Do You Know What You Are Spending On Loans
During these troubled financial times which we are currently experiencing due to the ongoing effects of the credit crunch, it is vitally important to keep a reign on the purse strings, not spend money on unnecessary items and ensure that we are all getting the best deal that we possibly can on our personal loans and mortgages as well as other services such as insurance and the best provider of utilities like gas and electric.
But according to a recent survey, which has been conducted by Norwich Union Equity Release, the majority of us living in the UK have little or no idea about what we are paying out each month on our personal loans, mortgages and other services, despite the fact that on average the typical home owner will spend 53 per cent of their take home pay on these types of financially necessary items.
The survey questioned individuals about their mortgages or homeowner loans and it was found that 72 per cent of borrowers did not even know what kind of mortgage loan they had (fixed, variable, tracker etc), 67 per cent could not say what their monthly repayment amount was and a staggering 78 per cent did not have any idea as to what interest rate they were currently paying on their loans.
The cost of loans and mortgages can vary hugely, and many people are blindly paying their lenders standard variable rate without realising that they could possibly be paying much less each month for the same thing.
If this is starting to ring any bells with yourself and you are feeling a twinge of guilt about not keeping up with your finances, if you do nothing else today, check up on the details of your mortgage and other loans and then contact an independent financial adviser, you never know, you might be surprised at just how much you are able to save each month!
