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Getting Serious With Your Finances

With the start of a new year I felt it was time for a new post on keeping your personal finances in order. For those of you looking to take their finances more seriously – whether you’ve made it your New Year’s resolution or if you’re trying to plan for something special.

With the continued dire state of the British economy I’ve come to the realisation that there is no quick solution – and we shouldn’t expect one.

This is why it is so important to take control over your assets – whether you’re concerned about those unpaid debts, a reduced income or you’re simply struggling to make ends meet. For me it’s about looking after my family.

Whilst Creditwindow can offer a wide range of financial tools and products to help you its important to remember that resolving any finance related issue really lies with number 1 – you.

There are a large number of things you can consider when planning your finances for the new year, including:

Whether or not you really need that payday loan or credit card – this may seem like the simplest solution when faced with financial difficulty, however, a lot of the time you’re better off avoiding this. Debt will only add to your troubles – which is why I would recommend looking to the likes of the Money Advice Service - a Government run website that has been setup to help you manage your finances better.

Already in debt? Well – rather than going to a debt management company it may be easier (and cheaper) to look at one of the UK Debt counselling charities – such as StepChange - they offer free impartial advice and may be able to help you before you get into more trouble.

These really are just a few things you can do to help manage your money better and I don’t pretend to have all the answers, however, if you are looking for more advice I strongly recommend checking out our debt management articles for more help.

Protection For Consumers Under New Payday Loan Bill

In a new turn of events the British Government are introducing new laws to allow restrictions to be enforced on payday loan interest rates.

The Government is to make amendments to the Financial Services Bill to give the new Financial Conduct Authority (FCA – the replacement for the FSA) new powers to limit the high charges imposed by payday loan firms.

Essentially the FCA will have the power to investigate individual loan schemes and actually impose a cap on the amount of APR charged. However, it will be interesting to see how much affect this actually has – especially since an APR is an inaccurate measurement for a payday loan, given that it should be paid off by the next pay-date – i.e. by the following month. APRs are measured over a 12+ month period.

But the move does make sense – when a customer see’s an APR as big as 4000% it does cause alarm bells… but maybe this is why APR shouldn’t be used by short term lenders as a means of measure. A better representative measure would be an average interest rate over the loan period – i.e. one month.

Commenting on the new bill, Lord Sassoon said:

“We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution.”

If this move makes payday lending fairer and more ethical, I for one am all for it.

Can Payday Loans Repair Poor Credit Scores - Revisited

So can a payday loan or short term cash advance really help a poor credit rating?

I was re-reading an article on payday loans and credit scores that I wrote back in November 2011 and realised that it hadn’t really answered the question.

Well – it hadn’t answered the question to my satisfaction, which is why I felt it needed addressing again – so consider this article it’s official SEQUEL!

After looking at payday loans and the way they’re administered and whether they actually appear on credit scores I finally came to a conclusion that I was happy with.

A number of years ago, when monthly cash advances first made their mark in the UK, the industry was still too fledgling and too far removed from traditional financial services for it to be considered as a credit scoring factor. However, more recent research suggests that this is no longer the case.

When you take out a payday loan with a reputable supplier – be it Wonga.com, PaydayUK or QuickQuid, the loan will appear in your credit score.

More importantly – when you repay the short term loan this will also appear on your credit score. This suggests that payday loans could be more useful than a simple emergency source of credit.

Think about it for a minute… you badly need credit to help pay bills or help buy a new car. Unfortunately no one will lend to you because your credit history is just too poor.

But hang-on a second – you’re no longer the irresponsible spender you once were. But the lender or credit card company doesn’t know that – based on your credit score.

So you turn to a payday lender for a quick, short term loan – you repay the full amount at month-end. This positive repayment is shown on your credit history – indicating that you are once again a good bet.

Now I’m not advocating payday loans as the saviour of poor credit scores… but this example surely shows you the potential.

Brits Driven Off Roads By Growing Petrol Costs

Recent figures by the Department of Transport suggests that the ever increase in fuel prices are not only “fuelling” the recession but are actually pricing British motorists off the road completely.

