Sadly, ignorance is not bliss when it comes to looking after your finances – it just ends up being incredibly expensive. The following financial facts are things everybody should know, but probably don’t…
1. Your credit card’s APR
The average credit card rate is 18.9%, but they do vary from 0% to over 50%. If you are managing to pay off your debt, this is not a problem – but if you aren’t, you will need to know the rate to see if you can get a better deal elsewhere.
2. How far your savings would stretch if you couldn’t work
In an ideal world, you would have enough savings for a six-month cushion, but for the average Briton it is more like 20 days. This may not be a problem if you have something in place that could kick in when you run out of money. To arrange this you will need to see how long your savings would last for.
3. What your home contents insurance actually covers
Most contents policies will cover a phone stolen during a break-in, but not if you lost it on the commute to work. Ensure any valuables you regularly remove from your house (such as your phone or laptop) are covered by another policy.
4. You can get cheaper car insurance by adding another named driver
Erik Nelson from Aviva insurance says, “Our statistics show that motorists who have another named driver on their policy make fewer claims.”
5. Your bank’s phone number
Yes, the phone numbers you need are on your card – but what happens if your card is swallowed by an ATM or your wallet gets stolen? To be able to cancel your cards quickly, be sure to have your bank’s phone number entered into your phone or written down somewhere.
If you are looking for more in-depth financial advice, why not speak to an accountant? For more information, please see our Personal Finance page.
View and comment on the original Guardian article.