Account wiped out after Christmas? Save now! Good this way! But consumer advocates say what’s even more important is getting your finances back on track. Before coal is set aside for a car, home or retirement provision in 2024, important prerequisites should be created. Ralf Scherfling from the North Rhine-Westphalia Consumer Center says what is more important than saving:
1. Check insurance coverage
Check whether you have taken out all the important insurance policies that will protect you from financial ruin in the event of an emergency. “If, for example, you have not yet taken out private liability insurance, you should urgently take care of such a policy,” says Scherfling. It steps in if you cause damage to third parties due to carelessness or a mistake in everyday life – and this can run into the millions.
Subscribe to the Sparfochs newsletter now – click HERE
Also important: occupational disability insurance. Anyone who can only maintain their own standard of living through employment should definitely secure their workforce. The policy pays out if it is likely that you will no longer be able to carry out your last job in the long term, as it was without any health impairment.
also read
2. Get out of the overdraft
Account overdrawn? One of the most expensive loans that consumers can take out is the overdraft facility. A study by the Hamburg consumer advice center shows that the average interest rate for the overdraft facility in October was around twelve percent. An interest rate that savers will never achieve with conventional savings products. That’s why you should always balance your account first before you start saving – that’s much more beneficial.
also read
3. Pay off consumer loans
The same applies to consumer loans. Anyone who has financed a car, clothes or other luxury in this way should first pay off the debt. As a rule, the interest rates for installment loans are significantly below the level of overdraft facilities, but still significantly higher than those offered by classic savings products.
2023-12-26 18:37:45
#Consumer #advocates #advise #important #saving
