Spend Or Save With Your Personal Finances

by Hank Coleman

How economic issues affect AmericansSpend or save? For those who fall into the 27%, a significant £322 is paid off per month, while the number of people taking out personal loans has fallen for 25 months in a row.

Nonetheless, we seem to be suffering a national post-recession hangover as far as loans go. They’re not necessarily bad news, after all. Low interest rates mean that banks are offering better rates for example on, personal loans from Santander than they have done for well over a decade.

In fact, it is these low interest rates which make it a particularly good time to take out credit. Aside from the fact that you’re having to pay less, you’re also not likely to be saving any money either as the interest rate is comfortably below the inflation rate meaning that savers are actually losing value.

Investing in a personal loan then, under certain circumstances, can be a good move. The government recently revealed that there are more than 700,000 homes in the UK which are currently unoccupied, and they present a golden opportunity for people to pick up a bargain.

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Even though the housing market is weak at the moment, longer term projections are that the market will pick up, so picking up a cheap property today and doing it up could be a great way to make a good profit tomorrow.

Further, with planning regulations facing a shake up and high unemployment in the construction sector meaning there are a lot of cheap builders around, it’s a great time to get the extension you always dreamed of.

Then there’s the fact that there’s unlikely to ever be such a cheap time to make home improvements, and with lots of help around on everything energy related you could make any money you invest go twice as far, again helping you reap the profits in the long run.

It has to be said, however, that borrowing money isn’t the best way to spend for something. But, as far as big projects go, personal loans are the best way to go (particularly if you don’t have spare capacity on your mortgage).

Make sure you draw up a budget carefully and shop around for a good deal before taking the plunge, but don’t discount the idea of borrowing money out of hand, for the right person, now is definitely the right time to invest.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 590 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 2 comments… read them below or add one }

KC @ PsychoMoney

Great point. I totally agree that now is the time to take advantage of the deals, not to be stupid with money and buy a lot of stuff, but to take advantage of the deals that will save or make you money in the end.

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UltimateSmartMoney

We all need to save especially in this down economy. We should think twice when making big purchases. Many times we really don’t need to buy a new car or new TV. Instead keep your current car for several more years or don’t upgrade TV just because you want the latest.

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