Discussing Home Improvement Loans

  By moneybags | June 30, 2009 - 10:14 am | Borrowing, Debt Management Leave a comment

Home improvement loans do tend to have many advantages and disadvantages. Of course it really depends on what you plan to use the loan on in order to assess whether they are a good way of adding value to your home.

Home improvement television programmes often show how a new kitchen or bathroom can increase the value of a home almost instantly. Home extensions such as adding a conservatory or extra bedrooms can often add a lot of value to a home. They are a particularly good measure if you are planning to sell your home and want to improve its value prior to selling it. If you do you research well and look at similar properties which have had the same work done, this will give you a great indication of whether it is worth taking out a home loan to do the work.

One disadvantage could be that the home loan taken out is a larger amount than is added to the value of your home. This would mean that you are paying interest on money which you may not necessarily make back when selling your home.

Of course taking out a home loan to improve your home, even if you plan not to move is a great idea! It often is cheaper than moving home and means that you can add on extra rooms that you may want from a new home. You do of course have to take into consideration the cost of the loan and whether the benefits out way the risks of borrowing money.

Since the economic downturn however, people are finding it more difficult to get these kinds of loans, as banks are far more hesitant to lend. Although there are many reports coming out that things are looking up, it’s never advisable to get a loan in economic uncertainty – especially in a time when house prices are temperamental so if you are thinking of improving your home to increase it’s sale value, it could end up being a big mistake.

Consolidating Your Debts to Decrease Your Commitments

  By moneybags | June 23, 2009 - 10:18 am | Consolidation Loan Leave a comment

credit-cards

One of the biggest problems with the financial climate today, is the amount of personal debt that many people have incurred.

For most people, their income is limited and, in some cases, has even reduced due to redundancy, or having to take a cut in pay, and, of course, ever-rising prices.

There are many ways to try and sort out personal financial problems, though some are better than others. For instance, it is not generally a good idea to take out further borrowing on credit cards. Any special deals the card companies use to obtain your custom usually have a limited life; when the term expires, you may well find you are on a very high rate of interest, and your debt will start increasing again.

One piece of advice I would offer is to approach a professional for free advice and ask about consolidation loans, (you could try your bank, or a charity like CCCS, or a company like Debt Free Direct). The idea behind consolidation loans is that you borrow enough from the bank to repay all your existing debts. You will then have just one commitment, to the bank that loaned you the money. These days, you can even negotiate terms and interest rates, so, although you may find you are making monthly payments for many years to come, at least you will just have the one commitment. As long as you do not take on any further debt, once you have repaid the bank, you will be debt-free.

If you have a mortgage, you may be able to ask your mortgage company for a second mortgage, borrowing enough to repay your existing debts. You will then have to re-negotiate the life of the mortgage, and the amount you pay back monthly, but, as with a bank loan, you will only have one monthly commitment to worry about.

Of course, it is best to avoid debt in the first place, but this is easier said than done. Consolidating your debts in one of the ways listed above, is the next best solution, and will help to make life a little less stressful.

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Simple ways to Increase your Income

  By cashmachine | June 18, 2009 - 8:56 am | Financial Issues, Loans, Personal Loan, Saving tips, Savings 1 Comment

one-penny

Many people are struggling to keep their heads above water in the current economic downturn. Some have even had to take cut in pay, while their financial commitments have gone up and up.

One solution to the problem is to try and increase your income with extra work. If you already work full-time, you may be able to find a part-time evening job, say, working behind the bar in a pub, stocking supermarket shelves, or, perhaps, office cleaning; these are all jobs that can be carried out in the evenings, and will supplement the money already coming into the household.

Selling unwanted items via an online auction site, is one way of increasing your income. First of all, look around your own home to see if there are any unwanted items. Most families have things stored in attics and spare rooms that will probably never be used again. Start listing them, then research the auction sites to find out what is selling, and the prices they sell for. Of course, no-one has an inexhaustible supply of goods, so you could try asking around other family members, to see if they have items they no longer need.

