FIX YOUR FINANCES
Save on bills without switching providers & pay for everything on a credit card – how to make 2025 your richest year yet
Scroll to read how you can save more on the day-to-day
POST-Christmas money worries starting to bite?
With the cost of living crisis, sky-high mortgage rates and inflation, women in the UK are grappling with a host of unprecedented financial challenges.
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Meanwhile, the gender pay gap still sees us earn more than 15% less than men per hour, women make up 55% of those in debt, and by the time we retire, we have £100k less than men in our pension pots.
But help is at hand.
Here, three experts advise how to make this year financially healthier.
Jasmine Birtles is a personal finance and business expert, presenter, and the founder of Money Magpie.
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Mortgages
They were one of the hottest financial topics of 2024 and I don’t see that changing this year.
Unfortunately, there’s still a lot of upward pressure on inflation and I don’t believe rates will drop more than a quarter or half a per cent, if at all, for the foreseeable future, so it’s important to be realistic about what you can afford.
If you’re trying to get a deposit together, there are some schemes that may help – for example, the Lifetime ISA, for people aged 18-39 buying their first home (up to £450,000) anywhere in the UK.
You can pay in up to £4,000 each tax year and the government will top that up by 25%.
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You must have opened your LISA at least a year before purchasing your home.
Some lenders offer guarantor mortgages, so if your parents are willing and in a position to help, they would be liable for your repayments.
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There are also shared ownership schemes run by housing associations.
Ready to apply for your mortgage or remortgaging?
Consider using a broker.
Yes, you may have to pay a fee, but brokers will have access to a wide range of deals, plus their help with the extensive admin side can be invaluable.
They are worth every penny in my opinion, and I particularly recommend L&C Mortgages ().
A potential lender wants to know you are financially healthy and sensible, and there are red flags they’ll look for when considering your application: online gambling, buy-now-pay-later schemes and store cards, and never paying off credit cards.
Clean up your financial activity before applying, so you can present the best image possible.
If you‘ve been given a bonus at work or inherited some money, you might be wondering: “Should I save it or instead pay off some of my mortgage?”
The answer depends on your mortgage rate.
The higher the rate of interest, the more important it is to pay it off sooner, so it could be wise to sink the money into your mortgage instead of savings.
If you’re struggling to make your repayments, it’s essential you speak to your lender.
They will have specialist advisors who can talk you through options, including extending your mortgage term, taking a payment holiday and switching to interest-only for six months.
You can also apply for something called the “breathing space scheme”, which can help if you’ve missed rent or mortgage payments.
Debt
It can feel isolating, but the reality is that many of us are currently in debt.
In fact, the average debt per person in the UK is around £34,000.*
I was once £10k in debt, so I understand what it feels like, but debt is not something you have to navigate alone.
I’m the patron of the charity Community Money Advice, which helps people overcome money problems, and there are other fantastic organisations like StepChange and National Debtline.
They can help not only with finding ways to pay off your debt, like IVAs (individual voluntary arrangements), but also what to do if you can’t, like bankruptcy.
Social media is awash with methods for paying off debts, but I favour prioritising the one with the highest interest rate.
So, if you owe £500 on a store card at 30% interest, pay it off first, while making minimum repayments on other debts.
Then once that’s gone, move on to the debt with the second highest interest rate, and so on.
If you’re eligible for a 0% interest credit card, get one and move other card balances on to it.
Also, remove the temptation to spend – don’t just cut up credit cards, cancel them.
And don’t save your payment details online – not only does it leave your money vulnerable to hackers, it also makes it much easier for you to click and spend.
I’m often asked if it’s important to save as well as clear debt.
My advice is: prioritise the debt but, if possible, have a small pot for emergencies.
On Money Magpie, I have a section devoted to ways you can make money – from dog walking to Vinted – and that extra income can be dedicated to escaping debt.
- Follow @Jasminebirtles and visit .
Gemma Bird, AKA Money Mum, is a money influencer, author and columnist.
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Household Bills
People often think that the only way to get a cheaper deal on energy or phone bills is by switching providers, but that’s not always true.
Every time one of my bills is up for renewal, I check out competitors’ prices on a site like then, rather than switch, I call my current provider to tell them I’ve found a cheaper quote.
Nine times out of 10, they’ll match it.
When you’re on the phone to the provider, check whether you’re actually using all the services you’re paying for.
For instance, are you paying for 10GB on your phone, but your average use is 3GB?
Your provider will have all these details and be able to give you a better deal.
Gas and electric are hugely expensive at the moment, but look for deals specific to your needs – I’ve recently switched to Octopus because it provides a great deal for people with electric cars.
Charging our car now only costs us £2 each time, whereas it cost us about £10 before, and, of course, that’s much cheaper than filling up with petrol, which can cost up to £80 for a full tank.
If you have a petrol or diesel car, check out for the cheapest price in your area.
Sometimes, it’s worth travelling that little bit further to get a much better deal.
One in 20 households have a leaky loo and if that is constantly leaking water from the cistern into the pan, it can waste 200-400 litres of water, adding around £300 a year to your water bill.
The very worst leaking toilets can add over £6,000 a year if not fixed!
To check, add a couple of drops of food colouring to the cistern and wait an hour.
If the toilet bowl has coloured water in it later on, there’s a leak, so get it fixed.
Day-to-day living costs
Every year I save hundreds, often thousands, of pounds with one trick: I pay for everything in my day-to-day life, from food to clothes and days out, with my credit card.
