Strategies To Survive The World Money Market Chaos

The chaos in the world's money markets is certainly sobering but it's crucial not to panic. Careful financial planning is what's called for at a time like this.The Bank of England is under tremendous pressure to cut interest rates to avoid an economic slump

And anticipating a drop, the Government has cut what it pays on National Savings by as much as 0.75 per cent. Other providers have started to do the same.This could bring loan rates down as well, so borrowers should avoid locking into any fixed-rate deals at the moment

If you have no choice but to remortgage now, go for a discount or tracker deal which will mean you pay less when rates go down.Those looking for a fixed-rate loan to clear credit-card debt would do better transferring to a zero-per-cent introductory deal for the time being, especially as lenders have started cutting transfer fees. For example, Barclaycard's One Pulse card with a 14-month interest-free transfer has cut its fee from 3 to 2.5 per cent

Savers should lock in to the high fixed rates currently available before they disappear.You can get seven per cent or more on many one-year fixed-rate bonds, for example.But do keep enough in an instant access account to cope with cash emergencies

Atax-free cash Isa account is ideal for that

Source:
http://www.mirror.co.uk/