Making your Money go Further in 2010

For many of us, 2009 was a tough year. With falling house prices and rises in the price of credit, it hasn't been an easy time to raise finance, and the wallet may have seemed tighter than usual. If this sounds like you, then don't panic, there are plenty of ways to ease your finances and make your money go further in 2010. Following a few easy schemes could save or make you hundreds of pounds a year – just think what you could do with an extra £500! Here are just a few of your options.

Consolidate Your Debt

If you've got credit cards and personal loans outstanding all over the place, or even if you've just got a few, then it's time to sort it out. Debt consolidation can make repaying your debts all the simpler, and also make it cheaper. If you've got £1000 outstanding on a couple of credit cards at 18%, and a £3,000 on a personal loan costing your 10%, then it would be better to get a new loan at 10-11%, pay off everything with that loan and then make one monthly repayment balance to that new debt – it'll be simpler and cheaper! Regarding smaller credit card debt, it'll be worth checking out some of the 0% balance transfer deals available. These will allow you to transfer your outstanding balance to the new card for around a 3% fee, then you'll have time to pay off the card at a rate of 0% interest.

Think Carefully About Insurance

While insurance deals might not fill you with a whole load of joy, getting the one that's right for you will save you heaps of cash. Carefully review each insurance deal you have and consider if it's the best you could get. If your car is old, you might want to downgrade your car insurance to just Third Party Fire & Theft, and you should also consider your mileage. Meanwhile your house contents cover will need review on an annual basis. Just make sure you turn over enough stones to find the correct deal for you – it will really pay off!

Upgrade Your Bank Account

Bank accounts are perhaps the most overlooked of all financial products. When people open one, that's it – they simply don't bother to search for another deal. The reality is that changing bank account could either save or make you hundreds of pounds a year. For instance, if you have an overdraft in a bank charging 18% APR for use of the facility, then changing to one that has a 0% overdraft for an introductory period could save you a lot of money. Meanwhile, if you're in credit, then think about the AER on your bank account and if you actually earn any. Check out Santander, for instance, who offers 6% AER on balances up to £2,500 on its bank accounts and is worth a look.