Cutting costs – finance expert shares seven top tips

Cost of living crisis – finance expert shares her top tips for saving money 

• Credit card switches, supermarket loyalty schemes and free finance apps can all help cut costs 

As the cost of living crisis hits families hard – and interest rates in May have been hiked again to 1% – Laura Howard, finance expert at financial comparison site Forbes Advisor, has compiled some cost-free strategies that can help make a worthwhile difference to a household budget’s bottom line. 

Stop paying credit card interest 

“If you have credit card balances which you are unable to clear, paying interest (at a typical 20% APR, variable) is cripplingly expensive and, essentially, money straight down the drain. It’s possible to move balances from several card providers up to, say 90% or 95%, of your allocated credit limit, to a 0% balance transfer card.

“While you’ll need a top credit score to be accepted, applying through an eligibility checker means you can view your chances before making an official application. This protects your credit report from visible searches which could put off subsequent lenders. If you find you are leaning on your credit card to pay for essentials, swap it for one that offers an interest-free period on purchases.

“Some of these deals offer up to two years at 0% to the most credit-worthy applicants. So if you are forced to borrow, at least you can do it without paying interest.” 

Look for cheaper insurance deals 

“Certain costs such as mortgage or rent, council tax, and are simply immovable. But when it comes to annual insurance policies, such as for your home and car, make sure that you have compared costs from the wider market before auto-renewing with the same provider. Switching is quick and easy and could save hundreds of pounds over the year.” 

Spring clean your current account 

“It’s worth going through your direct debits and standing orders to uncover any costs that you are forking out for unnecessarily – for example, subscriptions or services that you are no longer using.” 

Check to see if you are entitled to any benefits 

“When you are satisfied that your regular outgoings are as lean as they can be, check to see if there are any income-related benefits or grants you could be missing out on. With a few key details from you and your partner, this is easy to do with a government-approved benefits and grants calculator such as Turn2Us.org. 

“If you are working and have a child aged between three and four, make sure you are collecting the Government’s 30 hours free childcare if you are eligible.  

“If the sums simply aren’t adding up, check to see if you qualify for The Household Support Fund. Available through local councils, it’s designed to offer financial support to help pay for essentials such as food, clothes and utilities. And the Government has doubled its funding from £500 million to £1 billion from April 2022. 

“Acceptance criteria varies between councils so check the relevant website for more details.” 

Make the most of free finance apps 

“Using your bank’s app, if you aren’t already, makes organising your finances a lot easier and means you can keep track of your spending whilst on the move. 

“You could go one step further with a budgeting app like Snoop, Yolt, or Money Dashboard. Using an open banking agreement, these apps allow you to view all of your accounts in one place which can provide greater transparency around the reality of your spending. If you opt for the basic version, many are also free.” 

Take advantage of supermarket discount/rewards 

“If you haven’t already, download your supermarket’s free loyalty app. As you’re very likely to have your phone with you, this makes it easy to scan and collect any points you’re entitled to. These can then be redeemed for a pounds-and-pence discount off the cost of your grocery shop.” 

Make positive lifestyle changes 

“Small changes to ingrained daily behaviours can also pay dividends over time. For example, making a commitment to use less energy. This could simply mean hanging out washing as the weather improves rather than using the tumble drier, turning the heating down by a degree or two, or switching off lights or radiators in rooms that you don’t use. 

“A good starting point when it comes to energy-saving is to understand which home appliances use the most energy compared to others. A simple and energy monitor is a clever and inexpensive tool that can help with this. 

“Outside of the home, changes such as seeking out free parking, and swapping a bought lunch and coffee for one you’ve pre-packed can mean that a day that might have otherwise cost £25, costs nothing.” 

For further information click  Forbes Advisor