Money is something you simply can’t ignore, it’s essential to put food on your table, a roof over your head and to hopefully allow you to enjoy the lifestyle you work so hard for.
However, money matters can also prove to be very stressful, so it’s important to take control of your money and hopefully this will allow you to sleep better at night, knowing everything is in order.
Financial risks are everywhere and come in many shapes and sizes, affecting nearly everyone. You should be aware of the presence of financial risks. Knowing the dangers and how to protect yourself can help reduce the chances of a negative outcome.
managing the risk in our lives and managing our personal financial risk often overlap, although there are particular risks unique to finances that need to be understood and managed.
Keep a close eye on your credit score.
Checking your credit score on a regular basis not only means you will reduce the risk of fraudulent activity on your accounts, but it will also allow you to understand what lending products such as credit cards and loans are available to you.
Don’t worry if your credit score is below average
Just because you don’t have a tip top credit score, it doesn’t mean you can’t borrow. Maybe you’re looking to finance a replacement car to help get you to work or get the kids to school – just because the big banks won’t lend to you it doesn’t mean there aren’t other options worth trying.
By making your credit card payments every month and on time will help improve your credit rating – set up reminders on your phone to ensure you don’t risk missing a payment – take control and that’s one less thing you’ll have to worry about.
Don’t automatically renew your car and home insurance
It’s the easy option just to renew your car or home insurance when the annual renewal drops through your letter box.
But this could mean you risk paying over the odds – simply tap your details into a comparison website and see if you can get a cheaper deal – you could be surprised how much you can save over a year.
Try and get a better savings interest rate
Inflation or purchasing-power risk for most people is the “risk of avoiding risk” — this means the higher the rate you can earn, the less damage to your savings account balance from inflation. Rates aren’t great at the moment, but don’t let that stop you trying to earn more on your hard-earned nest egg.
Check that your home insurance gives you the cover you need
We try and reduce our risks by taking out insurance to cover us for those unexpected events or unfortunate accidents.
Unfortunately, many people don’t check the level of cover on their policy document until it comes to making a claim – and that can be too late.
Set aside 15 minutes to check your cover – look at the maximum value for individual items such as rings and jewellery as well as goods in your shed and possessions when away from the home.
If you don’t think your cover is adequate, contact your insurer sooner rather than later – you don’t want to risk being left to fork out hundreds of pounds out of your own pocket.
Consider a debt consolidation loan
Another alternative to help you manage your finances is to consider taking out a debt consolidation loan for bad credit. This is where you take out a loan to pay off your existing credit accounts, leaving you with only one monthly repayment to manage. It’s worth keeping in mind that whilst an unsecured debt consolidation loan can help you better manage your money, they can also extend the length of time in which you repay.
This article was provided by Leah Cusick, a content specialist at Consolidation Express. A UK-based debt consolidation loan broker, the company – and its advisors – have a wealth of knowledge when it comes to debt consolidation for people that have bad credit. Get in touch if this is something you are interested in.
Helpful Resource Depending On Your Requirements