debts you need to\ndeal with.\"\nWhen you took out the loan you agreed the lender could collect regular\nrepayments from your bank account on a set date. If you don’t have enough in\nyour account on the agreed date, the lender can try again and charge you for\nthe late payment.\n\nIf you are you are having issues paying back the loan, the lender may offer you\nlonger to pay. They can do this in one of two ways; extending the time to pay or\nrolling the loan over. A rollover results in a new agreement for the repayment\nof the original loan.\n\nWarning\nIf there is a better alternative to using or extending these loans, take it.\nExtending or rolling over will result in you repaying even more money to the\nlender in interest and fees or other charges.\n\n> \"As a rule, I recommend you avoid these types of loans. But if you do need to\nuse them revisit the reason why. Was it just bad luck or could you have avoided\nit through better planning, for example, better budgeting or building an\nemergency fund.\"\nCredit cards, store cards, online credit and catalogues\nThis type of debt is unsecured, which means they can not take anything away from\nyou. It's not a criminal offence not to pay, but that doesn't mean that you\nwon't end up in court.\n\nYou need to figure out which are the most expensive ones and pay those off\nfirst. Where you can, try to pay off more than the minimum to clear the debt\nfaster.\n\nThe other trick is to reduce the rates by using balance transfers to a lower\ninterest credit card. It won't reduce the debt, but it will reduce the amount\nyou have to pay back in interest.\n\nWhen all else fails, negotiating a repayment plan is your best option. Non\npayment of this debt will have an impact on your credit score so it's worth\nremembering, a deferred payment is better than a missed one.\n\nWarning\nEven if someone else has run up the debt, you'll be responsible for paying it.\nIf you have given someone a card on your account, you will need to get them to\nstop spending too.\n\nFriends and Family\n> \"Repaying debt to family and friends is personal. There are no hard and fast\nrules here, this one is much more about you relationship and we can't advise you\non that. The one thing I would say is be open an honest about your situation.\"\nFrom a really practical point of view this debt does not affect your credit\nscore and in many cases does not attract interest either.\n\nIf at all possible and with agreement, it would make sense to try and pay back\nyour other debts first. That said, it doesn't mean it's not a priority. It\ndepends on who you have borrowed it from and their own circumstances.\n\nHelp from friends and family\nYour family and friends could also be a source of help. Nearly a third of people\n[https://www.equifax.co.uk/about-equifax/press-releases/en_gb/-/blog/one-in-three-need-financial-help-from-family-and-friends/] \nneed financial help from their friends and family at some stage. While it's not\neasy to ask, this is an important lifeline that can see you through difficult\ntimes.\n\nIf things don't go to plan\nIf you have offered to make repayments but it has been rejected it makes sense\nto follow these two simple steps:\n\n 1. Keep records of your repayment offer including dates, times and the person\n you spoke to\n 2. Save the amount you offered to pay into a separate account and don't spend\n it\n\nThis could help you if legal action is taken down the line.\n\nA final thought\nIf you cannot afford to repay all of your debts and you still need help, Peter\nrecommends talking to a debt specialist. Your first port of call should be one\nof the free advice options such as StepChange [https://www.stepchange.org/] or \nCitizens Advice [https://www.citizensadvice.org.uk/].\n\nThe final article is one we hope you'll never need: what happens as a last\nresort in dealing with debt.\n\nAs a final note: be kind to yourself. You've already taken an enormous step in\nfacing up to your debt, and there is plenty of help out there. If you have any\nquestions, please get in touch at support@multiply.ai.","html":"If you're on top of your budget and you're aware of the help that's on offer, it's time to take a closer look at the different types of debt and how to deal with them.
Your aim is simple: negotiate an affordable repayment plan.
\"Start talking to the people and companies you owe money to. Leverage all the help the government has provided and more if possible. The earlier you pick up the phone the better as it is in their interest to help you too. They usually have a team to help with a range of relief options and flexible payment terms to suit a range of circumstances.\"
Before you pick up the phone you'll need to work out two things: what you owe and what you can afford to repay.
There are two main categories of debt; priority debt and other debt.
It's a priority debt if:
Once you have identified your priority debts, get going on resolving these first.
\"Money you owe to the government is your number one priority.\"
If you owe tax and are unable to pay HMRC you need to try and set up an affordable tax payment plan. Arranging a repayment plan depends on the amount you owe and whether you have online access to the government gateway:
Eligibility is also dependent on whether or not you have any other payment plans with HMRC.
The payment plan is designed to spread the cost of your latest Self Assessment bill. You can choose the amount you pay upfront and how much you pay each month. Interest is payable and currently charged at 2.60%.
You can also delay your payment on account (which would ordinarily be due in July 2020) until 31 January 2021. Only delay if you really need to - if you've got the money, you should make the payment.
\"Getting into arrears when it comes to your home is really worrying. If you don't act quickly and pay back what you owe, you can end up losing your home. Fortunately the government have announced some short term plans that help.\"
Here are the key steps to take:
Switching to a cheaper mortgage deal and selling the property are both options you need to consider when you are dealing with mortgage debt.
Both will be trickier to do right now, although virtual valuations are starting to make it easier. Either way, if you are thinking about it, we recommend you talk to a mortgage adviser first.
These arise when you fall behind on bills that could result in you losing utility services or property (for example an electricity bill). They could also, in extreme circumstances, result in court proceedings (for example child maintenance and council tax).
These unpaid payments are called arrears. When you build up a balance that you owe, it attracts interest and non payment fees. If you do find yourself in this situation, pick up the phone and negotiate a repayment plan that you can afford.
\"Because these loans attract such a high rate of interest, it's important to deal with them sooner rather than later. After you have sorted out all your priority debt these ones usually top the list of the other debts you need to deal with.\"
When you took out the loan you agreed the lender could collect regular repayments from your bank account on a set date. If you don’t have enough in your account on the agreed date, the lender can try again and charge you for the late payment.
If you are you are having issues paying back the loan, the lender may offer you longer to pay. They can do this in one of two ways; extending the time to pay or rolling the loan over. A rollover results in a new agreement for the repayment of the original loan.
If there is a better alternative to using or extending these loans, take it. Extending or rolling over will result in you repaying even more money to the lender in interest and fees or other charges.
\"As a rule, I recommend you avoid these types of loans. But if you do need to use them revisit the reason why. Was it just bad luck or could you have avoided it through better planning, for example, better budgeting or building an emergency fund.\"
This type of debt is unsecured, which means they can not take anything away from you. It's not a criminal offence not to pay, but that doesn't mean that you won't end up in court.
You need to figure out which are the most expensive ones and pay those off first. Where you can, try to pay off more than the minimum to clear the debt faster.
The other trick is to reduce the rates by using balance transfers to a lower interest credit card. It won't reduce the debt, but it will reduce the amount you have to pay back in interest.
When all else fails, negotiating a repayment plan is your best option. Non payment of this debt will have an impact on your credit score so it's worth remembering, a deferred payment is better than a missed one.
Even if someone else has run up the debt, you'll be responsible for paying it. If you have given someone a card on your account, you will need to get them to stop spending too.
\"Repaying debt to family and friends is personal. There are no hard and fast rules here, this one is much more about you relationship and we can't advise you on that. The one thing I would say is be open an honest about your situation.\"
From a really practical point of view this debt does not affect your credit score and in many cases does not attract interest either.
If at all possible and with agreement, it would make sense to try and pay back your other debts first. That said, it doesn't mean it's not a priority. It depends on who you have borrowed it from and their own circumstances.
Your family and friends could also be a source of help. Nearly a third of people need financial help from their friends and family at some stage. While it's not easy to ask, this is an important lifeline that can see you through difficult times.
If you have offered to make repayments but it has been rejected it makes sense to follow these two simple steps:
This could help you if legal action is taken down the line.
If you cannot afford to repay all of your debts and you still need help, Peter recommends talking to a debt specialist. Your first port of call should be one of the free advice options such as StepChange or Citizens Advice.
The final article is one we hope you'll never need: what happens as a last resort in dealing with debt.
As a final note: be kind to yourself. You've already taken an enormous step in facing up to your debt, and there is plenty of help out there. If you have any questions, please get in touch at support@multiply.ai.
