The credit crunch has removed sources of borrowing making it harder to pay household bills. Credit is hard to come by and overtime is in short supply. Although extra income is tough to come by, it is possible to save money by handling family finances more efficiently.
Spend Less By Paying Bills on Time
Paying bills punctually can reduce household bills as it costs less. There won’t be any additional fees and some companies will even offer a prompt payment reduction for being a good customer. For example, paying EON Energy within 14 days of being billed results in a 3% reduction.
Deal with Debts By settling Credit Card Bills in Full Each Month
Making the minimum payment on credit card debt will not reduce the amount owed. It has been proven that it can take as long as 40 years to clear a credit card balance. Try to pay extra each month and reduce the credit limit to prevent further spending.
Eat a Meal Before Going Food Shopping and Save Money
Shopping when hungry is a sure-fire way to end up buying food that isn’t needed. Have a decent meal and try to shop on the basis of what is on the shopping list. Human wants are unlimited, but only so much food is actually needed.
Check Benefit Entitlement to Improve Family Finances
After paying thousands in taxes it is only fair that some state help is taken during times of financial hardship. For example, if disabled check to see if eligible for Carers Allowance. It isn’t a means-tested benefit.
Save Money By Cutting Down on Drinking & Smoking
Drinking and smoking are heavily taxed so cutting down on these will help save a lot of money. Fewer work days will be missed as a result of alcohol-related sickness which is an important consideration with new, revised work sickness policies. Fewer bad decisions with money will also be made.
Buy Basic Alternatives to Branded Products
Unbranded products may not look as attractive as branded alternatives but there is rarely a lot of difference in overall quality. The difference is in the price so this change will cut the weekly grocery bill considerably.
Deal with Debts
Don’t let debt problems linger as they will simply get worse. Rather than struggling on it may be better to enter a Debt Management Plan, bankruptcy or an Individual Voluntary Arrangement. It depends on how much is owed regarding which option should be opted for.
Saving money on household bills helps tackle financial problems quickly. Be prepared to put in some time to identify the best strategies moving forward. It is always advisable to talk to a qualified, impartial debt counselor to deal with debts. Those interested in cutting household bills may also wish to read about ways to cut gas and electricity bills and reduce mortgage payments.