How You Can Save Money on Breakdown Cover for Your Car

If you are on a tight budget and want to save as much money as possible on your breakdown cover, there are a few key tips you will need to follow. This type of cover can be extremely useful if you ever find yourself stranded on the side of the road, but it can cost a lot if you aren’t careful. The total amount that you pay for breakdown cover will depend on your specific needs, where you get it from, and many other things.

Get a Cover Level to Match Your Needs

You will want to look for a breakdown cover level that will satisfy your particular needs. There is no point in getting more cover than you absolutely need, as you will just be wasting money. Each level of cover has something different to offer, so you need to review your options.
Some of the different cover levels include:

• Home assistance: This level of cover will provide you with assistance if your car is still in your driveway at home. Whether you have locked your keys in the car or the battery needs a jump, this can certainly be very useful.
• National recovery: Those who opt for national recovery breakdown cover will be able to get their car towed anywhere in the UK if the problem can’t be resolved on the roadside. This way you can ensure that your car goes to a garage that you trust completely.
• Onward travel: When you have this level of core, you will be able to get a car hire or even overnight accommodations if and when your car breaks down.
• European cover: If you tend to travel all over Europe in your car, you should consider this option. It will help you save money on getting your car towed and even repaired while you are outside of the UK.

Buy Your Breakdown Cover Separately

It can often be much cheaper to get your breakdown cover separate from your insurance policy. There are lots of different third-party providers that can help you get the cover you need. If you are looking for a new car, you should try to find one that comes with free roadside assistance. Before you sign any paperwork, make sure that you are getting this particular feature.

Choose a Smaller Firm

When you are looking for breakdown cover, you should think about going with a smaller breakdown firm. The small businesses are usually the cheaper ones, especially if you’re looking for cover for vans and you can still get exactly what you need. A lot of people instantly go for the big firms, but this can be a huge mistake. Take the time to look and see what each one offers before making a choice.

Compare Your Options Online

The internet is by far the best resource that you can utilize when it comes to getting the best possible deal on breakdown cover for your car. You should see how much you will pay with different firms so you don’t end up spending more than you have to. It is fairly easy to get quotes through these businesses on the internet, so keep that in mind when weighing your options.

Consider a Pay and Claim Policy

You will find that pay and claim breakdown policies can be among the most cost-effective options available. Those who have one of these policies will have to pay the standard annual fee, but the company uses contracted businesses for their recovery services. You will also be required to pay for any local services rendered, but the company will reimburse you for them. The upfront costs may be more, but you can save money overall.

Check to See if You Already Have Cover

Some people already have breakdown cover and don’t even know, so this is something you will need to look into. A lot of banks give their customers this type of cover if they open a premium account. You may also have it through your car insurance policy. Don’t start looking for this type of cover until you have already checked this out.

Do You Need Breakdown Cover?

It is a good idea for a vast majority of drivers to maintain breakdown cover because of how helpful it can be in a variety of situations. Even those with newer cars that are less prone to breaking down should still have at least a minimal amount of cover. The more time you spend looking through your options, the easier it will be to choose the right ones. There are lots of ways to save money on this sort of cover, but you don’t want to rush into a decision. Those who take their time with this will end up getting what they need while staying within their budget.

What You Should Know about Debt Consolidation Loans

Loans can be very dangerous things when they are used without the proper care and attention. This is something that the UK as a whole knows very well. As a nation, the country owes more than £1 trillion in debts, and if you’re one of the many people who are struggling to pay back the money that you owe to creditors or banks, then it’s important for you to consider the different options that might be available to you.

In some cases, rather than simply trying to pay off the minimum amount required each month for your debt, it could be more beneficial to consider a debt consolidation loan that will help to reduce the amount that you owe overall, and ensure that you’re only paying out for one manageable payment each month. The important thing to remember is that you will need to examine all of the relevant issues in question when considering a debt consolidation loan, to see whether this option is right for you.

What is a Debt Consolidation Loan?

Sometimes, it’s possible for people to owe money to a lot of different places at the same time. For instance, you may have an outstanding balance on a personal loan, credit card debts, and an overdraft that needs to be considered too. Basically, a debt consolidation loan is a kind of loan that you can use to get rid of all of those separate concerns, and bring them together into a single place.

