A third of drivers struggle to afford excess on insurance

As most drivers are only too well aware, the cost of operating and maintaining a vehicle has soared over recent years, with more and more drivers finding themselves struggling to meet the rising costs associated with driving. This includes everything from higher maintenance costs and soaring insurance costs to rocketing petrol prices. This is putting real financial strain on the many people who rely on their vehicles to get to work, ferry kids around, and for other purposes.

With regards to car insurance costs, many drivers look at a variety of ways to try and reduce the cost of their car insurance plan, one of which is to opt for a higher level of excess. With vehicle insurance the higher the excess level you choose the lower the premiums are likely to be. However, this means that in the event of a claim the amount of excess that you have selected is the amount that you will have to pay from your own pocket.

One recent report has urged consumers not to increase the excess levels in order to push vehicle insurance premiums down unless they are sure that they can cover the excess in the event of a claim. The report, which has been released by the insurance giant AXA, claims that almost one third of drivers in the UK are actually unable to actually afford the excess level that they choose when it comes to making a claim. This has led to many being left with vehicles that cannot be repaired and become unroadworthy.

An official from the insurance giant stated: “We appreciate that premiums have risen a lot in the last couple of years and we can understand consumers looking at ways of saving a bit of money. But if this means that they can’t afford their excess, it is a completely false economy.”

Tags: official, AXA, unroadworthy, insurance plan, variety, Automobile, false economy, maintenance

Housing valuation activity levels increase in May

A recent report has shown that the level of mortgage valuation activity increased for the months of May, reflecting the sixth month in a row where this activity has seen an increase. The data was released by Connells Survey and Valuation, which recently released its Housing Market Activity report.

The report showed that when it came to mortgage valuations the month of April had seen activity remain largely flat. However, this changed in May with the number of mortgage valuations said to have increased by around 22 percent compared to the previous month. Compared to the same period last year, the number of valuations in May increased by 26 percent. This will most likely be taken as another positive sign of some level of recovery in the property market in the UK.

The data showed that one of the reasons behind the increase in activity was a marked increase in interest from first time buyers in the market. In total first time buyers made up 34 percent of all valuation activity according to the report. However, the figure was further boosted by existing homeowners who were looking to move home. There was an increase of around 11 percent on valuations for house movers for May compared to the previous month.

An official from Connells stated: “Housing market activity has resumed its slow and steady upwards trajectory, driven by an upturn at the lower end of the market. Many first-time buyers have been encouraged to enter the market by the uptick in the number of higher LTV products available recently. However, for the average first-time buyer, mortgage finance still presents a formidable challenge. The increasing variety of products is offset against comparatively high rates – alongside overly stringent criteria demanded by lenders.”

Tags: variety, number, homeowners, Real estate, percent, steady upwards trajectory, property market, Business Finance

Mortgage arrears up by 30 percent

Over the past year the level of mortgage arrears amongst homeowners in the UK has increased by around 30 percent according to recent reports, and this is despite the fact that the UK base interest rate has been at its lowest level in the history of the Bank of England since April of this year. Read more

Tags: current climate, situation, variety, mortgage arrears, average

Increase in jobless figures

According to a recent report there was in increase in the number of jobless people in the UK towards the end of last year, and the rise in the number of unemployed is expected to continue this year. Read more

Tags: variety, Labor, jobless people, unemployment, claim, stability, increase

100,000 a month could lose their jobs

Over recent weeks there has been rising concern over unemployment levels in the UK, with the recession and the current financial climate already have seen many jobs lost or threatened. Read more

Tags: official, unemployment, variety, colleagues, hundreds of thousands, job losses, April, 100

CAB recommends teen finance lessons

Financial lessons for Britain’s teenagers have received strong support from the Citizen’s Advice Bureau (CAB).

With debt levels now outweighing national GDP, the bureau said that teaching young people how to budget more effectively was “fundamental”.

The CAB issued the statements in reaction to the government’s announcement last month that a new subject covering financial issues is to be introduced into the secondary school curriculum.

A spokesperson said: “We very much welcome the move to improve people’s skills in personal finance, because what we know that a lot of debt problems are caused, at least in part, by a lack of understanding and a lack of confidence in dealing with money matters.

“There are a whole variety of ways of engaging young people of that age with the issues,” they added. “There are many different methods, ranging from drama to a whole load of other things. So I think that there is no shortage of good ways of making this a subject that young people want to know more about.”

Also supporting the new lessons is recent research from the Institute for Public Policy Research, which suggested that a couple with two children could be as much as £32,000 wealthier due to sound decisions made stemming from an improved financial education.

Tags: Britain's teenagers, lack, Citizen's Advice Bureau, variety, Financial lessons, Institute, financial issues, couple

Credit card spending set to rise

The amount of money spent on credit cards is set to increase sharply in 2007, according to Morgan Stanley.

New research from the firm has led to predictions of a 68 per cent increase in credit card spending in the first three months of the year compared to the same period in 2006.

The Morgan Stanley Card Index shows that Brits intend to spend £1,228 on their cards during the first quarter of the year, a vast increase when compared to the £730 spent between January and March last year.

One reason for the rise is said to be increased comfort with spending on plastic, with consumers happy to buy everyday products such as groceries using their credit card.

Morgan Stanley’s research makes for positive reading, with repayment figures at the highest they have been since 1998, meaning consumers are using their cards sensibly.

“The results of our research show an increased confidence in the use of credit cards as a financial aid,” said Patrick Muir from Morgan Stanley.

“It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem.”

Mr Muir also pointed out that consumers appear to be becoming more skilled in using their credit cards to maximum personal gain.

“Cardholders are becoming increasingly clever when it comes to being rewarded for the purchases they make, and with a wide variety of reward schemes available, ranging from collecting points to cash back, spending on credit cards is fast becoming the most appealing way to pay when compared to other methods,” he added.

Tags: cent, Mr Muir, first quarter, GBP, variety, Cardholders