Debt Advice

Your mortgage

Do not be fooled by low introductory rates as they are usually have high arrangement fees. You home is probably the largest purchase you will make in your life so make sure you search for the best rate with low arrangement fees. Overpaying your mortgage can have significant impact on how quickly your mortgage will be cleared.

For example:

Mortgage £100,000

Rate: 4.5%

Mortgage Repayment: £555.83

Term: 25 years

Total repayment: £166749.74

Overpayment amount: £100.00

New Mortgage payment: £655.83

New Term: 18.9 years

New Total repayment: £148609.25

Total Saving:

Term: 6.1 years

Total repayment saving: £18140.49 

Your council tax

Council tax banding was introduced by the Conservative party in the 1980’s and has since been criticised as being out of date. If you are in the wrong band you could be overpaying your council tax.

Your local council uses property valuations to determine how much council tax you will pay.

Use the website below to check what your surrounding area banding is:

Council Tax valuation list 

Be warned that although some homeowners have reclaimed council tax, this may increase your council tax if you have recently had home improvements done such as an extension.

Your utility bills

Since the privatisation of the national utilities, increased competition in gas and electricity supply markets along with increased demand has brought lower prices. You should check your gas and electric usage every quarter and make sure you are not overpaying.

Paperless billing, online statements, paying by direct debit are all offers that most utility companies offer to save you money. Also look for introductory discounts and companies will usually take care of all the administration like notifying your old suppliers.

Your home phone

Although most will still prefer BT as it is the most widely known brand in the UK, there are now scores of alternative suppliers. Take advantage of the competition and check what offers are available. Use bundle deals to take advantage of lower prices with all in one package for your home phone, cable/sky and internet.

Some suppliers will offer you lower call charges for a higher rental so make sure you check your monthly usage and get a deal that suits you.

Your mobile phone bill

Always check your monthly statement to see how much calls are costing you. Most mobile operators offer free minutes and will include calls and text messages within the allowances. Make sure you read the print on downloading from the internet from your phone and the cost of sending picture messages. Be cautious when you are being offered your money back on your line rental. These schemes have been known to offer little or no cash back as promised and can lead to long tie in contracts with your mobile operator.

Your shopping budget

Make sure you make a budget each month of your income and your essential living costs. Make a list of where you money goes each month. For help with this you can submit your budget to Justice Goddard and we will help you determine where you can save money.

Click here to submit your budget.

Online selling

Most of us will at some point have a clear out of clothes, furniture even DVD’s and computer games. Look at your budget and you will find these items will be replaced with newer more updated versions at a cost. To help cover that cost instead of throwing items away sell your unwanted items that you may feel have no value. Remember throwing it away will earn you nothing where as selling them item may earn you a small but valuable income.

DIY

Technology has meant we now do less. Is this really the case? Home DIY has seen a major increase in the last ten years and it can save you £100’s or even £1000’s in callout charges and costs. Always read up on the work that needs doing first before using someone. You may find with a bit of research and help from family and friends you may be able to save money on DIY.

Insurances

All insurances are optional, unless you are a driver. Always shop around for the cheapest quote but importantly check that you are adequately covered for your requirements. Insurance is always the first thing you will cancel when you are cutting back but can lead to major problems in the event of an unforeseen event.

Smoking and Drinking

Smoking 20 cigarettes a day will cost you an average of £2000 per year. Visit your local NHS centre for help with quitting. Click here for details on your local centre.

Over £36bn is spent on alcohol consumption every year by UK consumer. Cut down on drinking after work and at lunchtimes.

Over spending on these items will leave youcounting the cost of your health and your purse strings.

Take advantage of sales

Buying in the sales will ensure you get a discount on the new shoes you want to buy. Always negotiate with the shop owner even the high street names. You never know when old lines are being replaced and you may find yourself with a bargain.

Automatic renewals

Do not renew car insurance, home insurance, travel insurance or any subscriptions automatically. Always call your provider and ask them how they plan to keep you as a fee paying customer. Shop around and let your provider know what other offers you have looked at.

Fee charging bank accounts

There is a plethora of fee charging bank accounts that provide a service no different to the high street banks. The banks have all agreed to provide basic bank account facilities (see Report on Bank accounts to be made accessible to everyone).

View the list of easy access bank accounts here.

Payment Protection

Possibly one of the largest scandals faced by the banks and credit card companies in recent times is the misselling of Payment Protection Insurance (PPI). Do not automatically cancel your PPI without checking whether or not you are adequately covered.  If you are self employed or retired generally the policy will not cover you and if you were self employed or retired at the time you were sold the policy you were very likely missold. Check that you are covered and if not, contact your bank to explain why they have sold you this policy. Importantly once you have cancelled the policy, ensure you make arrangements to get yourself covered by an alternative provider.

Share your knowledge

Do you have a story about how you saved money? Why not share it with the rest of our readers.

Click here to submit your story or advice about how to save money.