Spring clean your New Year finances and save up to £230!

The New Year is the perfect time to spring clean your finances. Bacs, the organisation responsible for Direct Debit, is urging everyone to follow a few simple steps and take full control of their money, making this the year of financial empowerment.

Bacs top 5 ways to spring clean your finances:

1) Five minute money health check:
The most important step on the way the managing finances effectively is to set aside five minutes each month to check your bank statements. In this way you can keep track of how much is leaving your account and when, ensure that all the payments are correct, and if there is a mistake, you will be aware of it more quickly and able to take action.

Key fact: All Direct Debit payments are protected by a money back guarantee - in the event of an error being made you can speak to your bank for a full and immediate refund

2) Budget monthly:
At the beginning of each month, work out how much your household and personal commitments will cost, using a calculator like the one at www.thesmartwaytopay.co.uk. This will show you exactly how much money you have to spend on little extras each month.

3) Save money where you can during the year:
There are many ways that you can look at saving money. One of the most popular ways to save is to switch suppliers of, for example, household utilities or insurance – there are dedicated websites for this purpose. But there is another very simple option, Direct Debit. Many companies will offer you a discount if you pay your household or personal bills by Direct Debit, allowing you to save as much as £230 a year!*

4) Schedule bills to suit you:
Try to plan your finances so that bills arrive just after you have been paid, this means that you will be more likely to have money available to pay them and any left over money is then yours to spend.

Key fact: Direct Debit is a highly flexible payment method, with many companies offering a variety of payment dates and frequencies. Always choose the one that suits you best. With Direct Debit you can simply check payments off against your statement, rather than having to write out a cheque or make a payment online

5) Pay in instalments:
Payment by instalments can help you to manage your regular household bills more easily, and you can also often choose to pay personal bills such as mobile phone bills or sports club membership in instalments by Direct Debit, enabling you to spread the cost and soften the impact on your finances.

*Household money savings have been formulated as follows, using sample data collected from a cross section of some of the UK’s most popular suppliers: