How to take the sting out of rising household bills - RTÉ Drivetime
Darragh Cassidy, Head of Communications at bonkers.ie, appeared on RTÉ's Drivetime with Sarah McInerney to explain how you can cut costs and save money in the face of rising inflation.
They looked at how switching mortgage provider, energy supplier and insurance providers can reduce your household bills in 2022.
You can listen back to the interview above or take a look at the main points below.
Inflation will continue to rise in 2022
The rate of inflation in Ireland hit a whopping 5.5% last December, meaning Ireland is currently experiencing its highest level of inflation in the last twenty years.
Unfortunately, it does not appear inflation rates will decline any time soon. Both the Central Bank and ESRI have predicted inflation rates to creep up through the coming months.
Before Christmas, the ESRI even forecast that inflation costs may hit a staggering 6% or 7%. These rates are having disastrous effects on Irish consumers' pockets.
What sectors are suffering the most from rising inflation prices?
It's important to note that not all sectors are experiencing these increasing inflation rates equally - 5.5% is just an average figure. The energy and housing sectors are the main drivers behind the inflation incline.
Inflation cost increases can be seen across:
- Private rent
There seems to be no escape from these rising household costs. Inflation has hit the private rent sector quite badly, with an inflation rate of 8% or 9%. This works against the Government's recent rent control legislation.
Previously, these inflation rates would be softened by a stagnant or falling grocery inflation rate. Although the current grocery inflation rate sits at 1.3%, this figure is expected to rise in the coming months, removing any relief it once offered Irish pockets.
How can you cut costs in 2022?
At bonkers.ie we always encourage Irish consumers to take advantage of the large savings that can be made by simply switching providers of your household bills each year.
We offer a range of free comparison tools that can help you switch and save money on your home insurance, broadband and banking products, to name a few.
Switching mortgage provider may seem more complicated and daunting because you must hire a solicitor and get surveying done. It's a worthwhile venture that every mortgage holder should do at least once in their lifetime, as the savings are absolutely huge.
Let’s take for example someone who has €250,000 left on their mortgage, spread over 20 years and is paying a rate of 4%. If they switched to a rate of 2.2%, they would save between €220-€230 each month, all of which is tax-free cash!
2.2% isn’t even the cheapest deal available on the market at the moment, so you could make even more savings if you shop around.
As well as this, some mortgage providers even offer a cashback incentive, which will help you save even more.
The energy crisis of 2021, burned a hole in the pocket of households across the country.
Here at bonkers.ie, we are constantly being asked if there is any point in switching gas and electricity providers if all the suppliers are raising prices. The answer is yes, of course!
People need to remember that energy suppliers are competing against each other for new customers. This competitiveness has resulted in them offering excellent discounts to attract and entice potential new customers.
What savings can you make on energy?
On average, gas and electricity suppliers are offering a 20-40% discounted rate for the first year to new customers. This means people can save an average of €600 on their energy bills.
However, if you are with a smaller and more expensive supplier, you may be able to save over €1,000 if you switch to a different provider.
Luckily, switching energy suppliers has never been easier, with our free comparison tool you can compare and switch energy suppliers in a matter of minutes.
Oftentimes people tend not to switch health insurance providers because they fear they won’t be covered properly or they may receive credits or a loyalty bonus from their current provider if and when they go to claim, this is not the case.
With insurance, we say it's not always about the price. Whether it is car insurance, home insurance or health insurance, the cheapest deal may not be the best deal for you.
You want to make sure you are covered correctly, and with the market and treatments constantly changing it is important that you look into getting an updated plan.
Currently, there are 300 different health insurance plans available in the country. It is worth your time and money to get good advice on the different plans out there. We suggest hiring someone with this knowledge who can investigate and recommend a plan that is tailored to your needs.
For €125, our health insurance experts at bonkers.ie, will provide you with a list of plans that are best catered to your needs, so you won’t have to!
Don’t forget to consider the various corporate plans available throughout the country. Contrary to popular belief, they are open to anybody. So if you like the look of Google’s health insurance plan, but do not work for the company, you can still apply for this health insurance policy.
Switch and Save
There is no time like the present, when it comes to saving money. Whether you want to cut costs on your energy and broadband, or insurance and banking expenses, we’ve got you covered.
Check out our free and easy-to-use comparison tools and see how much you could save today!
Get in touch
Has the rise in inflation had an impact on your bank balance? Let us know today, message us on Facebook, Twitter and Instagram.