3 unexpected ways that you could be cutting costs
In order 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 electrical 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 it it only seems like a small amount – even £5 a month can add up to £60 over the course of a year!
Of course, if you do need access to money urgently, there is always the possibility of bad credit loans or payday loans. Loan bird have an extensive selection of cheap loans from over 50 different providers:
If you’d prefer to save on any potential interest costs, then you may consider trying to cut costs in other areas. Any extra money might come in handy, so you should try to save wherever possible.
Here are 3 uncommon ways that you could be cutting out just that little bit extra each month:
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.
Cheaper loans will allow you to save more money over a period of time, as the interest rates will materialise as much cheaper monthly repayments. This is why most people tend to look for the lowest APRs on any financial product!
Many people have multiple loans – all of these are likely to have completely different interest rates. This leads to complicated payment schedules, multiple payments leaving your bank statement and a potential loss of money due to multiple interest payments at different rates.
When you consolidate your loans, you are effectively taking one larger loan out to cover the total outstanding balance across all of your account. 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, if you were 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.
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 a 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 payment, reducing your balance much quicker. At the end of the interest free period, you may consider 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 that if you apply for a credit card and are rejected, however, 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!
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 expensive, though individual plans can add up over a longer timescale.
Most of these services 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 5 individual users for £15 a month – that’s £3 each, allowing you to save roughly £7 each month, or £84 each year…
These unorthodox methods might not be as effective as more common money saving techniques, such as shopping around for the best insurance or energy rates. They do allow you to put a little bit more than you otherwise would have, so might be worth considering!
If you do need to view a great range of low cost loans, you can view how Loan Bird might be able to help online.