CHALLENGING TIMES

Life is challenging enough for members of the armed forces and their families. The uncertainty in the financial world hardly helps and it is during these times that taking sensible steps can help you save money or make sure what you do spend is spent wisely.

Most importantly, protecting you and your family against life’s uncertainties is even more important – especially in view of the risks that forces personnel face.

Here are some simple steps to take that can provide you with greater peace of mind during these uncertain times.

SORT OUT YOUR FINANCES

Life and Critical Illness Protection
Make sure that you have suitable life and critical illness protection in place – review your cover with your local Abacus consultant and they will check and see whether there are any restrictions on the policy, if it has been arranged elsewhere. The sad statistic is that 1 in 3 people will suffer a form of cancer during their lifetime and there are many other serious illnesses that can be suffered– it is essential to consider the effect a serious illness would have on you and members of your family.

REMORTGAGE

Check to see if there are any penalties or restrictions if you want to move your mortgage, if not check to see if you can save money by remortgaging. You could be paying the lenders standard variable rate and paying more for your mortgage than you need to. Some lenders can penalise forces personnel for renting their property out – double check the rate you are being charged and speak to a “whole of market – independent broker”. Most Banks can only offer you their own deals – ask the question “do you have access to all lenders?”

CHANGE YOUR CREDIT CARDS

If you have debts on a credit card then check to see whether you can switch your debt to another card you hold. Whilst you may pay a charge, a number of credit card providers are offering zero interest for transfer balances that stays at a zero or low interest rate for a reasonable period of time. Every time you apply for credit your credit records will be searched, be selective about when and how many times you apply for credit as multiple applications can harm your credit rating.

GET MORE INTEREST ON YOUR SAVINGS

Banks are keen to have your savings and – make sure that you place your savings where your money will be protected and consider placing your savings across a number of institutions. Use your cash Isa allowance this year as you can save up to £5,100 in each tax year. You won't pay any tax on the interest earned, so if you have spare cash in your current account, move it into a best buy Isa.

TAX CREDITS AND ALLOWANCES

There are huge sums of money not claimed each year – almost £10bn worth. There are various Government websites that detail the benefits available and with the cost of living rising – making sure you claim what you are entitled to will make your finances more manageable.

Military personnel and their families suffer even greater uncertainty in their lives than people on civvy streeet. If you want help or are unsure what to do with your money, insurance or family arrangements then speak to a Consultant at Abacus.

Paul O'Mahony, Mortgage and Investment Director, AISL Ltd.

The comments above are for guidance purposes only – specific financial advice can be provided by consultants from Abacus and AISL LTD. Both companies are regulated and authorised by the FSA.