Review your finances ahead of the Spending Review

Following on from measures announced in June's emergency budget it is widely predicted that this week's Spending Review announcement will spell out even tougher measures to cut the budget deficit. In these austere and difficult times, analysis by moneysupermarket.com shows how consumers can take matters into their own hands, and save an extra £2,982 by switching to the best deals available on their financial products.

Kevin Mountford, head of banking at moneysupermarket.com, said: "With cuts to Child Benefit declared last week and further announcements expected, many consumers will be concerned about the impact on their finances. Consumers could make easy savings by doing their own spending review of their current finances. By moving from an average deal to the best available on the market could save a whopping £2,982 - offsetting some of the losses felt by many as a result of the impact of the spending review."

Mortgages

Mortgages are the biggest single financial commitment that consumers make so homeowners should ensure they are getting the best deal possible. Switching a £150,000 mortgage from the average standard variable rate (SVR) of 4.74 per cent to the market leading two year fixed from Cumberland Building Society at 2.69 per cent would save £1,052.92 once the application fee is taken into account.

Credit Cards

Recent research from moneysupermarket.com found that 41 per cent of credit card users admitted to having a balance outstanding on their main credit card for a year, with a further 14 per cent saying they have held debt for over five years. Switching debt from the market average credit card rate of 18.13 per cent APR to the MBNA credit card, which offers zero per cent balance transfers for sixteen months would save £258.40.

Personal Loans

We have started to see signs of increased competition in the personal loan market with a number of providers having cut rates recently. For those looking to borrow more than  £7,500 there are some competitive deals available.  Swapping a £7,500 five-year loan at an average rate of 10.58 per cent APR to the Nationwide Building Society loan at 7.6 per cent APR generates a saving of £600 over the term of the loan.

Current Accounts

Moving your current account to the Santander Preferred In-Credit Account which pays a market leading 5 per cent for 12 months on balances up to £2,500 would earn an additional £58.50 in interest compared to an average current account paying an average 1.1 per cent. Santander is also offering a £100 switching incentive to new current account customers so in total you could be £158.50 better off with its Preferred In-Credit Account.

Savings

In the current climate of low Bank of England Base Rate and high rate of inflation, savers have struggled to generate any decent returns on their savings. With the situation set to continue consumers should be proactive in checking the rate they are being offered to maximise their savings pot. The current average rate for easy access accounts is 0.71 per cent but by switching to the NatWest e-Savings which offers 2.89 per cent, an extra £218 could be generated.

Car and home insurance

Insurance is crucial for financial security and peace of mind, but it is important people only opt for the best value cover relevant to their needs. Brits often make the mistake of over-estimating the level of cover needed on their home and car insurance for example, and following a few simple tips can help you save money. Paying annually for cover instead of monthly can cut the cost of a premium. For car insurance adding a partner or, if you are a younger driver, adding an older driver to your policy can also help cut the cost. Shopping around at renewal time is a must; on average, consumers who use moneysupermarket.com can save £237 on car insurance and £127 on home insurance.

Utilities

For those looking to save money on their energy bills shopping around to ensure you are on the correct tariff for your usage and region is crucial - especially ahead of the colder winter months when we use the most gas and electricity.  Moving online to a ‘dual fuel' direct debit deal is the easiest way to make savings; by switching to the best online tariff customers could save over £300 a year.

Kevin Mountford added: "Consumers who are feeling nervous about what the impact of the spending review will have on their finances should take heart that there are easy ways to help plug the gap. A little research can go along way to boosting your financial situation and, even if child tax credits and child benefit are being withdrawn for many, it is still worth making sure you are receiving all of the state benefits and allowances you are entitled to, especially if you are on a lower income or have lost your job."