Which Way To Pay

Want to Start Saving Money? Here are Some Tips!

2011-12-20T16:11:00.001Z

Saving money is not fun or easy. But it is necessary, especially now that the economy doesn’t seem to be recovering any time soon. With the expense of Christmas hanging over many of us, the New Year is as good a time as any to start thing about your finances. Adding to your savings accounts is often simple; spend less money! It often means that you have to change some of your habits, which is the hardest part of all. Follow these tips to make a real difference to your outgoings!

1. Keep a note of all that you spend for a couple of weeks. Writing down every pound you spend, in cash, through direct debit, by card or credit card, will make you sharply aware of where all your money is going and even in itself stop you from spending.

2. Use the data you collect on your spending to identify your weak points. Whether it’s eating out, buying clothes or high rent, there are ways of cutting down.

3. Keep a copy of your most recent bank statement on your fridge or somewhere where you see it every day, to keep your balance in your mind and make you more careful when spending.

4. Cut back, stop spending and watch the money roll in!

Keen to Cut Your Petrol Bills? Here’s How!

2011-11-29T16:28:00.000Z

The price of petrol at the moment is enough to make anyone flinch at the pump. Whether you just want to save money, or are more concerned about the environment, there are some things you can do to cut down on the amount you spend on filling up the tank without cutting back on the amount you drive.

Here are a few simple tips that anyone can follow. They might seem like small changes, but if you stick to them, you’ll notice your petrol bills going down.

1. Find the cheapest place to buy petrol and forward plan to fill up there. Many of us try to buy petrol at cheaper garages, but make sure you do it every time. Larger supermarkets often have the lowest prices.

2. Drive slower on the motorway. You might not think that driving at 70mph instead of 80mph will make a difference, you save in excess of £10 depending on the length of your journey.

3. Empty your boot of things you don’t need. If you car is very heavy, you will be paying more in fuel to move it.

4. Drive in as higher a gear as possible! This will mean your engine will run more efficiently and you will save some cash today!

What is a Payday Loan?

2011-11-22T17:29:00.002Z

Since the economic crisis and the recession, banks have been more and more reluctant to lend money. All types of borrowing have become more difficult to get approval for, from small personal loans to mortgages. This has however opened up the loan market to a range of private loan companies which now offer a new range of loans for your convenience.

One loan that has become very popular over the last few years is the payday loan. As the name implies, these loans allow you to borrow smallish amounts of cash to tide you over until your next payday. The loan amounts are relatively small, ranging from £100 to £1000, and the loan lengths are short, normally 2 weeks to a month.

As the nature of the loan means that you need it quickly, you can often have the money put into your bank account on the same day as you apply. In some cases, you can even have the cash within 15 minutes. This feature of the loans is helped by the fact that credit checks are rarely carries out, making approval instant.

You have to be over the age of 18, be a UK citizen, have a bank account and you may have to provide proof of employment. As the loan amounts are small and for short periods of time, the interest rates are quite high. But if you are stuck for cash, need to pay the rent, for emergency dental treatment or a car repair, then a payday loan could come in very handy.

Want to Save on Your Heating Bill This Winter? Here’s How!

2011-11-16T17:04:00.000Z

With the big 6 energy companies hiking up their prices by up to 18% this winter, more people across the UK will be in fuel poverty than over the last few years. Fuel poverty is when more than 10% of a household’s income goes on heating their home. Although things may not be that bad, we all could do with reducing the amount of money we spend on our gas bills.

Just as with saving money on anything, it’s not always easy and old bad habits must be broken in order to save. If you are serious about reducing your bills, helping the environment and saving yourself some cash. There are various small changes you can make, and bigger ones too, to save money today! Just follow these tips.

1. Insulate your home! Lagging your boiler and insulating the attic will save you more than you might think.

2. Turn it down. Have your heating on a lower heat to save money.

3. Turn it off. If you put your heating on a timer, you can often get away with having it on for just a couple of hours in the morning and a few hours at night.

4. Invest in double glazing! This costs money initially, but will save you in the long run.

5. Layer up. Put more clothes on, drink hot drinks and make a hot water bottle before you reach for the thermostat.

Keen to Start Saving? Here Some Tips to Get you Started!

2011-11-11T16:56:00.001Z

Saving money is not an easy thing to do at the best of times, let alone at a time when borrowing has become expensive, pay freezes are common and prices are rising. Saving money is not something that happens by itself; it takes planning and some effort.

The main thing you can do to make a difference is to stop spending! This is the only real way you will be able to add to your savings accounts. Here are some tips to help you pin point the areas you can save on today!

1. Keep a diary of all your outgoings. This is a great place to start to get a clear picture of your bad spending habits.

2. Cook at home, avoid eating out in restaurants and buying take aways. You’ll be surprised how much money you’ll save.

3. Keep a copy of your bank statement on the fridge to keep your finances on your mind so you’ll be more careful with your money!

What Could You Get With a Reward Credit Card?

2011-11-01T16:36:00.002Z

Many of us have credit cards. They are a fantastic way to keep our finances ticking over and ensure the smooth flow of money without paying interest for borrowing short-term. They can help you build up a good credit rating, making it cheaper and easier to borrow in the future, as well as giving you insurance on all of you online purchases.

There is more to credit cards however, if you want there to be. Reward credit cards have all the same features as a regular credit card, except that they give you the ability to collect points as you use it. These points are then redeemable for a range of rewards of your choice.

Whatever you’re into, there is a reward credit card out there to suit your needs. You can get reward cards for your favourite supermarkets, giving you points to spend in store; you can get gaming cards to buy games, gadgets, films and more with your points; you can go shopping for free and get hefty discounts; you can collect air miles to put towards your holidays and you can even get free insurance.

There is a wide range of cards out there, so it’s worth doing your homework to find the best deal for your spending habits. Make sure you compare all features of the cards, from annual charges, the amount of points you will collect with each pound you spend and the interest rates.

Consolidation Loans Explained!

2011-10-27T14:51:00.002+01:00

Put simply, a consolidation loan is a loan that allows you to pay off your debts. This means that instead of making multiple payments to multiple companies, your debts are consolidated into one lower payment each month for a longer period of time. Although you will still owe the same amount of money in the long run, these loans can really take the pressure off.

A consolidation loan doesn’t just ease the pressure of mounting debts, but it can even have a payment protection scheme is some cases. This means that if you are ill, in an accident or lose your job, you are covered for the payments, taking all the worry away, especially if you have dependents.

You should always research all the options available to you before committing to a loan. Different companies may offer you different deals as often the loan is tailored to your personal circumstances. It’s best to weigh up your options; having to pay big bills every month puts pressure on you, but these loans do have higher interest rates, so you will be in debt for longer.

How Could a Payday Loan Help You?

2011-10-17T16:56:00.001+01:00

The global economy is slowly worsening; as the European debt crisis sluggishly goes on and economic data continues to disappoint, it has become increasingly difficult to get approval for loans from banks. Loans from traditional institutions like banks are also mostly long term and for large amounts. So what if you only need to borrow a relatively small amount of money, but don’t know where to get it from? This is where payday loans have come onto the market.

You can only borrow from £100 to £1000, usually for a couple of weeks to a month. This means that these short-term loans are great for tiding you over until your next payday and getting you out of a tight financial corner. Whether you need money for an unexpected expense of any kind, need some spending money for holiday or need to take you car to the garage, a payday loan could be the answer.

You have to be over 18 years old, have a bank account, be a UK citizen and you may need to provide proof of employment. Credit checks are very rarely carried out, so if you have had debt problems in the past, you don’t have to worry about not being approved. The application forms are mostly online, and as there are no background checks, you often will get the money in your account within a matter of hours.

Although the lack of credit checks has its advantages, it also means that these loans are relatively high risk to the lender, meaning that interest is often high. If you budget properly to pay back the loan as soon as possible, this does not have to be a problem. Do however make sure you are fully aware of how much you will be expected to pay back before you agree to anything. Shop around and find the best payday out there for you!

Spending Too Much on Food?

2011-10-13T17:11:00.001+01:00

It can often feel like you’re spending all your money on food. Prices seem to be going up constantly, from meat, fruit and vegetables to coffee and restaurants; it’s easy to spend a bomb just feeding you and your family. The trick with saving money on food is the same as saving money on anything - find a cheaper option and stop spending! Being aware of how much money you are spending is the first step. You won’t save anything without trying and making some cut backs.

The best step you can take towards saving is to cook at home from basic ingredients. By choosing meals that have inexpensive ingredients, you can really stretch out your budget. It is often healthier to cook meals yourself as you can more easily regulate fat, calorie and salt content. Avoid restaurants and take-aways when you can, the mark up is more than you might think!

Another great way to save is to take lunch into your place of work from home, or buy basic ingredients in a supermarket. The prices of sandwich shops, cafes and restaurants are hugely elevated, so why not make your own?

The bigger the supermarket, the lower the prices. Perhaps you should consider switching supermarket to a less expensive one if you really want to save money. Smaller convenience stores always have higher prices, so forward planning will save you money so you don’t have to pop around the corner to pick up extra items.

If you like your coffee, and buy one from a cafe on the way to work, this can really mount up. Why not make your coffee at home or at work? It might seem like a hassle but if you’re spending £3 a day on coffee, that amounts to £60 every month, so it’s really worth it.

Start Saving on Petrol Today!

2011-10-07T16:44:00.001+01:00

With the price of petrol going through the roof, it’s no wonder that people across the UK are cutting down on the amount they use. Using your car is often the most convenient option, but it’s time to ask yourself is it the most efficient? There are various things you can do to cut down on the amount of money you spend on petrol, with the added bonus of being kind to the environment.

1. Walk, cycle or take public transport on short journeys. A cold engine uses more fuel, making shorter distances less efficient.

2. Get rid of excess weight in your vehicle. A full trunk will require more petrol to shift.

3. Drive slower! It’s obvious, but the faster you drive, the more petrol you use.

4. Keep your engine well maintained, it will be more efficient and use less fuel.

5. Share car journeys with friends, family and neighbours when you can.

Pet Insurance Explained

2011-09-28T15:53:00.000+01:00

As a nation of animal lovers, many of us have pets. Whether you’re potty about parrots, dizzy over dogs or crazy for cats, the chances are you will need to visit the vet at some point. If you have pets, you know how much these bills can amount to. Pet insurance is a must. You can get all types of cover for a whole menagerie of animals. There is no equivalent to the NHS for your pets, so whether it’s a major operation or a general check-up, you’ll be footing the bill.

You can get cover not only for vet bills, but also if your pet is stolen, strays or dies. You can also get third party liability cover if your animal causes an accident, does any accidental damage and even holiday cancellation due to your pet.

There is often an excess to pay on any vet bill however, which is usually at a level which means you will have to pay for flea control treatments, worming and vaccinations. But this is not always the case, so make sure you fully understand the terms and conditions before you buy.

There are countless numbers of companies that offer insurance, so do your homework and find a policy that suits you and your beloved pet. Most companies cover cats and dogs, but if you have a more unusual animal like a reptile, exotic bird or horse, you may need to find a more specialist insurance company.

There are many pitfalls to look out for when buying pet insurance, other than an excess. Some policies will only cover a certain condition for a year. This means that if your pet has a reoccurring problem, anything from a specific type of cancer to an allergy or epilepsy, then you will only be covered for the first year. Always read the small print!

Want to Save Money But Don’t Know Where to Start?

2011-09-22T16:26:00.001+01:00

Every day seems to bring more bad financial news at the moment, and even if you don’t understand completely the implications of it, we all know it’s not good. If ever there was a time to examine your finances and where your money is going, then this is it.

Saving money however is not always that easy. There always seems to be one reason or another cropping up meaning we can’t add to our savings accounts. It’s your mum’s birthday, the kids need new shoes, you’re going on holiday or whatever it is, there is always something. It can easily feel like your finances are out of your control.

