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Maximising Savings | Budgeting Advice London
The credit crunch has been affecting all of us. People are struggling in the general running of their daily lives. At Debt Advice London as well as advising people on their debt problems we also want you to get the most out of your money, assets and income, so please browse through this section were we offer advice and tips on how to maximize your income and minimize your outgoings. This section deals with how to manage your monthly savings and getting the most out of your income.
Maximising your Savings |
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Cash ISA's
If you are fortunate enough to be able to save and have savings it is important to try and maximise your savings in the best way possible. Cash ISA's are perfect for saving your money. They are similar to a savings account only there is no tax on the savings interest. This is great as you can save over one fifth on your savings interest. You can save up to £3,600 annually in a cash ISA. Like any savings account a cash ISA is flexible.
Paying off debt with your savings
If you have debts which charge interest and you have savings, then you would benefit from using the savings to pay of the debts. Although ideally this is not what you want to be spending your savings on, however if you think about it, you will actually be saving money in the long run.
For example if you have debts on a 18% APR credit card of £1000, your interest for the year would be £180. If you saved £1000 in a savings account at 4% annually after tax, the interest your would earn would be £40. This leaves a difference of £160. If you used the £1000 in the savings account to pay off the debt, this would be the amount that you would save within the year. The thought of using your hard earned savings to just to pay off a credit card debt is understandably heartbreaking, but it does makes sense.
Contact Debt Advice London for help on Maximising your Savings
If you would like to Contact Debt Advice London we will be able to offer you advice on making the most of your money and if you are struggling with your debts we can tell you about what debt solutions are available to you. All our advice is FREE so you have nothing to loose by giving us a call. Call us now on 0800 043 0550 or visit the Contact Page to get in touch. Alternatively Speak Online to an Advisor now.