","url":"https://multiply.ghost.io/debt-series-3-different-debt-what-to-do-about-it/","uuid":"7021f8c5-0cce-4d5f-89e1-c4d652c1917e","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5ea2bd8d52a471003840c5f6"}},{"node":{"id":"Ghost__Post__5e9f0d791362fa00445a1c66","title":"Debt Series: #2 Help with debt during the pandemic","slug":"debt-series-2-help-with-debt-during-coronavirus-pandemic","featured":false,"feature_image":"https://images.unsplash.com/photo-1583932334951-9a74f88ea6aa?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"The Financial Conduct Authority (FCA) has introduced a lot of new measures to help borrowers. Let's look at what help is available and what to watch out for.","custom_excerpt":"The Financial Conduct Authority (FCA) has introduced a lot of new measures to help borrowers. Let's look at what help is available and what to watch out for.","created_at_pretty":"21 April, 2020","published_at_pretty":"21 April, 2020","updated_at_pretty":"22 October, 2020","created_at":"2020-04-21T15:12:57.000+00:00","published_at":"2020-04-21T15:32:25.000+00:00","updated_at":"2020-10-22T08:42:31.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":" The Financial Conduct Authority (FCA) has introduced a lot of new measures to\nhelp people who are struggling to keep up with debt repauments. Let's look at\nwhat help is available and what to watch out for.\n\nAll the measures that have been introduced are there to provide temporary\nsupport. It's worth spending a little time to figure out if these are the right\nmoves for you as they could end up costing you more in the long run.\n\nIf you haven't nailed your budget and cut out any unnecessary spending, check\nout the first article\n[https://multiply-blog.appspot.com/debt-series-1-dealing-with-debt-in-a-pandemic/] \nand tackle that stuff first.\n\nHow to access help\nDon't just stop making payments.\n\nIn all instances you need to contact your provider. With such a high demand it\ncan be tough getting through by phone.\n\nYour lender's website is always a great starting point. It will detail what they\nare doing, any terms and conditions, and in many cases you can also apply\nonline.\n\nPersonal loans & credit cards\nYou can freeze or reduce repayments for up to three months. The period will last\nfrom the time you agree the details with your lender. Luckily, this will not\naffect your credit score.\n\nIf you’re still having trouble making payments after the end of your three month\nbreak, you can speak to your credit card company about further help.\n\nThis doesn't just apply to personal loans and credit cards. Store cards,\ncatalogue debt, guarantor loans, logbook loans and home collected credit are\nalso covered buy these measures.\n\nOverdrafts\nUp to £500 is now interest free. People with existing overdrafts on personal\ncurrent accounts will benefit from the new measures.\n\nIf you're after a new overdraft or a a bigger overdraft (subject to checks and\naffordability), you'll be able to get the same deal.\n\nMortgages\nA three month mortgage holiday or reduced payment period is available to all\nhomeowners. The holiday period will be calculated from the time you reach an\nagreement with your lender.\n\nIf you take a mortgage holiday or reduce your payments for three months due to\ncoronavirus, it wont affect your credit score\n\nAn additional mortgage holiday can potentially be negotiated if you’re still\nhaving trouble making payments at the end of the three months.\n\nDon't forget, interest will still be charged but it will be added to the\nmortgage balance.\n\nOther credit\nProposals for a number of other types of credit are still being negotiated.\nthese include:\n\n * High-cost short-term credit (including payday loans) - 10 month freeze\n * Motor (Car) Finance - Up to a three month freeze\n * Buy Now Pay Later - Up to a three month freeze\n * Rent to Own - Up to a three month freeze\n * Pawnbroking - Up to a three month freeze\n\nIf approved, these measures are expected to come into force on 27 April 2020, so\nkeep an eye out for those.\n\nWhat's next?\nIn our next article\n[https://multiply-blog.appspot.com/debt-series-3-different-debt-what-to-do-about-it/] \nwe'll look at the different types of debt and how to tackle them. If you have\nany suggestions for topics that you would like to see us cover during these\ntimes please contact us at support@multiply.ai.","html":"The Financial Conduct Authority (FCA) has introduced a lot of new measures to help people who are struggling to keep up with debt repauments. Let's look at what help is available and what to watch out for.
All the measures that have been introduced are there to provide temporary support. It's worth spending a little time to figure out if these are the right moves for you as they could end up costing you more in the long run.
If you haven't nailed your budget and cut out any unnecessary spending, check out the first article and tackle that stuff first.
Don't just stop making payments.
In all instances you need to contact your provider. With such a high demand it can be tough getting through by phone.
Your lender's website is always a great starting point. It will detail what they are doing, any terms and conditions, and in many cases you can also apply online.
You can freeze or reduce repayments for up to three months. The period will last from the time you agree the details with your lender. Luckily, this will not affect your credit score.
If you’re still having trouble making payments after the end of your three month break, you can speak to your credit card company about further help.
This doesn't just apply to personal loans and credit cards. Store cards, catalogue debt, guarantor loans, logbook loans and home collected credit are also covered buy these measures.
Up to £500 is now interest free. People with existing overdrafts on personal current accounts will benefit from the new measures.
If you're after a new overdraft or a a bigger overdraft (subject to checks and affordability), you'll be able to get the same deal.
A three month mortgage holiday or reduced payment period is available to all homeowners. The holiday period will be calculated from the time you reach an agreement with your lender.
If you take a mortgage holiday or reduce your payments for three months due to coronavirus, it wont affect your credit score
An additional mortgage holiday can potentially be negotiated if you’re still having trouble making payments at the end of the three months.
Don't forget, interest will still be charged but it will be added to the mortgage balance.
Proposals for a number of other types of credit are still being negotiated. these include:
If approved, these measures are expected to come into force on 27 April 2020, so keep an eye out for those.
In our next article we'll look at the different types of debt and how to tackle them. If you have any suggestions for topics that you would like to see us cover during these times please contact us at support@multiply.ai.
","url":"https://multiply.ghost.io/debt-series-2-help-with-debt-during-coronavirus-pandemic/","uuid":"dc77574b-185f-4384-b6f3-d80966a48670","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e9f0d791362fa00445a1c66"}},{"node":{"id":"Ghost__Post__5e8c5d0e962d2500385520dc","title":"Debt Series: #1 Dealing with debt in a pandemic","slug":"debt-series-1-dealing-with-debt-in-a-pandemic","featured":false,"feature_image":"https://images.unsplash.com/photo-1554224155-8d04cb21cd6c?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"We asked Peter for his top tips for getting on top of your debt in a pandemic (or any time for that matter) and here's what he told us.","custom_excerpt":"We asked Peter for his top tips for getting on top of your debt in a pandemic (or any time for that matter) and here's what he told us.","created_at_pretty":"07 April, 2020","published_at_pretty":"08 April, 2020","updated_at_pretty":"22 October, 2020","created_at":"2020-04-07T10:59:26.000+00:00","published_at":"2020-04-08T08:36:34.000+00:00","updated_at":"2020-10-22T08:31:33.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"It's hard to get through the day without seeing debt and coronavirus in the same\nheadline. Extraordinary circumstances call for a different approach to getting\nand staying debt free.\n\nAccording to Peter, our Head of Advice, the principles are still the same. \n\"Firstly the focus must be on living within your means and secondly you must\nstick to it. This is sound advice in any situation, even in the middle of a\npandemic.\"\n\nWe asked Peter for his top tips for getting on top of your debt in a pandemic\n(or any time for that matter) and here's what he told us:\n\nTop Tip #1: make a budget\nStart with a budget, to help you avoid getting into any more debt. This is the\nhardest part. In short you need to stop spending what you haven't got. This\nmeans listing out all of your income and outgoings.\n\nWords of wisdom from Peter:\n> \"This is where most people go wrong. This must be done over a year, not a month\nif not it will be a useless exercise. Why? Because it wont capture the\n'irregular regular' outgoings, for example holidays, birthdays, Christmas,\nannual insurance policies etc\".\nWork out your net disposable income (income minus outgoings) by month and over\nthe year, to see if you have any cash to spare. A yearly budget makes it easier\nto allow for big costs like summer holidays and Christmas. If you're running\nshort, getting a grip early is really important. That's where Peter's second top\ntip comes in.\n\nTop Tip #2: cut your spend\nStart looking at what you can give up. Have a look at your memberships and\nsubscriptions: newspapers, magazines, Netflix, Spotify, Amazon, clubs, and gym\nmembership. Do you really need them?\n\nSeparate the \"nice to haves\" from the essentials. Once you have established what\nthe nice to haves are, you can take your first action: cancel them.\n\nNow look at the other stuff, what else can you cut back on? Small changes add up\nand can make a big difference.\n\nTop Tip #3: reduce the interest\nNext, give yourself a bit of breathing space by reducing the interest you're\npaying on your debt. Credit card transfers and overdrafts to replace credit\ncards are two of the most common ways to do this.\n\nPick up the phone and talk to your lenders. There are lots of things they can\ndo, especially now. So don't be afraid to talk to them and explain your\nsituation in order to find out what they can do to help.\n\nTop Tip #4: admit the problem\nThis is controversial but in Peter's own words, \"don't be afraid to admit you\nhave a problem\". Burying your head in the sand won't make it go away.\n\nThroughout his career Peter has seen people do some crazy things even to protect\na 'credit score'. He has seen people get into more debt by paying the minimum\nrequired, only to find out their credit score was getting lower and lower\nbecause of the amount of debt accruing in the first place.\n\nTaking the first step is always the hardest, but there's plenty of help out\nthere.\n\nIn the next article\n[https://multiply-blog.appspot.com/debt-series-2-help-with-debt-during-coronavirus-pandemic/] \nwe'll take a look at what help is available and how to go about getting it. In\nthe meantime, you can send any questions to support@multiply.ai.","html":"It's hard to get through the day without seeing debt and coronavirus in the same headline. Extraordinary circumstances call for a different approach to getting and staying debt free.
