An increasing number of homeowners are taking steps to help lessen the increase in pressure their finances will come under, new figures show.
In research conducted by Lloyds TSB Mortgages, 64 per cent of those remortgaging their homes claim that they are due to cut back on their spending during the Christmas period. Meanwhile, just over half of all people surveyed state that they are looking to reduce their spending on household bills and are switching changing energy providers in a bid to keep costs low.
Overall, just less than three-quarters (71 per cent) of all remortgagers state that they expect to witness an increase in their monthly repayments when their current deal expires. As a result of such rises, homeowners could in turn find that their ability to meet demands for payment on other areas of their finances such as utility bills, loans, council tax and credit cards is curtailed.
The financial services firm also revealed that 32 per cent of consumers will aim to reduce the amount of money they spend on food by taking their lunch to work and dining out less often, while a further 35 per cent report that they will have to delay their travel plans. About one in four, meanwhile, state that property renovation plans, including those which could have been financed via a home loan, are likely to be put on hold.
In addition, 18 per cent of respondents plan to take on extra part-time work to help them with the increased demand on their spending, with this proportion rising to a quarter among the under-35s. Younger homeowners were again shown to be ready to undergo major lifestyle changes with one in 20 such consumers looking to bring in a lodger in a bid to lessen financial pressures.
Commenting on the data, Alison Burns, director for network mortgage sales at Lloyds TSB, said: "Cutting back on festive spending offers a short-term solution but it's a good idea for people with mortgages to take a longer-term view of their financial situation to ensure their mortgage is suited to their specific needs and changing circumstances. Some consumers may prefer a stepped rate deal that allows them to ease into the new higher interest rate environment. Other homeowners might opt for a tracker product, which will enable them to benefit from any potential drops in interest rates."
However, should homeowners still find that they are struggling to manage their finances then applying for a cheap debt consolidation loan could be a wise option as such a low-rate loan could allow consumers to pay off numerous debts quickly, leaving them with a single monthly repayment.
Speaking earlier this year, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, suggested that home loan levels have fallen consistently over the course of recent months as homeowners increasingly struggle with "stretched affordability" in part due to the effect of five base rate rises by the Bank of England since August 2006.
In turn, taking out a consolidation loan could be an advisable way for those concerned that a rise in monthly mortgage payments will put their finances in an unmanageable position to get back on track.
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Saturday, February 23, 2008
Property Finance Tips and Advice
So many people wants to start investing in property but dont know where to start. Experienced buyers will tell you that you should contact financial institutions and let them handle your property finance for you. That is very true. You should use other peoples money to finance your property.
Investors also advise new comers not to put all their money in one single property. The ideal is to have a number of properties so that the risk youre taking is reduced. Obviously not everyone can start investing in more than one property. Therefore you have to take that first step and buy your first piece of real estate. Remember that you must do your homework on which property to buy. Buying something that everyone else has is a bad decision.
These days mortgage houses and other financial institutions offer property finance of up to 90% of the total value. Property financing has become a dynamic business where investors and lenders have to keep up with laws and credit bureaus. While you are able to get finance of up to 90% you still need to convince the lender that you will be able to cover the monthly payments.
The benefits of property finance are by far better than financing it yourself. This fact can be easily illustrated with an example. Lets say the value of the property is R1000 000. You can either use your pension money or money you saved to pay the property in cash which will cost you R1000 000 out of your pocket. Or you can put down a deposit of lets say R100 000 and get property finance of R900 000. After one year you sell your property for R1400 000 which is market related because you did your homework when you bought the property. You paid R9000 per month on your mortgage. After the one year your total cost will be R208 000 (R100 000 + R108 000). R400 000 minus R208 000 = R192 000 profit. Without property financing your return on investment would have been 40% but because you financed your property your return on investment is 200%. That is how investors get rich.
Lenders that finance property up to 90% will either give you a fixed-rate or adjustable-rate loan. These financial institutions have to make sure youre able to make your monthly obligations and that is why they verify your personal information such as your source of income, asset value, savings, market value of the property youre financing etc. The interest rate which you will get depends on all of these factors.
When you choose a financial institution that will finance your investment property or personal property make sure that you are familiar with the terms of the agreement. You need to know exactly how much youll me paying each much and if there are clauses such as prepayment penalties etc.
