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January Blues
If you have debt problems and the January blues are getting you down and need to get it you need to pick up the phone and call a debt management service provider, but before you do, that make sure you the debt solution team you pick is right for you and offers a good service with no loopholes of hidden articles.
Choose a reputable company
Many debt management services are being offered over the web but don’t just select on gut instinct, try to do a simple background check on the service provider. You want to be with the people who will genuinely help. The company should employ experts and the debt management service should be more one on one counseling than anything else. You should be dealing with a real expert rather than somebody who just poses to be one. In order for you to be guided accordingly, you have to be with the best people.
Questions to ask
The company should have a good track record and you should ask each company lots of questions before a decision is made:
1. How many people are actually helped by the company?
2. Are its clients satisfied with the service they got?
3. Are the services effective?
4. What does this service cost?
5. Will I be able to get debt free?
These are questions that you need to find the answers to before you commit to a specific debt management service.
A personalized service is key to getting the best out of the debt advice that will be received. You have to make sure that the debt management service provider looks deeper into your personal needs and requirements and not just leave you out in the cold with a big fat fee for them doing nothing.
Choosing a debt management service provider that will effectively take you towards debt-free living requires that both you and they share the same goals of you being debt free for life. These are the things that you should consider when selecting a debt management service provider. Remember, your chance to be free of debts is in their hands. Both of you should be helping each other.
Saving Money on your Energy Bills
Are you always being plagued by the ever increasing energy prices? Last year gas, oil and electricity prices rocketed to sky high levels and most people were left feeling very out of pocket and not only are these costs jumping to new unseen levels but the credit crunch is hitting hard and so any chance of that pay rise is likely to be out of the question.
One simple, effective way to save money on those dreaded bills is to get some thermal underwear. Ok so I don’t mean wear them to work but when you’re in the house just lounging around you could put on some thermals and turn the thermostat down a few degrees, not only will you be extra toasty warm, but by lowering the temperature by 4 – 5 degrees can help reduce your energy bill by up to 10%. Thermals only cost around £10-30 for a decent set; just think of the return on investment, they will probably have paid for themselves after just one month.
Thermals have had a bad image for a while but there are many brands out there that do not conform to that stereotype image, Damart for example, have been manufacturing thermals for 55 years and have very stylish and colourful ranges. More expensive thermals are even better at insulating and keeping you snug so if you fancied spending a little more cash you could buy some really good thermals and turn the heating down even further to save even more money.
This January looks set to be a cold month and no doubt we will all want our heating to be on high but for those of you who take my advice and get some thermals you can laugh at the poor fools who didn’t when the next quarterly bill comes.
Tagged Savings
Phone line cheat sheet
Talking to a machine on the phone can drive you insane, especially if the per minute charge is a ridiculously high price All you want to do is talk to a human and all the company your calling wants to do is make you bankrupt but help is at hand from cheapflights.co.uk who have come up with a cheat sheet.
The cheat sheet is a list of lots of airlines and hotels who have automated answering services; the list provides details of what to press and when to get straight through to a real (yes real!!) human being.
I happened across this gem whilst searching for tips to make you richer, and considering many of us call £1+/min call centre’s and have to key in options that aren’t helpful and wait queuing for possibly greater than 20 minutes then it seems fair that this is a brilliant money saving idea.
Check out the cheat sheet here.
Tagged Cheat, debt, Phone, Saving tips
Saving money the easy way
Saving money shouldn’t be a chore, it should be a challenge and you should look forward to what you will get at the end of it. Whether it’s saving to put a deposit on a house or just to afford the extras on that big family holiday there are some easy ways to cut back find you have more cash than you think.
1. Take a pack lunch to work – Taking a homemade lunch can save you loads of cash as you don’t need to splash out on that sandwich from prêt, cutting back on the daily Starbucks will also make your wallet heavier as spending just £2.50 a day on a coffee can really mount up.
2. Set up a direct debit – If your main bank account is always empty at the end of the month due to you just having to spend everything in it then set up a savings account and transfer a small amount of money to it monthly or weekly. This is a method of forced saving but makes sure you live within your means.
