Monday, June 27, 2011

Save on your Monthly Bills

With everything from food to energy increasing in price alongside the economic downturn and government cuts, it has become even harder to keep within a monthly budget.

So just how can people cut down on their monthly outgoings without compromising on household necessities? With some clever financial planning and advice, we will show you how.

Firstly, deal with paying off debts and loans before any further spending. Take a quick look at our loan repayment calculator as it may be cheaper to consolidate your debt onto a new loan with cheaper rates.

If you are struggling to pay off debt within your current timescale, look to consolidate the debt onto a loan with a longer timescale, which will reduce payments to a more manageable amount.

Take a look at any big ticket items you may already have on finance, such as a sofa or car loan. If these are on finance agreements with the places of purchase such as the car garage, you may find the APR high.

These can often be reduced by switching this type of debt onto a loan using our loan payment calculator to find a better rate and reduce monthly outgoings.

If you already own a credit card, make sure that it is working efficiently for you and your circumstances. Look at whether you use the card for purchases or balance transfers.

If there is a large balance on the card, consider transferring it to a zero per cent interest balance transfer deal with another card provider.

Look out for credit card deals where there is a promotion period for zero per cent on purchases as well if you intend to spend on the card.

If you use the card for both, get two credit cards and use one solely for paying off a balance transfer at zero per cent and one for purchases.

When it comes to the weekly food shop or occasions such as Christmas, purchase using a credit card with cash back or rewards so that you gain from each shop you do.

The cash back or reward scheme can then be used towards other monthly outgoings, such as supermarket credit card reward points towards clothing or cash back to put towards the next month's food bills.

When it comes to shopping for larger items such as a television, do your homework to find the best price before purchase. Shopping online can often be cheaper and easier to compare prices.

Individual bills such as the home phone, digital television package and broadband can soon add up. They are often cheaper if you combine them all under the same provider, helping to reduce monthly outgoings.

Energy prices are set to increase again and therefore monthly bills will be hiked. Now is the time to shop around and fix your energy prices to freeze the current price for a set timescale and avoid the increase.

Combining our money saving tips with our loan repayment calculator could benefit your household, helping to reduce monthly outgoings and cleverly manage debt and spending.

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