The £ 21bn government package to help families cope with rising energy bills, released on Thursday by Chancellor Rishi Sunak, has received widespread approval. But it will not bring instant financial aid, especially to many retirees who are counting on a state pension and those struggling with low incomes. Most measures, such as a £ 400 discount on electricity bills and one-off payments (£ 300) to pensioners ’families, will take effect no earlier this autumn. It is therefore very important that you stay in the first place, identifying ways to save money. Here are seven steps you can take NOW to cut your spending – without becoming a hermit and without giving up some of life’s pleasures such as eating or watching a movie.
1 WATCH WHAT TO BLOCK CHEAP MORTGAGE RATE
Interest rates are only going one way this year and next – and it’s growing. So, if you have a home loan whose interest rate is variable, it’s time to re-mortgage the deal where the rate is fixed. The faster the better, I say.
By correcting, you are blocking probably some of your biggest monthly home expenses, which will give you financial confidence in an uncertain world.
The fixed rate you provide will depend on the amount of equity in your home. The more you have, the better the bet. It will also depend on how long you want to fix.
It’s time to reschedule the deal where the rate is fixed. The faster the better, I say.
For example, someone repaying a home loan of £ 150,000 at a variable rate will pay around 4.34 per cent – resulting in a total monthly payment of just over £ 820. With the average price of a five-year fixed-rate deal, the monthly payment will drop to just under £ 670 – an annual saving of more than £ 1,800.
For those who have an existing fixed rate home loan where there is less than six months left before the deal, you can book a new fixed rate now to start when the current one expires. A smart move, given that mortgage prices are rising all the time.
Brokers like L&C Mortgages (landc.co.uk) will do the hard work for you.
2 SCOUR BANK ACCOUNTS FOR UNUSED SERVICES
Cancel these direct debit funds for services and products that you no longer use. Households spend an average of £ 500 a year on subscriptions. So if you have TV broadcasting services, gym memberships, magazines, or food subscription services that you misuse, now is the time to give them up – or make a note to give them up before upgrading.
So review your bank statements and credit card accounts to remind yourself of everything you pay for. Make sure you unsubscribe from your provider before canceling any direct debit funds, otherwise this may be considered a default payment and worsen your credit rating.
3 SELL YOUR TREASURE BOLDLY
The average family has £ 400 of unused rubbish lying around houses or sitting in a vacant room or attic. Source of finished income.
Online auction websites, such as eBay, provide the market with just about anything.
Selling your unused things can give them new life and extra money
Do not be greedy for the prices you set and always include details of damage or malfunctions. For eBay you don’t have to pay a listing fee, but you usually pay 12.8% of the final cost, including postage, plus 30 pence.
4 REDUCE YOUR EXPENDITURE
Putting your foot firmly on the accelerator is a caustic gas. But smooth driving in high gear while maintaining speed can reduce your fuel bill by 25 per cent, saving £ 318 a year on petrol or £ 420 on diesel.
You can also reduce fuel costs by making sure your tires are under the right pressure by turning off the air conditioning and losing excess weight by lowering the trunk from things you don’t need to carry around.
Download the PetrolPrices mobile app to help you find the cheapest stations where you can refuel. This can save £ 10 on the cost of a full tank.
Supermarkets tend to offer the lowest prices, and highway maintenance stations are the most expensive, so avoid them like the plague.
5 HUNTING HUNTING ON THE SUPERMARKET
When buying food, change the premium brand goods to cheaper, own brands. They are often made by the same manufacturers, but can cost up to 50 percent cheaper. Sometimes your own brands are placed on the bottom shelves and can be easily missed.
Take advantage of any vouchers that retailers offer you as a regular shopper, though you’ll probably have to download the store’s app to reap the benefits.
Loyalty cards from Tesco, Sainsbury’s and Boots are worth their weight in gold. In addition, stores will reduce perishable goods – up to 75 percent – on the day of their expiration date.
If you prefer to shop online, websites like TopCashback and Quidco will reward you with free money when you shop online. TopCashback says its members earn an average of £ 345 a year.
Before you shop online, check to see if they are on your cashback site. If so, first click from this site and the cashback will be paid later.
6 TRADE FOR THE BEST GOVERNMENT DEAL
When a deal on broadband, cell phone, or insurance (car or home) is offered for renewal, providers rarely offer their customers the most competitive price.
Using a price comparison website makes it easy to look for a cheaper deal, and switching is usually painless. But if you want to stay with your existing provider, call and ask them to give you an improved offer, referring to the deal offered by the comparison website.
Look for cheaper billing offers using the price comparison website, and switch if your regular provider can’t offer a competitive bid
More often than not, they will suddenly come up with a better deal to save your custom.
7 ACCEPT any debt you ignore
If you have an overdraft arrangement with your bank – or you don’t clear your credit card balance on a regular basis – don’t bury your head in the sand.
Take action because overdrafts and credit card debt can attract high interest rates.
Unsecured personal loans are an option. According to Moneyfacts, a personal loan of £ 5,000 from M&S Bank with a five-year repayment will cost 3.9 per cent in interest.
Some of the links in this article may be affiliate. If you click on them, we can earn a small commission. It helps us fund This Is Money and keep them free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Don’t wait for Risha Sunak’s handouts – our guru JEFF PRESTAGE tells how to save money NOW
Source link Don’t wait for Risha Sunak’s handouts – our guru JEFF PRESTAGE tells how to save money NOW