The cost of living crisis means our purse strings are tighter than ever and we’re all looking for ways to lower our bills.
Some bills are unavoidable, but there are a few ways to help you cut your costs.
We’ve rounded up everything you need to know about cutting everything from your broadband to your water bill, and even your food shop and mortgage.
Before you read on, go through your finances and bank statements first so you know how much you’re paying each month.
Once you know you’re outgoings, you’ll have a much better idea of how to reduce your bills.
Broadband
If you’re out of contract, chances are you’re paying too much for broadband – but there are ways to lower your bill.
First of all, take a look at your current speed – do you need this type of deal, or can you get by with something slower and cheaper?
Next, start comparing prices elsewhere, then either see if your current provider can give you a better deal, or leave and go elsewhere.
If you are still in contract, make a note of when your deal expires so you’re ready to check prices nearer the time.
If price rises are written into your contract, your provider most likely won’t let you leave mid-contract without paying an exit fee, although do check your terms and conditions to be sure.
Mobile
The principle of haggling, or switching and ditching, also applies to out-of-contract mobile customers.
Take a look at how many minutes, texts and how much data you currently have, so you can find similar plans that suit your needs.
You may find you’re actually paying too much right now for allowances that you’re not using.
Once you know the type of deal you’re looking for, compare prices elsewhere. You’ll find SIM-only plans tend to be the cheapest.
Next, call up your current provider to see if they’ll lower your bill – if they won’t match the price, and you’re out of contract, you can leave and go elsewhere.
Again, if you’re in contract, make note of when your deal is due to come to an end.
Insurance
Many money-savers also have great success in lowering the price of their car and home insurance by looking around for better prices.
Start comparing prices shortly before your current insurance policy comes to an end.
MoneySavingExpert says 21 days before your home insurance is due to expire is the prime time to find the cheapest deals, while it’s 23 days for car insurance.
Make sure you always use multiple comparison sites, as some insurance firms don’t appear on all of them.
Then like your phone and broadband, you have the option of either seeing if your current provider will match the best price you’ve seen elsewhere, or you can switch to the better deal.
You should also see if you’d be eligible for cashback on your insurance policy on sites such as Topcashback and Quidco.
Food shop
The price of food is a worry for many families right now, but luckily there are many ways to cut costs in the supermarkets.
Try swapping more expensive branded goods for cheaper supermarket-own labels.
This is also known as the “Downshift” challenge and it is estimated you could save around 30% on your food bill.
Next, don’t just stick to one aisle in the supermarket.
You can often find cheaper versions of the same products in the world foods and baby sections.
Another tip is to avoid shopping at your local convenience store if you can – these are always more expensive than going to a big shop.
Finally, make sure you’re signed up to all the loyalty schemes so you can get money back, and keep an eye out for those yellow sticker deals.
We’ve got more supermarket tips to save you money here.
Debts
First of all, if you’re in debt and struggling, talk to one of the following organisations for free:
- Citizens Advice (0808 223 1133)
- StepChange (0800 138 1111)
- National Debtline (0808 808 4000)
The below tips are just suggestions of ways that could slash your debt and may not work for everybody.
If you have credit card debt that you’re paying interest on, see if you can switch your balance over to a 0% balance transfer card.
This means you pause all interest payments while you’re paying the amount on the new card – so you become debt free quicker.
But these cards need to be used responsibly. Don’t make any purchases on them and always make your minimum repayments at the very least.
You also need to make sure you can pay off the whole balance before your 0% interest period finishes or you’ll start paying the representative APR.
Finally, before you apply for one, use a free eligibility calculator first to check your chances of being accepted.
Check for the best 0% balance transfer deals based on how long you reckon it will take you to clear your debt.
Some will come with fees, so remember to take this into account as well. Can you clear your debt off quicker with a shorter card that comes with no fees?
If you’re in overdraft debt, see if you’re able to switch to an account with a 0% overdraft, so you have more time to pay it off without being charged interest.
Another alternative could be to look at a 0% money transfer card. These are a type credit card that pays cash into your bank account, for a one-off fee.
