This is the time of year that many of us tend to indulge. We want to have our special holiday butter cake along with every treat that ends up at the office. After all, we deserve it. Then one morning, when the muffin top (your stomach) pooches over your low rise jeans, your mind starts thinking after the holidays. I think I need to go on a diet. Judging from the news reports, food is not all we indulge in. A lot of retail therapy seems to be happening too.
Just for fun, replace food with money and go on a money diet. If you can not pay off your credit card completely within two months, you are ripe for a money diet. A money diet works just like a real diet. There are three phases. Phase 1 is for preparation, then you move into the losing phase (stage 2), and finally you reach the maintenance phase. By the time you reach the third phase, new behaviors are firmly in place and you are making sustainable changes. Eureka. Time to get started.
Phase 1 This is where you figure out the state of affairs. Just like a real diet, you have to weigh yourself. Instead of scales, you need a calculator. What do you owe? Count everything except your mortgage. This is painful, but you must know where the starting line is. This is also the time that you start weaning yourself and moving away from temptation. On a food diet, you would get rid of the chocolate chip cookies, chips and ice cream you have stashed in the kitchen. The equivalent for the money diet is to replace shopping trips both on line and in person. Yes, that means drug store shopping too. This is where you tell yourself you are going to get toothpaste, but come back with picture frames, toys for the kids or dogs, make-up, light bulbs and maybe toothpaste.
Phase 2: You have stopped your bad shopping habits and now you must stop all unnecessary spending. You have to take a hard look at what you consider a necessity. Every bit of fat you cut out of your money diet is applied directly to paying principal down. Treat this like a game. How much can you devote to principal only and how fast can you pay it off? Just like losing weight the amount of time it takes to accomplish this will depend on where you start. Losing 100 lbs takes more time than losing 10 lbs and the results are also more outstanding. This phase will not last forever, but it is an important step.
After you complete the first two phases of the diet, you will begin to notice a positive change. You do not want as much. Just like food. You are starting to learn there is a price in terms of freedom for every purchase you make. You will begin to embrace the realization that buying that extra special TV will cost 30 hours of your time (labor). Additionally, you may decide it is not worth that to you at any time, no matter how much money you have to spend.
Phase 3: Debt has been paid down and now it is time to build a cushion. As you might guess, stage 3 is not as spartan as the other stages. You have developed new habits and are committed to not going back to the level of spending that caused the problem to start with. You can loosen up a little. The majority of the extra cash should be divided among three piles. Short term, medium term and long term:
Short term: Fun Stuff. This will be for planned fun stuff. There may be some room in this pile for impulsive stuff, but you will only spend out of this pot for impulse, so this type of spending will have cap on it.
Medium Term: Planned replacement fund. You know you will have to replace the washer, dryer, etc. sometime, so you keep this fund in reserve for those items. The goal is to be prepared before a necessity arises and causes further debt.
Long Term: One day, you will want to quit working or work the way you want to. Either way you need money to do that. I often hear employees say something like I am going to work until I am 85 years old. Take a look around. You do not see many 85 year olds reporting to their desk. Be realistic about this and value yourself. You need to save for this stage of your life. Period.
Money diets are not just for people in trouble, you can also use them to get ahead when you are anticipating an event. In my family, we have done a money diet a few times to get a cushion in anticipation of an event. Think of it like dieting before you go to the high school reunion or because you are going on a cruise and know you will overeat. You build a reserve account so you can enjoy yourself.
We use a combination of strategies to build reserve ranging from cutting out some spending, reducing some events, making more money, and reusing so that we will not have to buy new.
Just like all goals everything can not be a priority or nothing is. Make sure you figure out your true goals and make funding them a priority. Following a money diet to get you back on track will keep you moving in the right direction. Food or money, both require a disciplined approach, but the long term rewards are fantastic and beat the short term high every time.
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Sunday, February 24, 2008
Two Principles of Personal Finance You Want to Understand
News about the current credit crisis in America should cause everyone to reflect on what got us here in the first place. It's not fair or reasonable to place the blame on the mortgage companies and other big banks. That's like blaming a fast food chain for your obesity. Hopefully you all understand that you're not fat because they force-fed you burgers, and you're not broke or on the verge of bankruptcy because a lender helped you buy more house than you could afford. We are all responsible for our current financial circumstances, whatever they may be.
If you've decided to take complete responsibility for your own financial future you're on the right track already. In the American economy for the past 200 years anyone and everyone that has made the decision to become financially successful has been able to do it - as long as they were willing to pay the price of financial freedom.
So what is that price? I'm sure a lot of people say they'd be rich if they only knew how, or if their parents had been rich, or if they weren't so unlucky, etc. I don't buy any of that. Here are a few principles that will change your outlook on your situation - if you'll let them.
1. You are the owner of your circumstances, whatever they may be.
One of the most powerful statements you can make is "I am responsible." If you will recognize that your current financial reality is something you have chosen, you are immediately in a position to influence it for good. You become even more powerful when you decided to accept responsibility for those things that are beyond your control. Sound strange? It's definitely a different way of thinking. The greatest innovators and achievers in the world are people who decide nothing is beyond their ability to influence.
2. Time is worth more than money.
Everybody says "Time is money." but how many people act accordingly? I'm not talking about the chronic time wasting we're all guilty of. I'm talking about people that actually choose to enter and stay in careers where they're seriously under-compensated for their time. No matter how rich you are, you're always trading hours for dollars. The richest people in the world are those who just happen to get lots and lots of dollars in exchange for very few hours.
If you're in a career where you'll always be trading a lot of hours for not so many dollars it's time to consider the long term consequences. It has never made sense to me that people would sell their time for so little. You wouldn't do it in other areas of your life would you? For example, let's say you're going to sell your house. You've had it appraised at $250,000 so that's the price you're asking. A prospective buyer walks in and says "I'll give you $96,000 for the house." Would you say yes? Of course not! Is that a ridiculous example? You tell me. Compare your hourly wage to other people and other professions. If they're making a lot more than you, but you feel you're just as capable a person, the above example might be more appropriate than you thought.
If you commit to having financial stability and then total financial freedom, it will be yours. You just have to figure out the price and then pay it.
80284
If you've decided to take complete responsibility for your own financial future you're on the right track already. In the American economy for the past 200 years anyone and everyone that has made the decision to become financially successful has been able to do it - as long as they were willing to pay the price of financial freedom.
So what is that price? I'm sure a lot of people say they'd be rich if they only knew how, or if their parents had been rich, or if they weren't so unlucky, etc. I don't buy any of that. Here are a few principles that will change your outlook on your situation - if you'll let them.
1. You are the owner of your circumstances, whatever they may be.
One of the most powerful statements you can make is "I am responsible." If you will recognize that your current financial reality is something you have chosen, you are immediately in a position to influence it for good. You become even more powerful when you decided to accept responsibility for those things that are beyond your control. Sound strange? It's definitely a different way of thinking. The greatest innovators and achievers in the world are people who decide nothing is beyond their ability to influence.
2. Time is worth more than money.
Everybody says "Time is money." but how many people act accordingly? I'm not talking about the chronic time wasting we're all guilty of. I'm talking about people that actually choose to enter and stay in careers where they're seriously under-compensated for their time. No matter how rich you are, you're always trading hours for dollars. The richest people in the world are those who just happen to get lots and lots of dollars in exchange for very few hours.
