Money Saving Advice
Top tips for cuttings costs and keeping warm in your home
Heating Tips
- Time your heating to go off 30 minutes before you leave the house, and come on again 30 minutes before you are due to return
- Turn the room thermostat down by 1°C.
- Make sure curtains or furniture are not in front of a radiator.
- Draw the curtains at dusk.
- Fit reflective panels behind radiators.
- Insulate your loft
- Fit double glazing
Using Electrical Appliances
- Switch off electrical appliances when not in use
- Unplug chargers when finished.
- Use energy saving light bulbs.
- Use energy saving plugs.
Refrigeration
- Don’t put hot food into the fridge.
- Defrost your fridge regularly.
Washing machine and dishwashers
- Wash full loads or use an economy programme on low temperature
- Modern dishwashers can be more efficient than hand washing
Cooking
- Match the size of the ring to the size of the saucepan, and use a lid
- Pressure cookers, steamers and microwaves save energy.
Tumble dryers
- In summer dry your clothes outside.
- Don’t put wet clothes over a radiator.
Hot water
- Only boil as much water in the kettle as you need.
- Turn the thermostat on your hot water tank down to 60°C.
- Use the kettle to boil water for cooking, instead of heating a pan on the stove.
- An ordinary shower uses just two fifths of the water for a bath.
Fuel Costs
Sometimes the cost of paying for gas and electricity on a pre-payment meter is higher than for customers who pay by direct debit. If you are in receipt of one of a range of benefits you may be entitled to get a cheaper social tarif. The social tariff is a reduction in the cost of fuel which on an average bill could save you £6 per month or £72 per year.
Some energy providers also offer cheaper tariffs to vulnerable people, who may be older or receiving benefits. EDF offers a social tariff called “energy assist” for people who spend more than 10% of their income on fuel or are on income support or pension credit. E.ON has a “stay warm” tariff that people over 60 are eligible for.
These tariffs are not widely publicised by the energy companies so contact your supplier to find out what they can offer you.
Remember, if you don’t claim you could be missing out on ££s.
Tackling The Credit Crunch!
Some tips from Muir’s Income Management Team...
The cost of Christmas, increased food and fuel prices and the recession are prompting everyone to think more closely about their finances than ever before. At Muir we understand that
money worries affect our residents and that some may need help and support.
- Do you have a poor credit history?
- Do you want to open a bank account but have been refused?
- Do you use a pre-payment meter for gas and electricity?
- Do you find it difficult to manage on your income?
If you can answer “yes” to any of the above questions Muir Group may be able to help you. Our board have recently approved our first Financial Inclusion Strategy which sets out how we will deal with problems of debt and the problems our residents experience accessing appropriate financial services.
Whatever your circumstances our income management team will do what they can to help you. If you think that you are going to have problems paying your rent, if you are in rent arrears and struggling
to meet you repayments, if you have other money worries or if you just want to check that you’re getting what you’re entitled to contact us on 01928 728000.
Remember the worst thing you can do about debts or other money worries is nothing!
For free and impartial advice about dealing with your debts you can also contact:
National Debtline
on 0808 808 4000 or at
www.nationaldebtline.co.uk
Consumer Credit Counselling Service (CCCS)
on 0800 138 1111 or at
www.cccs.co.uk
Now Lets Talk Money
on 080000 121656 or at
www.nowletstalkmoney.com
Borrowing Money – Do you know the true cost?
If you are on a low or insecure income and want to obtain credit you may have to pay heavily for it. You may not be able to access loans from mainstream lenders leaving you with limited choices.
There will always be someone willing to lend you money but do your research and work out what it will cost.
Often borrowing from these lenders can mean paying back in excess of twice the amount borrowed.
If you are confused by the interest rate ask to see the total cost of the loan and most of all be honest with yourself about what you can afford.
Deciding which credit option is best for you is not easy so, if you have to borrow money the following facts may help you:
Door Step Lending
Doorstep lending is usually targeted at people on low incomes who would find it difficult to borrow money from other sources. The loans offered by doorstep lenders are generally less than £500 with
repayments as low as £2 per week. These loans may look affordable but in the long term you can find yourself paying back more than double the amount originally borrowed. Doorstep lenders often use local agents to offer loans and the same agents to collect the repayments.
The True Cost
A loan from a door step lender of £500 over 55 weeks @ 17.7% APR will cost £825 to repay, based on a repayment of £15 per week.
Credit Unions
Credit unions are a great way to save or borrow money. They are ideal for people who cannot access loans from mainstream lenders.
Credit unions are financial co-operatives, sometime referred to as community banks. The owners of a credit union are its members and it is run for the benefit of the membership. By pooling savings, members are able to loan money when needed. The rate of interest at which a credit union will lend money is much lower than that offered by a door step lender.
Credit unions encourage saving as well as providing other financial services to members.
The True Cost
A loan from a credit union of £500 over 54 weeks @ 12.7% APR
will cost £534 to repay, based on a repayment of £10 per week.
Th ere are a number of well established credit unions operating in
the areas in which Muir has homes.
For up to date information about credit unions operating in your
area call the Association of British Credit Unions 0161 832 3694 or
visit
www.abcul.org.uk
Banks
Many people on a low income may not be eligible for a bank
account with loan facilities. Even if you have access to loan
facilities with a bank remember that the interest rates banks use
to attract customers are not always the rate at which you will get a
loan.
Credit Cards & Store Cards
If you have access to a credit or store card this can prove to be an
expensive way of borrowing money. Some cards charge an annual fee and if you only make the minimum repayment a large part of what you pay is interest.
Catalogues
Some catalogues off er interest free credit over a short period, but
beware that the cost of the product is likely to be more expensive
than on the high street.
Further advice available...
The Financial Services Authority, has launched a new website,
www.whataboutmoney.info. This winning website is aimed
at 16–24 year olds, to help them better understand money issues. It
is part of the National Strategy for Financial Capability, which the
FSA leads, to improve the financial capability of consumers in the
UK.
Visit The Community Legal Advice website –
www.communitylegaladvice.org.uk – for free, confidential and independent legal advice. Features include a debt management tool, free legal information leaflets and factsheets, a tool for searching for legal information from trusted organisations such as Shelter, Help the Aged and the BBC, a directory of legal advisers or solicitors with the Community Legal Service Quality Mark, and a legal aid calculator.