According to Peter, our Head of Advice, the principles are still the same. \"Firstly the focus must be on living within your means and secondly you must stick to it. This is sound advice in any situation, even in the middle of a pandemic.\"
We asked Peter for his top tips for getting on top of your debt in a pandemic (or any time for that matter) and here's what he told us:
Start with a budget, to help you avoid getting into any more debt. This is the hardest part. In short you need to stop spending what you haven't got. This means listing out all of your income and outgoings.
\"This is where most people go wrong. This must be done over a year, not a month if not it will be a useless exercise. Why? Because it wont capture the 'irregular regular' outgoings, for example holidays, birthdays, Christmas, annual insurance policies etc\".
Work out your net disposable income (income minus outgoings) by month and over the year, to see if you have any cash to spare. A yearly budget makes it easier to allow for big costs like summer holidays and Christmas. If you're running short, getting a grip early is really important. That's where Peter's second top tip comes in.
Start looking at what you can give up. Have a look at your memberships and subscriptions: newspapers, magazines, Netflix, Spotify, Amazon, clubs, and gym membership. Do you really need them?
Separate the \"nice to haves\" from the essentials. Once you have established what the nice to haves are, you can take your first action: cancel them.
Now look at the other stuff, what else can you cut back on? Small changes add up and can make a big difference.
Next, give yourself a bit of breathing space by reducing the interest you're paying on your debt. Credit card transfers and overdrafts to replace credit cards are two of the most common ways to do this.
Pick up the phone and talk to your lenders. There are lots of things they can do, especially now. So don't be afraid to talk to them and explain your situation in order to find out what they can do to help.
This is controversial but in Peter's own words, \"don't be afraid to admit you have a problem\". Burying your head in the sand won't make it go away.
Throughout his career Peter has seen people do some crazy things even to protect a 'credit score'. He has seen people get into more debt by paying the minimum required, only to find out their credit score was getting lower and lower because of the amount of debt accruing in the first place.
Taking the first step is always the hardest, but there's plenty of help out there.
In the next article we'll take a look at what help is available and how to go about getting it. In the meantime, you can send any questions to support@multiply.ai.
","url":"https://multiply.ghost.io/debt-series-1-dealing-with-debt-in-a-pandemic/","uuid":"42c34a1a-54f8-4a2b-95d2-e7c4946a79c9","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e8c5d0e962d2500385520dc"}},{"node":{"id":"Ghost__Post__5e8c65fe962d250038552100","title":"Will coronavirus stop me buying a home?","slug":"will-coronavirus-stop-me-buying-a-home","featured":false,"feature_image":"https://images.unsplash.com/photo-1498811008858-d95a730b2ffc?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"The pandemic has put the property market on ice for the foreseeable future, disrupting many people's plans.","custom_excerpt":"The pandemic has put the property market on ice for the foreseeable future, disrupting many people's plans.","created_at_pretty":"07 April, 2020","published_at_pretty":"07 April, 2020","updated_at_pretty":"07 April, 2020","created_at":"2020-04-07T11:37:34.000+00:00","published_at":"2020-04-07T11:45:26.000+00:00","updated_at":"2020-04-07T13:48:44.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"Coronavirus has put the property market on ice for the foreseeable future. 85%\nof Multipliers who plan to buy a home say the current situation is affecting\ntheir plans.\n\nIn the long term, there's no reason why the pandemic should call a halt to your\nhome owning ambitions. However, in the short term it might throw a spanner in\nthe works.\n\nCan I still buy a home?\nAlthough the government has asked us not to move house, you are still allowed to\nbuy property. However, many people are delaying their plans.\n\nPeople who are self-isolating or shielding, and can't leave the house at all,\nshould put all plans to move house on hold.\n\nOwners are (technically) allowed to put their property on the market...but\nthey're not meant to hold viewings. That means many would-be sellers have\nwithdrawn their properties from the market.\n\nIf you haven't already found the place you want, you'll have to do viewings\nremotely via video call rather than seeing it in person.\n\nCan I get a mortgage?\nIt's not an easy time to apply for a mortgage. Some providers, like Nationwide,\nhave stopped lending to anyone with less than a 25% deposit, and a few have\nwithdrawn all their mortgages from the market entirely.\n\nIf you've already submitted your application, lenders have said they'll offer an\nextension on the offer to give you time to complete. So if you have a mortgage\noffer, you should speak to your broker or lender to find out what their policy\nis.\n\nIf your income has changed, this might affect your ability to borrow as much as\nyou'd like. Generally, mortgage providers will lend you up to five times your\ntotal annual income, to make sure you'll be able to afford your repayments.\n\nWhat if I'm saving less?\n1 in 3 Multipliers who are saving up to buy a home say their income and savings\nare taking a hit at the moment.\n\nIf you're not able to save as much as you planned to, you might need to keep\nsaving for longer or adjust your expectations of what property you can buy, and\nwhen. You can use our property calculator\n[https://multiply.ai/property-calculator/] to work this out.\n\nSome people are using their savings to live on at the moment. Unless you have no\nother options, try not to touch money that's living in a Help to Buy ISA,\nLifetime ISA, or invested in stocks and shares. Turn to any easy-access money in\ncurrent or savings accounts first.\n\nIf you're struggling, there is help available. There are some tips here\n[https://multiply-blog.appspot.com/building-an-emergency-fund-in-a-pandemic/] \nabout how to get stable and keep saving if you can.\n\nWhat will happen to prices?\nThe property market looks very uncertain for this year. Nationwide, which\npublishes the biggest report of property prices, has said it will be hard to\ngauge market values because fewer sales are taking place.\n\nProperty firm Knight Frank also says that there will be significantly fewer\ntransactions this year. It predicts a price drop of around 3% in 2020, meaning\nhomes will be cheaper by the end of the year. That's assuming the economy\nshrinks by 4% - which is only a guesstimate at this point.\n\nKnight Frank also predicts that property values will recover once the crisis has\npassed and the market starts up again. It expects price growth in 2021, but for\nnow the future is still uncertain.\n\nAny other questions?\nThe Multiply team is here to support you and help you continue making progress\ntowards your goals during this tricky time.\n\nIf you have any other questions or need help with your plan, you can give us a\nshout at support@multiply.ai.","html":"Coronavirus has put the property market on ice for the foreseeable future. 85% of Multipliers who plan to buy a home say the current situation is affecting their plans.
In the long term, there's no reason why the pandemic should call a halt to your home owning ambitions. However, in the short term it might throw a spanner in the works.
Although the government has asked us not to move house, you are still allowed to buy property. However, many people are delaying their plans.
People who are self-isolating or shielding, and can't leave the house at all, should put all plans to move house on hold.
Owners are (technically) allowed to put their property on the market...but they're not meant to hold viewings. That means many would-be sellers have withdrawn their properties from the market.
If you haven't already found the place you want, you'll have to do viewings remotely via video call rather than seeing it in person.
It's not an easy time to apply for a mortgage. Some providers, like Nationwide, have stopped lending to anyone with less than a 25% deposit, and a few have withdrawn all their mortgages from the market entirely.
If you've already submitted your application, lenders have said they'll offer an extension on the offer to give you time to complete. So if you have a mortgage offer, you should speak to your broker or lender to find out what their policy is.
If your income has changed, this might affect your ability to borrow as much as you'd like. Generally, mortgage providers will lend you up to five times your total annual income, to make sure you'll be able to afford your repayments.
1 in 3 Multipliers who are saving up to buy a home say their income and savings are taking a hit at the moment.
If you're not able to save as much as you planned to, you might need to keep saving for longer or adjust your expectations of what property you can buy, and when. You can use our property calculator to work this out.
Some people are using their savings to live on at the moment. Unless you have no other options, try not to touch money that's living in a Help to Buy ISA, Lifetime ISA, or invested in stocks and shares. Turn to any easy-access money in current or savings accounts first.
If you're struggling, there is help available. There are some tips here about how to get stable and keep saving if you can.
The property market looks very uncertain for this year. Nationwide, which publishes the biggest report of property prices, has said it will be hard to gauge market values because fewer sales are taking place.
Property firm Knight Frank also says that there will be significantly fewer transactions this year. It predicts a price drop of around 3% in 2020, meaning homes will be cheaper by the end of the year. That's assuming the economy shrinks by 4% - which is only a guesstimate at this point.
Knight Frank also predicts that property values will recover once the crisis has passed and the market starts up again. It expects price growth in 2021, but for now the future is still uncertain.
The Multiply team is here to support you and help you continue making progress towards your goals during this tricky time.
If you have any other questions or need help with your plan, you can give us a shout at support@multiply.ai.
