Saving Money On Financial Services

With dollars in short supply in many households across the US, spending hard-earned money on financial products seems less than appealing. However, they are a necessary evil for most people but that doesn’t mean it isn’t possible to economize and cut a better deal for products such as insurance, mortgages or even cell phone contracts.

The most fundamental oversight most people make is failing to shop around for better rates. The reason many firms offer better deals for new customers is that they know once someone has signed up for their services, the vast majority will not bother to look elsewhere once it is time to renew, or the introductory deal expires. By switching insurers, lenders or service contracts, such as those on domestic appliances or cell phones, it is often possible to get a much better deal as companies will be keen to lure you away from their competitors.

However, the second secret is that you don’t have to switch to get a better deal! Confused? Most firms have the discretion to offer discounts if they need to but when it comes to renewal or a simple customer enquiry, the best reductions are usually held back. But by finding out what is on offer elsewhere in the market gives you a much better bargaining tool and may mean your own provider suddenly produces a hatful of discounts or benefits.

Doubling up on cover is another common mistake that people make and the cost of insuring items separately when they are already covered can soon rack up. Items bought with a credit card often are already insured, with home insurance also offering cover yet very often specific insurance is bought for items such as cell phones. Not all insurers extend cover to items such as cell phones or laptops, so if yours doesn’t, revert to the first tip above and find yourself a new provider.

For some reason, store cards do not have the guilt factor that a credit card does yet as a general rule, they are far worse. A typical APR for a store card is around 29.9%, far more than a typical credit card. Therefore, if you want to go shopping and really can’t wait to save up the money, opting for a credit card will save you a huge amount of money, especially if you can qualify for one of the 0% APR deals on the market at the moment.

Finally, when it comes to borrowing money, think outside the box. Banks and traditional lenders are all charging a small fortune to provide funds, making any purchase on credit even more expensive. An innovative new alternative which is quickly growing in popularity is peer to peer lending. Once you are part of a network and assigned a credit rating, individuals willing to lend you money will compete for your business and you can pick the best terms that suit your needs. Not only does this work out far cheaper than borrowing from a bank, it offers flexibility and the possibility of creating a tailor-made loan.

However, before accepting any offer made on a peer to peer network, it is a good idea to use a loans calculator to compare the amount being charged to make sure you are really getting the best deal out there. Although it made seem tedious at times, the key to getting the most out of your financial products is being prepared to take a bit of time to always check you are getting the most competitive rates in the market.