There is no need to feel like this! If everything is a bit overwhelming and you are looking for some clarity, then keep a financial diary for a month or two. Write down everything you spend, in cash and on cards, even direct debits. A picture will quickly emerge of your spending patterns and bad habits.

We all have weaknesses and it’s usually the little things that add up rather than bigger expenses. Look at what you spend your cash on, and if there are ways to avoid parting with this money. We all have busy lives, but this trick is simple and doesn’t take much time. You’ll find that you save money just by keeping the diary as writing everything down will make you more reluctant to spend.

Whether you eat out once or twice too often a week, indulge in expensive clothes, taxis or holidays, there are always areas that you can work on with your spending. Old habits are hard to break, but think about what you’re buying and find a cheaper alternative. You’ll be so grateful in the long term .

Ways to Tackle your Debt!

2011-09-15T14:22:00.001+01:00

There is nothing worse than worrying about money, especially if you have children or any other dependents. It can keep you awake at night, and the stress can seriously affect your health. There is no need to suffer in silence as there are various options available to you to sort out your finances once and for all.

If you feel like you’re drowning in your debts, then a consolidation loan could make all the difference. Owing a range of sums of money to several lenders, all at different interest rates and with different deadlines can be extremely stressful. A consolidation loan allows you to pay off all of your existing debts at once. This leaves you with only one monthly repayment, with one loan to keep track of. The monthly repayments are much lower, and the interest rate is considerably less than you were paying before.

As these loans are specially designed for those in debt, you don’t have to worry about being accepted for bad credit. You can apply online and get your debt situation sorted before you know it. The company will assess your debts and devise an appropriate loan amount, interest rate and repayment plan to suit you. Remember that the lower monthly payments don’t mean you owe any less money in total, and it will take you a lot longer to get out of debt.

If a consolidation loan is not for you, then the best option is to consult a debt solutions company and get your own personalised debt management plan. These are flexible financial plans that can help manage your debt should you not be able to keep up with repayments. The professionals at your debt solutions company will be able to negotiate with your creditors for you when making your plan. Interest rates may be frozen, and you often will be left with a lower monthly payment. You may have to have a minimum amount of debt to qualify for a debt management plan, usually of about £1000, so it’s important to check the terms.

Whatever method you go for when sorting out your debts, it’s important to address the problem sooner rather than later. Paying back existing debts by taking out other loans will only suck you into a debt spiral that is extremely difficult to get out of. So don’t bury your head in the sand and look towards a brighter, stress-free future for you and your loved ones.

Retail Sales Across the UK Fall in August

2011-09-06T15:29:00.001+01:00

According to the British Retail Consortium retail sales across the UK dropped throughout August. As heightened inflation and poor consumer confidence continue to negatively affect spending, a marked decrease was seen on the high street. The group however did dismiss the riots as being a major cause in the drop, saying the disruption was not widespread or long enough to have any significant affect on the sales figures. Data releases on Monday did suggest that the riots did affect footfall on high street throughout the UK, which inevitably would affect sales.

The British Retail Consortium has said that like-for like sales dropped by 0.6% in August this year compared with 2010. This figure does not include sales figures for new stores. Total sales for August 2010 saw a 2.8% increase. This year however the figures were only up by 1.5%.

Other data published yesterday again showed sluggish activity in the services sector in the UK, which saw the largest monthly decrease for over ten years. Food and drink sales increased during the month, whereas clothes remained the same. All other goods, including furniture and footwear, saw falls in sales.

It would seem that high inflation, knocked consumer confidence and the squeeze of personal finances across the country are taking their toll. Many of us are dipping into our savings accounts in order to maintain the lifestyle we have grown accustomed to but perhaps can no longer afford. Others are taking out loans and putting more and more expenses on credit cards.

We put advice articles up on our website every day, with tips on how to save money as well as explaining financial products that could help your situation and make things a bit easier. Click here to read some.

Do You Need a Payday Loan?

2011-09-02T12:14:00.001+01:00

We all have months where our paycheques just don’t stretch far enough. If you get caught out by an unexpected bill, dental cost or car repair, there are loans out there that are specifically designed to help you out of a tight financial situation. Payday loans are tailored to lend you relatively small amounts of money for short periods of time.

You can typically borrow anything up to £1000, usually for a period of a couple of weeks to a month. The application process is quick and easy, with online forms that can be completed in minutes. Credit checks are rarely carried out, making it easy to get your hands on the money you need.

The criteria for being approved for a payday loan is pretty straight forward. You have to be over 18 years old, be a UK citizen, have proof of employment (although this is not always needed) and have a bank account. The money can be in your account within 24 hours.

The loans are short-term, meaning that the interest rates on borrowing can be high. The more money you borrow, the more interest you will have to pay so be careful that you fully understand how much you will be expected to pay back. This factor of the loans also can get people into spirals of debt; once they have paid back the first loan, they need another one to tide them over until the next payday and so the cycle continues. If you are sensible with your budget and make the repayments, payday loans could really get you out of sticky financial situation.

What Benefits Can I Get With My Credit Card?

2011-08-30T15:42:00.000+01:00

Choosing a credit card can be difficult at the best of times. Today there are hundreds of deals to choose from, and it can all get a bit much. Whether you just a regular credit card or one that offers rewards, there is something out there appropriate for you, it just might take a bit of research.

First things first! Decide how you want to be rewarded! Other than reward credit cards, which offer a variety of ways you can benefit from your spending, you can now get football credit cards and even charity credit cards.

Reward credit cards let you collect points as you spend, which are redeemable for a variety of things from air miles, hotel rooms, a selection of shops and even petrol. You can now sign up to cards that have even more specialised reward schemes.

Football credit cards are being put on the market by many of the top football clubs in England. These cards let you collect points as you spend, which are redeemable for exclusive offers, merchandise and even tickets for games. Often the card provider will make donations to the club on your behalf without you spending a penny.

Charity credit cards work under the same premise as other reward credit cards, the only difference being that you earn money to be donated to your preferred charities. By having one of these cards, you can donate to worthy causes as you spend, the money coming from the credit card provider not your pocket. This is a great way, as well as donating, to contribute to charitable causes.

Whatever it is you are after from a credit card, always make sure you do your homework and fully understand what it is you are signing up to. Never borrow more money than you can afford to pay back, as you could be in danger of getting into a debt spiral and seriously damaging your credit rating and chances of borrowing again in the future.

What Is A Payday Loan?

2011-08-19T16:50:00.005+01:00

With the cost of living increasing almost daily, money can get tight sometimes. Why not get a payday loan to tide you over? If you are bit low on cash, or get an unexpected bill or expense, then a payday loan could get you out of a financially sticking situation. You can normally borrow anything up to £1000 for a period of 2 weeks to a month, so they are specially designed to give you a bit of cash until your next paycheque clears.

There are lots of different payday loan companies out there, so make sure you research the market before you commit to anything. Never borrow more money than you can afford to pay back, or you could get into debt. You can compare different companies on our website, click here to have a look.

Violence in London Spreads, is the Cause Poverty?

2011-08-09T17:36:00.002+01:00

London is today recovering from the third and most destructive night of violence yet across the capital. The rioting, beginning on Friday in Tottenham following a peaceful protest after the shooting of local man Mark Duggam. Copy-cat activity started almost immediately across London as many youths saw the opportunity to wreak havoc and loot local businesses. The violence and destruction then continued over the next two nights, and has been starting earlier and earlier in the day, with many employers across London sending people home early from work to insure the safety of employees. But can this widespread violence, now being seen in cities outside of the capital, really just be put down to a degenerate few. It would seem that we are in the midst of a social breakdown, unhelped by the high unemployment rate and increasing poverty across the country as the financial crisis is now thought to lead to a double-dip recession.

There is no doubt that the people taking to the streets are from poor backgrounds. The recent impact of cuts in local council funds to general effects of a global recession such as the price of fuel skyrocketing and energy prices going up considerably have all affected the household budgets, incomes and even benefits in recent months. The growing tension between the poorer and the richer population has been on the up, with the richest 10% of the population in the UK now earning 100 times what the poorest equivalents live on.

Although these social problems in no way excuse the violence and criminality being seen on the street of London from Enfield to Ealing, the problems undoubtedly run deeper than just a bunch of greedy kids.

E.On Ups the Cost of Energy

2011-08-05T16:30:00.002+01:00

Energy provider E.On is now number 4 of the 6 biggest energy companies to hike the price of electricity and gas. The hike will see the cost of gas increase by 18% and electricity to go up by 11% from 13 September this year. The significant increase has been blamed on the 30% hike on wholesale energy earlier this year. This comes as the government released estimates that these rising prices of energy will see up to a fifth of UK households in fuel poverty. Fuel poverty occurs when more that 10% of the household income is spent on fuel to keep warm.

The 5 million customers, both domestic and business, of E.On have already seen a rise in the cost of energy this year, when the company hiked the price of electricity by 9% and gas by 3% in February. These combined increases mean that by the end of the year customers will be paying 22% more for fuel, roughly equating to an increase of £250 on every £1000 spent, a significant hike.

Nervous About the Impending US Debt Doom? Better Get Saving

2011-07-29T16:41:00.002+01:00

As we await the US government's new legislation to be passed and the debt ceiling to be raised, hopefully saving all of our skins, the international financial markets have all but clammed up as investor confidence takes a beating. With the price of energy increasing, with promises from British Gas of further price hikes before the year is out, and the cost of petrol literally is driving away with our disposable income, it may be time to adjust the standard of living we have become so accustomed to and tighten our proverbial belts.

There are various ways you can save money on a daily basis, but also other ways you can save cash in the long run. Whether it’s insulating your home properly to avoid wasting money on heating, or properly planning the meals of the week to keep the cost of food down, making small changes to the way you live could really make a difference.

At Which Way to Pay, we don’t only strive to give you the best, impartial advice and reviews of financial products, but also to keep you up to date of financial news and give you general financial advice on a daily basis. On our website you will find hundreds of tips and pointers to help you make the most of your money, and to help you feel a bit more in control of your situation in this time of turbulence in the economy.

Click here to read some advice articles.

Famine In Somalia

2011-07-20T16:48:00.002+01:00

UN Declares Famine in Somalia

Somalia has been fraught with civil unrest for many years, most notably now much of the south and centre of the country are controlled by Al-Shabab, a group closely affiliated with al-Qaeda. In 2009 the group banned foreign aid agencies access to its territory, only recently allowing aid into limited areas. The worst drought seen in the country for 50 years has not been dealt with as well as it could have been, the recent violence and civil leaving the country ill-equipped. Now Somalia is suffering badly from famine, especially in southern Bakool and Lower Shabelle where the gravity of the situation has escalated rapidly.

The UN have not declared a famine in the country since 1992. The majority of aid agencies such as the FAO, Save the Children UK and Oxfam, only label a crisis as a famine when the area in question reaches level 5 on the Integrated Phase Classification (IPC) system. This level means that a minimum of 20% of the entire population have access to fewer than 2100 kilocalories worth of food per day, acute malnutrition is seen in over 30% of minors, and 2 people die in every 10,000 or there are 4 child deaths in every 10,000 children each day. This is the case in Somalia at the moment, and may spread to Ethiopia and Kenya who also saw little rainfall, and therefore depleted crops, since the beginning of the year.

The UN have said that getting aid to the worst affected regions have been limited by the need for further safety guarantees from the armed Al-Shabab across the country to ensure the safety of aid workers. So far over 10 million people have been affected by the famine, and over 25% of the country’s population have been displaced from their homes. The UN and the Disasters Emergency Committee are calling for much needed donations to the cause, as Mark Bowden, the UN humanitarian co-ordinator for Somalia, has said that $300 million is needed to tackle the famine over the next two months.

Students Are Building Up Enormous Debts

2011-07-07T15:59:00.000+01:00

Student debt will reach an eye-watering £70 billion over the next four years. It appears that ministers vastly underestimated the number of universities that would charge maximum tuition fees.

