People should be financially selfish, expert claims

Fri, 25 Jan 2008

Consumers should let the government worry about any threat of a recession and concentrate on making sure their own finances are in order, one expert has said.

David Kuo, head of personal finance at fool.co.uk said that consumers "should take a leaf out the banks' book and be little bit more selfish" with their money .

He added: "If the banks do cut the interest rates and you are on a tracker rate mortgage, then I would suggest you try and pay off that mortgage at the previously higher repayment levels so that what you are effectively doing is paying off more of your capital."

Mr Kuo also suggested that people might want to consider mortgage protection insurance .

It is also important to have three or four months worth of salary in a savings account in case of an emergency, he said.

He went on to say that paying off any personal loans that an individual might have was also a good idea.

Fears that the country might be facing a recession grew this week, partly because stock markets dropped sharply at the start of the week.
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