Top tips for borrowing cash

simongregson

You can set up a regular payment from your bank once you know your sort code and account number - it's called a standing order, or you can make a payment to the account monthly which you could vary depending on your needs, it's just like setting up any other bill payment in internet banking.

At the moment the best deals are on regular savings accounts, but often you forfeit interest if you make a withdrawal during the year, so you might be better off going for an instant access account. Check your own bank's offering, but often you will get a more competitive rate from somewhere else.

The earlier you pay in the money, the sooner you get interest. I would recommend sending the £200 at the start of the month on the day after payday, that way you will get the extra month interest and be less tempted to spend it. You can always transfer the money back if you really need it.

SiuLoong

simongregson wrote: »

You can set up a regular payment from your bank once you know your sort code and account number - it's called a standing order, or you can make a payment to the account monthly which you could vary depending on your needs, it's just like setting up any other bill payment in internet banking.

At the moment the best deals are on regular savings accounts, but often you forfeit interest if you make a withdrawal during the year, so you might be better off going for an instant access account. Check your own bank's offering, but often you will get a more competitive rate from somewhere else.

The earlier you pay in the money, the sooner you get interest. I would recommend sending the £200 at the start of the month on the day after payday, that way you will get the extra month interest and be less tempted to spend it. You can always transfer the money back if you really need it.

Agreed.. I'd look at Birmingham Midshires internet savings at 6.52%, just make sure you keep an eye on the savings section of the board so you can move it if/when they drop the rate and launch a new 'issue'....

AceCobra1

I'd say save up to start with. And of course, buy stuff online - I'd just get stuff off ebay as that is where you can get used goods cheap. I bought my 40" TV a year ago online although not through ebay as it was too new then, and I saved £500 on it. I think it was almost £2k at dixons so you can save a bundle online! I would have bought it used if I could! I am a serious bargain hunter lol. Most of my stuff is used with the exception of my PS2 and when I can justify spending £300 for a PS3!

Out of interest if you don't mind me asking, how do you survive with £12k income a year? I did a quick calculation online and it says ur takehome pay is £830 per month after tax! Assuming your rent is £250 and council tax is £50, that leaves £530 left and of course you will need food, petrol, phone, insurance (assume you got one) and of course a car - I just can't think of how you can survive with that income unless you stay with your parents. I will be earning above average salary and even I will be struggling away - but of course I do have debts which I need to pay off My rent alone is £350 + £110 council tax and my monthly income after tax is £1.75k. Not to mention the petrol and car insurance, tax and all that which is a killer

Kevina_2

AceCobra1 wrote: »

I'd say save up to start with. And of course, buy stuff online - I'd just get stuff off ebay as that is where you can get used goods cheap. I bought my 40" TV a year ago online although not through ebay as it was too new then, and I saved £500 on it. I think it was almost £2k at dixons so you can save a bundle online! I would have bought it used if I could! I am a serious bargain hunter lol. Most of my stuff is used with the exception of my PS2 and when I can justify spending £300 for a PS3!

Out of interest if you don't mind me asking, how do you survive with £12k income a year? I did a quick calculation online and it says ur takehome pay is £830 per month after tax! Assuming your rent is £250 and council tax is £50, that leaves £530 left and of course you will need food, petrol, phone, insurance (assume you got one) and of course a car - I just can't think of how you can survive with that income unless you stay with your parents. I will be earning above average salary and even I will be struggling away - but of course I do have debts which I need to pay off My rent alone is £350 + £110 council tax and my monthly income after tax is £1.75k. Not to mention the petrol and car insurance, tax and all that which is a killer

You answered it yourself, im with the parents. Just finished college and into the world of work. My first job, and want to get my own place soon. Just want to get some of the stuff over time before moving out, instead of getting a new place and having to buy all new gear. (Or living in an empty place for awhile lol). Currently a trainee project manager, so salary isn't so great at the moment - im just bedazzled by money. I guess there isnt such thing as 'free' money as credit cards portray.

Thanks for all the awesome advice tho guys. Keep it coming! My bank basically was just telling me to upgrade me account which costs like £8 a month everytime i asked them for advice. Scandalous..

Kev

NickX

Kevina wrote: »

My bank basically was just telling me to upgrade me account which costs like £8 a month everytime i asked them for advice. Scandalous..

They've been trying to get me to upgrade for years, always politely decline.

One time they upgraded me without my consent, so I had to get them to downgrade pretty sharpish :mad:

AceCobra1

What are the benifits of upgrading your account? And what type of account are you talking about here guys ?

Kevina_2

Im talking about Lloydstsb current account. They want me to upgrade to the 'select' account i think. It's basically just AA breakdown cover, card and phone theft/loss insurance aswell as a few other bonuses i'll never use.

NickX

AceCobra1 wrote: »

What are the benifits of upgrading your account? And what type of account are you talking about here guys ?

Yep adding some frills so than can charge a monthly admin fee - not worth it in my opinion.

Kevina_2

Going back to credit card option. Capital one offering 0% interest on purchases and balance transfers to october 2009.... so if i make my purchases on that, i have like 1 year to pay it off right? Also, im going to be paying it off by using my LTSB current account - does this count as a balance transfer by paying one card off with another? I don't want my wages etc going into the credit card :S

This bit on the site stumped me, it's 0% on balance transfers for 3 months but says this:

*A handling fee of 3% of your balance transfer amount will be applied to your account. The handling fee for any balances you transfer in the first 3 months of your account will be charged after your third statement and will appear on your fourth. For any subsequent balances you transfer the handling fee will be charged on one of the two statements following the transfer. The interest rates per annum are variable for purchases and balance transfers after your October 2009 statement and for cash withdrawals from the date of this Agreement. For a Capital One Platinum card all applicants must be aged 21 or over, resident in the UK and receiving an income of more than £10,000 per annum. Credit is available subject to status and conditions.

So basically there is a charge, but after the 3 months? I think balance transfers is converting debt from other cards however so shouldnt affect me. But would be nice if anyone could clear it up.

Kev

NickX

Kevina wrote: »

Going back to credit card option. Capital one offering 0% interest on purchases and balance transfers to october 2009.... so if i make my purchases on that, i have like 1 year to pay it off right? Also, im going to be paying it off by using my LTSB current account - does this count as a balance transfer by paying one card off with another?

This is correct, you have until October 2009 to settle any Purchase Transactions that you make, but you must make the Minimum Payments between now and then otherwise they are likely to penalise you by removing the 0% promotion.

If you are paying it off from your LTSB Current Account, this is not a Balance Transfer and you can pay by online banking, using your Debit Card, or by sending them a cheque.

The 3% fee is for Balance Transfers only, if you arn't doing any Balance Transfers then don't worry about this.