Consumers urged to get financially fit

More and more people are falling into financial difficulty because of the increases in the cost of living, rising debts and the impact of the all too familiar "credit crunch".

With this in mind, Cheshire Building Society is offering advice on how to cut costs and save money, urging everyone to take a healthy attitude to financial management:

Watch your utility bills

Utility bills can be a considerable cost and switching provider can save money. You can also help to cut costs by insulating your home properly, switching lights off in the summer and keeping the tap off while brushing your teeth.

Reduce the cost of fuel

Petrol and diesel costs are rising at record rates and by leaving the car at home for short journeys you can save money and help the environment.

Don't Miss Payments

Missing payments on debts and bills has a detrimental impact on your credit rating, making it harder to obtain a new or re-mortgage and further credit or loans. If you think you will miss or make a late payment speak to your financial provider in the first instance and they will be able to discuss options with you.

Budget and live within your means

Many people are spending more than they earn and this is a signal for a dark financial cloud. If you have traditionally been a spender, it is never too late to change your ways by becoming a saver.

Be realistic

If you have any outstanding debts, don't sweep them under the carpet, work out how much you owe and create a budget to get this paid off as quickly as possible. Prioritise your outgoings and make sure all the key bills, such as mortgage or rent payments and council tax are being paid regularly and on time.

Assess your credit

Address your credit costs and estimate how much each credit card or loan is costing you and what monthly payments you can afford to make. You may be better off transferring your credit card balances to a 0 per cent deal or increasing your loan payments so you can pay the loan quicker with less interest overall.

Don't forget your mortgage

Although you might have an existing mortgage, it is always worth shopping around in case there is a more suitable deal available for you. Always make sure the savings you make outweigh any extra costs involved in switching mortgage, such as administration and legal fees.

Keep a diary

Try to keep a diary of all your current spending to see where you are perhaps wasting money and what you can cut back on. For example, bringing lunch into work will save you a fortune and is probably healthier too.

Throw out the old

Cancel any monthly direct debits you are paying for and not using. Direct debits for gym memberships are commonly forgotten, so instead of paying for it and not using it, cancel the monthly payment and take up jogging!

Start a pension

Think long-term savings by reviewing your pension scheme and address any necessary amends that you need.