How to cut energy bills at home for Christmas

From switching to LED Christmas lights to turning off radiators in an unused room, Michael Foot at Quote Goat offers some of the best tips on saving energy for the holiday season

According to government approval, the “three household bubble” could last five days over Christmas and many people were prepared to receive family and friends.
In some cases, they do this for the first time during the year – which comes with charges for gas and electricity.
While it’s easy to absorb the joys of getting together to safely celebrate the holiday season together, keeping track of your energy bills for Christmas could save you important money that you could invest elsewhere in 2021.
Here are three tips on how to keep your account manageable this Christmas without sacrificing fun and celebration.
Prices of Christmas lights

As a hallmark of lively entertainment, Christmas lights are often the first sign that we are ready to celebrate.
As many households choose to have it turned on in late November or early December this can result in about a month of extra energy use.
If you take the time to search for and find lighting that’s more energy efficient, you can still show off your holiday excitement while lowering your bill.
LED bulbs can be at least 75% more energy efficient than traditional bulbs, saving you tons of money without losing how long you leave them on.
If you want something more manageable, consider investing in smart lighting for your Christmas decorations.
Choosing Christmas lights that turn on and off automatically at certain times will reduce the extra cost of forgetting to turn off the lights.
Understand your warm up

As you spend more time at home throughout the year, many households see their energy bills go up considerably.
However, the fee will only increase when time runs out and family and friends can party between 23 and 27 December.
For your heating system, there are a few quick and easy steps you can take to learn how your home works and reduce your consumption.
For example, if you know how long it will take your house to cool down, you may be able to turn off the heater sooner than you think.
Knowing how fast your house is heating up, you may be able to use less radiators if there are enough in the next room.
Learning how your home uses heat can greatly reduce the cost of your bills over time.
If you’re expecting more people, you can prepare hot water bottles to give them an instant warm boost without turning on the heater.
Or, you can tactically choose which radiator works best when everyone’s partying together.
Consider switching

Many would not think about how changing energy providers could drastically reduce costs.
Once you’ve made sure that you don’t charge a check-out fee before your contract expires, or it costs less than you might have saved, you can take advantage of the comparison website to see how much the new provider can give you. Save.
Once you’ve decided to switch, you will need to take some time to determine how much you will need for the month on average compared to what you are paying with your current provider.
You will often find many vendors offering new customer deals that can save you a lot of what you would have saved by switching anyway.
Once you’ve found a cheaper deal, calculate how much you will save and check how much it will cost to leave your current contract. It’s a good idea to let your vendor know you want to go and see what you might be tempted to do.
This often happens when they make a better deal to keep you as a customer.
Change habits

For many people, Christmas is not only a happy time, it can be financially terrifying too. Therefore, it is always a good idea to estimate your expenses before the holiday season starts.
Changing your current habits and adjusting your expenses is a quick and easy way to celebrate normally while saving money towards 2021.

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These are bills you don’t have to pay off quickly

A sudden, steep but highly anticipated recession means we are all desperate to raise money over and over again and whatever we do, we need to pay off that debt as quickly as possible to strengthen our finances for turbulent times ahead. .

For the most part, this is absolutely correct advice. But not always.

Those with serious debt problems should seek advice from charities such as StepChange, which can develop personal plans for amortization or debt relief.

But if you haven’t and managed to manage your bankroll with unexpected cash in Covid, or if the crisis has left you in annoying but largely manageable levels of debt, here are a few strategies you can use.

Repayments: credit cards and overdrafts

We’ve always known credit cards are an expensive way to borrow money, but now, with the new reverse overdraft fee rules that generate a typical interest rate of 40%, overdrafts in particular are very expensive, although they don’t always realize it.

You’re right to pay it off as quickly as possible, and of course that applies to business cards, thresholds, or payroll loans – the most expensive form of mass loan out there.

Although the “snowball” method of paying off the smallest debt for the first time is gaining popularity with its psychological surge, experts urge debtors to focus on paying off the most expensive debt first. This is likely your overdraft. Clean it up and consider canceling setup if possible. It’s not worth it.

With a 0% reduction on old credit card balance transfer transactions, the days back and forth between free credit transactions without ever being paid back are fast fading away.

Millions of people take vacations to pay off debts. What happens when you finish?
Start by putting the balances on all of your cards below half of the total available balance to reduce the impact on your credit score. Then pay it off quickly and firmly.

Maybe you’ll pay it off: mortgage and personal loans

Long-term loans with lower interest rates sometimes don’t even feel like debt, they just sit in our brains under a file called an “Account”, as if we need something constant in life that we can’t escape.

However, paying a few pounds a month on a mortgage or loan can significantly shorten the term and thus the amount of interest you end up paying. But there is a warning.

First, these products often have an early settlement fee (ERC). Mortgages, in particular, are often a burden if you pay more than 10 percent of the amount you owe over a certain period or in the first few years.

Car loans often impose similar fines depending on the type of funding you have arranged to finance. A fixed rate may be required to pay off car financing and may be covered if early settlement is possible.

Second, as soon as you return the money, they leave. So, if you find yourself in the midst of a corrosive economic pandemic, for example, and you need extra cash to filter you out, this is not a flexible product to return some money even if you are a model borrower. By now, you are probably already exercising your vacation options.

Set up an emergency fund of between three and six months for your usual living expenses before embarking on an overpayment journey.

Another question that arises is whether paying off long-term debt at a low interest rate is the best way to use your money. Horrible cash savings today, even with fixed rate offers that block your money for several years, may not be able to pay you back more interest than you saved on a loan.

On the other hand, investing money can outperform our current very low interest rates, especially with such a long investment horizon. Getting the advice of an independent financial advisor is certainly something, although some investment vehicles have ridiculous management fees given today’s volatile stock market.

Don’t pay: student loans

Around 130,000 UK-based alumni made additional voluntary payments worth £ 2,740 each in 2019/20. Another 10,600 returned for an average of £ 4,310 before going into debt.

But it might be a useless exercise.


Student loan companies have been accused of promoting unnecessary payments
Students, starting university this year and receiving full tuition fees and maintenance loans, could owe more than £ 61,500 on departure, Hargreaves Lansdowne estimates. To get it back in full, they will need a salary of £ 53,100 – provided they don’t take career leave or get a raise.

Coming back to the real world, the average annual payout is now under £ 1,000 a year – just £ 120 in the last decade.

Unsurprisingly, the Institute for Tax Research (IFS) found that only 17 percent of graduates will complete their loan in full.

“It’s very worrying to send your kids to college to run into tens of thousands of pounds in debt – and nobody likes the idea that most of it will pay off in their fifties,” said Sarah Coles, a personal finance analyst at Hargreaves. Lansdown.

“However, if we focus on official student loans, we might lose money – and ignore the really problematic commitments students accumulate along the way.

“Most graduates will only pay back their student loans after they are written off. However, many are so worried about taking on debt that they make additional payments.

“For some, this would be a sensible approach based on careful calculation, but for many there is a real risk that this additional payment will be a waste of money,” he warned.

“During their studies, they’ll borrow thousands of pounds which can be returned to bite off.”

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