How to save money on bills

How to save money on bills

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Saving money on your bills can seem like a tough ask as normally you’ll need to change quite a few things before you start noticing a real difference to the bill. However, by following these simple steps to saving, you can start making real changes that’ll lower your outgoings and leave you in a better position to save money on your bills.

How to pay off debt

The best way to save money on your bills is to always pay them on time so you don’t incur late payment charges. Once you’ve got this sorted, you can shop around for a better deal and start being more efficient at home to keep the costs down.

How to pay off debt

The best way to save money on your bills is to always pay them on time so you don’t incur late payment charges. Once you’ve got this sorted, you can shop around for a better deal and start being more efficient at home to keep the costs down.

1. Pay your bills on time

Paying your bills on time is a sure-fire way to make sure that you keep your costs under control. Although it might seem like you’d be better off keeping the money for yourself, by missing bills payments, you’ll start racking up extra charges that will cost you much more in the long run. Late payment charges vary depending on the supplier you’re with, but you can generally expect to pay at least an extra £5 for every missed payment.

One of the advantages of a thinkmoney Current Account is that your bills are always accounted for as when you set up the account, you can tell us how much your bills are and when they get paid. We’ll then put this much aside whenever you get paid so that your bills are always guaranteed to be paid.

2. Look at switching providers

It’s very easy to get used to the amount you pay for your monthly bills, but with a little research, you might find that you could be paying much less. Households stand to save an average of £350 when switching providers, and by switching broadband providers and the end of a contract, you could also save an average of £69.

The best time to switch is when your contract is due to come to an end, as this is when providers will often hike up their prices. Take a look at the terms sent over by your provider when you signed up and check how long your current deal is set to last. Put a reminder in your diary about a month before this date and start looking for a better deal elsewhere.

For mobile contracts, have a look at how much data you’re using, as this is the most common reason you’ll be spending more than you should. If you’re well under your data allowance, look for a slightly cheaper deal with less data. If you’re always going over, you’ll be far better off getting a deal with unlimited data included.

Comparison sites like Uswitch and Compare the Market let you compare the best deals based on your circumstances, so give them a try when it’s time to change provider. You should also bear in mind that your existing provider might be willing to give you a better deal if you’re thinking of leaving them, so once you’ve found a deal you like, give them a call and see if they can match or better that deal. Once you’ve done this, you’ll be in great shape to save more money on your utilities.

3. Check you are paying the right tax

As many as 400,000 households in the UK are in the wrong council tax band, so checking yours could be a quick and easy way to pay less on your tax. It only takes a few moments to check your council tax band, and you can do it online here:

Search council tax band

You can also get more information on how the bands work to see if you’re in the right one here:

How council tax bands work

The best part about finding out you’re in the wrong council tax band is that as well as reducing your council tax bill, you’ll also be eligible for a rebate for all the extra money you’ve paid on the incorrect banding.

4. Try and be more efficient

Aside from switching suppliers and making sure you’re paying the right amount of tax, you can make a huge difference to your bills by being more efficient and mindful at home. A few simple changes at home can add up to a big difference when your bills are totted up.

For example, turning down your thermostat by just 1°C could cut 10% off your heating bill. Another popular way of keeping bills down is to switch from having baths to showers. For more tips like this, check out our blog on how to save at home.

Budgeting tips to save hundreds while at home