Motorists may well see the financial burden having a car places on them increase in the coming months, it has been suggested.
The news comes as research released by Deloitte reveals that the cost of third party car insurance has risen by ten per cent over the last 12 months. In August 2006, the average cost of such a premium stood at 473 pounds. However, a year later the typical policy now amounts to some 519 pounds - with such an increase potentially squeezing drivers' abilities to meet other monetary demands attached to their vehicle such as MOT, tax and fuel, not to mention areas such as credit cards and personal loans.
Meanwhile, the cost of comprehensive car insurance has also risen over the last 12 months - up from 441 pounds to 458 pounds - a growth of some four per cent. Overall, premiums have increased in nine of the past 12 months - the first period of "sustained increases" the firm claims to have taken place since 2003. The news comes despite reports that price comparison websites have helped to curb growth in insurance costs over recent months.
Commenting on the findings, Catherine Barton, insurance partner at Deloitte, said: "The key reason for the increase is insurers seeking to improve profitability. In the past several years, the underlying motor insurance market performance has been deteriorating with insurers' results being buoyed by releases from their reserves. This situation is not sustainable in the long term and, combined with the impact of major events such as the 2007 floods, rates were going to have to go up. We believe premiums will continue to rise for a few months yet."
As a result, Ms Barton recommended that despite rising insurance costs, those who take the time to scour the market should still be able to find a competitively-priced policy. She added that those who fail to shop around are "likely to have seen bigger increases" on how much they are paying for premiums, which in turn may impact upon their ability to service debts accrued via secured loans, overdrafts and credit cards.
The study from Deloitte follows findings by the RAC that running costs for vehicles run into thousands of pounds. Carried out last month, the findings highlighted that it costs some 5,627 pounds to keep the average family car on the road every year, with fuel, tax, maintenance and insurance expenses accounting for just under 2,000 pounds. And with depreciation costs also rising, those looking either to sell or purchase an automobile should do so with care as otherwise they may find themselves on a "one-way road to debt".
Meanwhile, consumers aiming on purchasing a car may be well advised to apply for a personal loan as Brian Spinks, head of lending for the firm, suggested that in doing so they could be left with more "bargaining power" at the showroom. He added that those looking to take out a loan to fund the purchase of a vehicle should not only ensure that they will be in a position to meet monthly demands for payment, but also that they can afford to cover the day-to-day running costs. The study also showed that the average loan taken out for a vehicle purchase stands at just below 10,000 pounds.
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Sunday, February 3, 2008
Tips on How to Teach Your Kids to Save Money
You should be able to teach your kids on how to save money. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow old. Learn to make a game out of it.
A great way to do this is to use what I call a "head fake." This means great a game that make your children think they are playing a game but they are actually learning the fundamentals of saving money and how money works!
Here are some tips on how you can teach your children how to save money:
1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.
When they are old enough, help them set up the one business that almost every kid goes into... the lemonade stand! Help they profit and them invest those profits back into the business to make it grow... fun and real life education!
2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their life. It is important that you entertain questions from them about money and you should be able to answer them right away.
Open up a savings account for them and get them started with $25 dollars. My mom did that for me and it worked like a charm!
3. When giving them their allowances. You need to give them their allowances in denominations. Then you can encourage them that they should keep a certain bill for the future.
You can actually force them to save some of their money. Challenge them that they cannot make their new savings account reach this particular level.
4. You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
5. If you don't fear the future of your children, teach them the entrepreneurial spirit and how to use money to make money. There is a great book by Robert Kiyosaki that was written for kids. This is truly the greatest gift you can give your children.
This is also a great way to keep yourself on task with your money and debt. If you have to stay responsible and be a good example for your children, you will find yourself keeping your budget, planning your purchases, and becoming a true money master!
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A great way to do this is to use what I call a "head fake." This means great a game that make your children think they are playing a game but they are actually learning the fundamentals of saving money and how money works!
Here are some tips on how you can teach your children how to save money:
1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.
When they are old enough, help them set up the one business that almost every kid goes into... the lemonade stand! Help they profit and them invest those profits back into the business to make it grow... fun and real life education!
