What to do with your money in the recession

The economy seems to be improving slightly, but we know there’s plenty of you still really struggling..

What we all really want to know is: how will the economy affect me? A lot will depend on your personal circumstances: the security of your job, your levels of debt or savings, whether you own a property… But whatever your situation, MoneyMagpie can show you how to navigate the choppy financial waters that lie ahead.

Your immediate priorities should be to examine your mortgage, credit card and savings arrangements. For most people, these are the three most important aspects of their finances. What many don’t realise is that reviewing them is an easy way to make significant savings for relatively little effort.


Review your mortgage

With interest rates so low at the moment, savers are losing out – but borrowers are reaping the rewards. So if you’ve got a fair amount of savings tucked away in this type of financial climate, it’s worth considering taking out an offset mortgage.

Why is an offset good for those with savings?

In basic terms, offset mortgages are where the balance of the mortgage is reduced by the amount of money in your savings or current account. For example, if your mortgage is £150,000 and you have savings of £10,000, your mortgage balance will be measured as being £140,000 (and you will only pay interest on that amount).

What’s more, as the interest on your savings is being offset, you are to all intents and purposes not paying tax on…

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