I was in Tesco to pick up a few things this Sunday and in the middle of picking some snacks for later, my attention was drawn to a hubbub at the end of the aisle.

Lots of people, all waiting, without a semblance of a queue, for the arrival of the day’s wave of discounted, sell by to-day food to come out.

In due course it did, and there then followed a mild and polite scramble as people picked up the bargains.

Listening closely…

Now I am not a stranger to the discount aisle. In fact, it is a great place to pick up a good food bargain, especially ones to pop in the freezer for later.

Now, we have all noticed the cost of living increase in the last couple of months, not least with grocery expenses, but this was something I had not seen before… at least not in these normally reasonably comfortable surroundings.

My take away, the cost of living is clearly starting to bite, and in new parts of the population too.

During the preparation for our recent audience with Credit Unions, I heard similar comments too. They had seen similar developments.

Customers who were previously financially stretched, are still financially stretched. They are used to budgeting and finding savings and there is some support available to help with getting by.

… for a new profile

However, as this latest cost of living crisis bites, they are also starting to see a new profile.

Customers a year ago who were managing, are now also having to absorb energy and food cost increases. They have never had to budget like this before, are not used to it, struggling and starting to look for help… it is something new and a surprise for many.

In the risk profile population graph, it is like we are all taking a step to the left, increasing in risk profile, away from prime and to be ‘riskier’… it affects all of us differently and is a creeping change, gradually enveloping more and more of us as prices filter through.

With reports that arrears levels still not spiking, it is likely the impact of the cost of living crisis will not hit us with a bang as much as a slow-creeping fog… but, if you look closely the signs are already there and starting to be seen.

... & help with debt advice

In this budgeting and advice are going to be needed more than ever, which is clearly going to put more pressure on the debt advice sector… in the news this week, with the announcement of the MaPs contracts.

With the debt advice award not including a couple of the largest free debt advice providers, who handle a lot of the existing volume, it was a bit of a surprise. It will be interesting to see how this plays out… this could precipitate a big change.

With support for customers and help for those in need going to be more important than ever… an already delicate balance between customers, debt advice providers and creditors will for sure need to be handled with care… one to watch closely the next couple of weeks (and no doubt more to come on this topic too).

Have a good week everyone.

News this week has of course been dominated by the Queen, sadly passing away, now succeeded by King Charles.

My first thoughts were, of course with the family, it is no doubt a difficult time for them.
My second thought was how to avoid the full force of the blizzard of news seemingly on every TV channel, newspaper, radio interview, and all across social media… in the UK it has been relentless.

For some, this coverage has been overwhelming, for others, perhaps reminding them of their own experiences of loss, difficult, whilst those remaining simply a poignant marker of a key point in history… it is though without doubt change and a change of an era.

For me, times like this also bring into stark contrast that, no matter who we are, our time on earth is limited and the wind of change is constant.

This is a fact I often find easier to avoid than confront. Sticking my head in the sand, and creating a routine that allows everything to appear unchanging is in fact incredibly comforting… until it changes, when it then can leave us even more unprepared.

And, if we look at the world around us over the last few years, change is afoot. Even looking at the week before all this happened it was the case.. a focus on the cost of energy, its economic impact and announcement of government support… potentially huge changes and impacts for many.

We may be distracted for now, but this change has still not gone away… and it is one we need to stay prepared for too… it will return.

So as the next 7-10 days roll by it is worth observing events closely, thinking what can we learn, maybe reflecting on the Queen’s life and the organization of final arrangements…

• Playing a clear role with dedication… working towards a higher purpose
• Making the most of the time we have… to get things done
• Thinking ahead for future transition and change… having a plan
• Practicing and preparing… making the plan happen

Certainly using this event as inspiration, sounds better than canceling everything just to watch it all unfold on TV…

… and having a solid plan, with actions, will hopefully leave us better prepared to handle the wind of change that is sure to return… and return again it will… too soon most likely.

My motto for the week… “don’t think like an Emu”…

Have a good week everyone…