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One of the best ways to get on top of your finances and add to your savings is to cut your household bills. Reducing your outgoings might seem daunting, but there are lots of things you can do to take back control of your monthly expenditure. Below, we introduce you to five tips on how to reduce your household bills so you can put your money to better use. 

Get on top of your direct debits 

Research from Natwest shows that Brits are wasting as much as £25 billion every year on unused direct debit payments. With so many apps, subscriptions, and memberships requiring a direct debit, it’s easy to lose track of what you’re paying out of your account each month. 

One simple way of keeping on top of your direct debits is to do a monthly audit of your expenditure. Log in to your online banking and keep track of the payments that go out of your account each month, cancelling those that are no longer required. You’ll be amazed at how much you can save.  

Re-negotiate the terms of your broadband contract 

The average monthly household spend on broadband (and other telecommunications) is £80. Unfortunately, many people don’t bother trying to negotiate a better deal because of the hassle involved. But often, a simple call to your current supplier can lead them to offer you a discount right away, particularly if you tell them you’re considering leaving. You can also use a price comparison website to find a cheaper tariff, or you might even consider reducing your data consumption so you can sign up for a cheaper plan.

Improve your energy efficiency 

There are so many things you can do to improve the energy efficiency of your home, which will slash your household bills. Some of these include: 

  • Installing LED light bulbs in all of your light fittings 
  • Washing your clothes on the cold water cycle of the washing machine and avoiding the tumble dryer 
  • Removing all gadgets and appliances from standby when they’re not in use 
  • Switching to a more efficient showerhead and installing a water meter 
  • Making use of a smart meter and monitoring your energy consumption on a daily basis

When you start improving your energy efficiency, you will see your household bills reduce as a result, especially alongside the yearly rise in energy bills.

Check your council tax band 

According to Money Saving Expert, 100,000s of homes in the UK are in the wrong council tax band. If you think your property has been valued incorrectly, you can challenge the ruling directly on the government’s website. To start the process, use this house price index calculator to establish an accurate picture of whether your home is in the wrong band. You could end up saving hundreds of pounds each month if you manage to successfully switch bands. 

Consider switching to public transport 

While the cost of public transport seems to go up year on year, it’s still a cheaper option for most people than owning, driving, and maintaining a car. As a car owner, you’re subject to the cost of the vehicle itself, insurance, tax, fuel, servicing, and repairs. 

According to Nerd Wallet, the average cost of owning a car in the UK is £3,407 each year without finance and £5,745 with a finance arrangement in place. If you can get by without a car, or at least use your vehicle less, you will be able to save a significant amount of money each year, while also doing your bit for the environment.

At Koyo Loans, we’re always helping our customers make the right financial decision. That’s why we use Open Banking technology, to fairly assess loan applications. We hope our top tips support you to reduce your household bills and enable you to put your money towards other purposes this year. 

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