PERSONAL FINANCE TIPS
1. ‘Neither a borrow nor a lender be’
Or if you must borrow try get a cost effective deal.
Start by asking your bank for an overdraft facility before you need
it. Overdrafts only cost whilst you are using them but personal loans have interest charges all the time.
2. Make Sure your Bank Account pays a good interest.
Don’t lend money for free to your bank.
Current account balances often pay low or zero rates of interest.
Get a savings account transfer arrangement in place.
Even better if you have a mortgage get any cash balances included in an off setting arrangement so you pay less mortgage interest and get to repay the debt sooner
3. Pay your credit card bill in full each month by the due date.
The cost of not paying off the full bill is usually very high.
Chose a card with a refund or points – card companies charge retailers up to 5% to process your bill & customers are paying that indirectly.
4. Keep One Credit Card just for Internet Shopping
Keep one card exclusively for internet shopping to keep a track
Check you credit card statement every month
If your credit card has an interest free period they expect to make money out of you in the future so don’t be lulled into sloppy ways.
5. Cheap offers
These run out or have strings –‘ there are no free lunches’.
Buying in bulk or out of season can create savings
Internet purchases are not always cheaper
6.Warranty’s on Electrical good usually too expensive
Be cynical about offers such as warranty insurance on new electrical goods.
Is the premium worth spending on the off chance you may need a
replacement or repair.
If goods are faulty you have rights to claim anyway under the Sale of Goods Act.
Think what else you could be doing with the money.
100% of your money back in a few years are deals that rely on you not claiming or messing up the conditions to claim which are so onerous.
7. Look into Remortgaging.
If you have a mortgage at the standard variable rate look at the possibility of Remortgaging, you could save yourself a lot of money in the long term.