Perfect time 'to spring clean personal finances'
Published On 20 April 2007
The start of the new tax year is the perfect time for consumers to 'spring clean' their finances and they could save significant sums of money by switching to more competitive deals on things like credit cards, mortgages and insurance.That's the opinion of a leading consumer finance website, find.co.uk, which said that people should now be taking the time to make sure the current financial deals and products they have are the best ones for their situation.
"Most people fail to make the most of their hard-earned cash out of ignorance or inertia," said Kate Marsden, the marketing director of find.co.uk.
"But with the wealth of easily accessible information available online, this should no longer be an excuse."
Despite recent moves by mortgage providers to reduce the number of fixed-rate deals they offer, Find said that there are still good products available for people if they look hard enough.
The site points out that Nationwide is currently offering a base rate tracker mortgage with a competitive 4.96 per cent interest rate and a discounted variable-rate mortgage for two years.
For people planning on looking for a new credit card for the year, Find recommends that they carefully consider how they plan to use the card.
Individuals with a good credit rating should consider a card with a zero per cent charge rate for an introductory period. In contrast, consumers who are worried they will struggle to meet their monthly repayments should opt for a card with a consistently low rate of interest.
Whatever card a consumer chooses, Find advised that they should avoid using the card for cash withdrawals as this is typically very expensive.
It is also an excellent time to shop around to find competitive insurance deals, whether it is for home, car or travel cover. Consumers can also find discounts by buying online and by opting for several types of insurance at the same time.
Recent research from unbiased.co.uk also suggests that people could be increasingly turning to independent financial advisors (IFA) to help them make sure their personal finance is working as efficiently as possible.
Data shows that 150,000 consumers contacted the website looking for an IFA to help them manage their money in the first three months of 2007 - eight per cent more than in the same period the year before.
While many contacted an advisor to get help with planning Isa investments, people also looked for information about mortgages, insurance and saving plans.
"Once again, the first quarter of the calendar year has proved most popular for consumers demanding independent financial advice, sparked by New Year's resolutions and a desire to take control of their finances as the end of the tax year approaches," said David Elms, the chief executive of IFA Promotion.
