Personal finances are tight so it is crucial to identify ways to save money on day-to-day purchases. Making a few changes to spending patterns can help achieve those all important cost savings.
Save Money Tip 1: Buying Things That Aren't Needed
How many times do we buy things we want rather than truly need? Get used to asking yourself this question before parting with any cash. Wait 24 hours to cool off so you don't buy purely on impulse - this will cut spending.
Save Money Tip 2: Pay Off Costly Credit Card Debt
Make a list of all your debts and seek to pay off the most costly ones first. There is no point in paying off your inflation-linked student loans when you have a credit card debt setting you back 25.9%.
Save Money Tip 3: Challenge your council tax band
Many people are in the wrong band and could be paying hundreds of pounds every year that could be used on other aspects of their life. Councils certainly don't always get it right.
Save Money Tip 4: Minimum Credit Card Payment
Don't pay just the minimum balance on your credit card. Doing so means that you will simply be paying interest and not repaying the capital.
If your credit card balance is £5000 with an 18% APR, paying the 2% minimum will mean that it takes 47 years 11 months to clear. During that timeframe you will have paid a colossal £10,978 of interest.
Try to pay more each month as it is the only way to reduce debt.
Save Money Tip 5: Offset Savings Against Mortgage
If you have savings in the bank, look to offset this money against your mortgage to reduce the amount of interest you pay and reduce the term of the loan.
Save Money Tip 6: Sell On Ebay
If you have lots of things that you don't need, seek to sell these on Ebay or at a car boot sale. You may even find something valuable when searching through your archived possessions. This additional income could be used to reduce debt or even save money.
Save Money Tip 7: Cut Petrol Costs Through Car Pooling
If you drive to work each day see if there are other people who do so and arrange a car pool. In an age of high petrol costs this should not be under-estimated as it could cut your transportation bill by as much as 70%.
Save Money Tip 8: Unlawful Credit Agreements
There are many unlawful credit agreements for below £25,000 and these should be checked to see if they are legal. If they aren't, challenge them as it could result in the debt being completely written-off. It is believed that well over 50% of agreements drafted before April 2007 don't conform to the Consumer Credit Act 1974.
Save Money Tip 9: Pay In Cash
Try to go shopping without a credit card. Paying for things with cash will provide you with a real sense of perspective of the value of money. Credit card money comes and goes far too easily.
Save Money Tip 10: Use Price checkers
Check online price checkers to make sure that the best deal is being attained. This can be done on all sorts of household expenses, such as insurance, utility bills, mortgages etc. It can save you a small fortune.
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