2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their life. It is important that you entertain questions from them about money and you should be able to answer them right away.
Open up a savings account for them and get them started with $25 dollars. My mom did that for me and it worked like a charm!
3. When giving them their allowances. You need to give them their allowances in denominations. Then you can encourage them that they should keep a certain bill for the future.
You can actually force them to save some of their money. Challenge them that they cannot make their new savings account reach this particular level.
4. You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.
5. If you don't fear the future of your children, teach them the entrepreneurial spirit and how to use money to make money. There is a great book by Robert Kiyosaki that was written for kids. This is truly the greatest gift you can give your children.
This is also a great way to keep yourself on task with your money and debt. If you have to stay responsible and be a good example for your children, you will find yourself keeping your budget, planning your purchases, and becoming a true money master!
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Free Credit Report - Stop! You Need to Know This
Under federal law you are entitled to get a copy of your Free Credit Report once every 12 months, when you request it form the three main American Credit Report Bureaus. It's important to note that while you can get your Report for free you cannot get your actual Credit Score for free. You have to pay extra for this. Also be careful of the added products and services that these 3 bureaus will offer you.
About Your Free Report
If you have borrowed money for a car, house, maybe a stereo or some other purchase then these 3 big Bureaus will have your information on their file. It's important to note that each place you get the product from has to then pass your loan and credit information back to these bureaus, but in most cases they will pass it back to just one, therefore to get an accurate credit report and credit score it's essential that you get a credit report form all three of the main credit report bureaus, as their information will vary. When a creditor is trying to determine whether they will loan you the money they look at all 3 bureaus and make the middle score (not to be confused with the average).
How your Credit score is determined?
It's absolutely important to understand what your credit report is exactly made up of. Here is a list of the following ingredients:
Payment History 35%
Amount Owed 30%
Length of Credit History 15%
New Credit 10%
Types of Credit Used 10%
Improving your score:
Do Not open a number of new credit cards that you don't need just to increase available credit. Using these approaches could backfire and actually lower the score.
Try to keep balances low on credit cards and other revolving credit. Paying off debt rather than moving it around. Owing the same amount but having few open accounts may lower the score. Try not to close unused credit cards as a short term strategy to raise the score.
If you look at at your Credit Score and it's terrible, what to do?
There are many options open to you to prevent you having to file for bankruptcy and a huge number of options to put a plan into practice to get you on the path back to a good score.
Credit Counseling
These business will look at your economic profile and determine just what your position is, then they can go about fixing it. They will normally create a monthly plan and budget to get you out of debt. They will look at how much money you're spending and income you have coming in - then they will attack both areas to optimize you financial situation. Look for the following list of additional services:
Budget Counseling
Savings and Debt Management
They education materials should be for free
Work out what the fees are, including monthly and set up fees.
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About Your Free Report
If you have borrowed money for a car, house, maybe a stereo or some other purchase then these 3 big Bureaus will have your information on their file. It's important to note that each place you get the product from has to then pass your loan and credit information back to these bureaus, but in most cases they will pass it back to just one, therefore to get an accurate credit report and credit score it's essential that you get a credit report form all three of the main credit report bureaus, as their information will vary. When a creditor is trying to determine whether they will loan you the money they look at all 3 bureaus and make the middle score (not to be confused with the average).
How your Credit score is determined?
It's absolutely important to understand what your credit report is exactly made up of. Here is a list of the following ingredients:
Payment History 35%
Amount Owed 30%
Length of Credit History 15%
New Credit 10%
Types of Credit Used 10%
Improving your score:
Do Not open a number of new credit cards that you don't need just to increase available credit. Using these approaches could backfire and actually lower the score.
Try to keep balances low on credit cards and other revolving credit. Paying off debt rather than moving it around. Owing the same amount but having few open accounts may lower the score. Try not to close unused credit cards as a short term strategy to raise the score.
If you look at at your Credit Score and it's terrible, what to do?
There are many options open to you to prevent you having to file for bankruptcy and a huge number of options to put a plan into practice to get you on the path back to a good score.
