Finances – time for change?
These days you can't turn on the tv or open a newspaper without being bombarded with news of the credit crunch and financial crisis we find ourselves in. Not exactly joyous stuff but it is the perfect time to re-assess spending and finances.
Many of us stick to the same banks and accounts due to loyalty but are we really getting the most out of our finances? With the recent banking crisis it is understandable that people don’t know which banks to trust and whether or not.. their money will be safe. However if you shop around and invest wisely you can make the most of your money at a time when it's most important to take care of you assets.
There are a number of great bank accounts on offer from savings to current accounts which offer good rates of interest, despite the current financial climate. For example, Alliance and Leicester, recently taken over by one of the largest banks in the world, Santander, offers 8.5% AER on balances up to £2,500 on their premier current accounts.
Look for the best rate and benefits to suit you. Most banks now offer internet banking which makes it easy to keep track of your balances and allows you to pay bills and switch money between accounts easily and out of office hours which can help avoid going over your balance and in turn, avoid any unnecessary bank charges. If you are thinking of switching, many banks are able to switch all your existing direct debits and standing orders meaning less work and stress for you.
Though it may not be the ideal time to take out a personal loan, sometimes it is a necessity. A few years ago it was easy to get a loan for almost anything but nowadays banks are being more selective in who they give loans to. Many people fall into the trap of taking more money than they actually need. This may seem tempting at the time but just means more debt and more money you have to pay back so try and stick to borrowing the required amount. Be extremely cautious if you are considering a secured loan as if you default on any payments, your home will be at risk. Make sure you can afford to repay your loan before agreeing to go ahead with anything. Many providers offer insurance on loans to cover your repayments if you are off work due to accident or sickness but read the small print to see exactly what you are covered for as many people find they are not eligible to claim for this due to a number of circumstances. Make sure any personal loans you consider are from a reputable firm such as Alliance & Leicester.
If you are wise and do your homework you can make the most of your finances, even in these difficult times. There is lots of advice available online so make sure you know exactly what you are getting into before making any big decisions.
