Save £2,082 just by ditching these five bad

Lent is the perfect time to ditch bad habits such as
smoking. But why not take the opportunity to
abandon damaging financial habits too?
Telegraph Money teamed up with Damien Fahy,
author of The 30 Day Money Plan , a book of money-
saving tips, to list some of the most common.
1. Got savings? Pay off more of your credit card debt
It's important to have savings, and ideally everyone
would have the equivalent of three or six months'
salary. But saving beyond this is unlikely to be a good
idea if you have debts.
The logic is simple: debts usually cost more in
interest than savings earn.
There are of course exceptions. Those who have the
discipline to manage their debts and not pay any
interest through introductory 0pc credit card offers
can, by boosting their savings instead of reducing
debts, earn interest on "free" money.
Mr Fahy said: “The trouble is that most people save
money while making minimum monthly repayments
on their existing credit card debts.
“With credit card rates typically as high as 18pc and
savings accounts typically paying around 2pc,
consumers are literally paying to save money. If
instead you clear debts with savings, you could save
as much as 16pc interest a year."
With the average credit card debt per household
standing at £2,346, £422 in annual interest payments
could be shaved off.
2. Switch savings to a current account
Some of the best interest rates are available on high-
interest current accounts rather than standard
savings accounts.
Some current accounts pay as much as 5pc on your
savings, whereas the best easy-access savings
accounts pay just 1.6pc.
“You will need to pay a regular amount into the
account each month to qualify and the interest rate is
usually paid only on the first couple of thousand of
pounds,” Mr Fahy said.
“Even so, you could make around an extra £68 a year
in interest before tax by thinking differently."
Banks increasingly rely on cash incentives to attract
new current account customers, so money can be
made simply by switching your everyday banking.
Clydesdale Bank pays £150, while First Direct offers
£125 .
3. Pay car insurance annually not monthly
Paying bills every month by direct debit is normally a
good habit to get into. But it can sometimes mean
that you end up paying more, particularly when it
comes to car insurance.
Research by comparison website
MoneySupermarket.com last summer found that
paying for car cover in monthly instalments added
11pc to the typical premium.
This is because the insurer is essentially lending you
the money to pay for the policy - and you pay interest
on the loan.
“Given that the average car insurance bill is around
£670, paying upfront could save you £73 a year,” Mr
Fahy said. "But other services, such as utilities, are
cheaper to pay for monthly direct debit."
4. Ditch branded goods
Several "taste tests" have found that shoppers cannot
really tell the difference between well known brands
and cheaper supermarket versions.
Those who make the switch can typically save around
a third.
For example, Tesco’s Everyday Value baked beans
cost £0.24 (420g), while Heinz's version costs £0.75
(415g). Other examples include Kellogg's Special K at
£3.99 (750g) versus Asda cornflakes for £1.48 (750g)
and Sainsbury's digestive biscuits basics at £0.35
(400g) compared with McVitie's digestive biscuits for
£1.15 (500g).
According to the latest figures from the Office for
National Statistics, families spend an average of
£58.80 a week on food. Cutting out branded goods
from the entire weekly shop could therefore save
households around £1,020 a year.
5. Stop hoarding
Pancake Day, Shrove Tuesday, is traditionally a day
when families use up ingredients in their cupboards
before the start of Lent.
Why not apply a similar principle to the contents of
your attics and garages?
According to research by Confused.com, another
comparison service, the average value of forgotten
goods in Britons’ attics comes to £348 .
“The average penny jar contains about £41 , while we
also have an average of £110 in unused foreign
currency," Mr Fahy said.