Economy experts have already made their predictions. We are already seeing a decline in the main stock market indexes, a stumbling Chinese Economy, a $30 oil price, and the list goes on. According to Peter Schiff, one of the few economists that predicted the 2008-2009 crisis, we are headed towards another one – which could be even greater than the one just mentioned. Needless to say, it is better to be prepared before it arrives!
Oil has plummeted to $30 a barrel and it is expected to go down to $10 a barrel. This is an alarming sign taking into account that a year and a half ago it was valued at $100 a barrel. Those people who own stock of oil companies will see lower dividends coming into their wallets. However, there is a good side to it also – especially for consumers. When oil prices are this low, airplane flights get low as well! It is time to start planning for vacations when the oil price drops to $10. You can choose either a national or an international destination since gas will get even lower and it’s estimated to fall under 90 pennies a litre. On top of that, you can benefit from lower energy bills also. Companies are offering new energy deals that will allow you to save hundreds of pounds per year.
The stock market has already started to fall and investors are nervous. Andrew Roberts, analyst of the Royal Bank of Scotland says they should be. Other bearish economists share his opinion as well. The advice experts are now giving is to sell everything before your money disappears into thin air. This trend is expected to last at least 1-2 years. However, if you are investing for the long term, there is no need to be so tragic about the possible 2016 coming crisis.
The U.S. has already witnessed an increase in their interest rates for the first time in ten years. When that happens, the UK usually follows with the same move. While the Bank of England has recently stated that they will not raise them for the time being, more likely than not, they will raise them sometime in the future. What this means is that loans with an SVR (standard variable rate) will see their monthly instalments escalating soon. This is not good. Thus, peopl should pay any debt that has an SVR to protect their capital. If you are looking to get into a mortgage or a loan, it is time to get one if its rate is fixed. Right now, rates are around 3 percent. Mortgage rates have recently fallen due to many factors including the relative stability of the British economy, price increases in real estate, and the statement delaying the raising of interest rates. This is the time to get a mortgage and to secure the purchase of your home.
Right now, the average UK citizen has too much debt. According to statistics, the amount of unsecured debt including loans and credit cards is 26.5% of the total household income. If we take into account that interest rates will rise in the near future, you should try to lower your debt in the next few months. If you have a balance in more than one credit card, you should take advantage of a balance transfer deal. With such a fierce competition, we now have several options to choose from. A balance transfer deal will save you hundreds of pounds in interest payments for a small one-time payment. The most popular 0% balance transfer credit cards are:
If you are looking for long 0 percent introductory periods
You get 0% interest rate for 40 months. This is the longer 0 percent introductory period in the market today. The fee is 2.95% of the amount transferred.
- Tesco Bank
For a fee of 2.7%, you get a 0% interest rate credit card for a 38 month period.
If you are looking for very low initial fees
- Virgin Money
There are two options. The first one gives you 32 months for a 0.99% fee. The other one gives you 26 months for a low fee of 0.69%
It gives you 28 months without interest for a 0.7% fee.
Even better than a low fee is no initial fee at all
23 months with a monthly credit card fee of 3 pounds.
- Tesco Bank
21 months with no fees. Plus, you can earn points when purchasing with the card.
There you go. When everybody starts screaming, “the sky is falling, the sky is falling”, you can remain calm. The economy is uncertain and we don’t claim that there will be an economic collapse with 100% certainty. However, there is no smoke without a fire.