The cost of living crisis is starting to hit households across the UK – with higher prices and bills to come.
The figures revealed that the consumer price index (CPI) measure of inflation stood at 11.1% in October, hitting a 41-year high from 10.1% the previous month.
The jump was driven by higher energy bills and more expensive food, with essentials such as milk and pasta jumping in price.
In a separate report based on the data, the Office for National Statistics (ONS) said the increases were hitting the poorest in society particularly hard.
The poorest 10% of households were hit by a 12.5% increase in their cost of living for the month, as those with less money spent “a greater proportion of their expenses” on energy and food compared to wealthier households.
Thursday’s autumn statement is also set to hit households hard with further tax hikes, with Chancellor Jeremy Hunt set to trigger tax hikes – including council tax – and spending cuts to fill a gap. black hole in the country’s finances.
Since people need to spend more on basic foods and energy during the cold winter months, it will be easy for many to pay more than they have, finding themselves overdrawn in the process. .
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Once overdrawn, costly interest kicks in, which means the debt will quickly accumulate if it isn’t paid.
In a bid to help struggling Britons, financial expert Martin Lewis has recommended which bank accounts to choose for those struggling to make ends meet.
First direct 1st account many offers a £250 overdraft at 0%. Lewis recommends using his eligibility checker first because overdraft is not guaranteed.
National Flex Direct also offers 0% overdraft and has an overdraft limit of up to £2,750, depending on your credit score.
Starling Bank doesn’t offer 0% overdraft but has a low rate and no fees for going over your limit, Lewis said. Your overdraft limit, which depends on your credit score, can be monitored in the app, while you can also set up notifications if you’re close to being overdrawn.
Lewis said it’s important to use the time in your agreed overdraft limit to pay down debt and plan how to cut costs over the long term.
He also warned that high interest rates will kick in after the agreed overdraft period or if you go over the agreed limit.