Finance Choices
Top 10 tips for a prosperous 2006
While millions of Britons are attempting to lose the Christmas weight, and getting into shape is set to be the number-one new year's resolution, we are trying to help you save pounds not lose them.
Our top ten tips
1.Pay off and cut up store cards - these can charge interest of almost 30 per cent on purchases, more than double a standard card and four times as expensive as the cheapest flat-rate cards available.
2.Avoid paying fees for using credit and debit cards while you are abroad - UK consumers paid £500 million pounds in 2005 in foreign currency fees. Some providers do not charge them.
3.Check how the payments you make to reduce your credit card bill are used - Most credit cards apply your payments to your most expensive debt last, not first. This means you end up paying more. Nationwide, HSBC and First Direct do not do this.
4.Avoid using charging cash machines - Consumers will pay £250 million, in 2006, to withdraw their own cash from the 24,000 charging machines in the UK.
5.Borrow at the cheapest rate available - taking into account interest rates and fees - consider consolidating your debts over a fixed period - personal loans can provide a low cost structured way to repay debts.
6.Check that savings are earning a good rate of interest - if not, move the money to another account. This applies to current accounts, too. Some banks pay as little as 0.25 per cent on £10,000 in some savings accounts
7.Consider remortgaging - it's often easier than you think and can save a lot of money. If you have a 'Standard Variable Rate' mortgage you could be paying 6.50 per cent interest. Someone with a £100,000 repayment mortgage could save £450 a year by switching their mortgage, that's more than £11,000 over the lifetime of their mortgage.
8.Make a list of all debts and tackle the most expensive first - be sure to take into account the value of the borrowing, the interest rate and any fees and charges.
9.Ensure that you save your money in the most tax efficient way possible - Individual Savings Accounts (ISAs) are a way of saving up to £7,000 a year that you don't pay tax on. Make sure that you pay in your annual allowance by April 5th.
10.Don't waste money by joining a gym: many people sign up to contracts and then don't attend very frequently - Gyms and fitness clubs will commonly cost hundreds of pounds per year and contracts can be lengthy (and therefore expensive), go for a jog and put the money into a savings account, instead.
Our top ten tips
1.Pay off and cut up store cards - these can charge interest of almost 30 per cent on purchases, more than double a standard card and four times as expensive as the cheapest flat-rate cards available.
2.Avoid paying fees for using credit and debit cards while you are abroad - UK consumers paid £500 million pounds in 2005 in foreign currency fees. Some providers do not charge them.
3.Check how the payments you make to reduce your credit card bill are used - Most credit cards apply your payments to your most expensive debt last, not first. This means you end up paying more. Nationwide, HSBC and First Direct do not do this.
4.Avoid using charging cash machines - Consumers will pay £250 million, in 2006, to withdraw their own cash from the 24,000 charging machines in the UK.
5.Borrow at the cheapest rate available - taking into account interest rates and fees - consider consolidating your debts over a fixed period - personal loans can provide a low cost structured way to repay debts.
6.Check that savings are earning a good rate of interest - if not, move the money to another account. This applies to current accounts, too. Some banks pay as little as 0.25 per cent on £10,000 in some savings accounts
7.Consider remortgaging - it's often easier than you think and can save a lot of money. If you have a 'Standard Variable Rate' mortgage you could be paying 6.50 per cent interest. Someone with a £100,000 repayment mortgage could save £450 a year by switching their mortgage, that's more than £11,000 over the lifetime of their mortgage.
8.Make a list of all debts and tackle the most expensive first - be sure to take into account the value of the borrowing, the interest rate and any fees and charges.
9.Ensure that you save your money in the most tax efficient way possible - Individual Savings Accounts (ISAs) are a way of saving up to £7,000 a year that you don't pay tax on. Make sure that you pay in your annual allowance by April 5th.
10.Don't waste money by joining a gym: many people sign up to contracts and then don't attend very frequently - Gyms and fitness clubs will commonly cost hundreds of pounds per year and contracts can be lengthy (and therefore expensive), go for a jog and put the money into a savings account, instead.
posted by Bruce Wayne at 3:01 PM
Top 10 tips for a prosperous 2006
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