For those people who are skilled at crafts such as knitting, crochet, sewing, card-making and so on, there are sites available nowadays that enable you to open your own online shop, to sell the items you make like Etsy. There is usually a small fee for selling, but you will not have to find premises or staff, so the earnings could be quite considerable. Similarly, if you are good at writing verse and poems, or drawing and painting, you may be able to offer your work to greetings-card companies. You will generally have to write to ask the company for their guidelines first, then submit a sample of your work.

All these are ways to potentially increase your income. By trying one that suits you, you may be surprised at how much extra money you could earn.

Online Money Management Review

  By cashmachine | June 10, 2009 - 1:29 pm | Financial Issues, Savings Leave a comment
Kublax Expenditure Graphs

Kublax Expenditure Graphs

I’ve been looking for a way to monitor my expenses online to help me see the ‘bigger picture’ of my finances for a while now. Despite budgeting and generally being quite frugal, I started looking for a program that could take some of the work out of budgeting for me so I can spend more time actually figuring out where I should be cutting back. That’s when I found Kublax.

I’ve tested the site and have to say, I’ve enjoyed using it. I found it more user friendly than Wesabe (I got frustrated just trying to upload my account!) and particularly like their ‘people like you’ functionality that gives you an idea of what other people spend on the same expenses.

Kublax is a free to use online money management platform that basically aggregates all your bank accounts in one place. Using bank level security, Kublax pulls together bank, credit cards and building society accounts and then divides all your purchases into an expense category. It’s a lot easier than other desktop accounting tools I’ve tried, and really easy to read, as you can view your finances in bar graphs and pie charts.

I started off by adding my accounts and setting my budgets and alerts to let me know if I start spending more than I would like to in a certain area. Once I’d gone into the transaction section and categorized my expenses, the magic started happening. I could then see my budget against my spending and revelations where made. I spend a lot more on shoes than I thought I did.

Kublax Money Management Tools

Kublax Money Management Tools

By using the ‘compare me’ function, I also discovered that I spend a lot more on shoes than the average other Kublax users. Another revelation.

The other feature of Kublax I think is great is the alerts function. At first I thought it would probably be an annoying function, telling me that I’ve overspent on shoes each day, and lets be honest, I already have my partner to tell me that. However, what this function could really be good for is alerting you to any unusual account activity.

If you’ve ever got that dreaded call from the bank, asking you if you’ve just spent a ridiculous amount on car rental in the Maldives on your credit card while you sit in dreary ole England, you’ll know that sick feeling in the pit your stomach. The alert function means that Kublax will tell you of any irregularity, most likely before your bank has called you.

Overall, I like it. I like that it makes me more aware of my spending habits, and that it makes me actually want to log in once a week to see how I’m going financially. Now, I just have to make myself cut back on shoes.

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All about Debt Counselling

  By cashmachine | May 28, 2009 - 11:31 am | Debt Advice Leave a comment

If you’re in debt, you’re probably familiar with that hopeless, stressed out feeling that seems to go hand in hand. Debt counselling can be a way to talk to some one about your problems and get that burden off your chest if you can’t talk to you friends, families or loved ones about what you’re going through. Main debt advice companies such as Debt Free Direct offer free advice and a push in the right direction. Many other agencies do the same, so it’s just a matter of finding one that services your area.

When you call, a trained counselor will carefully assess your financial problem and then make recommendations on what can be done. You don’t have to take their advice, but it’s always good just to hear the advice of an expert regardless. Some debt advice companies can also help you out with your budget too, so make sure you ask for their advice. If they don’t provide a service that is suitable for your debt, many companies might also suggest where else you could go for those debt solutions. All you have to do is ask.

If you’re worried about being ‘judged’, don’t. You won’t be. Debt advice companies are there to help you, not scare you (and if they do you’ve probably called a bad one!). Millions of people are in debt across the world so remember that you’re not the only one is debt and there is nothing to be ashamed about for asking for debt help!

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Advantages and Disadvantages of an IVA

  By cashmachine | April 16, 2009 - 10:54 am | IVA Leave a comment

Individual Voluntary Arrangements (IVA’s) are becoming an increasingly popular method in which to ease any debt problems. Recent figures suggest that the amount of IVA’s taken out each month now exceeds that of the amount of bankruptcies. However, IVA’s are not always the best debt management solution for some, and there are some advantages and disadvantages which you would have to consider before applying for an IVA.

