ESAs draw consumers’ attention to how rises in inflation and interest rates might affect their finances

The ESAs have released an interactive factsheet aimed at helping consumers understand the potential impact of rising inflation and interest rates on their finances.
The factsheet covers various financial products and services such as loans, savings, investments, insurance, and pensions, providing consumers with key points to consider.
The factsheet emphasizes important factors that consumers should keep in mind:
Firstly, it advises consumers to have a clear understanding of their spending habits and to track their expenses. By knowing how much they are spending and on what, consumers can better manage their finances.
Secondly, consumers are encouraged to prioritize their spending and create a budget plan that aligns with their financial goals. This involves identifying essential expenses and finding ways to reduce costs if necessary.
Paying attention to different fees is another crucial aspect highlighted in the factsheet. Many financial products come with associated fees, and consumers are advised to review these fees to determine if they can be reduced or avoided.
Seeking professional advice is also emphasized, as consulting with a financial advisor can help individuals adapt their financial plans and make informed decisions based on their circumstances.
Finally, the factsheet draws attention to the potential impact of central bank interest rates on individuals.