Slash Your Direct Debits in 2011 - The Top 10

It's a New Year and the air is full of resolutions and good intentions, and as with every New Year the vast majority of us will be filled with motivation for getting our personal finances organised, and to that end there's no shortage of Free Debt Advice articles doing their rounds online, but of all the possible courses of action that can be taken now to ensure you personal finances have the best possible year, perhaps the most important of all is don't overlook the potential of getting the basics sorted, especially when it comes to organising those regular monthly bills and credit card debts.

1: Swap your gas and electricity supplier: Switching gas and electricity suppliers usually takes around 4 to 6 weeks to complete but it needn't be a hassle. If you have meters and equipment already installed in your property, there will generally be no interruption to your supply. Switching suppliers can save you a lot of money if you shop around. The market is very competitive at the moment, so 2011 could be the best time to reduce your gas and electricity direct debit.

2: Terminate your gym membership: It is estimated that a person will spend an average sum of £17,500 over a lifetime solely on gym membership. It is important to weigh up how important going to the gym is to your lifestyle. If you don't go regularly, then perhaps that amount of money could be better spent elsewhere?

3: Review your TV subscription: Save yourself over £600 a year by evaluating your current television subscription. If you find yourself with little time to watch television at all, and only get chance to catch the odd soap, then maybe it's worth cancelling your subscription and investing in a FreeView box instead; you can get them from most retailers quite cheap today. If you are an avid watcher of sport though and feel the need to have a subscription, then maybe you could balance it out by cancelling your film subscription and instead rent a DVD as and when you fancy watching a movie. It's a small change but nonetheless and important one if you want to cut down on your direct debits.

4: Reduce bill payments to the required level: It is sometimes worth spending a bit of time regaining a level of control over your direct debits. Keep an eye on the current market conditions to ensure that you don't pay more than you need to on your bills. Additionally, ensure that any reductions in your spending are actually shown in the direct debit.

5: Transfer to a free current account: What benefits do you have with your current account? Evaluate how often you make the most of these benefits. For example, do you really need the discounted mobile phone insurance cover when you're phone is over 10 years old? Or do you really need the travel insurance considering you don't go away often? Ask yourself these questions to decipher if your current account is in actual fact the right one for you.

6: Consolidate your debts: It is surprising how many people panic over their debt, believing it to be worse than it actually is. Obtain some professional advice if you have entered the New Year with a cloud of financial uncertainty casting a shadow over your life. Consolidation of your debts can make your repayment scheme much more manageable and you can avoid paying unnecessary amounts of interest.

7: Pay your car insurance up front: When making large purchases such as a new car it is always advisable to pay as much as you can up front. No matter how attractive deferred payment plans can look, they often incur high levels of interest, leaving you paying more over a longer period of time. If you are saving up to purchase a car, then include car insurance in your calculations. Be organised and you will end up reaping the financial benefits.

8: Switch your broadband provider: The broadband industry is one of the most competitive markets out there at the moment. With continuing developments being made to increase connection speeds and download limits, the internet business is a lucrative one. For this reason, it is imperative that you shop around for the best deal as providers are always slashing their rates. It may also save you money if you sign up to a multi-package, for example a provider that offers telephone rates, subscription charges and the internet all within the same package. This will also consolidate your service provider direct debits into just one monthly payment.

9: Remortgage: Are you hoping to make some Home Improvements this year? Or perhaps wanting to consolidate your Christmas debts? Then remortgaging your property could be the answer. If you are now paying Standard Variable Rates on your existing mortgage, then your direct debits could be larger than necessary. Consider a remortgage in order to reduce these repayments to a more attractive level.

10: Cancel magazine subscriptions: Magazine and Newspaper subscriptions can cost more than you'd expect, around £40 to £50 every year. Evaluate how vital these subscriptions are to you, can you live without them in order to reduce the amount of direct debits coming from your account? Or if you do want to regularly read a newspaper or magazine, then consider if it would be cheaper to walk to your local shop, or to purchase one from the supermarket next time you do your food shop.

As you can see these ten simple steps could make a big impact on your personal finances this year, as the old saying goes, look after the pennies and the pounds will look after themselves.


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