With the cost of petrol teetering on the 140p per litre mark there is a very real fear that the ongoing hikes are simply going to bring the country to a standstill. The figures show that country roads saw a drop by 5.2%, heavy goods traffic dropped by 4.4% and the category that covers motorbikes, buses and coaches saw a whopping 19.2% drop.

The OFT have started an investigation into how oil companies set their pump prices… which is fine but let’s not forget that the UK Government keeps adding on fuel duty. It’s all very well the OFT investigating the firms behind our fuel but there is a strong suggestion that the source of our motoring misery lies with the politicians.

Quentin Wilson, a spokesperson and motoring expert for FairFuelUK told the Mirror:

“The Government has to recognise that the huge cost of filling our cars and vans has contributed to the recession.

“The first thing the Treasury must do is to bin the 3p tax hike planned for January and listen to FairFuelUK’s economic research, that shows a significant cut in fuel duty will stimulate growth and create jobs.”

In addition to this the cost of fuel is believed to be behind the spiralling debt problems in the UK as many low income families, young people are turning to credit cards or payday loans to help fund their motoring.

Young Drivers: Reduce The Cost Of Insurance With Telematics

Find out how you can reduce the cost of your young drivers’ car insurance even before you pass your test!

Are you currently learning to drive? If so there is a chance you’re learning with an instructor with the odd bit of tuition from a kindly parent.

If you’re like any other young learner driver out there you’re probably a bit worried about how much your young drivers insurance is going to cost once you qualify.

Well if you look at buying learner driver insurance before you qualify you could actually reduce the overall cost of motoring. Here’s how:

If you take out provisional car insurance with iKube you will not only be covered whilst you’re learning to drive but you will continue to be covered after you pass. However, as with any car insurance policy it’s important to notify your insurer.

Some insurers tend to hike up your learner driver car insurance once you qualify – in fact some cancel it altogether. This seems a little sneaky to me…

So it sounds like a no-brainer – not only are you saving yourself money by taking out car insurance before you pass but it doesn’t increase after you do!

But, as with anything that sounds too good to be true, there is a slight catch. With iKube you agree to be monitored by a tracking or “telematics” device. This is simply a little black box that tracks the time of day you’re driving.

iKube simply asks that you don’t drive between 11pm – 5am. They ask this as late night tends to be riskiest time to drive. If you do drive late at night you incur a charge for driving late at night.

However, if you drive well, safely and avoid late night driving you could find that your car insurance premium reduces significantly when it comes around to renewing your policy.

Cheaper than taking out a payday loan to pay for your car insurance? Damn right it is!

iKube Insurance is a young and learner driver insurance product – to find out more please visit: http://www.ikubeinsurance.com

Image: FreeDigitalPhotos.net

How to Control Anxiety Over Bad Credit

It’s not uncommon to find yourself in a poor financial situation. Layoffs, underperforming investments, unforeseen expenses, and budgeting mistakes can all lead to issues with managing your finances, and when those issues start to cause debt, it can lead to bad credit.

Bad credit affects people more than just financially. It can also lead to a great deal of stress. Those that are suffering from bad credit often feel as though their lives are going to be forever changed – as though they will be unable to overcome their credit issues.

This can cause a lot of stress, and indeed, it appears as though many people suffer from anxiety issues because of their financial situation. That’s why it’s important for your mental health to control this stress while you rebuild your credit.

Tips to Control Stress Due to Bad Credit

· Create a Financial Plan

Easily the most important tool for controlling your stress is to have a plan in place to rebuild your credit. Your budget should be planned out as best you can, with details that will ensure that you keep to it. Financial planning gives you an eye towards the future, and it shows you how you’re going to make sure that your credit score sees genuine improvement over time.

· Create an Emergency Account

Related to creating a financial plan is creating some type of emergency account that you can use to pay off bills in the event of an unforeseen expense. It’s not just planning for the unforeseen expenses – it’s also preparing for the other bills you need to pay in order to keep rebuilding your credit. When you have this emergency account, you’ll find yourself less concerned about what happens if something comes up financially.

