Money makes the world go round. Well, it will keep turning regardless of one’s financial situation but surviving is easier if you care for your finances. It is important to make informed decisions about how you spend what you do have.
The concept sounds simple enough, you research the different savings and current accounts, investment opportunities and implications of taking out a loan or mortgage but how do you know who to believe? There are a number of companies all more than willing to give you advice that favors their business.
This question in itself is too large. What an individual person or business requires from an account is unique and therefore research has to be conducted and then a detached decision should be made based on the findings. Doesn’t that sound like a tedious task? Well, the internet can help. As with insurance, there are now websites that will request a certain amount of information and will then look at a number of different companies who specialize in the product you are looking for and churn out the results for you to evaluate in one place.
This service can also be used for credit cards so that you can secure the best rates, but it’s important to remember that banks and building societies favor those who are loyal to their brand. This means that if you have had a current account with, for example Lloyds for a number of years then you might be able to secure a credit card or loan at a tempting rate simply due to this fact.
As well as looking at ways to spread your costs or save money, there are also channels for borrowing money on more of a short-term basis. Wonga are a short term loans company who allow their customers to borrow an amount of money for, most commonly, a maximum of 30 days. While this means that normally it just tides people over until their next pay day, it can have major side-effects in terms of the interest that you pay on the debt. The way these companies make money is by setting very high interest rates so if you find yourself a little late paying it back, you may end up with a greater debt than originally predicted.
Managing money can cause problems for some people, having enough to cover all the expenses is becoming more and more difficult as the bills increase but wages do not. There are companies who specialise in money management, but any bank or building society – Santander, Lloyds, Barclays, Nationwide and so on – have employees who are willing to offer advice on how best to manage your money. It’s also important to remember that this is not a service reserved for those with a smaller disposable income, money management is important for all salaries.
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