spend now save later?

Ok sounds a bit insane but with the VAT going up to 20% in January now may be the time to buy the odd big item you are thinging about.

Now what will the VAT increrase mean in actual money terms?

Well despite the increase being 2.5% this does not directly equate to an increase of 2.5p in the pound. The increase is more like 2.25p in the pound. In reality this isn't a massive increase as most things we buy food, childrens clothes etc are at 0% VAT so those prices won't change. (Beware - luxury foods eg chocolate biscuits are chared at 17.5% so these will be effected) Items which are at 5% eg domestic fuel are also exempt from this increase.

If you can get a 0% interest deal over a few years then this could also mean you can spread the payments.


Go for a cash back website and save even more - the links are further down the blog.

Also Beware about interest rates - they could soon be going back up. If you haven't been doing already and you are on a variable interest rate mortgage now is still the time to make overpayments on the capital so there is less to charge interest on when they do go back up. Those on fixed rate - if you can, you should also make overpayments. £1 overpayment now is the equivalent of about £2.50 at the end of your term.

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