How to detox your finances for 2019

 

You can easily improve your financial position with some straightforward steps: 

 

 

After the binge in spending around the festive season you may have built up debts on your credit cards. Interest rates on credit cards are sky high. Try to pay down these debts as quickly as possible, if necessary using a cheaper short term bank loan.

 

Some credit cards do offer 0% interest rates for a time, but after these ‘teaser’ deals end the interest rate goes north. Latest data show credit card debts rising quickly in Scotland – buck the trend by lowering yours to zero.

 

 

Households from Shetland to Dumfries should add this to their list. Ask your existing suppliers for a better deal, and do comparison price checks online. Switching is quick and simple and usually a sure-fire way to save money.

 

 

Review the deals you have for your smart phones and internet services. Do you need extra phone insurance, or is it already covered by your bank account or home insurance? Would it make sense to have a ‘SIM only’ mobile deal? Can you get Wi-Fi cheaper elsewhere?

 

 

Over time our lifestyle changes and we move on from the things we used to do, like going to a gym, or using Amazon Prime. Do a bank account spring clean and sweep away those direct debits for things that are history as far as your current lifestyle is concerned.

 

 

Be prepared to switch your current account. It’s simpler than you think and, as banks fight fiercely for customers in this market, you can get a great deal that pays you a high interest rate and even cashback.

 

 

Retail is increasingly competitive and sales are becoming the norm. Do not buy major items for full price. For really big items, like white goods, try haggling the price down. It doesn’t come naturally to a lot of people, but it can be fun!

 

 

Try to ensure you have a pot of savings to deal with life’s uncertainties – like your washing machine breaking down. Aim to have at least £1000 in savings for each adult in the household. Doing this gives you financial resilience and ensures that a mechanical nightmare doesn’t turn into a financial nightmare.

 

 

You can check your credit files for free. Go to Experian, Equifax and Callcredit and see if there is anything on your files that is wrong or may be adversely affecting your credit rating. Your rating may be marred by things that don’t directly relate to you – for example financial matters relating to a former partner!

 

 

Try to cut out wasteful spending – three fewer coffees a week can save you around £500 a year. This can help you build up that resilience fund and help save the planet too by reducing plastic waste.

 

 

If you are really serious about becoming financially savvy in 2019, why not sign up for the Open University’s award-winning financial courses at OpenLearn. For grown-ups there is ‘Managing My Money’ and young people can begin early with ‘Managing My Money for Young Adults’. These short courses are free, so won’t impact your budget or ability to undertake any of the steps above!