Review your finances ahead of the Budget

Consumers could save an extra £2,443 by switching to the best deals available across their financial products. With the Budget announcement on the 23rd March expected to spell out further tough measures, analysis by moneysupermarket.com has found consumers who take control of their finances and do their own personal spending review could save themselves a packet in 2011.

Kevin Mountford, head of banking at moneysupermarket.com, said: "With the cost of living rising due to record fuel prices and high food costs putting the nation's purse strings under severe pressure, many consumers will be concerned about the impact of the Chancellor's budget on their wallets. Rather than letting rising costs diminish their own spending and saving power, consumers need to take control of their finances and be their own ‘Chancellor' by reviewing their own household budget. Apathy in the current market really doesn't help, and sitting on uncompetitive or unsuitable deals will see you out of pocket when there are better deals to be had. By moving from an average deal to the best available on the market, UK households could save a massive £2,443 - offsetting some of the hardship we're already feeling."

Mortgages

With mortgages the biggest single financial commitment that consumers make, homeowners should ensure they are getting the best deal possible to suit their circumstances. Recent research from moneysupermarket.com showed that 42 per cent of homeowners are worried about paying their mortgage when the base rate eventually rises. However, by looking ahead and switching, consumers can ensure they are getting the right deal at the right price, and potentially freeing up some much needed cash. For example switching from a £150,000 mortgage from the average standard variable rate (SVR) of 4.74 per cent to the market leading two year fixed from Santander at 2.79 per cent would save £1,029.30 per year once the application fee is taken into account.

Credit Cards

Earlier this month, moneysupermarket.com found that almost half (46 per cent) of credit card users do not pay off their outstanding balance in full, while almost a quarter (24 per cent) claimed they could not be bothered to switch. Switching debt from the market average credit card rate of 18.28 per cent APR to Barclaycard's Platinum Credit Card, which offers zero per cent balance transfers for eighteen months would save a hefty £260.83 in interest.

Personal Loans

Since the beginning of 2011 there have been signs of increased competition in the personal loans market, with rates falling to a two-year low. For those looking to borrow more than £7,500, there are some competitive deals available. By swapping a £7,500 five-year loan at an average rate of 9.41 per cent APR to the Marks & Spencer Personal loan at 6.9 per cent APR, borrowers could save £105 annually.

Current Accounts

Customers moving their current account to the Santander Preferred In-Credit Account, paying a market leading five per cent for 12 months on balances up to £1,500, would earn an additional £75 in interest compared to a current account paying the market average of 0.19 per cent. Santander is also offering a £100 switching incentive to new current account customers so in total they could be £172.15 better off.

Savings

With the Bank of England Base Rate at a historic low and the high rate of inflation, savers have struggled to generate any decent returns on their savings pots over the past couple of years. With this situation set to continue, consumers must ensure they check the rate they are being offered in order to make the most of their savings and fight the effects of inflation. The current average rate for easy access accounts is just 0.76 per cent, but by switching to the market leading Websave easy access account from West Bromwich BS which offers 3.01 per cent, a whopping £225 in extra interest could be generated.

Car and home insurance

When considering which insurance products to pick, people should ensure they are opting 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 as on average consumers who use moneysupermarket.com save £282 on car insurance and £124 on home insurance.

Utilities

Saving money on energy bills can easily be made by shopping around to ensure you are on the correct tariff for your usage and region is crucial.  Moving online to a ‘dual fuel' tariff and paying by monthly direct debit is the easiest way to cut costs; by switching to the best online tariff customers could save over £213 a year.

Kevin Mountford added: "Consumers who are feeling nervous about the impact the Budget will have on their finances should take heart and realise there are easy ways to help plug the gap. Putting a few hours aside to review your finances and shop around for better financial products to suit your needs could be the most rewarding time you'll spend this year, and would help offset some of the rising costs we are all experiencing."