If you're in a career where you'll always be trading a lot of hours for not so many dollars it's time to consider the long term consequences. It has never made sense to me that people would sell their time for so little. You wouldn't do it in other areas of your life would you? For example, let's say you're going to sell your house. You've had it appraised at $250,000 so that's the price you're asking. A prospective buyer walks in and says "I'll give you $96,000 for the house." Would you say yes? Of course not! Is that a ridiculous example? You tell me. Compare your hourly wage to other people and other professions. If they're making a lot more than you, but you feel you're just as capable a person, the above example might be more appropriate than you thought.
If you commit to having financial stability and then total financial freedom, it will be yours. You just have to figure out the price and then pay it.
80284
Consumers Should 'Avoid Being A Turkey This Christmas'
Britons are being urged to take the time to consider their spending carefully during the upcoming festive period, it has emerged.
Pointing towards research carried out by WorldVision, Callcredit reveals that consumers wasted some 2 billion pounds on unwanted presents over the course of last Christmas. And with this being a figure which could have a greater impact upon people's capacity to manage their finances, cutting down on unnecessary expenditure could greatly reduce financial pressures. In doing so, many could find that they are able to make payments on other sources of financial demand such as personal loans, credit card statements and household bills with far greater ease.
Consequently, Owen Roberts, head of MyCallcredit, urged people to take the time to consider their money management during the festive season so as to avoid spending difficulties in the first few weeks of 2008. He said: "With Christmas costing the average person more money year-on-year, we should all take time to make sure our Christmas spending doesn't leave us with a financial hangover in the new year."
As a result, the credit report provider has urged consumers against being a "Christmas turkey" this year. In addition, people were advised to take the time to make use of price comparison websites and check out deals available online in a bid to ensure that they are getting the best offer possible for their products.
However, those considering making use of the internet to help fuel their spending over Christmas, whether this ranges from searching for an online loan to using price comparison websites, were advised to do so with caution. Callcredit urged computer users to use different passwords and pin numbers while online to help avoid becoming a victim of online fraud. As a result, people were also recommended to change log-in details frequently and to shy away from obvious codes such as their date of birth or mother's maiden name.
Meanwhile, it may be advisable for shoppers to resist the temptation of panic buying as the Christmas season approaches, as doing so could see them make use of uncompetitively-priced credit which could exacerbate their debt difficulties in the new year. Alternatively, those looking to borrow money, whether via a loan, store card or otherwise, were advised to get a copy of their credit report. In taking out such a financial document, people may find that they are more likely to secure a cheap loan and other types of low-rate borrowing.
Additionally, Callcredit suggest that people should not overspend on what seem to be "bargain special offers". Those who find that they have come across a deal which seems almost too good to be true were advised to ensure that products are either returnable or that they can get a refund should they turn out to be faulty or damaged. In turn, those who find that they have to meet the costs of repairing such items themselves or buy extra presents to replace them could see their finances coming under more pressure.
For people worried about their capacity to mange their money over the Christmas period and the first weeks of the new year, a cheap personal loan could prove to be an effective solution. However, consumers should ensure that they opt to borrow from a reputable provider. Earlier this year, Jubilee Tower Credit Union and Citizens Advice warned that although loan sharks can offer what seem to be easy loans, consumers struggling to manage their money should not succumb to such temptation. The organisations advised that choosing unreputable lenders could well see people struggle with unmanageable levels of debt in the weeks following Christmas.
80236
Pointing towards research carried out by WorldVision, Callcredit reveals that consumers wasted some 2 billion pounds on unwanted presents over the course of last Christmas. And with this being a figure which could have a greater impact upon people's capacity to manage their finances, cutting down on unnecessary expenditure could greatly reduce financial pressures. In doing so, many could find that they are able to make payments on other sources of financial demand such as personal loans, credit card statements and household bills with far greater ease.
Consequently, Owen Roberts, head of MyCallcredit, urged people to take the time to consider their money management during the festive season so as to avoid spending difficulties in the first few weeks of 2008. He said: "With Christmas costing the average person more money year-on-year, we should all take time to make sure our Christmas spending doesn't leave us with a financial hangover in the new year."
As a result, the credit report provider has urged consumers against being a "Christmas turkey" this year. In addition, people were advised to take the time to make use of price comparison websites and check out deals available online in a bid to ensure that they are getting the best offer possible for their products.
However, those considering making use of the internet to help fuel their spending over Christmas, whether this ranges from searching for an online loan to using price comparison websites, were advised to do so with caution. Callcredit urged computer users to use different passwords and pin numbers while online to help avoid becoming a victim of online fraud. As a result, people were also recommended to change log-in details frequently and to shy away from obvious codes such as their date of birth or mother's maiden name.
Meanwhile, it may be advisable for shoppers to resist the temptation of panic buying as the Christmas season approaches, as doing so could see them make use of uncompetitively-priced credit which could exacerbate their debt difficulties in the new year. Alternatively, those looking to borrow money, whether via a loan, store card or otherwise, were advised to get a copy of their credit report. In taking out such a financial document, people may find that they are more likely to secure a cheap loan and other types of low-rate borrowing.
Additionally, Callcredit suggest that people should not overspend on what seem to be "bargain special offers". Those who find that they have come across a deal which seems almost too good to be true were advised to ensure that products are either returnable or that they can get a refund should they turn out to be faulty or damaged. In turn, those who find that they have to meet the costs of repairing such items themselves or buy extra presents to replace them could see their finances coming under more pressure.
For people worried about their capacity to mange their money over the Christmas period and the first weeks of the new year, a cheap personal loan could prove to be an effective solution. However, consumers should ensure that they opt to borrow from a reputable provider. Earlier this year, Jubilee Tower Credit Union and Citizens Advice warned that although loan sharks can offer what seem to be easy loans, consumers struggling to manage their money should not succumb to such temptation. The organisations advised that choosing unreputable lenders could well see people struggle with unmanageable levels of debt in the weeks following Christmas.
80236
Used Car Loan Rates: Save To The Max
Used car loan rates can be overwhelming at a first glance. Not only are there so many of them, it can be hard to choose which one is the best. But rate research and comparison can help you spot the shady deals from the ones that shine. All it takes is a little ground work.
Why Stop Saving?
The very fact that you are looking for a used car rather than a new one shows that you are shopping with an eye to save as much as you can. This is a sound move not only are used cars much cheaper than new ones, you can often find ones that are in almost new condition. But finding the perfect car can take some time and people do a lot of legwork before deciding on a used to car to buy.
When you have put that much effort into finding the right car, should not you do the same to find the best rates. After doing your best to find the car that suits your financial needs, it would be a shame to throw it all away on the first auto loan rates you come across. You owe it to yourself to take advantage of the best deals, every step of the way.
Reputation And Rates
When looking for auto refinance loans and ordinary car loans, it is imperative that you compare rates. Do not go for the first one that crosses your way chances are that you will find something much better with a little research. In fact, you do not have to go anywhere at all. You can find and compare plenty of rates online.
Whether its a new low rate car loan or a used one, you have to be sure you are dealing with a reputable lender. A number of lenders may offer loans at amazing rates but they might have extra fees hidden in your payment scheme. Make sure you are comfortable with the lender you are working with and you are clear about their terms.
After comparing and finding what suits you best, try and make a good down payment on the car. A large down payment will result in lower loans and therefore monthly installments. Also make sure that you can handle the payment scheme, whether its long term or short term. Dont let the savings slip by you compare rates and schemes to get the best kind of used car loan.
Comparing used car loan rates can save you more money than you think. Auto refinance loans and a low rate car loan will have varying rates. Looking at a few auto loan rates could lead you to a better deal.
80213
Why Stop Saving?
