world of personal finance today is a highly competitive industry,
which is good news for consumers as companies are working overtime
to give better deals to loyal customers. However, the downside
of having a staggering number of companies and products makes
the task difficult. Here is a low down on the aspects of personal
finance which will make your task simpler:
• Borrowing: Did
you know that an average borrower in
UK has over £4,000 worth of unsecured debt and this could
be through credit
card balances, car loans, store cards or overdrafts.
But with so many lenders out there, there is simply no need to
pay over the odds for a loan these days. There are many different
ways of borrowing money, but the two most common types of loans
loans (where homeowners secure
the money they borrow against their property), and unsecured
personal loans (where
no security is required).
• Saving: It
is the money put aside each month, on which you accrue interest.
The more money you have in your account,
and the longer you leave it there, the more interest you build
up. This is a good short-term way of saving
money. But if you’re
planning to save over a longer period of time there are other
products that you may want to consider that could make your money
work that little bit harder. Banks and building societies have
a plethora of different savings schemes and products.
• Investing: Though
your money is safe in a bank or building society account,
but it (money) could be working a lot harder
for you. In real terms, the interest that you earn is relatively
low with a bank or building society compared to the growth you
could be looking at if you made use of alternative investments
market and other gilt schemes.
• Protecting: There
are, however, a number of common areas where it is relatively
easy and straightforward to financially
insure ourselves and our families. These areas are widespread
and include cover when you travel on holiday, including when
you ski or snowboard, when you use your car or any other form
of motor vehicle, taking your pet to the vet, visiting the dentist
or receiving other forms of medical treatment.