Thursday, August 6, 2009
Category:
Consolidation
According to research by moneysupermarket.com, most Brits who are looking to cut back on insurance to make savings would only cancel “unnecessary” policies.
In fact, it has been reported that just 4 percent would cancel their motor or home insurance policies, which are classed as “essential”. Alternatively, 31 percent of respondents revealed that they would cancel their mobile phone insurance during the course of the next 12 months to save money. For the same reason, 26 percent said that they would cancel their home appliances insurance over the next year.
6 percent of respondents would cancel their Mortgage Payment Protection Insurance. A further 5 percent would cancel their life insurance, 10 percent would cancel their private medical insurance and 12 percent would contemplate cancelling their annual travel insurance policy if it would result in savings.
In addition to cancelling insurance policies, moneysupermarket.com’s research also shows that 68 percent of penny-wise Brits are shopping around for better motor insurance deals prior to renewing. It was found that 35 percent would scour the market for the best deal and then switch to this, and 33 percent would scour the market for the best deal and then enquire as to whether or not their current provider could match this.
On the other side of the coin, 22 percent are said to be losing out by not searching the market at renewal time. It would appear that 13 percent are of the opinion that money can not be saved elsewhere, thus accepting the renewal quote from their current provider, and 9 percent can not be bothered to look elsewhere.
Insurance expert at moneysupermarekt.com, Steve Sweeney, commented: "In times like these there is no doubt every penny counts and it is encouraging to see Brits are making every effort to see where savings can be made. Shopping around when it comes to renewing your motor insurance policy is crucial; it is quick and easy to do and could save you hundreds of pounds."
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Homeowners who have reviewed their finances and who would like to reduce their monthly outgoings, for example, where they have relied on credit cards, could consider a secured loan for debt consolidation. Placing all debts into one, this could leave the borrower with a single monthly repayment as opposed to having to juggle several. In addition, their new monthly repayment could even be lower than total existing outgoings, thereby freeing up useful money each month. 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. A secured loan is one of many options to consolidate debt.
