Money Mail's top five tips to protect your cash in 2012
This is Money - 4th January 2012
The next 12 months look set to be another severe test
for millions of families. Here, Lauren Thompson gives five key ways
to stay on top of your finances.
Cancel pointless insurance. Mobile phone cover
is normally included in your home insurance; credit card fraud
should be covered by your bank, with no need for ID fraud
insurance; and if you have payment protection insurance, check you’re eligible to claim. Always shop
around when your car, travel and home insurance is up for renewal.
Switching insurers can save you hundreds of pounds a year.
Ensure you use all your tax allowances. From
April 2012, you can place £5,640 tax-free into a cash Isa, £300
more than last year. If one partner doesn’t work, transfer savings
into their name to pay less tax thanks to personal allowance rules.
And you can give away small sums of up to £250 a year to your
family to help reduce inheritance tax.
Save energy and pay less for gas and
electricity. Use energy efficient light-bulbs, get your
loft, walls and hot water tank insulated, and turn down your
thermostat a degree or two. And if you’re online, a switch to an
internet tariff — simply an email bill every month — can save you
10 per cent on average.
Be your own financial adviser. Run a slide-rule
over every account you have — current, savings, credit card,
investment fund and pension. Check if you’re really getting the
best rates and performance and change if not.
Pay less for your debts. Transfer any credit
card debts to a 0 per cent interest card if you’ve a sound credit
record, and always pay more than the monthly minimum. Avoid costly
payday loan lenders or debt management companies. If you are
seriously in debt, seek free help from a charity such as your local
Citizens Advice or call Consumer Credit Counselling Service on 0800
138 1111.