Wednesday, December 2, 2009
Category:
Personal Finance Tips
As Christmas approaches, some people will be heading over to the continent to get into the festive spirit. Therefore, Caxton FX has advised this group to make the most of their travel money and to make currency plans in advance.
Firstly, travellers are advised not to be taken in by the majority of high street and online currency dealers that are advertising ‘commission free’ offers. As rates are based on significant margins, consumers could be faced with uncompetitive rates. According to Caxton FX, travellers may not be in a better position by using their cards either, as a large proportion of these are associated with an average foreign exchange mark-up of 2.75 percent and overseas ATM withdrawal fees. In fact, such fees cost between £1.00 and £1.75 per transaction, which could amount to a large sum during the course of a trip abroad.
Caxton FX recommends that travellers take a pre-paid currency card away with them, and that they look out for good deals. In addition, if given the choice between paying in local currency or paying in sterling, travellers are advised to opt for the former to avoid a new process called Dynamic Currency Conversion. During this process, the retailer or ATM gives consumers the opportunity to pay in sterling and then bases calculations on a poor exchange rate. Caxton FX’s research into last year’s ski season revealed that approximately £30,000 was shelled out as a result of Dynamic Currency Conversion at just five of the most popular European ski resorts.
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Homeowners who have been making currency plans, and are now in the mood to tackle their personal finances to boot, could investigate the possibility of taking out a secured loan. One of many finance options available, a secured loan could be used to
consolidate any existing debts such as credit and store cards. By taking this approach, borrowers could be left with just one monthly repayment as opposed to juggling several. Moreover, this single monthly repayment could even be lower than current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
