How To Save £4000 During The Lockdown

Use the extra spare time you’ve got on your hands to get your finances in order

- Tricia Phillips

It's a difficult situation at the moment with some people still being paid, while others await Government support.

So it’s vital we all ensure we aren’t paying too much for our basic bills.

If you’re prepared to put in a little time and effort, there’s no reason why you can’t make a positive impact on your bank balance.

Andrew Hagger, from personal finance website Moneycomms.co.uk, said: “Many of us have got plenty of spare time on our hands at the moment, so why not set aside a couple of hours next week to give your finances a revamp?

You’ll put some extra cashback in your pocket. Plus, you don’t need to set a foot outside of the house to do it.”

Our 10-step plan could help you slash more than £4000 off your annual bills – and we’ve got a couple of ways you could make a bit of extra money to help boost your household budget.

1 GIVE YOUR CREDIT CARD INTEREST THE ELBOW

If, like most of us, you have a balance on your credit card or store card, there’s a simple way to save serious money – and clear your debt quicker.

For example, if you’ve got £2000 on a card at an average interest rate of 19 per cent APR and are paying back 5 per cent of the balance, that would be £100 a month (but would gradually decrease as the balance goes down).

It would take nine years to repay the card and cost £803 in interest. Simply by switching your card to a 0 per cent balance transfer card and paying off £100 per month, you’ll be debt-free in just over 18 months. Plus, you’ll be saving over £25 per month in interest – that’s a £300 saving in a year. ANNUAL SAVING: £300