Credit Counseling
These business will look at your economic profile and determine just what your position is, then they can go about fixing it. They will normally create a monthly plan and budget to get you out of debt. They will look at how much money you're spending and income you have coming in - then they will attack both areas to optimize you financial situation. Look for the following list of additional services:
Budget Counseling
Savings and Debt Management
They education materials should be for free
Work out what the fees are, including monthly and set up fees.
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Federal Credit Report - FAQ's
Did you are entitled to your own Federal Credit Report? maybe not? Over 75% of Americans don't even know what their Credit Score is! and a further 20% have never even seen their Score! If you want to be smart when applying for a loan then it's essential to get your Report and get answers to your questions.
I've heard o the Fail Debt Collection Practices Act (FDCPA) what does it do and what are my rights?
It applies to any personal or family household debts. This might include any money owed for the purchase of a house, car, or medical care. This also includes Credit Cards or other Charge Accounts. FDCPA makes it illegal for debt collectors from engaging in any unfair or deceptive practices during collection of these kind of debts. Any abusive practices is also illegal.
Some of your rights that falls under the (FDCPA) include:
Debt Collectors cannot be untruthful when collecting any debt records. For example: falsely implying that you may have committed an actual crime.
Debt Collectors need to stop contacting you. Provided you have asked them to in writing.
Debt Collectors must not make contact with you at work if they know your employer disapproves.
Debt Collectors must not harass, or stop you saying something or try to abuse you in any way.
Debt Collectors must not contact you at only a time period of between 8 a.m. and 9 p.m.
Debt Collectors cannot identify themselves to you at all, while on the phone.
Who Has The Right To View My Federal Credit Report?
If someone has a legitimate business need then they can get access to your Report, including your Credit Score.
The criteria for doing so must include the following:
Any Insurance companies.
They are considering granting you credit.
Employers and potential employers (but only with your consent).
Companies with which you have a credit account for account monitoring purposes.
People considering your application for a Government license or a benefit.
A state or even a local Child Support Enforcement Agency (CSEA).
A Government Agency but information that is limited usually to your name, address, former addresses and any current or former employers.
Any Debt Collectors.
Your Landlords.
Because a recent change tot eh Federal Credit Reporting Act you are now legally
entitled to get a copy of your Report. There are only 3 nationwide consumer reporting companies .
Your Report - Free Nation Wide Reporting
A recent amendment to the federal Fair Credit Reporting Act requires that each of the nationwide consumer reporting companies:
1. Equifax
2. Experian
3. TransUnion
Under US law they have to provide you with a free copy of your credit report You can request for one only once every 12 months.
Hopefully this article has answered some of your questions regarding Federal Credit Report, feel free to respond with any comments of questions, tips or advice.
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I've heard o the Fail Debt Collection Practices Act (FDCPA) what does it do and what are my rights?
It applies to any personal or family household debts. This might include any money owed for the purchase of a house, car, or medical care. This also includes Credit Cards or other Charge Accounts. FDCPA makes it illegal for debt collectors from engaging in any unfair or deceptive practices during collection of these kind of debts. Any abusive practices is also illegal.
Some of your rights that falls under the (FDCPA) include:
Debt Collectors cannot be untruthful when collecting any debt records. For example: falsely implying that you may have committed an actual crime.
Debt Collectors need to stop contacting you. Provided you have asked them to in writing.
Debt Collectors must not make contact with you at work if they know your employer disapproves.
Debt Collectors must not harass, or stop you saying something or try to abuse you in any way.
Debt Collectors must not contact you at only a time period of between 8 a.m. and 9 p.m.
Debt Collectors cannot identify themselves to you at all, while on the phone.
Who Has The Right To View My Federal Credit Report?
If someone has a legitimate business need then they can get access to your Report, including your Credit Score.
The criteria for doing so must include the following:
Any Insurance companies.
They are considering granting you credit.
Employers and potential employers (but only with your consent).
Companies with which you have a credit account for account monitoring purposes.
People considering your application for a Government license or a benefit.
A state or even a local Child Support Enforcement Agency (CSEA).
A Government Agency but information that is limited usually to your name, address, former addresses and any current or former employers.
Any Debt Collectors.
Your Landlords.