The very fact that you are looking for a used car rather than a new one shows that you are shopping with an eye to save as much as you can. This is a sound move not only are used cars much cheaper than new ones, you can often find ones that are in almost new condition. But finding the perfect car can take some time and people do a lot of legwork before deciding on a used to car to buy.
When you have put that much effort into finding the right car, should not you do the same to find the best rates. After doing your best to find the car that suits your financial needs, it would be a shame to throw it all away on the first auto loan rates you come across. You owe it to yourself to take advantage of the best deals, every step of the way.
Reputation And Rates
When looking for auto refinance loans and ordinary car loans, it is imperative that you compare rates. Do not go for the first one that crosses your way chances are that you will find something much better with a little research. In fact, you do not have to go anywhere at all. You can find and compare plenty of rates online.
Whether its a new low rate car loan or a used one, you have to be sure you are dealing with a reputable lender. A number of lenders may offer loans at amazing rates but they might have extra fees hidden in your payment scheme. Make sure you are comfortable with the lender you are working with and you are clear about their terms.
After comparing and finding what suits you best, try and make a good down payment on the car. A large down payment will result in lower loans and therefore monthly installments. Also make sure that you can handle the payment scheme, whether its long term or short term. Dont let the savings slip by you compare rates and schemes to get the best kind of used car loan.
Comparing used car loan rates can save you more money than you think. Auto refinance loans and a low rate car loan will have varying rates. Looking at a few auto loan rates could lead you to a better deal.
80213
'Excellent Progress' Made In Financial Inclusion
Progress is being made towards promoting financial inclusion, it has been claimed.
Speaking earlier today, chairman of the ATM Working Group John McFall and Kitty Ussher, chair of the treasury select committee, have announced that some 337 new free-to-use cash machines are in operation in low-income areas across Britain. Meanwhile, 206 further locations have been earmarked to receive such facilities during the first six months of next year.
A total of 543, it was suggested that the machines will benefit up to 1.2 million Britons who as a result will not have to travel outside of their local area or pay a fee in order to withdraw money. And as a consequence of such facilities, many people could find that they are more able to handle various areas of their spending such as making utility bill payments, meeting mortgage costs or repaying home loans.
Ms Ussher said: "The government is committed to ensuring that everyone has access to financial services and, with the excellent progress made to date, more than one million people in low income areas will benefit from not paying to access cash machines in their neighbourhood. When this initiative is fully realised and all of the free-to-use machines are in place, around 1.5 million low-income Britons will benefit - a fantastic result."
Meanwhile, Mr McFall suggested that the introduction of such cash machines could be playing a crucial part in lessening consumers financial pressures. He said: "The outcomes have been remarkable and the feedback from these communities makes it clear that people really appreciate what's been done here. The new free-to-use ATMs are saving them significant sums of money they could ill afford to spend.
The next step is to ensure that every ATM machine displays clear signs to customers informing them whether the machine is one that charges or is free to use." In turn, Britons - and in particular those on low incomes - making use of non-charging cash machines could discover that they are able to meet numerous monetary demands such as loans, rent and household bills with ease.
The scheme forms part of the government's action plan for overall financial inclusion, which has seen some 135 million pounds invested into promoting access to various money-related services. This is due to see an increase in the availability and awareness of home contents insurance for those households on low salary. In addition, there will be a greater provision of free face-to-face money advice, which could include guidance ranging from comparing loans and drawing up a budget to changing utility providers and selecting a savings account.
Consumers may find that they particularly benefit from free cash machines and other areas of financial inclusion in the weeks leading up to the Christmas period. Earlier this year, research conducted by Cornhill Direct indicated that Britons are to spend some 2,114 pounds this festive season, with a cheap loan one possible way in which to help meet such costs.
Although this figure represents a decrease from the 2,200 pounds recorded in 2005, it is still a significant amount of expenditure. Those particularly concerned about their ability to fund the festive season of their dreams may also wish to consider applying for a low-rate loan as a means of helping to manage spending.
80211
Speaking earlier today, chairman of the ATM Working Group John McFall and Kitty Ussher, chair of the treasury select committee, have announced that some 337 new free-to-use cash machines are in operation in low-income areas across Britain. Meanwhile, 206 further locations have been earmarked to receive such facilities during the first six months of next year.
A total of 543, it was suggested that the machines will benefit up to 1.2 million Britons who as a result will not have to travel outside of their local area or pay a fee in order to withdraw money. And as a consequence of such facilities, many people could find that they are more able to handle various areas of their spending such as making utility bill payments, meeting mortgage costs or repaying home loans.
Ms Ussher said: "The government is committed to ensuring that everyone has access to financial services and, with the excellent progress made to date, more than one million people in low income areas will benefit from not paying to access cash machines in their neighbourhood. When this initiative is fully realised and all of the free-to-use machines are in place, around 1.5 million low-income Britons will benefit - a fantastic result."
Meanwhile, Mr McFall suggested that the introduction of such cash machines could be playing a crucial part in lessening consumers financial pressures. He said: "The outcomes have been remarkable and the feedback from these communities makes it clear that people really appreciate what's been done here. The new free-to-use ATMs are saving them significant sums of money they could ill afford to spend.
The next step is to ensure that every ATM machine displays clear signs to customers informing them whether the machine is one that charges or is free to use." In turn, Britons - and in particular those on low incomes - making use of non-charging cash machines could discover that they are able to meet numerous monetary demands such as loans, rent and household bills with ease.
The scheme forms part of the government's action plan for overall financial inclusion, which has seen some 135 million pounds invested into promoting access to various money-related services. This is due to see an increase in the availability and awareness of home contents insurance for those households on low salary. In addition, there will be a greater provision of free face-to-face money advice, which could include guidance ranging from comparing loans and drawing up a budget to changing utility providers and selecting a savings account.
Consumers may find that they particularly benefit from free cash machines and other areas of financial inclusion in the weeks leading up to the Christmas period. Earlier this year, research conducted by Cornhill Direct indicated that Britons are to spend some 2,114 pounds this festive season, with a cheap loan one possible way in which to help meet such costs.
Although this figure represents a decrease from the 2,200 pounds recorded in 2005, it is still a significant amount of expenditure. Those particularly concerned about their ability to fund the festive season of their dreams may also wish to consider applying for a low-rate loan as a means of helping to manage spending.
80211
Low Rate Car Loan: Look Before You Leap
If you are looking for a low rate car loan, youve probably realized that you dont have to look very far to find a lender. There are numerous refinance loans available on the market today, which means you need to be extra careful about choosing the one you want.
Know The Scenario
With so many lenders out there willing to give you a low rate car loan, it is imperative to understand exactly what this means. A car loan provides you financing to purchase a car. This has become a popular option today since many people simply cannot spare the money to buy a car outright with their own funds. A car loan means you can buy a car immediately and pay off your loan in installments.
As you can see, its important to compare auto loan rates. There are so many car loan dealers today and all of them are in competition this means that with a little research and comparison shopping, you can find a loan rate that will work best for you. If you dont have time or are a little overwhelmed by the process, you can always hire a car loan broker to help you out.
What Everyone Should Know
All potential car buyers should know few things. Whether it is online car loans or bank loans, all of these will work around something known as the Prime Rate. This is an interest rate that is established by the federal government and all lenders will base their own ratings on this. This Prime Rate does fluctuate. So if you see that the rate is high, it might be a good idea to wait before going in for a loan. You simply wont find a low rate car loan when the Prime Rate is high.
Next, take care of your credit. As with any loan, a lender is going to have a look at your credit ratings before sanctioning your car loan. If your credit is a little shaky, take measures to improve it before approaching a lender. A good credit rating will give you a better chance of getting a good deal on your loan.
