Spring's Here - Time to Freshen Up Those Finances

It's a new tax year, the days are getting longer, and money is as tight as ever - it can mean only one thing: it's time for a fiscal spring clean. So keep reading for some top tips on how to slash your outgoings and improve your finances.

Draw Up a Budget: a household budget is the bedrock of organised personal finances, and the first stepping stone to leaving money worries behind. By listing all your monthly income and outgoings, you can easily pinpoint all the areas where you may be able to make savings. Remember, the more you can shave off the outgoings, the more cash you'll have to put towards paying off debts.

Get an ISA: there's no better time to get yourself an ISA than at the start of the tax year, that way you can wring the most out of your tax-free allowance. This year, the annual ISA limit has risen to £10,200 for all (up to £5,100 in cash, with the rest - or all if you prefer - in shares). If your money is currently languishing in a low-interest bank account or under-performing ISA, consider moving it to an ISA that will make your cash work harder.

Overpay Your Mortgage: if you have a mortgage and cash to spare at the end of the month, consider making overpayments. As the Base Rate is still at 0.5 per cent, overpaying your mortgage will have more impact on reducing the debt and the interest. As such, regular overpayments can reduce a mortgage term by years. However, first make sure that your lender allows overpayments (up to 10 per cent of the outstanding debt a year is commonplace), as there may be a penalty charge.

Remortgage: If your mortgage special rate has recently come to an end, you may be paying more than you need to. Check out our mortgages page to see if you can reduce repayments.

Switch Banks: If you've been with the same bank for years and you're on a low-interest current account, it could be time to sever the ties - after all, your loyalty only benefits them. There are plenty of good current accounts available so there's no excuse to languish on a low rate. Likewise, if you're constantly overdrawn, you may be able to find a current account with kinder overdraft charges.

Switch Credit Card: If you have a high-interest card, switching the debt to a 0 per cent balance transfer credit card can slash repayments for up to 14 months. And with provider APRs typically around 18 per cent, this could mean huge savings - freeing up more cash to pay down the balance. However, you will also have to pay an initial transfer fee (typically around three per cent).

Improve Your Credit Rating: Getting access to the best credit rates is a great way to spring clean your finances. However, to get the better rates you need to improve your credit rating. Knowing what's on your credit report allows you to take steps to improve your credit score.

Reduce Insurance Premiums: it's possible to quickly cut insurance costs without cutting your level of protection. By searching online, you can find great deals on car, home, life, travel, van, motorbike, breakdown, medical, pet, and even caravan insurance. So if you want to see if you can reduce premiums and stop wasting money, search online and see if you can cut the cost of cover.

Switch Utilities: It's quick and easy to compare gas and electricity to see if you can save. Just a few minutes searching online could save you over £223 a year by changing tariffs*. If you've been on a standard energy tariff for a while, you're almost certain to make savings.

Switch Broadband/Phone: If you think you're paying too much to stay connected to the world, make sure you search online to find a cheaper deal. You could quickly make savings on broadband, home phone, mobile, digital TV, or bundled TV, broadband and phone packages.

*50% of customers who switched gas & electricity (dual fuel) with Confused.com in 2009 saved over £223.09.


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Time to change? Compare mortgages and savings providers at Confused.com