10 ways to maximise your income and pay off your debts quicker

It sounds perfectly obvious, doesn’t it? The more money you earn, the more spare income you’ll have available to pay off your debts.

But in these difficult economic times, many people are finding that their income is decreasing, or their job may even be under threat. It’s not exactly the right time to ask the boss for a payrise…

So how can you still make the most of your income opportunities?

Here are just a few simple things to consider, which might help you maximise your income without changing jobs or making any other life-changing alterations to your daily routine:

  1. If you have adult children or any other family members living with you, are they paying their way? They may be living with you because they can’t afford a place of their own, but if they’re working (or even receiving benefits) they should be prepared to make a fair contribution to your mortgage, rent and household bills.
  2. If you have a spare room, think about renting it out to a lodger to provide you with some extra income. Under the HMRC-approved “Rent A Room” scheme, you’re allowed to earn up to £4,250 per year tax-free by renting out furnished rooms in your own home.
  3. Check with your local tax office that your tax code is correct. This is especially important if you’re changed jobs or moved from unemployment to employment in the past year or two. If your tax code is wrong, you may be paying more tax than you need to.
  4. See if you can save money on your utility bills! Obviously, switch off the lights when you’re not in the room, don’t leave appliances on standby, and hang things out to dry instead of using the dryer. But the biggest savings could be made by switching suppliers – use one of the comparison websites like comparethemarket.com or uswitch.com, and see if you can get better deals on your gas, electricity, broadband, phone and TV.
  5. Have a clear-out and sell some stuff! Try online auction sites like ebay.co.uk, advertise things in your local newspaper or shop window, or just get up early and brave the local weekend car boot sale. Why not de-clutter and make a few pounds in the process?
  6. Are you claiming all the relevant tax credits that you’re entitled to? Tax credits are payments from the government. If you’re responsible for at least one child or young person, you may qualify for Child Tax Credit. If you work, but are on a low income, you may qualify for Working Tax Credit. You can often get both types of tax credits. They aren’t taxable. To find out more, visit: http://www.hmrc.gov.uk/taxcredits/index.htm.
  7. Take your own lunch to work. If you add up the amount you spend on sandwiches, coffees and snacks in a week you may get quite a shock. Just by making your own sandwiches, and drinking tap water instead of expensive bottled waters, you could literally save a small fortune!
  8. Claim back mis-sold Payment Protection Insurance (PPI). Check if you’ve ever had PPI included with any of your credit cards or loans. If so, and the insurance was mis-sold, you could claim the full amount back from the bank or building society that sold you the policy.
  9. Check your council tax band. Nearly half a million homes are thought to be in the wrong band, with residents paying too much council tax as a result. Compare bandings with your neighbours, and check what your house was worth in 1991 (that’s when the current bandings were set). If you think you’re in the wrong tax band, contact your local council.
  10. Check that you’re claiming all the Social Security benefits you’re entitled to. Here are the key benefits that may be available to you, depending on your own particular circumstances:

If you work full-time or part-time:

  • Working Tax Credit
  • Child Tax Credit
  • Child Benefit
  • Housing Benefit
  • Council Tax benefit
  • Maternity benefits
  • Disability Living Allowance (DLA)

If you’re unemployed:

  • Child Tax Credit
  • Job Seeker’s Allowance (JSA)
  • Council Tax Benefit
  • Housing Benefit
  • Health Benefits

If you’re sick or disabled:

  • Incapacity Benefit
  • Income Support
  • Disability Living Allowance (DLA)
  • Housing Benefit
  • Council Tax Benefit

£millions worth of state benefits are unclaimed every year – don’t miss out on what is rightfully yours!

That’s our Top 10 tips for maximising your income without making any major changes to your lifestyle. Got any other good tips that you’d like to share? Post a comment below and let us know!

This entry was posted on Thursday, June 14th, 2012 at 3:10 pm and is filed under News . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply