We all know how difficult January can be, particularly if we have gone a little overboard with festive spending. With news that online sales increased by 17.8% compared with the same time last year, it’s not surprising that families all over the UK are reining in their purse strings and learning a little more about frugality.
When it comes to tightening your money belt and being sensible with your cash, one of the first things you should do is retrieve any money that you have tied up in unadvisable places. Savings, premium bonds and investments are a fantastic thing to have, but what about the money that shouldn’t be anywhere other than your own pocket?
Mis sold payment protection is one of those things that can be put right. Thousands upon thousands of people are in this situation and are complaining in an effort to get their money back. If you have taken out a loan, credit card agreement or mortgage over the past several years, and you have been paying PPI fees on top of your usual repayment, you could be entitled too.
With the recent scandal reaching a climax as the Financial Services Authority gets involved, an all time high in PPI claims and complaints is being seen. The FSA has instructed banks to contact victims that have been mis-sold PPI over the years, to make them aware of the eligibility to claim – with between 4 and 12 million letters being forecast, and a total redress of £8 billion, the banks are in for their comeuppance. Over £1.9 billion has been paid out to PPI claimants, while the payouts are expected to provide a £6 billion boost to the economy this year as people who have been subject to the banks poor practice receive justice.
If you have received a letter from your bank informing you of the possibility that you have been mis-sold PPI, or you decide to have a good rummage through previous agreements to check for yourself, claiming the money back isn’t difficult. With the help of claim management companies, such as iSmart Solutions UK, you can benefit from a specialist doing the legwork for you and if there’s a refund to be had, you’ll be sure to get it.
Once you have finished recovering money that you thought was gone forever, the next recommendation would be to budget. Knowing exactly where your money goes is paramount if you are to ever understand your finances. With a clear idea of your disposable income each month, you can be safe in the knowledge that you are living within your means.
If you do have any spare cash, try and invest it. It’s all too easy to keep it in your purse, or in your current account just in case but if you don’t need it and that shopping spree can wait, save it. Interest rates aren’t exactly amazing; with a typical building society AER of 3.1%, but it’s still something.