Reviewing and Reducing Regular Household Bills
Minimising Mortgage, Credit Card and Utility Account Costs
Jan 13, 2008
When setting up a household budget, there are some items that must be included as a simple fact of everyday life. Utilities, accommodation expenses, insurance and other regular bills cannot be removed entirely. While it is not possible to remove these costs, it is worth ensuring that they are not more expensive than they need to be.
Reduce Mortgage Payments
There are an ever expanding variety of home loans and lenders. Banks, Building Societies, Credit Unions and dedicated home loan businesses offer an array of loans suited to every need and purpose. Interest rates can vary greatly, as can associated fees and benefits.
Compare an existing mortgage to other home loans to ensure that interest and other expenses are kept to a minimum. Even saving a few hundred dollars a year can have a significant impact over the life of a loan. As home loans generally involve significant amounts, it is worthwhile getting the advice of a reputable mortgage broker or financial advisor before deciding to change home loan providers.
Reduce Insurance Costs
Home building and contents, car, life and health insurance all require regular payments. Grouping policies with the same company can result in an incentive discount. If more than one policy is held with the same provider, contact them to ask about discounts. Some companies will only apply the discount when specifically requested.
Many companies allow pay-by-the-month options on insurance premiums, but this can be more costly than paying a yearly fee. If possible, paying annually can result in a useful saving, as can increasing the amount of excess payable on any claims.
Some health and life insurance companies can be compared through the iSelect.com.au website.
Insurance brokers can compare and recommend insurance policies to suit individual needs. It is important to consider not only which company offers the cheapest policy, but also to make sure that the policy will cover the necessary costs should a claim need to be made.
Compare Utilities Providers
There are a variety of options when choosing an electricity and/or gas provider. Companies that previously only offered one or the other can now generally offer both. It is also possible to include a ‘green energy’ requirement with many companies, which can result in a slightly higher cost with the long-term goal of providing sustainable and affordable energy.
Gather together the past 12 months of energy usage statements. Note usage amounts, fluctuations and rates. It is then possible to contact suppliers to ask about their rates and services to best suit individual usage needs. Be prepared to ask questions and ring around to find the best option.
Some companies offer a slight saving if bills are paid by direct debit. Ask about what deals are available when making enquiries.
Reduce Phone Bills and Internet Charges
For many households landline, mobile and Internet costs make up a significant portion of monthly expenses. There are a variety of companies and service providers available, each with a range of service options. Most companies offer some discount for bundling phone and Internet services through the one provider.
Comparing different offers and contracts can be complicated and time consuming. Businesses such as Save On Bills can assess ongoing bills such as mortgages, home phone, mobile, Internet, credit cards and insurance to make sure that consumers are aware of the lowest cost options available that suits their needs.
When trying to reduce expenses in this category, it is important to research what is available in the market and ask informed questions of providers to ensure best value for money.