Students will be building up personal debts of up to £50,000 which could affect their credit ratings detrimentally. A poor credit rating could prevent a former student being granted a mortgage.

Students will be building up huge debts, and some will default on their loans. This could be the start of a worrying pattern of loans being reneged upon by those who originally took them out.

The potential debt burden that young people take on if they go to university will lead to some of them giving the decision some serious consideration.

Some students who are still at school may feel that their time would be better spent getting into work, establishing financial independence as opposed to falling into crippleing debt.

The Pound Is Down Against The Euro As Athens Burns

2011-06-29T16:52:00.000+01:00

Despite the fact that Greece appears to be imploding the pound has still fallen against the euro today. The problem is that the UK services sector has slumped recently.

The pound fell to €1.113 today, the lowest level for the past month.

Commentators have been waiting for poor services output figures after the number of bank holidays the UK has had this year. Closing the banks inevitably hits the service industry. On the bright side people have argued that the month of April was an exceptional month for the UK service industry and figures in May will be more in line with positive growth.

A further problem is that the Bank of England has left interest rates on hold for so long. Many people have argued that this is weakening the economy and the pound. Doves on the MPC have argued that interest rates will stay low as long as the UK economy falters. Bears argue that the economy is struggling because of low interest rates.

Thorntons Will Close 180 Stores Nationwide

2011-06-28T17:06:00.000+01:00

On the one hundredth anniversary of Thorntons chocolatiers they have announced that they will be closing up to 180 stores.

The closures will put between 750 and 1,125 jobs at risk although the company has said that they will attempt to find alternative employment for some of the sacked workforce.

Thorntons has joined the list of high street stores that have been hit hard in the recession. Habitat and Oddbins have also been casualties of the downturn.

Redundancies will hit families hard. Many families’ finances have been stretched to breaking point in the current economic climate. They may even put pushed into debt.

Many commentators have said that the recession will bring about the end of the high street. It is so much cheaper to run stores online. Online stores save on property rental prices as they do not need expensive high street lots. Internet businesses save people the effort of making the trip to the shops.

Food Prices Rise by 25.0%

2011-06-08T16:38:00.000+01:00

Food bills have reached the highest level for two years. Basic food stuffs such as bread and pasta have increased in price by 25.0%.

Poor harvests over the past few years combined with low rainfall this year have resulted in rising food prices. Wheat prices have increased by up to 72.0% on last year, corn by 112%.

People forget the majority of livestock do not graze, they are fed animal feed which will often be cereal based. As the price of cereals rises so does the price of meat.

This news will not be well received by many families who are already struggling in the current economic climate. The combination of rising food prices and utilities bills will be a two pronged attack on families in debt.

Speculators are the target of many complaints as they buy and hold commodities, waiting until demands is high to release them on the market. This style of business can cause artificial shortages which affect the world population.

Are Rising Tuition Fees Putting People Off Going To University?

2011-06-01T17:43:00.000+01:00

Year on year the number of people going to university has increased. This year, the number of applicants has fallen. This year students will have to pay hgiher tution fees. We can assume that it is no coincidence that the two events have come as a pair.

People are clearly considering alternatives to going to university. Students must think about whether the investment of time and money is well spent when they could go into work earlier, gaining valuable experience.

All universities are permitted to raise their fees to £9,000 per year. Some commentators have said (although some people may disagree) that the value of a degree from a Russel Group university is probably higher (in the workplace) than a degree from a former polytechnic.

This sort of view has resulted in people suggesting that those who pay full fees at universities should be allowed in separate to those who are receiving student loans. This suggestion has been received with consternation.

Resist Temptation When Offered Credit By Online Stores

2011-06-01T17:23:00.000+01:00

Commentators have argued that online shoppers are being taken advantage of by greedy shops. Some online stores are now charging almost twice the usual rate of major credit cards when they use buy now, pay later credit accounts.

The rates of interest that these in store accounts use are eye wateringly high. Interest rates of 39.7% are not uncommon. Some people feel that the rate of interest on standard credit cards is too high at 17.0%.

People already get themselves into enough debt by overspending on credit cards and eating into their overdrafts. These store accounts are another way to bleed money from those foolish enough to keep spend beyond their means.

It is all very well that saying that people should be disciplined with their spending but the fact is that these stores take advantage of people who are quick to react to the call to arms to spend, spend, spend.

UK Household Spending Hits A Low

2011-05-25T17:42:00.001+01:00

Britain’s economy is not as stable as some commentators would like to have us think. House hold spending - a useful indicator of the state of the economy- is scraping the lowest rate for two years.

Understandably, people just don’t want to hit the high street when their most basic expenses such as gas and electricity are shooting through the roof.

It is doubtful that consumer spending is going to be revived by creating a shopping Tsar. David Cameron’s latest gimmick of placing a television savvy celebrity in a position of governmental responsibly is worrying.

Mary Portas may be nicknamed the “Queen of Shops” but I hardly think that tinkering with a few window displays will mend our broken economy.

What is next? Nick Clegg gets “Jimmy” of “Jimmy’s Farm” fame (Heard of it?) to head up the United Nations World Food Programme?

The mind boggles.

Current Generation Don’t Understand The Meaning Of Money

2011-05-25T17:27:00.000+01:00

Will the current generation of university graduates ever be financially independent? Worryingly, many commentators think not.
The current generation of graduates have got so used to the financial support of their parents that they could not do without it.

Where financial support ended at employment for the previous generation, now children expect their salaries to be topped up by their parents.

Research carried out recently has shown that children, far from becoming less of a drain on their parents’ resources on leaving school become even more of a financial millstone.

In the current economic climate many parents’ finances are already squeezed to bursting point yet they still feel the duty to help their children out.

The generation labelled the “coping generation” has spawned a generation of takers. The question is when do parents say no?

It appears that parents set themselves no boundaries when it comes to providing for their children, they will even push themselves into debt.

University Fees – The Price Of A Good Education

2011-05-09T17:25:00.000+01:00

Universities can now charge a maximum of £9,000 per year. Although universities cannot exceed this limit there are other factors that need to be taken into account when assessing how much a university education now costs.

Very few universities provide accommodation for their students all the way through university. If you want to study in central London you have to take the price of renting into account.

Students attending the prestigious London School of Economics (LSE) will have to suffer the most expensive living costs and education combined. It is estimated that three years studying at LSE will cost £52,319.

Both second and third place are taken by other London universities.

Cambridge pips Oxford to the post in terms of expense: Three years in the fens will cost just shy of £50,000.

If you want to go to university you need to have a good job lined up for after graduation.

Energy Bills Will Continue To Rise This Summer

2011-05-06T17:13:00.002+01:00

The past few months may have been scorchers but this will not stop your energy bills rising. Both oil and gas prices have steadily risen over the past year.

Crude oil prices have risen due to worries about supplies caused by the Arab Spring. Rising crude prices mean inevitably mean rising energy bills.

Average energy bills are now almost £200 more than they were three years ago.

In order to find the best deal for your utility bills do some research, it really pays off. Use price comparison websites to get money off.

Rising utilities bills will hit families with lower incomes who will already be feeling the pinch. One commentator said that if things carry on this way then the government will need to provide some sort of subsidy or relief for lower income families.

Our advice is, keep the heating down.

Increasing Frequency Of Financial Worries May Be Linked To Rising Number Of Cases Of Depression

2011-04-08T11:45:00.000+01:00

A number of indicators are revealing a possible link between worrying about money and depression.

Over the past four years the number of prescriptions issued for Prozac has risen by 40.0%. GPs have said that more and more people are contacting them citing debt or job fears as the cause of problems ranging from anxiety to full blown depression.

One commentator said that GPs expected mental health problems to become more common in times of economic difficulty.

One problem is that medicating a patient may help deal with the symptoms of depression but it does not tackle the root of the problem. If people are suffering from depression due to their financial circumstances then they need help with that too.

The government needs a two pronged approach to these kinds of issues: The NHS can treat the patient and the social services should advise people on financial issues.

All First Choice Holidays To Become All “Inclusive”

2011-04-08T11:30:00.000+01:00

As of summer 2012, all First Choice holidays will be “all inclusive”. In a bid to save customers money, they will now pay a flat rate that covers transport, accommodation, food and drink. This style of travelling harks of past decades, until recently the trend for organising your own holiday and finding deals on the internet was popular.

A package holiday is a good option for anyone who does not want costs to build up. In the current economic climate it would not be a surprise to see a resurgence in the popularity of package holidays.

There are critics of package holidays who have been branded “travel snobs”: Some people argue that a package holidays removes any of the spontaneity of travel and only provides revenue for the holiday company, not the local economy.

There may be vocal critics of package holidays but that did not stop 17.9 million people booking one last year.

£7 Billion Of Mortgage Debt Paid Off In Fourth Quarter of 2010

2011-04-05T17:46:00.000+01:00

According to the Bank of England’s (BoE) records homeowners have paid off their mortgages at a record rate. £7 billion of debt was paid off in the final quarter of 2010.

The performance in the fourth quarter of 2010 built on an already solid performance earlier in the year. 2010 saw the largest input of equity ever recorded.

Due to interest rates being maintained at a record low, homeowners have been more inclined to pay back larger slices of their mortgage than they are required to each month. Low interest rates have been married to low savings rates therefore giving an extra incentive to reduce mortgages rather than save money.

One knock on effect of high spending on mortgage repayment is lower spending on other goods: Consumer spending is at a low as people are more inclined to pay off debts rather than spend on material goods.

House Prices Rose by 0.5% In March

2011-04-04T17:32:00.000+01:00

A survey by Nationwide building society found that house prices rose by 0.5% in March. In reality this news should not be too awful for first-time buyers: House prices have only increased by 0.1% on last year.

Although prices have gone up a little, this should not be taken to be the new trend in the housing market. Nationwide’s chief economist, Robert Gardener made it clear that the outlook for the housing market remains uncertain.

One key problem for the housing market is that first time buyers are not being approved for mortgages; therefore many people can neither buy nor sell their property. There is very little movement in the property market.

A recent report by the Bank of England has found that the number of households defaulting on mortgages rose in the first quartile of 2011. If people default they risk losing their house which may add some dynamism to the market.

Large Insurance Firm Moves To Enforce Wearing A Helmet On The Slopes

2011-03-28T17:13:00.000+01:00

Essential Travel, an arm of the travel company Thomas Cook has made steps to make it the first insurer to insist on skiers wearing helmets if they want to be covered against head injuries.

A spokesman for the company said that the company was aiming for a “no helmet, no head injury cover”.
The move has provoked controversy as many skiers insist that wearing a helmet is over-cautious, the reserve of slalom skiers.

In Italy it is against the law for children to ski without a helmet.

Critics of Essential Travel’s proposal have pointed out that a skiers helmet would need to be seven inches thick and twenty inches wide in order to prevent injury in a head on collision at 30pmph. It would seem that insurers are not looking out for skiers’ best interests but are exploiting regulations to defend themselves against claims.

The Queue For The iPad 2 Begins Thirty Three Hours Before Its Release

2011-03-24T16:22:00.000Z

The first iPad 2 will go on sale at 5PM tomorrow but one man has already begun his vigil outside the Regent Street Apple Store so that he will be the first iPad 2 owner in the country. Jewels Lewis began queuing at 7.30AM.

The iPad 2 is in fact cheaper to purchase than the original iPad. The iPad 2 starts as £399 for the basic model. As these expensive gadgets become more common, more and more people are considering purchasing gadget insurance.

The average commuter on the train in London may be carrying a phone, tablet computer and maybe even a laptop too. All this gadgetry is fantastic but is also susceptible to knocks and bumps as well as malfunction. We have all seen someone spill their coffee down someone else on the tube.

In preparation for life’s accidents it is sensible to purchase a gadget insurance policy.