It sounds odd for anyone worried about their finances (and if you’re in debt, clear that first), but the key is to pay it off in full every month.
So, how does it save me so much money?
I use a reward credit card, which gives me points every time I spend, so it’s literally free money.
There are many available, from providers such as Tesco to Marks & Spencer.
Mine is from Virgin and this year, I’m using the points to pay for flights to Florida.
They would have cost £4,000, but I’m only paying £995 using my points, so that’s over £3,000 I’ve saved just by spending money normally.
With food bills, it’s easy to cut down prices. I was throwing away more vegetables than we were eating, so now, most of ours are frozen.
Something like frozen onions are slightly more expensive, but we now don’t have to bin the uneaten, mouldy one, so it becomes cost-effective.
Make a note on your phone of what you usually pay for non-perishable items, and check that list each time you go shopping.
When you spot a deal, bulk-buy items you use all the time.
I recently saw a deal on 24 toilet rolls for £5, when they’re usually over £10.
If you buy four packs, you’ve already saved £20.
It’s also worth checking out Amazon.
We’re big fans of a certain kind of cola and non-alcoholic beer, and we can get them so much cheaper as a bulk-buy from Amazon than in any supermarket.
Branded paracetamol, ibuprofen and aspirin can cost four or five times more than the supermarket own-brand, so always check the PL number near the barcode on the back.
If that is the same PL code as your usual brand, it’s exactly the same product.
I also love , which has discounts for everything from supermarkets to eating out, and browser extensions like and , which automatically scan websites for the best money-off deals.
For children’s clothes and toys, I usually swap with friends, or buy from charity shops.
Young children often have no idea what toys they actually have, so I use a rotation system.
I have seven boxes full of my daughter’s toys and every week, I swap the box so she has ”new” toys she’d forgotten about.
For make-up and toiletries, I use websites like , which is based in the Channel Islands so you don’t pay as much tax. I also shop on Vinted – people often re-sell unwanted Christmas presents at this time of year, so you can find some brilliant bargains.
- Follow @Moneymumofficial.
Clare Seal is the creator of the @Myfrugalyear Instagram account and a financial coach, speaker and author.
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Savings
When it comes to where to save your money, and for what purposes, I like to encourage people to think of savings like a chocolate fountain.
The top tier of the fountain is the smallest and fills up first.
This is where to put the money you want to be able to access quickly, for emergencies like a broken boiler.
Look for savings accounts that are for cash savings, instant access, and the best interest rate you can get.
Digital bank Plum currently has the market-leading cash ISA, but do make sure you research the best rates when you’re ready to invest.
You’ll take a hit on the interest for the instant access, but it’s worth it.
Next, the middle tier, which is where to stash savings for medium-term financial goals, for example a new car.
You want a fixed-term savings account for this because to get the best interest rate, you have to leave the money there for a certain period of time.
The bottom tier is for your long-term wealth.
This is where to consider investing money in a stocks and shares ISA.
Investment brings risk as there will be ups and downs in the market, so only put money here for the long-term.
Treat saving like paying a bill and either transfer money into your savings pots on a set date each month, or set up standing orders.
If you’re self-employed, some sole trader bank accounts have a ”splitter” function, so as soon as a payment hits your account, a percentage of it is placed in a savings account.
There are so many savings challenges on TikTok these days.
Anything that gets people interested is a good thing, but I’m not a fan of any that involve saving cash, like the envelope-stuffing challenge.
We live in a largely cashless world and I don’t think it’s compatible with daily life.
However, I really like the 1p savings challenge where you save 1p on day one, 2p on day two and so on.
At the end of a year, you’ll have over £660! Digital bank Monzo now offers its customers this function.
“Rounding up” is also popular, with banking apps rounding up your purchases by a few pennies and saving that amount for you.
Plum, Chase and Chip all offer this function and the amount of “unconscious savings” you accumulate can really grow.
Pensions
Even the most financially savvy can get rattled at the mere mention of pensions.
They can be scary and bamboozling, but they really don’t need to be.
There are two types of pensions: workplace and SIPPs (self-invested personal pension).
Typically, if you’re employed, your employer will give you the opportunity to join the former.
You contribute from your salary, and they will make a contribution, too.
A SIPP, more common among the self-employed, is a pension you set up and pay into yourself.
The government tops it up by 25% or you declare it as part of your tax return and get relief on it.
It’s possible to have both types at the same time – for example, you may be employed with a workplace one and also choose to save into a SIPP, or have consolidated old pension pots into a SIPP.
It’s never too early – and never too late – to start saving into a pension.
Even if you start at 40, work until 70 and save £200 a month, you’ll end up with a fund worth around £200k.
There is a pensions gender gap and we need to be aware of it.
As women are more likely to take time off work for maternity leave, have career breaks and work part-time, this impacts the years and amount they have to save into their pension pot.
If you’re in a relationship and you’re worried about your contributions, talk to your partner about how you split household costs to enable you to save as much as possible of your income into your own pension pot.
Finally, it’s not uncommon to have moved around different employers and have several pension funds.
Providers like PensionBee are a good source of advice on how to track down old pensions.
You’ll need information including your NI number and dates of employment and address at the time.
Once you have these pensions, you can leave them where they are or decide to consolidate them into a SIPP.
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It’s worth speaking to an independent financial advisor if you’re unsure what to do – visit to find an FCA-regulated advisor.
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