Making your money go further over the festive season

In years gone by Christmas usually referred to just one day, which was of course Christmas day, and whilst preparations for the big day were made in the run up to Christmas it was not like it is today, where the two weeks leading up to Christmas were filled with festive events and parties and the week between Christmas and New Year was also filled with events and festivities that often usually cost money. Read more

Tags: interest rates, finances, Credit Cards, festive budget, trimmings

Streamline your finances for the year to come

We have all had a gruelling year when it comes to our finances this year, and with the year starting with the continuing global credit crunch and ending with the recession things still look very bleak for many people, even though the base interest rate has fallen significantly. Many people have struggled to make ends meet in terms of finances this year, and many have become aware of the importance to try and cut back on outgoings. Read more

Tags: interest debts, base interest rate, electricity, finances, rate, personal finances, alternative, New Year's Day

Figures show increase in bankrupt pensioners

Recent figures have shown that the number of pensioners in the UK that are going bankrupt has doubled in the space of five years.

There are now twice as many pensioners declaring themselves bankrupt as there were five years ago according to the figures. In the past year around 7% of bankruptcies were made up of pensioners, but in 2002 the number of pensioners that made up total bankruptcy figures equated to just 2% according to records.

Some experts have stated that it is increased life expectancy that has had an impact on the finances and savings of pensioners, tipping many over the financial edge and resulting in bankruptcy. This, state experts, has been made worse by the rises in the cost of living, fuel, and other areas, which has put further strain on pensioners’ finances. The research also shows that there appear to be more pensioners going bankrupt in rural areas compared to urban areas.

One insolvency expert stated: “More and more pensioners are going bankrupt as they struggle to repay debts when their pension is their sole source of income. Although attitudes towards bankruptcy have changed dramatically since the days of debtors’ prisons, the older generation still feel the stigma of bankruptcy and are reluctant to ask for help until it’s too late.”

Around 1250 bankrupts around the UK took part in the research. It is thought that the reason for the higher concentration of bankrupt pensioners in rural areas is the result of fewer work opportunities and higher transportation costs.

Some industry officials state that the cost of food – on which many pensioners spend a large proportion of their income – is contributing to the financial strain faced by many in this age group. Food price inflation rose from 2.5%in July to 2.8% in August according to figures.

Tom Smith
3rd November 2007

Tags: age, money, longer, finances, debt, pensioners, life

UK’s south east is credit card central

The south east of Britain has been found to have the greatest number of credit card holders per capita than any other region.

A recent survey by the UK payments association, APACS, has revealed the payment habits of people and how they vary from region to region.

Results revealed that 75 per cent of adults in the south east have credit cards compared with the national total of 67 per cent.

Furthermore, it found, people in the north east are less likely to regularly use cheques than anywhere else while in the North West, people make more regular visits to cash machines, withdrawing £5,355 more than anywhere else in the UK.

Sandra Quinn, director of communications at APACS, said: “Different parts of Britain have long been associated with certain payment stereotypes – whether those are about being overly careful with spending or flash with the cash – and these guides – drawn from the UK’s ongoing largest study of payments behaviour – offer a revealing and interesting look behind the statistics.”

She added that although the majority of people are happy with the payment methods available, managing finances can be made easier and more convenient by “taking advantage” of the various options.

The regional comparisons were based on a survey of 4046 adults representing the most comprehensive ongoing survey of its kind.

Tags: managing finances, UK payments association, director, payment, region, finances, Standing order, Association

Smokers lose money on insurance premiums

Most smokers realize that by kicking the habit they could save a fortune each year, with many smokers spending thousands of pounds each year on cigarettes.

However, many forget that in addition to saving money on the cost of cigarettes, which can then be used for anything from luxury holidays to investments for the future, they can also save money in areas, one of which is insurance.

There are many different types of insurance cover, and the main ones on which smokers can save money include medical or health insurance cover, life insurance cover, and home insurance cover.

Smokers are classed as an increased risk when it comes to these types of insurance cover, and as a result of this increased risk most smokers pay considerably larger premiums than non-smokers, which adds to the overall cost of being a smoker.

When it comes to medical and health insurance, smokers are more likely to make a claim because of the health risks and illnesses associated with smoking, and therefore have to pay higher premiums. With life insurance, smokers are more likely to contract a terminal illness such as cancer due to smoking, and again as a result of this the cost of premiums are pushed up.

And in terms of home insurance, smokers are classed as an increased risk when it comes to fires in the home, and this also pushes up the cost of insurance premiums.

It is also thought that the number of people in the UK smoking in their homes, and therefore being classed as an increased fire risk, will increase, as the smoking ban in public places has now come into force in the UK.

Although many smokers now aim to give up altogether, which could boost their finances in many areas, many others will resort to staying in and smoking in the home rather than going out to pubs and clubs where they can no longer smoke.

