As the rising cost of living continues to put financial pressure on Australian families, finding practical ways to trim household budgets has become increasingly important.
For many older Australians making ends meet, shopping around for insurance cover, loans and utility providers is one proactive way to combat price hikes at the petrol pump and supermarket, and regain control.
According to new data released by leading personal finance comparator, Compare Club, investing time to look for better deals on essential utility services and other critical lifestyle expenses is time well spent – and could save Aussie households up to $7388 a year.
It’s an annual savings figure that is even higher than the 2022 findings from the Compare Club analysis, which revealed potential annual savings opportunities of up to $6622.
Squeezed
“With so many costs going up over the past year, we’re seeing a lot of Australian households increasingly squeezed when it comes to finances, but they’re also able to get a significant reprieve when they switch a major expense, such as their mortgage, car loan, or health insurance,” says Compare Club chief executive Andrew Davis.
Homeowners feeling the pinch of the latest interest rate rise could save $2606 on their home loan – simply by switching lenders.
Unfortunately, though, Mr Davis says that loyalty to existing utility providers and lenders has seen many Australians miss out on genuine savings.
“It can seem quite daunting, especially for complicated products, such as health cover or a home loan, so it’s understandable that some people feel the effort to switch just isn’t worth it,” he says.
With a record string of interest rate rises already hitting the hip pockets of many Australians – and more predicted – this research is proof that relief is possible.
For people who find the idea of overhauling all their household bills too overwhelming, Mr Davis recommends looking at the biggest savings first, adding “there are serious savings to be made even just by reviewing your home loan”.
Outgoings
A closer look at the research shows a variety of ways Australian households can save, including:
- Energy bills – up to $274 in New South Wales; $321 in Queensland; and $183 in Victoria
- Health insurance – families can save up to $375
- Life insurance – average savings of up to $587
- Car loans – refinancing could save around $2600
- Credit cards – around $713 on credit card interest repayments annually.
For many older Australians uncertain what the 9 May Federal Budget will mean for their superannuation savings and Age Pension benefits, taking steps to reduce outgoings may become even more critical. Mr Davis says it is something that does not have to feel arduous.
“How much the cost of loans, energy and insurance will increase over the coming months is somewhat unpredictable but every household has the power to be able to seriously cut their costs with just a few phone calls,” he says.
Do you trust comparators? Does this information encourage you to look for savings by switching? Why not share your thoughts with our members?
Also read: Advocate demands interest-free loans to help households switch to renewable energy
