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.
29 November 2010
26 November 2010
Pay Day Loans As A ShortTerm Money Solution
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.
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.
24 November 2010
New Year brings misery for commuters with 6.2% train fare increase
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.
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.
23 November 2010
Long Way To Go For Albertans
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.”
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.”
16 November 2010
Concern in Europe as Ireland resists EU ‘bail-out’
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.
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.
10 November 2010
All Eyes On China As Pressure On the Superpower Mounts
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.
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.
08 November 2010
HSBC Stands Up To Banking Levy
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."
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."
01 November 2010
Home Loans For Those With Bad Credit Histories
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.
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.
29 October 2010
Savers Left In The Dark
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.
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.
25 October 2010
One Size Fits All-New Pension Scheme
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).
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).
13 October 2010
US Bankers Still Receiving Big Payouts
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.
07 October 2010
Alarm Bells For Homeowners
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."
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."
06 October 2010
Millions Of Pounds Missing Because Of Currency Firms
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.
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.
30 September 2010
Budget Tips For Everyday Life
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.
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.
28 September 2010
Fears Over Debt Management Companies
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.
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.
27 September 2010
To Pay Or Not To Pay
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...
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...
20 September 2010
Minimising The Cost Of Divorce
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.
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.
16 September 2010
Consumer Confidence Dwindles- Fight Back!
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
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
15 September 2010
Clothing Prices Set To Soar
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.”
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.”
09 September 2010
Claiming Online
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).
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).
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