Author: Liam Harrison

Difference Between Good and Bad Debt

There are many people that feel that they should not borrow at all and others that feel that lent money is theirs to do whatever they want with. Unfortunately, neither attitude is the right one and it important that we have the right knowledge about debt so we can make the right decision when we are borrowing money. It is good to understand the differences between good and bad debt and then you can have the right attitude towards borrowing.

Improving Yourself

One of the main differences between good and bad debt is what you will be using the money for. For example, you might find that you will be getting a loan to buy a house. This is considered to be good debt because you will be paying a mortgage rather than rent and a mortgage is often cheaper. You will also end up with a home to live in and once the mortgage is repaid it will be rent free. However, if you borrow money to buy some clothes that you rarely wear and then give away this will not be seen as good as they have not had a big impact on you or improved you. However, it is often not easy to determine how good or bad the lending will be just based on this. It might seem like common sense but life tends to be more complicated than this and so the decision will take more thought.

Affording the Repayments

When you take on a loan you will normally have to repay a certain amount each month, although some loans do work differently. If you take on a loan that is so expensive that you cannot afford the repayments, then you could find that you might even face court of repossession. If this is a home you could end up with nowhere to live or if it is a car you may be unable to go to work. Therefore, you need to be really careful to check out how much the repayments are and whether you can afford to repay them based on your current financial situation. You will find that if you can afford it then it will be considered to be good debt and if you cannot afford it, it will be considered to be bad debt.

Finding the Best Value for Money

It is also important that when you choose a loan you choose the one that offers you the best value for money. This isn’t just referring to the type of loan that you choose but also the specific lender that you pick. It takes a lot of work to compare them all but you will find that it will make a significant difference to your borrowing experience if you pick the right one. It will also mean that you will not pay more than necessary and this is important as well.

Checking Costs Regularly

It is also important to keep checking the costs of loans compared to yours. You may find that you will spot some new loans coming on to the market that are cheaper or that some lenders have reduced their rates so that they are cheaper than what you are currently paying. It is worth looking to see whether you can save money by switching to them. Do note any additional fees as well as the rates as some may have ongoing charges, set up fees or things like this and your current lender may have a fee if you end your loan early with them, so you will need to calculate carefully and decide if it is worth swapping.

Easy Ways to Cut Down on Your Food Bill

All of us have to buy food and we often notice when the price goes up. It can take quite a big percentage of our spending and so we might feel that we want to try hard to cut it down. There are some easy ways though that we can do this.

Compare Costs Locally

It is worth comparing the costs of the food that you buy across different retailers. This does not just mean other supermarkets but also look at local butchers, fishmongers, market stalls, etc as you may find that you can shop with them and pay less. It can be great to support local business as well and they may not be as expensive as you might think and could even be cheaper.

Consider What you are Buying

It is worth thinking about whether you can change what you are buying to save money. You may be in the habit of buying the most luxury food items or just buying certain types of food. If you are then you need to consider whether it might be better to try some other things that are cheaper. Even if you are buying certain vegetables or fruits, look at the prices of different types and compare them to see whether you think that you will be able to get cheaper versions. You may find that you can enjoy all sorts of different things and save money this way.

Cut Down on Unnecessary Food

Most of us eat more food than we need to and so simply buying less could be useful for our budget as well as our waistline. For example, we are in the habit of eating snacks, which we did not used to be and so cutting these out could save money. Also cutting back on puddings could also be a good idea as well as these are not necessary. It might feel hard but you will see the benefits in two ways and so it could be really helpful. It can be easier to cut down slowly though, rather than trying it all at once. You will need to make a conscious effort though as once we are in a habit of doing things in a certain way, it is very hard to change without hard work.

Reduce Ready Meals and Processed Items

You will find that processed food makes up most of the supermarket shelves and so it is hard to ignore. However, it can be a lot more expensive than buying basic ingredients and cooking yourself. Of course, it takes time and effort to cook meals, but you could find that you really enjoy it and there is the advantage that you will be able to make meals exactly to your taste with the ingredients that you like the best. They will also be likely to be healthier as you can control the amount of salt, sugar and fat that goes into them. Even if you just cook a couple of meals a week it could be enough to make a difference.

Make a List and Stick to it

It is a good idea to make a shopping list and stick to it This not only will ensure that we buy the things that we have run out f but it means that we will not overbuy other things. This is important because if we buy items that we do not need, then we could end up not eating it before it goes off. This could be because the use by date is too close and we just have too much to eat before then and do not manage it. So, make sure that you are careful to avoid this waste.

Ways to Save Money When You Buy a House

There are lots of expenses when you move house and even without the cost of the house itself you will have lots of costs. This means that you might want to look for ways to keep those costs down. It can be useful to try to cut costs in a number of different areas so that the savings you make are more significant.

Removals

You will need some sort of removals to get your items to your new home. You have lots of options and it is worth considering which will give you the best value for money. You can use a removal company that will pack your items as well as transport them. This would be the highest cost service and it is worth considering whether it is worth it. You could pack the things yourself to make it cheaper. You could hire a removal van yourself to save money as well, although you would need to be sure that your driving license allowed you to drive a vehicle of the size that you hired. You could just use vehicles that you own, or that people you know own. The service will depend on how many items you have to transport and how big they are as well as how far you have to travel and how capable you are of moving large things. It is good to think through each option and once you make a decision, compare prices to find the cheapest service and decide whether you think that will offer good value for money.

Solicitor

You will have to pay for a solicitor unless you want to do some of the conveyancing work yourself, but even if you do this, you will still need a solicitor for part of the process. This means that you will need to find out how much different solicitors charge and compare them. You may be happy just to use the cheapest or you may want to check out their reputations and find one that is efficient, friendly etc as well.

