How savvy are you when it comes to your credit? Are you a figures whizz, confidently sailing the high seas of The Bank of Englands Base rate or are you a little unsure and fearful of loans and all that money stuff? During these tumultuous times with Brexit alongside looming interest rate hikes, it’s probably a good idea to have a little read up on the fact and more important figures if you’re not familiar with how all this may affect you.
It’s always good to be in the know, especially when it comes to your finances and I’ve found a little test that can help you out. Sunny Loans have brought out a ‘Do you know your finances’ Quizz and I’ve just managed to get 5/7 on it so I suppose I’m not doing too badly. I’ll be honest though, a few were good guesses as I am terrible at maths!
It’s really important to have an idea of how credit works and how it can both positively and adversely affect your life. I still have no idea why this is not taught in schools. If you have a mortgage, for example, a small increase in interest of just a few points of a per cent can make quite a large difference on monthly and yearly outgoings.
Similarly, if you take out a loan and intend to pay it back quickly you still potentially pay an awful lot just for the months you have it out, depending on both the APR and whether there are early repayment fees (watch out for these, they are a right pain!).
After we all borrowed a bit too much before the last crash borrowing is creeping up again and that’s fine so long as it’s managed correctly and you don’t borrow beyond your means!
Remember, sometimes it may be better to save for an item, buying it once you have all the money, rather than buying it first with credit and actually paying much more for it later. I don’t know about you but I hate it when the monthly payments mount up, ravaging your bank balance before you even start the month! I feel we often have it the wrong way around these days and can be too impatient to get what we want. Remember, every item you get will be eclipsed by the need for the next soon enough so let a couple go and your bank balance will thank you for it.
Give the quiz it a go now and see how clued up you are. If you need to have a little brush up on money matters each question you get wrong comes with an explainer so if you don’t already know, you’ll learn. And if you know it all already well then, you can be smug.