","url":"https://multiply.ghost.io/will-coronavirus-stop-me-buying-a-home/","uuid":"9a1c35d5-21e8-41e4-9de2-32751bae13d3","page":null,"codeinjection_foot":null,"codeinjection_head":"","codeinjection_styles":null,"comment_id":"5e8c65fe962d250038552100"}},{"node":{"id":"Ghost__Post__5e8763835efef4003764fb9e","title":"Investing is a marathon not a sprint","slug":"investing-is-a-marathon-not-a-sprint","featured":false,"feature_image":"https://images.unsplash.com/photo-1581889470536-467bdbe30cd0?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Warren Buffet is arguably the greatest investor of all time. When he speaks, people listen. So what words of wisdom can he offer in these tough times?","custom_excerpt":"Warren Buffet is arguably the greatest investor of all time. When he speaks, people listen. So what words of wisdom can he offer in these tough times?","created_at_pretty":"03 April, 2020","published_at_pretty":"03 April, 2020","updated_at_pretty":"04 May, 2020","created_at":"2020-04-03T16:25:39.000+00:00","published_at":"2020-04-03T16:34:27.000+00:00","updated_at":"2020-05-04T09:41:41.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"Covid-19 is worrying, full stop. Companies and livelihoods look precarious and\nthere is a lot going on to try and lessen the impact. There is however, no\ngetting away from the facts. The FTSE has posted it's largest quarterly fall\n[https://www.theguardian.com/business/2020/mar/31/ftse-100-posts-largest-quarterly-fall-since-black-monday-aftermath] \nin more than three decades and the end still looks a long way off.\n\nPeople are naturally worried about the value of their pensions and investments.\nMany investors out there have only known the most recent (and longest) bull\nmarket [https://www.investopedia.com/terms/b/bullmarket.asp] in history. It\nstarted in March 2009 and it has just come to an abrupt and unpredictable end.\n\nIt is worrying, we get it, so we thought we would have a look at some wise words\nfrom a seasoned pro. Love him or hate him, Warren Buffet is arguably the\ngreatest investor of all time. When he speaks, people listen. So what words of\nwisdom can he offer in these tough times?\n\nFocus on what matters\n> \"Games are won by players who focus on the playing field – not by those whose\neyes are glued to the scoreboard.\"\nThe key takeaway:\n\nStock markets swing widely and react to the smallest events as well as the big\nones. They can overreact to current events in ways that often seem dramatic.\nThis affects fund values and pensions as well as the underlying stocks.\n\nTry not to get caught up in the short-term craziness. There is no need to panic\nsell., stick to your investment plan and trust the research. History has taught\nus that markets often get it wrong and they do bounce back.\n\nPrepare for the long game\n> “Over the long term, the stock market news will be good. In the 20th century,\nthe United States endured two world wars and other traumatic and expensive\nmilitary conflicts; the Depression; a dozen or so recessions and financial\npanics; oil shocks; a fly epidemic; and the resignation of a disgraced\npresident. Yet the Dow rose from 66 to 11,497.”\nThe key takeaway:\n\nInvesting is a long term strategy. Looking at your position on a day to day\nbasis might be interesting and, at the moment, slightly scary. Affording your\nlifestyle over the long term isn't a matter of short term movements. It's about\ngetting a plan in place and sticking to it.\n\nBe patient\n> “Successful Investing takes time, discipline and patience. No matter how great\nthe talent or effort, some things just take time: You can’t produce a baby in\none month by getting nine women pregnant.”\nThe key takeaway:\n\nPatience is probably the biggest mindset shift. In a world where short-termism\nhas become the new norm, it's worth taking a step back. Some things just can't\nbe rushed, and saving and investing for a lifetime of happiness and security is\none of those things.\n\nAfter all, good things come to those that wait. This isn't about the short term\nswings, however bad they are, this is about the next 50 years.\n\nKnow yourself\n> \"A low-cost fund is the most sensible equity investment for the great majority\nof investors.\"\nThe key takeaway:\n\nWe all think we are a little bit of 'Warren' deep down, but in reality the vast\nmajority of us are (in his own words) 'know nothing' investors. We don't have\narmies of analysts at our disposal, nor are there enough hours in the day to do\nthe research. When it comes to being a pro it really is a particular type of\nperson that does it and does it well.\n\nFor all these reasons even the master himself advises the use of funds. Luckily\nfor you, at Multiply, that's just one of the many things that we advise you on.\nNot only does your plan look after your security, pension and protection it also\nlooks after your investment fund recommendations. If you keep your info current,\nthe advice will be too.\n\nThe final word\nIt's really tough out there for a whole host of reasons. Covid-19 will pass and\nwe will come through it. Whilst we are in the thick of it, the tendency is to\nonly focus on cash savings, but in reality investments in stock and shares have\nhistorically been a good bet. There is no reason to believe that won't happen\nagain.\n\nIf you remember one thing from this period, it's the need to develop your\nmarathon mentality. Remind yourself that you are in this for the long haul.\n\nUsing Multiply can really help you get on top of your finances. Financial\nresilience and protection have always been a key feature of what we do, but it\nwill also bring you closer to realising your goals through smart investment\nadvice.\n\nKeep dreaming, keep planning and keep safe.","html":"Covid-19 is worrying, full stop. Companies and livelihoods look precarious and there is a lot going on to try and lessen the impact. There is however, no getting away from the facts. The FTSE has posted it's largest quarterly fall in more than three decades and the end still looks a long way off.
People are naturally worried about the value of their pensions and investments. Many investors out there have only known the most recent (and longest) bull market in history. It started in March 2009 and it has just come to an abrupt and unpredictable end.
It is worrying, we get it, so we thought we would have a look at some wise words from a seasoned pro. Love him or hate him, Warren Buffet is arguably the greatest investor of all time. When he speaks, people listen. So what words of wisdom can he offer in these tough times?
\"Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.\"
The key takeaway:
Stock markets swing widely and react to the smallest events as well as the big ones. They can overreact to current events in ways that often seem dramatic. This affects fund values and pensions as well as the underlying stocks.
Try not to get caught up in the short-term craziness. There is no need to panic sell., stick to your investment plan and trust the research. History has taught us that markets often get it wrong and they do bounce back.
“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
The key takeaway:
Investing is a long term strategy. Looking at your position on a day to day basis might be interesting and, at the moment, slightly scary. Affording your lifestyle over the long term isn't a matter of short term movements. It's about getting a plan in place and sticking to it.
“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
The key takeaway:
Patience is probably the biggest mindset shift. In a world where short-termism has become the new norm, it's worth taking a step back. Some things just can't be rushed, and saving and investing for a lifetime of happiness and security is one of those things.
After all, good things come to those that wait. This isn't about the short term swings, however bad they are, this is about the next 50 years.
\"A low-cost fund is the most sensible equity investment for the great majority of investors.\"
The key takeaway:
We all think we are a little bit of 'Warren' deep down, but in reality the vast majority of us are (in his own words) 'know nothing' investors. We don't have armies of analysts at our disposal, nor are there enough hours in the day to do the research. When it comes to being a pro it really is a particular type of person that does it and does it well.
For all these reasons even the master himself advises the use of funds. Luckily for you, at Multiply, that's just one of the many things that we advise you on. Not only does your plan look after your security, pension and protection it also looks after your investment fund recommendations. If you keep your info current, the advice will be too.
It's really tough out there for a whole host of reasons. Covid-19 will pass and we will come through it. Whilst we are in the thick of it, the tendency is to only focus on cash savings, but in reality investments in stock and shares have historically been a good bet. There is no reason to believe that won't happen again.
If you remember one thing from this period, it's the need to develop your marathon mentality. Remind yourself that you are in this for the long haul.
Using Multiply can really help you get on top of your finances. Financial resilience and protection have always been a key feature of what we do, but it will also bring you closer to realising your goals through smart investment advice.
Keep dreaming, keep planning and keep safe.