Mortgage Fees and Subsequent Payments

The mortgage can be one of the most important decisions that you make. This is because choosing the best mortgage could be crucial to how much you will have to pay back for years to come. There are different mortgages and you will need to decide which type will suit you. Then you will need to compare the different lenders and decide which seems to be the best. This is a job that can take a long time but it is worth the effort. You will need to think about the repayments as well as you will need to make these every month and you need to be confident that you will be able to find the money to do this. Even if the mortgage is more expensive, it could be better to spread the payments over a longer period so that it is easier to manage. You might be able to get a flexible mortgage where you can make overpayments in the future which could be useful if you have more money in the future so want to pay it off.

Renovation

There may be costs as soon as you move in if the house does not fit your requirements. It might be that there are essential repairs and updates to do or it might be that you just want to decorate. Think about whether the jobs really do need doing and then get lots of quotes for the work to make sure that you are not paying more than necessary. You will save money if you do some of the work for yourself as well.

Tips on Repaying a Loan Early

Many people choose to repay their loans early. This can save a lot of money in most cases as interest will not be being charged for so long and this is why people like the idea. Of course, you need to have the money to be able to do this and this can be a problem for some. It is a good idea to think about what sorts of things you can do which will help you to achieve this.

Check you are not Overpaying for the Loan

It is a good idea to start by making sure that you are not overpaying for the loan. It is a good idea to therefore look at the rates of various loans such as those offered by Cobra payday loans and see whether you could borrow from someone else instead and save money right away. There may be costs involved in doing this so make sure you check this out too as the costs may mean that it is not worth swapping lenders. You also need to be a bit careful when you do this as it could lead to more borrowing. For example, if the loan you want to repay early is a credit card, you may decide to repay it with a personal loan which is cheaper and pick a flexible one that you can overpay. This could work out really well, but you will then still have the credit card and if you start building up debt on that again, you will end up with two loans rather that one. So, think about whether this is a risk that you are willing to take. It will depend on whether you feel that you are likely to do this or not.

Look for opportunities to earn more so you can repay loans earlier.

Look for Opportunities to Earn More

You will need money to repay the loan early and earning more could be an ideal way to do this. Of course, you will need to decide whether you are willing to put in the extra hours to working so that the money can go towards repaying the loan. It could take determination and effort and it will depend on how high your desire is to repay. You may find though, that there are some ways of earning that you find much more appealing than others. For example, you might be happy to do a few extra hours in your current job and earn a bit more that way. You might feel that you can ask for a pay rise or try to get a promotion perhaps or even look for a better paid job. You could also consider selling things that you own and no longer need to raise some money. You could also look or small online jobs, there is freelance work available that could get you a bit extra money or you could earn a few pounds answering surveys etc. There are some easy things which will only earn a little but are relaxing and fun to do so you might feel it is worthwhile.

Cut Down What you are Spending

If you try to reduce the amount that you are spending then this can help a lot too. It can feel a bit miserable though as you may feel that you will be depriving yourself of money. However, it can be a good opportunity to save some money and need not be difficult. For example, check you are not paying too much for the items you buy regularly. Check the prices and see if you can get them cheaper elsewhere. This will take some effort but you will still be able to buy the same things and so not go without anything. You could cut back on some spending though as this will make more of a difference and you will need to identify what items you buy that you do not really need and whether you can cut back on those.

How to Pay for Replacement of New Furniture

If you need to get some furniture for your home, whether you are setting up home for the first time or replacing furniture that you have, you will need to think about how you will pay for it. This means that it is important to make sure that you have a think about this before you decide to buy anything. Obviously, you will also need to think about what you can afford before you go shopping and so considering how you will pay all links in with this.

Use Savings

Using savings can be a great way to buy furniture. This is because you will be able to get the furniture really quickly. Unless your money is tied up, you will be able to use it right away and this means that there will be no delay in getting the furniture that you want. If you only want to use savings, you will be limited by how much money you have. If you have lots of money then this may not be a problem, but if you do not then you may not be able to get very much furniture or you may need to shop in cheap places which might not fulfil your needs. You will also miss out on the interest if you spend your savings. This may not be a significant amount, depending on how much interest you get. An instant access account is unlikely to pay a great deal of interest but a notice account, fixed rate bond or something like this could pay a much more significant amount of interest and so it is worth considering this as you may miss out. However, usually, compared with the interest charged on a loan, savings interest is low and you will better off using savings than borrowing but it is worth calculating this to be sure.

Save Up

If you do not have savings or enough money saved, then you could save up. This will mean that you will have to wait for the furniture until you have saved up enough money. This might not be ideal, especially if you do not have any furniture at all or if yours is in really poor condition. However, for some people it could be a good option. It isn’t always easy to save up though. Hopefully you will be motivated because you want the new furniture and therefore will be happy to try different things to enable you to save more. You could try to find ways of earning extra money, spending less, buying cheaper things, selling things you no longer own or other things in order to quickly build up your savings and gain more money.

Loan

You could always borrow the money to buy the furniture. This could be difficult if you have a poor credit record as you may struggle to find a lender. However, most people should be able to get a loan if they want one. It is important though, to make sure that you get the right sort of loan for you. You want to find out how much the loan costs to start with and make sure that you are happy with paying that much extra for the furniture. Then you want to also find out how much you will need to make in repayments. You will normally be expected to repay a certain amount each month and you need to find out how much this will be so that you are able to check and see whether you will be able to afford this. Make sure that you carefully check your previous bank statements so that you can see whether you would normally have enough money or whether you need to cut back so that you can afford the repayments on top of all of your other payments.