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Maximising Savings

As the credit crunch is affecting most of us, it is evident that people are struggling in the general running of their daily lives. At Debt Advice we not only try and help people with their debt problems, but we also offer advice on how to try and get the most out of your money, assets and income, including tips and hints on minimising outgoings and lowering your debts.

Maximising your savings

See our helpful hints and tips below on how to manage your monthly savings. There are many ways to reducing your expenditure. We are constantly updating this area of the website, so check back soon for more updates.

Cash ISA's

If you are fortunate enough to be able to save it is important to try and maximise your savings in the best way possible. Cash ISA's are perfect for saving your money. They are similar to a savings account only there is no tax on the savings interest. This is great as you can save over one fifth on your savings interest. You can save up to £3,600 annually in a cash ISA. Like any savings account a cash ISA is flexible.

Paying off debt with your savings

If you have debts which charge interest of any sort and you have savings, you will benefit from using the savings to pay of the debts. The very thought of this sounds heartbreaking, but if you think about it, you will actually be saving money!

eg. If you have debts on a 18% apr credit card of £1000, your interest for the year would be £180. If you saved £1000 in a savings account at 4% annually after tax, the interest your would earn would br £40... This leaves a difference of £160. If you used the £1000 in the savings account to pay off the debt, this would be the amount that you would save within the year. The thought of using your hard earned savings to just disappear on a credit card is understandably heartbreaking, but when you really think about it, it makes logical sense.

If you are struggling with your debts, or simply want to talk to someone about your problem, contact us at Debt Advice. You can phone our lo-call helpline to our debt counsellors on 0800 043 5133.

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