Financial companies try to make money out of us. And very often they are successful. This means we need to be aware of their aims; we have to bear in mind, that to save ourselves money we must see through their sales techniques, small print and things they would rather we didn’t know. These are some guidelines to get a better deal from the financial system.

Using A Credit Card / Interest Free Overdraft as a Loan

You can use a credit card in order to borrow money at very low rates. It requires a certain amount of care; but, if you build up a balance and then transfer it to other cards, it is frequently possible to enjoy interest free credit for as much as 12 months. Normally, banks charge a 2% balance transfer fee. If you switch credit for 12 months, it is an effective interest rate of 2%.

Complain

Banks are aware of the importance of Public Relations. They don’t like sad customers. If you received a late payment penalty, or were charged for going £1 overdrawn, don’t just feel unhappy and inwardly curse the bank. Write a polite letter and explain why the penalty was unjust, not deserved, an accident caused by lost post, etc. You’d be surprised that banks frequently reply to complaints in a favourable manner.

Don’t Stay With Existing Products For Ever

This is the most significant single mistake people make. Financial companies perceive such loyal consumers as the ‘cash cows’ – they are simply easy pickings. Even if they get charged high interest rates, the banks are aware that they won’t lose their customers because they are either too lazy to change accounts or have a strange feeling of loyalty towards the company. The same applies for insurance, savings accounts and mortgages.