Now get back in the black

December is by far the most expensive month of the year for most families. By the time you've done all your Christmas shopping, stocked the fridge full of food and drink and attended an array of festive parties, it's likely that your bank balance will be showing signs of stress.

So if you're looking for a way of restoring the (bank) balance this weekend, there's a raft of ways you can save money without even getting out of your armchair. Arm yourself with a computer and a phone, and get started on cutting down your monthly bills.

Mobile phone

Mobile phone bills are accounting for an increasing amount of people's expenditure every year. And while competition has been driving costs down over the past few years, it doesn't take much to accidentally step outside what's included in your bundle and to find yourself nursing a monthly bill of upwards of £100.

The first step towards saving money on your mobile phone bill is to make sure you're on a contract that suits your needs. If you're using more minutes or texts each month than your current contract offers for free, then you can probably save money by upgrading. Although this might mean you're paying a higher monthly charge, this is likely to work out much cheaper than paying the high call or text charges which you're hit with once you've used up your free allocation.

Anthony Ball of Onecompare.com, the phone comparison site, says it's also worth making a note of when your current contract comes to an end. "There's a huge amount of people out there who don't realise that they're not longer tied in," he says. "They should really start shopping around for a better deal."

Mr Ball adds that if you're out of contract, you should be able to negotiate a much better deal than you're on. Some providers will offer you free iPods, games consoles or cash to switch to them, so it's worth shopping around for the best deal, and then putting that to your existing provider, to see what they'll come up with.

Remember that if you are tied into a contract, this doesn't necessarily mean you can't change your tariff with your existing provider. If you're concerned your bills are too high, give them a call.

If you don't make many calls at all, and just keep a phone so that others can contact you, it may be worth opting for a pay-as-you-go phone, where you simply buy top-up cards to pay for outgoing calls.

One other tip for cutting your phone bill is to be careful how you use it if you travel overseas. Many mobile operators charge exorbitant prices for overseas calls, so check before you leave, and explore getting a new SIM, from companies such as www.0044.co.uk, to keep the cost of calling home to a minimum.

Car insurance

The golden rule when it come to saving money on your insurance, be it car, home or any other kind of cover, is to make sure you shop around when your existing policy comes to an end. Most insurers will rope you in with attractive prices in the first year, only to start ratcheting up your premiums thereafter.

If you're looking to reduce the cost of your car insurance, Ashton Berkhauer of Uswitch.com, the price comparison site, says that you should start at the top and consider whether you really need the car that you have, or whether you could get by with one with a smaller engine. "The bigger the engine, the more damage you can do," says Mr Berkhauer. "Hence the bigger your premiums will be. This is particularly true for younger drivers."

Another way of saving money on your car insurance is to consider downgrading to a more basic policy. Products such as Norwich Union's Simplecover provide very basic cover, leaving out extras such as a courtesy car when yours is damaged. If you don't need all the bells and whistles that your policy offers, these are worth considering.

Reducing the number of miles you do can also reduce your premium, while adding a spouse to your policy can also help in some cases.

Finally, Mr Berkhauer suggests that whether shopping for your home or car insurance, you should resist the temptation to pay in monthly instalments. Some insurers will charge interest rates as high as 30 per cent. If you really want to pay monthly, Berkhauer suggests you take out an interest-free credit card, and pay down the balance each month.

Home insurance

Ensuring that your home is well secured is one easy way of reducing the cost of your home insurance. Uswitch's Mr Berkhauer says it's important to have a five-bar mortice lock on your front door, as well as key-operated locks on every ground floor window. Installing a burglar alarm can also reduce your premiums, but most insurers will insist that it is Nacoss approved and maintained.

Another way to reduce the cost of your home insurance is to ensure you are not over-insured. Although your flat may now be worth £500,000, following the recent boom in the housing market, that doesn't mean you necessarily need £500,000 of insurance. Your buildings cover needs to provide enough to rebuild the property. So make sure you're not over-insured.

Equally important, however, is to make sure you're not under-insured on your contents. Take a detailed inventory of everything in the house, and make sure you're adequately covered. If you're not, you could end up nursing a bigger bill than you'd expected after a fire or burglary.

Finally, increasing your excess on either your home or motor insurance will help to reduce the premium. But make sure the saving is worth it.

Water

Most houses in Britain are still given water bills based on the average usage for a property their size. This means that you can leave the taps on all day and still get the same bill as you would if you'd not used a drop. However, if you think that you use less water than average, try asking your supplier whether they can fit you with a water meter, so that you only pay for what you use.

If you already have a meter, tricks such as putting a brick in your toilet cistern can help to save water. Keeping a butt in the garden to collect rainwater, which you can use to water your plants, is another way of cutting down. Other tips include taking showers instead of baths, not leaving the tap on when you brush your teeth, and buying an energy-efficient washing machine or dishwasher.

Broadband and home telephone

Buying your home telephone and broadband from the same supplier is starting to become much cheaper. However, many of the bundled packages leave you with a slow broadband speed, so it's important to be clear of your needs before you sign up to any deal. For example, buying phone and broadband from Talk Talk will set you back just £17 a month, including line rental. However, while the package is advertised as giving speeds of "up to 8Mb", many users have reported getting much slower speeds.

