5 tips to cut the costs of living alone

5 ways to save if you live alone

Although living alone can have its advantages, it can also lead to financial difficulties. The Joseph Rowntree Foundation’s research showed that it would cost a single person £14,400 a year to reach a basic standard of living.

Follow Payplan’s 5 top money saving tips to reduce living expenses:

1. Mortgage

Couples are at an advantage as they can split the cost of their mortgage. The best mortgages are available to those with deposits of at least 25%, whether it is in joint names, or individually. If you are looking for single occupancy, you could ask your parents to act as guarantors so that they would be legally responsible for paying the mortgage if you were to default on payments.

2. Council tax

If you are the sole occupant of a property you can apply to receive a 25% discount off your Council Tax bill.

3. Water

People living alone or those who currently pay higher than average charges for their water are most likely to benefit from a water meter.

4. Gas and electricity

Make sure you shop around for the best deals. GoCompare and Money Supermarket are two well-known comparison websites which will help you find the cheapest deal. Some energy companies do not offer discounts to those living alone, but tariffs with no standing charges may an advantage for someone who lives alone.

5. Car insurance

Some car insurance companies may charge you more if there is only one person on the policy. It is often cheaper to add someone else onto the policy. If you do not have a partner, you can lower your premium by including another person, such as a flat-mate or parent; this will save even more if the person is older.

Payplan

If you’re struggling to afford your monthly utility bills contact Payplan today for free advice on 0800 280 2816.

Written by Becky on August 2nd, 2010

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