Because a recent change tot eh Federal Credit Reporting Act you are now legally
entitled to get a copy of your Report. There are only 3 nationwide consumer reporting companies .
Your Report - Free Nation Wide Reporting
A recent amendment to the federal Fair Credit Reporting Act requires that each of the nationwide consumer reporting companies:
1. Equifax
2. Experian
3. TransUnion
Under US law they have to provide you with a free copy of your credit report You can request for one only once every 12 months.
Hopefully this article has answered some of your questions regarding Federal Credit Report, feel free to respond with any comments of questions, tips or advice.
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Bankruptcy Credit Report - Know the Facts
Bankruptcy Credit Report information is essential before filing for Chapter 13 which should be your last resort. The essential action you do BEFORE filing for Bankruptcy is to get a Credit Report on your financial situation. From here there are many debt reduction strategies you can enact well before you hit the fatal Chapter 13 button, however if you do have to file for bankruptcy then be sure to know the best way to go about it.
Bankruptcy Credit Report - Get and Review your Credit Report.
The three main sources of obtain your Credit Report from are Experian (formally TRW), then Equifax, and Trans Union. They will provide information on your Credit including all loans, such as House and Car loans. They will also have information on your Credit Credit debts and any other smaller loans. If you don't ask for you Credit Score you can obtain these Credit Reports for Free.
Debt Reduction Bankruptcy Credit Report
There are so many avenues you can pressure to find out ways around filing for Bankruptcy. Remember that If you file for Bankruptcy then your record will stay on public records for up to ten years, It will stay on Credit reports for around seven. One good point to note that is you can still access credit from financial institutions during this time period. Because your past debts have now been paid and you don't owe any money on them, as long as you prove that you are generating a good income and have since built up a bit of a savings history especially in the last six months then yo might find yourself in a bit of luck.
The many ways you can try do reduce your debts include the following:
Try calling up each of your Creditors and ask for an offer for settling today. This method has been known to work and can reduce your loan repayment amount to 85% of the total - you could even go lower - like any negation process try and go for the lowest amount without being to outrageous, anywhere form 50% and upwards, your repayment history and likely hood of repayment should way in as factors. If you are about to go into Bankruptcy and they think that too then it's better they get some money compared to nothing, so they could take you up on the offer.
Bankruptcy Credit Report - Facts
Did you know that Every 30 seconds in the United States someone files for bankruptcy.
Types of Bankruptcy
There are two types of Bankruptcy
Chapter 7 bankruptcy is when a court appoints a Trustee. This Trustee can liquidate or even sell valuables that you own to pay your creditors.
The Chapter 13 bankruptcy is when debt is consolidated into a single monthly payment. Which can go on for no longer longer than five years. You don't have to repay all of your debt only as much as you can afford.
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Bankruptcy Credit Report - Get and Review your Credit Report.
The three main sources of obtain your Credit Report from are Experian (formally TRW), then Equifax, and Trans Union. They will provide information on your Credit including all loans, such as House and Car loans. They will also have information on your Credit Credit debts and any other smaller loans. If you don't ask for you Credit Score you can obtain these Credit Reports for Free.
Debt Reduction Bankruptcy Credit Report
There are so many avenues you can pressure to find out ways around filing for Bankruptcy. Remember that If you file for Bankruptcy then your record will stay on public records for up to ten years, It will stay on Credit reports for around seven. One good point to note that is you can still access credit from financial institutions during this time period. Because your past debts have now been paid and you don't owe any money on them, as long as you prove that you are generating a good income and have since built up a bit of a savings history especially in the last six months then yo might find yourself in a bit of luck.
The many ways you can try do reduce your debts include the following:
Try calling up each of your Creditors and ask for an offer for settling today. This method has been known to work and can reduce your loan repayment amount to 85% of the total - you could even go lower - like any negation process try and go for the lowest amount without being to outrageous, anywhere form 50% and upwards, your repayment history and likely hood of repayment should way in as factors. If you are about to go into Bankruptcy and they think that too then it's better they get some money compared to nothing, so they could take you up on the offer.
Bankruptcy Credit Report - Facts
Did you know that Every 30 seconds in the United States someone files for bankruptcy.
