Seven common money mistakes you’re paying THOUSANDS for – how to avoid them

HOUSEHOLDS are being battered by a cost of living crisis – but fixing these seven common money mistakes could save you thousands.

You might not know that you could paying a wedge for a forgotten subscription, or not applying for discounts on your bills.

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Although it might not seem much, these errors all add up – and you could be losing out on some big money.

This could hit your wallet even harder as households battle against the worst cost of living crisis seen in decades – with energy, food and fuel bills going up.

Millions saw their bills DOUBLE to an average of £1,971 from April 1 when the new price cap – which limits how much suppliers can charge customers for energy – rolled out.

And drivers are paying for spiralling fuel costs, while fridge staples have rocketed in price by up to 37.2%.

It means you’ll want to make savings where you can – and changing some of the ways you’re handling your cash could be a start.

We explain how to avoid these seven money mistakes you could be making that’s costing you thousands.

Not going through bank statements

We’ve all been guilty of signing up for a subscription only to forget all about it.

But paying for something like this unnecessarily could be identified – and fixed – if you regularly go through your bank statements.

It means that you’ll spot that direct debit coming out of your account for a service you really don’t need.

It’s also an opportunity to see whether you’re getting as much use out of your subscriptions too.

For example, you might not have used your Amazon Prime, gym membership or Netflix as much – and it could be worth axing it to save yourself hundreds of pounds in the long-run.

Bills are going up – and you could be paying even more for them if you’ve signed up for extras you really don’t need.

For example, you might have opted for an unlimited data allowance on your phone, or paying for a landline and call add-ons that you don’t use.

But it all adds up – add-ons could cost up to nearly £7 a month depending on what you’ve signed up for, Which? consumer rights expert Adam French said.

Not using 0% interest balance transfer card

Being in debt can be a worrying time. But with a cost of living crisis rumbling on, many are finding it harder to keep out of the red.

If you’ve found yourself struggling to pay off what you owe, look into a 0% interest balance transfer card.

These types of money transfer credit cards allow you to move over debts you already owe onto a new card, and you won’t pay interest on this amount for a set period.

By putting a stop on paying pricey interest, you can clear your debt much more quickly and cheaply.

Currently, the longest deal is more than two-and-a-half-years.

Not haggling your bills

It can feel a bit awkward bartering on your bills.

But some costs can be reduced – including your broadband, mobile, TV bills and more.

That’s because a lot of these providers have teams in place whose job it is to offer you a sweet deal to stay if you threaten to leave because prices are too high.

According to research from Which? you could save nearly £250 haggling on your bills.

A Virgin Media customer recently got £264 a year knocked off their bill just by asking for a discount.

You could even haggle when buying a house – one couple saved £11,000 from doing this.

Not making most of FREE cash schemes

Thousands of households could be missing out on a big wedge of free cash if they’re not signed up to government savings schemes.

Signing up to a Lifetime ISA could see you bag up to £32,000 for free from the government.

A LISA is a savings account that anyone between the ages of 18 and 40 can open to save for buying a first home or for their retirement.

You can put in a maximum of £4,000 a year until you’re 50, and the government adds an additional 25% bonus onto what you put in.

If you put the maximum in for 32 years, that would give you £32,000 from the governmnet.

While self-invested personal pensions schemes can also score you free money.

It is a pension you set up yourself to put aside money for your retirement, rather than through your workplace.

You can choose where your money is invested – in funds, shares, or trusts for example – and can put in a maximum of £40,000 per year.

If you are a basic rate tax payer paying into these pensions, then for every 80p you put in, you’ll get 20p from the government through tax relief.

That could add up to thousands of pounds, depending on what you are putting into it per month.

Not applying for bill discounts

You might be paying more than you should for your bills.

For example, you could be eligible for a council tax reduction of up to 100% in some cases.

For example, single people get 25% off, and if you are on a low income or receiving benefits, you could eligible for a reduction too.

Check in with your local council to see if you are eligible for cash off your bill.

While households on a low income could also get money off their water and broadband bills.

These suppliers offer reduced tariffs and rates – so check in with yours if you are eligible for money off.

Not applying for benefits

If you’re struggling to make your cash stretch, you may be entitled to some benefits.

Make sure you’re not missing out on thousands of pounds by not checking your eligability.

You can find free-to-use online benefits calculators to work out what you’re entitled to.

Entitledto’s free calculator works out whether you qualify for various benefits, tax credits and Universal Credit.

But you have to register to use the service – if you don’t want to do this, consumer group MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data that let you save your results without logging in.

This post first appeared on thesun.co.uk