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Debt Equity Swap Example

May 13th, 2010 |

Author: Gavin

Ten Ways To Slash Your Direct Debits in 2011

It’s a New Year and the air is full of resolutions and good intentions, and as with every New Year the vast majority of us will be filled with motivation for getting our personal finances organised, and to that end there’s no shortage of Free Debt Advice articles doing their rounds online, but of all the possible courses of action that can be taken now to ensure you personal finances have the best possible year, perhaps the most important of all is don’t overlook the potential of getting the basics sorted, especially when it comes to organising those regular monthly bills and credit card debts.

1: Swap your gas and electricity supplier: The steep rise in charges by energy providers over the winter months sparked huge uproar in the latter months of 2010, forcing homeowners to look into swap energy providers. Although, as the severe weather passes (‘touch wood’) providers are reintroducing competitive rates once more. It is no secret that utility bills consume the majority of our monthly wage, so in order to minimize the amount to spend, compare your current deal with others offered in the market. It may well be, if you have been with your current provider for a significant period of time, that you are not on the best deal available. It really does pay to shop around!

2: Cancel your gym membership: It is a well known fact that large gyms and leisure centres significantly increase their gym rates in order to take advantage of the thousands of people that have made New Year’s Resolutions to get fit. So, if you want to have a healthier year in 2011, then perhaps exercising from home would be cheaper? Or, if you already have a membership, consider if you are making the most of what you are paying. If not, cancel your membership, it will save you hundreds of pounds every year.

3: Review your TV subscription: With the spread of satellite television over the past decade, more and more homes are forking out hundreds of pounds a year for satellite subscriptions. Evaluate how often you watch television and what channels attract your main attention. Do you watch the movie channels? If you don’t watch them regularly, perhaps it would be cheaper to cancel your movie package and just rent DVD’s as and when you fancy watching one. How often do you watch the sky channels in general? If you find yourself reverting to the old routine of watching the BBC news and the Soaps in an evening then it may be worth considering a FreeView box instead.

4: Reduce bill payments to the required level: It is sometimes worth spending a bit of time regaining a level of control over your direct debits. Keep an eye on the current market conditions to ensure that you don’t pay more than you need to on your bills. Additionally, ensure that any reductions in your spending are actually shown in the direct debit.

5: Transfer to a free current account: What benefits do you have with your current account? Evaluate how often you make the most of these benefits. For example, do you really need the discounted mobile phone insurance cover when you’re phone is over 10 years old? Or do you really need the travel insurance considering you don’t go away often? Ask yourself these questions to decipher if your current account is in actual fact the right one for you.

6: Consolidate your debts: It is surprising how many people panic over their debt, believing it to be worse than it actually is. Obtain some professional advice if you have entered the New Year with a cloud of financial uncertainty casting a shadow over your life. Consolidation of your debts can make your repayment scheme much more manageable and you can avoid paying unnecessary amounts of interest.

7: Pay your car insurance up front: Stretching car insurance premium payments over a longer period of time can end up being much more expensive than paying it all in one go. Most motor insurance providers offer to split your payments into 12 monthly payments, although these can carry with them high interest rates. So make sure that wherever possible, you pay it all in one lump sum. Plus, by making the full payment you are assured piece of mind by not adding yet another direct debit to your account.

8: Change your broadband provider: The broadband industry is one of the most competitive markets out there at the moment. With continuing developments being made to increase connection speeds and download limits, the internet business is a lucrative one. For this reason, it is imperative that you shop around for the best deal as providers are always slashing their rates. It may also save you money if you sign up to a multi-package, for example a provider that offers telephone rates, subscription charges and the internet all within the same package. This will also consolidate your service provider direct debits into just one monthly payment.

9: Remortgage: Now that Christmas and New Year is out of the way, there is a returned focus onto the consolidation of debts. Remortgaging your property could be the perfect way to release some equity to pay off your debts. Furthermore, if the introductory offer on your original mortgage has expired and your lender has transferred you onto their Standard Variable Rate (SVR) you are probably spending more than is necessary. Lender SVR’s generally have much higher interest rates than the current remortgages on offer, so make 2011 a year that you consider a remortgage.

10: Cancel magazine subscriptions: Do you have a magazine subscription, or any subscription for that matter, that you’ve been getting for years and perhaps never even considered cancelling it? If you rarely read your magazine or newspaper subscriptions then cancel them and you could save as much as £50 a year.

As you can see these ten simple steps could make a big impact on your personal finances this year, as the old saying goes, look after the pennies and the pounds will look after themselves.

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