Barclaycard Offer Credit Card With 20 Months 0% Deal

2011-03-18T16:39:00.000Z

Barclaycard had made an offer on their new credit card that outstrips their competitors: The zero interest period on its balance transfer have been extended from 18 months to 20 months. Rival companies had been racing to catch up with Barclaycard’s previous offers, but when they release a similar deal, Barclaycard ups the stakes.

This competition between credit card companies is welcome as it benefits the consumer. However these credit cards are not handed over on request, you must have a good credit rating in order to be granted a card.

If this trend continues the conditions attached to credit cards may become even more favourable to the consumer. One commentator said that credit card companies may begin to offer two year interest free periods in the not so far future. Offers may not stop there as companies compete for business.

Number Of Jobless People In The UK Reaches A Seventeen Year High

2011-03-18T15:56:00.000Z

Unemployment has reached a seventeen year high according to a recent study. More than 2.5 million people are without jobs at present. Youth unemployment levels have also reached a record high. The number of 16-24 year olds who are out of work rose from 30,000 to 974,000 over the past five months.

Between November 2010 and January 2011, 27,000 more people registered as unemployed: The last time unemployment levels were this high was in 1994.

There are now real worries that more and more families will fall into debt as there simply are not enough jobs being generated to support the population.

The Employment Minister Chris Grayling made the following statement: “There’s been a welcome drop in the number of people on benefits and an increase in full time private sector jobs but the rise in overall unemployment is a real concern”.

It Is Getting Harder And Harder To Get A Mortgage

2011-03-11T16:57:00.000Z

The number of mortgages that are being granted to house buyers has tumbled by 29.0%, according to a recent survey. Figures produced by the Council of Mortgage Lenders have shown that the slip of 29.0% occurred between December 2010 and January 2011.

This is a gloomy time for the housing market as prices appear to be dropping. The tougher the conditions attached to the grant of a mortgage only knock the market further.

The Council of Mortgage Lenders release the following statement: "With the effects of last year's government spending cuts beginning to bite, and rising inflation and tax measures putting pressure on household budgets, potential house-buyers are likely to have been discouraged".

Some commentators have said that the feelings of uncertainty that surround the UK economy create an atmosphere that flattens both the housing and mortgage markets alike.

Rug Pulled From Under House Prices This Month

2011-03-04T17:23:00.000Z

House prices have fallen at the fastest rate since 2009. In this month alone prices have dropped by 0.9%. It appears that demand for properties has fallen as fewer and fewer people wish to move, therefore prices have started to head south.

A further problem is that many people cannot obtain mortgages. Banks are reluctant to lend to families with children under the current economic conditions.

Perhaps falling prices will provide an opportunity for young earners to get their foot on the property ladder.

One market commentator has drawn attention to the volatility of the markets saying that observers should not watch sudden changes in the market but should consider the overall market trend. 'We expect this trend to continue for some time to come. It is best to try and draw an overall impression on all the data available relating to both house prices and activity”.

UK Consumers Should Brace Themselves For Price Rises

2011-03-04T17:13:00.000Z

UK consumers have been warned that they will receive a double hit this year from rising oil and food prices. Vince Cable made a statement that said that these price rises had the potential to put the UK’s economic recovery at risk.

Price rises will also put pressure on families who are already struggling perhaps even pushing them into debt.

There is some good news; the UK fuel duty which was due to be levied by a penny next month will probably be scrapped. The fuel duty has been voted as the government’s most unpopular tax in one recent survey.

Global food shortages have been created by adverse weather conditions especially in the Canadian Corn Belt. The demand for food is growing rapidly yet there is simply not enough to go around therefore prices continue to rise. Corn prices have risen by 70.0% this year alone.

Will Your Insurer Cover The Damage Done By Household Pets?

2011-02-25T16:31:00.000Z

According to a recent survey, pets have caused around £690 of damage to average UK household over the past year. It is unlikely that many of these people would be able to claim for damages on their insurance as very few insurers cover damage caused by pets.

Out of insurers surveyed twenty nine (incuding some of the market leaders) did not cover pet damage. The explanation for the lack of insurance for pet damage is that the behaviour of pets depends on whether they are trained or not and if they are trained, to what extent, and are thus impossible to underwrite.

Obviously some pets are more likely to cause damage than others: Dogs and cats are not only the most commonly owned pets, they are also prime candidates for causing domestic damage whereas birds and fish and smaller animals do little damage.

When purchasing insurance check the terms and conditions of your policy to see if it covers pet related damage.

London Stock Exchange Shuts Down For Four Hours Due To Computer Glitch

2011-02-25T15:54:00.000Z

Trading on the London stock Exchange was suspended this morning after a new computer system broke down. The London Stock exchange blamed market data technology for the problems and said that an investigation would be launched to look into the matter.

Traders will not be best pleased by the stoppages, the current volatility of the markets requires traders to be on their toes, not hanging around twiddling their thumbs.

It would be difficult for the timing of these problems to be any worse; the London Stock Exchange has been negotiating a merger with the TMX (the Canadian stock exchange). No doubt the Canadians were not impressed.

This is not the first mishap the London Stock Exchange has had to face recently, trading was suspended in November for three hours and there are rumours that prices were incorrectly displayed on their system last week.

The Co-operative Becomes The Pioneer Of ‘Ethical’ Insurance

2011-02-18T16:54:00.000Z

The Co-operative has implemented a policy of vetting their investments to make sure that they meet the criteria of their ethical code. The Co-operative Insurance now screens the assets that underpin their business.

The Co-operative will not invest in any businesses that are felt to be unethical; Arms manufacturers, tobacco manufacturers, fossil fuel companies and furriers are not approved by the current regulations. This policy not only governs future investments, it is also retroactive. Eighty million pounds of assets that were considered unethical by the Co-operative have been sold off, and the money has been reinvested.

This ‘operating plan’ is the first of its kind implemented by an insurance company although other organizations with large investment portfolios have drafted similar investment codes. Oxford University has pledged to remove some of its assets from arms manufacturers, although these kinds of investment achieve the greatest returns.

Current Levels of Inflation Result In Savers Losing Money

2011-02-17T16:53:00.000Z

Official data can be misleading. It is true that the Consumer Price Index has risen to 4.0% this January, and this does not sound disastrous. Take for example, someone paying the basic tax rate with £10,000 deposited in an instant access savings account paying 0.67% interest. He or she earns £53.60 a year: So far so good. However, the saver in fact loses around £400 a year due to inflation.

It is possible to find higher rates of interest than 0.67% but these rates are not increasing at nearly the same rate as inflation. Savers may be relieved by the fact that growing inflation will force the Bank of England to raise interest rates but question is always, when?

Current economic trends hit the elderly hardest. Most pensioners live off a combination of fixed incomes supplemented by savings which are undermined by high inflation and low interest rates.

Which? Appeals To The Office Of Fair Trading Over Extortionate Card Charges

2011-02-11T16:38:00.000Z

Which? has accused many well known companies from hoteliers to cinemas of charging inflated processing fees on transactions carried out by debit and credit card. Banks charge around ten pence to businesses for facilitating a debit card transaction; however the low budget airline Ryanair charges a five pound each way surcharge on a ticket purchased by debit card. These rip-off charges have been banned in other European countries such as France and Germany while customers in the UK are still being robbed blind.

Previously, the banks have been blamed for these fees but Which? insists that they are not to blame. The fact is the charges do not reflect the real cost incurred by businesses. Which? has submitted an appeal to the Office of Fair Trading, now they must wait for a decision from the OFT to decide whether regulations or even the law need to be changed.

Parents Hit By ‘Child Penalty’ When Applying For Mortgages

2011-02-10T16:45:00.000Z

Mortgage lenders are giving less generous lending terms to parents with young children than to childless couples. Childless couples can borrow up to 50% more than families with children, even if both families take home the same wages. Mortgage companies argue that the cost of raising children can result in parents not paying off their debts whereas childless couples have fewer outgoings and therefore are more likely to pay back their mortgage.

This kind of client analysis carried out by mortgage companies is a far cry from the practice of fifteen years ago when mortgage companies simply lent a couple a multiple of their combined income – usually three times their salary. These ‘affordability checks’ are all part of mortgage companies’ policy, devised to ensure that mortgages are paid back. A further symptom of this intense client scrutiny is that fewer mortgages are handed out: In the UK around 1500 mortgages are agreed per day as opposed to 4000 fifteen years ago.

House Prices Rise By 0.8% From December

2011-02-04T16:59:00.000Z

The Halifax House Price Index released this week found that the price of the average home in Britain rose to £164,173 last month. Although this is positive news, Halifax have warned that the 2011 house market is likely to be characterized by consumer caution as the double edged sword of government spending cuts and increasing tax rates will undoubtedly wound consumer confidence.

The prospects of the housing market are inevitably going to reflect the state of the economy at large. The difficult Christmas period is now behind us and there may be a little sunshine just around the corner. Martin Ellis, a Halifax housing economist made a statement that advised that ‘the recent downward trend in prices is causing homeowners to be more reluctant to put their properties on the market. This development should help to relieve downward pressures on prices as long as it is sustained’.

Tough Times Ahead As Food Prices Are Predicted To Soar

2011-02-03T17:15:00.002Z

The UN Food and Agriculture Organisation has made a statement predicting that food prices will rise to an all time high as supplies of key crops become stretched. In the UK the average shopping bill has increased by 6.1% but this is just a taste of what is to come. One of the underlying problems is the increasing price of corn which is used in animal feed: As the price of feeding livestock goes up so does the cost of meat.

So far British pig farmers have had to bear the brunt of price increases but they are now demanding higher payments from the supermarkets. The National Pig Association warned: ‘Currently there is a shortage of British pork, bacon and sausages. Farmers cannot afford to keep producing it.

It would seem that supermarket prices are unsustainable and they simply have to rise.

Fears Of Double-Dip Recession as UK’s Economy Declines

2011-01-25T16:08:00.000Z

Data released today has revealed a shocking 0.5 percent decline in UK’s economic growth in the last quarter of 2010, sparking fears of a double-dip recession.

Following four straight quarters of economic growth, today’s figures have come as a huge surprise to economists who had forecast a growth rate of up to 0.6 percent.

The government has highlighted the severe weather during October and December as the reason for the contraction, citing extensive weather related losses in the retail, transport and construction industries.

However, experts have stated that whilst the weather can be considered a factor, the coalition’s spending cuts may also have proved too much for the UK’s increasingly fragile economy.

The UK has seen a 0.5 percent drop in the key services sector as a result of spending cuts, which contributes to more than 75 percent for the economy.

Howard Archer, European and UK economist for IHS Global Insight branded the data as, “a performance far worse than even the most pessimistic of forecasts.”

“This weakness cannot be put down only to the weather,” he claimed, “It reinforces already serious concern over the economy's ability to grow significantly in the face of the spending cuts and tax hikes that will increasingly bite as 2011 progresses.'

The poor growth rate will now prevent an imminent rate rise, according to analysts, despite the need to offset rising levels of inflation.

Fears of ‘Jobless Generation’ As Youth Unemployment Reaches Record High

2011-01-20T09:57:00.000Z

The latest employment figures released on Wednesday reveal that the number of young people suffering from the UK’s dwindling job market has reached a record high.

The official figures reveal that almost a million young people between the ages of 16 and 24 are now unemployed, sparking fears of a ‘jobless generation’.

Since 1992 when records began, the youth unemployment rate has risen 20.3 percent, with a particularly sharp rise in the number of 16 and 17 year olds classified as out of work rather than in education or employment.

The slowing economy has been blamed for the lack in job opportunities as well as reluctance by employers to recruit younger workers. In addition, recent changes to retirement laws are enabling older people to work for longer, leaving fewer vacancies for the younger generation.

Graduates are also finding it increasingly difficult to find work and are being encouraged to undertake voluntary internships alongside their studies. However, the rising cost of student fees mean than most students cannot afford to work unpaid.

