How to make the most of your money in 2007

A short time sorting out finances could save hundreds.

Spending just a small amount of time to find the best student loan deals could save hundreds of dollars.

It's really important to shop around to make sure that you get the best deal on loan.

Tips on how to borrow wisely

If you do take advantage of the discount a store card offers, make sure you pay off balance at the first statement to avoid interest charges.

Check interest-free credit deals are completely free of interest.

A credit card charging zero per cent on new purchases is a wise way to borrow, but make sure you pay your balance before any high standard interest rates come in.

A credit card balance transfer could save money, and there are still some cards that do not charge the typical two or three per cent per transfer fee, but be careful not to be caught out by cards without a maximum transfer fee as some cards cap fees at $100 or $200.

Personal loans have some of the lowest interest rates but are best used when you want to borrow a large sum of money over longer periods, as rates are higher for smaller amounts. However, this needs to be balanced against taking longer to repay the loan which can result in paying more interest.

Watch out for payment protection insurance on credit cards and personal loans. It is unnecessary, expensive and gives limited cover.

Your home is at risk if you secure a loan against it. Use your home as security only as a last resort.

Source: myfinances.co.uk