Last but definitely not least, understand what youre getting into. This means checking out a lenders reputation before going in for a loan. Before signing anything, read the fine print to ensure you dont get any nasty surprises down the line. Be informed about the entire loan process and youll be able to get a low rate car loan.
80208
Know The Scenario
With so many lenders out there willing to give you a low rate car loan, it is imperative to understand exactly what this means. A car loan provides you financing to purchase a car. This has become a popular option today since many people simply cannot spare the money to buy a car outright with their own funds. A car loan means you can buy a car immediately and pay off your loan in installments.
As you can see, its important to compare auto loan rates. There are so many car loan dealers today and all of them are in competition this means that with a little research and comparison shopping, you can find a loan rate that will work best for you. If you dont have time or are a little overwhelmed by the process, you can always hire a car loan broker to help you out.
What Everyone Should Know
All potential car buyers should know few things. Whether it is online car loans or bank loans, all of these will work around something known as the Prime Rate. This is an interest rate that is established by the federal government and all lenders will base their own ratings on this. This Prime Rate does fluctuate. So if you see that the rate is high, it might be a good idea to wait before going in for a loan. You simply wont find a low rate car loan when the Prime Rate is high.
Next, take care of your credit. As with any loan, a lender is going to have a look at your credit ratings before sanctioning your car loan. If your credit is a little shaky, take measures to improve it before approaching a lender. A good credit rating will give you a better chance of getting a good deal on your loan.
Last but definitely not least, understand what youre getting into. This means checking out a lenders reputation before going in for a loan. Before signing anything, read the fine print to ensure you dont get any nasty surprises down the line. Be informed about the entire loan process and youll be able to get a low rate car loan.
80208
Consumers Playing 'Russian Roulette' By Not Getting Insurance
Surging living costs may be placing many people under financial pressure in later life, new research indicates.
A study released by Sainsbury's Finance has revealed that the expense of day-to-day living costs have risen by some 4.2 per cent between October and November. This is a figure which could well impact upon consumers' ability to meet various demands on their spending such as utility bills, store cards and loans.
However, research from the financial services firm showed that 21.9 million people have opted out getting at least one type of insurance product. Consequently, many Britons could well see that their capacity to manage their money tightened further if they have an accident for which they are not covered.
Overall, some 4.7 million consumers do not have any home contents insurance, with 4.28 million holidaymakers failing to purchase travel insurance cover the last time they went away. However, the financial services firm reported that "the situation is even worse" for the 55 per cent of dog and cat owners who do not have cover for their pets. And should their animal unexpectedly fall ill, such consumers may be forced to pay for veterinary costs themselves, something which could be financed through a personal loan.
Findings from Sainsbury's also revealed that 2.9 million adults claim that the main reason why they do not have insurance is because they see it as too expensive or are unable to afford cover. However, for many applying for a cheap consolidation loan could be a useful way in which to free up disposable income that in turn could be used to help purchase insurance, pay off bills or fund home improvements.
Steve Johnson, head of insurance for Sainsbury's Finance, said: "Insurance is an absolute must, but our research suggests that millions of people are playing Russian roulette by opting to do without. Those people finding it difficult to afford insurance due to the rising cost in living need to ensure that they shop around for the best cover because this can dramatically reduce price."
He added that people concerned about their capacity to afford insurance may wish to take out a policy over the internet. Seeking out cover online, the financial services expert reported, may see many consumers benefit from a discount of between ten and 20 per cent. Spreading the expense of a premium through a monthly direct debit was also suggested as one way in which to ease financial pressures.
For those looking to reduce pressure on their finance, whether to help them to afford insurance cover, pay for household bills or save in pension schemes, a debt consolidation loan may be advisable. Such a loan could be particularly useful for a number of Britons after a recent study by the Motley Fool indicated that 16 per cent of people are embarrassed by levels of indebtedness via loans, credit cards and other means. However, two-thirds of people believe that talking about money should be kept private, while a third that think any discussion on such a topic is "downright rude".
80205
A study released by Sainsbury's Finance has revealed that the expense of day-to-day living costs have risen by some 4.2 per cent between October and November. This is a figure which could well impact upon consumers' ability to meet various demands on their spending such as utility bills, store cards and loans.
However, research from the financial services firm showed that 21.9 million people have opted out getting at least one type of insurance product. Consequently, many Britons could well see that their capacity to manage their money tightened further if they have an accident for which they are not covered.
Overall, some 4.7 million consumers do not have any home contents insurance, with 4.28 million holidaymakers failing to purchase travel insurance cover the last time they went away. However, the financial services firm reported that "the situation is even worse" for the 55 per cent of dog and cat owners who do not have cover for their pets. And should their animal unexpectedly fall ill, such consumers may be forced to pay for veterinary costs themselves, something which could be financed through a personal loan.
Findings from Sainsbury's also revealed that 2.9 million adults claim that the main reason why they do not have insurance is because they see it as too expensive or are unable to afford cover. However, for many applying for a cheap consolidation loan could be a useful way in which to free up disposable income that in turn could be used to help purchase insurance, pay off bills or fund home improvements.
Steve Johnson, head of insurance for Sainsbury's Finance, said: "Insurance is an absolute must, but our research suggests that millions of people are playing Russian roulette by opting to do without. Those people finding it difficult to afford insurance due to the rising cost in living need to ensure that they shop around for the best cover because this can dramatically reduce price."
He added that people concerned about their capacity to afford insurance may wish to take out a policy over the internet. Seeking out cover online, the financial services expert reported, may see many consumers benefit from a discount of between ten and 20 per cent. Spreading the expense of a premium through a monthly direct debit was also suggested as one way in which to ease financial pressures.
For those looking to reduce pressure on their finance, whether to help them to afford insurance cover, pay for household bills or save in pension schemes, a debt consolidation loan may be advisable. Such a loan could be particularly useful for a number of Britons after a recent study by the Motley Fool indicated that 16 per cent of people are embarrassed by levels of indebtedness via loans, credit cards and other means. However, two-thirds of people believe that talking about money should be kept private, while a third that think any discussion on such a topic is "downright rude".
80205
Consumers 'Need To Take Steps To Avoid Spiral Of Debt'
Britons need to get into the habit of safeguarding their financial future, one industry expert has suggested.
According to Colin Jackson, director of Baronworth, discipline is required on the part of consumers if they are to avoid incurring pressure on their finances when they are older and to save money effectively for spending in later life.
Mr Jackson advised people to think about what they want to achieve when saving - whether it is putting funds away for retirement or financing a holiday - and so to choose the product which is right for them. However, should the current difficulties of the public struggling to save, whether on a long or short-term basis, persist, he suggested that "over time it will lead to major problems".
Yet, in taking such time to consider their finances, many may not only find that they are in a more advantageous position in which to invest cash into savings accounts but also become more able to make payments on areas such as loans and credit cards with greater ease.
He said: "The first thing is to get into the discipline of saving. If you decide that you really must save every month it's no good saying that you'll put 10 pounds in a building society account every month, set up some sort of saving scheme where it's paid by direct debit. Once you're into the discipline it becomes part of your general overheads and as far as the money in the bank goes you just pay your savings in each month."
Mr Jackson added that despite the recent credit crunch impacting upon the availability of cheap loans and other competitively-priced lending options, he is sure that "people will continue to borrow". However, he stated consumers using their credit cards to make mortgage payments could find themselves getting into a "spiral" of financial difficulties.
The director reported that as a "lot of people" use such a type of borrowing to meet such demands on their spending, they will often continue to use plastic cards to make up for shortfalls in their income at the end of each month.