This is compelling evidence of the way in which the last Labour government completely failed a generation of young people,” says Employment minister Chris Grayling.

Ministers claim that the figures have been skewed by the numbers of youth in full-time education seeking part time work.

Interest Rate Hikes Could Cost Households £1800 Per Year

2011-01-18T09:29:00.000Z

UK Households could find themselves having to pay an extra 1800 per year interest on their debts if interest rates are hiked as predicted.
A study published on Monday by Pricewaterhouse Coopers forecast that the current central bank base rate of 0.5 percent will rise to 5 percent over the next four years, possibly starting as early as June this year.

The news is worrying for UK households who are already struggling from the recent VAT rise, wage cuts and rising costs of petrol, food, clothing and energy.

However, many City analysts believe that a rate rise is necessary in order to curb the escalating levels of inflation as retailers will be forced to lower prices if consumers have less to spend.

Philip Shaw, economist at Investec said that the Bank of England is under pressure to address the inflation issue with both the Consumer Price Index and Retail Price Index way over the government target of 2 percent.

'We were originally forecasting that interest rates wouldn't rise until the back end of 2011 but there is a real risk the Bank of England's monetary policy committee will have to raise rates sooner rather than later to protect its credibility,' Mr Shaw said.

Yet some members of the Coalition and other in the City believe that a sudden hike in interest rates could be extremely damaging to the UK’s economic recovery and put the country as risk of a double-dip recession.

They believe that inflation will automatically drop over the next two years without the Bank of England having to take action.

End To Enforced Retirement As Government Scraps DRA

2011-01-13T13:40:00.000Z

The end of the UK’s Default Retirement Age will be announced in the House of Commons today, preventing employers from forcing their employers to retire at the age of 65.

The phasing out of the DRA, which currently forces people to stop working at 65, will be revealed in a ministerial statement by Business Minister Ed Davey and will not require legislation.

From the 6 April this year, employers will no longer be able issue compulsory retirement and only those due to retire before 1 October will be forced do so under the DRA.

The new rules mean that by October there should be an additional one million employees aged 65 or over in the nation’s work force.

Whilst the Department of Business claims that the changes will benefit both individuals and the economy, employers fear a greater risk of legal issues such as unfair dismissal claims.

John Cridland, the deputy director general of The Confederation of British Industry told the BBC last month that the scrapping of the DRA could open up a ‘legislative void’.

"In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone," Mr Cridland said.

There are also fears that an ageing workforce will result in less job opportunities for the young.

The government will also be outlining a new Pensions Bill today which will see the state pension age raise to 66 by 2020 for both men and women.

Cameron under pressure to curb fuel prices as protest fears mount

2011-01-11T09:27:00.000Z

David Cameron came under increasing pressure over the weekend to curb the UK’s mounting fuel prices ahead of threats of protests around the country.

Following a double rise from last week’s VAT increase and hikes in fuel duty, the cost of petrol has soared to almost £1.30 per litre angering motorists across and sparking fears of protests at the pumps.

Petrol station bosses also fear that the increase of 3.5 pence per litre will result in more criminal behaviour as motorists fail to pay after filling up their tanks.

Shortly before the General Election last year, Mr Cameron promised to introduce a ‘fair fuel price stabiliser’ which would see fuel duty drop in response to a rise in oil prices. At this time petrol prices were at a record £1.20 a litre.

Over the weekend Mr Cameron spoke about his pledged stabiliser policy stating, ‘We’re looking at that. It’s not an easy thing to put in place, but I would like to try and find some way of sharing the risk of higher fuel prices with the consumer.’

However, he later seemed to back track on his promise when he told the BBC, ‘I don’t want to raise people’s hopes too far because it is a difficult issue.’

John Redwood, former Tory Cabinet minister has publically implored the Prime Minister to introduce the policy immediately and to cut the price of duty to help struggling households and businesses.

It is thought that the Treasury will commission an independent assessment of the stabiliser proposal before any decision is made.

Protect Yourselves!

2011-01-07T11:12:00.000Z

“Spear Phishing” is the new term being used to describe the poaching of information from us, with sophisticated criminals targeting your computer, hacking into your personal information by using new kinds of corrupt software.

It is described by analysts as an “ingenious” and “malicious” method of identity theftand it effectively allows criminals to take complete control of your computer. One of the method’s use is a kind of email development that attacks your inbox to provide the intruder with vital pieces of your personal information.

Government employees and contractors have fallen victim to the ruse which only kicked in over the past holidays season, reeking havoc as naive innocents were conned into downloading the self-strengthening programme.

Let this be a lesson to us all. With identity theft becoming more and more sophisticated, we really must do all we can to protect ourselves. Obtaining identity theft protection is a way to create a virtual alarm bell for any unusual activity.

VAT Rate Rise

2011-01-05T15:26:00.000Z

The VAT rate has risen from 17.5% to 20%. The increase has been catalysed by the government who are aiming to cut its deficit by boosting tax revenues.

At the beginning of the summer, George Osborne (chancellor) commented that the hike should, if all goes to plan, raise £13 billion a year by the end of parliament-an amount which would help patch up the deficit.

Those things that are excluded from the rate hike are food, children’s clothing, newspapers and magazines.

Criticisms of the move are aimed at Osborne and the government and they focus on the fact that shops and retail will be severely affected by the changes. Along with this, they comment that those families with the least money are likely to be hit the hardest.

Among those who criticise the plans are labour leader Ed Miliband who believes that now is not the right time to introduce rate hikes-seeing as there are many other government spending cuts which families are trying to cope with. He described the decision as “wrong tax at the wrong time.”

It’s a dog’s life

2010-12-22T17:08:00.002Z

“A dog is for life not just for Christmas” the saying goes and there is a lot of truth in that statement. When you acquire a pet it becomes a part of the family very quickly, and the cost of any medical treatment can become very expensive. This is why it is worth taking out pet insurance. The level to which you want to insure your pet is up to you but coverage which provides medical care can save you a lot of money. Most companies will give you an option of accidental or comprehensive cover.

Accidental will provide cover for your pet in the event of accidental injury, including costly items like consultations with your vet, specialist care, hospital stays and prescription medicines.

Fully comprehensive will be packed with reassuring features. It should cover 100% of your veterinary bills in the event of an accidental injury, it also covers you if your pet should suffer an illness.

Credit Card companies challenged by Competition Watchdog

2010-12-21T14:14:00.000Z

Major credit card companies have been challenged by Canada’s competition watchdog over the rules they force upon retailers.

Canada’s Competition Bureau last week filed for a Competition Tribunal against Visa and MasterCard claiming that the credit card providers’ mutual ‘no-surcharge’ rule, among other policies, is eliminating competition between them.

Under Visa and MasterCard’s current policy, retailers are charged between 1.5 and 3 percent per credit card transaction but are prevented by the ‘no-surcharge’ rule from adding on a surcharge to offset the extra cost.

As a result, many retails are offsetting this cost by adding it to the price of products, clearly disadvantaging the consumer.

Competition Commissioner Melanie Aitken claims that, “Visa and MasterCard's anti-competitive behaviour hurts businesses and consumers alike.”

“Without changes to the rules, merchants will continue to face high costs for credit card acceptance, while consumers, even those who use lower-cost methods of payment like debit or cash, will continue to pay higher prices.”

The Competition Bureau also plans to take action against credit card policies which prevent retailers from encouraging customers to use more cost-effective methods of payment such as cash and debit.

However, MasterCard fears that credit cold holders may end up being penalised by facing higher charges.

It is estimated by the Bureau that Canadian retailers pay around $5 billion per year in hidden credit card costs, one of the highest levels world wide.

Canadians Debt-To-Income Ratio Higher Than Americans

2010-12-14T09:39:00.001Z

The debt to income ratio of Canadians is now higher than Americans for the first time in over ten years according to information released on Monday.

The ratio of household debt to disposable income has climbed to a high of 148.1 percent, Statistics Canada announced on Monday, a 6.7 per cent rise on last year’s figures.

The Canadian ratio is now higher than that of the United States which is currently at 147.2 percent.
Bank of Canada Governor Mark Carney spoke in Toronto earlier this week about the rising debt amongst Canadians and the danger of borrowers being lured by historically low interest rates.

Mr Carney warned that whilst current low interest rates make borrowing seem relatively cheap, the costs will climb again and people may find themselves in financial difficulty, especially as the debt load of many Canadians is rising faster than their incomes.

Policy makers must now decide how best to safeguard Canada’s economy - reduce spending and risk limiting the country’s recovery or risk the population sinking further into debt.

Mr Carney said, “The responsibility obviously starts with the individual, it extends to the financial institutions, and then we as policy makers need to ensure that a suite of policies are appropriate to ensure sustainable growth.”

Canada’s income level has also fallen 1.5 percent during the last three months.

Banking Reforms Met With Mixed Reviews

2010-12-13T14:21:00.001Z

Banking reforms proposed by the Australian government over the weekend have been met with mixed reviews.

The reforms, which include banning mortgage exit fees from July 1st 2011 and providing small lenders with new funding avenues, were announced by Federal Treasurer Wayne Swan on Sunday.

Mr Swan has pledged to increase competition in the banking sector to help reduce interest rates and ease the burden for businesses and mortgage holders. In addition, he has empowered the Australian Competition and Consumer Commission to act on price signalling.

He stated that the package would "build up competition in our banking system, which will ensure that interest rates are lower over time".

Consumer group Choice welcomed several aspects of the reforms including the transferability of lenders’ mortgage insurers, mandatory fact sheets for home loan customers and the ban on exit fees. They also approved of the review of ATM fees and the credit card reform legislation.

However, economists fear that the proposed ban on mortgage exit fees could be potentially damaging for smaller lenders.

Shane Oliver, head of investment strategy at AMP Capital Investors warned that if banks are no longer able to charge high exit fees, they will be equally unable to offer low mortgage rates:

'If exit fees are banned for mortgages, it could actually force up mortgage rates for some of these non-bank providers'

The Green party also argued that whilst long overdue, the cuts in ATM fees were only part of the solution to a larger scale banking fee problem which costs many Australian households up to $1000 a year.

Aussie Gains On High Employment Statistics

2010-12-09T15:29:00.002Z

The Australian dollar made gains yesterday following the release of statistics which show the largest rise in employment since January.

The Australian Bureau of Statistics reported on Thursday that the country’s employment reached 54,600 in November, exceeding the expected increase of 20,000 and reducing the national unemployment rate by a further 0.2 percent.

Following the release of the data at 1130 AEDT, the Australian dollar increased half a US cent trading at 98.40 US cents, up from Wednesday’s close of 97.89 cents.

Adam Carr, senior economist for ICAP said that the positive influence of the employment figures on the economy was clear and may prompt the Reserve Bank of Australia (RBA) to raise the cash rate in next year’s first quarter.

"The RBA gave a fairly neutral signal to us when they met (on Tuesday) and this data today shows why the RBA's pause isn't going to be that long," Mr Carr said.

"The chances of them being on hold until June next year is, I think, effectively zero."

It is estimated that more than 50,000 people joined the workforce in October, creating the second largest employment rise in Australia since 2006.

Analysts hope that these latest statistics signal the continuing rejuvenation of the Australian economy.

Sterling Strengthens On Back Of Manufacturing And Retail Highs.

2010-12-08T12:46:00.001Z

The Great British pound strengthened against its rival currencies on Tuesday as it was announced that the UK’s manufacturing output had reached a seven month high.

Buoyed by news of higher than expected manufacturing figures and retail sales, the pound sterling climbed 0.95 percent against the euro and reached a two week high of £1.5821 against the US dollar.

UK retail sales grew a healthy 0.7 percent last month, maintaining October’s increase of 0.8 percent. The output of UK manufacturing also climbed, reaching 0.6 percent for October and exceeding the expected increase of 0.4 percent.

