5 Ways UK Households Are Cutting Costs

As a nation, the buzz word of the past decade –  austerity – is really starting to get old. But living the austere life isn’t all backyard chickens and growing herbs on the windowsill. For many households, it means making real changes – using a car logbook loans to make sure some much-needed home repairs can be carried out, skimping on fresh meat and cutting out leisure activities are just some of the realities Britain’s households are facing every day.

Financial Home Truths

The average cost of raising a child is estimated at £200,000.

1.25 million households could have to spend half their disposable income on mortgage repayments by 2017 if the Bank of England allows rates to rise just two points higher than predicted.

Personal debt stood at £1.424 trillion at the end of May 2013.

The average UK household debt rose to £5,978 in May 2013.

The average amount owed per adult (including mortgages) rose to £28,985 in May 2013.

Every day in the UK, 274 people are declared insolvent.

So, what are households doing to dodge the debt bullet?

1. Staycations

Everybody needs a little time to get away and recharge. And it seem more Brits are returning to home shores for a native summer holiday – a statcation. Devon and Cornwall are incredibly popular, and plenty of households are heading to cities like London and Edinburgh to cash in on free museums and cultural experiences.

2. Couponing

It’s a fairly new trend in the UK, but using coupons to cut into the shopping budget is catching on quickly. Coupon-fans pour over newspapers, magazines, junk mail, websites, in store, mailshots and on products to find money-off deals and offers.

3. Buying own-brand

Although the supermarket may be killing off the high street, there’s a lot to be said for the low cost of store-brand items. Buyers can make significant savings by sticking to cheap and store brand goods. Some thrifty consumers say they trick their families by popping the cheaper alternative into the expensive brand box. The results? Often, nobody notices!

4. Buying seasonal sale products

Who goes shopping for a winter coat in May? According to consumer savings experts, that’s exactly when the savvy shopper stocks up on winter goodies! Buying seasonally can be expensive, especially when it comes to things like Christmas decorations and gifts. By buying throughout the year in low periods, it’s possible to nab some brilliant deals.

6. Avoiding credit and getting loans through small assets

The pawn shop has long been the slightly dubious saving grace for struggling folks. But modern lending is all about flexibility. Savvy households avoid credit cards and pay day loans in favour of things like V5 logbook loans, which offer a loan with the household car as collateral. It’s a great way to make sure the debt can always be repaid.

Frugal living isn’t about one big change. It’s about making lots of small alterations to spending habits and consumer decisions to make a significant overall saving.