Could you reorganise your borrowing?
Payments on borrowing can eat into your income and offset the benefit from any savings you have. In your personal financial review, you’ll look at your debt as a whole – things like credit cards, a mortgage, an overdraft or a student loan – and see if there’s a better way to organise it to suit you.
For example, some people who only pay the minimum on a small credit card balance each month might be able to save money by using a personal loan to pay it off in one go. The right solution for you will depend on the interest rates and outstanding balance on each sum you’ve borrowed.
Are you saving for the future?
- When you review your savings it’s important to set yourself specific goals and to understand what your aims are. Are you putting money aside for the long term, or saving up for a specific medium-term expense such as the deposit on a home? How much can you realistically afford to save each month? Would your money be better spent paying off some debt?
- A personal financial review will look at how much you’re putting into savings like pensions and ISAs, and suggest any changes that could make your money work harder for the future.
- You should also check the interest rate on any standard savings accounts you have. Interest rates change from time to time, so even if you got a great deal when you opened the account you might find it’s less competitive now.