The manufacturing output rate is the highest recorded since March this year, prompting optimism for the UK’s economic recovery.

Briain Hilliard of Société Générale said that he expects further gains in November:

"Stronger utility numbers with the colder weather should also give a pick-up in industrial production. It shows the economic recovery is continuing, although of course we need to look at the services side too. The biggest influence on the Bank of England will be the inflation profile and we know that is problematic."

It is thought that the figures are unlikely to prompt the Bank of England to make any changes in interest rates over the coming months.

Meanwhile all eyes are on the performance of the Euro as Ireland’s toughest austerity budget is passed its first parliamentary vote.

Canada Unemployment Reaches Two Year High

2010-12-07T14:16:00.002Z

Canada’s unemployment has reached its highest rate in almost two years, according to the Labour Force Survey released by government agency Statistics Canada on Friday.

Unemployment rose to 7.6 percent in November, a significant increase from October’s rate of 6.2%. This translates to 1,426,900 million unemployed Canadians, far more than were initially made jobless when the recession hit in 2008.

A huge decline in the number of manufacturing related jobs is thought to one of the major causes of the unemployment rise. Whilst 1 in 5 Canadians had manufacturing related employment three decades ago, that number is now 1 in 10 – the lowest rate since data began in 1976.

The Statistics Canada survey also revealed a decline in the quality of jobs available over the last year with an increase in temporary, part time and poorly paid work.

Ken Georgetti, President of the Canadian Labour Congress said, “We have a problem with both the number of jobs being created and their quality. We have to focus on creating full-time, family-supporting jobs”
He stated that Canadian workers are still being affected by the deep recession of 2008 and that employments rates would be even higher if it were not for the determination of the Canadian people to find work.

The survey’s figures also highlighted an East-West divide in the country.

The employment rate in Ontario and eastern provinces is teetering above the national average whilst in Manitoba and western provinces joblessness is well below average.

Australia's Economy Growth Lower Than Expected

2010-12-01T13:28:00.000Z

Australia’s economy grew by just 0.2 percent in the September quarter, the Australian Bureau of Statistics announced yesterday.

The country’s gross domestic product (GDP) was measured at 2.7 percent, much lower than the 3.4 percent rise expected by market consensus. The result was also down compared to the 1.1 percent rise of the June quarter.
The Australian dollar immediately fell from 96.08 US cents to 95.65 following the release of the figures at 11.30am (AEDT) on Wednesday, although later regained ground.

The share market also closed flat with a mere 0.05 percent increase in the benchmark SP/ASX200 index and a 0.01 percent increase in the broader All Ordinaries index.
Despite a muted response from the markets, Treasurer Wayne Swan insisted that the GDP figures showed proof of a resilient economy.
'Today's GDP figures are another solid result for our economy in the context of a world economy which is fragile,' he told Canberra reporters.
'There are bumps in the road for our economy but Australia's fundamentals and growth prospects remain strong.' He added, 'we are determined to continue our plans to build a stronger, broader, more competitive economy.’

The Treasurer pointed to several positives in the September quarter including a 0.6 percent increase in household consumption and the creation of 105,000 full time jobs.

The Eurozone still remains unstable

2010-11-30T16:42:00.000Z

Nouriel Roubini, chairman of Roubini Global Economics more commonly known as ‘Dr. Doom’ does not believe that the €85 Billion Bailout of Ireland is enough to stabilise the Eurozone.

While many agree that such a small sum is not nearly enough to restore confidence in Europe, Mr Roubini goes further and suggests that Spain’s current position is extremely unstable and the amount which the Spanish government is projecting as a figure to cut debt is far too small and next year it is likely that the Spanish will be asking for a bailout.

While it is not all gloom in Europe with Italy, Germany and the UK performing better than expected the danger of the debts of Spain and Portugal are very much apparent in the minds of investors.

The value of the Euro continues to decline against both sterling and the dollar. Meanwhile the Dollar goes from strength to strength. It’s position as a safe haven currency has been beneficial while uncertainty over the Korean peninsula continues.

Australian share market reverses slow start

2010-11-29T12:34:00.001Z

The Australian share market finished higher at close of trade on Monday, reversing a slow start to the week.
The market recouped its early losses with help from strong performances by energy, banking and healthcare stocks.

Markets experienced a sluggish start on Monday as a result of limited trade from Wall Street at the end of the last week owing to the US Thanksgiving holiday. EU debt concerns had also contributed to subdued trade.

The benchmark S&P/ASX 200 index gained 0.44 per cent to finish at 4618.5 points, while the broader All Ordinaries index increased 0.35 per cent to 4706.7 points.

Some of the best healthcare performers included Cochlear which gained 79 per cent to $80.95 and Sonic Healthcare which increased 1.28 per cent $11.88.

Energy stocks also buoyed the market with Woodside adding 76 cents to $41.71 and Santos up 6 cents to $12.37.

In currency, the Australian dollar dropped to US96.55 cents as Korean political unrest and EU debt concerns continued to impact the market. Flat data relating to Australia’s third quarter economic performance may also have had a negative impact.

Pay Day Loans As A ShortTerm Money Solution

2010-11-26T12:26:00.000Z

It is to unlikely that at some point in our life we will find ourselves in a tricky financial situation that requires a certain amount of leverage in order to find our way out. Sometimes, all it takes is a little extra cash flow to pay off an outstanding bill, make our money stretch to the next payday or perhaps to pay for an emergency repair (dishwashers, cars, dog’s leg...etc)

A payday loan is an intended short-term loan (usually to be paid back within 30 days) and is often considered to be an ‘emergency loan’ and used as a last resort in the sense that it should not be relied upon as a monthly get-out clause.

This kind of loan ranges from anywhere between $100-$1500. The amount borrowed is generally smaller than other lending companies. A payday loan will have noticeably higher interest rates because of the ‘short-term’ nature and this is normally set at about $25-$30 for every $100 borrowed. Therefore if you borrowed $500, you would end up having to pay back $750 within the 30 day period.

Because there are rarely credit checks for people acquiring payday loans, many people who use them are not financially stable. This can be a slippery slope especially when you consider the high interest rates. However, if used properly it can be a great short term fix.

Should there be loans granted with no credit checks? The majority of people are divided in opinion but it is no doubt that payday loans have helped a number of people out of varied financial black holes.

New Year brings misery for commuters with 6.2% train fare increase

2010-11-24T11:44:00.001Z

The price of rail fares will increase by an average of 6.2% in January, putting yet more financial pressure on the UK population.

The Association of Train Operating Companies (Atoc) announced the above-inflation increase today, claiming that changes in government policy have demanded that passengers pay more towards railway investment.

Although Atoc failed to report the specific price rise for each train company, it is thought that season ticket holders will be most severely affected with on average, 10.8% increases. Some commuters, such as those travelling from Ramsgate to London with Southeastern will see their annual season ticket price rocket from £3,880 to £4,376 an increase of 12.8%.

Chief executive of Atoc Michael Roberts said: "We know times are tough for many people but next year's fare increases will ensure that Britain can continue investing in its railways.

"Even with these fare increases, the money passengers spend on fares covers only half the cost of running the railways - taxpayers make up the difference.

"The government is sticking with the previous administration's policy to cut the taxpayers' contribution to the overall cost of running the railways.

Meanwhile, the leader of the TSSA rail union Gerry Doherty stated: "It is simply outrageous hard pressed commuters are being forced to pay fare hikes of up to 10% when they are themselves facing pay freezes and job cuts.”

The news comes on top of last week’s increases in energy costs and yet further economic concern over the eurozone crisis.

Long Way To Go For Albertans

2010-11-23T12:19:00.000Z

Alberta, a province in the West of Canada is in trouble post-recession.

New figures released by finance minister Ted Morton show that Alberta is heading towards the prospect of a $5 billion deficit.

This prediction exceeds the estimated deficit total that was made in the spring budget by a quarter million dollars.

The increased deficit total of $257million is linked to a number of factors including lower employment levels and a decreased number of visitors, all of which were catapulted into a downtrend by the recession. The province has also struggled to replace a once-huge revenue take decimated by the drop in the price of abundant natural gas

As well as the above contributors, Alberta saw financial losses due to an influx of emergency funding that totalled $534 million as money was used to fund a multitude of natural disasters such as flooding, mountain pine beetles and wild fires. The province also took a hit of $1.1 billion on the personal income tax ledger.

It is estimated that Alberta used funds of up to $38 million to renovate a Edmonton nursing home. Villa Caritas is used to house senior psychiatric patients who are moved out of Alberta Hospital.

Despite Morton describing such a downtrend as “the new normal” the Finance Minister assures the public that the next two years will see the return to a balanced budget as well as clarifying the unlikelihood of cuts.

“Our forecasts are always about in the middle of the private sector forecast...it means little or no expansion but it doesn’t translate into cuts.”

Concern in Europe as Ireland resists EU ‘bail-out’

2010-11-16T10:43:00.000Z

Speculation over the economic stability of Europe was fuelled today by the reported refusal of Ireland to accept financial assistance from the European Union.

With their economy in increasingly desperate shape, it was thought that Ireland would seek help from the European Financial Stability Fund which was set up earlier this year to support Greece through similar financial crisis.

It was rumored that Ireland would look to secure funds of up to 80 billion euros from the fund, however the Republic deny that any discussions are taking place.

The plummeting of house values and mounting development-related debts accumulating in the country’s largest banks have left Ireland with a total deficit of 32% of its gross domestic product.

The Irish government is proposing tax rises and spending cuts in its December budget with the aim of generating 6 billion euros by next year. However, it is feared that such cuts will only serve to deepen Ireland’s recession and end up costing the government in benefit payments and falling tax revenues.

It is thought that Ireland’s reluctance to accept the EU ‘bail out’ is due to fears of relinquishing economic control and jeopardising their sovereignty.

This decision is proving unpopular in the rest of Europe which is keen to avoid financial problems in one country escalating into economic crisis on a wider scale. It is also having a knock on effect on the performance of the euro which is plummeting against the increasingly strong US dollar.

All Eyes On China As Pressure On the Superpower Mounts

2010-11-10T15:23:00.000Z

Pressure on China is at an all time high with top economists and countries warning the superpower that unless it changes its dangerous trading strategy, economies world-wide will be severely harmed as the imbalance between countries continues to grow.

The Prime Minister, David Cameron, commented on the air of danger that China has created saying that the trade surplus, which overtook economist’s predictions, had created a ‘dangerous tidal wave of money’ which is now flooding the global economic landscape.

The trade surplus for October was recorded at $US27.15 billion. This is despite the fact that the previous month’s trade surplus was nowhere near as grand; in fact, it declined to just $US16.9 billion

The Prime Minister was not just concerned with China freeing up its own economy, but he was also commenting on China’s rigid political system which leave civilians with little political freedom.
In a public speech at Peking University, he argued that the two liberties are inextricably linked with one naturally implying the other. The Prime Minister, who is on a state visit to Bejing added pressure on China over its Yuan currency as well as challenging the communist regime and asking from China, “a greater political opening.”

Brian Jackson an economist from Royal Bank of Canada, commented:

“Chinese exports and imports are both continuing to record impressive growth, defying concerns about weaker demand both home and abroad. But the disparity in global trade balances is the key point that will likely attract attention as senior officials fly in to Seoul for the G20 meeting.”

However, Cameron tried his upmost to abstain from making moral judgements over China as he commented that Britain was nor perfect either, in an attempt to smooth over any offence taken by the hosts of the speech in Bejing.

HSBC Stands Up To Banking Levy

2010-11-08T13:06:00.001Z

On Friday 5th November, HSBC renewed the prospect that it might quite London following George Osborne’s banking levy; this was coupled with the outlines to halt inflated bonuses for bankers.

The bank commented that such changes would mean that HSBC could not sufficiently compete with other banks because they were no longer on a “level field” with their competitors.