","url":"https://multiply.ghost.io/investing-is-a-marathon-not-a-sprint/","uuid":"62d032f3-dc6b-4a28-8f4a-decb664cb0d9","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e8763835efef4003764fb9e"}},{"node":{"id":"Ghost__Post__5e8313a03f48b10038318b46","title":"Should I take a mortgage holiday?","slug":"should-i-take-a-mortgage-holiday","featured":false,"feature_image":"https://images.unsplash.com/photo-1501426026826-31c667bdf23d?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"It might sound like a no-brainer, but some people could be better off not taking this particular holiday.","custom_excerpt":"It might sound like a no-brainer, but some people could be better off not taking this particular holiday.","created_at_pretty":"31 March, 2020","published_at_pretty":"31 March, 2020","updated_at_pretty":"31 March, 2020","created_at":"2020-03-31T09:55:44.000+00:00","published_at":"2020-03-31T09:56:53.000+00:00","updated_at":"2020-03-31T10:01:20.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"Mortgage providers are now offering temporary \"holidays\" from making payments\nfor anyone whose income has been affected by the coronavirus pandemic.\n\nShould you take a break from your mortgage? It might sound like a no-brainer,\nbut some people could be better off not taking this particular holiday. Let's\ndive into why.\n\nHow it works\nA mortgage payment holiday is an agreement with your lender. It gives you a bit\nof breathing space by letting you stop or reduce your payments for up to three\nmonths.\n\nYour credit score won't be affected by taking a mortgage holiday and you won't\nhave to pay any extra fees or charges.\n\nYour mortgage will continue to accrue interest throughout, making your total\nmortgage debt higher overall. However, this is added to the total - you won't\nhave to pay it back immediately.\n\nAfter the payment holiday ends, you might have pay more each month to make up\nthe lost repayments. Or, your mortgage term might be extended with the missed\npayments added on.\n\nIs it right for you?\nIf you're facing a struggle to pay your mortgage, a payment holiday could be a\ngood short term solution.\n\nHowever, it's important to remember that your debt will continue to increase\nwhile you're not paying. Several lenders have spoken out publicly about the risk\nto customers of taking a mortgage holiday that they don't really need.\n\nIf you're worried about your finances, there are lots of options you can\nconsider before asking for a payment holiday.\n\nYour first step should be to check what cash you have available to fall back on.\nIt's cheaper in the long run to use your savings to keep making payments, if you\ncan. This is what emergency savings are for.\n\nYou can also speak to your lender about what other help they can offer you, such\nas reduced monthly payments or an interest-only arrangement.\n\nIf you're on a variable or tracker rate mortgage, remember that your payments\nwill be cheaper now thanks to the lower base rate. You'll save around £40 per\nmonth, per £100,000 of your mortgage balance.\n\nHow to apply\nIf you do want a mortgage holiday, you should get in touch with your lender and\nagree it with them. You can't just cancel your Direct Debit.\n\nSome lenders have warned that payment holidays won't take effect until the month\nafter you apply. So if you think you need one, it's better to apply sooner\nrather than later.\n\nMany mortgage providers are overwhelmed with calls at the moment, so apply\nonline if you can.\n\nYou won't need to prove to your lender that you're struggling. However, they'll\ndo a quick check to make sure a payment holiday won't make your mortgage\nunaffordable later on.\n\nTo be eligible you need to be up to date with your payments. Anyone who's\nalready behind will probably be offered alternative options.\n\nAny help for renters?\nIt isn't just homeowners who have bills to pay. The government has announced\nsome measures to help tenants who are worried about making rent during the\ncrisis.\n\nLandlords will now have to serve three months' notice if they want you to move\nout, instead of two.\n\nThe government has also said that if renters are struggling to pay, they should\nspeak to their landlord about putting a rent payment scheme in place.\n\nQuestions?\nIf you're not sure what to do, either with your mortgage or your finances\ngenerally, there are people out there to speak to. Turn to your lender as your\nfirst port of call - they will be able to suggest measures to help you cope.\n\nOur team is also on hand for any questions to do with your plan. Get in touch at\nsupport@multiply.ai and we'll do our best to help.","html":"Mortgage providers are now offering temporary \"holidays\" from making payments for anyone whose income has been affected by the coronavirus pandemic.
Should you take a break from your mortgage? It might sound like a no-brainer, but some people could be better off not taking this particular holiday. Let's dive into why.
A mortgage payment holiday is an agreement with your lender. It gives you a bit of breathing space by letting you stop or reduce your payments for up to three months.
Your credit score won't be affected by taking a mortgage holiday and you won't have to pay any extra fees or charges.
Your mortgage will continue to accrue interest throughout, making your total mortgage debt higher overall. However, this is added to the total - you won't have to pay it back immediately.
After the payment holiday ends, you might have pay more each month to make up the lost repayments. Or, your mortgage term might be extended with the missed payments added on.
If you're facing a struggle to pay your mortgage, a payment holiday could be a good short term solution.
However, it's important to remember that your debt will continue to increase while you're not paying. Several lenders have spoken out publicly about the risk to customers of taking a mortgage holiday that they don't really need.
If you're worried about your finances, there are lots of options you can consider before asking for a payment holiday.
Your first step should be to check what cash you have available to fall back on. It's cheaper in the long run to use your savings to keep making payments, if you can. This is what emergency savings are for.
You can also speak to your lender about what other help they can offer you, such as reduced monthly payments or an interest-only arrangement.
If you're on a variable or tracker rate mortgage, remember that your payments will be cheaper now thanks to the lower base rate. You'll save around £40 per month, per £100,000 of your mortgage balance.
If you do want a mortgage holiday, you should get in touch with your lender and agree it with them. You can't just cancel your Direct Debit.
Some lenders have warned that payment holidays won't take effect until the month after you apply. So if you think you need one, it's better to apply sooner rather than later.
Many mortgage providers are overwhelmed with calls at the moment, so apply online if you can.
You won't need to prove to your lender that you're struggling. However, they'll do a quick check to make sure a payment holiday won't make your mortgage unaffordable later on.
To be eligible you need to be up to date with your payments. Anyone who's already behind will probably be offered alternative options.
It isn't just homeowners who have bills to pay. The government has announced some measures to help tenants who are worried about making rent during the crisis.
Landlords will now have to serve three months' notice if they want you to move out, instead of two.
The government has also said that if renters are struggling to pay, they should speak to their landlord about putting a rent payment scheme in place.
If you're not sure what to do, either with your mortgage or your finances generally, there are people out there to speak to. Turn to your lender as your first port of call - they will be able to suggest measures to help you cope.
Our team is also on hand for any questions to do with your plan. Get in touch at support@multiply.ai and we'll do our best to help.
","url":"https://multiply.ghost.io/should-i-take-a-mortgage-holiday/","uuid":"ee9e35c0-b424-4a21-bad5-c7b26e45b96b","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e8313a03f48b10038318b46"}},{"node":{"id":"Ghost__Post__5e7dfd37351d5c00442efe63","title":"Building an emergency fund in a pandemic","slug":"building-an-emergency-fund-in-a-pandemic","featured":false,"feature_image":"https://images.unsplash.com/photo-1493836512294-502baa1986e2?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Most of us don't have enough stashed away to weather the tough times, especially one like this.","custom_excerpt":"Most of us don't have enough stashed away to weather the tough times, especially one like this.","created_at_pretty":"27 March, 2020","published_at_pretty":"27 March, 2020","updated_at_pretty":"23 April, 2020","created_at":"2020-03-27T13:18:47.000+00:00","published_at":"2020-03-27T13:24:53.000+00:00","updated_at":"2020-04-23T09:02:17.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"Most of us don't have enough stashed away to weather the tough times, especially\none like this.\n\nBuilding up an emergency fund is a challenge even in good times, but right now\nit's harder still. So a different approach is needed. It's time to try and set\naside whatever cash you can now to help you through the coming weeks and months.\n\nLooking after those pennies has never been more important. So what can you do\nabout it?\n\nGet to grips with your income\nIf your monthly income is likely to change, try to understand how much, and for\nhow long. This will help you figure out the impact it will have on your budget.\nThere are lots of calculators out there, but we have included one here\n[https://www.thesalarycalculator.co.uk/salary.php] to get you started.\n\nIf you can afford to set aside any one-offs or extras, such as bonus or\ncommission payments, it can be a lifeline in troubled times.\n\nBreak open the piggy bank\nMany people have small balances in places like PayPal, piggy-banks, or premium\nbonds. These can all be valuable sources when it comes to adding money to your\nemergency fund; so add it to the pot.\n\nCheck your credit cards\nLet's hope you don't need to use them. But just in case you do, keep a mental\nnote of the credit you have access to. If you have more than one card, use the\none with the lowest interest rate first.\n\nGet tough with your spending habits\nCutting back where you can is always a great idea, and now more than ever. Do\nyou really need all those subscriptions right now? Are you getting the best\ndeals on your utilities and insurance? What about your credit cards, is there an\nopportunity to switch to something cheaper?\n\nThese small savings add up, so go through it with a fine tooth comb. Most of us\nhave areas we can cut back on temporarily, just remember to set aside any\nsavings you make.\n\nReview your investments\nThis is a tough one, as cutting back on pensions and investments is not normally\nadvisable. But extreme times might call for extreme measures.\n\nIf you need to cut back, only do what is necessary to make life easier. Make\nsure you set a reminder to reinstate them when the clouds lift. As with the\nrest, plough any savings you make from the reductions back into your emergency\nfund.\n\nTake a break\nThere is a lot of help out there. Mortgage lenders are obliged to give a 3-month\npayment holiday, and lenders and utility companies also providing payment\nholidays to those that are impacted. The key here is to speak to them if your\npayments are likely to be impacted.\n\nGet help if you need it\nThe government has announced some pretty extraordinary measures to help us\nthrough this pandemic. Check out what support you are entitled to and make sure\nyou are claiming it. Keep your emergency fund topped up with any back payment\nyou get and any residual income.\n\nThen what?\nIt's really tough out there but even a small saving of £250 can significantly\nreduce the risk that a family will miss paying bills.\n\nWhatever you have managed to pull together into your emergency fund will help\ntop up or subsidise your income. It will provide you with a financial cushion to\nsee you through the coming weeks and months, if and when you need it.\n\nAt Multiply, we've made some changes to the financial advice we give, to try and\nhelp our users make the best decisions for them during these challenging times.\nWe will be writing to tell you about those in the coming days. Most importantly\nthrough all of this keep safe, be kind and look after yourself.","html":"Most of us don't have enough stashed away to weather the tough times, especially one like this.
