Don’t Let the Recession Bite Your Wallet

With Britain in recession everyone’s wallet has taken a battering, but there are indications that the worst of the recession is behind us. Follow our 5-point plan to streamline your finances and your recovery will be even faster.

The first step is to go through all your direct debits and standing orders and check that you aren’t paying for something you don’t need or use. Like a gym membership for a gym you never get time to go to, or a subscription for a magazine that you never read. Or an insurance policy that is not relevant to your circumstances;(do you really need life insurance if you are unmarried and have no dependants? Maybe you do, but at least consider the matter!)

2. Check Your Regular Expenses

Next look at all your regular expenses and review whether it’s possible to reduce these. If you switch to a different supplier you may be able to save money on your gas or electricity bills. Try www.uswitch.com to compare suppliers and prices.

3. Don’t Automatically Renew

Don’t automatically renew your car insurance as the best prices are often reserved for new customers. Go to a comparison website such as www.confused.com or www.moneysupermarket.com and put in all your details to get a range of quotes. You could even halve your renewal price by doing this. Apply the same technique to your house insurance too.

4. Review Your Supermarket Bill

Look at your other expenses such as your supermarket bills. Do you buy food that gets regularly thrown away? Could you switch to cheaper brands and get the same quality? (you won’t know if you don’t try.) Could you cook more from scratch? Raw ingredients are cheaper than ready meals and your meals will taste better and be healthier, I promise you.

5. Your Debts Could Be Costing You Too Much

Consider your debts, if you have any. If you are paying high interest on your credit card balance, then try applying for another card and transfer your balance onto the new card at a cheaper interest rate. 0% is best if you can pay it off quickly; a low life of balance rate is better if it will take you longer to repay.

Also make sure you are getting a good interest rate on your savings. Just because the rate was good when you opened the savings account doesn’t mean it still is! Interest rates go down as well as up, and you may find that you can earn a much better return on your savings in a different savings account. Don’t forget ISA’s for tax free savings (although you are restricted to 3,600 pounds a year for the cash ISA’s.)

Credit Crunch? Bite Back!

There are many ways to take control of your spending, don’t limit yourself to these suggestions. By going through all your expenses you could save hundreds of pounds a year. That way, if the credit crunch does result in higher prices or interest rates, you will be in a much better position to deal with it. Happy Saving!

NOTE

This article is based on journalistic research and does not constitute financial advice. All tips are followed at your own risk and should be considered in regard to specific circumstances.