Times are harder than they have been in some time so taking practical steps to deal with the current credit crunch crisis is essential. The good news is that a few simple lifestyle changes can help reduce spending and overall debt levels significantly.
Pay off Debt
If affordable, use savings to pay off debt. There is no point in having a £10,000 loan at 10.8% and £10,000 in savings earning 0.1%. The net cost is £980 per year. Try to reduce secured home owner loans and high APR credit card debt debts as a priority.
Remortgage - Don't Stay on Standard Variable Rate (SVR)
If originally on a fixed rate mortgage and the term has now elapsed the switch will have been made to a Standard Variable Rate (SVR). This will result in the payment of considerably more than at the outset. Provided credit is still good, it is possible to save significantly by getting a remortgage.
Get A Debt Consolidation Loan
Taking out a debt consolidation loan a great idea, provided that the term of the loan isn't increased in the process. Increasing the term simply serves to increase the amount of interest paid to the banks. However, consolidating higher APR debts and getting a better deal on a loan is a smart move.
Cut Electricity & Gas Bills
The price of electricity and gas have risen exponentially, but it is still possible to secure a better deal. Use one of the many online price checkers to identify which utility provider is currently offering the best rates. Here are a few additional tips:
- Don't leave electrical products on standby.
- Take a shower instead of a bath.
- Use energy saving light bulbs.
- Don't heat rooms that aren't being used.
- Fit loft installation. Many councils will even offer grants to assist in the process.
Don't Call Premium Telephone Numbers
Companies use 0870 and 0845 numbers to generate revenue. Take a look at the contact us page on the company web site and there is usually a number for people to call from abroad. This will be a regular number and calling this will save money over the course of the month.
Buy Own Brand Supermarket Food
Switching from branded to own brand supermarket food will cut a food bill by about 20%. Try to gradually introduce different items as a test as some items are nicer than others. If buying food online it is relatively easy to get hold of Tesco discount codes that can secure a reduction of as much as £13 on a £100 order.
Sometimes just making a few modest spending adjustments can make all the difference between paying bills on time and creating additional debt. If debt problems are starting to become more of an issue it is worthwhile considering of a number of potential debt solutions that are designed to help those who are struggling.
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