Beat the credit crunch by saving money

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Beat the credit crunch by saving money

Saturday, February 28th, 2009    Subscribe To Our Feed

The average British credit card holder is in over £2000 of debt. We spent years buying 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 many people. Your home is probably the most important thing you own, and something that it is certainly worth taking out a loan for. But that doesn’t mean that it’s an inevitable burden we all have to put up with. Shop around and make sure your deal really is the best one for you. There are thousands of alternatives out there, you just need to be sure you’re getting the most out of your options. Overpayments are not a bad thing – if you find yourself with a bit of extra cash to spare one month, don’t keep it aside to fritter away on things you don’t need, make extra payments whenever you can and you could save thousands on interest in the long term.

Credit cards: Resist. Try not to spend money you don’t have, if you won’t be able to afford to pay it off that month, just don’t buy it. Try to pay off any debt you owe as quickly as possible (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. Don’t go beyond your means.

Car: Owning a car is a very expensive business. It’s not just the cost of the car itself, but there’s road tax to consider, maintenance, insurance, servicing, MOT… And the list goes on. Think about whether you really need a car. 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 a cupboard 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 a bit of practise at how to advertise on there you could find that you could make a nice little extra bit of cash out of your old junk. Give it a go - you’ll never know until you try!