If you’ve been thinking about re-financing, there are still some good deals out there and there’s no sense in procrastinating any longer. Contact me for some excellent resources for re-financing.

What if a new house isn’t in your plans for a couple of years? When rates go up, it often cools off real estate prices and balances out higher rates. Continue to save money in highest interest short-term accounts you can find (no stocks or other long-term investments). Rates will probably not take huge leaps in short term. If you have an adjustable rate (home or home equity or car loans), you will see higher payments so call your lender to find out what new payment is “likely” to be. They’ll probably put all kinds of disclaimers out about not really knowing, but try to get a worst case scenario and then start pretending you really do have that new payment. Put extra into a special savings account so you’ll have a “slush” fund to cover if you run short one month. At same time you are building up a cushion for future, you’ll have a good idea of whether or not you can handle new payment. If not, now’s time to start looking at other alternatives like cutting back, increasing income or even refinancing. Remember, if you refinance your existing term to a new 30 year term, you’ll have lower payments, but you’ll pay a lot more for your house because of additional interest.

Call you credit card companies and see if they are willing to lower your rates (not all are). Look for good, permanent credit card interest rates that you can transfer higher rate balances to. For example, if most of your cards are 18% or higher, find a good 12% card or lower and transfer as much as you can to that. Playing 0% credit card shuffle is a dangerous game and can hurt your credit score.

Reduce credit card debt now! Stop using your cards and pay more than minimums. If you pay off one card, take that payment and put it on another card.

If you receive a pay increase, put it on cards. The sooner cards are paid off, more flexibility you’ll have!

All in all, we’re quite likely to enjoy reasonable interest rates for some time to come. However, make preparations now and you’ll be able to handle whatever comes your way.

2. How open is retailer about cost of their insurance? Is cost of warranty displayed alongside goods?

3. Does warranty include a 1-2 month money-back guarantee if you don't make a claim in that period? And after this, would you be entitled to a pro rata refund?

4. Is there an information booklet explaining your statutory rights? This should state that you have right to cancel and that warranties are available elsewhere.

On that last point, did you know that warranties bought in-store can be up to 40% more expensive than those available from other insurers and outlets?

And if you're a credit card holder, many cards now cover your goods for a year beyond retailer's offer.

Mmm...suddenly that 'insurance' isn't looking so great a deal after all.

So, next time, don't feel pushed into an immediate decision.

One final tip: If you have cash to pay, then why not make sales assistant work for sale? You'll often find their commission has already been 'priced in' to item they're trying to sell you.

Haggling is common practice in many countries, so don't feel embarrassed! You'll find many stores prepared to do so to win business - particularly if surrounded by a lot of competitors!

So, There you have it...the next time you go shopping for that new washing machine, try shopping around a little first. That way, you can stop your 'insurance' becoming a costly luxury.

© 2004 Colin Mc Caig

RESOURCE BOX: ============================================================ Want to know how some beat debt trap and master their money with ease? You can find out by grabbing Colin's 'Debt-Busting Secrets' mini-course. Send a blank email to: =======>>>> mailto:colind@demandmail.com ============================================================