Building up an emergency fund is a challenge even in good times, but right now it's harder still. So a different approach is needed. It's time to try and set aside whatever cash you can now to help you through the coming weeks and months.
Looking after those pennies has never been more important. So what can you do about it?
If your monthly income is likely to change, try to understand how much, and for how long. This will help you figure out the impact it will have on your budget. There are lots of calculators out there, but we have included one here to get you started.
If you can afford to set aside any one-offs or extras, such as bonus or commission payments, it can be a lifeline in troubled times.
Many people have small balances in places like PayPal, piggy-banks, or premium bonds. These can all be valuable sources when it comes to adding money to your emergency fund; so add it to the pot.
Let's hope you don't need to use them. But just in case you do, keep a mental note of the credit you have access to. If you have more than one card, use the one with the lowest interest rate first.
Cutting back where you can is always a great idea, and now more than ever. Do you really need all those subscriptions right now? Are you getting the best deals on your utilities and insurance? What about your credit cards, is there an opportunity to switch to something cheaper?
These small savings add up, so go through it with a fine tooth comb. Most of us have areas we can cut back on temporarily, just remember to set aside any savings you make.
This is a tough one, as cutting back on pensions and investments is not normally advisable. But extreme times might call for extreme measures.
If you need to cut back, only do what is necessary to make life easier. Make sure you set a reminder to reinstate them when the clouds lift. As with the rest, plough any savings you make from the reductions back into your emergency fund.
There is a lot of help out there. Mortgage lenders are obliged to give a 3-month payment holiday, and lenders and utility companies also providing payment holidays to those that are impacted. The key here is to speak to them if your payments are likely to be impacted.
The government has announced some pretty extraordinary measures to help us through this pandemic. Check out what support you are entitled to and make sure you are claiming it. Keep your emergency fund topped up with any back payment you get and any residual income.
It's really tough out there but even a small saving of £250 can significantly reduce the risk that a family will miss paying bills.
Whatever you have managed to pull together into your emergency fund will help top up or subsidise your income. It will provide you with a financial cushion to see you through the coming weeks and months, if and when you need it.
At Multiply, we've made some changes to the financial advice we give, to try and help our users make the best decisions for them during these challenging times. We will be writing to tell you about those in the coming days. Most importantly through all of this keep safe, be kind and look after yourself.
","url":"https://multiply.ghost.io/building-an-emergency-fund-in-a-pandemic/","uuid":"77e57af7-fb1c-4dad-b837-e572be01c9ca","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e7dfd37351d5c00442efe63"}},{"node":{"id":"Ghost__Post__5e7b790abe01e4003782a47d","title":"Remember remember the 5th of...","slug":"remember-remember-the-5th-of","featured":false,"feature_image":"https://images.unsplash.com/photo-1450101499163-c8848c66ca85?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"April.","custom_excerpt":"April.","created_at_pretty":"25 March, 2020","published_at_pretty":"25 March, 2020","updated_at_pretty":"23 April, 2020","created_at":"2020-03-25T15:30:18.000+00:00","published_at":"2020-03-25T15:46:39.000+00:00","updated_at":"2020-04-23T08:59:02.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"April.\n\nNot because it's the celebration of First Contact Day which marks the pivotal\nday in 2063 when humans first made contact with the Vulcans, but because it's\nthe end of the UK tax year. Slightly less exciting for all you trekkies out\nthere, but important nonetheless.\n\nWhat is a tax year?\nThe UK tax year is different from the calendar year. It runs from the 6th April\nto the 5th April in the following year. So for 2019 / 2020 the tax year started\non the 6th April 2019 and finishes on the 5th April 2020.\n\nWhy is it so important?\nIt's important for a whole lot of reasons, especially if you are self employed.\nIt is also the end date on which your annual P60 (a record of the income you\nhave earned and the tax you have paid) is calculated. It is also the the final\nday on which you can make the most of your personal tax allowances.\n\nYour Multiply plan already takes your ISA and pension allowances into account,\nbut just to recap the important ones to know are:\n\n 1. Individual savings accounts (ISAs). Recently we published a handy guide to\n the ISA options out there and your allowances. You can read this here\n [https://multiply-blog.appspot.com/isabout-understanding/]. If you have any\n spare cash lying around (after taking care of your emergency fund\n [https://multiply-blog.appspot.com/rainy-day-funds-for-stormy-times/]) make\n sure you're using your allowances. It's a top tax-efficient way to save.\n 2. Pensions contributions. The government tops up your pension contributions in\n the form of tax relief. But there's a cap. The cap is your gross annual\n income, or £40,000 - whichever is lower. Saving as much as you can into your\n pension makes the most of your income now, and also means you'll have more\n to enjoy after you retire.\n 3. Capital gains. This is the profit you make on selling or disposing of an\n asset, like a second home. It currently stands at £12,000 and is expected to\n rise to £12,300 in the new tax year. It is important to note that all\n individuals have the allowance, and there is scope for transferring assets\n between married partners in order to reduce your tax bill.\n\nSo what now?\nThings are really uncertain out there, and you may be living on your emergency\nfund, but this is about controlling what you can. Looking after your own\nfinancial future has never been more important.\n\nIf you can take some time away from the chaos over the coming days, have a look\nat your allowances and make sure you have made the most of them for the current\nfinancial year.\n\nNot sure where to start? Check your plan. Your plan takes your ISA and pension\nallowances into account, so take your recommendation actions to optimise your\nmoney automatically. Keep it up to date and you will always have unbiased,\nsuitable advice at your fingertips.","html":"April.
Not because it's the celebration of First Contact Day which marks the pivotal day in 2063 when humans first made contact with the Vulcans, but because it's the end of the UK tax year. Slightly less exciting for all you trekkies out there, but important nonetheless.
The UK tax year is different from the calendar year. It runs from the 6th April to the 5th April in the following year. So for 2019 / 2020 the tax year started on the 6th April 2019 and finishes on the 5th April 2020.
It's important for a whole lot of reasons, especially if you are self employed. It is also the end date on which your annual P60 (a record of the income you have earned and the tax you have paid) is calculated. It is also the the final day on which you can make the most of your personal tax allowances.
Your Multiply plan already takes your ISA and pension allowances into account, but just to recap the important ones to know are:
Things are really uncertain out there, and you may be living on your emergency fund, but this is about controlling what you can. Looking after your own financial future has never been more important.
If you can take some time away from the chaos over the coming days, have a look at your allowances and make sure you have made the most of them for the current financial year.
Not sure where to start? Check your plan. Your plan takes your ISA and pension allowances into account, so take your recommendation actions to optimise your money automatically. Keep it up to date and you will always have unbiased, suitable advice at your fingertips.
","url":"https://multiply.ghost.io/remember-remember-the-5th-of/","uuid":"1bf30169-529e-42e1-9539-5726b35d3734","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e7b790abe01e4003782a47d"}},{"node":{"id":"Ghost__Post__5e71ed7041ae980038602462","title":"Rainy day funds for stormy times","slug":"rainy-day-funds-for-stormy-times","featured":false,"feature_image":"https://images.unsplash.com/photo-1484889176133-94079a66d71a?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"Stuff happens when you least expect it to and we all need to be prepared.","custom_excerpt":"Stuff happens when you least expect it to and we all need to be prepared.","created_at_pretty":"18 March, 2020","published_at_pretty":"18 March, 2020","updated_at_pretty":"23 April, 2020","created_at":"2020-03-18T09:44:16.000+00:00","published_at":"2020-03-18T09:52:49.000+00:00","updated_at":"2020-04-23T08:59:41.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Jayne Gayer","slug":"jayne","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},"tags":[{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"},{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"}],"plaintext":"There are not enough words, analysis, opinions or memes to describe the current\nsituation. As we sit and wonder what's going on, and try and make sense of it\nall there are some things we can all learn from the Covid-19 pandemic.\n\nStuff happens when you least expect it to and we all need to be prepared.\n\nIntroducing: your emergency fund\nAn emergency fund is there to give you access to enough money to see you through\n3-6 months if you stop getting paid.\n\nWe are currently experiencing unprecedented times. Sadly many will see their\nincome stopped over the coming weeks and months. But it's not just Covid-19 that\nwill cause this to happen. Redundancy and taking time out to care for a loved\none are far more usual. All of a sudden anyone of us can find ourselves with\nbills to pay and no way in which we can pay them.\n\nSo what should you do about it?\nStart saving. Put money aside every month to build up your own emergency fund,\nrainy day fund, s**t happens fund, or whatever else you want to call it.\n\nIn total you should stash away enough cash to be able to survive without income\nfor three months.\n\nWe typically advise that you keep one months income in your current account and\nan additional two months in a savings account.\n\nYour plan will show you the specific accounts we recommend for you, and the\namounts to put into each.\n\nIs it too late?\nThe impact of Covid-19 is expected to last a long time. There are plenty of\nopinions out there, but the truth of the matter is that these are uncharted\nwaters and there is no magic ball that will tell us what happens next.\n\nBut, it's never too late to start getting into good financial habits so saving\nnow is still a good idea.\n\nSocial distancing is no fun, but we can all take the opportunity to learn new\nthings, form better habits, and be kind to ourselves and each other. We're\nhoping you're keeping safe and looking after yourself.","html":"There are not enough words, analysis, opinions or memes to describe the current situation. As we sit and wonder what's going on, and try and make sense of it all there are some things we can all learn from the Covid-19 pandemic.
