Save over £1000 in 2012

Guest editorial from Money Supermarket.com

After a tough 2011, the outlook for 2012 unfortunately does not look any better. With the Government pushing through benefits caps, the rising cost in petrol prices and insurance also on the increase, it has never been more important to get your finances in check.

So why not start the year off with a money make-over and try and save you and your family over £1000.

Price comparison site MoneySupermarket.com has launched their new advert urging families to switch to a better deal on their insurance, energy and money products. The advert can be seen at the bottom of this article.

Kevin Mountford, head of banking at the website said “Significant savings can be made by switching to a better deal and you may find it could be the best resolution you have ever made.”

Save on your insurance

Both car and home insurance have been steadily on the rise over the last couple of years.

According to consumer intelligence it is possible save over £500 by finding a cheaper deal on both your car insurance and home and contents insurance at MoneySupermarket.com.

Here are some extra tips on how to save on your insurance costs:

  • Raise the excess payment. This can reduce your annual premium but remember this is the amount you will have to contribute to any claim you make so make sure it is an amount you can afford.
  • Fit an alarm to your car and your home. Insurance is all about the risk involved and by reducing this, it will reduce your premiums. For example by fitting a standard NACOSS alarm to your home it can reduce your premium by up to 7.5%.
  • Get rid of any expensive add-ons. Do you really need accidental damage on your home insurance or legal cover on your car insurance? If not then remove these from your policy.
  • Maintain your no claims bonus. The more years you have under your belt, the bigger the discount.
  • There is an extra charge that the insurers levy when paying by monthly direct debit. If possible pay annually in full.

Save on your credit card and loan

The banking sector is becoming more competitive, so lenders are fighting tooth and nail for your business with new and attractive deals on credit cards and loans.

If you have any outstanding debts, then transferring them to either a 0% balance transfer credit card or a cheaper loan rate can save you hundreds of pounds in interest payments.

For example, on an average loan rate of 11.75% on a £7,663 loan, switching to a cheaper rate of 6.4% can save you £220.

“These savings don’t even require a change of lifestyle, but simply a few minutes of research to check what deal you are currently being offered, comparing it to other products and changing it to a more competitive deal if necessary.” said Kevin Mountford.

Save on your utility bills

Gas and electricity is a hot topic at the moment. Whilst energy suppliers have now announced price reductions, they pale into comparison to their price increases at the back end of 2011.

Many households are still stuck on a suppliers ‘standard tariff’ which is usually one of their most expensive tariffs.

By using an energy comparison site, it is possible to save up to £341 by either switching to a new supplier or even by opting for a cheaper ‘online tariff’ with your current supplier.

The same goes for your home phone and broadband deal.

Usually you are tied into a contract for between 12 and 24 months, but if you are outside of this either shop around for a new deal or even haggle with your current company for either a cheaper price or more for your money.

Here is the MoneySupermarket advert to help inspire you.

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