Beat the credit crunch with these easy steps
The Office for National Statistics now believes the recession began in April of
last year, rather than in the second half of the year, which explains why
household pockets are close to empty.
It has rarely been as important to make your cash stretch as far as you can.
Here are 45 steps to help you fight the credit crunch:
Get free stuff
1. You can get free samples, gifts, mobiles, electronics, baby stuff and all
sorts of other stuff from internet sites such as
www.freestuff.me [http://www.freestuff.me]
2. If you like to work out, use the web to find free introductory offers for
gyms and health clubs.
3. Swap old books for new at readitswapit online.
4. Download free music and a free audio book during a seven-day trial at sites
such as emusic.
Make the most of your age
5. Travel and entertainment discounts are available to students. Details are
available from NUS.
Manage money efficiently
6. Don't leave money lying around in current accounts earning no interest. Move
it to a savings account.
7. Check all statements thoroughly as mistakes do happen, which can cost you
dear.
8. Pick a current account which meets your needs. If you are not good at
watching your balance, get one which gives you a buffer so you don't get hit by
charges every time you dip into the red.
9. Most people don't use the fringe benefits which come with packaged current
accounts. If you are paying an annual fee, consider switching to a no-fee bank
account. It'll save you more than £100 a year.
10. Never overdraw from your bank without asking. You'll be hit with stiff
penalties.
11. Keep as much as possible of your money on deposit in tax-free Isas.
12. Keep an eye on your interest rate and switch if returns fall.
13. Check out online savings accounts for better interest rates. Some accounts
have attractive bonuses for a year. Don't forget to move elsewhere when the
bonus period is over.
14. When your Isas are full, tax on savings can be minimised by holding money in
the name of a partner in a lower tax band, or who doesn't pay tax at all.
15. Make the most of the personal tax allowances of all the family. Each child
can earn £200 interest tax-free on cash given to them by parents.
Slash energy bills
16. Do not leave electrical appliances on standby. Switch them off. Unplug
chargers.
17. Pay bills by direct debit and consider dual-fuel options.
18. Only pay for energy you use. Don't live with estimated bills; give the
companies your exact readings.
19. Turning the thermostat down 1°C can save £40 annually.
20. Using energy-efficient light bulbs can save £30 a year.
21. Washing at 30°C rather than 40°C uses 40% less electricity. Hang clothes out
to dry rather than tumble-drying.
22. Keep your freezer at least three-quarters full, and defrost frozen food in
your fridge. It will act as an ice pack.
23. Check with your local authority what insulation grants are available to
improve your home's energy efficiency.
Borrow smart
24. If you have savings, pay off your debts.
25. Spendaholics who can't control their shopping should cut up their cards and
stay out of the shops.
26. If you pay off your bill each month, opt for a cashback card which will
refund part of your spending.
27. Never use credit card cheques.
28. If you have built up big balances, try switching to a zero-interest card.
These are not as easy to come by as they were, so clean up your credit rating
first with Experian.
29. Opt for a card which doesn't load you with extra fees for use abroad.
Travel
30. Book travel as far in advance as possible and research the best deals.
31. If you can't afford a holiday in a flash resort but still want to go abroad,
consider house swapping.
32. When abroad and using debit or credit cards, ask to pay in local currency
rather than sterling. Paying in local currency is generally cheaper as your own
bank's conversion rate will normally be better.
33. You can qualify for free medical treatment in some countries if you apply
for a free European Health Insurance Card.
Cut your phone costs
34. Sell unwanted mobiles on http://www.mopay.co.uk, and constantly check you are on a
good tariff.
35. When abroad, ask friends to text you, as these can be received for free. If
you need to make calls, buy a local pay-as-you-go Sim card. This will let you
receive and make calls at a fraction of the cost.
36. When calling friends and family overseas, use one of the cheap calling
services advertised on the internet. You get an access number which allows you
to call for a fraction of the normal charge.
Put brakes on motoring bills
37. Change to a smaller car to cut insurance and petrol bills.
38. Find the cheapest petrol at petrolprices.com.
39. Shift through the gears quickly, as driving at lower revs saves fuel, as
does allowing the car to slow naturally rather than braking. Driving with one
tyre under-inflated costs 8% more in petrol. Inflating tyres properly could save
£115 annually.
Mind the mortgage
40. Get the best deal you can by checking offers and doing your sums. Always
include additional fees. If you need to save money, switch to an interest-only
mortgage, or consider extending the term. If in serious trouble investigate
mortgage-to-rent schemes.
41. If you bought household insurances from your lender, do an online check. You
will find cheaper cover elsewhere.
42. Raise extra cash by taking in a lodger.
Shop clever
43. Always pay by credit card, as this provides consumer protection on items
costing more than £100 if the company collapses.
44. Don't be afraid to haggle. Find any fault you can with the item you want to
buy, and use it to get a reduction.
45. Swap rather than shop with recycling sites such as iswap, readitswapit and
http://www.freecycle.org. Or sell your old stuff on eBay before buying new.
