Tuesday, March 10, 2009
Category:
Secured Loans
According to Nationwide Building Society, their latest savings research has revealed that 54 percent of people do not feel that it is currently a good time to save.
In fact, 23 percent have admitted to not saving anything at all. However, some would argue that this is actually an important time at which to save, so as to prepare for potential financial difficulties in the future.
Further findings also came out of Nationwide’s savings research, as follows:
- 46 percent of consumers make regular deposits into a savings account, while 31 percent save occasionally, and 23 percent do not save at all.
- 26 percent of consumers believe that they are saving an appropriate sum, whereas 60 percent recognise that they are not saving at all.
- 50 percent of consumers expect that they will be saving an adequate amount of money in six months time, with 30 percent believing that they will actually be saving less than is currently the case.
- 51 percent of consumers are under the impression that Government policy adversely affects their decision to save.
Savings director at Nationwide, Andy McQueen, commented: "We are concerned about the number of consumers who are not saving at the moment, as a proportion think that now is a bad time to save. We understand that as household finances are stretched, saving can be a challenge but it's never been more important to build up savings to act as a buffer in uncertain times.
"We think consumers may find it easier to save if they first considered the type of saver they think they are so they can create a savings plan that works for them and choose an account that's right for their needs. Interest rates are lower than we have seen in the last few years, but it's still just as important for people to regularly put money aside for a rainy day."
There are several types of saver, including:
- Those who put money aside on pay day.
- Those who save everything remaining in their bank account at the end of the month.
- Those who save the amount that their mortgage payments have reduced by as a result of interest rate cuts.
- Those who are tax-efficient by making deposits into an ISA.
- Those who save small amounts on a regular basis.
- Those who utilise online savings accounts.
- Those with standing orders direct into a savings account.
- Those who tie their money up in bonds.
- Those who save in notice accounts and plan withdrawals in advance so as to maximise interest payments.
- Those who invest in stocks and shares accounts, such as guaranteed equity bonds, for a sure-fire return linked to the performance of the stock market.
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Homeowners that are finding it hard to juggle monthly repayments, before they can think about savings, could consider consolidating their debts with a
secured loan. One of many options to consolidate debts, a secured loan would result in just one, potentially lower, monthly repayment and could be repaid over a term to suit the borrower from 5 to 25 years. It should be remembered however, that consolidating your debt may increase the amount you pay back overall and extend the repayment period of your debts.