In simple terms, a consolidation loan works by having a lender pay off all of the debts that you already have, and transferring the money that you owe into a different loan that comes with a single monthly repayment. Although in these circumstances you will still be required to pay back all of the money that you owe, you might be able to reduce your monthly outgoings by a significant amount, reduce the interest rate that you have to pay, or spread out the repayments over a longer-term period.

Why Consider a Debt Consolidation Loan?

If you’re thinking about consolidating your debts, then you’ll need to understand exactly why this option is so beneficial for some people. Consolidation loans can help by reducing your monthly payments, by spreading the full term of the debt out over a longer time. This can help to reduce your monthly repayments to a more manageable level. Often people find themselves paying the very minimum payment allowed on their existing debts, which means that you end up only paying the interest on the loan while the actual amount owed remains unchanged. Sometimes, a consolidation loan can make it easier to start making a dent in the capital owed.

Consolidation loans can also work to improve your credit rating in some circumstances. If you are able to pay off the loan that you owe and you don’t take on any further debt, this should be seen as a positive step for your credit history. It’s also a good idea to check the details of your credit report in depth before you apply for a debt consolidation loan.

Finally, debt consolidation loans can also reduce the amount of interest that you need to pay overall. If your debts are with credit cards that have a high interest rate, then you might pay back less with a loan overall. You simply need to make sure that you find a loan that has a lower APR.

The Problems with Debt Consolidation Loans

Perhaps the biggest issue with debt consolidation loans is that you might end up being in debt for a much longer period than you actually need to be. It’s crucial to make sure that you weigh up all of the alternative options available to you that could help you to reduce your debts and pay off existing ones if you are considering debt consolidation loans.

Additionally, it’s worth noting that these loans should not be the first thing you do to take action against debt, especially if you can budget to get rid of your debt completely. If you do find that a debt consolidation loan is the best option for you, however, you will need to speak to a lender about your options. If you have a previous history of large debts or bad credit, then a lending company can only think about offering you a loan that’s secured. This will demand that you use your property as security for the loan, which reduces the lender’s risk. You will need to be very sure that you can pay those repayments, as your house could be at risk if you default.

Often, personal loans can be used as a solution to consolidate your debts. However, as with any other kind of borrowing, your lender will examine your credit history and the amount you want to borrow before deciding whether to offer you the amount you need for a low interest rate.

How to Make the Most of your Credit Card

Want to make the most out of your credit card? The first step is understanding exactly what this unique financial solution can do for you. Credit cards are quick and easy ways for people to access miniature loans for the items that they need, taken from a bank or building society. Unlike standard loans, you will have to pay back the money you borrow with a credit card very quickly.

When you use the cash on a credit card, you aren’t spending your own money, but the money of the credit card provider. That means that you owe them whatever you spend, with some interest added on top. However, you can choose how and when you pay that money back according to the limits and restrictions of your card. If you’re disciplined and you can pay the money you owe quickly, having a credit card can be a great way to borrow small amounts of cash for short periods of time. However, if you can’t pay your credit card balance off quickly, you could easily find yourself getting into debt.

Understanding Credit Cards

The first thing to understand about the average credit card is that the amount of money you’ll need to pay in terms of interest can be calculated using the annual percentage rate. This is a number that’s represented in the form of the APR on your card. Because the amount you pay in interest is calculated with a reference to the amount you owe, the amount you pay can ramp up significantly as time passes and your balance grows larger.

The key to making sure that you use your credit card properly, is ensuring that you check the market for interest-free credit card offers. A lot of different providers offer interest-free periods on their introductory cards, and you can use this time to buy items and pay bills without having to incur any interest. Of course, the only caveat is that you have to make sure that you pay off your credit card balance before the interest-free period runs out.

One of the best ways to ensure that your credit card repayments are issued on time is to create a direct-debit in your current account that sends money to your credit card provider every month. The only problem with this method is that you could end up facing problems if you don’t have enough money in your current account to pay your bills. Remember that defaulting on payments will always put a black mark on your credit history that might damage your chances of borrowing in the future.

Choosing the Right Credit Card

There are a range of different types of credit card that you can choose from. The best one for you will depend on what you want to accomplish, and what your needs are in terms of money. For instance, you could use a balance transfer card to help you move the existing debt you have on one credit card over onto another credit card. Usually, the new credit card will have no interest, which means that you can reduce your debts significantly. Just keep in mind that 0% interest credit cards only have deals that last for a limited time.

