Moneygate

Cut Costs and Your Credit Card Bill say Moneygate

For many British credit card holders it is now payback time, with the average card holder owing £2,200. Assuming a monthly payment of £100 and an interest rate of 15%, that would take two years to clear.
The sensible move is to stop using the plastic and look at ways of cutting spending to clear that debt or consolidate any debt with a loan or remortgage.

Consider a low-cost loan.  A credit card debt of £2,200 over three years will cost £545 in interest at an APR of 15 %, while a loan at 6% will cost £209 in interest.  A big saving of £336!
If you’re looking to have more money in your pocket, why not change your electricity and gas suppliers for a better deal and divert the monthly cash saving to paying off more on the credit card.  Hunting out the best power deal really can mean considerable savings – in many cases around £100 a household.

Review your mortgage.  The savings that can be made over the life of a mortgage are huge, by getting the best mortgage advice and the best mortgage plans.  If you are paying the mortgage lender’s standard variable rate you could be needlessly paying hundreds of pounds a year more.  Just think the effect that would have on your credit card bill.
However, always check the small print when changing a mortgage to make sure there are no heavy penalties to pay.  If you can afford it why not make overpayments to your mortgage which can clear the home loan several years early.

Annabel Green of national IFA Moneygate said: “If you borrow £100,000 at 6% over 25 years, you'll pay it back at £643 a month. The total charge for credit will be £93,000. But if you can overpay by £100 a month you'll clear the loan in less than 19 years, giving you six years of mortgage-free living and saving a staggering £25,000 in interest.”

Many people also let their car, home and life insurances roll ever year but they could be saving hundreds of pounds by reviewing them regularly. Phone and TV packages periodically vary according to the deals on offer, as do mobile phone contracts.  Check all your outgoings and you will be surprised how much can be saved.

For more information go to www.moneygate.co.uk