The point is this. You should let other people finance your property. Property financing will be the key to financial freedom in your investing career. Do your homework when deciding which property to buy even if it takes you a year to find the perfect one. Its not like youre going to buy a house every month anyway. Well, at least not when youre starting out.
80085
Investors also advise new comers not to put all their money in one single property. The ideal is to have a number of properties so that the risk youre taking is reduced. Obviously not everyone can start investing in more than one property. Therefore you have to take that first step and buy your first piece of real estate. Remember that you must do your homework on which property to buy. Buying something that everyone else has is a bad decision.
These days mortgage houses and other financial institutions offer property finance of up to 90% of the total value. Property financing has become a dynamic business where investors and lenders have to keep up with laws and credit bureaus. While you are able to get finance of up to 90% you still need to convince the lender that you will be able to cover the monthly payments.
The benefits of property finance are by far better than financing it yourself. This fact can be easily illustrated with an example. Lets say the value of the property is R1000 000. You can either use your pension money or money you saved to pay the property in cash which will cost you R1000 000 out of your pocket. Or you can put down a deposit of lets say R100 000 and get property finance of R900 000. After one year you sell your property for R1400 000 which is market related because you did your homework when you bought the property. You paid R9000 per month on your mortgage. After the one year your total cost will be R208 000 (R100 000 + R108 000). R400 000 minus R208 000 = R192 000 profit. Without property financing your return on investment would have been 40% but because you financed your property your return on investment is 200%. That is how investors get rich.
Lenders that finance property up to 90% will either give you a fixed-rate or adjustable-rate loan. These financial institutions have to make sure youre able to make your monthly obligations and that is why they verify your personal information such as your source of income, asset value, savings, market value of the property youre financing etc. The interest rate which you will get depends on all of these factors.
When you choose a financial institution that will finance your investment property or personal property make sure that you are familiar with the terms of the agreement. You need to know exactly how much youll me paying each much and if there are clauses such as prepayment penalties etc.
The point is this. You should let other people finance your property. Property financing will be the key to financial freedom in your investing career. Do your homework when deciding which property to buy even if it takes you a year to find the perfect one. Its not like youre going to buy a house every month anyway. Well, at least not when youre starting out.
80085
Using Amortization Tables to Make Big Money
Amortization tables can be intimidating when viewed from a distance, but once they are understood, they can be very useful. A good amortization table can be helpful in saving you money by informing you which mortgage offer is best for you. They can also help you to plan a strategy to pay off your mortgage ahead of time. Doing so, will free up investment capital so you can make money, a lot of money.
In fact, right now you will learn how to build your amortization table. Then you'll see how to use this table to pay off your mortgage quickly and then parlay those savings into big-time money.
What to enter into an amortization table calculator
Most amortization tables are simple to construct when you are using a good online amortization table website. All you need to do is input the total amount of the mortgage, the interest rate and the length of the mortgage. Some amortization calculators ask for the length in years, others ask for it in months, for instance, 360 months instead of 30 years.
After you click the calculate button you'll see your amortization table. You will notice each month's payment is broken down into two parts, interest and principal. You'll also notice the interest part of the payment; at least in the early part of the mortgage, will be by far, the higher number. This is because each of these early payments consists of much more interest than principal. It is this dynamic we're going to use to save a lot of money.
An example in big money saving
This method will work with any mortgage, but for our purposes, we'll use these fictitious numbers. We have a mortgage of $225,000. The interest rate is 7.25%, and the length of the mortgage is 30 years. When we enter these numbers into our amortization table calculator, we find the monthly payment to be $1,534.90.
When we look at the first payment, we see that out of this $1,534.90, $175.53 goes toward principal and $1,359.30 to interest. When we look at the second payment we see, $176.59 will go toward principal and $1,358.31 will go toward interest.
If we pay the second payment's principal part, $176.59 upfront, or at the same time as the first payment, we will save the $1,358.31 in interest. Why do we save all this money? Because after we make our first payment, we will have a balance remaining on the mortgage of $224,824.48. The difference between how much interest we pay for borrowing this amount of money for 359 months and 358 months is $1,358.31. So, by paying $176.59 with the first month's payment, we will now be on time to pay this mortgage in full in 358 months instead of 359. Yes, this is amazing!
