If you had the choice, you’d stop paying all of your monthly expenses and spend the money on something more fun. Unfortunately, that’s not the way life works and there are all sorts of boring things you have to pay for each month. You can’t avoid those bills completely but you might not realize that you’re paying more than you need to be. Thousands of people all over the country are paying over the odds for these 4 things without even realizing it, but this article will give you some great advice on cutting those costs.
Mobile Phone Contract
You can’t live without a phone these days, it’s just not viable. Nobody will be able to get in touch with you and you’ll miss out on all of your emails etc. But there’s no need to be spending £50 a month on a brand new phone and an extortionate contract. I pay £15 a month for my phone contract, I’ve still got a new smartphone, unlimited messages and enough calls and data to do everything I need to. There are a couple of reasons that people end up wasting loads of money on their phone contracts; first, if you’re getting the latest model of a phone that’s just been released, the cost of that will be added on to the contract and the price will shoot up. The other thing to consider is how much data you’re paying for. The salesperson in the shop will tell you that you need loads if you’re checking emails on the go etc. But the thing is, you can get wifi most places now so you only need a small amount.
You can’t drive without insurance so you can’t avoid paying it, but if you take the time to shop around and think about how you pay it, you can reduce the cost quite a bit. The biggest mistake people make is just renewing their insurance with the same company each year without shopping around but you can find cheap car insurance from Money Expert, a great comparison site that goes through all of the available deals and finds the best price for you. The other mistake that people make is paying monthly. It seems more manageable because you don’t have to come up with all of the money there and then but if you add up all of the monthly payments, you’ll find that it’s far cheaper to pay it one lump sum.
Just like car insurance, you can easily pay more than you need to be on your utility bills if you stick with the same provider. Every year when your contract is up, take the opportunity to look around and see whether you can get a better deal. You should also be aware of your usage, turn the heating down a little, make sure you turn off lights when you’re out of the room etc. By shopping around and being a bit more mindful of how much energy you’re using, you can save yourself a lot of money and spend it on something else.
Credit Card Interest
When you’ve got high interest credit cards debts to pay off, they’ll eat through all of your disposable income and make it far harder for you to manage your budget. You’re never going to be able to avoid the interest completely, but there are ways that you can reduce it. The easiest way to cut the amount of interest on your credit card debts is to use a balance transfer. Some cards offer an introductory period of zero interest, usually lasting for a year. If you get one of these cards and pay off the existing debts on it, you’ll have a year to clear the balance before interest payments kick in. This is a great way of reducing your interest repayments but it’s worth remembering that when those interest payments do start, they can be fairly high. If you’re not paying off all of that debt in the year, you’ll just end up having to repeat the process and you’ll be shifting the debt around without actually clearing it. The more cards you’ve had in the past, the less likely you are to be able to get one with an interest free introductory period. That’s why it’s so important that you only use balance transfer if you’re sure you can pay down the debt before the introductory period is up.
Even though you don’t realise it, you’re wasting money on these bills every single month. If you can cut them down, you’ll have way more disposable income to spend on the things you want.