Six steps to slash bills
Pouring over your bills or switching service provider may seem like a chore, but in the long run it could save you money.
Using the Economiser, you can find out how your spending compares to the real statistical analysis in Ireland, and how to cut those costs
HOW often do you sit down and really pour over your household bills? Have you really any idea if you are getting the best possible deal for the tens of thousands flying out the door every year on those necessities, entertainment and the communication tools we simply feel we can’t live without? Here are just a few ideas to help you to become more in control of your billing and to trim those figures into shape for 2012.
1. CHANGE UTILITY PROVIDER.
You might be amazed to find that the long term supplier of your electricity, telephone or gas is not giving you with the best deal possible. Go online to find out more about this increasingly competitive market. For example if you change from Energy Ireland (formerly the ESB) to Bord Gáis Energy and combine your gas and electricity bill, Bord Gáis Energy say you could save as much as 14% on your current tariff (2% of this is given for making use of a direct debit facility and the potential saving could be as much as €125 per year). Log onto www.thebigswitch.ie with your latest bill and bank account details to switch online or by phone at 1850-485868. Explore what your current firm is doing too, as deals can arise that are not highlighted for existing customers.
2. USE THE COMPARISON SITES TO SHOP FOR SERVICES
It’s the information age, but streaming that information into one or two master sites can make looking up pricing so much easier. Do keep in mind that in most cases, firms pay to be included on a comparison site. This doesn’t mean the information is tainted, but you need to look elsewhere for figures relating to other firms in the same sector, for example for broadband or mobile phone services. Compare.ie, Freetocompare.ie and Compareireland.com are just three sites covering everything from pet insurance to phone services magazine subscriptions and television package providers. For phone usage try the Government Commission for Communication’s www.callcosts.ie for independent advice.
3. SHOW ME THE MONEY (BUT IT’S NOT JUST ABOUT THE MONEY).
The number you get for say one unit of gas, or for a month’s internet access cannot always be compared like for like. You have highly individual circumstances and habits that may make the product of one firm better than another. Features and support vary, and what may seem cheap will seem very expensive when you’re sitting on a free phone line attached to a recorded message. Read the small print and be aware that great deals can be time limited from a few weeks to an entire year, at which point new tariffs and conditions may kick in. If you’re not on top of your credit card bill, simply switching lender may prove short term relief, but it’s your spending habits that ultimately need to change.
4.THE NO PAPER BILL
E-billing, where there the monthly or bi-monthly cost is paid by direct debit from your bank account, invoiced as an email, and carried out without a regular paper bill often comes as a condition of a package. Where the bill varies, for example in gas or power use, check your meters and submit an exact reading to keep the number on track. You should check all your bills whether in your hand or on your PC every month, to ensure there are no wild fluctuations that cannot be explained.
5. BUNDLE OF JOY
A number of bundles are now available combining the price of your home phone, your mobile phone costs and even your internet service, or teaming up two of these three essential services. For home phone service and internet services you can decide on a pay as you go service or an all inclusive price with unlimited local calling for example. Read the detail picked out with any sly asterixes, including download limits for broadband, critical if you stream entertainment or you or your children are gamers. Examine each element of the deal independently rather than being swayed by the total figure.
6. USE THE ECONOMISER
Get educated with the superb Economiser tool offered by the National Consumer Agency of Ireland. Using the Economiser you can find out how your spending on everyday essentials from TV to groceries compares to the real statistical analysis in Ireland, and discover detailed plans to cut those costs in every area of your life. The figures you enter into the tool are protected under the Data Protection Act and will not be handed on to any third parties. If you don’t have access to a PC, stop into your local library and book a session on one of their machines during a quiet time and get started. For more call: 1890 432 432.
If you find you can’t pay your regular bill, whether it be a gas bill or a mortgage payment, going to ground is the single worst choice of action.
In the case of utilities, you’ll simply find yourself cut off, and getting the service back may prove not only uncomfortable but more expensive than dealing with the issue head on.
Let your service provider know well in advance of the last due date of payment that you are having difficulty paying your bill. This potentially puts the supplier on your side, where they can come up with a reasonable payment plan taking into account the severity of the debt, your ability to pay, and your past payment history.
There are state agencies, bodies and charities with expertise in this area, and your case can be forwarded to someone who can really help.
The Money Advice and Budgeting Service (MABS) provides information and assistance to customers putting in place budget plans for bill payment and have 52 offices for confidential help nationwide.
Their free helpline number is 1890 283 438, and the line is manned Monday to Friday 9am to 8pm. Log onto www.mabs.ie for more advice.
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