Now, if we go on down the line paying the principal amount of the next payment due, ahead of time each month. We will be saving the corresponding much higher interest charges.
It does get a little more expensive.
As time goes on, the principal payments get higher and the interest gets lower. Still, after two years, the 24th payment, the principal is only $201.61, and after six years, the 72nd payment the principal is still $269.20.
If we stopped paying our principal payments ahead at this time, we will have knocked three years off of the time it would take to pay our mortgage off in full. This would happen because we would have paid three years on time and three years ahead of time.
Payoff a 30-year mortgage in 15 years
What if we want to pay off the mortgage in 15 years? Here's the secret. Go to the 180th payment. Here, you'll see that principal part of the payment is $515.93. If we add this amount onto each of our payments from the first payment of our mortgage to the 180th payment of our mortgage, the mortgage would be paid in full in 180 payments, or 15 years.
$515.93 may seem like a lot to pay upfront, but even if you were to take the principal part of payment number 55, $243.00, and add it on to each payment, you would have your mortgage paid more than 10 years sooner.
Summing it up, you can use this as an approximate formula: On a 30 year mortgage, add to each payment, the amount equal to the principal part of payment number 180 and you will have the mortgage paid in 15 years. Or, add to each payment, the amount equal to the principal part of payment number 55 and you will have the mortgage paid in 20 years. While this formula doesn't work perfectly for interest rates over 10%, for interest rates around 7%, it is fairly accurate. Now, let's see how to turn that savings into wealth.
Invest the savings
You could, of course become a real estate investor, but for simplicity sakes, let's just say you invested $1,534.90 each month in a managed fund that returns 10% yearly. After 10 years you would have $318,127.75. Also, don't forget you would have a house, which would be paid in full. I'd say you're pretty close to being rich and it all started with learning how to use your amortization table.
80036
In fact, right now you will learn how to build your amortization table. Then you'll see how to use this table to pay off your mortgage quickly and then parlay those savings into big-time money.
What to enter into an amortization table calculator
Most amortization tables are simple to construct when you are using a good online amortization table website. All you need to do is input the total amount of the mortgage, the interest rate and the length of the mortgage. Some amortization calculators ask for the length in years, others ask for it in months, for instance, 360 months instead of 30 years.
After you click the calculate button you'll see your amortization table. You will notice each month's payment is broken down into two parts, interest and principal. You'll also notice the interest part of the payment; at least in the early part of the mortgage, will be by far, the higher number. This is because each of these early payments consists of much more interest than principal. It is this dynamic we're going to use to save a lot of money.
An example in big money saving
This method will work with any mortgage, but for our purposes, we'll use these fictitious numbers. We have a mortgage of $225,000. The interest rate is 7.25%, and the length of the mortgage is 30 years. When we enter these numbers into our amortization table calculator, we find the monthly payment to be $1,534.90.
When we look at the first payment, we see that out of this $1,534.90, $175.53 goes toward principal and $1,359.30 to interest. When we look at the second payment we see, $176.59 will go toward principal and $1,358.31 will go toward interest.
If we pay the second payment's principal part, $176.59 upfront, or at the same time as the first payment, we will save the $1,358.31 in interest. Why do we save all this money? Because after we make our first payment, we will have a balance remaining on the mortgage of $224,824.48. The difference between how much interest we pay for borrowing this amount of money for 359 months and 358 months is $1,358.31. So, by paying $176.59 with the first month's payment, we will now be on time to pay this mortgage in full in 358 months instead of 359. Yes, this is amazing!
Now, if we go on down the line paying the principal amount of the next payment due, ahead of time each month. We will be saving the corresponding much higher interest charges.
It does get a little more expensive.
As time goes on, the principal payments get higher and the interest gets lower. Still, after two years, the 24th payment, the principal is only $201.61, and after six years, the 72nd payment the principal is still $269.20.
If we stopped paying our principal payments ahead at this time, we will have knocked three years off of the time it would take to pay our mortgage off in full. This would happen because we would have paid three years on time and three years ahead of time.