Tom Smith
5th July 2007

Tags: more, clubs, public, pubs, home, risk, house, smoking, increased, finances

An exercise regime for your finances

Many of us could do with giving our finances a good workout, just like we do when trying to get our bodies into shape.

The British Bankers’ Association (BBA) says that we can keep our finances looking fit just as we can begin living a healthier lifestyle.

We are being advised to review our finances and speak to our banks and financial advisors, much like how you might consult a gym for a fitness check.

Although many people find banking to be daunting and something of a chore, the BBA points out that getting your finances in order means you are better prepared for any future changes to your circumstances.

“The British Bankers’ Association is recommending customers take a little time to plan their financial needs just as you would consider your physical health,” said Angela Knight, chief executive of the BBA.

“That way you can ensure your finances are in good shape and you have the right banking and borrowing services in place.

“You can go to your bank and talk through your specific needs just as you would go to a personal trainer and talk through an exercise routine. It is vital that you set aside some time every month to review your bank statement,” she added.

The BBA has compiled a ‘Fit for Finance’ checklist and says that anyone considering visiting a financial advisor should run through the list and get a good idea of how they are doing.

The list asks: Do you pay your credit card balance in full every month? What plan do you have in place to repay a debt? And are you always struggling to cover debt repayments?

Tags: debt repayments, healthier lifestyle, regime, card, circumstances, finances, physical health, bank

Brits worried about finances

The majority of us are more concerned about banking and our current financial situation than other threats to our security.

According to research by Abbey, the perils of global warming and international terrorism worry us less than managing our money.

Nearly one in four of us identify concerns about cash as the biggest threat to our quality of life, with only four per cent of us highlighting the environment as a pressing issue.

The Abbey Lifestyle Report looks at trends and concerns across the UK and this year’s report found that the majority of Brits are optimistic about the year ahead.

“People are generally positive about their quality of life in 2007 and the much-publicised issues around crime and the environment don’t seem to be denting this optimism,” said Sue Hayes from Abbey.

“The real concern for people is money and we are hoping that this is a signal that people are planning to get more engaged with their finances in 2007.”

Students were found to be the most optimistic demographic in the country, with 49 per cent believing that 2007 will herald an improvement to their quality of life.

This is in contrast to pensioners, with only 21 per cent holding the same belief.

If money worries are getting you down the best thing to do is face up to your problems and take control of your finances.

Tags: majority, perils, finances, Terrorism, worry, Opinion poll, improvement, international terrorism

Financial habits are written in the stars

The time of year in which you were born may be affecting your payment habits and banking behaviour.

Research carried out by the UK payments association (Apacs) takes a light-hearted look at UK consumers’ payment habits according to their star sign.

The survey, which was completed by 2,000 people, found that Capricorns are the most financially astute, but they are let down when it comes to paying their credit card bills.

Scorpios are said to be the sign of the debit card, with the majority showing a strong preference for using this form of payment. In addition, people of this star sign are particularly financially savvy.

Those who fall under the sign of Libra are said to be uninterested in their finances and often fail to pay attention to detail, as well as being slow to check their statements.

“The guide takes a humorous astrological look at our payment habits. However there is a serious point to be made,” said Sandra Quinn, director of communications at Apacs.

“We all need to be conscious of how we are managing our finances – it pays to make sure you are doing it well and there is no better time than at the start of a new year to review things.

Ms Quinn says everyone should check their statements “promptly and thoroughly”, like Virgos, shred their documents when discarding them, unlike Taureans, and have a different pin number for every card owned, something not done by most Leos.

Tags: card, finances, payment, Payment systems, Credit card, UK payments association, Libra

Switching Finances Can Save You Thousands

Financial experts have concluded that on average Brits could enjoy saving a whopping four thousand pounds a year simply by switching financial products such as loans, savings accounts, credit cards, and mortgages to better value products than their existing ones. The figures are based upon those currently putting up with poor deals on such financial products, and the financial difference it would make if they were to switch to some of the best deals around for the same type of products.

According to figures released by Moneyextra, the average saving that people in the UK can make each year by making this switch equates to £3976.02. According to the data, three months ago making the same type of switch would have saved Brits £167.24 less than it would now, so in the space of three short months consumers in the UK can save even more each year simply by ensuring that they have the best value financial products.

Robin Amlot of Moneyextra stated: “At this time of year, when consumers’ minds are turning to spending perhaps not wisely but all too well for Christmas, it’s more important than ever to make sure we’re getting value for money for our money. Shopping around for just the right present for the person you love is second nature. Shopping around for just the right financial product or service for yourself should be too.”

According to Moneyextra, the bulk of the savings each year can be made through finding a good value mortgage, and shopping around for the best deals. Finding great deals on credit cards and laons can also net substantial savings each year. And looking out for higher interest savings accounts could help you to clock up more in the way of savings. A combination of all of these changes therefore adds up to a considerable annual saving.

Tags: shop, compare, deals, offers, around, uk, Mortgages, finances