How To Get the Better of Multinational Companies

1.  Don’t stay on existing accounts out of loyalty.

If you stay with your existing mortgage company for the duration of the mortgage term, they will thank you very nicely for paying much more than necessary. It may be a bit of hassle to remortgage; but, if you could save £100 a month, then you would be a fool not to. The same principle applies to a savings account. Every now and then review your options to get the best interest and savings deal.

2. Price Comparison Sites

For electric and Gas providers you can check out various price comparison sites to make sure you get the most competitive deal. If a salesman later comes round to try and sell you a new energy provider, there is no need to listen to his salespitch, because you know you will have the most competitive price.

3. Take advantage of 0% finance Credit Cards

For the past 4 years I have been transferring £4,000 from one credit card to another. This debt has always been held at a credit card which offers an introductory rate of 0%. True, they do charge a 2% balance transfer fee. But, if you get a card which offers a 12 month introductory rate, you could make a profit just by saving the balance in a high interest account. When the 12 months is up, I switch it to another card. I usually don’t spend anything at all on the credit card. However, a word of caution: don’t be greedy and try to get too many cards. This can adversely impact on your credit rating.

4. Always pay off your Credit Card on Time.

Nearly everything I buy, I put on one credit card, which offers cashback for spending. This gives me an extra 6 weeks before I actually have to pay for the good. I then always make a point of clearing all credit card debt. If you start paying 17% interest on your spending, you will see why credit card companies can make so much profit. Remember credit card companies make their profit through charging extortionate rates on consumers who don’t pay off their balance in full. However, if you are careful you can gain all the benefit –

  • 6 weeks interest free,
  • Money Back for dodgy goods
  • Cashback/points for using the credit card.

5. Buy Loss Leaders, but don’t buy anything else.

Most big multinationals offer loss leaders to entice consumers into their shops. However, once you buy the loss leader (at a very competitive price) most consumers usually end up spending another £50 and negate the saving they have made. Instead, try to look out for the best deals in a variety of shops.

6. Browse in Shops, Buy online.

Some local shops deserve our custom. But, if your buying a big electronic good, check out what it’s like in store, but, be patient and by online. It can often save over 15%.

7. Buy Accessories Elsewhere

When I bought my MacBook in the New York Mac Store I was shocked how expensive it was to buy an extension cable to link to an independent screen. Searching on Amazon I found the necessary cable at half the price.

8. Don’t Buy Extended Warranties.

Quite often more than 50% of a companies profit comes from selling not the good, but the extended warranty. If you buy a TV for £400, is it really effective insurance to pay £100 for an extra two years protection. In the unlikely event your TV broke in 3 years, you might want to buy a new one anyway.