The banking levy by Osborne would mean that HSBC-as well as all other banks would have their annual income capped to £2.5bn with no capacity to stretch beyond this limit. HSBC publicly spoke out about the changes during a series of conference calls with journalists and City analysts.

The chief executive of the bank, Mr Geoghegan complained that HSBC was being targeted simply because it was based in London. He commented that this situation was akin to “tax on emerging markets growth” which is where HSBC accumulates most of its income.

On the situation Mr Geoghegan commented, "Policymakers need to understand the consequences on the wider economy and growth." He continued, "Along with many other international banks, HSBC already complies with the Financial Stability Board's global principles on remuneration. If the EU takes those principles further and applies additional requirements to European firms operating in emerging markets, it would place those firms at a disadvantage to their regional competitors and to those based in North America."

Home Loans For Those With Bad Credit Histories

2010-11-01T15:32:00.001Z

As the recession begins to make its tentative steps towards some sort of recovery, prospective buyers who have been turned down elsewhere, begin to find they can apply for mortgages once again.

Whereas the pre-recession market housed such ‘sub-prime’ candidates and indeed this is what most thought caused the financial breakdown, post-recession it has been virtually impossible for those persons with a bad credit history to acquire a mortgage.

Now, almost three years on, a handful of lending companies have begun to repeat the sub-prime practise, with companies including Precise Mortgages, Kensington Mortgage Company and Aldemore lending to those customers with a flawed credit history.

So why are companies starting to lend to these kind of clients again? Such clients can be a massive earner for lenders due to ‘bad credit’ products holding much higher interest rates than standard financial products. Not only this, but the market for sub-prime products is enormous, with so many people unable to attain home-loans in recent months; banks understand that where there is demand, they should really be supplying.

Financial data shows that mortgage lending has declined by from £162 billion to a £112 million from August to September and this has encouraged the beliefs of economists who are predicting the likelihood of a double-dip recession.

Savers Left In The Dark

2010-10-29T14:25:00.001+01:00

Many of us feel that we are not getting the most out of our savings. Now, new research actually suggests we are being purposefully left in the dark.

In a new piece of research from Which?, it has been revealed that those people who are putting their money into savings in both banks and building societies are not getting out of the service what they ought to be.

It is reported by the company that savers are missing out on as much as £332 (an average marker) because they are not being properly informed by the banks and building societies in question, about the correct interest rates they should be earning.

What the survey research shows that it is only through consumer ignorance that the correct interest rates are not being paid and that this ignorance is directly equated to the banks withholding information to the consumer.

In what was an enormous downsizing operation, the amount of interest that was paid to savers was cut back by half in the 2008-2009 period, seeing a reduction from £39 billion to just £19.2 billion.

The research firm discovered that almost half of the 1,200 plus savings accounts available in the UK pay just 0.4 pc after tax interest with many paying less than this. In what seems almost a contradiction of terms, an average savings account in the UK would earn you just 80 pence for every £1,000 saved, leaving many asking what the point is in using such an account.

Many banks, it is reported, do not even make their interest rates public-instead they choose to withhold any fluctuations, crediting the saving consumer with an interest rate that they decide and that is in their hands to manoeuvre if they so wish.

It is thought that only a handful of banks (which include Yorkshire BS, Skipton BS, Barclays and HSBC) actually print their rates.

One Size Fits All-New Pension Scheme

2010-10-25T14:23:00.001+01:00

In what is set to be one of the biggest changes in the cut-back process, the government has decided to stop varying pensions and to install a ‘one size fits all’ alternative that will entirely disregard individual personal financial situations or circumstance.

The change is being made in order to simplify the pensions scheme which was been in action for the last 50 years. What will happen is that all pension payments will be reduced (or increased) to £140 a week so everyone in Britain is receiving the same amount.

The new plans are likely to be announced as the year draws to a close in a Green Paper. One of the benefits of the new scheme will be that people will no longer be ‘means tested’ which is thought to be quite a humiliating process.

Another benefit is that couples whose pension was divided between them in the present scheme (at a basic state rate of £156.15) will now be inflated as each of them receive £140 a week. This would mean that couples could have an annual state income of £14,560 in the new plans.

As well as benefits for couples, the system will benefit single pensioners who receive the basic state pension as they will see their weekly income rise from £132.60 to the new £140 level.

The dominant feature in the change is to account for a number of loop holes in the pension system which often affected women who could not qualify for a full state pension because they had taken time out to raise their children.

Ministers aim to introduce the new pension in Parliament by the end of 2015, wanting it to be firmly installed before the retirement age plans are put in action (which will see the pension age for women rise to 66).

US Bankers Still Receiving Big Payouts

2010-10-13T14:43:00.000+01:00

The myth that bankers are no longer receiving enormous payouts has well and truly been shattered thanks to new research founded by the Wall Street Journal.

The figures which reveal the banking giant JP Morgan salary pay-outs, reveal US bankers are getting record breaking compensation for the second year in a row. In what seems almost inconceivable, the research that studies three dozen banks, hedge funds and money-management firms, shows that these companies will pay out £90 billion in salary and benefits this year alone.

The data flies in the face of new measures that were set to put a cap on bonuses and salaries and it also reveals that top bankers have not suffered in the slightest despite the state of the US economy and its recovery. Far from being negatively affected by the US recovery, salaries have gone up by 4% since this time last year, third-quarter figures reveal.

Charles Elson, director of the Weinberg Centre for Corporate Governance told the Wall Street Journal,

“Until the focus of these institutions changes from revenue generation to long-term shareholder value, we will see these outrageous pay packages and compensation levels.”

The research also shows that Goldman and Sachs is expected to raise compensation pay to $16.8 billion which is a rise of 3.7% despite the fact that revenue is set to fall to $39.1 billion.

Alarm Bells For Homeowners

2010-10-07T10:50:00.001+01:00

In one of the quickest declines the UK housing market has ever seen, house prices in the UK have plummeted by 3.6% in a single month, leaving homeowners with their heads in their hands, unable to believe the loss in value of their houses. It is thought that contributing factors could be the number of houses on the market as well as a decline in prospective buyers due to the unstable economy.

Halifax have commented that the decline is set to continue. A spokesperson from the firm commented:"A shortage of properties for sale contributed to an imbalance between supply and demand and was a key factor driving up house prices last year. An increase in the number of properties available for sale in recent months has reduced the imbalance. At the same time, renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase."

Millions Of Pounds Missing Because Of Currency Firms

2010-10-06T11:47:00.000+01:00

Crown Currency Exchange has potentially let down as many as 13,000 customers. Yesterday, it was announced that the overseas firm had slipped into administration. The effect is that their customers will not receive the money they have pre-ordered, which, in total amounts to £20 million.

This situation came about despite there being serious worries about the companies’ health from over a year ago. Concerns were voiced by the Financial Services Authority but yet, for some reason the issues were overlooked and even the authorities failed to take action against the firm which is based in Cornwall.

Even though this situation has left thousands of people, hundreds of pounds short-in some cases, thousands-the government is unwilling to tighten the regulation of similar currency firms. This is exactly what insiders are saying caused the problem in the first place and understandably, customers are furious today that changes are not being made.

A Treasury spokeswoman comments on the situation:

“Crown Currency Exchange’s business model was exceptional-it involved taking forward exchange risks. It would not be appropriate to crack down on the vast majority of currency exchanges that do not take such risks.”

Tightening up such firms would involve taking appropriate precautions that would leave customers money safe, even in a worse case scenario, with a firm going bust. This could be as simple as enforcing an law that forces currency exchange firms to keep customer cash and business cash separate.

Budget Tips For Everyday Life

2010-09-30T16:34:00.001+01:00

1. Budgets may be a pain but they are essential for a healthy financial life.

They're the only practical way to get a grip on your spending - and to make sure your money is being used the way you want it to be used.

2. Creating a budget generally requires three steps.

- Identify how you're spending money now.

- Evaluate your current spending and set goals that take into account your long-term financial objectives.

- Track your spending to make sure it stays within those guidelines.

3. Use a chart on your computer to track your progress.

If you use a personal-finance program such as Quicken or Microsoft Money, the built-in budget-making tools can create your budget for you.

4. Don't drive yourself nuts.

One drawback of monitoring your spending by computer is that it encourages overzealous attention to detail. Once you determine which categories of spending can and should be cut (or expanded), concentrate on those categories and worry less about other aspects of your spending.

5. Watch out for cash leakage.

If withdrawals from the ATM machine evaporate from your pocket without apparent explanation, it's time to keep better records. In general, if you find yourself returning to the ATM more than once a week or so, you need to examine where that cash is going.

6. Spending beyond your limits is dangerous.

But if you do, you've got plenty of company. Government figures show that many households with total income of $50,000 or less are spending more than they bring in. This doesn't make you an automatic candidate for bankruptcy - but it's definitely a sign you need to make some serious spending cuts.

7. Beware of luxuries dressed up as necessities.

If your income doesn't cover your costs, then some of your spending is probably for luxuries - even if you've been considering them to be filling a real need.

8. Tithe yourself.

Aim to spend no more than 90% of your income. That way, you'll have the other 10% left to save for your big-picture items.

9. Don't count on windfalls.

When projecting the amount of money you can live on, don't include dollars that you can't be sure you'll receive, such as year-end bonuses, tax refunds or investment gains.

10. Beware of spending creep.

As your annual income climbs from raises, promotions and smart investing, don't start spending for luxuries until you're sure that you're staying ahead of inflation. It's better to use those income increases as an excuse to save more.

Fears Over Debt Management Companies

2010-09-28T14:10:00.000+01:00

Oh dear. It is not a very bright day for debt management companies. With the news pouring in of more and more companies who face losing their license, one cannot help but feel worried and vulnerable.

Following an enquiry from The Office of Fair Trading, it has been discovered that as many as 129 firms are guilty of some degree of malpractice. The wrongdoing ranges from giving out biased or influencing advice (when in fact it should be impartial and honest) to misleading advertising and even some firms posing as ‘free’ government organisations.

This news shows that going it alone on the internet in search of these firms can be very risky indeed, especially when we know that by the end of this year alone, over £250 million will be paid to debt management companies.

Price comparison websites offer you a safe environment to get advise and/or help if that is what you choose. The companies have already been reviewed by the website and so you can be sure that the companies they showcase are respectable.

To Pay Or Not To Pay

2010-09-27T14:35:00.000+01:00

For the 2010/2011 academic year, interest rates for student loans are now either 1.5% or 4.4%. The rate varies depending on when you took the loan out i.e when you first started university. If you started university between 1990 and 1997 then you will be subject to the 4.4% interest rate. After this the 1.5% applies, depending on whether the Bank of England’s base rate stays at 0.5%.

Interestingly statistics show that the number of outstanding loans for the latter, comes in at a whopping 3,300,000, with the old school 4.4% loan coming in with 355,000 outstanding loans.

We are now a whole generation of Britons with student loans as so many of us go down the higher education road. So what does it mean when people say that student loans have no real cost? This is said because there is no real interest cost because the most you will ever pay is the rate of inflation i.e the rate at which prices are rising. Therefore, a student loan is essentially very different from other commercial loans where you must pay back extra cash on top of inflation rates.

To question is then is it worth paying back your student loan? An article I read today argued that in actuality, you are much better off putting that monthly payment into a high interest savings account, or into another investment because over a ten year period, you would have earned back enough money to pay off your loan, and more. The article was saying that you should prioritise those things with higher interest rates such as credit card bills and bank loans as your student loan is not going to gather much interest at all. Low interest loans do not need to paid off quickly; even if they sit unpaid, they will not collect a huge amount of interest at all. You might be better off not paying it off in this case.

It is something to think about anyway before you go rushing into paying off that student loan...

Minimising The Cost Of Divorce

2010-09-20T13:08:00.002+01:00

With the cost of divorce so high these days, perhaps couples will think twice before heading to their nearest divorce lawyers. It might even encourage couples try and resolve their differences rather than to eternally agree to disagree...you never know.