In turn, he advised that those doing this "are in the most awful situation" in terms of attempting to get to grips with spending. Consequently, those looking to get out the money management difficulties induced by using several credit cards at once may wish to consider applying for a debt consolidation loan.
Alternatively, many people may find that taking out a personal loan is a more cost-effective option than using credit cards at all in terms of handling spending pressures as the former often carries more competitive rates of interest.
Whether looking to pay off numerous plastic cards at once or free up disposable income to invest into savings and pension schemes, the taking out of a debt consolidation loan could be advisable. And the help with finance that such a loan provides may be of particular help to a rising number of Britons.
A recent consumer confidence survey by GfK NOP revealed that the country's general economic wellbeing stood at -10 in November - the lowest figure noted since March 2003. Thus such a loan may be of use to those aiming at reducing pressure on their spending.
80203
According to Colin Jackson, director of Baronworth, discipline is required on the part of consumers if they are to avoid incurring pressure on their finances when they are older and to save money effectively for spending in later life.
Mr Jackson advised people to think about what they want to achieve when saving - whether it is putting funds away for retirement or financing a holiday - and so to choose the product which is right for them. However, should the current difficulties of the public struggling to save, whether on a long or short-term basis, persist, he suggested that "over time it will lead to major problems".
Yet, in taking such time to consider their finances, many may not only find that they are in a more advantageous position in which to invest cash into savings accounts but also become more able to make payments on areas such as loans and credit cards with greater ease.
He said: "The first thing is to get into the discipline of saving. If you decide that you really must save every month it's no good saying that you'll put 10 pounds in a building society account every month, set up some sort of saving scheme where it's paid by direct debit. Once you're into the discipline it becomes part of your general overheads and as far as the money in the bank goes you just pay your savings in each month."
Mr Jackson added that despite the recent credit crunch impacting upon the availability of cheap loans and other competitively-priced lending options, he is sure that "people will continue to borrow". However, he stated consumers using their credit cards to make mortgage payments could find themselves getting into a "spiral" of financial difficulties.
The director reported that as a "lot of people" use such a type of borrowing to meet such demands on their spending, they will often continue to use plastic cards to make up for shortfalls in their income at the end of each month.
In turn, he advised that those doing this "are in the most awful situation" in terms of attempting to get to grips with spending. Consequently, those looking to get out the money management difficulties induced by using several credit cards at once may wish to consider applying for a debt consolidation loan.
Alternatively, many people may find that taking out a personal loan is a more cost-effective option than using credit cards at all in terms of handling spending pressures as the former often carries more competitive rates of interest.
Whether looking to pay off numerous plastic cards at once or free up disposable income to invest into savings and pension schemes, the taking out of a debt consolidation loan could be advisable. And the help with finance that such a loan provides may be of particular help to a rising number of Britons.
A recent consumer confidence survey by GfK NOP revealed that the country's general economic wellbeing stood at -10 in November - the lowest figure noted since March 2003. Thus such a loan may be of use to those aiming at reducing pressure on their spending.
80203
Should You Get A Sub- Prime Loan For Your Mortgage
A sub-prime loan lender is a lender who lends money to borrowers who do not qualify for loans from mainstream lenders. Often these lenders are independent, and yet more are affiliate with prime lenders operating under different names.
The only clear giveaway are their prices, which are higher than those quoted by mainstream lenders. It is definitely to your advantage if you quality to go with a prime lender no matter what a sub-prime lender might tell you.
Sub-prime lenders base the rates higher the lower your credit scores are and the smaller the down payment is. The entire structure of rates and fees is higher to cover the risk of sub-prime lending.
If you fail to qualify for prime financing due to low credit scores you should then consider a sub-prime loan. A very low score will certainly disqualify you. A middle score might or might not, depending on the down payment, plus your income and assets.
The purpose of the loan and the property type could make the difference. For example, if the borrower is weak in some factors he could make it if he was purchasing a one-bedroom home, but if he were purchasing a four-bedroom home he would not qualify.
And other type of borrower for this type of loan is someone with poor credit scores. They apply for an adjustable rate mortgage on which the rate is fixed for two years, and then rises sharply. The trick is to refinance before the two-year mark.
The major threat to such a plan is a prepayment penalty that runs past two years and a lender fails to report their payment history to the credit agencies. Borrowers should be on their guard against both.
The development of the sub-prime market has made mortgages and home ownership available to a segment of the population that otherwise would have been shut out of the market. That's good news.
The bad news is that some borrowers who are eligible for loans from the prime lenders can end up in the sub-prime market and pay sub-prime prices.
Sub-prime lenders market aggressively to homeowners who already have mortgages. A major pitch is the cash the borrowers can take out of their properties through a cash-out refinance.
Also, lower payments are possible on interest-only mortgages and the option ARMs that are a gamble, which usually end up in a heavy loss. A higher percentage of sub-prime loans than of prime loans go into default.
Sub-prime lending costs are also higher because more applications are rejected and marketing costs are higher.
The best advice is to keep your credit score high, save for a deceit down payment, have little or no bills and go with a responsible prime or mainstream lender with a good reputation.
80200
The only clear giveaway are their prices, which are higher than those quoted by mainstream lenders. It is definitely to your advantage if you quality to go with a prime lender no matter what a sub-prime lender might tell you.
Sub-prime lenders base the rates higher the lower your credit scores are and the smaller the down payment is. The entire structure of rates and fees is higher to cover the risk of sub-prime lending.
If you fail to qualify for prime financing due to low credit scores you should then consider a sub-prime loan. A very low score will certainly disqualify you. A middle score might or might not, depending on the down payment, plus your income and assets.
The purpose of the loan and the property type could make the difference. For example, if the borrower is weak in some factors he could make it if he was purchasing a one-bedroom home, but if he were purchasing a four-bedroom home he would not qualify.
And other type of borrower for this type of loan is someone with poor credit scores. They apply for an adjustable rate mortgage on which the rate is fixed for two years, and then rises sharply. The trick is to refinance before the two-year mark.
The major threat to such a plan is a prepayment penalty that runs past two years and a lender fails to report their payment history to the credit agencies. Borrowers should be on their guard against both.
The development of the sub-prime market has made mortgages and home ownership available to a segment of the population that otherwise would have been shut out of the market. That's good news.
The bad news is that some borrowers who are eligible for loans from the prime lenders can end up in the sub-prime market and pay sub-prime prices.
Sub-prime lenders market aggressively to homeowners who already have mortgages. A major pitch is the cash the borrowers can take out of their properties through a cash-out refinance.
Also, lower payments are possible on interest-only mortgages and the option ARMs that are a gamble, which usually end up in a heavy loss. A higher percentage of sub-prime loans than of prime loans go into default.
Sub-prime lending costs are also higher because more applications are rejected and marketing costs are higher.
The best advice is to keep your credit score high, save for a deceit down payment, have little or no bills and go with a responsible prime or mainstream lender with a good reputation.
80200
Armed Service Communities 'To Receive Financial Help'
Both those currently operating in the armed forces and veterans of the services are on track to receive greater financial advice, it has emerged.
In a partnership due to last for three years, Citizens Advice, the Royal British Legion and the Royal Air Force Benevolent Fund are working together to provide a benefits and money advice service to help give guidance on money matters to people who have been in the services as well as their dependants.
As a result, those who have previously served their country and people currently operating in the armed forces may be able to operate with more confidence when organising their finances, whether this ranges from creating a budget and claiming benefits to searching for a cheap loan and getting a savings account.
