Save money and beat the credit crunch

Posted on February 28, 2009
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The average British credit card holder is now in over £2000 of debt. We spent years spending what we wanted when we wanted it but it’s clear from the slump in retail sales that the time has come to tighten our purse strings. Here are a few tips on how to save money and make the most of what you already have.

Mortgage: The mortgage is the most expensive outgoing for a lot of people. Your home is probably the most important thing you own, and definitely 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 and make sure you really can’t find a deal that would be better for you. There are thousands of alternatives out there, you just have to make sure you’re getting the most out of what’s available. 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 on your mortgage 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 you can (don’t just pay the minimum each month if you could afford more) and if you don’t think you can resist spending more on your cards again, cut them up. Just don’t go beyond your means.

Car: Owning a car can be an expensive business. It’s not just the cost of the car itself, but also road tax, maintenance, insurance, servicing, MOT… The list goes on and on. Think carefully about whether a car is really necessary. 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 shop 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 junk around your house, don’t just ignore it or dump it off at your local charity shop. If you’ve got drawers full of clothes you don’t wear or gadgets you thought would be useful but never did use, there is someone out there who will want them. Ebay is a wonderful thing, it’s quick and easy and once you get practised at how to advertise on there you could find yourself making a nice little extra bit of cash out of your old junk. Give it a go, or you’ll never know unless you try!

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