All of us are guilty of not guarding our spending and not saving enough. We know that saving money matters. However, it is much easier to control for purchasing physical items than for financial products. For example, to buy or not buy that big ticket item that you don’t need, or this item is £50 cheaper at another store. The answers are clear and logical, “I won’t buy that large flat screen TV” or “I will save £50 by going to the other store”.
For financial products, finding the best deal and saving money is often not as clear or logical and is often overlooked by many. It is important to be aware of this and NOT spend more than you need on credit cards, finance cards, mortgages and loans.
For these financial products, there are two basic factors to consider. The interest rate (or APR) and the length of the outstanding debt. All of them, when managed properly can save you money if you make the right choices.
Mortgages. This is a long term debt you are going to be making payments (and spending on interest) for many years, 20 or 30 years in many cases. How much does an extra percentage point of interest cost you over 30 years? Add the compounding factor and it is substantial. By shopping around for the best deal now, you will save yourself and your family a lot of money over the years.
Credit cards. Same deal. Why pay 1%, 2% or even 5% more interest than you need. If you have an outstanding balance you are paying interest on, either transfer the balance to the cheapest interest rate card you can find, or better yet, get a loan at an even cheaper rate to pay off the high interest debt.
Loans. Yup, you guessed it. Same deal. It is worth it to find the best deal (low interest rate) and save money on interest. Loans also provide another utility to saving money on financial products. Debt consolidation. By using cheap loans (ie. low interest rate), to pay off all your high interest rate debts such as credit cards, store cards, purchase cards and other high(er) interest rate loans, you can save a substantial amount of money.
So, we agree, saving money matters. How do I get cheap loans in the UK, you ask?
If you are a homeowner, you can make use of homeowner loans or secured loans. These loans are some of the cheapest loans in the UK as the lender has less risk that the loan will default. A high percentage of these loans are paid back dutifully, and therefore they can offer you a lower rate of interest than an unsecured loan.
We can help. Luxe Loans can find the best loan today on the UK market. We search and compare UK lenders and deliver the best loan deals for you to choose and then get the loan money in your bank account. Fill out the form on the right side of this page or goto the free loans quote link at the top of this page for more information.
Related posts:
