Mar 29, 2010 Comments Off
Mar 29, 2010 Comments Off
Mar 5, 2010 Comments Off
According to the Finance & Leasing Association, consumers spent 17 percent more on instalment credit during the lead up to Christmas compared to the same period a year before. It is believed that a proportion of this increase was related to the rate of VAT returning to 17.5 percent, which reportedly prompted people to make money-saving purchases beforehand.
Compared to 2008, it has been revealed that the sum of new consumer lending provided by members of the FLA fell by 15 percent in 2009. However, an analysis of the actual products has shown that credit card, store card and store instalment credit spending have ‘held up, relative to longer-term credit products’. It was found that consumers are making smaller purchases on instalment credit, such as white goods and home electronics, which typically cost up to £700.
Fiona Hoyle, the FLA’s Head of Consumer Finance, said: “Our figures tell a wider story of the recession. Overall, new consumer lending is down by 15%. But the breakdown between different credit products tells us that customers are looking at the financial products available to them, and using credit products to meet specific needs.
“The High Street has benefited from FLA members providing credit to customers, whether through credit cards, store cards or store instalment credit. Customers are using these products because they are flexible and allow consumers to spread payments for essential goods and keep them at levels that are within their budgets.
“The same principle applies to store cards. But store cards are endangered by current proposals from the Conservatives, which would gold-plate new EU regulations and remove this convenient option for customers. We hope the Conservatives will think again.”
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Homeowners who find themselves with multiple credit card or store card repayments each month could consider taking out a secured loan to tie these commitments up into one manageable monthly repayment. One of many finance options available, a secured loan for consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. Furthermore, this single monthly repayment could even be lower than the sum of current outgoings. However, if opting for a secured loan to consolidate existing credit, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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Feb 5, 2010 Comments Off
According to Nationwide, there was a dip in personal savings during the lead up to Christmas. It was found that consumers no longer regarded saving money as being as important as they did in previous months. Nationwide believes that possible reasons for this change of heart are likely to include Christmas shopping, and the fact that the VAT increase was imminent at the time.
It has been reported that just 45 percent of consumers are making regular savings, which is 4 percent less that the previous month.Furthermore, findings show that 25 percent of consumers are failing to save any money at all, which is 1 percent more than the month before.
Head of savings at Nationwide, Andy Hutchinson, commented: “December is clearly a busier month for retailers, so there is no surprise that the importance of saving decreased in the run-up to Christmas. It is possible that this was also exacerbated by the fact that December 2009 was the last month before VAT increased back up to 17.5% from 15%, encouraging some customers to make those bigger purchases before the New Year.”
“Discouragingly, the number of those who are saving regularly is at its lowest point since the Index began in May 2008. On the other hand, this could be because of seasonal fluctuations – as mentioned earlier – and we mustn’t forget that the Base Rate is lower now than it was 12 months ago. Nevertheless, it’s still worrying that a quarter of us are not saving any money at all.”
“We know that December can be an expensive month for families, so I would encourage them to get back into a savings habit as quickly as possible in January 2010.”
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Homeowners who may have had to rely on credit cards to fund the festive period could consider tying these debts up with a secured loan. One of many finance options available, a secured loan for debt consolidation could allow the borrower to reduce multiple monthly repayments down to just one. What’s more, the new single monthly repayment could even be lower than the sum of current outgoings. This money could potentially be set aside in a savings account for future use. However, when taking out a secured loan for debt consolidation, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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Dec 31, 2009 Comments Off
According to Aviva, Brits spend 26 times longer on their Christmas shopping than they do on searching for the best retirement income deal. In fact, the average amount of time spent on the former is reportedly 3 days, 6 hours and 35 minutes per annum, which equates to six months during the course of a lifetime. In contrast, it would seem that Brits only spend a total of 7 days shopping for the most suitable annuity or pension product.
Aviva’s research also revealed that 55 percent of Brits admit to spending over a week investigating their annual holiday, which entails consulting a minimum of 4 or 5 sources of information prior to booking. During the course of a lifetime, this equates to 311 days. In comparison, it was found that 282 days are spent deciding upon insurance, and 246 days are spent deciding upon utility services.
Despite the revelation that decisions surrounding pensions and annuity products are made more quickly than others, the research also showed that 43 percent of Brits would consult in excess of 11 sources of information prior to buying. As a comparison, 31 percent would utilise five sources of information before investing in car or home insurance.
Head of annuities for Aviva, Darren Dicks, commented: “It’s great to see that people are becoming more savvy as consumers and are trying to shop around to get the best. However, it’s worrying that we might spend more time choosing Christmas presents for our dog than we would finding the best product to see us through the whole of our retirement!”
”At Aviva, we encourage people to spend time when thinking about their future, as this can make a dramatic difference to their retirement income.
“It’s important that customers get the best advice and find the right solutions to help them increase their income in retirement. By shopping around for an annuity, people can increase their retirement income by 10% or more. If people invest time in planning for retirement sooner than later, as well as getting sound financial advice, they can prepare for the retirement they deserve.”
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Homeowners who would like to re-organise their finances in the New Year, could investigate the possibility of taking out a secured loan to consolidate any existing debts. One of many finance options available, a secured loan for debt consolidation could allow borrowers to replace multiple monthly repayments on credit cards and personal loans with just one. This single monthly repayment could even be lower than the sum of current outgoings each month, thus freeing up useful money that could potentially be set aside for future use. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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Dec 30, 2009 Comments Off
According to Engage Mutual, a survey of 3,000 parents has revealed that in excess of one in five have been borrowing from their children’s savings accounts. It was found that 44 percent have borrowed between £200 and £500, with the majority of parents repaying the money over a period of five months or less.
Findings also showed that British families view the recession as the cause of the poor state of their finances, and some have had to rely on their children’s savings to get by. However, 82 percent have reportedly borrowed the money as a loan and have every intention of paying it back as soon as they have more money to hand. Reasons for such loans include unexpected car repairs, house repairs and other bills, whilst 8 percent of parents admit that their Christmas would not be particularly merry if it wasn’t for their children’s savings accounts.
The survey also uncovered that 60 percent of respondents have borrowed between £200 and £5,000 from their children’s savings accounts. Of these parents, 40 percent did so in order to pay the bills, and a fifth did so as a means to paying for car repairs. Furthermore, the money was reportedly used to fund a family holiday in 14 percent of cases, and to finance house repairs in 12 percent of cases.
The survey showed that 13 percent of parents are not aware of where else they can access money quickly, and virtually two thirds of parents only borrow money from their children’s savings accounts when they have no other option. Nevertheless, 30 percent of parents feel ‘incredibly guilty’ for doing this, and 60 percent are said to be ‘worried about their child’s financial future’.
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Homeowners who are finding their finances tight at the moment, perhaps due to expensive credit card repayments each month, could consider taking out a secured loan to consolidate debt. One of many finance options available, a secured loan for debt consolidation could relieve borrowers of multiple monthly repayments – leaving them with just one repayment each month. This single monthly repayment could even be lower than the sum of current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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Dec 25, 2009 Comments Off
Dec 23, 2009 Comments Off
As temperatures plummet across the UK, MORE TH>N Home insurance is warning householders about the potential for burst water pipes and tanks, which could cause significant damage to properties. Furthermore, those who are planning to spend Christmas away from home are being advised to take precautionary measures.
Annette Lepper, Head of MORE TH>N Home insurance, said: “To return home and find that pipes have burst will completely ruin a family’s festive break. The damage caused can be as bad as that of flooding, fortunately households can take steps to prevent this from happening.”
MORE TH>N has offered the following tips to assist in avoiding frozen pipes:
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Homeowners whose houses are a little chilly this winter could consider taking out a secured loan to embark upon any work required to rectify the situation. One of many finance options available, a secured loan for home improvements could be used to replace draughty doors and windows for example. In addition, dilapidated central heating systems could be replaced with new and effective counterparts to transform a cold property into a cosy home. Borrowers who have also been dreaming of re-decorating their property could even utilise the secured loan to make this dream a reality.
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Dec 14, 2009 Comments Off
According to uSwitch.com, 56 percent of people will be purchasing fewer gifts this Christmas, 44 percent will be steering clear of gadgets, and 10 percent are intending to buy traditional gifts for children. Furthermore, 45 percent will reportedly be making cut backs where food and drink are concerned.
