CLOSURES
Saving on your bills
CLOSURES
Saving on your bills
Saving on your bills
Now that you’re looking forward to life after your Trust Deed or Debt Arrangement Scheme (DAS), you might be thinking of ways to make your money go further. One of best places to start is at home, by reevaluating your household bills.
Bills can be easy to overlook and hard to understand, which leaves many of us mistakenly believing that the cost of our bills are set in stone. Thankfully, that’s not the case.
There are savings to be made – if you take a proactive approach. With a little extra knowledge and some forward planning, you can reduce the cost of your bills and ensure you have some extra money to play with at the end of the month.
Understand what you’re paying for
If you’re looking to save money on your bills, you need to understand what you’re paying in the first place.
You might be surprised how many people don’t know exactly how much they pay in household bills each month. A study by Zoopla found that more than a third of UK adults (37%) don’t know how much it costs to run their homes.
If you fit into this bracket, then you have to take action if you want to make savings. The best way to go about this is also the simplest. Go back through your bank statements and list all of the direct debits that leave your account over the course of a month.
There might be some direct debits that you don’t remember setting up, or bills that are more expensive than you imagined. But now that you know what they are and where they come from, you can focus on cutting them down to size.
Switch on to new providers
We’ve all seen the adverts and read the news stories about how switching energy suppliers can save you hundreds of pounds per year. Despite the benefits being laid out for us, jumping ship can still seem like a daunting process.
While you might have got a great deal when you first signed up to your plan, things change. It’s all too easy to avoid switching for fear of hassle, but that’s the secret energy companies don’t want you to know – switching suppliers is less hassle than you think.
Your love of convenience is something that big energy firms rely on. They will often discreetly increase the price of tariffs, betting that you won’t do anything about it.
Don’t let your loyalty cost you. Make sure you shop around after your minimum contract length is up. If you notice your supplier has a newer, cheaper deal, don’t be shy – give them a call, and they should be able to swap you over to the new deal without paying exit fees.
Take the time to switch off
In today’s world, most of us probably spend too much time staring at screens or tapping away at our phones. Not only are these devices a drain on our time, they’re a drain on our money too – even when we’re not using them.
The Energy Saving Trust estimates that the average UK household spends between £50 and £80 powering devices and appliances that aren’t in use – think televisions left on standby, laptops left to charge overnight, or anything that can be switched off at the wall but isn’t.
By leaving devices and appliances to use power while they’re not in use, you’re allowing your utility bills to creep upward without seeing any benefit whatsoever. Don’t fall victim to energy vampires. If you’re not using it, switch it off.
Make small changes for big results
The important thing to remember about household bills is that you have more control over them than you think. There is always the temptation to look at your utility bills at the end of the month and think, “Well, that’s just how much these things cost”.
That doesn’t have to be the case. You can make small but effective changes to your everyday habits that reduce your bills and help you keep a hold of your money.
From turning devices off at the wall instead of leaving them on standby, to making energy saving improvements to your home, there are lots of things you can do to make your money go further each month:
- Spending one minute less in the shower each day could save a family of four £75 a year on energy and water bills.
- Replacing an inefficient shower head with a water efficient one could save a household of four £70 off gas bills and around £115 off water bills.
- Replacing bulbs with energy efficient LEDs could save £35 a year on bills.
- Turning appliances off standby mode could save you £30 each year – and don’t forget to turn your phone and laptop off charge too for additional savings.
- Turning down your thermostat by one degree can save around 10% on your annual energy bill whilst keeping your home warm during the colder months.
- Draught-proofing your windows and doors, as well as blocking cracks in floors and skirting boards, can save £20 on energy bills each year.
As well as small changes you can make at home, there are various energy saving schemes and discounts that can save you money long-term should you meet the criteria.
Pay your bills on time
It might seem as though it doesn’t need to be said, but one of the ways you may be able to save on your bills is by ensuring you pay each of them in full and on time.
Late bill payments mean late payment fees, where your provider will charge you a fee over and above your bill for failing to settle your balance on time. Late fees not only cut into your budget; they can make it harder for you to find the money to pay your next bill, and lead you into a dangerous cycle of late payments.
To ensure you pay your bills on time, make sure you know exactly what you owe and when it will come off, keep a record of all direct debits, and plan ahead. If you’re unsure whether you’ll be able to cover your next bill, make sure you reach out to your provider with plenty of notice.
Get the support you need if you’re struggling with bills
When coming to the end of your Trust Deed or DAS, and looking forward to regaining control of your finances, it’s only natural if you’re considering where you might be able to make savings and boost your budget.
If you’re unsure about the best way to save on your bills, are worried about changing your provider, or you’re struggling to cover the cost of bills at the end of the month, Carrington Dean can help.
Our team of experts are on hand to offer advice and guidance, can shop around for the best deals on your behalf, and can even offer a bespoke switching service designed to help people in your position get the most for their money.
What is your financial goal?