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3 Things That Could Help You Cut Some Costs

3 Things That Could Help You Cut Some Costs

3 Unexpected Ways To Cutting Costs

If you’re looking to make the most of your money, it’s important to look for the most cost efficient ways to live. Whether that’s cutting down the cost of your food shop, searching for the best day to day deals or even just being careful with your monthly electricity usage.

There are countless ways that you can cut down your monthly expenditure. Some of these are less common than others, but can still be extremely useful. Don’t be put off if it only seems like a small amount – even if it’s just £5 a month, it can add up over the course of a year and go towards paying an end of year bill or something!

Here are 3 uncommon ways that you could be cutting out some extra cash each month:

LoanBird advises to consolidate loans to cut costs

Consolidate Your Loans

Loans incur interest charges based on how long you hold the loan for, the amount of the loan and how you pay it back. These can be as low as 3% or upwards of 100% of your balance depending on what type of loan you have.

There are cheaper loans that’ll allow you to save more money over the loan period, as the interest rates will materialise a much lower form of monthly repayments.

Many people in the UK have multiple loans – all of these are likely to have completely different interest rates. This leads to complicated payment schedules, multiple payments leaving your account and a potential loss of money due to multiple interest rates.

When you consolidate your loans, you are effectively taking one larger loan out to cover the total outstanding balance across all of your loans/credit. It might seem counter-intuitive to take out debt to cover more debt, but a consolidation can combine all of these loans into one monthly payment.

As a general rule of thumb though, if you are wanting to consolidate your debt, you should make sure that the total interest payment each month would work out as less than what you currently pay, obviously.

Balance Transfer Your Credit Cards

Another money-saving method that often gets overlooked is balance transferring your credit card debt. This is largely dependent on having a good credit score, as you’re more likely to get accepted for multiple cards with higher credit limits, but can still be helpful for anyone with credit card debt.

Many credit card providers offer an introductory period (this varies from provider, though is commonly 1 year) of interest free balance transfers. If you are paying monthly interest on one credit card, you can save money by transferring the balance to a different bank for the duration of their interest free period.

This will allow you to either save the money you would have been paying as interest, or use it to make larger monthly payments to help reduce your balance much quicker. At the end of the interest free period, you can then look at transferring it to a third bank for an even longer interest free period!

Most lenders offer a painless balance transfer platform, allowing you to apply quickly online or over the phone. It should be noted, if you apply for a credit card and are rejected, it can show up as a negative impact on your credit file.

Just as a side note: if you do balance transfer your credit card, you might consider keeping the old account active! Don’t use the card if you don’t need it, as keeping an open credit card with no balance can actually increase your credit score due to less credit utilsation!

a couple enjoying watching someone on a laptop

Family Related Plans

As we know streaming services are increasingly popular. Music, movies, TV and even next day delivery can always be bought using a subscription based service.

In houses of multiple occupancy (house-shares, families with multiple adults etc…), it isn’t uncommon for more than one person to pay for a monthly subscription just for themselves. Most of the time, these aren’t that expensive, however, individual plans can add up over time.

Most of these services do offer the option for a family plan. Though the terms and conditions do vary, a family plan is usually valid for everyone who shares your address. They are more expensive than individual plans, but if everyone who was using the service chipped in every month, you can save a significant amount of money.

Spotify, for example, is £9.99 every month. They offer a family plan for 6 individual users for £16.99 a month – that’s just under £3 each, allowing you to save roughly £7 each month, or around £84 each year…

These unorthodox methods might not be as effective as more common money saving techniques, such as – shopping around for car insurance or energy rates. They do allow you though – to put a little bit more away than you otherwise would have, so, still might be worth considering!

Of course, if you do need access to money urgently, you can view LoanBird’s options online with absolutely no obligation. Whether it’s a bad credit loan or a payday loan, LoanBird have an extensive selection of loans from over 50 different lenders that can help.

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