7 Ways To Slash Those Bills!

If you need to hang onto a bit more cash, why not follow these tips to check council tax charges, reclaim gas and electricity overpayments, and many more.

If you've been wondering why your current account seems to have slightly more money in it than normal recently, this may be because February and March are your Council tax free months (don't worry if you didn't realise this -- our editor was surprised when I told him!). Most Councils divide up our yearly charge by ten, rather than twelve, so although we've paid the same amount it can feel like we have a bit of a breather for those other two months.

What's more, many water companies have a similar scheme, dividing our charges by eight instead so we have four, charge-free months.

However, the first of the newly calculated council tax charges are about to be taken, so you will shortly be receiving your 2007 bill if you haven't already. And yes, you've guessed it; council tax has increased (as have in most cases water rates). In fact the only bills that should be falling are our gas and electricity bills, although many suppliers seem to be holding out for as long as possible before doing so.

Of course, if you haven't at least had a cost of living pay rise, these increases will mean you've effectively had a pay cut. But there are ways to fight back - either by reducing your bills or claiming back extra cash. Why not try these:

1. Council Tax

For a start (and since we've mentioned it already) have you checked that you're paying the right amount of council tax? Enter your postcode at the Council Tax Valuation site and you can find out what band the other houses in your area are in.

If you're paying significantly more council tax, but live in a home of similar size to your neighbours, you could find you have grounds to appeal to your local valuation office. And should the valuation office agree that you should be in a lower band, you will be entitled to be repaid your overpayments all the way back to 1993, when council tax was first introduced (although previous owners will be entitled to overpayments made when they lived in the property). Some Fools have claimed up to £2,500 in overpaid council tax, so it's well worth checking. Find out more, here.

Additionally, don't forget that some residents can reduce their council tax by claiming certain discounts. However, remember to tell your council tax office if you should cease to be entitled to a discount -- failure to do so can lead to prosecution.

2. Gas and Electricity Direct Debit payments

If you pay for your gas and/or electricity by direct debit, you may well have unknowingly overpaid, during the year. Many suppliers over-estimate the amount of fuel we will use, meaning that after twelve months our accounts can be in credit, which can in some cases be by hundreds of pounds.

Don't give your supplier an interest-free loan -- phone up with a recent meter reading after you've made 12 payments and ask for that cash back. Some Fools (including myself) have claimed back over £250 -- not to be sniffed at! Find out more, here.

3. Switch supplier

And while we're talking about gas and electricity suppliers, don't forget that by switching supplier you can save a fortune. Check out a comparison site such as The Fool's own Compare and Switch service, and find out how much you could be saving. And don't forget, although switching to a dual fuel tariff is more convenient, you may be able to save even more by switching to separate suppliers.

4. Cheaper Digital TV

Come October and the first phase of the big switch over from analogue to digital TV will take place in Whitehaven, Cumbria. This will be followed, region by region by the rest of the UK until 2012, when we'll all have switched.

If you aren't already watching digital TV, don't panic. Switching can be a relatively pain free process and can cost as little as £25 -- why not follow our tips for how to go digital for less. If you already have digital TV but think you're paying too much, check out our best value ways of going digital.

Incidentally, if you're a Virgin customer bemoaning the loss of the Sky channels don't sit back -- give them a call and claim some compensation -- some Fools have gained free calls, free upgrades or actual cash discounts off their monthly bills.

5. Switch to a cheaper broadband provider

More of us are choosing to have broadband (a fast, permanent internet connection) in our homes, and while prices have been coming down, with some suppliers even offering free broadband, many of us have felt tied to our providers and unable to switch.

But did you realise that a new ruling last month by Ofcom has meant that providers now have to let us have our Migration Authorisation Codes (MAC) within five days, meaning that switching to a new supplier should now be faster and easier?

Check out the deals out there, choose the one you like and then call your provider to tell it that you wish to switch and need your MAC code. Pass this on to your new supplier and it should have switched you within 30 days. And don't forget to check out those bundled broadband, phone and digital TV packages - they can be extremely good value.

6. Rent a Room

This is a bit more of a radical reshuffle, but if you need some extra cash, have an extra room and don't mind sharing, why not rent a room out? You can currently receive up to £4,250 per year tax free (around £354/month) if you rent out a furnished room in your home. What's more, you don't even need to own your home; renters can rent a room, too, provided their lease allows it.

7. Mortgage

Finally, one of the best ways to save money is to keep on top of that mortgage. Note when your fixed/discounted period will end and start looking for a good deal to re-mortgage to about three months before this date, if you don't want to risk paying its hideous standard variable rate (typically 7%APR).

Rising interest rates have meant that good fixed deals are becoming harder to find, and with another base rate rise widely predicted for the summer, variable rate mortgage payments could potentially increase again. Look for a good rate, but don't forget to take into account the mortgage lender's fee -- this becomes more important the smaller your home loan.

Current Best Buys

Best buy fixed rate deals of the moment in our Mortgage Centre include Portman BS's two year fixed rate deal at 5.12%APR, with a £999 fee, or its three year fixed rate deal at 5.39%APR, with a £599 fee.

Alternatively, top variable rates include a 2 year discounted deal from BM Solutions (base rate -0.31%, currently 4.94%APR) with a £599 fee, or 5.14%APR from Nottingham BS (including a 2.1% discount for 3 years) with a £595 fee.

So don't let your bills get on top of you; tackle each one head on and aim to reduce it as much as possible. Good luck!

More: Find out how to Switch and save gas and electricity suppliers.