The Office for National Statistics now believes the recession began in April of
last year, rather than in the second half of the year, which explains why
household pockets are close to empty.
It has rarely been as important to make your cash stretch as far as you can.
Here are 45 steps to help you fight the credit crunch:
Get free stuff
1. You can get free samples, gifts, mobiles, electronics, baby stuff and all
sorts of other stuff from internet sites such as
www.freestuff.me [http://www.freestuff.me]
2. If you like to work out, use the web to find free introductory offers for
gyms and health clubs.
3. Swap old books for new at readitswapit online.
4. Download free music and a free audio book during a seven-day trial at sites
such as emusic.
Make the most of your age
5. Travel and entertainment discounts are available to students. Details are
available from NUS.
Manage money efficiently
6. Don't leave money lying around in current accounts earning no interest. Move
it to a savings account.
7. Check all statements thoroughly as mistakes do happen, which can cost you
dear.
8. Pick a current account which meets your needs. If you are not good at
watching your balance, get one which gives you a buffer so you don't get hit by
charges every time you dip into the red.
9. Most people don't use the fringe benefits which come with packaged current
accounts. If you are paying an annual fee, consider switching to a no-fee bank
account. It'll save you more than £100 a year.
10. Never overdraw from your bank without asking. You'll be hit with stiff
penalties.
11. Keep as much as possible of your money on deposit in tax-free Isas.
12. Keep an eye on your interest rate and switch if returns fall.
13. Check out online savings accounts for better interest rates. Some accounts
have attractive bonuses for a year. Don't forget to move elsewhere when the
bonus period is over.
14. When your Isas are full, tax on savings can be minimised by holding money in
the name of a partner in a lower tax band, or who doesn't pay tax at all.
15. Make the most of the personal tax allowances of all the family. Each child
can earn £200 interest tax-free on cash given to them by parents.
Slash energy bills
16. Do not leave electrical appliances on standby. Switch them off. Unplug
chargers.
17. Pay bills by direct debit and consider dual-fuel options.
18. Only pay for energy you use. Don't live with estimated bills; give the
companies your exact readings.
19. Turning the thermostat down 1°C can save £40 annually.
20. Using energy-efficient light bulbs can save £30 a year.
21. Washing at 30°C rather than 40°C uses 40% less electricity. Hang clothes out
to dry rather than tumble-drying.
22. Keep your freezer at least three-quarters full, and defrost frozen food in
your fridge. It will act as an ice pack.
23. Check with your local authority what insulation grants are available to
improve your home's energy efficiency.
Borrow smart
24. If you have savings, pay off your debts.
25. Spendaholics who can't control their shopping should cut up their cards and
stay out of the shops.
26. If you pay off your bill each month, opt for a cashback card which will
refund part of your spending.
27. Never use credit card cheques.
28. If you have built up big balances, try switching to a zero-interest card.
These are not as easy to come by as they were, so clean up your credit rating
first with Experian.
29. Opt for a card which doesn't load you with extra fees for use abroad.
Travel
30. Book travel as far in advance as possible and research the best deals.
31. If you can't afford a holiday in a flash resort but still want to go abroad,
consider house swapping.
32. When abroad and using debit or credit cards, ask to pay in local currency
rather than sterling. Paying in local currency is generally cheaper as your own
bank's conversion rate will normally be better.
33. You can qualify for free medical treatment in some countries if you apply
for a free European Health Insurance Card.
Cut your phone costs
34. Sell unwanted mobiles on http://www.mopay.co.uk, and constantly check you are on a
good tariff.
35. When abroad, ask friends to text you, as these can be received for free. If
you need to make calls, buy a local pay-as-you-go Sim card. This will let you
receive and make calls at a fraction of the cost.
36. When calling friends and family overseas, use one of the cheap calling
services advertised on the internet. You get an access number which allows you
to call for a fraction of the normal charge.
Put brakes on motoring bills
37. Change to a smaller car to cut insurance and petrol bills.
38. Find the cheapest petrol at petrolprices.com.
39. Shift through the gears quickly, as driving at lower revs saves fuel, as
does allowing the car to slow naturally rather than braking. Driving with one
tyre under-inflated costs 8% more in petrol. Inflating tyres properly could save
£115 annually.
Mind the mortgage
40. Get the best deal you can by checking offers and doing your sums. Always
include additional fees. If you need to save money, switch to an interest-only
mortgage, or consider extending the term. If in serious trouble investigate
mortgage-to-rent schemes.
41. If you bought household insurances from your lender, do an online check. You
will find cheaper cover elsewhere.
42. Raise extra cash by taking in a lodger.
Shop clever
43. Always pay by credit card, as this provides consumer protection on items
costing more than £100 if the company collapses.
44. Don't be afraid to haggle. Find any fault you can with the item you want to
buy, and use it to get a reduction.
45. Swap rather than shop with recycling sites such as iswap, readitswapit and
http://www.freecycle.org. Or sell your old stuff on eBay before buying new.