It makes sense to spend with current savings accounts rates

If you are a keen enthusiast of national macroeconomic objectives, you'll be aware that countries such as Britain have continued to keep interest rates at an all-time low of 0.5 per cent for the past two-and-a-half years. The main aim of this was to reduce the impact of inflation in the economy, with many families losing too much disposable income because of price rises in food and other goods.

Understandably, economic figures can be a little dull and therefore difficult to digest. Indeed, it will simply wash over most of us. But what does it mean for the typical consumer on the street? Well, more than you might think.

All of us should keep a keen eye on interest rates because of how they have a massive impact on our financial wellbeing. When the prosperous economic climate in the last decade saw interest rates of 5.75 per cent in countries such as the UK, the banks were falling over one another in the fight to give us the best savings accounts. It made sense to be extremely careful with money - after all, savings accounts rates would offer very attractive returns over a period of three years if you were lucky enough to have a fixed APR in 2006.

As you can see, the better the country's interest rate, the larger the returns on the cash we save.

Savings accounts can be regarded as somewhat disappointing in today's market. In many cases, the interest you will earn is negligible. So, if there's no incentive to save, why not kick start the economy again by making more purchases? Or, if you're a homeowner who used to find the interest on your mortgage daunting, how about making as many repayments as possible while the cost of borrowing is low?

You will also pay far less for car loans and payday loans now than you would have done a few years ago. Because of this, securing a loan to your vehicle is a sensible way to get the cash you've always wanted for a holiday, a new kitchen or to fund your child's education while the returns from savings for children continue to disappoint.

If you have consistent levels of income, and you are prepared to invest in Payment Protection Insurance willingly (also known as PPI), now is the time to spend instead of save.

Here's the one thing that stops us from signing the dotted line for an extravagant car loan tomorrow: credit checks. Following on from the international sub-prime mortgage crisis, financial institutions including car loan companies are far more careful when selecting debtors. This is to prevent the build up of toxic assets and to minimise the risk of a person losing their property to repossession because they never had the income to repay the loan in the first instance.

If you're keen to start spending, you'll need to have a good read of your credit report, exploring the financial history that you have built to date. After every small loan acquired, bank accounts opened and mortgages signed in your name, an addition will be made to your own personal document, allowing future lenders to see whether you pay the amount owed per month punctually and in full. Thankfully, there isn't an appetite for investing in those with bad credit anymore, but your ability to grab the best deals in the form of low interest rates on car loans will depend on your reputation.

If you own your car outright, and you want to release some of the cash value from the vehicle, logbook loan companies allow you to borrow some money that's secured against the vehicle you own. However, this does mean that your motor could be repossessed if you don't keep up with the repayments.

Here's how this finance option stands head and shoulders over other loan alternatives:

• Better interest than on unsecured loans, without the risk of tying credit to your home.
• Application can be straightforward, and some companies guarantee a response to your request in just 60 minutes.
• You can continue to use the car just as normal once the logbook loan has been signed.
• Many companies offer communication in branch, over the telephone and by email, allowing you to get in touch if there are any problems with your next payment.
• Schedules and timetabling for when you will repay the loan in increments can be determined with a logbook loan representative. This way, the credit you withdraw is flexible around you. Of course, do bear in mind that longer periods of interest will result in the cost of borrowing increasing significantly.

Compare providers today. Don't forget that there are many excellent comparison websites that represent dozens of different logbook loan companies, offering a brokerage service with recommendations of which service will be best for you given your circumstances. Scouring the market is important, as some creditors offer greater loan amounts than others.

Will you make the most of the current economic climate?