With the recovery of the country from the recession being the main issue on most people’s minds, it is little wonder that any good news in this area appears on every news programme and gets inches in the printed press. With the current low interest rates around, the big light at the end of the tunnel is that consumers will borrow more, spend more and give the economy the boost it needs. Apart from spending, however, there are many other ways in that low interest rates have an impact on consumers.
Borrowing is the biggest sector to gain the attention of consumers. With lower interest rates meaning lower repayments, the chance is there for people to borrow money on more favourable terms than they have had for a long time. The drop in the rates of interest where mortgages are concerned are having a huge impact on consumers as they suddenly have a bit of breathing space thanks to their monthly payments being reduced dramatically, and those who were struggling are now finding things a whole lot easier.
Those who had decided not to get a bank loan due to the high repayments can now seriously consider this option again as the monthly payments will be a lot more manageable than they were before and won’t take such a huge chunk out of the family budget.
If you have some home improvements that you have put off now is the time to get that loan and have the work done as not only will you have been able to secure a cheaper loan, there is every chance the work will be cheaper too due to businesses being able to reap the benefits of low interest rates as well and, hopefully, passing on these savings to their customers.
The same goes for financing on goods, being it domestic appliances or a car. Interest rates are at an all time low and if you aren’t able to wangle them on interest free you will still pay less than you would a year or two ago. All this is very tempting for those who have been muddling along trying to make ends meet but common sense must prevail. Don’t lend huge amounts just because you can, as even though the payments are lower they still have to be paid back.
Manage your finances sensibly while times are good, and you will reap the benefits in a much more comfortable lifestyle. More disposable income allows you the luxury of not counting every penny and being able to treat yourself to those little luxuries in life that we all deserve from time to time. Just little things like being able to go for a drink, or get a takeaway without counting every penny makes a real difference to your general sense of wellbeing.
When you sit and think about, the domino effect of lower interest rates are far further reaching than you would ever think possible. Almost every aspect of your life can be affected by it and as long as it’s a positive effect, we should enjoy it while it lasts.