These are bills you don’t have to pay off quickly

A sudden, steep but highly anticipated recession means we are all desperate to raise money over and over again and whatever we do, we need to pay off that debt as quickly as possible to strengthen our finances for turbulent times ahead. .

For the most part, this is absolutely correct advice. But not always.

Those with serious debt problems should seek advice from charities such as StepChange, which can develop personal plans for amortization or debt relief.

But if you haven’t and managed to manage your bankroll with unexpected cash in Covid, or if the crisis has left you in annoying but largely manageable levels of debt, here are a few strategies you can use.

Repayments: credit cards and overdrafts

We’ve always known credit cards are an expensive way to borrow money, but now, with the new reverse overdraft fee rules that generate a typical interest rate of 40%, overdrafts in particular are very expensive, although they don’t always realize it.

You’re right to pay it off as quickly as possible, and of course that applies to business cards, thresholds, or payroll loans – the most expensive form of mass loan out there.

Although the “snowball” method of paying off the smallest debt for the first time is gaining popularity with its psychological surge, experts urge debtors to focus on paying off the most expensive debt first. This is likely your overdraft. Clean it up and consider canceling setup if possible. It’s not worth it.

With a 0% reduction on old credit card balance transfer transactions, the days back and forth between free credit transactions without ever being paid back are fast fading away.

Millions of people take vacations to pay off debts. What happens when you finish?
Start by putting the balances on all of your cards below half of the total available balance to reduce the impact on your credit score. Then pay it off quickly and firmly.

Maybe you’ll pay it off: mortgage and personal loans

Long-term loans with lower interest rates sometimes don’t even feel like debt, they just sit in our brains under a file called an “Account”, as if we need something constant in life that we can’t escape.

However, paying a few pounds a month on a mortgage or loan can significantly shorten the term and thus the amount of interest you end up paying. But there is a warning.

First, these products often have an early settlement fee (ERC). Mortgages, in particular, are often a burden if you pay more than 10 percent of the amount you owe over a certain period or in the first few years.

Car loans often impose similar fines depending on the type of funding you have arranged to finance. A fixed rate may be required to pay off car financing and may be covered if early settlement is possible.

Second, as soon as you return the money, they leave. So, if you find yourself in the midst of a corrosive economic pandemic, for example, and you need extra cash to filter you out, this is not a flexible product to return some money even if you are a model borrower. By now, you are probably already exercising your vacation options.

Set up an emergency fund of between three and six months for your usual living expenses before embarking on an overpayment journey.

Another question that arises is whether paying off long-term debt at a low interest rate is the best way to use your money. Horrible cash savings today, even with fixed rate offers that block your money for several years, may not be able to pay you back more interest than you saved on a loan.

On the other hand, investing money can outperform our current very low interest rates, especially with such a long investment horizon. Getting the advice of an independent financial advisor is certainly something, although some investment vehicles have ridiculous management fees given today’s volatile stock market.

Don’t pay: student loans

Around 130,000 UK-based alumni made additional voluntary payments worth £ 2,740 each in 2019/20. Another 10,600 returned for an average of £ 4,310 before going into debt.

But it might be a useless exercise.


Student loan companies have been accused of promoting unnecessary payments
Students, starting university this year and receiving full tuition fees and maintenance loans, could owe more than £ 61,500 on departure, Hargreaves Lansdowne estimates. To get it back in full, they will need a salary of £ 53,100 – provided they don’t take career leave or get a raise.

Coming back to the real world, the average annual payout is now under £ 1,000 a year – just £ 120 in the last decade.

Unsurprisingly, the Institute for Tax Research (IFS) found that only 17 percent of graduates will complete their loan in full.

“It’s very worrying to send your kids to college to run into tens of thousands of pounds in debt – and nobody likes the idea that most of it will pay off in their fifties,” said Sarah Coles, a personal finance analyst at Hargreaves. Lansdown.

“However, if we focus on official student loans, we might lose money – and ignore the really problematic commitments students accumulate along the way.

“Most graduates will only pay back their student loans after they are written off. However, many are so worried about taking on debt that they make additional payments.

“For some, this would be a sensible approach based on careful calculation, but for many there is a real risk that this additional payment will be a waste of money,” he warned.

“During their studies, they’ll borrow thousands of pounds which can be returned to bite off.”

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Secrets to selling a home during lock down

Selling your home and moving to a new home can be fun, but it can also be expensive and stressful.

To help homeowners looking to sell their property, Admiral Home Insurance has partnered with experienced real estate agents to share some of their trade secrets.

“Even though we all want to hurry home, it can be an overwhelming experience – whether it’s your first time selling the house or you’ve had one before.”

10 secrets to selling (and buying) homes

  1. Debug, keep it neutral, and invest small for big profits
    “I sold the house at full price after it hit the market because we changed the color of the kitchen from blue to magnolia!” And it only costs £ 40 to carry out the transformation. It’s good to invest a small amount of money to see a big difference and sometimes enough to get the deal you want, ”said a senior director from Essex with over 22 years of industry experience.
  2. Do some research before choosing a real estate agent
    “If you look at the various agents selling property in your area, you will see what the agents are doing well. The number of boards sold is distribution,” said the owner of the Suffolk Real Estate Agency.
  3. Avoid disputes with the seller about agency negotiation fees
    The CEO of Essex advises buyers to pay attention to VAT as some real estate agents may not include this in their original number. He said, “Always think – and ask – will there be 20% on everything he’s going to offer me? Otherwise, the final bill might surprise you.”
  4. Get the price right
    “Remember, more people equals more offers, which puts you in a better position because you have more to play for,” explained one Essex senior director.

“Put your property on the market at a really good price so you can attract more people. This is much better than having an overpriced property on the market and then cutting it down.
It’s worth it because you don’t have enough people wanting to see it. “”

  1. Know when to accept offers and when to wait
    “If you own property on the market and, for example, open your first home and receive an offer, wait at least two weeks before accepting an offer,” said the senior director of Essex.

“Agents should always be there to tell you how strong the market is and how things will determine whether a property will still get a favorable response from buyers.”

  1. Communication is the key to a successful relationship with your real estate agent and faster sales
    Current Suffolk real estate owners advise, “There’s nothing worse than not being able to catch up with a salesperson when needed. You need to be on the phone and on the other end of the line if you want things to move fast.”
  2. Shoppers are looking for more green spaces and home offices after COVID
    Adds Dorset property owners, “By staying indoors when they close, they think about the space they have or don’t have and increase the importance of garden space for people to notice.” Renew and expand the outdoor space and access to fresh air.

“In addition, office and office space are now seen as important when people are working from home. This feature is clearly at the top of the buyer’s agenda.”

  1. Book books when the sun is shining and school is going on
    “The best time or day to book a tour depends on where you are,” explains a Dorset property owner. “If there are certain times in the park where the sun is hotter, you should try to fix the gaps for that time.

“If the house is close to the school, you should not do any inspections when there is a possibility of heavy school traffic.”

  1. Basic Considerations for Buyers
    One Suffolk property owner advised, “If you are a buyer, register yourself with any real estate agent covering the area where you will be moving. It’s important to have a memorable conversation with the agency and explain exactly what you are looking for and why.

“Keep in regular contact with them and don’t forget to take the phone when they call to let you know about the property.”

  1. Best tips for buying a house
    When it came to the long-running war, a senior Essex director said, “You shouldn’t let your heart rule your pockets. You have to stick to your budget. Agents have to spend between £ 5,000 and £ 7,000 from the interviewer’s estimate to be.” “
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