Types of Bankruptcy
There are two types of Bankruptcy
Chapter 7 bankruptcy is when a court appoints a Trustee. This Trustee can liquidate or even sell valuables that you own to pay your creditors.
The Chapter 13 bankruptcy is when debt is consolidated into a single monthly payment. Which can go on for no longer longer than five years. You don't have to repay all of your debt only as much as you can afford.
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Do Not Go Into Hiding If You Suspect You Are At Risk Of Foreclosure - Call Your Lender
Do not go into hiding if you do suspect that you are at risk of foreclosure because you do have many available options that could help to prevent this from happening to you, so find out right now what you should be doing about it.
In this article I want to provide you with some helpful advice that might be just what you need in order to get out of this terrible situation that has unfortunately put you into a downward spiral financially. Running away from the fact that you have old debts that should definitely be taken care of as soon as possible is only putting off the inevitable and too many of us do that from time to time.
It is very surprising to some people when they decide to contact their mortgage lender, in order to find out about some type of payment arrangement, and the lender actually works something out that is feasible for them so that they can get caught up on their monthly mortgage payments.
You should be doing the same thing, do you hear me?
If you have deep concerns that you are in danger of foreclosure, do something before the mortgage company starts with any proceedings, otherwise you might just be waiting entirely too late and they probably will not be nearly as willing to work something out with you to catch up with your monthly mortgage payments because of you neglecting it for so long.
Yes, some lenders, creditors, and so on, can really be very mean when speaking with them over the telephone but you have got to stop being afraid of them, they can not eat you! You are an adult now and having bills is something that most of us will have to look forward to for the rest of our lives.
Even people with a great deal of money that normally have no trouble paying any of their monthly debts, do from time to time run into a little bit of financial struggle. It is nothing at all to be ashamed of and there is no reason to feel as though this kind of thing only happens to you because that is definitely not the case.
Believe it or not, many people have it much, much worse than you could ever even imagine. Foreclosure occurs all the time and many times it very well could have been prevented by the individual just choosing to speak with a representative in order to agree on some sort of payment arrangement.
It would be foolish for you to continue hiding out, fearing what might possibly happen because doing that is only going to cause something terrible to happen.
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In this article I want to provide you with some helpful advice that might be just what you need in order to get out of this terrible situation that has unfortunately put you into a downward spiral financially. Running away from the fact that you have old debts that should definitely be taken care of as soon as possible is only putting off the inevitable and too many of us do that from time to time.
It is very surprising to some people when they decide to contact their mortgage lender, in order to find out about some type of payment arrangement, and the lender actually works something out that is feasible for them so that they can get caught up on their monthly mortgage payments.
You should be doing the same thing, do you hear me?
If you have deep concerns that you are in danger of foreclosure, do something before the mortgage company starts with any proceedings, otherwise you might just be waiting entirely too late and they probably will not be nearly as willing to work something out with you to catch up with your monthly mortgage payments because of you neglecting it for so long.
Yes, some lenders, creditors, and so on, can really be very mean when speaking with them over the telephone but you have got to stop being afraid of them, they can not eat you! You are an adult now and having bills is something that most of us will have to look forward to for the rest of our lives.
Even people with a great deal of money that normally have no trouble paying any of their monthly debts, do from time to time run into a little bit of financial struggle. It is nothing at all to be ashamed of and there is no reason to feel as though this kind of thing only happens to you because that is definitely not the case.
Believe it or not, many people have it much, much worse than you could ever even imagine. Foreclosure occurs all the time and many times it very well could have been prevented by the individual just choosing to speak with a representative in order to agree on some sort of payment arrangement.
It would be foolish for you to continue hiding out, fearing what might possibly happen because doing that is only going to cause something terrible to happen.
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Britain's Financial Position Has Strengthened 'Substantially'
Britons may be in a better position to make repayments on loans and other forms of borrowing as new figures reveal that household wealth has increased dramatically during the last decade.
In a study released by Halifax, the net capital held by British consumers - after deducting any outstanding debt balances - stood at 6,336 billion pounds as of the end of last year. This is a growth of some 127 per cent from the 2,795 billion pounds recorded at the end of 1996. Overall, the total value of household assets increased by 4,343 billion pounds during the ten-year period to 7,627 billion pounds. Meanwhile, typical earnings and retail prices have surged by 52 and 30 per cent respectively.