One of the biggest advantages of an IVA is that they are private; none of your friends or family has to find out. This means there is no social stigma attached to IVA’s. Furthermore, an IVA leaves you debt free in up to five years whilst safeguarding all your assets at the same time. Even during these five years, the repayments that you make are within your means. You are never asked to repay more than you are able to.

Perhaps one of the most stressing aspects of debt problems is having your creditors continually threatening you for your payments. Luckily, an IVA ensures that creditors are unable to contact you, make any demands or take you to court.
For some people, the IVA period of five years is a long time to be repaying debts, and filing for bankruptcy gives you the option of being debt free in as little as a year. Although an IVA is not publicised in the same way as bankruptcy, you can still find a record of your IVA on the Individual Insolvency Register, which is searchable by the public. In addition to these disadvantages, the life of a debtor in an IVA period is highly monitored during an IVA period, with wage slips and salaries checked regularly to ensure that you are repaying the highest amount possible.

If you are seriously considering an IVA, be sure to do a thorough check of the Debt Management comany before you choose. Debt Free Direct discovered several agencies were giving consumers misleading advice on IVA terms, so it is always advisable do your reasearch first.

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Make Your Hard-Earned Cash Work for You

  By moneybags | March 24, 2009 - 10:47 am | Saving tips Leave a comment

In the current financial climate, everyone is trying to save money. For every family, there are many unavoidable financial commitments but, with careful budgeting, you can ensure you get the very best value for your money.

Charges for essentials, like insurance, and utilities, such as electricity, telephone, and gas, have increased a great deal over the last two years. Now is a good time to find out if you are paying the lowest prices possible. Today, there are many websites which compare the different tariffs and charges of major energy and insurance providers. By simply inputting your current details, you will be able to find out if it is worth switching to a new company. At the moment, all the well-known companies are fighting for your custom. You may find only small savings with each one, but the overall amount per year could be significant.

The cost of basic food items has also increased considerably recently. Although the supermarkets make some effort to provide bargains to tempt you to spend, there are ways of reducing the amount you pay at the till. For instance, for every big-name brand you currently buy, try a lower-priced item, say, the supermarket’s own-brand, or their ‘value’ range. By saving a few pence per item, over the course of a week, you will have saved a few pounds – far better kept in your pocket than in the supermarket’s tills.

Another tip is to plan your meals for the week ahead, list all the ingredients needed on your shopping list, and shop only for those particular items. Stick to the list, and you will not be so easily tempted to overspend. You will also be surprised at how little you throw away at the end of the week.

By following these frugal tips, you will see a real difference in your spending habits, as well as the amount of money you have left at the end of the month.

Top ways to survive the recession

  By David | February 23, 2009 - 3:45 pm | Savings Leave a comment

Boost you income
Why not take on a part time job in the evening after your regular work, or even on a weekend, sure you’ll have less time to watch television or spend time with the family but think of the extra money in your pocket that could pay for a nice holiday or just help pay off those debts. Renting out a room in your house if it’s going spare is another great way of boosting your income, and the money you gain will be tax-free under the government’s rent-a-room scheme.

Insure your income
Insuring your income is a great idea during a recession as if you lose your job the insurance can cover payments on your mortgage for up to a year. The Government will also help homeowners who lose their jobs by paying the interest on mortgages of up to £200,000 from the 13th week after being made redundant. Mortgage protection can cover your repayments but make sure you check the small print as they have very specific terms.

Get a good credit card
Card issuers are pushing up their prices and also reducing their interest free periods so it is vital that you pay off consumer and credit card debts. Switching to a cheaper card is normally the best option and if you’re not in debt then have a think about switching to a cash back card that will give you back a percentage of the money you spend. If you are getting squeezed by those credit card companies and in need of debt help then make sure you shop around wisely for the best options as the recession is limiting them and debt help can be harder to come by.

Overpay your mortgage
If you can afford it then try to overpay your mortgage, Not only will this cut the term of your mortgage considerable and save you lots of money in the long run but will also means that if you do run into difficulties then you can take a payment holiday.

Change your savings
Savings rates have dropped dramatically with them being at the lowest in the history of saving, but there are still accounts that give you more than the base rate. There are still accounts out there that give 4% which is not too far away from the 6-8% we were getting last summer.

