You may think we’re living in difficult times. For those of you who have been unfortunate enough to lose your job as companies protect their profit margins, it actually may well be difficult times. For those of you who are still in that same job and still earning similar money though, why look at it in that light? Instead, look at it as an opportunity. Some things have dropped in price in recent times as companies and dealers try to shift stock that just doesn’t want to budge. For them it’s better to have that money in the bank than on the forecourt. It doesn’t quite have to be the same for you though and it may even be worth taking out a loan at these times. Yes, you heard correctly, taking out a loan could be the perfect way for you to boost your situation right now and there are many ways you can do it.
Sound Investments Pay Off
Starting simply, many people spend the second largest amount in their lives on a car. This car is often second hand and if you followed the route many took during these economic times, it may be older than you’d like. Well, there is sound logic in taking a loan to buy a new, or even just newer, model to replace that banger and it’s not based on aesthetics.
The biggest expenses when it comes to cars are the insurance, tax and fuel bill. With a lower value car the first is going to be lower but the other two will likely be considerably higher. Surely saving on two things is better than saving on one. If you took out a loan to pay for a new car, then you could well save enough per month on fuel and tax to pay for the monthly loan repayments. That basically means you’ve just got a car for nothing. Modern cars are extremely fuel efficient and if you’re not too worried about being sporty a hybrid car can save you a substantial amount every month compared to your older petrol car.
What’s more, at the end of the day, you’ve also ended up with something that’s aesthetically pleasing too. If you manage to get a fair price on selling your old car too, you’ll end up with money in your pocket. There are times when spending big now can save you a lot down the line.
Less Sexy, More Practical
There are ways to spend your cash on things that have no aesthetic value at all and will still end up saving you a fortune. One of the most important things you can do to your home is getting it properly insulated. If you take out a loan to insulate your home and even fit double glazing too, then you could save a substantial sum in fuel bills every month.
Insulating professional isn’t always the cheapest but the highest quality insulation will leave you with a substantially reduced fuel bill. You’d probably be amazed at how much heat escapes your house, costing you money every second. Another great way to escape the inexplicably rising gas bills is to break free from these companies entirely. Instead of using gas central heating, why not spend your loan money on installing a wood burning stove. These stoves are quite efficient nowadays and, what’s more, they cost very little to run. With gas bills over £1,000 a year, the cost of a wood burning stove can be as low as £200. The only costs are logs and a chimney sweep every now and again, the cost of which is similar to an official boiler check.
The home is somewhere massive efficiency savings can be made and with sound investment in the house, you can cut your yearly fuel bill substantially, easily paying for the loan several times over throughout the years. It will also increase the price of your home, so if you do come to sell, you’re going to get that little bit extra to spend on a new place.
While commentators often bemoan the credit culture we live in, and some blame it for the economic crisis, there are opportunities where taking a loan to pay for things now can save you in the long term and often substantially.
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