And although household debt was shown to have risen from 489 billion pounds to 1,292 billion pounds during the period (growth of some 803 billion pounds), consumers could be more able to service demands for payments on secured loans and other forms of borrowing, as asset growth has more than quadrupled debt levels.
Overall, the drive in household wealth was attributed to the increasing value of property over the past decade as equity in residential homes accounted for a total of 2,702 billion pounds last year - a rise of 244 per cent from figures recorded in 1996. The news comes as net financial assets, which are made up of the value of financial holdings minus the value of outstanding consumer credit loans, surged from the 2,009 billion pounds noted in 1996 to 3,634 billion pounds in 2006.
Meanwhile, total savings in schemes such as bank and building society accounts, pensions and company shares are predicted to surpass the 4,000 billion pounds mark by the end of this year - a figure which is more than triple the amount of the nation's household debt. The financial services firm also indicated that deposit-based savings make up about a quarter of British households' total financial wealth.
Commenting on the figures, Martin Ellis, chief economist at Halifax Financial Services, said: "The financial position of households in total has strengthened substantially over the past decade. Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace. Housing has played an important part in increasing wealth, but there has also been a significant rise in the value of investments in financial assets in the last ten years."
As a result of rising property prices, homeowners could well discover that they have more equity against which they are able to borrow. In August, Sue Anderson, head of member and external relations from the Council of Mortgage Lenders, reported that a rising number of consumers are looking to remortgage property as a means of debt consolidation, in which they are able to replace expensive unsecured debts with a more competitively-priced secured loan. However, Ms Anderson advised that those considering such a form of secured loans should ensure that they are always in a position to make repayments, something which could well be applied to anyone looking to apply for a loan.
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In a study released by Halifax, the net capital held by British consumers - after deducting any outstanding debt balances - stood at 6,336 billion pounds as of the end of last year. This is a growth of some 127 per cent from the 2,795 billion pounds recorded at the end of 1996. Overall, the total value of household assets increased by 4,343 billion pounds during the ten-year period to 7,627 billion pounds. Meanwhile, typical earnings and retail prices have surged by 52 and 30 per cent respectively.
And although household debt was shown to have risen from 489 billion pounds to 1,292 billion pounds during the period (growth of some 803 billion pounds), consumers could be more able to service demands for payments on secured loans and other forms of borrowing, as asset growth has more than quadrupled debt levels.
Overall, the drive in household wealth was attributed to the increasing value of property over the past decade as equity in residential homes accounted for a total of 2,702 billion pounds last year - a rise of 244 per cent from figures recorded in 1996. The news comes as net financial assets, which are made up of the value of financial holdings minus the value of outstanding consumer credit loans, surged from the 2,009 billion pounds noted in 1996 to 3,634 billion pounds in 2006.
Meanwhile, total savings in schemes such as bank and building society accounts, pensions and company shares are predicted to surpass the 4,000 billion pounds mark by the end of this year - a figure which is more than triple the amount of the nation's household debt. The financial services firm also indicated that deposit-based savings make up about a quarter of British households' total financial wealth.
Commenting on the figures, Martin Ellis, chief economist at Halifax Financial Services, said: "The financial position of households in total has strengthened substantially over the past decade. Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace. Housing has played an important part in increasing wealth, but there has also been a significant rise in the value of investments in financial assets in the last ten years."
As a result of rising property prices, homeowners could well discover that they have more equity against which they are able to borrow. In August, Sue Anderson, head of member and external relations from the Council of Mortgage Lenders, reported that a rising number of consumers are looking to remortgage property as a means of debt consolidation, in which they are able to replace expensive unsecured debts with a more competitively-priced secured loan. However, Ms Anderson advised that those considering such a form of secured loans should ensure that they are always in a position to make repayments, something which could well be applied to anyone looking to apply for a loan.
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Brits 'Not Thinking Enough' About Finances
Millions of Britons could be set for financial hardship in later life, it has been suggested.