Get better insurance
Insurance is a necessity and you can always get cheaper and better insurance for your home/car. All you have to do is not accept that renewal quote, use comparisons sites or call your insurer and tell them you’re leaving as you’ve found a better bargain. They will offer you a better deal, and you can always haggle with them a bit more to get that low price. The same works for Sky TV and mobile phones just call them up and say you don’t want it anymore and they will lower their price to keep you.

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Creative ways to get out of debt

  By David | February 10, 2009 - 3:48 pm | Debt Advice, Saving tips, Savings 6 Comments

Trying to get to sleep whilst in debt can be a nightmare. Being proactive about debt is a first step on your way to getting debt free. There are many ways to alleviate and get rid of the debt monster but being creative and forward thinking and crucial to success.

There are only two sources to obtain the extra cash to reduce and pay off your debts; spend less money from your current income and find a creative way to bring in some extra much needed cash.

Getting organised is the first thing you should do. Make a spreadsheet on what you get each month and then add all your outgoings and tally it all up, this allows you to see where outgoings can be cut and money saved. See what you have left over after all this then budget for food and other luxuries. Give yourself room in the budget just in case anything unexpected arises and always know how much money you have in your debit account so you don’t go making any silly superfluous purchases.

Avoid eating out, if it’s a special occasion then cook something special at home, even if you use the most expensive ingredients it will still be cheaper than going out. Growing your own vegetables if you have a garden is also a great way of saving some extra money. Always check the local paper for event listings that are free in your area. Free events are worth taking advantage of as they provide a whole day out and means you’re not spending you hard earned cash on going to theme parks or expensive pay events.

Get rid of all your credit cards and store cards apart from one with a low credit limit. Try to only use cash and avoid using credit at all costs, if you can’t pay for it in cash then you can’t afford it. If you do need to borrow money then try asking friends and family instead.

Buy some thermal underwear! This can drastically reduce your heating bills if you wear it around the house and thus turn down your thermostat. Damart sell cheap thermal underwear and have been in the business for over 50 years, spending a little on some Damart thermals will save you a lot in the long run.

Try and get a second income! Be creative it doesn’t have to be an evening job. You could start a blog or sell items on EBay or even do peoples ironing for them. If you own your house or rent a flat that has an extra room then why not consider renting out. Using the money earned from a second income could be used to put solely into a rainy day account or in to savings or used to pay of smaller bills such as credit cards or store card bills.

So come on, get creative and help yourself get out of debt or make that bit of extra cash.

Financial Education

  By David | February 5, 2009 - 10:41 am | Debt Management, Financial Issues, IVA Leave a comment

With the recession just starting to take effect many of us will be feeling its force. Losing your job or knowing someone that has, the credit crunch is affecting us all. Most of us have payment protection on our mortgages or loans in case something unexpected happens, but what about those who don’t know about such products and are now defaulting on payments.

Most of us shop around to get the best deals when looking for financial products, we also know what we’re looking for to meet our specific needs i.e. tracker interest rates or fixed rate loans but there are thousands upon thousands of adults who are uneducated when it comes to personal monetary issues.

Lack of education in the financial area can and will lead to large losses of money from the purchasing of unstable and unsuitable financial products. In turn this can lead to even more dramatic effects; those who have got into debt will have to find a financial package to help them recover from that position whether it’s an IVA, bankruptcy or a consolidated loan, choosing the right one that will provide the best solution is a hard task if you don’t have the understanding of what each option offers. You need to know the pros and cons of what they are offering. People need to develop an understanding of economics and finance so they can make the right choices before they get taken advantage of by a loan shark.

Financial education should incorporate lots of different areas to help people manage their money more effectively. The key points being:

• Planning ahead with savings, pensions other investments for the unexpected
• Keeping organised with financial documents and making assessment of advice received
• Knowing whether the credit limit, loan, mortgage is right for them
• Looking for suitable financial options and opportunities
• Engaging confidently in financial situations

Getting children educated about money from a young age either at school, college or at home has massive benefits and sets them up for a happier future with less stress and strain over their finances.

Financial education will enhance and develop people’s understanding of economics and finance and give them a much needed foundation to manage their money better and make knowledgeable choices with financial packages.

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