Interest rates are often a hot topic of discussion for many people. At the time of writing, the Bank of England’s “base rate” of interest stands at 0.50%. If that rises, it will almost certainly have a profound effect on the economy. For example, your mortgage interest rates will also rise. When that happens, you may have to pay more money each month if you’re on a variable rate.

Interest Rates - Cutting back on luxuriesThe Bank of England’s base rate has been low for a while now. But, if they decide to raise it soon, you could find yourself out of pocket each month. If there’s no way of earning more money, how can you still afford to pay your bills each month and put food on the table?

The obvious answer is to cut back on some “luxuries” that you enjoy. Here are some examples that you could do without, and some real alternatives to them:

Club Memberships

Most people will pay a regular subscription for something leisure-related. For example, they might have a gym pass. Those costs might seem low to you in the grand scheme of things. But, when interest rates become higher, they are luxuries you can cancel to save cash. Instead of going to the gym, you could make use of free public facilities like parks. Even some leisure centres are free in a few circumstances, believe it or not!

Satellite and Cable TV

Interest Rates - Cutting back on holidaysDo you pay to watch channels like Sky Movies or Discovery? If so, you’ll need to cut back on your premium entertainment. It’s possible that you could be paying too much money. In most cases, if you phone your provider and threaten to leave, they might offer you a deal to stay with them. A 50% discount for 12 months isn’t unheard of from the retention teams of such providers. They can also check which channels you seldom watch and reduce your package to a cheaper one.

Another option is to cancel your subscription entirely and stick with Freeview. The good thing about the digital switchover is you’re no longer stuck with just five channels. It’s worth considering, especially if you don’t watch much TV.

Premium Food Deliveries

Many online retailers promise fresh produce direct from local farmers. You get your fruit and vegetables in boxes delivered to your door. Of course, all that comes at a cost. And, it’s usually a big one!

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.