Payoff a 30-year mortgage in 15 years
What if we want to pay off the mortgage in 15 years? Here's the secret. Go to the 180th payment. Here, you'll see that principal part of the payment is $515.93. If we add this amount onto each of our payments from the first payment of our mortgage to the 180th payment of our mortgage, the mortgage would be paid in full in 180 payments, or 15 years.
$515.93 may seem like a lot to pay upfront, but even if you were to take the principal part of payment number 55, $243.00, and add it on to each payment, you would have your mortgage paid more than 10 years sooner.
Summing it up, you can use this as an approximate formula: On a 30 year mortgage, add to each payment, the amount equal to the principal part of payment number 180 and you will have the mortgage paid in 15 years. Or, add to each payment, the amount equal to the principal part of payment number 55 and you will have the mortgage paid in 20 years. While this formula doesn't work perfectly for interest rates over 10%, for interest rates around 7%, it is fairly accurate. Now, let's see how to turn that savings into wealth.
Invest the savings
You could, of course become a real estate investor, but for simplicity sakes, let's just say you invested $1,534.90 each month in a managed fund that returns 10% yearly. After 10 years you would have $318,127.75. Also, don't forget you would have a house, which would be paid in full. I'd say you're pretty close to being rich and it all started with learning how to use your amortization table.
80036
Spending Concerns 'Are High'
Many consumers are putting themselves under unnecessary financial strain this winter, new research shows.
In a study published by Alliance & Leicester, almost half (42 per cent) of all Britons are concerned about their spending as Christmas approaches. Although the Bank of England's monetary policy committee elected to lower the base rate of interest by a quarter of a percentage point earlier this week, it was suggested that the effects of previous rises over the last 18 months and increases in living costs have led many people to discover their finances have become "stretched".
As a result, it could well be possible that a significant proportion of consumers are struggling with mortgage repayments and other spending demands, such as personal loan repayments, utility bills and transport costs. And with the yuletide season rapidly approaching such people may face even more strain on their spending due to the impact of buying presents and other festive expenses.
However, the financial services firm indicated that such fiscal difficulties could be avoidable. The research suggested that about two-thirds of people believe luxuries such as takeaway lunches, store-bought coffees and bottled water are actually necessities. With such spending accumulating to more than 19 billion pounds per year, the financial services firm reported that reducing such expenditure could help them to get to grips with their money management.
However, with 31 per cent of the population stating that they are not willing to cut down on regular treats, a significant amount of people could be placing themselves under unnecessary pressure regarding payments on utility bills and personal loans.
Further research from the company showed that 32 per cent of Britons do not save money regularly, while just over a quarter (26 per cent) of consumers state they are unable to reduce their spending. As a result, both sets of people may find that a debt consolidation loan is particularly helpful.
Meanwhile, some two million Britons purchase takeaway hot drinks from the likes of Pret a Manger and Starbucks at least once every day. In addition, six per cent of consumers splurge money on getting a taxi one or more times in a week, although they could have used a cheaper mode of transport.
Commenting on the figures, Ross Dalzell, manager of savings for Alliance & Leicester, said: "Times have changed and while concerns about expenditure are high, attitudes towards what we can or can't go without in our daily lives are very different to ten years ago.
Busy working lives may be responsible for creating a need for convenience, but also for reward, as we feel we deserve the little things that make our lives 'easier' and can't go without them, even if we know we could do with the extra cash sometimes."
Mr Dalzell added: "No-one wants to be a party-pooper or miss out on any of the festive fun - so something has to give. Our research has found that although people are worried about their spending around Christmas time and say that they can't find any way to save, they are overlooking some very simple places to start."
He suggested that as a move such as cutting back on spending on takeaway coffees can save people hundreds of pounds over the course of a year, doing so "should certainly go some of the way towards taking the headache out of a Christmas spending splurge".
In addition, this figure may also help many people to make repayments on loans and credit cards. Mr Dalzell also reported that making these minor lifestyle changes can make a real impact on getting to grips with financial management.
Even after cutting back on luxury spending, those who find that they are still struggling to handle their money may wish to consider applying for a debt consolidation loan. In getting such a loan, borrowers can pay off money owed to various creditors quickly, leaving them with a single low-rate monthly repayment. And a cheap consolidation loan could prove particularly helpful for those in the north of England.