The research also uncovered that 78 percent will be bargain-hunting, whilst 12 percent will produce home-made presents. An additional 47 percent will be sticking to a tighter budget when it comes to buying gifts, and 23 percent will be buying them for less people. Up to £300 is planned to be spent on presents by 52 percent, with 11 percent of this group set to spend under £100. It was discovered that 63 percent will be shelling out up to £200 less on presents than they did last year, whilst 18 percent will be spending between £200 and £300 less.
However, of those who will be reining in their spending on children’s presents, it has been revealed that only 32 percent will explain the reason for this. In fact, 27 percent are not going to offer an explanation in the hope that children ‘won’t notice’, and 20 percent are of the opinion that children should be appreciative of having a present at all.
Despite attempts to cut back on Christmas expenditure, 40 percent of people will struggle with their finances as the New Year commences according to the research. What’s more, the period will be ‘very tight’ for 33 percent, whilst 7 percent are reportedly going to find it difficult paying their household bills.
Director of Consumer Policy at uSwitch.com, Ann Robinson, commented: “People still intend to enjoy Christmas, but in a more simple and honest way than perhaps we have seen over the last decade. Crucially, many households have heeded the lessons of the last year and have scrimped and saved, set budgets and agreed spending with friends and family. This kind of pre-planning is essential if you want to avoid financial strain in the New Year as the bills come in. “Yet despite this, four in ten people are still going to experience some financial worry next year as a result of Christmas. And that’s why it’s so important that children understand the concept of cutting back too – explaining what a tighter family budget can mean and getting children involved is a vital part of their development. Shielding them from the impact of the recession this Christmas or just hoping they won’t notice is not doing them any favours – understanding money, budgets and spending will set them up for the future. By taking the opportunity to explain why Santa isn’t being so lavish today, you could be helping them avoid their own financial pitfalls tomorrow.” …………………………………………………………………………………………………………………………………………….
Homeowners who have had to rely upon credit cards and personal loans in the past could consider consolidating these with a secured loan. A secured loan for debt consolidation is one of many finance options available, and could leave the borrower with just one monthly repayment as opposed to juggling several. This replacement monthly repayment could even be lower than current outgoings thereby leaving the borrower with extra money each month. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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Nov 30, 2009 Comments Off
With Christmas just around the corner, moneysupermarket.com has offered ‘ten top tips’ for those who are looking to reduce spending over the festive season.
1. Consumers should refrain from taking out store cards, despite incentives such as immediate discounts or money back, as interest rates are not likely to be competitive.
2. Supermarket credit cards, which are linked to loyalty schemes, are competitive and can offer good value.
3. If savings are not available and it is necessary to borrow the funds required, consumers could investigate credit cards with zero percent interest on purchases. However, consumers should be sure that the sum borrowed is appropriate to their individual circumstances and that it can be repaid within the introductory period.
4. By taking out a cashback credit card at the beginning of the year, consumers could save up for next Christmas with the money that is received from each purchase made with it.
5. Before taking out a loan during the run up to Christmas, consumers should shop around for the best deal that is most suitable for their circumstances.
6. Consumers should be aware of savings clubs that lock cash away throughout the year to provide shopping vouchers at Christmas. When embarking upon such a scheme, consumers are forfeiting interest payments and could even be charged high prices for the goods that they purchase with their vouchers.
7. Consumers should not make impulse purchases; instead they should do some online research to bag a bargain.
8. The internet can also be used to find and download vouchers and discount codes, which could prove beneficial when Christmas shopping.
9. Consumers should work out what they need to buy and what they can afford to buy, in order to set a budget. Sticking to this budget should then remove the possibility of getting carried away and starting the New Year in the red.
10. Individuals who are borrowing money to finance this Christmas should set up a regular savers account at the start of 2010 in preparation for next Christmas.
Head of banking at moneysupermarket.com, Kevin Mountford, commented: “Christmas can be a difficult time of year financially and the current economic climate is not making things any easier. Although there are a few options to spread the financial load at Christmas, the ideal time to start preparing is January. Preparation is the key to a hassle free festive season and savvy consumers with savings will be able to start the New Year without the burden of a Christmas – debt hanging over them.”
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Homeowners who have taken out several credit cards over the years, and now face an array of repayments each month, could consider tying these up with a secured loan. One of many finance options available, a secured loan for debt consolidation could leave the borrower with just one monthly repayment. Furthermore, this single monthly repayment could even be lower than existing outgoings – thus freeing up extra money each month, which could potentially be entered into a savings account. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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