Consumers advised to focus on debts for New Year

Industry experts are advising consumers to focus on their debt issues once the New Year comes around in order to avoid having to spend another year struggling with their finances, particularly given that the economy and job situation is still very challenging and fragile. Many people will have been struggling with debt for some time, whereas others may accrue temporary debt over the Christmas period. Either way, experts are suggesting that they tackle their debt problems head on once 2011 hits.

For many people in debt it is all too easy to bury their heads in the sand and try and forget about their debts until they spiral out of control to the extent that action has to be taken either by the borrower or their creditors. Many people are using, or have already used, their credit cards to fund their purchases over the festive season this year, and this could lead to spiralling debt levels for many people.

Tackling debt can be difficult but officials believe that by kicking the New Year off in the way that they mean to go on consumers are able to tackle their debt issues more effectively by streamlining their finances and getting things into order. Some are advising consumers to go through their budget with a fine toothcomb and go through their income and outgoings to see where they can make cutbacks to save on the amount that they pay out each month and avoid further debt.

One official said: “Another option for consumers when the New Year comes around is to consider taking out a consolidation loan and wrapping all of their various debts into one lower interest one, as this could save them money and the hassle of dealing with different creditors.”

Tags: Business Finance, job, time, month, debt consolidation, festive season, job situation, action

Staying in and saving money

For those people that have become used to going out to socialise, which can of course work out to be quite expensive, the current financial climate will be have come as a real shock, as it may have forced them to cut back on their spending and start spending more time indoors.

With many people still fearful about their job security and about spending money unnecessarily spending time in the house has become increasing common even amongst those that once went out on a regular basis.

However, whilst it may seem that being stuck in the house will equate to a boring, uninspiring evening this is not necessarily the case, and you can actually enjoy a very cheap night in whilst having plenty of fun and entertainment.

More and more people are now staying in rather than heading off on an expensive night out, and this has been proven through figures such as those released by takeaway firms, where profits have been soaring as a result of people ordering a takeaway rather than going out for meals.

A rising number of people are now starting to realise the benefits of entertaining at home or spending nights in rather than out on the town, and it doesn’t have to involve being stuck in front of the box watching programmes that you don’t even like!

In fact entertaining at home has become so popular that industry officials have come up with the phrase ‘in-tertaining’.

One industry official said: ‘The recession has made people far savvier when it comes to saving money, and millions of us have worked out that in-tertaining is a great way to cut back without missing out. So much so that a whopping 57% of our monthly, paid for entertainment is now being consumed in our homes.’

If you enjoy going out to dine with friends then the perfect solution is to dine in your own home yet still enjoy the same company. You could look at creating a great dish for your friends and bring in a few bottles to go with the food, which will work out far cheaper than going out for a meal. Alternatively you can order a takeaway if you want something more casual, which again should work out much cheaper.

You could even have a ‘bring a bottle’ type evening, where each of your friends brings a dish and a bottle, and you can enjoy a buffet style evening with evening mucking in with the cost and cooking.

Going to the pictures can prove quite expensive if there is a group of you going, so why not look at renting a DVD, getting some popcorn in, and having a fun night in front of the box without the constant dirty looks and ’shusshes’ that you might get at the cinema if you so much as sneeze! Again, this is a great way to save money whilst enjoying entertainment in a casual and fun setting.

In fact, many people are already doing this, with a DVD rental specialist stating: ‘Since the start of the recession, our membership has more than doubled in size as people look to save that extra bit of cash while still enjoying themselves. Staying in has definitely become the new going out. Our members are renting more titles than before, they’re buying more DVDs from our shop and now they’re even accessing films and TV online through our new digital service – more ways than ever for them to enjoy an entertaining night in.’

Even romance doesn’t have to cost a fortune, as you can enjoy a delicious home cooked meal – and for those that aren’t too good at cooking many supermarkets now offer meal deals where you can get pre-made meals that simply need to be warmed along with sumptuous deserts and wine, and with the right lighting and music you can recreate a wonderful romantic night in with the added benefit of a private setting.

Tags: money tips, job, delicious home, pre-made meals, spending money

Repossession schemes will only help small numbers

In a recent report it has been claimed that initiatives launched to try and minimise on repossessions will only help a small number of people. Read more

Tags: shadow, homeowners, policy studies, personal finance, job, government, Impact, repossession scheme

More needs to be done to aid the financial sector

According to recent reports city analysts have said that despite the various measures and the billions of pounds that the government has invested in trying to assist the struggling financial sector in the UK the steps being taken do not go far enough and more needs to be done to aid the struggling sector. Read more

Tags: job, financial sector, bank of england, bank rescue, establishment, uk, resolution

Mortgage finance working group launched to advise government

A group of industry experts has been established to provide advice to the government on how to improve the function of mortgage finance markets.

The group has been formed in response to the complex issues raised about the functioning of the mortgage-backed securities markets due to the ongoing crisis affecting global financial markets.

Its first job will be to assess the current state of the mortgage finance market.

Led by former HBOS chief executive Sir James Crosby, the working group will draw on the experience of lenders, investors the Treasury, the Bank of England and the Financial Services Authority.

Chancellor Alistair Darling said that the group’s “work will be an important contribution to stabilising the cost and supply of UK mortgages”.

Earlier this week, the news editor of moneywise.co.uk said that although there is still demand for new mortgages at the moment, it is difficult to tell whether it will last.

Rebecca Atkinson said that First Direct’s decision to stop selling mortgages to new customers shows that mortgage lenders are suffering from liquidity problems and also trying to attract good-quality borrowers rather than a high quantity of customers.

Tags: First Direct decision, bank of england, government, hbos, liquidity, job, mortgage, good-quality borrowers

Custom Built Car Insurance

When you phone your motor insurance company to insure your car you tell them you drive a standard 1.8 Mitsubishi Lancer. True enough. However, what you have failed to tell them is that you have made one or two minor modifications to your car so that it now has alloy wheels, a spoiler and flashy strips down the side. Later you need to make a claim on your motor insurance and the car insurance company sends an insurance adjuster around to see your car. Guess what? In all likelihood the insurance adjuster is going to inform your car insurance company to invalidate your policy. The reason – you have a custom built car! Read more

Tags: job, insurance policy, custom cars, minor modifications, miles a-year driver