Kicking the habit this No Smoking Day could not only add years to your life, it could save years off your mortgage.

With some cigarettes now costing more than £6 for 20, someone smoking 20 a day is spending at least £42 a week, which adds up to £2,184 a year.

If this extra cash is used as an overpayment of £182 a month on a mortgage, it could shave seven years and £26,708 on a 25-year fixed-rate £150,000 repayment mortgage at four per cent, research from Fairinvestment.co.uk shows.

And although interest rates have fallen to record lows, £2,184 in the Birmingham Midshires Cash ISA, paying three per cent annually, would equate to a return of £65.52 on £2,184.

Chartered financial planner at Fairinvestment.co.uk, Sharon Bratley, said: “As the recession eats into household budgets, stopping smoking could help smokers to beat the credit crunch.

“Those struggling with debt or mortgage repayments could easily use the money they save each week to make a dent in their debt, which could in turn loosen their belt when it comes to other areas.”

Quitting smoking will save money on your insurance premiums too – by applying for life cover as non-smokers, people could see monthly premiums cut by up to almost half, Norwich Union has claimed.

A 44-year-old man with a ten-year level term policy, with a £50,000 sum assured, could save £306.60 a year by giving up smoking, the insurer said.

Louise Colley, head of protection at Norwich Union, said: “People who smoke have an increased risk of hear disease, breathing disorders and certain cancers, to name but a few illnesses, which is why non-smokers often pay significantly less for life insurance and critical illness policies.

“So bearing in mind both the health and the monetary benefits, No Smoking Day could be the perfect day to stop.”

Norwich Union added smokers will have to steer clear from tobacco for 12 months before being classified as non-smokers.