You might have hundreds of pounds just lying about, waiting to be spent. Sound too good to be true? Read this.
In today's instalment of our "Cracking The Credit Crunch" series, I'm going to look at how you can improve your financial situation simply by finding all the pennies - and pounds - that you've completely forgotten about.
According to recent research, Britons have over £4 billion worth of gift vouchers, credit notes, air miles and loyalty card points lurking about unredeemed. Over 80% of people are sitting on this sort of `forgotten' money.
Have a look at this table:
% of adult population with unredeemed points | Average Value | |
|---|---|---|
Credit card points | 57% | £41.51 |
Gift vouchers | 51% | £42.46 |
Credit notes | 6% | £32.43 |
Other loyalty schemes | 34% | £35.06 |
Airmiles | 20% | £162.88 |
Source: Moneyexpert.com
Based on this research, my advice is: the next time you need to do your weekly shop, book a flight or buy someone a birthday present, check whether you can avoid handing over any dosh!
In fact, there are dozens of places where your forgotten cash might be languishing. If you're faced with an urgent expense or are simply trying to tighten your belt this month, here are seven places to look for those forgotten pennies:
Loyalty points
A typical family of four builds up £90- to £100-worth of Nectar points every year. And the good news is, according to Nectar, shoppers are becoming savvier when it comes to spending them.
Nectar told me that in recent months, a higher proportion of customers have chosen to redeem their points onhigher value Nectar deals, rather than settling for the rather measley 1% return usually offered when shopping at Sainsbury's.
And of course, Nectar isn't the only rewards scheme out there. You may regularly hand over your Boots card or Tesco clubcard to the cashier to collect points - but when was the last time you spent any?
Read this article to find out how more about making the most of all reward cards.
Gift vouchers and credit notes
Have you ever been given a gift voucher for a shop you never visit? Received a credit note when you wanted a refund? Hang on to them, and with a bit of luck they could be used to buy the perfect gift for your aged aunt or awkward teenage cousin.
Or if you really don't want them, visit the Unwanted Vouchers website and swap them for others, turn them into cash or even donate them to charity.
Premium bonds
Were you given some as a child? Do you have any idea where they are now? I was clearing out a drawer recently and found a £100 bond I must have had for at least 20 years.
In an absolute emergency, these can be cashed in. Otherwise, hang on to them and you might win some free money!
Loose change
I know someone who throws away their coppers because they're too heavy (no, seriously). Instead, stick them in a change jar in a prominent, easy-to-reach place, and every now and then, get them converted at the bank.
And, of course, don't forget to check down the back of the sofa. Coins fall out of my boyfriend's pockets practically every time he sits down!
Finally, if you're not too snobbish to hunt down pennies on the pavement, you can make a fiver a year or even more, according tothis Fool research.
Coupons
Practically everyone has a few of these lurking about their home. Newspapers, cereal packets and direct mailings often contain discount vouchers and 2-for-1 offers.
Emailed newsletters also offer `exclusive' money-off deals, and even if you don't have any at home, there are whole websites - like My Voucher Codes - dedicated to finding them for you.
And keep reading The Fool! We send out a money-saving tips article every Wednesday and Saturday, and these contain details of the most up-to-datediscounts and dealswe can find.
Old bank/building society accounts
Many of us have old, now-dormant bank and building society accounts, some dating back to our childhoods. Are you sure there's no money in any of them?
Unclaimed tax
A friend recently realised he'd overpaid his income tax a couple of years ago - and has just received a rebate of almost £700.
And this isn't that unusual: recent research by unbiased.co.uk suggests that UK tax-payers lose around £322 million in overpayments each year - so you can see why it's worth claiming that tax back.
If you're in a financial panic, it's easy to believe that a few pence here and there can't make any difference.
But as you can see, someone's `forgotten' money can actually add up to several hundred pounds. So get searching!
> Check out our Money Saving Tips section for more top tips to kick your finances into shape.