How Debt Consolidation Can Help You In Later Life

 

No matter which way you look at it, the word debt seems to strike fear in the hearts of many people, and none more so than children of the 60’s.

For some reason, the older generation sees being in debt as a tad shameful and something to be avoided at all costs.  As if to give themselves some moral high ground, I’ve often heard mature people proclaim ‘I don’t owe anybody anything’.

But is that something to be proud of, or, could it indicate that you’ve denied yourself some luxuries, or not enjoyed your life as much as you might have otherwise if you’d taken out a loan, however large or small to live more comfortably or to help your family perhaps.

But despite your best intentions, what happens if, in later life, you do find yourself with a few different loans which are all incurring interest, and are in fact causing you some worries.

Most Important – Don’t Worry!

If you are living life to the full it’s likely you may have invested in a motorhome, or a new car to enjoy during your retirement. You may have kindly helped your children with a deposit for a house or supported a Grandchild or two through University. You may have enjoyed some long-haul holidays courtesy of your credit card, or revamped your home or garden.  All these things cost money and are things over and above the cost of day-to-day living.

Sometimes all of a sudden you decide to take a look at your finances and realise that you have 3 or 4 outstanding loans which are all incurring interest at an alarming rate.

To alleviate some of your concerns, it could be time to consider if debt consolidation might help you.

How does Debt Consolidation work

Quite simply, you replace all of your outstanding loans, such as credit cards, car finance, house improvements, with just one loan, and one interest rate. Very often this can be at a lower interest rate than the ones you are already paying. It tidies up your outgoings and is more manageable than having your money going out to so many different organisations.

Secured or Unsecured Terms

There are two types of consolidation loans, secured and unsecured.  If you choose secured, the loan will be offset against your home and will take into account the amount of equity you have in it.  The interest rate for this type of loan can be lower as the lender knows it is exactly that – secured.  But don’t forget any loan secured against your property immediately puts your home at risk, you must be sure you can meet the monthly payments for the length of the loan term.

An unsecured loan is riskier for the finance company as the security is merely backed by your promise to repay it, thus the interest rate could be higher.  Things to consider here are that if you fail to pay back the loan or miss a monthly payment, your credit score will be affected.  Before taking out an unsecured loan make sure it works for you.

When Debt Consolidation is NOT the right choice

If you are already having difficulty meeting the monthly payments of your outstanding loans, having them all under one roof, so to speak, really won’t make much difference unless you manage to fix a considerably lower interest rate. You will still owe the money, and you will still have to pay it back, but just to one lender, instead of maybe 3 or 4, and let’s face it, in later life the opportunities to earn extra money diminish by the year!

No matter how old you are, if you are already struggling, then you need to seek a different kind of solution and talk to a debt counsellor, or your local Citizens Advice office.

 

 

 

 

 

This Is How To Save Money In 2021

I don’t know about you, but saving money is pretty high on my list of priorities right now. Especially right after Christmas. Not to mention the fact that when all this Covid-19 stuff is over, I want to make the best of travelling and seeing everyone I can – which also costs money. The good news is I have found plenty of tactics for preserving the pennies and saving them, and other things such as coupons, up for fun things to do, once lockdown has lifted. Keep reading to find out what they are. 

Shop with coupons 

Coupons can help you save a fortune on your weekly shop, and believe me, this can really add up over the year! It used to be that the best coupons are only found in the free flyers that came with magazines. However, this is no longer the case. Instead, now you can shop online and print multiples of the same great coupons allowing you to create a stockpile of food and households good for a fraction of the usual price. 
Find the best deals 

Of course, there are some things that you will need that coupons won’t cover. In that situation, it’s best to shop around and find the best deals that retailers are offering, both IRL and online. For example, folks looking to switch to vaping will find plenty of cheap vape deals online. Something that can help them save a huge amount on what they would pay for these devices and liquids in store. 

Choose preloved items 

Another way that I have found to save a pretty penny is to opt for preloved instead of brand new items. The great thing about this option is that you can get almost anything preloved from clothes, to electrical devices. 

 

Of course, with things as they are with Covid-19 at the moment it is important to stick to the local guidance, wear masks and wash hands when you pick up good and even properly sanitize them before you bring them into your home. After all, no saving is worth the risk of getting sick! 

Sell things you do use anymore 

The great thing about selling old, unwanted items is that you profit twice. First from the money that you make by selling the item itself, and secondly, because you save on storage space and the time and effort it takes to stay organized and keep your possessions clean! 

Of course, I’ve found that the best way to get top dollar for any unwanted items is to use a platform that caters specifically for the niche they fall into. That means if you have some old collectables or record your best off finding a site like eBay that allows people to search by these key terms or by using an independent dealer that specializes in these items. 

However, if you are looking to make money fast that using local selling pages and social media groups is the best approach, Just remember to attach photos, as this can really boost your chances of making a sale and every little helps when it comes to increasing your saving for a good blow out once things get back to normal! 

 

NIFTY WAYS TO BE THRIFTY AND PROFITABLE AT SIXTY

I know that it’s hard to manage your money. Believe me. And it doesn’t necessarily get easier as the years go by. But you can ensure that you have a happier future if you do more to protect your finances in the present day.

Think about your retirement and even university tuition for your children. Both of those things cost money, unfortunately. But before you start living an excessively frugal life just to restrict your spending, you might want to think about ways in which you could make smarter financial decisions. These are some nifty ways to be thrifty and profitable at sixty.

a man buying books at a book stall

Finding ways to be thrifty – selling the books you’ve read.

 

 Sell some of your belongings.

The first way to improve your personal finances is to start selling things of value that you no longer want or need. Most people have valuable things sitting around in their home that have been long forgotten. I know mine does. Your house is probably no different. You should get involved with a local car boot sale or perhaps even put together your own.

Other people might see great value in things that you no longer need. You could make a lot of money from your old belongings, and you’ll be decluttering your house at the same time. It’s a win-win situation.

 

Learn how to invest your money.

Ever made any investments? Well, you should. I know it sounds like a risk on the surface, but it’s smarter to increase your wealth than to leave it sitting in your bank account. If you invest your money well then you could open up new streams of income on top of your existing monthly wage. For instance, buying and leasing properties is a good way to bring in a regular source of income. You might also want to consider learning about CFDs (a contract for difference) to make smarter trading decisions. With the right tools, you can keep track of price fluctuations in global markets. It’s important to do your research and use all the resources at your disposal if you want to make intelligent investment moves.

Wallet with money near a computer.

There are many to make extra money via your computer.

 

Tidy up your monthly expenditures.

One of the smartest ways to be thrifty is to simply tidy up your monthly expenditures. You might waste more money on basic expenses than you realise. Start off by making a budget. You should check this budget regularly to keep tracking of your income and outgoings. But the point is that you need to keep an eye on the amount of money you set aside for essentials. Take a look at possible areas of your life in which you could save money.

For instance, you might be able to save money on energy by getting thicker glazing for your windows or insulating the roof in your attic. If you can trap heat in your house then you won’t need to use so much energy to keep it warm. You could also save money on your phone bills or car insurance by looking for cheaper quotes on comparison websites. If you find a better deal with another provider then you’ve got an opportunity to haggle with your existing provider for an even cheaper price. Once you start cutting down your monthly expenditures, you’ll have more money to set aside for your savings.