Speaking earlier this year, Suzanne Payne, chief operating officer of Unity Debt Solutions, claimed that consumers in the region are increasingly developing problems making payments on loans and other types of borrowing, for which a debt consolidation loan could be one way of getting out of such hardship.
80004
In a study published by Alliance & Leicester, almost half (42 per cent) of all Britons are concerned about their spending as Christmas approaches. Although the Bank of England's monetary policy committee elected to lower the base rate of interest by a quarter of a percentage point earlier this week, it was suggested that the effects of previous rises over the last 18 months and increases in living costs have led many people to discover their finances have become "stretched".
As a result, it could well be possible that a significant proportion of consumers are struggling with mortgage repayments and other spending demands, such as personal loan repayments, utility bills and transport costs. And with the yuletide season rapidly approaching such people may face even more strain on their spending due to the impact of buying presents and other festive expenses.
However, the financial services firm indicated that such fiscal difficulties could be avoidable. The research suggested that about two-thirds of people believe luxuries such as takeaway lunches, store-bought coffees and bottled water are actually necessities. With such spending accumulating to more than 19 billion pounds per year, the financial services firm reported that reducing such expenditure could help them to get to grips with their money management.
However, with 31 per cent of the population stating that they are not willing to cut down on regular treats, a significant amount of people could be placing themselves under unnecessary pressure regarding payments on utility bills and personal loans.
Further research from the company showed that 32 per cent of Britons do not save money regularly, while just over a quarter (26 per cent) of consumers state they are unable to reduce their spending. As a result, both sets of people may find that a debt consolidation loan is particularly helpful.
Meanwhile, some two million Britons purchase takeaway hot drinks from the likes of Pret a Manger and Starbucks at least once every day. In addition, six per cent of consumers splurge money on getting a taxi one or more times in a week, although they could have used a cheaper mode of transport.
Commenting on the figures, Ross Dalzell, manager of savings for Alliance & Leicester, said: "Times have changed and while concerns about expenditure are high, attitudes towards what we can or can't go without in our daily lives are very different to ten years ago.
Busy working lives may be responsible for creating a need for convenience, but also for reward, as we feel we deserve the little things that make our lives 'easier' and can't go without them, even if we know we could do with the extra cash sometimes."
Mr Dalzell added: "No-one wants to be a party-pooper or miss out on any of the festive fun - so something has to give. Our research has found that although people are worried about their spending around Christmas time and say that they can't find any way to save, they are overlooking some very simple places to start."
He suggested that as a move such as cutting back on spending on takeaway coffees can save people hundreds of pounds over the course of a year, doing so "should certainly go some of the way towards taking the headache out of a Christmas spending splurge".
In addition, this figure may also help many people to make repayments on loans and credit cards. Mr Dalzell also reported that making these minor lifestyle changes can make a real impact on getting to grips with financial management.
Even after cutting back on luxury spending, those who find that they are still struggling to handle their money may wish to consider applying for a debt consolidation loan. In getting such a loan, borrowers can pay off money owed to various creditors quickly, leaving them with a single low-rate monthly repayment. And a cheap consolidation loan could prove particularly helpful for those in the north of England.
Speaking earlier this year, Suzanne Payne, chief operating officer of Unity Debt Solutions, claimed that consumers in the region are increasingly developing problems making payments on loans and other types of borrowing, for which a debt consolidation loan could be one way of getting out of such hardship.
80004
More People 'Concerned About Damaging Credit Rating'
Millions of Britons are concerned that they have damaged their financial rating beyond repair as a result of developing problems in managing their money, new figures have suggested.
In a study conducted by Axa, some four million Britons believe that difficulties in handling their finances, in areas ranging from making loan repayments to paying mortgage or rent costs, have seen them develop an adverse credit status. About a quarter of these people (944,000) claim that their financial history has been spoiled as a result of the fiscal struggles that supporting their friends and family has generated.
However, it was suggested that more people could develop financial problems following the government announcement that 25 million personal data records from the HM Revenue & Customs were recently lost in the post. This could see many Britons open to identify theft, which in turn could damage their credit records. As a result of developing an impaired financial record, people could find that they struggle to get jobs, open up current accounts or successfully apply for a cheap loan. In turn, those looking to borrow could be more likely to opt for a bad credit loan.
