Lockdown savings grace
IF you are trapped at home by the coronavirus lockdown at least you can put all that spare time to work, by sorting out your finances and saving money.
Britons could save up to £2,171 this year, by reviewing their insurance, energy supplier, credit card bills and broadband and TV packages.
Getting the best deal on a range of services is more important than ever, especially if your income is feeling the squeeze. Parents with children at home could also take this opportunity to teach them how to handle money, and build their financial resilience for the future.
The following savings may not all apply to you, but even one or two could net a handy return.
If you are always too busy to shop around for a cheaper car insurance policy at renewal, you no longer have that excuse.
Comparison site GoCompare.com reckons people who shop around can save up to £256, plus up to £100 by switching their household insurance. Money expert Anders Nilsson warned you may face penalties for switching insurance policies mid-term.
“By acting now, you can be ready for when the policy does expire. Be sure to compare like-for-like cover as well as costs,” he said.
Switching to a cheaper energy supplier could save you £476, and is important as bills rise as we spend more time at home.
Nilsson warned: “Around 11 million households are on a standard variable tariff with a big energy provider, and almost certainly paying too much.”
Dig up your bank statements and look for direct debits, memberships and donations you no longer need: “Our research suggests people save more than £28 a month this way, or £340 a year.”
The average household credit card debt now stands at £2,655, and could rise sharply if the crisis drags on.
At the average APR of 19.87 per cent, interest payments would cost £38.25 a month.
Switching to a zero per cent balance transfer card could save you £459 a year on interest. Halifax, MBNA andVirgin offer introductory rates of up to 29 months.
You could also be paying over the odds for broadband and digital TV.
“Switching from a premium TV and broadband bundle to a basic fibre and Sky Cinema deal could save £540 a year,” Nilsson said.
Dan Scholey, chief operating officer at money management app Moneyhub, said that while the schools are closed, parents can spend time working on the next generation’s financial skills: “Teach them things they do not learn in the classroom, such as how to handle their day-to-day finances.”
Maybe set them a saving goal, offering a new toy, game or more pocket money for extra chores: “Encourage children to budget and work toward a goal.”
Kids love tech and money-saving apps can show them how small sums grow over time.
Scholey added: “It can bring money to life and make finance fun.”