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Archive for March, 2007

Saving

Thursday, March 29th, 2007

There are many people who would like to put aside money each month into a savings account, however many people say that they never have enough money left over to do so.  However, if you look at your spending habits and prepare a budget you will find that you do in fact have enough money to set aside into a savings account each month.

The first step to saving is by watching your spending habits and keeping an eye on where your money goes.  You should start by keeping a log on your spending by writing down everything you spend your money on for two weeks or more.  When you do this, you will be able to look back on all the items that you purchased and be able to see what purchases were necessary and what purchases you could easily avoid spending money on.  If you discover that you are spending more money that what you are earning, then you will need to start cutting down on unnecessary expenses.

Once you see where you can cut expenses, you can then start on a budget that suits your lifestyle and your needs.  Prioritise your spending and ask yourself if you really need it whenever you reach to buy something.  With the money you save by cutting down on unnecessary expenses, you will then be able to open a savings account and start putting aside the amount each month.

Once you have established a savings you can then use the money as an emergency fund, or you can use some of it for a down payment on a new home or car, or you could use a bit of the savings for a well-deserved holiday.  It all depends on what you are saving for.

If you are in debt, whilst it is not undesirable to save money, you would be far better putting your spare money towards paying off any credit card balances or clearing personal loan debts.  The interest earned on savings is never as high as that charged against outstanding credit.

Posted in Banking, Borrowing, Consumer Credit, Consumer debt, Credit Card, Debt management, interest rates, Personal debt, Personal loans, Savings, UK Finance | No Comments »

UK Consumers Working to Eliminate Their Debts

Wednesday, March 28th, 2007

One in seven adults have turned to debt consolidation in the last three years to eliminate their debt. At least 360,000 people, 6 per cent, borrowed a loan of £50,000.

Millions of UK consumers have taken out unsecured loans or remortgaged their homes in an attempt to consolidate their debts. The average debt consolidation loan in Scotland is £14,439, the highest in the UK.

MoneyExpert.com, surveyed 2,500 adults.  More than 36 per cent of those consolidating debts used an unsecured personal loan.  Just over 15 per cent transfered their debt to a zero-rate credit card. At least 18 per cent remortgaged their home.

Edward Dickson, a financial adviser, said: “If you must consolidate your debt, the most sensible option is to go through your existing mortgage as opposed to through independent companies, simply because you will get a much better rate.”

Sean Gardner, the chief executive of MoneyExpert.com, said: “The UK’s debt crisis is a serious concern and borrowers are starting to feel the strain. Debt consolidation is entirely sensible and a good way to get your finances under control if you owe money to different lenders at varying rates of interest.

“However, it only works if you accept consolidation is a wake-up call to get your borrowing under control and then work to become debt free. There has to be concern that many people simply see consolidation as a way to keep on borrowing.”

Some analysts are worried that consumers are being turned away from affordable secured loans for debt consolidation loans. Banks profit more from a remortgage or a personal loan than they do from a low interest unsecured loan.

Posted in Balance transfer, Borrowing, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Debt management, Financial news, Financial products, Homeowner Loans, interest rates, Personal debt, Personal loans, Property, Remortgaging, Secured loans, Spending, UK Finance, Unsecured loans, Zero percent cards | No Comments »

Credit Card Application

Wednesday, March 28th, 2007

When you apply for a credit card there are two main sources of information that credit card lenders base their decision on whether to will lend to you or not.  Lenders base their decision on your personal details and information as well as your credit history.  If you have a good credit history credit lenders will be more willing to lend to you.

When you are filling out a credit card application form, you should never use false information on your application.  Don’t be tempted to lie on your application for credit cards as they will show up on your credit report and lenders will quickly discover your lie.  If you exaggerate your income level or give inaccurate information this will turn credit lenders off lending to you.

When applying for credit be aware that the process of your application may take longer than you expect, so be patient while waiting for a response on your application.  This is especially important to take into consideration if you plan on transferring a balance from one card to another where an introductory period of interest-free credit card is about to expire.  Typically the process of the application will take around ten to fourteen days to process before you receive your credit card.  Then you will need additional time to activate your card.  If you need a credit card right away then you may want to consider using an instant reply application for your credit card, as you will receive a reply a lot quicker than you would with the standard credit card.

Posted in Borrowing, Consumer Credit, Credit Card, Credit record, Financial products, interest rates, Spending, UK Finance, Unsecured loans, Zero percent cards | No Comments »

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