· Learn Proper Credit Strategies

It’s also a good idea to take some type of credit class or research smart credit decisions. When it comes to controlling your anxiety about your finances, knowledge provides a great deal of power. As long as you know what the right decision is each time, you won’t doubt yourself and you’ll be far more confident when you’re dealing with your debt.

· Organize Your Bills and Bill Pay

Organization is also an important tool for reducing the stress of low credit. You know that you’ll have to make every payment from now on, and if you’re still finding every bill and forgetting which ones are due when, you’ll put yourself in a position to panic. Sign up for bill pay when possible, and make sure that you have some type of reminder calendar to ensure that you make each payment on time as needed.

· Find Free Finance Hobbies

Finally, it’s helpful to get a little bit of extra money in your pocket when you can, in order to fund the emergency fund and decrease the stress you experience over finances. See if there is anything you can do for free (no financial investment) to earn a bit of extra money. Even something like mowing lawns or starting a blog can be beneficial. You may only work a couple hours per week on these projects and make very little, but that extra money can fund your account and reduce some of your financial stress.

Controlling the Anxiety of Poor Credit

One of the main reasons to have good credit is so that you can improve your quality of life. But if you’re letting the stress of overcoming your poor credit impact the way you feel, then you’re not experiencing that quality of life you crave. Use the above tips to reduce anxiety while you rebuild your credit and you’ll find that you’ll not only improve your credit score – you’ll improve your life as well.

About the Author: Ryan Rivera experienced significant stress from his financial decisions. He has a website about controlling anxiety at www.calmclinic.com.

UK Workforce Turning To Payday Loans, According to Unite

UK Workforce Turning To Payday Loans, According to Unite According to research undertaken by Unite increasing numbers of workers are turning to payday loans since their wages run out before month-end.

According to the report London-based workers are thought to borrow the large majority of payday loans for housing.

The report suggested that two fifths of workers who take out these short term loans use the money for a variety of things – including rent / mortgage, food and utility bills.

This raises concerns that if consumers are unable to meet the cost of living through wages it’s unlikely that they will be able to repay the payday loan effectively.

It should be noted that the ridiculously high APR attached to payday loans is not an accurate measurement of the interest repaid as it’s over a yearly period. However, whilst this may be the case it’s also worth bearing in mind that, if constantly deferred over a number of months, the levels of interest mounts up – leading to spiralling debt problems.

Whilst payday loans are clearly useful if you need a quick solution to help pay emergency bills they should only be used as a last resort or if you’re absolutely sure that you can meet repayments on your next payday. Otherwise it may be worth simply calling the company you owe money to to arrange a repayment plan. Whilst this may not appeal it is a safer way of controlling your debt than turning to a short term solution.

If you do need a quick solution then compare payday loans with Creditwindow.

Transform Your Nest into a Pot of Gold

A few decades back, when a person retired, he / she did not have to worry much about expenses and how to meet them. The average amount of money that a working individual could save was enough for the retirement years. With the increase in the cost of living and the lack of a proportionate increase in the family income, it has become a difficult task for retired people to make ends meet.

The situation is a bit easier for the home owners. They can release the equity on their home and use the cash received for their other expenses. Equity release plans are a way through which older home owners can unlock a part of the money tied up in their property and get some tax exempted cash. The equity release schemes are of two kinds – life time mortgages and home reversion plans.

Life time mortgages are the most popular plans and the majority of those who are going for equity release are opting for this. Under this plan, you would take out a loan on your property which will be paid off after the death or removal of the last surviving partner to a retirement or a care home. Thus there won’t be any monthly payments to worry about. After your demise the equity provider would sell the property, take their share and give the remaining amount to the rest of your family.

There are several benefits of this plan. You can release the equity on your property even at the age 55. If there is any price rise in the real estate market in the mean time, then you will benefit from it. You will get a fair estimate of the amount you can expect to receive from the scheme. Your property might generate enough money to leave some for your family and pay off your mortgage.

