Debt consolidation ‘an option’ for those in debt

People who are looking for a way to deal with their debt may want to consider debt consolidation, Experian has said.

James Jones, consumer education manager at the company, advised people who are struggling with their finances to seek advice from a free advice agency, citizen’s advice bureaus or the national debt line.

“Debt consolidation is one of a range of options,” Mr Jones commented.

“I would encourage people to always speak to their lenders if they are struggling to make payments,” he added, saying that they can help people find solutions to their debt problems.

According to research from CreditExpert.co.uk, 20 per cent of people plan their finances every six months or less.

Commenting on this, Mr Jones recommended that people get into the habit of doing this every month or every three months.

The research also found that one in ten of people are completely clueless about their level of debt.

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Car insurance increases

Car insurance premiums are higher than ever before, according to the AA’s British Insurance Premium Index.

However, home and contents insurance premiums have fallen in the past quarter.

AA says that the average car insurance premium is now £822, a rise of 2.5 per cent in the last three months.

The firm points out that this is more than double the amount quoted in the first ever index back in July 1994.

Despite this, home and contents insurance premiums have fallen slightly in the same period of time.

Buildings cover is down almost two per cent, with the average quote being £207, while contents insurance has fallen by a little over one per cent to £147.

“Home insurance represents particularly good value having changed little over the past decade and while the trend of car insurance is firmly upward, there are still deals to be had,” said Kevin Sinclair, managing director of AA Insurance.

“Things have never been better for customers in terms of choice but make sure you’re comparing like for like and not just price for price.”

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Savers have changed attitude

The way we approach banking has changed in recent years, with new research showing that more of us are opening instant access savings accounts.

A study by Birmingham Midshires shows that 51 per cent of people who opened a savings account in the last three months opted for the instant access option.

This is in stark contrast to the number who chose to make their money slightly harder to get to, with only 16 per cent keeping it out of reach.

Birmingham Midshires says that this trend is all part of the ‘have-it-now’ culture of Britons in the early 21st century and the firm says that consumption of goods figures back this claim.

The Office of National Statistics recently published these statistics, showing that we consumed 73 per cent more goods in 2005 than we did in 1991.

Experts at Birmingham Midshires say that it appears to be the case that many Brits are saving in order to spend.

“Instant access accounts are an excellent way of saving for short term needs, however, we would encourage savers to also remember the long term and make adequate provisions,” said Jason Robinson, director of savings operations at the company.

“It is worth considering a number of savings pots for different purposes which can nowadays be very easily managed online.”

There is nothing wrong with saving money for a big purchase, however, it is also advisable to make sure that you have money put aside to help you through an unforeseen change in circumstances.

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Men splash cash on romantic gestures

The size of the rock is clearly a concern for couples thinking of getting engaged, with nervous suitors now spending as much as four months’ salary on getting the perfect ring.

Many men splash out more than £4,000 on engagement rings, breaking the traditional convention that one should choose a ring that costs about one month’s salary.

Research from specialist insurer Hiscox shows that nearly two thirds of married and engaged men spent three months’ salary on a ring, whilst a further 11 per cent spent even more.

Despite the rising spending on the symbol of intention, 13 per cent of women surveyed admitted to still being disappointed with the ring they received, saying they either had wanted a different style or a bigger stone.

A representative for Hiscox, Kevin Kerridge, cautioned that despite the amounts being spent, purchasers are not taking out insurance or assume it falls under their house insurance policy, which may not necessarily be the case.

“Having spent so much hard earned cash you stand to lose a small fortune if it is not insured properly,” he said.

“The golden rule is to check your policy carefully – never assume an item of that value will be covered under your standard policy unless your cover is with a more specialist household insurer.”

And try and be sure she’ll say yes!

Tags: three months, convention, engaged men, Business Finance, perfect ring.Many men, whilst, two thirds