Time to read : 5 Minutes

Following November’s cash rate hike, it’s clear that cash-strapped Australian households who were struggling before are now treading water like never before. 

I asked our experts to take a look at some of our biggest household bills and see where meaningful savings can be made. With summer holidays just around the corner, there’s no better time to do a financial health check.

The biggest shock: they came back with a total savings figure of $11,352. When we attempted the same exercise in May, savings were  $7,388. That’s a lot of potential cash to be saved by being proactive.

How? 

The secret is in the timing. As the prices of your biggest ticket expenses have risen, so have your potential savings. Simply put, hard-pressed households can cut more from their bills now than they could six months ago. 

For example: We all know your energy bills and interest rates have spiked, but that also means many lenders have competitive rates on offer. Energy bills and health insurance are easy to cut too, once you know you’re not on the most competitive plan for your household.

It’s a highly competitive time across Home Loans, Health Insurance, Car Loans, Energy, credit cards and life insurance. If you can set aside a couple of hours this weekend to shop around, you’ll find some savings that can make a real difference.

HOME LOANS AVERAGE SAVINGS: $4680

Home Loans had the biggest average saving of $4,680, with Compare Club’s brokers knocking an average of 0.8% from people’s average interest rates. This is based on an average mortgage of $585,000 with a standard variable interest rate of 6.67% and then taking into account the compounding interest you’ll avoid by switching. This is above the average saving of just over $2,600 in May*.

Our mortgage brokers took a helicopter view of all the loans on offer across over 50 lenders, not just the big four. A good broker can secure special deals only available to lenders, so it’s worth a call to check if you can get a better deal on your home loan. 

CREDIT CARDS: SAVE $843 ANNUALLY

Credit card debt can spiral, but it’s also one of the easiest debts to get back under control. 

There’s a number of exceptionally good fee-free balance transfer cards available on the market that give you time to pay off your balance and avoid getting hit with interest. Also, check if your new card has an interest free period for new purchases, in case you plan on using it.

The average Aussie has a credit card balance of $2,296, with $1,046 of that currently getting hit with interest at a rate of 19.82%. 

Moving all this debt to a 32 month 0% balance transfer credit card could save $843 in debt-accruing interest over 12 months.

CAR LOANS - SAVE $3566.88 ANNUALLY

According to car finance brokerage Car Clarity, the average car loan interest rate now sits at 15.04% with the average amount refinanced jumping from just over $30,000 to just under $40,000. 

With an average new loan rate of 10.02%, this means the average amount saved on a refinanced car loan has jumped from $2,600 to $3,566.

Many of us took out our car loan at the dealership, but these loans aren’t good value for money and can add thousands onto your overall repayments. 

Dropping 5% on your interest rate makes a massive difference to your monthly repayments. If you didn’t shop around when you first took out the loan, it’s still not too late to save by moving your loan elsewhere.

HEALTH INSURANCE - FAMILIES CAN SAVE $421.46 ANNUALLY

By checking both the cost of your premium and the extras on offer, our experts found the following average savings:

• Families: $421.46.

• Couples: $213.32.

• Singles:e $227.46.

• Single Parent Families: $370.20.

It’s worth looking beyond the cost of the premium to consider the overall value of your cover. Our experts dig into the extras to help you get more cash back with one phone call. There’s no paperwork and Compare Club does it all for you.

ENERGY: SAVE $346 ON AVERAGE

Victorians have the biggest potential savings here with many retailers bringing in competitive discounts for new customers. 

In May, the best deal on Compare Club’s panel was $183 less than the reference price, but that saving now sits at $510. Regional NSW residents also have the potential to save up to $481 below the reference price.

There’s a good chance some of the current energy deals may be the best we’ll see from retailers for the next 6 months, so it’s worth switching before a scorching summer. 

Some providers will even let you lock in today’s price for the next 6-12 months to help you ride out the summer price hikes, so if you’re going to switch any bill, this is a smart one to start with - it’s quick, easy to switch, and offers big savings.

LIFE INSURANCE - SAVE $1643 ANNUALLY (non-smokers only)

Some of the biggest savings come for people who’ve given up smoking or vaping. A 50-year-old office worker in NSW with $1m worth of cover could see their premiums drop by $1,643 if they’ve stopped smoking. 

If you’ve made any significant lifestyle change, it’s worth reviewing your life cover. Many people set and forget life cover or think they can’t save that much, but our team is regularly finding Australians better cover. 

Even if you can’t save that much, you may be able to get a higher benefit payout from a different insurer for the same price, so it pays to review this expense.

That brings the total annual saving to $11, 352

The bottom line

As we all face the expense of the holiday season, many Australians are feeling the budget pinch. But the good news is that it’s genuinely easy to cut anywhere from a few hundred to several thousand from your bills by being proactive.

Even if you don't think there's much to be saved for your household budget personally, it's worth reviewing your big ticket household items. 

Just switching your health cover and energy could put an extra $600 back into your pocket - and who doesn’t need that right now?