However, there are some disadvantages that you have to consider. The interests are compounded and thus the debts keep mounting. Therefore, you might not have any money left for your heirs after paying off the mortgage. You cannot pay off the debt before time. If you do, then early repayment charges will be applicable. Equity release on property may also disqualify you for any government pension grants.

The other equity release plan is the home reversion plan. Under this plan, you can sell the entire or a portion of your home to a home reversion company. When you sell part of it, the other part will be held in trust for you. When you sell to a reversion company you will get lump sum cash from them and the right to live in your own home rent free. After your death or removal to a retirement home, your property will be theirs. If you sell part of your home then they will sell that part and pay off the mortgage. The remaining will go to the trust. One major advantage is that you will know the exact amount of money that you are leaving for your heirs. But then you will become a tenant in your own home.

Author bio:

Jonathan is a freelance financial adviser. He has recently started writing articles and blogs. Here he talks about the advantages and disadvantages of the equity release on property plans.

Take Steps – Keep the Debt Collectors at Bay

A credit card is something that we all have and need. Be it an impulsive shopping spree or an unforeseen medical expense, a credit card has always been our friend. The importance of a credit card can hardly be overstated.

The problems begin when you start receiving the bills. If not paid on time, they turn into debt and then into nightmares that refuse to leave you even in your waking hours. But being a defaulter doesn’t mean you can be harassed by the debt collectors. You have the right to fight them back. Given below are some of the steps that you can take.

Find out exactly who is harassing you. Once done, start collecting evidence. If they are calling you it’s important to keep a note of the calls along with the time, duration, the name of the person you talked to and the gist of the conversation. Save all the mails pertaining to the debt. This is very important when you file a formal complaint.

Begin by complaining to the lending institute directly. If it does not solve the problem then you can lodge a complaint with a professional body.

The credit card company might also be a member of the Trade Union that abides by a Lending Code. If the lender is violating any of the codes then you can lodge a complaint with the Trade Association against them.

If a solicitor is harassing you on behalf of the lender then it will be categorized under professional misconduct. For this you have to go through the formal complaints procedure of the law firm. If they do not take any steps against the solicitor then you will have to lodge a formal complaint regarding credit card harassment with the legal associations that operate in your area.

If you are in the right then the law is on your side. Go ahead and claim the peace of mind and dignity that you are entitled to.

This guest article was submitted on behalf of the Consumer Law Firm Centre – Find out more about credit card harrassment.

Wear a uniform? Pay less Tax

Do you have a uniform or work clothes that you have to wear to work? Then you can make your uniform act as a source of tax refund.

The HMRC allows a set amount of tax refund for the maintenance of the work uniform. It includes anything from a simple t-shirt to an elaborate uniform like that of a policeman or a nurse.

In order to be eligible for the tax refund, you have to qualify in all the following criteria.

You must wear a recognizable uniform for work that is unsuitable for any other place or occasion. It might or might not have a logo.
You have to wear the uniform while you are on the job, working.
You have to pay for the upkeep of the uniform and replace with your money when required. If your employer pays you an allowance for this, then you do not qualify for the refund, even if you do not take the allowance.
You have not defaulted on your income tax in the years for which you are claiming the refund.

Now comes the most important question- how much can you expect?

It depends on the industry you are associated with and the tax that you pay. The standard maintenance allowance is £60 and the minimum that you can claim is 20% of this amount, i.e. £12. If you pay a higher rate of tax then you can claim 40%. This rate was £45 before April, 2008. So, you have to keep it in mind while applying for the refund.

Those who are claiming it for the first time or have an amount that is more than £1,000 they have to do it by post. You can simply call them the second time round or if you have a lower claim.

The letter that you send to the tax office claiming the uniform tax refund should have the following information:

Your employment details for the last four years, along with the details of the employers with whom you worked.
Your job title and the industry that you are associated with
Detail of the laundry allowance or cleaning services that your employer provides, if applicable
Details of your uniform

How do you want the refund- deducted from the tax of the current year or as a check for the amount?

It might take about five weeks for the claim to get processed. Once done, the next time will be quicker.

This guest article was submitted on behalf of u-tax.co.uk – find out how you can get a uniform tax refund.

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