3. Use cash instead – Using your cards less and switching to cash will make you spend less, you will find you have a much more emotional attachment to parting with you hard earned cash rather than just putting it on a card.
4. Clear the most expensive debt – You should always clear the most expensive debt first and this is normally your credit cards, credit cards have huge interest repayments and if you cannot afford to repay the full amount each month then it might be worth considering a small low cost loan as the interest on them is normally half that of the credit cards.
5. Make a shopping list – Making a shopping list is essential, if you don’t you will come out of the supermarket with more items than you wanted and nothing that you needed. Try and plan the meals in advance of going to the shops, try own brand products to cut down on cost and never ever go shopping on an empty stomach as everything in the supermarket will look delicious.
6. Track your spending – Keeping a diary of everything you spend is a great way to keep all you’re spending in check, it will make you far more conscious of all your outgoings and any areas where money is being wasted or could be saved. You could use a spreadsheet on the computer or just a simple notebook, as long as you feel comfortable with it and will make sure you keep it up to date.
7. Shop around for the best deals – Looking around and comparing deals on essentials like gas, electricity, water, telecoms and insurance can save you vast sums of money. For just for a small amount of your time looking on a price comparison website, they will compare hundreds of companies’ quotes in seconds and help you save that extra money.
8. Doing D.I.Y. – Okay so when I say DIY I don’t mean building an extension or fixing a massive hole in the roof but if you do invest £100 or so in a night school class at a local adult college in a maintenance course such as plumbing or electrical engineering then it can avoid incredibly costly callout fees and save hundreds of pound in the long run.
If you just follow some of these simple ideas you will be well on the way to saving up for that dream house or the holiday of a lifetime, If you are in debt you can use these tips to help alleviate the load and help pay the burden off quicker.
If you have any other great money saving ideas then please do add them in the comments section for all to see and use!
Tagged Saving, Saving tips, Savings
Saving Money Online
There are many ways to save money by using the Internet and I think that nearly everyone knows this but where are the best offers and sites. Here I will give you a rundown of my favourite:
1. Affiliate scheme site
These sites make you shop through them to pick up points which can be redeemed for gifts. They make their money by redirecting you to the shops site and then making a percentage on what you spend. They are great as if you were going to the shops site anyway why not get something back from it. My favourite affiliate site is ipoints which has almost every major retailer, gives a good number of points and has a great range of gifts when you redeem your points.
2. Voucher codes
When shopping online try searching for voucher codes in Google first for your favourite shop. The site myvouchercodes.co.uk has loads of codes for many shops and they’re often for 10-20% off and free delivery which is great when you only spend £5 and don’t want to have to pay another £5 for delivery.
3. Savings websites
Moneysavingsexpert.com is one of the biggest names in saving and provides all the best deals and offers that are on at the moment such as 2 for 1 offers at well known restaurants, voucher codes, comparisons between credit cards, utilities, mortgages and consumer rights advice. Other sites such as thismoney.co.uk provide great advice on personal finance and global financial news.
4. Shop around
Price comparison websites are genius, they allow you to save time and effort by checking the price of the product you desire at lots of different shops in split seconds. Kelkoo.co.uk is a good comparison site for electrical products / gift. For insurance, gas and electricity comparison then check out moneysupermarket.com.
I hope you find these sites useful, I don’t know how I’ve ever lived without them as they have saved me so much money over the past few years. If you know any really useful sites that warrant a mention then post a comment and share the wealth.
Repossession Rising
Home repossession has skyrocketed throughout 2008, the Bank of England has disclosed that more than 500,000 homeowners are now in negative equity however other sources have said the figure could be breaking 1 million. It is expected that 45,000 homes will been repossessed by the end of the year.This figure equates to 123 repossessions per day and is set to rise to 205 per day in 2009.
The government has recently declared that a 1 billion pound scheme has been agreed with the 8 largest lenders (HBOS, Abbey and Nationwide) to help struggling homeowners. The package is estimated to benefit around 9000 people and will be available to those that have recently lost their jobs or have suffered a loss of income i.e. a bonus.