According to experts, divorce costs are at an all time high and back at pre-global financial levels. The rising costs have much to do with key amendments to family, superannuation and tax laws in recent years, which means that there is a wider range of assets being split in marital property settlements. Even the superannuation savings of de facto couples can be divided.

Adding to this is the news that more couples are breaking up after longer marriages and thus the accumulated wealth that must be divided is proportionally higher. It is estimated that the number of couples getting divorced between the aged between 50-55 has quadrupled in the last ten years.
With statistics from the Australian Bureau of Statistics showing that 40 per cent of marriages are likely to end in divorce, couples should enter into marriage with an acute awareness of the facts. Australia saw as many as 47,000 divorces in 2008.

It would be wise to construct a pre-marital contract which states terms of a divorce if a couple were to split, rather than wait until its too late. A secured pre-marital deal might be essentially unromantic but nobody knows what will happen after marriage. It is wise to be prepared and realistic. A pre martial contract can ease some of the stress and financial difficulties of a divorce.

Consumer Confidence Dwindles- Fight Back!

2010-09-16T15:34:00.002+01:00

With today’s report from the Office of National Statistics revealing that retail sales have dropped in the month of August, we have to wonder whether we Britons have hidden our wallets away and resigned ourselves to evenings spent in watching X Factor and playing backgammon.

With more ominous data pouring in as a result of the terrible environmental and humanitarian floods disaster, major retailers have warned us that the price of cotton is set to sky rocket due to the cotton plantations being demolished in the flood waters.

However, I wonder whether the statistics truthfully reflect our shopping sentiment. I for one know that just because the price of cotton is on the up and despite the negative data released today, when I want to shop, I will. I think most people share this sentiment, and as Britons we are, as a nation, fairly resilient when it comes to financial crises.

Here on Which Way To Pay we showcase a number of different credit cards, which although they are not the answer to all financial problems, can be extremely useful when you need a bit more financial flexibility. Simply having a credit card helps you to build up a good credit rating so even if you are not intending to use a credit card, it is definitely worth applying for one.

Have a good day,

Which Way To Pay

Clothing Prices Set To Soar

2010-09-15T18:13:00.000+01:00

The price of cotton is set to soar. Believed to be linked with the large scale floods in both China and Pakistan, the price of raw cotton is up from ten cents a pound to an unbelievable rise of 83 cents a pound in the last month alone, along with the rise in VAT to 20 per cent.

This drastic increase will hit low budget high street chains such as Primark and H&M most forcefully seeing as these stores use cotton as their majority material. Consumers will have to rethink their perception of the store which is most notably known for selling £2 t-shirts and £4 jeans.

Primark Finance Director John Bason warns: “The pricing environment is a tough one for the consumer.” Customers will have to start thinking about the impact these environmental changes will have on them.

Consumer campaigners are angry at retailers for changing the prices, only when it benefits them. Campaigners have been urging retailers for years to increase their prices in order that long suffering foreign workers are paid more fairly.

Dominic Eagleton, from Action Aid comments: “For years, major retailers have been telling us they want to put prices up to help foreign workers-but don’t want to upset customers over here. This statement though, would suggest that when it suits companies they can raise prices after all if they want to.”

Claiming Online

2010-09-09T09:06:00.000+01:00

Using a claims service has never been easier - simply click on a particular firm's website, fill out an initial form regarding your claim and you will generally be contacted within a short space of time.

There are so many types of claims, and for each one there are countless specialist services - injury claims, PPI claims, work claims, credit card fee claims...

But is it safe to use an online claims service? Well, as long as they are regulated and registered, run by people that are either trained lawyers or solicitors or claims experts you should be in the right hands. If in doubt it is possible to visit a standard solicitor (such as a famiily solicitor).

PPI Claims Keep Going Strong

2010-08-26T14:28:00.002+01:00

Are you one of the millions of unemployed people in Britain? Have you bought cover on your insurance and thought that now you have lost your job, you are at least covered on your repayments?

Over 800 people a week are now complaining that their Personal Protection Insurance (PPI) was nothing but a scam, and that they were mis-sold their policy.

Insurers and lenders are claiming that there is no wrongdoing from their side, and that they have never mis-sold loan insurance.

But the cases are being looked into by the Financial Ombudsman Service (FOS) although many cases are being upheld, which means that lenders must pay compensation to customers.

The FSA has stepped in and is banning all selling of single-premium PPIs and the selling of loan insurance at the same time as the loan.

There is cynicism over the case, as some are saying that the number of complaints is so high only thanks to media attention and watchdog campaigns. Either way, if you are one of the many unemployed, you may be less than impressed to find that you are not covered...

Ireland is Downgraded

2010-08-25T12:06:00.002+01:00

As if the euro zone needed any more blows, Ireland has had its credit rating downgraded to AA- by Standard & Poor's rating agency.

Ireland's own credit rating agency saw S&P's downgrade and subsequent analysis of the Irish economy as incaccurate and exaggerated (with a huge deficit of GDP expected for 2010).

The euro currency itself actually jumped on the foreign exchange market, due to a report that showed German business confidence rose to unexpected highs in August.

Australian Federal Elections

2010-08-23T15:06:00.000+01:00

Over in Australia, federal elections held over the weekend (unlike in the UK, where elections are held during the working week) brought an unclear result, similar to the results of the UK general election in May.

The news left Australian share markets fairly cautious at open in Sydney, with moderate losses for all main indices such as the ASX 200.

Meanwhile oil managed to emerge from its 6-week lows of last week to reach a slightly improved $74 a barrel halfway through the day Monday.

Alternative to Credit

2010-08-19T16:45:00.000+01:00

The OFT intends to make changes to the way in which credit card claims are made, something which had provided a loophole: the 'original agreement'.

People who are thinking of claiming against their lender for credit card charges or a large debt might find it a bit trickier under new guidelines.

If the lender was unable to produce an original agreement document within 12 days of the borrower requesting it, the debt became unenforceable. Not bad - but now lenders are likely to be allowed to produce a 'true copy' of the document. This will suffice as evidence against the borrower.

If you think it might be too risky to take a credit (or if you can't get one) there are alternatives - the prepaid card is a great way to pay without borrowing money.

Shares Fall on Downbeat Outlook

2010-08-11T17:13:00.002+01:00

Financial markets around the world tumbled on Wednesday amid a general mood of gloom and nervousness.

After retreats in Asia and the Asia-Pacific region, markets fell in Europe before bringing the mood to Wall Street. All main indices fell sharply while currencies such as the Canadian dollar and the Australian dollar fell too.

Overall there is a very pessimisstic wind among markets, with careful or downbeat warnings from central banks.

80 Per Cent Rise in Wheat Price

2010-08-06T09:56:00.000+01:00

Could the price of a loaf of bread or a bowl of pasta be on the rise?

As if consumers need more price hikes in the aftermath of the deep recession (which is still threatening to return)...

Due to a strict export ban on wheat in Russia, which is in place until December 1, wheat prices on the futures market have surged by 80% since June.

While traders cope with the massive rise, regular consumers are beginning to worry about the price on the high street.

So far, market insiders have said that the situation remains contained.

Sterling Rises to 11 Month Highs

2010-08-02T14:39:00.000+01:00

The pound is on an immensely strong day on the foreign exchange market; it has reached an 11-month high against a basket of currencies while versus the US dollar it has reached a 6-month high.

After a round of good earnings data - with big bank HSBC posting better-than-expected profits for the first half - the pound is certainly more attractive for international investors today.

The dollar, meanwhile, is on a broadly weaker streak.

Which is Your Top Forex Service?

2010-07-20T13:52:00.001+01:00

The top foreign exchange companies have today posted their pre-tax profits and show an interesting round of results.

With a few position changes - the most notable of which saw forex broker HiFX retreat from #3 to eighth place - the table of results showed that there is a major jump between the profits of the top two and the rest. Why?

The answer lies in the services that such companies offer. Sure, they are all under the umbrella of 'foreign exchange' but while some offer vast coverage of global travel money (including airport bureaux de change), others offer pure foreign exchange for delivery services.

So, the next time you look for a good foreign exchange service, don't rely on their profit margins to decide which one is worthy. You might find that the smaller firms can offer a much more streamlined and expert service than the big guns at the top.

BP Shares Affected by Storm Alex Comment

2010-06-29T12:58:00.000+01:00

BP shares have fallen again today after the company announced on Monday that its oil spill operation might be hampered by the tropical storm Alex.

The company's total costs for the cleanup and all the other facets of the disaster including claims are now estimated at $100 million each day.

BP shareholders have been affected not just by share prices in the company falling by half this year, but by the fact that dividends will now not be paid out this year.

Around 80,000 claims have been made over the oil spill which began on April 20.

Osborne's Budget

2010-06-22T13:10:00.000+01:00

The Emergency Budget is being announced today by brand new Chancellor George Osborne.

As had been widely expected, the report is filled with tough spending cuts and measures designed to reduce the huge deficit that the country is currently clouded by.

But while most Britons are bracing themselves for a time of bargain-hunting and tighter purse strings, there are some sectors that have reacted angrily at the way that they have been affected. One such group is that of public sector workers such as nurses and teachers, who are facing pension cutbacks.

Tax rises, pay freezes....welcome to the new British climate. The only hope is that it will do the job to get the economy back to stability.

Currency Peg Between Yuan and US Dollar to Ease

2010-06-21T11:49:00.000+01:00

The People's Bank of China (China's central bank) over the weekend made a surprise announcement: it intends to ease up on its peg against the US dollar.

Markets reacted with a jump in the yuan and Asian stocks, however these cooled somewhat as it became clear the Bank does not intend to make any fast changes. Monday's daily rate remained unchanged since Friday - proving that while a change is afoot, it will very much be at their own pace.

China's currency peg with the US dollar had put China under intense strain in its relationship with the US since mid 2008. The decision to ease up has come just ahead of the next G20 meeting in Toronot, Canada and many hope that trade and political relationships will improve as a result.

Gold To Hit New High?

2010-06-18T13:00:00.000+01:00

Gold hit a new record high on Thursday, reaching well over $1,245 an ounce on the New York Mercantile Exchange. As investors headed away from the US dollar amid poor US economic data, gold became even more popular as a safe asset.

The euro is also on an interesting week, heading for what could be its second straight week of gains. Earlier this month, the currency had slumped to four-year lows against the US dollar. Now, it has hit 3-week highs.

The euro was enjoying renewed interest among those investors seeking riskier assets. This was due in part to an auction of government bonds in Spain, which saw healthy demand.

BP Cutbacks Surprise Investors

2010-06-17T09:54:00.000+01:00

The oil giant BP has announced that it plans a $20 billion fund to pay for claims arising from the oil spill disaster in the Gulf of Mexico.

As part of its measures to pay its penalty, BP has also cut dividends for the next three quarters. The dividend payout for the first quarter due for June 21 has been cancelled, as have those in the second and third quarters.

Investors were surprised by the scale of BP's cutbacks - it also plans to sell assets and trim its investment programmes. Most had predicted that the company would pay dividends in shares for a quarter or two. UK pension funds are affected by this, as many have heavy investments in BP.

Greece Downgraded to Junk - by Moody's

2010-06-15T10:48:00.000+01:00

Greece recived another junk rating this week, this time from another top credit ratings agency, Moody's. Down to Ba1 from A3, Moody's is the second agency to downgrade Greece's government bonds.

The country, which has been at the heart and core of the European debt crisis, has pledged to reduce its deficit from 14% of GDP to 3% by 2014. So far, it says it is ahead of schedule on this mission.

Still, a downgrade seemed inevitable, though Moody's did add that this rating was now stable for at least 18 months.

The euro, which has seen some investor interest on the foreign exchange market over the past few days, has taken the main rap from the European crisis.