There will be more than 150,000 personal insolvencies this year, according to KPMG. That’s quite a scary prospect. Despite the prospect of spiraling debt problems, many of us struggle to cut down on expensive luxuries but the Moneymagpies are going to show you how some simple steps and a few painless, money-saving swaps can make all the difference.

Check our table below and see how you could save £4,414.36. Just click on the links to find out more about each money-saving swap…

Ditch the car and join a car club

Why should I switch?

The total cost of running a car can be pretty scary – add up the cost of tax, insurance, MOT checks, fuel, servicing, repairs, depreciation and parking and you’re talking about an enormous figure. If you don’t need your car every day to commute to work, joining a car club will save you thousands of pounds.

A car club gives you access to what are essentially pay-as-you-go cars. As a member of a car club any vehicle is covered with breakdown cover and insurance (although you will have to pay an excess). Fuel is also included in the hourly charge so all you have to pay is a membership fee of around £50 and then either an hourly, daily or monthly fee to use the cars. Hourly rates range from £3.95 to £5.99 and daily rates from £29 to £50.

How much can I save?

According to transport charity Carclubs, if you drive less than 6,000 miles per year, a car club could save you up to £3,500 a year.

How can I do it?

Sign up with a car club such as Streetcar, Zipcar, City Car Club or WhizzGo and rent one of their cars by either the hour or day. Once you’ve signed up and paid the annual fee you will be sent a special smartcard and PIN number which you can then use to access the cars and make your bookings.

Find out more in our guide, alternatives to owning a car.

Switch your energy supplier

Why should I switch?

All of the big six providers cut their prices this year so there’s a good chance you’re not on the best tariff. Don’t lose out because you can’t be bothered to switch – we can’t stress enough how easy and quick it is. And best of all, it’s completely free so there’s absolutely nothing to lose and plenty of savings to gain.

How much can I save?

You could save as much as £468 just with a few clicks of the mouse.

How can I do it?

Energyhelpline’s comparison service is completely free and unbiased. They show you the best rates around from suppliers in your area and you can choose the tarriff that suits your needs.

Once you’ve checked all the search results and chosen a supplier you’d like to switch to, you’ll asked to enter the rest of your details (address, tenancy status) which will then be forwarded on to your new supplier, who arranges the switch.

You will receive an email from Energyhelpline confirming the details of the switch, as well as contact details for your new supplier. You’ll still have a seven working day ‘cooling-off period’ to cancel the arrangement. If not,  you’ll receive a welcome pack within a week – and after four weeks the new supplier will let you know when the switch will take place.

On this day you need to take a meter reading and give that to the new supplier. They will then contact your old supplier so that they can arrange your last bill and close your account. You don’t need to change meters/wires because the new supplier uses the same ones. Remember, it’s only after you’ve paid the final bill that you can cancel your direct debit with your old supplier.

Find out more in our energy switching guide.

Switch your premium digital TV package

Why should I switch?

Ofcom revealed in its Digital Progress Report that the number of digital recording devices or Personal Video Recorders (PVRs) has increased by nearly one million in the first three months of 2009. A bulk of these customers would have gone for the Sky+ service, which has a whopping 5 million customers. These devices may be impressive but are they really necessary? Even the basic subscription from Sky costs £18 per month –and that’s before adding any entertainment packs, sports or movies – totaling £198 per year.

A Freeview box on the other hand will only cost you the price of the box itself and that’s it – no monthly subscription to worry about and you still get up to 48 channels to enjoy. Boxes start from as little as £20 so even the initial cost is pretty small.

How much can I save?

Getting the cheapest Freeview box will cost around £20 which would save you £178 per year when compared to the basic £18 Sky package.

How can I do it?

A Freeview digital box will connect to any TV in your home so there’s no need to buy a new TV set (although most new TVs will have Freeview built in). You can purchase a Freeview from a host of retailers including Tesco, Amazon, Argos and Currys.

Switch to a SIM-only mobile tariff

Why should I switch?

We think the best thing about SIM-only deals is the length of contract – most have a contract of just one month so you won’t be tied down and can change quickly when a better deal comes along. These days networks are only offering the best deals on standard contracts of 18 months, or even 24 months in some cases.

How much can I save?

Virgin offers the most minutes for £10 – 200 minutes unlimited texts, but it’s also extremely competitive for a £15 tariff offering 500 minutes and unlimited texts (many of the other networks offer only 300 minutes for the same price).

We are assuming that the average tariff is £25 for people on a monthly contract, often with around 300 mins and a similar number of texts or unlimited. This works out as £300 per year.

Compare this to the Virgin £15 tariff, offering 500 mins and unlimited texts, and you really are quids in – it will cost you £180 per year, saving you £120!

How can I do it?

With Virgin, a fair use policy of 3000 texts per month applies on all tariffs with unlimited texts. A fair usage policy also applies to tariffs with unlimited data – you can use 25MB per day (1GB per month which lets you view about 150 pages & 100 emails).

Find out more in our guide to SIM-only mobile contracts.

Switch your current account

Why should I switch?

First Direct pays new customers £100 to switch to its current account. First Direct are so confident the account will work for you that they’ll give you another £100 if you’re not happy and want to switch to another account after six months. The account offers 0% AER on current account balances and an interest free overdraft of £250. The minimum monthly deposit is £1,500 – if you don’t put in at least this much each month you’ll be charged £10 a month to hold the account.

How much can I save?

You’re not strictly saving money, instead you’ll be making money – and an impressive £100 at that!

How can I do it?

You’ll need to switch to the First Direct 1st Account using the First Direct easyswitch service – when you apply to open an account they arrange for your current banking to be transferred over and obtain details of your standing orders and direct debits from your previous bankers and arrange to transfer them for you.

You’ll get the £100 within three months of opening account as long as you transfer £1,500 per month within that time.

Get more information on choosing the right current account for you here.

Get the best value broadband

Why should I switch?

The difference in price between the various broadband options around can be vast, so switching to the cheapest broadband package will save you a bundle.

Basic line rental for BT is £9.49 a month, and that’s if you pay by direct debt and do online billing. On top of this if you take even the cheapest option – Basic broadband from BT – costs £6.99 per month for three months, then £13.99 per month thereafter on the same contract length (plus, of course, the £9.49 line rental).

The PlusNet standalone package costs just £6.45 per month –but you’ll need a phone line at £11.25 a month.

The package includes a free wireless router, free set-up, built in firewall, spam protection and a monthly usage allowance of 10GB. The broadband service has speeds of up to 8MB a second. The price per month stays at £6.49 per month as long as you are in an ‘optimum broadband area’ which 80% off us in the UK are – you can find out which market area you live in here.

How much can I save?

Over the year, PlusNet would cost £212.40, BT’s basic broadband option however, would cost a total of £260.76 – an extra £48.36!

How can I do it?

See if you could save money by switching with our free Broadband Choices comparison service or check out the PlusNet package.

If you do decide to switch, all you’ll need to do is call your current supplier for a MAC key/code. For more tips and advice on broadband see our comprehensive broadband guide.

Useful Links

• PlusNet
• Amazon
• Energyhelpline
• First Direct 1st Account
• Virgin