The credit crunch has brought hardship to millions of families. Securing loans used to be easy, but that situation has changed. All that are left are bad debts and credit problems that need to be resolved. It is necessary to improvise and identify clever ways to save money on every-day items and services.
Save Money by Paying by Direct Debit
A number of companies have calculated that those who settle bills by anything other than direct debit tend to be more likely to pay late or not at all. The amount charged by companies is starting to reflect this fact. Settling monthly bills by direct debit can reduce monthly bills by about 10%.
Make Lunch Before Leaving For Work
It is possible to save money every week by preparing a work lunch in advance. Buying dinner from bakeries and local supermarkets isn't cheap and sets the average business person back about £100 a month.
Significant Savings on Insurance
Paying the insurance by monthly instalments isn't the most cost effective method to cut bills. A 15% premium is paid for this convenience. Try to pay a full year in advance and benefit from this cost reduction.
Cheaper Groceries
Many assume that by going to Tesco that they will be getting the cheapest deals and save money. Whilst it may be cheaper than the local convenience store, it certainly isn't cheaper than the likes of Aldi, Netto and Lidl. They may not be as lavish but shopping at these places will ensure significant savings.
Buy Clothes That Are on Sale
Buying designer clothes at premium prices isn't smart. Wait for the sales and cut bills by up to 70% on purchases. Try to buy clothes at opposite seasons and save them until the weather changes - it won't be long. Learn how to spot fake designer clothes on eBay as this is a common pitfall.
Short Life Products
The supermarkets are full of discounts for those who are prepared to look at all the shelves. It is possible to buy short life products and save money. There are also a multitude of 2 for 1 offers.
Avoid Credit Card Debt
If the money isn't there, don't buy anything. Paying for things in cash creates realism. Building credit card debt is a bad idea as it represents the most inefficient form of borrowing. Sadly, most people use it to store long term debt.
Debt Consolidation Loans
Save money on outgoings by consolidating debts, but don't extend the term. Consolidate high APR debts, but keep the term the same or ideally reduce it. Debt consolidation loans can be a great asset if used correctly, but are more difficult to get during the current credit crunch.
Following the ideas above will help most people to secure significant lifestyle changes. It is natural to build excesses into spending, but there is no better time to reduce them than during a credit crunch.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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