The bailout will let households with mortgages of up to £400,000 defer their interest payments for up to 2 years however the exact terms of the suspension of payments and how much of the payments are deferred will have to be agreed between the individual and the bank. The scheme is effectively a form of mortgage interest insurance and has been classed as more of a reassurance tool. It is targeted at middle income families and to qualify they must not have more than £16,000 in savings, currently those who are unemployed with mortgages of £200,000 or less can apply for housing benefits
I personally feel that even though the government is stepping in to try and help homeowners it still won’t be enough to fight this economic downturn, there needs to be some serious action to help relieve the millions of people who will feel the burden of debt and money worries. Yes I know they’re trying but all these packages the government puts together have been very rushed and probably not thought through very well. The amounts used for all the different bailouts in recent months (banks etc) have to come from somewhere and taxes will not fully cover it, so what will be happening in a few years time? I see more of us in debt, taxes skyrocketed and prices on goods will be far higher than expected (£8+ a pint!!!) and of course wages will the same!
What do you think of the government bailouts and what do you think the future holds for the economy and the cost of living?
Tagged debt, Repossesion, Tax
VAT Cut – What it means for you!
On December 1st the government decided to help consumer spending by cutting the rate of standard VAT from 17.5% to 15%, this is the lowest allowed rate of VAT permitted by the European Union and will remain at this low until the midnight 31st December 2009.
What is VAT
VAT (Value Added Tax) is a tax you pay when you buy goods and services within the EU; normally included in the price of the item/service unlike the United States where it is added on at the checkout. There are 3 different VAT rates.
Zero rate (0%), goods you don’t pay VAT on such as food, books, public transport, children’s clothes and shoes, and special exempt items i.e. Equipment for the disabled.
Reduced rate (5%), goods include domestic fuel and energy, children’s car seats, services such as installing energy saving devices and domestic conversions.
Standard rate (now 15%); is the default rate of goods and services that are not mentioned above.
So what does the rate cut mean for you and can you take advantage of the situation?
The first question to ask is whether the shops will pass on the rate cut to me, and it seems that many high street stores have. The prices on their items may be the same but when you go to the till you will find you’re getting a 2.5% discount off the marked price. Couple this with huge Christmas discounts available during the holiday season and it can add up to a nice saving.
If you have been planning to buy a new TV, some high end electrical equipment or a car now would be a great time to buy as you make a saving of £25 on every £1000 from the VAT reduction alone and throw in the Christmas discounts can help you save lots of money. Outside of the Christmas period or a sale season the reduction won’t be as noticeable and stores may slyly decide to not pass on the saving on anymore in a bid to increase their dismal credit crunch profits.
Don’t go crazy
Just because prices have dropped by 2.5% does not mean that you should go crazy and have a massive spending spree, flashing plastic willy nilly in December can give you one hell of a debt hangover in January so spend wisely and only splash out if you can honestly afford it.
Bankruptcy Vs IVA
The dreaded B-word, bankruptcy is an increasing possibility for many families and businesses and it can appear to be an attractive alternative for those struggling to pay off large debts, but what may seem like a get out of jail free card does have some long term implications that can be far worse
The first advice I would give to someone thinking about bankruptcy would be to get some free debt advice and look at all options especially an IVA before declaring yourself bankrupt, once the bankruptcy proceedings have started there can be no going back.
Once declared bankrupt by a magistrate, you will find yourself in a very limited position within the world of finance; it will be impossible to get a mortgage or a credit card, all assets will be lost such as house, car etc and there are restrictions on being a managing director or in charge of a company. You may also lose your career and some professions will not employ those who are or have been bankrupt. As well as all of this there is the social stigma; bankruptcy is advertised in local papers and if you are renting a property then the landlord will be informed.
