Tips to save money and survive the credit crunch
The average credit card holder in Britain is now in over £2000 of debt. We got used to buying what we wanted when we wanted it but it’s clear from the recent slump in retail sales that the time has come to tighten our purse strings and rein in our spending. Here are a few tips on how to save money and make the most of what you already have in the recession.
Mortgage: The mortgage is the most expensive outgoing for a lot of people. Your home is 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 deal with. Shop around a bit 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 make 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, 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. Make sure you don’t spend money you don’t have, if you can’t afford to pay it off that month, just 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 can resist spending more on your cards again, cut them up. The main thing is don’t go beyond your means.
Car: Owning a car is a very expensive business. It’s not just the cost of the car itself but road tax, maintenance, insurance, servicing, MOT… And the list goes on. Think about whether you really need a car. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay the car off in manageable monthly instalments and often you can get other additional extras like road tax or servicing costs as well. You just have to look around 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 things around your house, don’t just turn a blind eye to them or take them to your local charity shop. If you’ve got a cupboard full of clothes you don’t wear or gadgets you never did use, there will be someone out there who will want them. Ebay is a wonderful thing, it’s quick and easy and once you get a bit of practise at advertising on there you could find that you could make a nice little extra bit of cash out of your old junk. Give it a go, or you’ll never know until you try!