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5 Habitual Subscriptions we are all guilty of spending money on...

We are all guilty of it, we take simply, seemingly cost effective money solutions in many different areas of our life and they end up being a payment that we get into the 'habit' of paying. When was the last time you had a look at your bank statement and asked yourself, 'do i really need to be paying this?' From our Financial Education and Personal Finance seminars we have been conducting, here are the 5 top financial flaws that people are paying their hard earned money on...

Number 1 - Credit Score Subscription

There has been a huge push in recent years on getting your credit report and this was one of the typical 'sign up for free and cancel within 30 days' payments. But how many of you have left the subscription with Experian or Equifax running? Sometimes this can cost up to £10-£15 per month so make sure you are not paying it and start to get your credit score for free using services such as Clearscore and Noddle.

Number 2 - Mobile Phone Insurance

With the importance of our mobile phones in daily life rising every day, the need to insure and make sure we always have the phone with us is greater than ever, so it stands to reason that when the nice mobile phone salesperson 'disturbs' us with their shop bought insurance, we had better take it. Well, if you have taken insurance through your mobile phone provider, review your payment and see what you might pay elsewhere. Firstly your mobile phone might be covered on your home contents policy if you have one, secondly look at independent insurance companies such as Protect Your Bubble and see if there are savings to be made there.

Number 3 - Gas & Electricity Providers

This is the number one thing that people continue paying for without reviewing. The perceived hassle of moving, the countless metre readings that need to be given and having to wait in for engineers is something that puts many people off. However, the reality is, that it is now very simply to change providers or even just the tariff that you are paying with your existing provider. The first thing you should do is call your existing provider and see if there is a cheaper tariff you can be on, after that use services such as USwitch or Comparethemarket.com to look for other energy deals. To switch over is easier than ever, finally putting the power back in your hands.

Number 4 - Store Cards

We have all been offered them, '10% off if you take a store card now' and suddenly we have a wallet or purse full of them. Well, it is time to ditch the store cards as they are typically the highest type of mainstream credit you can get. Some cards charge up to 30% interest on purchases which is 33% more than even a credit card. If you have got large store card balances, get them transferred to a credit card or consolidate them with a lower rate personal loan from your bank and get the scissors out, you won't be needing them again.

Number 5 - Electrical Extended Warranties

Have you bought an electrical item in the last 3 years such as a TV, Washing Machine or Fridge Freezer? Chances are you would have been told about the extended warranty which will save you money if something went wrong with your purchase in a certain period of time. If you have, check what you are paying for it and see if it really is worthwhile. Most of these warranties are expensive, have high excesses (the amount you have to pay before work is carried out) and also a list of exclusions as long as your arm. That, together with the fact that the build quality on electrical goods is now as good as it has ever been means that maybe it is time to ditch the warranty. If you are worried about having to get repairs done, save your own money. Put £15 a month away into a bank account which will save you £180 per year. Over 3 years that is £540 you will have for repairs, or a holiday if you fancy one!

Remember to keep reviewing your bank accounts, at least 3 monthly to make sure you know what is coming in and going out and keep being financially healthy.

#personalfinance #financialeducation #money #savings #financialliteracy

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