The best alternative I’ve seen to bankruptcy is an IVA (Individual Voluntary Arrangement) which is similar to bankruptcy but is not surrounded by so much doom and gloom. It is a voluntary agreement between the debtor and the creditors on a settlement figure, and this is paid into a fund over a 5 year period. Interest charges are stopped and the creditors are not allowed to pursue any further legal action against the debtor. Having an IVA rather than declare yourself bankrupt has numerous advantages, the main being that you can keep your house and car (if it’s small and essential). The affordability of monthly payments is agreed in advance and fixed so there are no unexpected sales of assets. Employers do not require information about current or previous IVAs and having an IVA will not be printed in the paper. Your credit rating will not be harmed as much, but it will still be poor. I can’t see why anyone would choose bankruptcy over an IVA unless the creditors cannot agree on a figure for repayment or they wish to carry out an investigation into the debtors affairs.
It is never really in the best interests of the creditors to make someone bankrupt as they usually will get less of their money back through bankruptcy than if they agreed an IVA with the debtor. Court costs of bankruptcy are very high and repossessed houses that have quick sales do not achieve their maximum price.
As the credit crunch goes into full swing it seems likely that bankruptcy and IVA cases will increase as the nation falls further into debt. If you are teetering on the edge of financial collapse or ruin then get some free advice and take some weight off your mind.
Tagged Bankruptcy, IVA
How to manage your salary
With everyone getting in a panic about the credit crunch, the rising cost of living, and imminent global economic disaster, it seems ever more important to make your salary stretch as far as possible. When nearly everyone will one day be earning a regular wage, it seems truly astonishing that schools do not teach such a useful skill as budgeting, and that many parents fail to instil a sense of frugality in their children. But worry not, it’s never too late to learn a new skill, and here are some tips on how to manage your salary wisely.
The first step – and yes, this may be boring, but it’s necessary – is to sit down and work out your income and outgoings. If the latter is greater than the former, you’re in trouble, and it’s time to take control before things get any worse. If you don’t spend more than you earn, it’s still worth taking a look at how you can make better use of your money, as there are always ways of making cutbacks. Even if you have plenty of disposable income, why throw it away? It’s far better to save as much as you can, and use it for something worthwhile, or leave it earning you lots of lovely interest (okay, maybe not that much interest, but it’s better than nothing, or worse, spending everything).
Most people know how much their take home pay will be every month, which makes it easier to budget. Having worked out how much your outgoings are, you can then look at where they can be reduced. Grit your teeth, and spend an evening looking at ways of reducing your expenses. Some things can’t be cut out altogether, unless you want to live by candlelight and cook on a butane store, but they can be reduced. Look at how you can reduce your energy consumption, by keeping the thermostat down and switching off lights, for example, and research cheaper energy providers. Try car-sharing, or cycling to work, if possible.
Now look at non-essentials. This is the easiest way to make savings, even if the prospect of a more frugal lifestyle fills you with dread. Try going out less, cooking budget meals for friends instead of eating in restaurants, waiting for a film to come out on DVD rather than going to the cinema, and buying clothes in the sale. Set realistic budgets for everything, that means not denying yourself any fun, while acknowledging that you don’t have unlimited funds. Buy clothes in the sales and plan your wardrobe. Avoid impulse purchases, and think about whether you really need something. Change your mobile phone plan, and use your landline wherever possible. Keep your credit cards for emergencies. Follow this advice, and more of your income will stay in your bank account!
Home improvement loans
Home improvement loans can be an excellent way to add value to your home as long as they are spent wisely and your budget allows it. Often mortgage companies will allow you to borrow extra for home improvement and this can be the cheapest way of borrowing as long as you do not end up paying the loan for the full 25 year term. Negotiate wisely.
Next it’s important to ensure that the work that you are doing to improve your home will actually add value. Generally speaking adding square feet, for example extra rooms, will always add value. Smartly fitted bathrooms and kitchens add value too as does installing central heating in an older property. New windows and conservatories often cost far more to buy that they add to the value of your home so make sure you do your homework to ensure that you are not wasting time and effort. Local estate agents have the best knowledge of your area. Don’t be afraid to ask for their advice. They know what sells properties and what are just regarded as nice extras.
Finally, don’t go over the top with your home improvement ideas. Your house is only worth what the area and street dictate, and don’t get too personal and flamboyant with the designs. Not everyone will appreciate your great taste.
Tagged Home Improvement, Loan