Ten Ways To Slash Your Direct Debits in 2011

It's a New Year and the many of us will be 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: Change your gas and electricity supplier: The steep rise in charges by energy providers over the winter months sparked huge uproar in the latter months of 2010, forcing homeowners to look into swap energy providers. Although, as the severe weather passes ('touch wood') providers are reintroducing competitive rates once more. It is no secret that utility bills consume the majority of our monthly wage, so in order to minimize the amount to spend, compare your current deal with others offered in the market. It may well be, if you have been with your current provider for a significant period of time, that you are not on the best deal available. It really does pay to shop around!

2: Terminate your gym membership: Evaluate if the amount you pay on gym membership is actually worth it. How often do you visit the gym? If the answer is anything less than regularly, it would be much more financially beneficially to cancel your gym membership and contact your local sports centre where you can usually pay as you go. Or, stop spending altogether by jogging around the local park. If you have come into 2011 with the resolution to get fit, just remember that large gyms take advantage of a surge in interest in January by raising their prices. Research by Sainsbury's Bank last year suggested that the average gym membership costs a huge £372 a year; you could go on a cheap holiday for that! So if you can do without a membership, then don't get one!

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: The problem with direct debits is you can become accustomed to the set amounts being automatically withdrawn from your account. The illusion is that direct debits are a hassle free way of paying mandatory bills. However, try not to let this make you careless with how much is coming out of your account. Always check that your bills have changed if you know your usage/spending habits have changed. Don't fritter away money by assuming that all the paperwork has been successfully put through the systems; be proactive and on top of your outgoings.

5: Transfer to a free current account: While it's always useful to know what packages are available in the current market in regards to additional benefits, it can sometimes be that these 'so called' discounts are actually more costly than you would have first thought. A survey completed by The Guardian Newspaper last year concluded that over 7 million people in the UK spend anything between £5 and £40 a month on these package accounts. Weigh up if you actually use the additional benefits on offer to you. If not, it would be much more financially beneficial to open a free current account with no additional 'benefits'.

6: Consolidate your debts: As we all struggle with the aftermath of debt following an overindulgent and expensive Christmas, it has never been so important to regain control of your finances. It can be quite overwhelming if you have numerous debts and it can be hard to know where to start. Consolidation is the first step. Speak to a financial advisor who can guide you into the best option for your circumstance. Although, by consolidating your debts into a manageable level you can significantly reduce the level of interest you pay.

7: Pay your car insurance up front: Annual Car insurance is an expensive and unavoidable direct debit that all car owners have to make. However, with a little planning and organising you could save yourself a nice little packet. If you save up a little extra cash every month, you could save to pay off your insurance in one lump sum. While splitting the payments across the year can initially look an attractive deal, you could end up paying more than is necessary through interest charges.

8: Change 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: Has your mortgage deferred onto your lenders Standard Variable Rate (SVR)? If so, you are probably spending more than you should be. Interest rates on remortgages are usually much lower than SVR's which means you could save a huge amount of money. Also, if you decide to remortgage with a different provider, they will generally have attractive introductory offers that you can take advantage of as a new customer.

10: Cancel magazine subscriptions: Do you have a monthly magazine subscription? Perhaps you have daily or weekly newspaper subscriptions? Ask yourself how necessary these are to your lifestyle. Do you always read them or are there put on the shelf for another time? If you enjoy the occasional newspaper or magazine then it could be cheaper to walk to your local shop to buy it if and when you want one. Such subscriptions can cost a surprisingly large amount, some totalling over £50 a year.

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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