MEDIA RELEASE

Spring into savings: Tips on how to clean up personal finances

Six tips on how to Spring clean your personal finances and shine some light on possible savings

17 September 2021

  • Spring into savings of almost $9,000 with a little personal finance housekeeping
  • Comparing home loans rates and taking advance of a cashback offer could deliver the biggest saving
  • Taking advantage of a 0% balance transfer on a credit card and comparing insurance and internet providers can also deliver sizeable savings

With household finances under pressure for many people, Mozo has crunched the numbers and come up with six ways you could take the heat out of your budget this Spring with savings up to $8,926 on offer.

“With many people under financial pressure, Spring is a good time to take charge of your personal finances and set yourself up to start saving in the year ahead,” says Mozo spokesperson Tom Godfrey.

Mozo has come up with six simple ways you could save across a range of household financial products, services and subscriptions

Refinancing your home loan with a cashback offer could save up to $5,700 on average

Comparing home loan rates and taking advantage of a cashback offer could see you make a significant saving. Mozo found it’s possible to save up to $5,700 a year by switching an average $400,000 home loan from the average variable interest rate in its database of 3.14% to the leading rate of 2.03% with a cashback offer. The move could save you $2,700 in interest in the next 12 months and see you bank $3,000 cash back.

Using a balance transfer offer to switch from a high rate to a lower rate credit card could save you up to $1,174

If you’ve been using a credit card with an interest rate of 20% for an online shopping spending spree during lockdown and are carrying a balance forward each month, now’s the time to take control of the debt. Mozo found if you are carrying a $10,000 balance forward each month, taking advantage of a 0% balance transfer offer on a card with a 9.90% interest rate could save you $1,174 and cut 2 months off your repayments. 

Compare car insurance policies and reduce the kms you’re driving 

With many of us faced with stay at home orders and travel restrictions, getting your car insurance provider on the phone and pushing for a discount for driving less kilometres could be a good idea. If you can’t drive home a good deal with your current provider, Mozo’s analysis found average price differences of $902 a year between quotes for comparable cover.

Logging on to a better NBN provider can save you $710 a year 

As many of us Zoom through the working week, home internet use is booming so it pays to ensure you’re not paying too much for the time you spend online. Mozo found that by comparing the NBN services on offer and switching, you could save $710 on a NBN 50 plan.

Turning the heat up on your energy provider could save you $292 

With Spring bringing warmer temperatures, many of us will be putting pressure on our electricity bill when we fire up the air conditioning in a bid to stay cool. Mozo found people in New South Wales, Victoria, Queensland, South Australia and the ACT could save $292 by comparing and switching energy providers.

Cancelling unused streaming subscriptions could save $148 a year 

As many of us stream our way through lockdown it’s easy to forget a streaming service you’ve subscribed to but the good news is Mozo found cancelling an unused streaming service could save up to $148 a year.

“Make Spring a time to shine some light on savings you could be making and set yourself up for a brighter financial future,” Godfrey says.

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Notes: $8,926 is the total saving across all six items listed in this release. Home loan saving based switching from the average variable rate in Mozo’s database of 3.14% compared against the leading variable rate of 2.03% with a cashback offer, paying principal and interest over 25 years on a $400,000 loan with an 80% LVR, fees and charges not included in calculations. Balance transfer card savings calculated on a starting balance of $10,000 making repayments of $850/month, by taking advantage of one of the leading low rate 0% balance transfer cards such as Bankwest's Breeze Mastercard with a 0% balance transfer rate for 15 months and a 9.90% ongoing purchase rate and an $49 annual fee, $0 first year. Streaming service nationally representative figures from survey of 2,305 Australians conducted by Researcify between 20 May 2021 - 1 June 2021. Average yearly cost of streaming services was calculated by an average of all 2,305 respondents. National streaming spend was calculated with the average yearly spend, and the national total of households from ABS. Yearly savings were calculated using the average spend of respondents who don’t cancel subscriptions.