New Cars

You can save thousands of pounds over lifetime of a car by selecting a model that combines a low purchase price with low financing, insurance, petrol, maintenance, and repair costs. Having selected a model, you can save hundreds of pounds by doing a comparison. Call at least four dealers for price quotes and let each know that you are calling others.

Airline Fares

You may lower price of a round trip air fare by as much as two-thirds by making certain your trip includes a Saturday evening stay over, and by purchasing ticket in advance. To make certain you have a cheap fare, even if you use a travel agent, contact all airlines that fly where you want to go and ask what lowest fare to your destination is. Be flexible, if possible. Consider using low fare carriers or alternative airports and keep an eye out for fare wars.

Mortgage Refinancing

Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep new mortgage for several years or more.

Home Purchase

Have a full survey done and use results of survey to negotiate a lower sale price.

Home Improvement

Select from among established, licensed contractors who have submitted written, fixed-price quotes for work. Do not sign any contract that requires full payment before satisfactory completion of work.

Major Appliances

There are often great price and quality differences among brands. Once you've selected a brand call at least four shops for prices of specific models. After each shop has given you a quote, ask if that's lowest price they can offer you. This comparison shopping can save you as much as £50 or more.

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Debt Amount owed to another that must be repaid.

Default Failure to repay a loan according to terms of loan.

Delinquency Failure of a borrower to make a timely payment on a loan.

Interest Fee charged for use of money.

Interest Rate The amount of interest charged on a loan, usually expressed as a percentage.

Lender Entity that provides loan funds to borrower. Depending on type of loan, lender may be a bank or other financial institution.

Loan Money borrowed from a lending institution, usually repaid with interest.

Loan Applicant Party applying to lender for a loan.

Note Binding legal document you sign when you get a loan. It lists conditions under which you're borrowing and terms under which you agree to pay back loan (also called a promissory note or a mortgage note).

Payment Periodic (usually monthly) instalments paid to a lender to be applied toward repaying your loan.

Principal Loan amount borrowed from a lender, not including interest or additional fees.

Repayment Process of paying back borrowed money.

Term Time limit within which a loan must be repaid.

Variable Interest Rate Interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.

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