The move will see advice for those at 18 Citizens Advice offices across England and Wales over the course of this month, in locations including Chorley, Portsmouth, Caerphilly, Exeter and Newcastle. Next year it is hoped that a further two branches will issue such guidance, which could mean that even more servicemen and women, both currently working for the armed forces and veterans, will be able to receive help on loans and other financial areas.
The scheme comes after a survey revealed that although the Royal British Legion offers help with money to the armed service communities via its Poppy Support programme, a "fully holistic service" is also needed. Indeed, a fifth of Poppy Support beneficiaries, about 5,550 people, believe that difficulty in managing debt is one of the largest problems they currently face. Findings from the study also showed that those serving for between three and five years are under the greatest hardship in paying back loans and other demands on their spending.
Commenting on the news, Harvey Tilley, head of community services for the Royal British Legion, said: "Recent research shows there is a need for more services which provide money and benefit advice to service personnel and their families. This new collaboration will provide much-needed additional support to all those currently serving in the armed forces as well as ex-service personnel and their dependants. We're very pleased to be working with Citizens Advice and the Royal Air Force Benevolent Fund in order to use our pooled resources and experience to reach more people."
Jackie Nowell, head of partnership development for Citizens Advice, added: "People linked to the armed forces have the same problems as everyone else, such as accessing benefits and need advice with money problems." She added that upon leaving the forces, many people may not be aware of which benefits they are entitled to or how to seek help with getting a job or housing.
As a result of receiving such guidance, those who have worked for the armed services, whether they have just left or are a veteran of many years, may wish to consider taking out a personal loan to help supplement their spending. Speaking earlier this year, Paul Morrish, head of Abbey Loans, claimed that people looking to borrow money for whatever purpose should apply for a loan from a professional financial services firm, instead of a friend or family member. Doing the latter, he suggested, could see people "risking a relationship meltdown".
80197
In a partnership due to last for three years, Citizens Advice, the Royal British Legion and the Royal Air Force Benevolent Fund are working together to provide a benefits and money advice service to help give guidance on money matters to people who have been in the services as well as their dependants.
As a result, those who have previously served their country and people currently operating in the armed forces may be able to operate with more confidence when organising their finances, whether this ranges from creating a budget and claiming benefits to searching for a cheap loan and getting a savings account.
The move will see advice for those at 18 Citizens Advice offices across England and Wales over the course of this month, in locations including Chorley, Portsmouth, Caerphilly, Exeter and Newcastle. Next year it is hoped that a further two branches will issue such guidance, which could mean that even more servicemen and women, both currently working for the armed forces and veterans, will be able to receive help on loans and other financial areas.
The scheme comes after a survey revealed that although the Royal British Legion offers help with money to the armed service communities via its Poppy Support programme, a "fully holistic service" is also needed. Indeed, a fifth of Poppy Support beneficiaries, about 5,550 people, believe that difficulty in managing debt is one of the largest problems they currently face. Findings from the study also showed that those serving for between three and five years are under the greatest hardship in paying back loans and other demands on their spending.
Commenting on the news, Harvey Tilley, head of community services for the Royal British Legion, said: "Recent research shows there is a need for more services which provide money and benefit advice to service personnel and their families. This new collaboration will provide much-needed additional support to all those currently serving in the armed forces as well as ex-service personnel and their dependants. We're very pleased to be working with Citizens Advice and the Royal Air Force Benevolent Fund in order to use our pooled resources and experience to reach more people."
Jackie Nowell, head of partnership development for Citizens Advice, added: "People linked to the armed forces have the same problems as everyone else, such as accessing benefits and need advice with money problems." She added that upon leaving the forces, many people may not be aware of which benefits they are entitled to or how to seek help with getting a job or housing.
As a result of receiving such guidance, those who have worked for the armed services, whether they have just left or are a veteran of many years, may wish to consider taking out a personal loan to help supplement their spending. Speaking earlier this year, Paul Morrish, head of Abbey Loans, claimed that people looking to borrow money for whatever purpose should apply for a loan from a professional financial services firm, instead of a friend or family member. Doing the latter, he suggested, could see people "risking a relationship meltdown".
80197
Financial Inclusion Programme Launched
Millions of Britons could be on track to receive increased help with money, it has emerged.
In the government's action plan for financial inclusion in the years between 2008 and 2011, Kitty Ussher, economic secretary to the Treasury, announced that some 135 million pounds is to be invested into promoting financial inclusion.
And following the implementation of various initiatives, many consumers may well find that they are in a more advantageous position to meet various financial demands such as loan repayments, household bills and mortgages.
As part of the programme, an estimated 38 million pounds will be ploughed into increasing access to low rate loans and other types of affordable credit for those consumers who otherwise may be forced to turn towards unscrupulous loan sharks. In addition, banks are due to do more to help financially-excluded people access products such as free-to-use ATMs and current accounts.
Meanwhile, some 76 million pounds has been invested to pay for free face-to-face advisory services for the financially-excluded. Following such guidance, many Britons may find that they are in a better position from which to manage their money, since it incorporates areas such as creating a budget, setting up a pension scheme or comparing loans.
In addition, an estimated 2 million pounds has been set aside to maintain the operation of the Office of Fair Trading's Save Xmas campaign. The promotion aims to help people be fully aware of the choices available to them when saving money for Christmas. Consequently, this may help many people to avoid problems in managing various areas of their finances such as making loan and utility bill repayments should there be a repeat of the Farepak Christmas scheme crash.
She said: "Exclusion from the financial system brings real costs, often borne by those who can least afford them. This is why promoting financial inclusion continues to be a key priority for the government as part of its commitment to fairness and social justice. It is not acceptable that anyone, but particularly the most vulnerable members of our society, should face costs which could easily be avoided.
"The action plan and funding I am announcing today sets out the government's intentions - that everyone is able to manage their money; plan for their future; and have the information, capability and confidence to prevent and deal with financial difficulty."
As a result, the economic secretary reported that the plans could "make a real difference" for Britons who are financially excluded and those who are on low incomes. Ms Ussher added that the government needs to do more to help consumers manage their money and "avoid a spiral of debt". Although she stated that "significant progress" has been made since the launch of the Financial Inclusion Fund in 2005, there is no room for complacency.
Following the provision of such guidance, a significant number of people could find that increased financial advice allows them to access more competitive forms of borrowing. In turn taking out a low cost loan could help consumers pay off numerous debts and free up disposable income which in turn could be invested into retirement funds. This may be helpful for many people as recent study by Scottish Widows revealed that about half of Britons are saving enough money into pension schemes.
80180
In the government's action plan for financial inclusion in the years between 2008 and 2011, Kitty Ussher, economic secretary to the Treasury, announced that some 135 million pounds is to be invested into promoting financial inclusion.
And following the implementation of various initiatives, many consumers may well find that they are in a more advantageous position to meet various financial demands such as loan repayments, household bills and mortgages.
As part of the programme, an estimated 38 million pounds will be ploughed into increasing access to low rate loans and other types of affordable credit for those consumers who otherwise may be forced to turn towards unscrupulous loan sharks. In addition, banks are due to do more to help financially-excluded people access products such as free-to-use ATMs and current accounts.
Meanwhile, some 76 million pounds has been invested to pay for free face-to-face advisory services for the financially-excluded. Following such guidance, many Britons may find that they are in a better position from which to manage their money, since it incorporates areas such as creating a budget, setting up a pension scheme or comparing loans.
