The average credit card holder in Britain is in over £2000 of debt. We spent years buying what we wanted when we wanted it but it’s clear from the slump in retail sales that the time has come to tighten our purse strings. Here are a few tips on how to save money despite the recession and make the most of what you already have.
Mortgage: The mortgage is the most expensive outgoing for a lot of people. Your home is probably the most important thing you own, and certainly something that it is worth taking out a loan for. But that doesn’t mean that it’s an inevitable burden we all have to bear. Shop around and make sure you really can’t find a deal that would be better for you. There are thousands of different alternatives out there, you just have to be sure you’re getting the most out of your options. Overpayments are not a bad thing – if you find yourself with a bit of extra cash to spare one month, don’t keep it aside to fritter away on things you don’t need, make extra payments whenever you can and you could save thousands on interest in the long term.
Credit cards: Just resist. Don’t spend money you don’t have, if you can’t afford to pay it off that month, don’t buy it. Try to pay off any debt you owe as soon as possible (don’t just pay the minimum each month if you can afford more) and if you don’t think you’ll be able to resist spending more on your cards again, cut them up. Make sure you don’t go beyond your means.
Car: Owning a car can be a very expensive business. It’s not just the cost of the car itself, but road tax, maintenance, insurance, servicing, MOT… The list goes on and on. Think about whether a car is really necessary. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay for the car in manageable monthly instalments and often they will throw in other additional extras like road tax or servicing costs as well. You just have to search for the best deal. And the best thing is that often the more desirable car you choose with contract hire the better deals you can get – you could find yourself with a car you would never have been able to afford to buy outright, even in better times!
Sell sell sell!: If you have clutter and unused items around your house, don’t just turn a blind eye to them or take them to your local charity shop. If you’ve got drawers full of clothes you don’t wear or gadgets you thought would be useful but never used, there is someone out there who will want them. Ebay is brilliant, it’s quick and easy and once you get a bit of practise at how to advertise on there you could find that you could make a nice little extra bit of cash out of your old junk. You’ll never know until you give it a go!