Stuff happens when you least expect it to and we all need to be prepared.
An emergency fund is there to give you access to enough money to see you through 3-6 months if you stop getting paid.
We are currently experiencing unprecedented times. Sadly many will see their income stopped over the coming weeks and months. But it's not just Covid-19 that will cause this to happen. Redundancy and taking time out to care for a loved one are far more usual. All of a sudden anyone of us can find ourselves with bills to pay and no way in which we can pay them.
Start saving. Put money aside every month to build up your own emergency fund, rainy day fund, s**t happens fund, or whatever else you want to call it.
In total you should stash away enough cash to be able to survive without income for three months.
We typically advise that you keep one months income in your current account and an additional two months in a savings account.
Your plan will show you the specific accounts we recommend for you, and the amounts to put into each.
The impact of Covid-19 is expected to last a long time. There are plenty of opinions out there, but the truth of the matter is that these are uncharted waters and there is no magic ball that will tell us what happens next.
But, it's never too late to start getting into good financial habits so saving now is still a good idea.
Social distancing is no fun, but we can all take the opportunity to learn new things, form better habits, and be kind to ourselves and each other. We're hoping you're keeping safe and looking after yourself.
","url":"https://multiply.ghost.io/rainy-day-funds-for-stormy-times/","uuid":"b1b2b795-d8df-4df6-ba6d-27ad1c072661","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e71ed7041ae980038602462"}},{"node":{"id":"Ghost__Post__5e6f9c17a5acdb0038bd322c","title":"Are your finances coronavirus-ready?","slug":"are-your-finances-corona-ready","featured":false,"feature_image":"https://images.unsplash.com/photo-1468254095679-bbcba94a7066?ixlib=rb-1.2.1&q=80&fm=jpg&crop=entropy&cs=tinysrgb&w=2000&fit=max&ixid=eyJhcHBfaWQiOjExNzczfQ","excerpt":"How to increase your resilience in these challenging times.","custom_excerpt":"How to increase your resilience in these challenging times.","created_at_pretty":"16 March, 2020","published_at_pretty":"16 March, 2020","updated_at_pretty":"07 April, 2020","created_at":"2020-03-16T15:32:39.000+00:00","published_at":"2020-03-16T16:30:43.000+00:00","updated_at":"2020-04-07T12:39:08.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"The coronavirus pandemic isn’t just a big public health issue. It’s also the\nbiggest thing to hit the world’s economy since the financial crash in 2008.\n\nThe virus, and countries’ attempts to contain and delay it, have big knock-on\nimpacts that are likely to affect everyone's personal finances sooner or later.\nBut there are steps you can take to increase your resilience.\n\nBuild emergency savings\nYour emergency fund recommendation is always right near the top of your personal\nfinancial plan, and there’s a very good reason for that. However rainy the day\ngets, it’s good to have a cash cushion to fall back on.\n\nYou should aim to have enough saved up to tide you over for three to six months\nif you didn’t have any other income.\n\nIf you’ve not yet started building your emergency fund, your first step is to\nget cracking as soon as you can. Your emergency fund should always live in\neasy-access accounts; follow your plan to see which accounts we recommend for\nyou.\n\nGet covered \nYou’re entitled to sick pay if you’re off work, but the statutory payment is\njust £94.25 a week so it doesn’t go very far. There are some workers who aren’t\ncovered by statutory sick pay at all.\n\nOne option is Accident, Sickness and Unemployment (ASU) insurance, which is a\ntype of income protection designed for short term illness, like coronavirus. ASU\nkicks in if you can’t work, and pays you a proportion of your income for up to\n12 months. \n\nAlternatively you can adopt a longer term plan, using your emergency fund to get\nyou through the short term with an income protection policy in place to cover\nyou for any longer term needs. \n\nCheck your plan to find out how our longer term approach would look for you.\n\nLook at life insurance\nThis is about to get heavy for a moment. Although the mortality rate of COVID-19\nis low, this isn’t a bad time to pause and reflect on what you’d leave behind if\nthe worst was to happen.\n\nAnyone with a mortgage, or who has a partner or children, will see a life\ninsurance recommendation in their plan. This is designed to make sure no one has\nto struggle with payments that you’re not around to make.\n\nEveryone also has a recommendation to make a will and a Lasting Power of\nAttorney. It’s never a bad idea just to get these sorted.\n\nKeep a cool head\nFor those who have money invested in stocks and shares: the best thing you can\ndo is take a deep breath and stay focused on your long term goals.\n\nAs long as you have enough money in cash to cover your short term essentials,\nthere’s no need to panic. You should be able to hold for the long term and wait\nfor the markets to recover.\n\nA properly diversified portfolio, which is appropriate for your risk level,\nshould also help to protect the value of your investments in a downturn.\n\nTake a look at this chart showing the last few weeks.\n\nThe green line is one of the funds recommended by Multiply, containing a mix of\nequities and government and corporate bonds from different countries. The red\nline is a typical fund invested only in UK shares.\n\nSource: Trustnet.com\n\nIf you see an investment recommendation in your plan, it will always advise you\nto invest an affordable amount into funds which suit your needs.\n\nWhat to do if you’re not ready\nEverything’s happening very fast. But there are steps you can take if you’re\nfeeling unprepared. \n\nFirst, review your budget to see if you can cut back on spending. If you have\nincome at the moment, save as much as you can.\n\nThe government has already announced some financial assistance for people\naffected by the epidemic. Keep yourself informed of your rights as the situation\ndevelops.\n\nIf you are already affected, make sure you claim for any state benefits you\nmight be due, such as sick pay.\n\nIf you have a mortgage and you’re worried about making payments, you can speak\nto your bank about the possibility of a mortgage holiday.\n\nIf you’re renting, speak to your landlord as the government has also announced\nthat it will legislate to make sure people are protected from eviction.\n\nKeep well\nFrom all of us at Multiply (currently going slightly stir-crazy working from\nhome) we hope you're keeping well.\n\nWe hope you find your plan useful to help you build resilience in these\nchallenging times. You can give us a shout at support@multiply.ai if you have\nany questions.","html":"The coronavirus pandemic isn’t just a big public health issue. It’s also the biggest thing to hit the world’s economy since the financial crash in 2008.
The virus, and countries’ attempts to contain and delay it, have big knock-on impacts that are likely to affect everyone's personal finances sooner or later. But there are steps you can take to increase your resilience.
Your emergency fund recommendation is always right near the top of your personal financial plan, and there’s a very good reason for that. However rainy the day gets, it’s good to have a cash cushion to fall back on.
You should aim to have enough saved up to tide you over for three to six months if you didn’t have any other income.
If you’ve not yet started building your emergency fund, your first step is to get cracking as soon as you can. Your emergency fund should always live in easy-access accounts; follow your plan to see which accounts we recommend for you.
You’re entitled to sick pay if you’re off work, but the statutory payment is just £94.25 a week so it doesn’t go very far. There are some workers who aren’t covered by statutory sick pay at all.
One option is Accident, Sickness and Unemployment (ASU) insurance, which is a type of income protection designed for short term illness, like coronavirus. ASU kicks in if you can’t work, and pays you a proportion of your income for up to 12 months.
Alternatively you can adopt a longer term plan, using your emergency fund to get you through the short term with an income protection policy in place to cover you for any longer term needs.
Check your plan to find out how our longer term approach would look for you.
This is about to get heavy for a moment. Although the mortality rate of COVID-19 is low, this isn’t a bad time to pause and reflect on what you’d leave behind if the worst was to happen.
Anyone with a mortgage, or who has a partner or children, will see a life insurance recommendation in their plan. This is designed to make sure no one has to struggle with payments that you’re not around to make.
Everyone also has a recommendation to make a will and a Lasting Power of Attorney. It’s never a bad idea just to get these sorted.
For those who have money invested in stocks and shares: the best thing you can do is take a deep breath and stay focused on your long term goals.
As long as you have enough money in cash to cover your short term essentials, there’s no need to panic. You should be able to hold for the long term and wait for the markets to recover.
A properly diversified portfolio, which is appropriate for your risk level, should also help to protect the value of your investments in a downturn.