In addition, an estimated 2 million pounds has been set aside to maintain the operation of the Office of Fair Trading's Save Xmas campaign. The promotion aims to help people be fully aware of the choices available to them when saving money for Christmas. Consequently, this may help many people to avoid problems in managing various areas of their finances such as making loan and utility bill repayments should there be a repeat of the Farepak Christmas scheme crash.
She said: "Exclusion from the financial system brings real costs, often borne by those who can least afford them. This is why promoting financial inclusion continues to be a key priority for the government as part of its commitment to fairness and social justice. It is not acceptable that anyone, but particularly the most vulnerable members of our society, should face costs which could easily be avoided.
"The action plan and funding I am announcing today sets out the government's intentions - that everyone is able to manage their money; plan for their future; and have the information, capability and confidence to prevent and deal with financial difficulty."
As a result, the economic secretary reported that the plans could "make a real difference" for Britons who are financially excluded and those who are on low incomes. Ms Ussher added that the government needs to do more to help consumers manage their money and "avoid a spiral of debt". Although she stated that "significant progress" has been made since the launch of the Financial Inclusion Fund in 2005, there is no room for complacency.
Following the provision of such guidance, a significant number of people could find that increased financial advice allows them to access more competitive forms of borrowing. In turn taking out a low cost loan could help consumers pay off numerous debts and free up disposable income which in turn could be invested into retirement funds. This may be helpful for many people as recent study by Scottish Widows revealed that about half of Britons are saving enough money into pension schemes.
80180
Food Costs 'Put Financial Pressures On Households'
Rising food prices are putting increasing financial strain on households, new figures show.
According to data released by the Office of National Statistics (ONS), the expense of food being produced by the likes of bakeries and dairies is running at 6.6 per cent - the highest rate of growth recorded since July 1993.
The office went on to suggest that such costs will be passed on to consumers at the supermarket checkout. And as a result of facing higher grocery bills, it is possible that many more people may struggle in meeting other demands on their finances, for instance home loans, household bills and mortgages.
It was suggested that wheat, vegetables and various dairy products have seen particularly dramatic price increases in recent months. This was largely attributed to the effects of the flooding seen this summer and last year's drought upon crop yields, the Daily Mail reports.
On an international scale, meanwhile, crop levels for animal feed such as soya and maize have fallen, which in turn has led to meat prices surging. Additionally, higher petrol and subsequent transport expenses have also helped to drive food costs up.
In particular, increased grocery costs are having a specific impact upon pensioners and other people who are on a low or fixed-level income. According to the figure, surges in the price of food have outstripped pension rises, with the basic state pension going up by just 3.9 per cent, the equivalent of 3 pounds 40p per week, next year to 90 pounds 70p.
Due to such differences in growth, many consumers may find that any rises their income may experience will be unable to combat surging grocery expenses. In turn, such an essential demand on their spending may well have an impact upon their ability to manage other areas of their finances, such as utility bills and loan repayments. A spokesperson for Help the Aged told the publication: "This situation is leading to unacceptable levels of poverty among pensioners."
However, figures collated by price comparison website Mysupermarket suggested that the ONS study could be underestimating the financial strain that many consumers are feeling. It pointed out that the average large, own-label loaf of white bread sold by supermarkets has gone up by 12.5 per cent, or six pence, over the last year to stand at 54 pence. Meanwhile, the cost of a kilo of own-label spaghetti has gone up by 76 per cent to 79 pence.
Overall, the annual rate of growth for essential foods was put at 12 per cent. In turn, the typical family of four who would have spent 90 pounds per week on food this time last year are now paying out an extra 10 pounds a week - a total increase of 520 pounds a year. As a result, this is a figure that could well impact upon making secured loan and household bill repayments. Johnny Stern from Mysupermarket added: "It's vital that families living on a tight budget seek out special offers to avoid paying over the odds, especially at this time of year."
People concerned about their ability to manage various commitments on their spending, whether this is paying back various credit cards and loans or meeting rising grocery costs, may wish to consider applying for a debt consolidation loan. Such a low cost loan could allow consumers to pay off numerous demands on their finances and so be left with more disposable income.
In addition, shopping around for everyday items may also help many to reduce spending problems. A recent study by Alliance & Leicester indicated that some 16 million consumers are paying too much for basic groceries such as bread and milk. However, just three per cent claim they do not bother to search for competitive offers on flights or expensive electrical products.
80172
According to data released by the Office of National Statistics (ONS), the expense of food being produced by the likes of bakeries and dairies is running at 6.6 per cent - the highest rate of growth recorded since July 1993.
The office went on to suggest that such costs will be passed on to consumers at the supermarket checkout. And as a result of facing higher grocery bills, it is possible that many more people may struggle in meeting other demands on their finances, for instance home loans, household bills and mortgages.
It was suggested that wheat, vegetables and various dairy products have seen particularly dramatic price increases in recent months. This was largely attributed to the effects of the flooding seen this summer and last year's drought upon crop yields, the Daily Mail reports.
On an international scale, meanwhile, crop levels for animal feed such as soya and maize have fallen, which in turn has led to meat prices surging. Additionally, higher petrol and subsequent transport expenses have also helped to drive food costs up.
In particular, increased grocery costs are having a specific impact upon pensioners and other people who are on a low or fixed-level income. According to the figure, surges in the price of food have outstripped pension rises, with the basic state pension going up by just 3.9 per cent, the equivalent of 3 pounds 40p per week, next year to 90 pounds 70p.
Due to such differences in growth, many consumers may find that any rises their income may experience will be unable to combat surging grocery expenses. In turn, such an essential demand on their spending may well have an impact upon their ability to manage other areas of their finances, such as utility bills and loan repayments. A spokesperson for Help the Aged told the publication: "This situation is leading to unacceptable levels of poverty among pensioners."
However, figures collated by price comparison website Mysupermarket suggested that the ONS study could be underestimating the financial strain that many consumers are feeling. It pointed out that the average large, own-label loaf of white bread sold by supermarkets has gone up by 12.5 per cent, or six pence, over the last year to stand at 54 pence. Meanwhile, the cost of a kilo of own-label spaghetti has gone up by 76 per cent to 79 pence.
Overall, the annual rate of growth for essential foods was put at 12 per cent. In turn, the typical family of four who would have spent 90 pounds per week on food this time last year are now paying out an extra 10 pounds a week - a total increase of 520 pounds a year. As a result, this is a figure that could well impact upon making secured loan and household bill repayments. Johnny Stern from Mysupermarket added: "It's vital that families living on a tight budget seek out special offers to avoid paying over the odds, especially at this time of year."
People concerned about their ability to manage various commitments on their spending, whether this is paying back various credit cards and loans or meeting rising grocery costs, may wish to consider applying for a debt consolidation loan. Such a low cost loan could allow consumers to pay off numerous demands on their finances and so be left with more disposable income.
In addition, shopping around for everyday items may also help many to reduce spending problems. A recent study by Alliance & Leicester indicated that some 16 million consumers are paying too much for basic groceries such as bread and milk. However, just three per cent claim they do not bother to search for competitive offers on flights or expensive electrical products.
80172
Tips For Savings On Car Loans
Obtaining car loans may sound like an easy process, but by following some basic rules, you can be sure of a good deal.
Car loans come right after you have agreed on the car price. Selecting the right car loan can be a very cumbersome process, especially if you are unaware of the loan application and approval procedures. Lack of knowledge about car loans and improper planning can cost you a lot of money in the car buying process.
Below Are Four Tips To Help You Get The Right Car Loan.
Research Before You Buy
Do a thorough research on the cars, which can fit your budget and requirements. A good research will enable you to make a better financial decision.Saving on car loans is much easier if you have a set budget for the car. You can always get on to the internet and compare rates and schemes of different car dealers.