Further research from the financial services firm indicated that those aged 45 and 54 are the most likely to be blacklisted. Some one out of five people within this age demographic state they have suffered an adverse credit rating as a result of developing problems in managing their finances, whether this is through areas such as not paying utility bills or struggling with increased loan repayments. In turn, such people may find that taking out a bad credit loan presents them with an opportunity to get back on their financial feet.
Commenting on the figures, Axa spokesperson Steve Folkard said: "Money problems affect people in a variety of ways, but one thing we are all wary of is the possibility of being blacklisted. The term used to mean that creditors were distrustful of applications from your address, but more recently it refers to individuals, regardless of where you live.
"Money worries are as much a social issue as they are a financial one. This is another example of how getting into financial difficulty can affect you and those around you if you rely on others for financial support. The knock-on effects of having a poor credit rating can be endless, as it becomes increasingly difficult to access credit."
The Axa representative added although people can find themselves blacklisted for a number of reasons one "sure fire way to worsen your credit rating", is by not making payments on household bills. As a result, he claimed that it is vital for consumers to stay on top of their finances, otherwise they may find that access to cheap loans and other forms of competitively-priced credit is curtailed.
Those struggling to manage their money were urged to "take action" in getting back on their financial feet, with a bad credit loan one possible way in which to meet various demands on spending.
Consumers who have experienced financial struggles in the past may find that their access to cheap loans and other types of credit is impinged upon. However, those who are confident that they will be able to meet repayments in the future, may wish to apply for a bad credit loan.
Such a loan could be useful for an increasing number of consumers, after a recent report by Datamonitor indicated that more people are to struggle with their money over the remainder of 2007, following the global credit crunch.
79988
In a study conducted by Axa, some four million Britons believe that difficulties in handling their finances, in areas ranging from making loan repayments to paying mortgage or rent costs, have seen them develop an adverse credit status. About a quarter of these people (944,000) claim that their financial history has been spoiled as a result of the fiscal struggles that supporting their friends and family has generated.
However, it was suggested that more people could develop financial problems following the government announcement that 25 million personal data records from the HM Revenue & Customs were recently lost in the post. This could see many Britons open to identify theft, which in turn could damage their credit records. As a result of developing an impaired financial record, people could find that they struggle to get jobs, open up current accounts or successfully apply for a cheap loan. In turn, those looking to borrow could be more likely to opt for a bad credit loan.
Further research from the financial services firm indicated that those aged 45 and 54 are the most likely to be blacklisted. Some one out of five people within this age demographic state they have suffered an adverse credit rating as a result of developing problems in managing their finances, whether this is through areas such as not paying utility bills or struggling with increased loan repayments. In turn, such people may find that taking out a bad credit loan presents them with an opportunity to get back on their financial feet.
Commenting on the figures, Axa spokesperson Steve Folkard said: "Money problems affect people in a variety of ways, but one thing we are all wary of is the possibility of being blacklisted. The term used to mean that creditors were distrustful of applications from your address, but more recently it refers to individuals, regardless of where you live.
"Money worries are as much a social issue as they are a financial one. This is another example of how getting into financial difficulty can affect you and those around you if you rely on others for financial support. The knock-on effects of having a poor credit rating can be endless, as it becomes increasingly difficult to access credit."
The Axa representative added although people can find themselves blacklisted for a number of reasons one "sure fire way to worsen your credit rating", is by not making payments on household bills. As a result, he claimed that it is vital for consumers to stay on top of their finances, otherwise they may find that access to cheap loans and other forms of competitively-priced credit is curtailed.
Those struggling to manage their money were urged to "take action" in getting back on their financial feet, with a bad credit loan one possible way in which to meet various demands on spending.
Consumers who have experienced financial struggles in the past may find that their access to cheap loans and other types of credit is impinged upon. However, those who are confident that they will be able to meet repayments in the future, may wish to apply for a bad credit loan.
Such a loan could be useful for an increasing number of consumers, after a recent report by Datamonitor indicated that more people are to struggle with their money over the remainder of 2007, following the global credit crunch.
79988
People Need To Get 'Finances In Peak Condition'
The majority of Britons are in a poor monetary condition, new figures show.
