Financial wellbeing

The cost-of-living crisis, coupled with food inflation and rising energy bills is a financial juggling act. And, when you add in the extra pressures of Christmas shopping it’s a juggling act whilst walking a tightrope.

During these challenging times, looking after your financial wellbeing will be key in helping to contribute positively to your mental wellbeing, reducing the likelihood of stress and anxiety.

Hospitality Action has put together a variety of tips, insightful advice and places to go for further support.

7 super-saving steps to financial wellbeing


1. Create a monthly budget

It may sound obvious, but mapping out all the money you receive and what you spend it on will create some clarity on how much you spend each month. Remember to include any debts too; as once you identify the areas you can cut down on, you can use any spare cash to pay off those essential bills. PayPlan’s monthly budget planner is a good place to start.

2. Cancel unnecessary subscriptions

As well as your monthly household bills and utilities, you may find yourself also paying for finance on cars, gym subscriptions and streaming services. Now is the time to sit down and see whether all these services are still needed and if you are using them on a regular basis.

3. Check what you’re entitled to

Stay ahead of the curve and research the types of benefits and support you could be entitled to. Support varies across the UK and from each local authority so it may be worth your while! Start by visiting the Government’s Help for Households website:

4. Save energy and the pennies

There are a number of small changes you can make to save money on your energy bills each month. It will benefit you in the long term and it could save an average household £174 per annum according to the Energy Saving Trust:

  • Turn the thermostat down by one degree (the Energy Saving Trust recommends heating your home between 18 to 21 degrees Celsius)
  • Switch off standby
  • Turn the lights off when you leave a room
  • Wash your clothes at a cooler temperature
  • Fully load your dishwasher
  • Carry out one less wash a week in the washing machine or dishwasher
  • Avoid the tumble dryer
  • Spend less time in the shower
  • Swap your bath for a shower once a week
  • Put lids on saucepans when cooking
  • Make your taps more efficient

5. Prioritise your debts

It can be daunting to take this step, but there is always a helping hand to guide you. Seek free debt advice from an FCA-approved organisation or contact Hospitality Action on their 24/7 helpline on: 0808 802 0282.

6. Be aware of fraudsters and scammers

Even during these difficult times, fraudsters are still preying on people’s hard-earned money. This may be via scam websites and phishing emails, by phone or text, and even on your doorstep!

If something doesn’t look or sound right then it probably isn’t. It’s important to take the time to examine and analyse the situation before jumping into anything, in terms of  scam websites and phishing emails look out for:

  1. Similar URLs to genuine companies
  2. The layout of the email
  3. Incorrect spelling and grammar.

To find out more on the latest types of scams and to get help with them, visit the Citizens Advice’s scam page

7. Avoid loan sharks at all cost

Having problems with your finances can make you feel vulnerable and this vulnerability can push some towards borrowing money from Loan Sharks. This form of lending money is illegal and dangerous not just because of the large sums of money lent out with extortionate interest rates, but also the psychological toll it can have on its victims. This leads to already vulnerable people feeling trapped and helpless.

For more information on Loan Sharks and how to get help with them, please visit Hospitality Action’s advice page.

Managing debt

As the cost-of-living crisis escalates, pay rates in hospitality are struggling to keep up the pace. Unfortunately, accumulating debt is a slippery slope that’s all too easy to fall into. But how can you spot the warning signs of debt and what can you do to get out of it?

Hospitality Action has put together a range of tools to help you spot the early signs of debt, diagnose your debt and start you on the road to recovery. It includes information on

  • Debt consolidation loans
  • Debt management plans (DMP)
  • Full and final offers
  • Individual voluntary arrangements (IVA)
  • Trust deeds
  • Bankruptcy

And remember… Only use payment holidays if you need to…

Payment and mortgage holidays are good for people who were not struggling with multiple debts before the Cost-of-Living Crisis but now need to conserve their finances. It’s essential to check with a provider how this break will affect future payments before opting to do this.

Credit cards and loans

Insert, swipe, or tap – paying by card is the quick, easy and convenient way to access money. But did you know there are different card types, all with their own set of rules.

It’s useful to know the differences between the different card types and the pros and cons of each before slipping into debt.

What is a credit card?

In order to get a credit card, you have to apply for one, as they are a form of borrowing. Credit cards charge interest for any money borrowed and high borrowing will mean high interest charges. The credit card provider will expect a minimum repayment each month, but this amount can be quite low. Unless you pay off your balance completely each month, interest charges will build up over time and the bill could take a long time to clear.

Using a credit card for withdrawing cash (called a ‘cash advance’) is different to making a payment on your credit card. Doing this may lead to fees, plus a higher interest rate, adding to your credit card debt.


Late credit card payments and your credit rating

If you are late making credit card debt repayments, it will likely have a negative effect on your credit rating. A low credit rating will make it harder to apply for a mortgage, loan or credit card in the future and you may be charged an extra high interest rate or be completely declined.

If you’re struggling with credit card debt, seek advice and help from Hospitality Action’s credit card debt page or call: 0808 802 0282 (24/7)


What is a debit card?

  • Debit cards are issued by your bank and are linked to your bank account so when you use them, the money is taken straight out of your account. There is normally no charge for spending or withdrawing cash.
  • If you don’t have enough money in your account, or an arranged overdraft to cover a payment, your card may be declined and you could be charged by your bank.


What is a store card?

  • Store cards work in a similar way to credit cards because they’re a form of borrowing and have to be applied for
  • They’re issued by retailers for you to use in their own outlets
  • But be careful, a lot of store cards will have introductory offers that sound like a good deal, but once the introductory offer is over, interest rates might spike up
  • The interest rates for store cards can be a lot higher than credit cards, which can make it an even more expensive to pay off then debt on credit cards


Buy now, pay later (BNPL)

  • These allow customers to delay payment for an item with no interest or changes
  • They’re speedy and convenient and increasingly popular with people under 30
  • However, many do not realise they are taking on debt or that there could be charges for late payments


Did you know…

More than a fifth of households in the UK rent from private landlords and most renters are on assured short-hold tenancy agreements.


  • When asking for more time to pay your rent, explain the situation
  • Pay off rent arrears before any other non-urgent debts
  • Keep a written record of what you have offered your landlord
  • Get advice quickly from a trusted organisation such as Citizens Advice


  • Leave your landlord or letting agent in the dark if you’re struggling to pay your rent
  • Offer more than you can realistically afford – you could make your situation worse
  • Offer to pay your missed payments in one lump sum – ask to pay in instalments


Some banks and building societies did allow borrowers to defer mortgage and loan payments during the Covid-19 pandemic and it may be possible currently, depending on your bank or building society to take a mortgage payment holiday. However, do remember, they increase the total amount that you owe – it’s not free money.

For more help and advice on this topic, visit Hospitality Action’s rent and mortgages page.

There’s no denying that there are some difficult months ahead, so it’s really important that every household is claiming the support it needs from bills, benefits, rebates and more.

Hospitality Action’s Cost of Living Crisis page covers:

  • Electricity and water bills
  • Low-income households
  • Benefits
  • Pension credit
  • Council tax
  • Grants and schemes
  • Food banks

Additional help from local councils and from governments across the UK are also available. So, if you’re worried about your finances, get the help and support that you need today.

If you’re struggling and wish to seek help or advice please contact our dedicated helpline on

 0808 802 0282

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