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With mortgages and rents on the rise, now is a good time for consumers to assess their finances and make sure they aren’t spending more than necessary amid skyrocketing costs of living.
Transferring debt to a balance transfer credit card, checking for unclaimed benefits, and using price comparison websites are all easy ways to reduce spending and manage rising costs. Here are 10 tips from the consumer group Which? Help save money.
1. Do the “Money Health Check” yourself
The first step to improving your finances is understanding your current situation.
For example, it’s worth taking note of the number of direct debits and recurring loan or credit card payments that need to be made each month to better understand where and how you can save.
2. Transfer credit card debt
If you’re paying a lot of interest on your credit card debt, you may be able to transfer everything to a 0% transfer credit card.
This type of credit card does not charge interest on the transferred debt for a period of time, giving the user an opportunity to repay the balance.
For example, a £2,000 debt on a card with an APR of 18.9% and £60 monthly payments will take 46 months to pay off and cost £2,755 to pay off.
read more: Cost of Living Crisis: 9 Tips on How to Save as a Student
In contrast, transferring £2,000 of debt to a 0% balance transfer card would take the same £60 monthly repayment, take 34 months to clear, cost £2,000, and save £755.
However, interest rates tend to spike once the promotional period ends, so be sure to pay off your balance before then or switch to another balance transfer card.
3. Check if you are eligible for benefits
Over £15 billion is unclaimed by the Treasury each year. This represents an estimated 7 million UK households who may be missing out on benefits they are entitled to, such as local tax discounts, pension credits and universal credits.
What you can get depends on your situation. For example, people who are unemployed or on low incomes may be able to claim universal credit. This allows you to receive regular payments to replenish your income.
Knowing what benefits you can claim and how much you can get can be difficult. which one?provide details about yourself and others in your family[利用資格]I suggest entering it in a calculator and checking.
4. Check your bank account overdraft fees
Over-withdrawing can be costly, especially as some accounts charge up to 39.9% EAR (effective annual rate).
If your bank has high interest rates, it might be worth checking to see if you can switch to an account that offers a lower interest rate. This is especially true if you regularly use overdrafts.
read more: How to spend Christmas on a budget
Nationwide (NBS.L) currently offers free approved overdrafts on FlexDirect accounts (subject to availability), but this is only valid for the first year.
It’s also worth keeping an eye on the best current account switching offers.Many accounts offer switching bonuses. For example, First Direct offers a new customer his £175 and Nationwide offers £200.
5. Use price comparison sites
Insurance policies, credit cards and broadband bundles usually have a wide range between the cheapest and the most expensive.
Before signing up for any new financial product or policy, browse the best deals available by using price comparison websites to compare different products and choose the one that best suits your individual situation. is recommended.
6. Get a better cell phone deal
which one? We recommend that you evaluate your phone bill to make sure your calling, text, and mobile web usage isn’t consistently above or below your monthly allowance.
Consumers should also consider bargaining to get the best deals. Studies show that customers who haggle save an average of £35 a year on their mobile subscription.
7. Cancel unwanted direct debits
It’s a good idea to check your bank statements regularly to keep an eye on your direct debit payments and cancel anything you’re not using.
read more: Stamp duty cuts do more harm than good, boosting home prices
which one? encourages consumers to log into their online bank accounts and check their statements to avoid spending money on services they no longer need or use.
8. Use budgeting apps
The budgeting app is a great way to get an overview of your account activity and spending trends.
Many apps allow users to link multiple bank accounts to track their overall spending.
By checking regularly, consumers can monitor unnecessary costs and budget more effectively.
9. Sign up for a loyalty card
Many retailers, restaurants and supermarkets offer loyalty schemes that allow customers to earn points every time they eat or shop.
In many cases, earned points can be converted into discount vouchers or offer one-time discounts or deals.
read more: Cost of living crisis: how to save £2,000 on food
When shopping, it’s worth checking to see if there are any schemes available to you by signing up. Earn and redeem at low prices using the clubcard scheme.
10. Reduce taxes
Consumers can retain a larger portion of their income by claiming all the tax breaks and benefits they are entitled to.
From marriage benefits to rental housing schemes, there are many ways to cut taxes, but relatively few people know that these reliefs exist.
For example, people renting out rooms rather than entire properties can take advantage of the Rent-a-Room scheme. This means you can earn up to £7,500 tax-free.
Watch: The Risk of Buying Now and Paying Later
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