In a recent financial fitness study conducted by Abbey, just one out of 100 people are currently in their peak financial state in terms of the various financial products they have. This could include loans and savings accounts - and their competitiveness, in addition to their capacity to shop around for good deals. According to the firm, a zero score means that a person is "financially fit", with 100 being the fiscal equivalent of obesity. Overall, some 43 per cent of consumers are 'overweight'.
Overall, the typical woman is 46 per cent overweight when managing money. Some 31 per cent of females have a good mortgage deal, with one in four failing to shop around when selecting insurance cover. In addition, 70 per cent either have no savings or just enough money to keep up their standard of living for no more than three months.
Consequently, many of such consumers may find that they develop problems in managing expenses such as loans, utility bills and plastic card payments should their income unexpectedly dry up. Meanwhile, with men scoring 41 per cent, males appear to be more able to select competitive financial products such as current accounts and cheap loans.
Research from the firm also indicated that those in Wales and the south-west of England are the best at managing their money, as only 42 per cent of residents are financially overweight. In turn, this could mean that many people from such regions are in a more capable position to make repayments on borrowing and are able to search effectively for a cheap loan.
On the other hand, consumers from the north are judged to be the most likely to be managing their money ineffectively, with 46 per cent of people overweight. Within the north-west, just over a third (35 per cent) have an uncompetitive mortgage rate, while some 41 per cent hold a current account with interest at less than one per cent.
Commenting on the figures, Sue Hayes, director for Abbey, said: "The research suggests that the majority of people are in need of a financial workout to get their finances in peak condition for 2008.
As many gear up to shift the pounds they pile on over the festive period, we would encourage people to review the financial products they hold and shop around to ensure that they are getting the most competitive deal available. Like exercise, a financial workout can take a bit of effort but for most people the rewards are well worth the exertion."
Those looking to reduce the various financial pressures that they may be facing and who aim to take out competitive monetary products may wish to consider applying for a cheap secured loan. Indeed, taking out such a loan now could be particularly helpful for people struggling to manage their money as the Christmas and new year period approaches. Speaking last month,
Neil Chandler, head of Halifax Unsecured Personal Loans, reported that although the real costs of festive items such as jewellery, turkeys and toys have all fallen it "doesn't mean we don't need to budget and organise our finances". And after drawing up a list charting the various constraints on their spending, people may find that a personal loan can help them manage their money.
79917
In a recent financial fitness study conducted by Abbey, just one out of 100 people are currently in their peak financial state in terms of the various financial products they have. This could include loans and savings accounts - and their competitiveness, in addition to their capacity to shop around for good deals. According to the firm, a zero score means that a person is "financially fit", with 100 being the fiscal equivalent of obesity. Overall, some 43 per cent of consumers are 'overweight'.
Overall, the typical woman is 46 per cent overweight when managing money. Some 31 per cent of females have a good mortgage deal, with one in four failing to shop around when selecting insurance cover. In addition, 70 per cent either have no savings or just enough money to keep up their standard of living for no more than three months.
Consequently, many of such consumers may find that they develop problems in managing expenses such as loans, utility bills and plastic card payments should their income unexpectedly dry up. Meanwhile, with men scoring 41 per cent, males appear to be more able to select competitive financial products such as current accounts and cheap loans.
Research from the firm also indicated that those in Wales and the south-west of England are the best at managing their money, as only 42 per cent of residents are financially overweight. In turn, this could mean that many people from such regions are in a more capable position to make repayments on borrowing and are able to search effectively for a cheap loan.
On the other hand, consumers from the north are judged to be the most likely to be managing their money ineffectively, with 46 per cent of people overweight. Within the north-west, just over a third (35 per cent) have an uncompetitive mortgage rate, while some 41 per cent hold a current account with interest at less than one per cent.
Commenting on the figures, Sue Hayes, director for Abbey, said: "The research suggests that the majority of people are in need of a financial workout to get their finances in peak condition for 2008.
As many gear up to shift the pounds they pile on over the festive period, we would encourage people to review the financial products they hold and shop around to ensure that they are getting the most competitive deal available. Like exercise, a financial workout can take a bit of effort but for most people the rewards are well worth the exertion."
