new-money.co.uk (2024)

FAQs

What is the best thing to do with a lump sum of money? ›

Upon receiving a lump sum, the immediate question is where to store it. A savings account is a common choice, offering a secure place to keep your money while earning some interest. There are several types of savings accounts designed to cater to different needs and goals.

Within the total, outstanding credit card debt came to £69.6 billion, an increase of 8.8% in the year to January 2024. Credit card debt averaged £2,477 per household and £1,308 per adult.

December 2022 saw record average balances on credit cards. In December 2023 that record was broken with average credit balances up 2.2% month-on-month and up 7.2% year-on-year. The average balance now stands at £1,780.

A November 2022 LendingTree survey found that just 35% of cardholders say they always pay their credit card balance in full every month, while 65% say they carry a balance at least some of the time.

Cash savings are always popular with people who want to put away a lump sum and earn interest over a long period of time. This can be a very good way to save for things without taking on bigger levels of risk. Savings accounts are much safer, but how much interest you earn will come down to your bank's interest rate.

Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.

The latest credit card statistics found the average credit card balance was £1,675 in May 2023 – an increase of 7.7% from May 2022, and a rise of nearly 14% from May 2021.

Their debt pool can contain various debts. It can include credit card debt, mortgage, financing, or even unsecured debt. As of June of 2023, the average personal debt in the UK has reached £34597 for adults and £65529 for households. As you can see, average personal debt has significantly risen by £1187 since 2022.

On average, Americans carry around $5,733 in credit card debt, according to TransUnion's latest report. But when you break it down by age, most carry more than that.

That represents a 4.6% increase in a single quarter, with cardholders shouldering thirteen-figure debt at $1.03 trillion for the first time. In short, that amounts to an average balance of $5,733 per cardholder.

How many credit cards does the average Brit have? ›

Many people ask, "how many credit cards should I have?" when working out their finances. And although the average number of credit cards held by people in the UK is 1.7, it doesn't mean that only one credit card is the right number for you.

Is a £5000 credit limit good or bad? The average credit card limit in the UK is currently between £3000 and £4000. As a result, many UK card customers would see a 5000 credit card limit as good.

Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year.

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.

If you want a safe place to park extra cash that often earns a higher yield than a traditional savings account, consider a money market account. Money market accounts are like savings accounts, but they typically pay more interest and may offer a limited number of checks and debit card transactions per month.

1. Stocks & ETFs. One of the most common ways to start investing is to build a portfolio of various stocks and exchange-traded funds (ETFs). And with $500,000, you can certainly put a lot of your money to work in the market and build a very well-rounded portfolio.

You may be thinking: What if I invest this huge sum of money at once and the market takes a downturn soon after? What happens to my returns then? If that's your mindset, dollar-cost averaging may be the strategy for you. In other words, you don't want to have any regrets and you want to minimize the downside risk.