0% credit cards make sure that you don’t need to pay any interest on your purchases for a certain amount of time. These cards can make it easier to keep up with your repayments. A card that is similar to a 0% credit card, but perhaps not as appealing, are Low APR credit cards. Generally, these low APR cards offer a low interest rate that lasts for much longer than the no interest offer on a 0% card.

On the other hand, if you’re the kind of person who has suffered with problems regarding repayments in the past, you may be best served by a credit-builder card. These cards are designed for people with poor credit histories, or no credit histories.

Some credit cards can even offer specific rewards when you use them, such as airline miles or points for certain stores. There are even cashback cards that reward you with money back when you spend your credit in particular places.

The Problems with Credit Cards

Though credit cards can be a wonderful way to reduce the problems with your spending habits, and make it easier for you to stretch out your repayments, they can also be very dangerous if you don’t know how to use them safely. If, for example, you can’t make full repayments on your card according to the time frame that you have been given, you will need to pay interest which can quickly develop into serious debt over time.

Make sure that you never use credit that you simply can’t afford to pay back, and ensure that you don’t turn to credit cards in an attempt to manage long-term debt. Relying on your cards too heavily could easily lead to serious financial problems.

How to Borrow on Small Loans: Does it Affect your Credit Score?

We all need a little extra cash sometimes, but that doesn’t mean that we want to ruin our credit scores taking out huge loans. Maybe you just need to fix something small on your car, or you want to pay for a new washing machine – how can you find smaller amounts of cash for those simple issues?

While there are plenty of solutions for larger loans out there, it seems like the less you want to borrow, the more you have to pay in terms of interest and other annoying charges. With that in mind, there are still options out there for people who want to make ends meet with a short-term loan.

Credit Scores and Small Loans

As with most things in the financial world, you’ll usually find that the best small loans are reserved for people who have a great credit history. In other words, if you’ve ever had arrears or CCJs that have left a black mark on your credit report, then you might have to pay more in terms of interest.

Though there are several providers out there that are willing to process smaller requests for loans quickly, and without much problem, you may find that you need to go through a lot of complicated and time-consuming forms that you’d rather avoid. Depending on where you go for your small loan, you may either be able to get the money transferred almost instantly into your account, or you might have to wait weeks to see the cash that you need.

Importantly, if you need money very fast, for something like a medical expense, then you’ll need to make sure that you look to do business with companies that can give you money quickly. However, you should try to avoid payday loan options that might end up charging you more than you can pay in interest.

How Small Loans Affect your Credit Score

One of the most common things for people to worry about when investing in a small loan, is how much their credit score will be affected by the money they borrow. It’s important to remember that just because you’re not taking out a huge car loan or mortgage, doesn’t necessarily mean that you’re not going to see the impact of your borrowing in your credit score.

Any kind of borrowing, whether you’re taking money out of a credit card or you’re getting a mortgage for your new home, will be noted on your credit file. That means that lenders and other organizations will be able to take a look and see whether you’ve borrowed money successfully in the past, and whether you can be trusted to pay it back on time.

There are two things to keep in mind when it comes to borrowing for small, short-term loans. First of all, if you think that a small loan will mean that you have to keep borrowing more frequently, this will have a negative impact on your credit score. People who borrow constantly look as though they can’t control their money properly. Secondly, if you borrow for a short time, you need to make sure that you can pay back the loan when you’re asked to do so. If you fail to give payments on time, this could look very bad for you.

Are There Other Options to Small Loans?

Because borrowing a small amount of money from a traditional lending platform like a bank or building society generally isn’t a good idea, you might find yourself looking for alternative lending solutions. After all, small loans from traditional environments can lead to huge interest rates and APR levels.

One of the best ways to avoid taking out a loan in the first place, is to ask a friend or relative to let you borrow the money for a short amount of time. However, the truth is that most of us simply don’t have people in our lives that are capable of giving us the money we need when we need it most. If that is the situation for you, then your best bet may be to use the overdraft facility in your current account.

It’s important to check that you are permitted to use your overdraft facility before you start drawing out more money than you have. A lot of bank accounts come with a standard overdraft facility, and some will even charge a 0% interest amount on small borrowing periods, so long as you don’t exceed a particular limit. However, if your current account doesn’t have a pre-approved overdraft, then you could quickly get into some serious debt.

If you’re not sure what your bank account includes, try visiting your local branch and speaking to someone about your options in terms overdrafts. You may also be able to find more information about your account online.