Those looking to reduce the various financial pressures that they may be facing and who aim to take out competitive monetary products may wish to consider applying for a cheap secured loan. Indeed, taking out such a loan now could be particularly helpful for people struggling to manage their money as the Christmas and new year period approaches. Speaking last month,
Neil Chandler, head of Halifax Unsecured Personal Loans, reported that although the real costs of festive items such as jewellery, turkeys and toys have all fallen it "doesn't mean we don't need to budget and organise our finances". And after drawing up a list charting the various constraints on their spending, people may find that a personal loan can help them manage their money.
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The Best Mortgages to Have
Getting a mortgage is a big deal. I am sure you will agree with me. But at the very beginning let me tell you that you should not settle for a mortgage that is any less than you wanted. Why do I say that? While it can be true that some of the larger and better known mortgage companies can afford to offer you a better deal due to the sheer volume of business they're doing, surprisingly there are a good few mortgage dealers that can often beat the ones offered by the larger and more well-known companies. The personal element offered by these lenders is a benefit.
Shopping around is a must if you want to wind up with the right loan. If you don't look around, you might wind up with something inferior. This is simply because a mortgage can be a pretty severe drain on your income, and while you may think they're all the same now in a year or so you could well find that if you went with another less well-known company you might have saved yourself some money. However, "one size fits all" is not a philosophy that the mortgage offers.
Each individual has different needs. So I'd highly recommend taking a look at what the better advertised companies have to offer first and then - before you sign that particular contract - see what are the mortgage types that other dealers have on offer.
If the first bank you check with has what seems like a pretty decent interest rate and another one has one a fraction of a percent higher then you could quite happily mention the offer your other bank has made you to see if they can beat it. If the bank really wants your business, its representative will do all he can to keep you from going elsewhere.
He will try to top the deal you have seen with one that is better. If they can trim a smidgen of the interest rate off, or perhaps give you some added bonus to make up for the fact that you're paying a little extra, then they might well do simply on the basis that, in the long run, they still end up making a profit.
If you like, when you go to the bank, you could ask to meet one of the more senior employees of the bank. This is if you feel like someone with the right to give you that extra little saving is needed instead of their average salesman.
Banks make a lot of money through loans. So your bank is going to want to do business with you. Play that to your advantage, shop around, check local branches, head to some internet mortgage-comparison sites and you could either save yourself a good lump of cash or get some nice little freebie thrown in. For example, the loans being offered by two major banks might be exactly the same.
But one of the banks might be willing to waive some of the penalties that they normally charge. Solves the problem. Many people reckon that the little added extras don't make a difference. But then, every last one of us loves a bargain. Even if it is a small thing that one of the lenders is offering, we will go with him without batting an eyelid.
79884
Shopping around is a must if you want to wind up with the right loan. If you don't look around, you might wind up with something inferior. This is simply because a mortgage can be a pretty severe drain on your income, and while you may think they're all the same now in a year or so you could well find that if you went with another less well-known company you might have saved yourself some money. However, "one size fits all" is not a philosophy that the mortgage offers.
Each individual has different needs. So I'd highly recommend taking a look at what the better advertised companies have to offer first and then - before you sign that particular contract - see what are the mortgage types that other dealers have on offer.
If the first bank you check with has what seems like a pretty decent interest rate and another one has one a fraction of a percent higher then you could quite happily mention the offer your other bank has made you to see if they can beat it. If the bank really wants your business, its representative will do all he can to keep you from going elsewhere.
He will try to top the deal you have seen with one that is better. If they can trim a smidgen of the interest rate off, or perhaps give you some added bonus to make up for the fact that you're paying a little extra, then they might well do simply on the basis that, in the long run, they still end up making a profit.
If you like, when you go to the bank, you could ask to meet one of the more senior employees of the bank. This is if you feel like someone with the right to give you that extra little saving is needed instead of their average salesman.
Banks make a lot of money through loans. So your bank is going to want to do business with you. Play that to your advantage, shop around, check local branches, head to some internet mortgage-comparison sites and you could either save yourself a good lump of cash or get some nice little freebie thrown in. For example, the loans being offered by two major banks might be exactly the same.
But one of the banks might be willing to waive some of the penalties that they normally charge. Solves the problem. Many people reckon that the little added extras don't make a difference. But then, every last one of us loves a bargain. Even if it is a small thing that one of the lenders is offering, we will go with him without batting an eyelid.
79884
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