How To Escape Debt and Start Saving

When I first started to consider sorting out my financial situation a necessity I relied pretty heavily on Martin of the moneysavingexpert website. Thanks to him I went through all the necessary steps of tidying up my personal finances and giving me a better chance at actually being able to save some money. As I’ve had great use of many of these tips I though I’d share some “beginner’s advice”.

Firstly, look over all your utility bills. There are several comparison sites nowadays where you can type in exactly what your needs are and which will then show you how much money you can save through switching providers. Many of them even offer you a switching incentive.

Through using energyhelpline I now have green electricity, pay £14 less a month and even received a cashback of £15 straight into my account about 2 months after the switch took place.

The same method can be used for your phone, broadband and similar bills. As I was already on the cheapest deal on these I have remained with my current suppliers although I regularly check to ensure they are still the cheapest for my needs.

Loans, mortgages, credit cards and other debts are necessary to look over regularly as you may be losing hundreds of pounds a year through not keeping an eye on them. With your mortgage, as soon as your current deal comes to an end (terms are usually 2,3 or 5 years) you will normally be automatically switched to the lenders standard variable rate which may increase your monthly mortgage greatly. Through simply speaking with your current supplier regarding cheaper options you may be able to cut this cost. If they do not offer you a deal that seems competitive do think about remortaging.

Credit cards, whereas very handy for large purchase are also a very expensive debt if you fall behind with repayments. If this has happened to you DO shop around for a better card where you can pay off the debt at 0%. This may mean switching cards frequently or even holding 2 cards, one for balance transfers and one for any new purchases if you still need it. As my credit card debt was very small I didn’t really benefit from this but I know those who have decided to sort out their debt who have saved a great deal of money through being proactive and ensuring they had the best deal going at all times. It does require quite a bit of work, but it's definitely worth it if your debt is large.

Apart from this it is also worth looking over any other monthly outgoings you may have such as maybe a gym membership or cable TV. Have you got the cheapest/best deal going? It is easy to get complacent and just stick with what you know but there is money to be had so do make an effort.