Lump sums reduce school fee misery

Wednesday 28 January 2009

Article by Mozo

Saving up cash and paying off school fees in one lump sum can leave finances on altogether firmer footing in the long run, one money expert reckons.

Fiona Lippey, founder of Simple Savings, has told Nine MSN that while it is tempting to pay off the school fees in monthly direct debits, schools sometimes offer discounts for those paying upfront.

“Ring them up and explain you are trying to work out the best way to pay your fees and ask whether there are any discounts for paying early or paying by direct debit,” she suggests.

People may wish to take a bit of cash out of their savings account if they do offer discounts to avoid running into trouble with other household bills after making the lump sum payment.

Meanwhile, other top tips to get kids back to school without breaking the bank include checking out the second-hand pool before forking out on “upsized” uniforms to see if any of the bigger kids have grown out of their clothes too.

Elsewhere, resident MSN money expert Andrew Willink has advised that credit card rates tend to drop in January, presenting a golden opportunity to grab a cheap credit card deal.ADNFCR-1761-ID-18996991-ADNFCR

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