Ask yourself how often you use household energy, your mobile or your internet. Chances are it’s a lot. That’s why it is important to create a debt management strategy that ensures you aren’t spending more than you should.

Debt management is a little like spinning plates in that you need to keep your eye on a lot of things at once and act fast to avoid catastrophe. Your ability to clear debt and manage your finances properly will depend on your ability to spot potential money pits.

Losing money is easy, especially when there are hidden clauses in contracts and potentially lethal mobile tariffs. This article looks at the minefield that is utility deals, broadband caps and mobile bills. Knowing what to look out for will help you avoid losing an arm and a leg.

Debt Management advice

Utility deals

Shopping online for cheaper energy deals is certainly the way to go because invariably the best tariffs are found on the web. However gas and electric companies can be a little underhand at times when it comes to terms and conditions. The energy you save on the swings can be easily lost on the roundabouts.

Most of the movers and shakers in the energy business tie in clauses to their online deals – the nature of which depends on the provider. One such clause may include signing up to an online account for bill payments etc. If you aren’t entirely comfortable with this, then you could end up paying a higher tariff.

It pays to take a thorough look at the deal. Take time to go through the small print to ensure you aren’t going to end up paying more because you didn’t meet all of their conditions.

Broadband

Internet providers usually cap download limits to ensure everyone gets a fair bite of the cherry and that a minority don’t clog up the system. Even if you are with one of the bigger providers of broadband such as BT or 3 Mobile, you will probably have a cap on your download ability.

Downloading too many movies, online gaming, or watching scores of You Tube videos are all likely to push you over the limit. Should you exceed your download allowance, the company providing you with broadband will impose a fee and could move you onto a higher tariff.

If you systematically exceed your allowance you may have your contract cancelled, but in any event it pays to know what your limit is and stick to it.

Mobile phones

It’s easy to kid ourselves when we sign up to a phone deal. We look at the tariff restrictions and feel sure we won’t exceed texts or call limits. In actual fact, many of us use our mobiles on unsuitable packages, resulting in higher costs than we anticipated.

Study your form. Looking at old statements will show you in black and white how often you call, when you do it most and how many texts you send a month. On that basis you should choose your new tariff with another network.

Mobile phone bills can easily run out of control and blow your debt plan out of the water. Extra vigilance is recommended. Try using alternative methods of communicating such as email, Skype or smoke signals.

If you would like to get out of debt by lowering your monthly loan repayments, find out how a debt management plan can help you. Alternatively you can call our free advice line on 0800 014 7863