The Christmas New Year period is that time of year when it’s good to do some shopping around to find the everyday household savings.
For us at Financy, this usually involves trawling through all the subscriptions that have been added during the year and doing a purge – frankly Disney is on our hit list for a delete.
But we’ve also been reminded by comparison website Mozo (not affiliated) that there are five ways you could cool down your personal finance costs this summer with savings up to $6,478 on offer.
Here’s what they are and why we think they are worthy of a share on Financy:
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Refinancing to a low fixed rate could save you up to $3,562 on average
With talk of interest rate rises next year, comparing home loan rates and switching from the average variable rate to a low fixed rate could see you make a significant saving. Mozo found it’s possible to save up to $3,562 in interest in the next 12 months by switching an average $400,000 home loan from the average variable interest rate in its database of 3.08% to the leading fixed rate in its database of 1.59%.
Interest rates are getting closer to 4% and they could be past that very soon. Make the most of what is available because the shift is coming.
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Using a balance transfer offer to switch from a high rate to a lower rate credit card could save you up to $1,141
If you’ve been using a credit card with an interest rate of 20% to make the most of the sales season and you’re carrying a balance forward, it’s a good time to take control of the debt and consider taking advantage of a 0% balance transfer offer over 12 months. On a $10,000 credit card debt this could save you $1,141 in interest.
I personally think that switching to a 0% interest credit card can be a great move, but just read the fine print on the honeymoon period so you can get on top of repayments within the timeframe when things are 0%.
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Logging on to a better NBN provider can save you $1,017 a year
If you’re looking to take the heat out of your home internet bill, Mozo found that by comparing the NBN services on offer and switching, you could save $1,017 on a NBN 100 plan.
What I also recommend is that you let your NBN or Telco provider know that you are looking to switch because you may well find that they come to the party with discounts that will save you the hassle of moving.
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Turning the heat up on your energy provider could save you $455
With many of us set to fire up the air conditioning in a bid to stay cool this summer, it can pay to compare providers to help ensure you don’t overheat your electricity bill. Mozo found people in New South Wales, Victoria, Queensland, South Australia and the ACT could save $455 by comparing and switching providers.
It can also pay to investigate solar panels when you own your own property. This will cost a bit to set up, but will saving you significant dollars over the long term.
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Average price differences of $303 a year between car insurance quotes for comparable cover
With many of us heading back out on the roads, now is a good time to reassess your car insurance cover and see if you can make a saving. Mozo looked at 35 car insurance providers across 9,503 customer scenarios and found average price differences of $303 a year between quotes for comparable cover.
Just remember to read the fine print. For example is smashed glass part of your coverage? Many insurers will have this as an add on, and there are plenty of these optional extra out there that won’t always be divulged with your cheaper providers.
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