According to research released by Baring Asset Management, 33 per cent of British adults - some 15.1 million people - are currently not putting any money into pension schemes, which could consequently see them struggle to manage their finances as they get older. And by doing so consumers may begin to face difficulties in servicing personal loan repayments and other demands on their spending. The study also indicated that it is women who could encounter the greatest financial management problems as nearly four in ten (38 per cent) of females do not have a pension. This compares to some 27 per cent of men who do not have the financial product.
Research from the financial services firm also revealed that just over a third (34 per cent) of 25 to 34-year-olds currently do not have any sort of pension plan set into place, with just under a quarter of 35 to 54-year-olds lacking a scheme. However, it could be the over-55s who are set for the most pronounced trouble in servicing utility bills, loans and other constraints on their day-to-day spending as a "staggering" one in five are yet to take out a product despite being due to retire within a few years' time.
In addition, Baring Asset Management also showed that 3.2 million Britons (seven per cent of the adult population) are set to rely on property investments to fund their retirement. However, Marino Valensise, chief information officer for the firm, warned that "placing all your eggs in one basket" is a risky strategy as such consumers are left open to potential movements in the property sector and changes to the base interest rate.
He said: "Too many people are relying on property to fund their retirement. It's crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property." The information officer reported that the marked house price growth seen in recent years is unlikely to continue, with homeowners also set to face increased borrowing costs which may in turn impact upon their ability to manage other areas of their spending such as secured loans.
"It's very worrying that so many people are not thinking enough about their financial future and it's not just young people who are failing to make any sort of pension provision. The longer you have before retirement, the more you should be placing in assets which will be able to generate a higher level of return", Mr Valensise added.
Consequently those consumers concerned that they are currently unable to put aside enough money for saving into pension schemes may well wish to consider taking out a low-rate personal loan. In doing so, borrowers could be able to service certain demands on their money, pay off debts owed to various creditors, and in doing so, free up more cash to set aside for later life. Last month, research released by Birmingham Midshires showed that more than half of adults believe that they are not earning enough money to allow them to start saving.
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According to research released by Baring Asset Management, 33 per cent of British adults - some 15.1 million people - are currently not putting any money into pension schemes, which could consequently see them struggle to manage their finances as they get older. And by doing so consumers may begin to face difficulties in servicing personal loan repayments and other demands on their spending. The study also indicated that it is women who could encounter the greatest financial management problems as nearly four in ten (38 per cent) of females do not have a pension. This compares to some 27 per cent of men who do not have the financial product.
Research from the financial services firm also revealed that just over a third (34 per cent) of 25 to 34-year-olds currently do not have any sort of pension plan set into place, with just under a quarter of 35 to 54-year-olds lacking a scheme. However, it could be the over-55s who are set for the most pronounced trouble in servicing utility bills, loans and other constraints on their day-to-day spending as a "staggering" one in five are yet to take out a product despite being due to retire within a few years' time.
In addition, Baring Asset Management also showed that 3.2 million Britons (seven per cent of the adult population) are set to rely on property investments to fund their retirement. However, Marino Valensise, chief information officer for the firm, warned that "placing all your eggs in one basket" is a risky strategy as such consumers are left open to potential movements in the property sector and changes to the base interest rate.
He said: "Too many people are relying on property to fund their retirement. It's crucial that we plan for our old age and that our investments are diversified amongst a number of different asset classes - not just property." The information officer reported that the marked house price growth seen in recent years is unlikely to continue, with homeowners also set to face increased borrowing costs which may in turn impact upon their ability to manage other areas of their spending such as secured loans.
"It's very worrying that so many people are not thinking enough about their financial future and it's not just young people who are failing to make any sort of pension provision. The longer you have before retirement, the more you should be placing in assets which will be able to generate a higher level of return", Mr Valensise added.
Consequently those consumers concerned that they are currently unable to put aside enough money for saving into pension schemes may well wish to consider taking out a low-rate personal loan. In doing so, borrowers could be able to service certain demands on their money, pay off debts owed to various creditors, and in doing so, free up more cash to set aside for later life. Last month, research released by Birmingham Midshires showed that more than half of adults believe that they are not earning enough money to allow them to start saving.
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