How to Save Money During the Recession

A Guide to Bill Busting and Surviving the Economic Downtown

Aug 19, 2009

As the recession continues to hit consumers hard in the pocket, many homeowners are looking for ways to cut costs and tighten their pursestrings.

When looking at outgoing expenses, it is impossible to cut out the basic household necessities such as heating, water and groceries. But a quick look at the long list of bills and direct debits can reveal just where costs can be cut. The classic bills that can be axed are the telephone bill, extra television subscriptions and broadband. As well as saving money, a few simple steps will have a huge impact on a person's carbon footprint.

Regular Checks can Reduce Bills

Sticking with the same energy supplier could in fact cost a consumer more. By shopping around competitive deals can be found with gas, electricity, telephone and broadband suppliers. Money can also be saved on a mortgage.

It is advisable to closely read the contract before switching supplier though as there can sometimes be hidden penalties. The cheapest and easiest way to pay for bills is usually by direct debit. This is because many companies charge a handling fee to accept a credit or debit card payment. Therefore it is wise to check how bills are being paid for. Also look to see what comes out and when so budgeting is made easy.

Become More Energy Efficient

With fuel bills likely to increase by 20% in the next few years, it is important to get into the habit of making cuts now. Not only could it save as much as £250 a year but it will also reduce carbon emissions. After all nearly half of UK emissions come from homes.

By insulating lofts and cavity wall insulation heating bills can be dramatically reduced. There are currently a wide range of grants available towards the cost and people from low income families could also be eligible for free improvements.

Alternatively you can do it yourself. Just adding another layer of insulation to the recommended thickness of 270 millimetres could save as much as £150 a year.

Ensure heating is only on when it is needed. By using the timer setting this can be achieved easily. By turning the thermostat down by just one degree Celsius, a saving of 10% could be achieved, plus it will be difficult to notice a difference in the temperature in the home. On extra nippy days, wear a jumper, socks and slippers.

The copyright of the article How to Save Money During the Recession in Home Owner Tips is owned by Jayne Elliott. Permission to republish How to Save Money During the Recession in print or online must be granted by the author in writing.