It's Time To Start Counting The Pennies And Taking It Seriously

Almost a third of UK citizens are becoming unstable financially and at the point of almost being unable to deal with their finances, a survey has recently revealed. The point of instability, according to the survey, is when the family would be unable to afford their monthly living costs if their bills increased by £100 per month.

More than 25% have also confirmed in a frightening survey, that should their outgoings increase by ANY amount, they would be unable to afford to live and would be tipped over the edge. This would mean possibly losing their homes or court action on unsecured debts.

Moving Back From the Edge: While little can be done about commodity prices, we can all find ways to economise. Reducing the number of car journeys, and driving in a higher gear can help to minimise the fuel bill, whilst swapping brand names for supermarket own-lines can help to shrink the food bill during the weekly shop. TVs and DVDs left on standby can add an unnecessary burden to your electricity bill.

You can economise in many ways, including avoiding using the car where possible, buying cheaper alternatives when doing the food shop and reducing the amount that you spend on eating out or other luxuries. Another example would be to run around your neighbourhood so that you cancel your gym membership.

To reduce your weekly food bills, consider buying supermarket own brand or budget products which tend to be cheaper than popular brands. Buying items in bulk - such as 'buy one, get one free' offers - can also save money, particularly if you have a large storage area or freezer at home. Being more careful with your weekly grocery shopping can take some time although it can help you make significant savings.

You can also try to reduce your household bills by avoiding using the central heating in warmer weather, or using blankets instead of the heating on cooler evenings. Also things like ensuring that outside doors and windows are kept closed. Low energy bulbs can also help to save on electric, while washing your clothing at 30 degrees can save a lot too.

It is also important however to actually give your finances a look into to see if there are ways that you can save money on your financial outgoings, such as mortgages.

Remortgaging Options: If you happen to have a fixed rate mortgage on your home which is drawing to a close, the monthly savings you could make by looking at remortgage rates might be sufficient to escape from the tipping point.

If your fixed rate is almost up or has finished, you can often find a cheaper fixed rate deal, especially now as interest rates are far lower than they were five years ago, when you will more than likely have taken your mortgage out.

It is important to remortgage soon however, as interest rates are set to rise again by the end of this year, so the advice is to get looking for your remortgage deal now while interest rates are still very low.