Personal finance is a complex area of our lives, these days. It wasn’t always so. You’re average agricultural worker a few hundred years ago didn’t need to know anything about mortgages, secured loans, unsecured loans, credit cards, debit cards and 1001 different sorts of investment vehicles.
Maybe he was lucky not to need to know but he had almost as much education on the subject as we do. Our education in personal finance is mainly to learn by experience but that can also mean learning by our mistakes.
Our parents and Grandparents couldn’t teach us because they had a very different approach to debt. “Neither A Lender Or A Borrower Be” was pretty much their philosophy. They believed that if you wanted something then you should save up until you had the money to pay for it. Ideas like that seem rather old fashioned now but it was wise advice then and it remains a sensible approach today even with all the financial products available.
It is not for nothing that financial companies can afford plush offices and support major sports events with their advertising. They make a lot of money by supplying you and me with financial products which means that if we can manage without their services that profit should remain with us.
We are not always that well advised by professionals since they would see their favourite product in a better light than others might and they would earn more by you taking out a new financial product rather than you starting a program of debt reduction. The law may insist that they establish what is suitable for a client but nobody can know everything about every product on the market. They don’t get commission by you reducing your debts but they get good commissions when you take out a new financial product.
We have more information available than ever before, thanks to the internet, and you can look at the different company websites to see what they offer. So, for example, you might look at the borrowing, savings accounts, mortgages and other financial products at any number of company websites. The internet makes lots of financial information available but it down to us to read and understand it before we commit to any financial deal.
So the best thing you can do is to be well informed. Educate yourself about the possible choices and some of their benefits and disadvantages of plastic payment cards and other financial products. This is exactly what we aim to do here by helping you increase your knowledge and understanding of personal finance.
Not all debts are bad but you should keep your debts to a manageable level and be prepared in case there is a change in your circumstances. A lot of people who’s lives are turned on their heads by debt do so as a result of divorce , illness or losing their job. When circumstances change suddenly all your financial plans can go with them unless you have allowed for the possibility and reduced your debt burden to something you can manage during significantly reduced financial circumstances.
Select from the menu choices at the side of the page to move through this site. Learn more about debt and the many aspects of personal finance and I hope you will keep more of YOUR money by reducing finance costs through knowledge.