A new approach to money and spending

A new approach to money and spendingThe result is that everyone still needs to keep a tight rein on their expenditure, especially those whose credit ratings were damaged by unemployment and default.

It is important that the casual use of credit cards stops; many have had no choice as their cards have been lost because the companies have completely changed their expansionist policies due to the crisis. The sensible use of a credit card remains a good way to save money as long as there are no annual fees and the monthly balance is paid off in full every month.

The biggest single financial outlay for most families is their mortgage and in the early days borrowers often took the longest term available to keep the monthly payments low. It is worth looking at that more closely because if a mortgage can be paid off early there is a considerable reduction in the interest that is incurred. While real estate has always been seen as a wise investment, valuations have fallen, or at best stood still recently. If it is possible to increase monthly repayments thereby reducing the period the mortgage has to run then there is major saving to be made.

Those people who have had particular problems in recent years but have once again found work and are beginning to repay their core debt could do worse than to look at a consolidation loan as a means of bringing their debts under one umbrella, and a single monthly payment. This is certainly the case if much of that core debt involves credit card balances because the interest charged by credit card companies is far higher than that of a consolidation loan, even if it is with no credit check.

A consolidation loan may only be possible once during the term of the loan so it is important to have a disciplined approach to expenditure at the same time; certainly there is little point in paying off a credit card balance if the user is merely going to build up a balance again.

It is possible to bring discipline into the family household on a regular basis. There are always ways of saving money on gas by looking to see whether there are any discounts or special offers; car fuel economy will reduce the monthly expenditure as will a little research on the best providers of utilities in general.

There is no substitute for restraint; can that new pair of jeans wait a little longer; do we really need to buy new furniture? There are many similar questions cropping up daily but if purchases are important, a little time looking for the best deal available on the internet might pay dividends. Likewise the use of special offer coupons and a disciplined approach to grocery shopping can save the money to achieve the extra mortgage payment each month; one way to reduce the overall repayment sum for the mortgage.