Refer To Your Credit Record
Many people generally go for new car loans referring to finance magazines or news. These references will do no good if they do not stress on the importance of knowledge of your own credit record. You can get a copy of your record by contacting your credit bureau. You must not apply for car title loans if you are not aware of your credit record. Remember that any issue in your credit record is directly proportional to the interest rate of your car loan. Credit record is a document that has the basic information about an individual like name, security number, residence address, payment history and debts etc. potential employers or lenders.
Talk Like A Car Junkie
Sales representatives can go a little over the top if you are not able to understand the industry basics. However, if you know what your dealer is talking about, then the decision making will be far more accurate and thus, will enable you avail the right car loan.
Negotiate With The Dealer
Once you have followed all the above tips, you are prepared to negotiate the best interest rate on car loans available in the market. But before you finalize your loan, it is better to compare car loans provided by other lending institutions. A good market study will give you a good deal.
So before you actually decide to get one of these car loans for yourself, do your groundwork carefully to get the best deal on new car loans.
80165
Car loans come right after you have agreed on the car price. Selecting the right car loan can be a very cumbersome process, especially if you are unaware of the loan application and approval procedures. Lack of knowledge about car loans and improper planning can cost you a lot of money in the car buying process.
Below Are Four Tips To Help You Get The Right Car Loan.
Research Before You Buy
Do a thorough research on the cars, which can fit your budget and requirements. A good research will enable you to make a better financial decision.Saving on car loans is much easier if you have a set budget for the car. You can always get on to the internet and compare rates and schemes of different car dealers.
Refer To Your Credit Record
Many people generally go for new car loans referring to finance magazines or news. These references will do no good if they do not stress on the importance of knowledge of your own credit record. You can get a copy of your record by contacting your credit bureau. You must not apply for car title loans if you are not aware of your credit record. Remember that any issue in your credit record is directly proportional to the interest rate of your car loan. Credit record is a document that has the basic information about an individual like name, security number, residence address, payment history and debts etc. potential employers or lenders.
Talk Like A Car Junkie
Sales representatives can go a little over the top if you are not able to understand the industry basics. However, if you know what your dealer is talking about, then the decision making will be far more accurate and thus, will enable you avail the right car loan.
Negotiate With The Dealer
Once you have followed all the above tips, you are prepared to negotiate the best interest rate on car loans available in the market. But before you finalize your loan, it is better to compare car loans provided by other lending institutions. A good market study will give you a good deal.
So before you actually decide to get one of these car loans for yourself, do your groundwork carefully to get the best deal on new car loans.
80165
Tips And Advice For When You Apply For A Home Loan
One of the most important factors when choosing a home loans plan is making sure of the term. It makes sense when saying that if you choose a longer term to pay off your loan, the lower your monthly payments will get.
Some people prefer making larger payment so that their home loan can be paid off faster and because they believe that their property will increase in value. If you are planning to rent out your property the fact is true that you will more likely have a positive cash flow when you pay off your home loan in a short period. The other method is to increase the deposit you put down.
Advantages of Using Home Loan Brokers
Find the perfect home or property for an investment might seem to be the hardest part in the property transaction, but we believe that finding the best finance is much harder. The reason for this is because today we have so many options when applying for a home loan and there are so many companies claiming to provide the best and easiest home loans. A mortgage broker or bank can assist you in this process and save you a lot of time and probably a lot of money in the end.
Their job is to provide a service that makes it simple and lay out all the terms, interest rates, monthly payments and other factors which will suite your needs. You probably have already found your ideal home and now youre looking for financing, but it you havent it is a good idea to contact a home loans broker so that you can be advised as to what your price range are. You need to find a broker who has lender partnerships with at least 3 companies where they can find the best deal for you.
Risk vs. Reward
What are ARM loans? It is an Adjustable Rate Mortgage which might be perfect for you. With ARM home loans you are able to have a term where the interest rates are fixed. The term can be 2 months or 7 years. They are perfect for first time buyers or people who arent planning to stay in the property for more than 7 years.
It enables the buyer to have a lower initial monthly payment.
The only risk you take is that when you decide to refinance your home loan the interest rate might be higher at that time. It is important to know when to refinance and make use of a fixed rate home loan so that that you can have more security in the long run.
Paying Off Your Home Loan Early
Home loans usually have terms of up to 30 years. That does seem like youll never be able to pay it off. Find a way to make a bigger gap in the principle amount. The most common one is to spend that extra cash you have on your home loan. Even if you have an extra R500 it will still make a huge difference in 3 years.
By making that small sacrifice youre reducing your term dramatically. Another way is to increase your homes value by spending that R500 a month on your home. If youre not sure where the house needs attention, the kitchen and bathrooms are usually the best place. Kitchens and bathrooms make a massive difference in a home.
Say No to Prepayment Penalties
When you choose one of the home loans you applied for, make sure that you ask the lender regarding their prepayment policy. When the day comes when you have enough money to pay off your loan or you would like to refinance it, you dont want to make another payment just because youre paying off your mortgage early.
Prepayment penalties are usually unavoidable when youre a high risk client or a first time buyer, but if it is not necessary then dont sign it. You can save thousands.
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Some people prefer making larger payment so that their home loan can be paid off faster and because they believe that their property will increase in value. If you are planning to rent out your property the fact is true that you will more likely have a positive cash flow when you pay off your home loan in a short period. The other method is to increase the deposit you put down.
Advantages of Using Home Loan Brokers
Find the perfect home or property for an investment might seem to be the hardest part in the property transaction, but we believe that finding the best finance is much harder. The reason for this is because today we have so many options when applying for a home loan and there are so many companies claiming to provide the best and easiest home loans. A mortgage broker or bank can assist you in this process and save you a lot of time and probably a lot of money in the end.
Their job is to provide a service that makes it simple and lay out all the terms, interest rates, monthly payments and other factors which will suite your needs. You probably have already found your ideal home and now youre looking for financing, but it you havent it is a good idea to contact a home loans broker so that you can be advised as to what your price range are. You need to find a broker who has lender partnerships with at least 3 companies where they can find the best deal for you.
Risk vs. Reward
What are ARM loans? It is an Adjustable Rate Mortgage which might be perfect for you. With ARM home loans you are able to have a term where the interest rates are fixed. The term can be 2 months or 7 years. They are perfect for first time buyers or people who arent planning to stay in the property for more than 7 years.
It enables the buyer to have a lower initial monthly payment.
The only risk you take is that when you decide to refinance your home loan the interest rate might be higher at that time. It is important to know when to refinance and make use of a fixed rate home loan so that that you can have more security in the long run.
Paying Off Your Home Loan Early
Home loans usually have terms of up to 30 years. That does seem like youll never be able to pay it off. Find a way to make a bigger gap in the principle amount. The most common one is to spend that extra cash you have on your home loan. Even if you have an extra R500 it will still make a huge difference in 3 years.
By making that small sacrifice youre reducing your term dramatically. Another way is to increase your homes value by spending that R500 a month on your home. If youre not sure where the house needs attention, the kitchen and bathrooms are usually the best place. Kitchens and bathrooms make a massive difference in a home.
Say No to Prepayment Penalties
When you choose one of the home loans you applied for, make sure that you ask the lender regarding their prepayment policy. When the day comes when you have enough money to pay off your loan or you would like to refinance it, you dont want to make another payment just because youre paying off your mortgage early.
Prepayment penalties are usually unavoidable when youre a high risk client or a first time buyer, but if it is not necessary then dont sign it. You can save thousands.
80146
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