Beat the VAT rise and pick up your big ticket items now

As outlined in the emergency budget earlier this year, which was delivered by the Chancellor of the Exchequer, George Osborne, VAT is set to increase from the start of next year, rising from 17.5 percent to 20 percent, as the coalition government strives to make more money to clear the huge public deficit.

This will come as bad news for the many cash strapped consumers who are already struggling to make ends meet, because it means that price on many things will soar even further. This is why many people are now rushing to make their purchases in the few weeks that they have left prior to the rate of VAT increasing.

The items that many people are rushing to buy include big ticket items such as electrical items like televisions, fridge freezers, washing machines, and the like. Many are also rushing to book holidays before the prices go up, as the effect of even a small 2.5 percent increase on the cost of more expensive items can make a big difference.

Bearing in mind that VAT is set to increase by 2.5 percent at the start of the year it is a good idea to determine whether you are going to be making any big ticket purchases in the early part of next year, and then bringing the purchase forward if possible. This could save you the cost of the additional 2.5 percent, which on higher priced items can make a difference.

If you time it right you could get a bargain on your big ticket items. Directly after Christmas the price of many items is slashed by retailers, and the VAT increase is not set to come in until the start of January. This means that if you purchase your items between Christmas and New Yearn you could benefit from the lower prices from the sale, and you can avoid the VAT hike, which means that you could get a bargain.

In order to make the biggest savings plan you sales shopping, and try and work out which retailers are holding sales between Christmas and New Year so that you can plan your sales shopping accordingly. You should also consider planning ahead, and if you are considering anything such as booking a holiday make the booking early to avoid the VAT increase so that you pay less for your holiday.

Tags: New Year's Day, increase, time, additional 2.5 percent, chancellor of the exchequer, consumers, budget

Save yourself some money this Christmas

Whilst Christmas is now only around the corner there are still plenty of people that simply haven’t had the time or spare cash to get their Christmas shopping done as early as they may have liked to have done it. Read more

Tags: Retailing, christmas, Gift economy, Credit card, Loyalty program, New Year's Day, shopping, online shopping, Pricing

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

Fall in house price tempts buyers

One in ten people who intend to buy a house have brought their plans forward due to the recent price falls in the market, according to new research.

A survey by personal finance information providers Fool.co.uk has shown that 11 per cent of potential home buyers have accelerated their plans.

Out of those respondents, 38 per cent expect to move this year and one in three believe they will change their property in 2009.

David Kuo, Head of Personal Finance at Fool.co.uk, said: “The long-overdue correction in the property market will allow many people who have been waiting to move house to finally realize their dream.”

However he added that many buyers often approach the financial thinking behind purchasing a home in the wrong order.

“Quite often people will ask how much they can borrow when they want to buy a property. But that is altogether the wrong question. Instead, they should ask themselves how much they can afford to repay,” he said.

Fool.co.uk revealed that over a third of Brits spent New Year in their homes to save money.

Tags: Head of Personal Finance, fool, New Year's Day, New Year, personal finance information, order, property, correction

Kids earn millions from odd jobs

Odd jobs done by kids are making them a staggering £700 million a year, new figures claim.

Chores, errands and favours are proving a boom area for young people, with one in four 11 to 18-year-olds benefiting from payment for helping out.

The survey has been carried out by Abbey Banking, and while it was found that more girls are in on the act than boys (30 per cent compared to 24 per cent), boys are making more out of it on average.

As in the wider world of work, boys seem to be at a distinct advantage, earning £55 per month compared to girls’ £38.

Head of Abbey Banking Steve Shore said: “The research shows that British kids are making the most of earning opportunities like New Year’s Eve and as a result, the ‘odd job’ economy is thriving.

“As well as giving kids a boost to their pocket money, this is a great way for parents to show their children the value of money and teach valuable financial lessons.”

Babysitting was by a long stretch the most common form of paid work, with car washing in a distant second place.

Tags: New Year's Day, payment, car washing, Grupo Santander, jobs for kids, car, new figures, British kids

Mortgage tightening to ease next year

The tightening of the mortgage market will ease somewhat going into the new year, according to the Council of Mortgage Lenders.

Sarah Robson, a spokesperson for the trade association, explained that interest rate falls would take some pressure off the market making it less tricky for borrowers to obtain adverse credit mortgages.

Interest rates are predicted to fall to five per cent by the middle of next year, offering some hope to borrowers

Ms Robson explained that homeowners with poor credit history may be able to improve their status.

She said: “If they did have a good credit history for five years straight, that would be taken into consideration – but their previous record would still be there.”

The next decision on the Bank of England base rate, currently at 5.75 per cent, will take place on December 6th this year.

Yesterday, the BBC report that a range of its adverse credit mortgages will be withdrawn today, due to market tightening.

Tags: interest rate, council of mortgage lenders, england, adverse credit mortgages.Interest, economics, record, adverse credit mortgages, New Year's Day

December saw loans increase

December saw a “substantial increase” in the number of people applying for a loan.

That is according to Elephant Loans & Mortgages, which says one major factor is the increased indebtedness of consumers, reports AFX News.

The Christmas and New Year period is traditionally a busy time for borrowing, as many people seek to cover the increased costs associated with the holiday season.

January and February are two months which usually see increased lending and the sales distribution channel for lenders is anticipating “significantly more enquiries” over that period.

“December’s level of activity reflects the growing debt problems in the UK,” said chief executive Gary Miller-Cheevers.

“Following the busy Christmas period, we expect to see significantly increased enquiries in 2007, as consumers seek to manage their debt more effectively.”

Consumers in the UK have recently been warned that they should borrow sensibly in the aftermath of the festive period.

Debt advice firm Thomas Charles called for people to ensure that they only borrow as much as they can reasonably afford to pay back.

Tags: distribution channel, lenders, debt problems, New Year's Day, period."December's level, Christmas period, increased lending, Gary Miller-Cheevers