Friday, April 20, 2007
Category:
Consolidation
Find.co.uk recently published their top tips for spring cleaning finances.
As the new tax year has arrived, homeowners could potentially save thousands of pounds by shopping around for a better deal on the financial products they are using, and further by taking advantage of any unused tax credits.
Find.co.uk recommends the areas that households should look at are pensions, mortgages, personal loans, credit cards, buildings and contents insurance, current accounts, term assurance and savings accounts.
According to Find.co.uk, you can into as many different pensions as desired. In addition to paying into company schemes, contributions to other forms of pensions such as stakeholders or Sipps can also be made provided that the total amount paid in does not exceed the limit.
Shopping around for mortgages is recommended as there is a range of deals available in the market place. According to Find.co.uk householders should look also look closely at loan lenders rates as potentially borrowing more could mean paying less. Savings can also be made by being savvy about which credit cards are used. For example, householders could consider a card with an introductory 0 per cent rate, or if they know they won’t be paying bills off in full each month, they could consider a card with a consistently low interest rate.
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Homeowners who have multiple debts in the form of credit cards and personal loans, could consider consolidating these with a debt consolidation loan. One of many options to restructure finances, a debt consolidation loan can be repaid over a term to suit the borrower, from 5 to 25 years. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges. With a
debt consolidation loan, as multiple repayments are wrapped into one, borrowers will no longer have to worry about what needs to be paid and when as they’ll know the date and amount that has to be repaid each month. Debt consolidation loans are only a sensible solution to paying off credit cards if card accounts are closed to prevent further spending and card holders incurring further debts. Debt consolidation loans are available from a variety of lenders.