Take a look at this chart showing the last few weeks.
The green line is one of the funds recommended by Multiply, containing a mix of equities and government and corporate bonds from different countries. The red line is a typical fund invested only in UK shares.
Source: Trustnet.com
If you see an investment recommendation in your plan, it will always advise you to invest an affordable amount into funds which suit your needs.
Everything’s happening very fast. But there are steps you can take if you’re feeling unprepared.
First, review your budget to see if you can cut back on spending. If you have income at the moment, save as much as you can.
The government has already announced some financial assistance for people affected by the epidemic. Keep yourself informed of your rights as the situation develops.
If you are already affected, make sure you claim for any state benefits you might be due, such as sick pay.
If you have a mortgage and you’re worried about making payments, you can speak to your bank about the possibility of a mortgage holiday.
If you’re renting, speak to your landlord as the government has also announced that it will legislate to make sure people are protected from eviction.
From all of us at Multiply (currently going slightly stir-crazy working from home) we hope you're keeping well.
We hope you find your plan useful to help you build resilience in these challenging times. You can give us a shout at support@multiply.ai if you have any questions.
","url":"https://multiply.ghost.io/are-your-finances-corona-ready/","uuid":"2cebce38-302d-4f2f-82d2-cee95afdc98a","page":null,"codeinjection_foot":null,"codeinjection_head":null,"codeinjection_styles":null,"comment_id":"5e6f9c17a5acdb0038bd322c"}},{"node":{"id":"Ghost__Post__5e6b9797dcea570038ab6b48","title":"What the Budget means for your money","slug":"what-the-budget-means-for-your-money","featured":false,"feature_image":"https://multiply.ghost.io/content/images/2020/03/rishi-sunak-1.jpg","excerpt":"Let's talk a look at what the government's got in store","custom_excerpt":"Let's talk a look at what the government's got in store","created_at_pretty":"13 March, 2020","published_at_pretty":"13 March, 2020","updated_at_pretty":"13 March, 2020","created_at":"2020-03-13T14:24:23.000+00:00","published_at":"2020-03-13T14:27:22.000+00:00","updated_at":"2020-03-13T14:27:21.000+00:00","meta_title":null,"meta_description":null,"og_description":null,"og_image":null,"og_title":null,"twitter_description":null,"twitter_image":null,"twitter_title":null,"authors":[{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null}],"primary_author":{"name":"Annie Mellor","slug":"annie","bio":null,"profile_image":null,"twitter":null,"facebook":null,"website":null},"primary_tag":null,"tags":[{"name":"#blog","slug":"hash-blog","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"internal"},{"name":"tips-from-team","slug":"tips-from-team","description":null,"feature_image":null,"meta_description":null,"meta_title":null,"visibility":"public"}],"plaintext":"On Wednesday, chancellor Rishi Sunak unveiled this government's first Budget.\nThe Budget is where the government lays out its plans for spending, tax, and\nborrowing for the year ahead.\n\nYou'd be forgiven for thinking you'd fallen asleep and woken up in a parallel\nuniverse with Labour at the helm. Featuring some big spending plans that will\nrequire plenty of government borrowing, this was not a typical Budget for a\nConservative government.\n\nThe Conservative party made plenty of promises in their election manifesto last\nyear (even before coronavirus hit) and now they're spending to deliver on those\npromises. There's a £30 billion fiscal stimulus to mitigate against the impacts\nof coronavirus and £100 billion increase in public service spending.\n\nJournalists and economists are busy consuming the detail buried in the 125 page\ndocument. We thought we'd focus on the key points from the budget that affect\nyou and your plan, whether you're looking to buy a home, grow your money, or\njust get on top of your finances.\n\nInterest rate cut of 0.5% to 0.25%\nWe know, this wasn't technically part of the budget but it is part of a much\nwider response as alluded to on page 37 of the budget. In response to supporting\nthose with COVID-19 they say 'HM Treasury will continue to work closely with the\nBank of England to coordinate the response of the UK authorities to ensure it is\nas effective as possible'.\n\nThis is great news for home buyers as it may reduce the cost of your mortgage,\nalthough those changes sometimes take a while to feed through. It's not so good\nfor those with savings and investments as the returns are likely to be lower.\n\nEven though a large fiscal stimulus and a rate cut should have shored up the\nstock markets, the wider concerns around a global recession have sent them\nspiralling down again today. Don't forget though, investing is a marathon not a\nsprint and performance should always be measured over the longer term.\n\nAnnual National Insurance saving of £104\nWith a typical employee saving around £104 and a typical self-employed person\naround £78 in 2020-21 this is a winner for everyone.\n\nYou could go out and splash out on a dinner for two, or some gadget you have had\nyou eye on for a while, or you can just let it be eaten up by day to day life.\nAlternatively, you could invest your £8.65 away each month and watch that money\ngrow.\n\nJunior ISAs and Child Trust Fund allowance increased to £9,000\nThis has more than doubled, which is a massive increase and great for anyone who\nwants a tax efficient way to invest for their children's future.\n\n£9.5 billion for the Affordable Homes Programme\nMore good news for home buyers, this extra investment is aimed at helping people\nget onto the housing ladder. The funding will support the creation of more homes\nacross the country and expectations are that it will increase availability in\nthe shared ownership space.\n\nWhat next?\nThere is obviously way more to the Budget than savings on NICs, a doubling of\nthe Junior ISA allowance and a cash injection for the affordable homes\nprogramme.\n\nIt detailed a spending spree aimed at improving the economic outlook for the UK.\nInfrastructure, R&D, the environment and the NHS all did well, but they weren't\nalone. For those wanting to read the full report, we have included the link here\n[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/871799/Budget_2020_Web_Accessible_Complete.pdf]\n.\n\nThere is debate over whether or not this truly delivers 'levelling up' along\nwith a whole host of other issues. Most of us are back seat chancellors with\nstrong opinions so we suspect those debates will rage for a while yet.\n\nIf the personal finance landscape wasn't confusing before, it certainly is now.\nThere is so much information out there on what, when and how to invest, how to\nbuy a home, and the best ways to save.\n\nWe recommend checking in with your Multiply plan. We do all the hard work under\nthe watchful eye of the regulators so you can rest assured that you money is\nworking for you.","html":"On Wednesday, chancellor Rishi Sunak unveiled this government's first Budget. The Budget is where the government lays out its plans for spending, tax, and borrowing for the year ahead.
You'd be forgiven for thinking you'd fallen asleep and woken up in a parallel universe with Labour at the helm. Featuring some big spending plans that will require plenty of government borrowing, this was not a typical Budget for a Conservative government.
The Conservative party made plenty of promises in their election manifesto last year (even before coronavirus hit) and now they're spending to deliver on those promises. There's a £30 billion fiscal stimulus to mitigate against the impacts of coronavirus and £100 billion increase in public service spending.
Journalists and economists are busy consuming the detail buried in the 125 page document. We thought we'd focus on the key points from the budget that affect you and your plan, whether you're looking to buy a home, grow your money, or just get on top of your finances.
We know, this wasn't technically part of the budget but it is part of a much wider response as alluded to on page 37 of the budget. In response to supporting those with COVID-19 they say 'HM Treasury will continue to work closely with the Bank of England to coordinate the response of the UK authorities to ensure it is as effective as possible'.
This is great news for home buyers as it may reduce the cost of your mortgage, although those changes sometimes take a while to feed through. It's not so good for those with savings and investments as the returns are likely to be lower.
Even though a large fiscal stimulus and a rate cut should have shored up the stock markets, the wider concerns around a global recession have sent them spiralling down again today. Don't forget though, investing is a marathon not a sprint and performance should always be measured over the longer term.
With a typical employee saving around £104 and a typical self-employed person around £78 in 2020-21 this is a winner for everyone.
You could go out and splash out on a dinner for two, or some gadget you have had you eye on for a while, or you can just let it be eaten up by day to day life. Alternatively, you could invest your £8.65 away each month and watch that money grow.
This has more than doubled, which is a massive increase and great for anyone who wants a tax efficient way to invest for their children's future.
More good news for home buyers, this extra investment is aimed at helping people get onto the housing ladder. The funding will support the creation of more homes across the country and expectations are that it will increase availability in the shared ownership space.
There is obviously way more to the Budget than savings on NICs, a doubling of the Junior ISA allowance and a cash injection for the affordable homes programme.
It detailed a spending spree aimed at improving the economic outlook for the UK. Infrastructure, R&D, the environment and the NHS all did well, but they weren't alone. For those wanting to read the full report, we have included the link here.
There is debate over whether or not this truly delivers 'levelling up' along with a whole host of other issues. Most of us are back seat chancellors with strong opinions so we suspect those debates will rage for a while yet.
If the personal finance landscape wasn't confusing before, it certainly is now. There is so much information out there on what, when and how to invest, how to buy a home, and the best ways to save.
We recommend checking in with your Multiply plan. We do all the hard work under the watchful eye of the regulators so you can rest assured that you money is working for you.
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