You can then use this money to pay off your overdraft if you absolutely need to borrow – but again, make sure you’ve then got a way to pay off the balance owed on the money transfer card.
Once your overdraft is cleared, you might want to consider asking your bank to close it so you’re not tempted to run into debt again.
For unsecured loans with a high interest rate, you might be able to save money by taking out another loan with a cheaper rate to pay your current one off.
The idea is that you’re using a cheaper loan with a lower APR to pay off the existing loan.
But a word of caution – use a free online loan calculator first to check how much you’d pay overall for both loans you’re comparing – and be wary when taking out more debt.
Check as well if your existing loan provider will charge you for paying off your debt early.
Again, a 0% money transfer could also be an option if you need to pay off an expensive loan – but make sure you’re able to then pay off the credit card.
Mortgage
Mortgage costs have shot up this last year, due to ten consecutive interest rate rises from the Bank of England.
The base rate was 0.1% in December 2021 but now sits at 4%.
If you’ve got a fixed rate mortgage deal that is about to expire, you’ll likely face a huge increase in your repayments when you come to remortgage due to how much deals have risen by.
When your fixed rate ends, you’ll roll on to your lender’s standard variable rate (SVR) – these are normally more expensive – unless you fix into another deal.
Some lenders let you lock in a rate six months in advance – and many more let you lock in three months ahead – so be prepared and start checking now.
There are many factors to consider when fixing into a deal. For example, how long do you want to fix for? How big of a mortgage do you have?
Speak to a broker to work out the best options for you.
Energy
At the moment, the best way to lower your energy bill is to use less energy.
This can be through simple measures like turning your thermostat down – British Gas says this can save you £115 a year on average – or turning off appliances from standby.
You should also make sure your home is as well insulated as possible. Easy ways to do this include buying rugs if you have floorboards, or making your own draught excluder.
Finally, check you’re receiving all the energy help that is available to you.
For example, there is a £400 rebate that is coming to an end this month, with the final £67 instalment being issued to households any time now.
Other schemes include the Warm Home Discount, worth £150, Cold Weather Payments, worth £25 each, and Winter Fuel Payments, worth up to £600.
Many energy providers also offer free cash grants that you don’t need to pay back. British Gas runs a hardship fund for anyone – not just its customers – where you could get £1,500.
Council tax
It is possible to challenge your council tax, if you suspect you’re in the wrong band.
But you need to do your research first – if it turns out you’re in too low of a band, your bills will be pushed up and this could also affect your neighbours.
See more information on challenging your council tax band here.
There are also lots of different scenarios where you could be entitled to a discount of up to 100% off your council tax bill.
For example, you could get 25% off if you live alone, or 50% if everyone living in your household is disregarded from paying.
A 100% discount could be awarded to someone with a “severe mental impairment” living alone, or an all-student household.
You may also be eligible for up to 100% off your bill if you qualify for Council Tax Support (sometimes called Council Tax Reduction) if you’re on a low income or certain benefits.
Water
You can’t switch water providers – but that doesn’t mean you can’t cut your water bill.
Using less water is the most obvious way to do this – for example, reducing your shower time by just one minute or making sure taps are switched off when not in use.
You could see if a water meter would benefit you.
Martin Lewis suggests, as a general rule of thumb, that you could save cash if you have more or the same number of bedrooms in your house than people.
Use the free calculator on the Consumer Council for Water website to check if you’d benefit from a water meter.
Households can also bag a range of free water-saving devices through Save Water Save Money.
The gadgets include shower heads which help regulate water usage, tap inserts to regulate water flow, and cistern bags, so each flush uses less water.
Subscriptions
There are so many subscription services out there – from Amazon and Netflix to your gym – but how many do you actually use?
Go through your bank statements and look for any regular payments, then cancel any ones you can do without.
If you pay monthly, you should be able to cancel that service immediately and the payments will stop.
If you’ve made an annual payment, you sometimes might be able to get a refund on the months you have remaining.
Read the terms and conditions carefully to check your rights when it comes to cancelling.