Bundling your digital, cable or satellite TV package along with your phone and broadband can offer even greater savings. Virgin Media and Sky offer all three for £30 a month. You can also bundle your mobile phone into the package with Virgin, for an extra £10 a month. Sites such as www.broadbandchoices.co.uk and www.uswitch.com can help you to search.

Energy

The average household energy bill now stands at a staggering £912 a year, according to the price comparison site uSwitch.com. With fuel prices on the rise, don't expect any respite next year. Nevertheless, you may be able to beat the price hike by shopping around for a better deal.

Start by looking for duel fuel deals, where you get your gas and electricity from one supplier. You can compare deals on sites such as Uswitch.com and Moneysupermarket.com, and you can sign up online. Make sure you pay by direct debit, as this can also cut your bills. Meanwhile, improve your energy efficiency by turning off lights and dropping your central heating temperature by just one degree it could save you 10 per cent of your bill.

"Switching is a painless process," adds Ann Robinson, director of consumer policy at uSwitch. "There is no danger of your gas or electricity being cut off, and it doesn't involve pipes being dug up. The best chance that consumers now have of seeing lower energy bills is by taking action themselves. There are still big savings to be had by the 9.3 million households that have never switched."

Mortgages

The mortgage market is going to be challenging to say the least in 2008, and as the housing market continues to cool, lenders will be fighting for remortgage customers. But lenders are also tightening up on risk, and borrowers with more difficult situations will be harder pushed to find an attractive deal. The high fees of 2007 are expected to continue next year as they become more important to lenders' profitability.

As a basic precaution, watch out that you have not lapsed into your lender's high standard variable rate, and start shopping around several months in advance of the end of your term to make sure this doesn't happen. If you are a new borrower or looking for a remortgage deal, a variable or tracker rate offer is likely to be more cash-savvy than a fixed deal because at least one more quarter-point reduction is forecast in rates, if not two. Make sure you aren't distracted by cheap rates of interest, though. Work out the total cost the rate plus the fees when comparing deals.

Melanie Bien, director at the independent mortgage broker Savills Private Finance, recommends the Co-Op, which has a two-year tracker at 5.49 per cent (0.01 per cent under the current base rate) with a £999 fee, available up to 95 per cent loan to value. There is free valuation and legal fees. But if you prefer the certainty of a fixed rate, consider Nationwide's five-year fix at 5.63 per cent with a £499 fee also with free valuation and legal fees.

Current accounts

Although the impending bank charges test case means that banks are holding back from refunding any unfair charges, it's still worth looking back over your previous bank statements to identify any onerous fees that you've been made to pay. Once the case is out the way, sometime next year, you should beable to claim back anyunfair fees.

Meanwhile, make sure you're not wasting money by losing out on interest on your current account. Most of the big banks pay just 0.01 per cent interest on their current accounts, but you can get more than 7 per cent if you shop around. Look out for incentives, too. Some banks will pay you £50 or £100 cash for switching your account to them.

Esther James, a personal finance specialist for the comparison site Moneyfacts.co.uk, says: "If you are looking for the healthiest return in year one, Abbey's current account offers the best deal by far at 7.72 per cent. But if you plan to maintain this relationship, the Halifax high interest account, offering 6 per cent for three years, wins hands down. If your current account balance is greater than £2,500, the First Account from Coventry offers a great solution, paying 6.17 per cent on balances up to £250,000."

Also if you have a premium or packaged account, where you pay a monthly fee, check whether the benefits you're getting are worth the cost. In many cases, they're not.

Credit cards

If you're nursing a Christmas hangover on your credit cards, make sure you're paying as little interest as possible in the New Year. There are still a number of 0 per cent balance transfer deals, and while most will charge a fee, there are still a handful that don't. Britannia Building Society is offering a 0 per cent balance transfer offer, with no fee. However, it is only valid for five months.

If you're looking for a longer interest-free period, Virgin Money offers a 0 per cent balance transfer for 15 months. However, it charges a fee of 2.89 per cent on the transfer. As always, watch out for the rate you'll be paying at the end of these introductory rates.

For the lowest interest rate on the life of a card, Barclaycard is offering the best deal, at 6.8 per cent for new purchases and balance transfers (subject to a 2.5 per cent fee).

With credit conditions hardening, you'll need to have a good credit record to pick up the best deals. "The best new deals are likely to be reserved for those with an angelic credit score," says Steve Willey of Moneysupermarket. "Those with even a slight blemish could see their credit limit reduced without warning as lenders review their existing portfolios and attempt to protect themselves from any potential bad debts."

Request and check your credit report, and take measures, such as ensuring you are enrolled on your electoral register, and setting up direct debits to meet monthly payments, to protect your score.

Savings

When it comes to savings, the consumer is in the driving seat as the financial institutions fight for your money in the midst of the credit crunch. And the number of people moving around for the best rate is increasing. If you haven't reviewed your savings account recently, the chances are you're not getting the best rate and are missing out on valuable interest each month.

The best Mini Cash ISA rates, like the one offered by Saffron Building Society, come in at around 6.30 per cent. Meanwhile regular saver rates are also healthy, with Skipton Building Society offering savers 7.55 per cent.

Otherwise the best savings rates are found online or by post. Heritable Bank's Easy Access Account offers savers 6.46 per cent for investments over £1,000. Newcastle Building Society's NewcastleNet offers online savers a rate of 6.43 per cent for amounts over £250, and IceSave's Easy Access Savings account comes in at 6.30 per cent.