Everyone wants to save money right? But saving money usually means doing without or scrimping and saving. But with these five money saving tips, you could save hundreds of pounds a year without having to compromise your lifestyle.
1. Make use of price comparison websites
No matter if you’re looking for car insurance, broadband, mobile phones or a new bank account, comparing rates on price comparison websites can ensure you get the best deal.
You should get into the habit of checking price comparison websites every time you need to renew items such as car and household insurance. Once a year, it’s a good idea to go through your utility bills, mobile, broadband and bank accounts to make sure you are getting value for money on all these items.
2. Make use of a FREE overdraft
If you find you are regularly overdrawn and you don’t have a FREE overdraft facility, you are likely paying hundreds of pounds a year to your bank in interest or unauthorised overdraft fees. You can reduce this by changing to a bank account which has an interest free overdraft facility.
So, stop throwing money down the drain and get your finances in order by making full use of an interest-free overdraft facility.
3. Consolidate your credit card debt
If you have large credit card debts on multiple cards, you should think seriously about transferring them to a credit card which offers zero per cent interest on the transferred debt.
A word of warning though, such deals are usually accompanied by a transfer fee and are only available for a limited period. So, make sure the transfer fee doesn’t outweigh the interest saving and pay the debt off before the zero-rate period expires.
Alternatively, you may want to consider consolidating your credit card debt into a single loan with a reduced interest rate. Private loans usually charge much lower interest rates than credit cards, and you may be able to utilise a bad credit loan if you have a less than perfect credit score. So depending on how much you owe, you could save a significant amount by consolidating the debt into a single loan.
4. Get a better mobile phone contract
The mobile phone space is competitive, so if you’ve been with the same provider for many years the chances are you are paying too much. Much like insurance providers, mobile phone companies provide much better deals for new customers than they do for existing ones.
So, take a moment to analyse your mobile phone bill to see how much you are really using. Then use a price comparison website to see what deals are available. You will be surprised just how much money you can save by doing this.
5. Pay for things in advance
Many companies provide a discount for paying annually. Examples include your gym membership, car insurance and broadband. So, if you can afford it, pay the whole fee upfront and save a bundle.
Some companies also provide discounts at certain times of the year. So, plan ahead and pay for things when they are discounted. You could buy Christmas cards in January when they are on sale, for example – no one will notice.
By using one or more of these money saving tips you could save hundreds of pounds a year in interest and late payment fees. Put the money towards a holiday or better still pay off your credit card debt early to save even more money. The choice is yours, but it’s nice to have a choice isn’t it?