MoneyStuff

Hello there! Welcome to my hub, make yourself comfortable while I get the kettle on.

As we know, we are constantly relying on money to survive every day, and debt can be a confusing and stressful subject for many. However there are steps you can take to try and ensure that you can manage your debts carefully, whilst still leaving yourself a little to feed and clothe yourself (maybe even indulge in a little treat)

Here you can find a selection of useful links, tips and helpful articles to help with your debt management.

I do hope you'll find these useful to your cause - feel free to leave comments and let me know what you think, and I'm open to suggestions if there's something you'd like to see me write about for you.

One lump or two?

With the credit crunch in full swing, many of us are increasingly worried about making our money last. One of the financial markets that's seen struggles throughout is the mortgage market.

With banks and other lenders becoming increasingly stringent about who they lend to, first time buyers are now finding it more difficult to get their foot on the first rung of the property ladder. However, there could be hope on the horizon for future buyers as the credit crunch slows down, but there are a number of steps you can take to increase your chances of getting a successful application:

• Keep an eye on your credit rating - by identifying any discrepancies and sorting them out with some budgeting, you can tidy up your credit profile and prove to lenders that you're able to manage finances efficiently.
• Consider sharing with others to begin with. This'll take some degree of trust between you and close friends or partners, but it could save you money - just be sure you keep your end of the agreement with regards to bills and sharing the rent or mortgage.
• Make use of high-interest saver accounts in order to build up a bit of money towards the deposit, putting a little away each month can make a big difference when it comes to sorting out a mortgage.
• Don't leave it too late - with many of us holding out until the housing market slumps and prices fall, this is not a certainty, so if you find a deal that's right for you it's best to get in while you can - for such deals may not last for long and you may end up regretting the decision to wait in future.

With the credit crunch in full swing, going on holiday is the last thing on people's minds during the difficult times. However, it is possible to make the most of your budget and have yourself a good vacation. Here are a few handy hints for holidaying on a shoestring:

• Don't discount the holiday parks - you can get some good deals in the off-season when the kids are back at school (as well as some peace and quiet)
• If you're unable to holiday abroad becuase of money constraints, it can be worth checking out your local area for things to keep you and the family occupied - the local paper can turn up some surprising events, as well as recommendations of places to go and see.
• If you do want to head abroad for the summer months, have a word with the travel agent and don't be picky about destination. Keep an open mind about where to travel (especially since deals to the Balkan states are becoming more common in the travel market) and try somewhere new for a change.
• Try short city breaks in order to relax and get away for a short time - and it's not just Paris that is popular, try something Scandanavian or a touch of Italia as an alternative - even a short break to London can be worth looking into.
• Look into holidays which offer all-inclusive or half-board status at the hotel, that way you could save on your food bills during the trip (or eat out every night if you prefer)

And finally, don't be afraid to watch your budget during your trip, apologise to family and friends for lack of souveniers beforehand if you want to - but they should understand anyway, if not it's time to find some new friends :P

In the olden days you could go and watch your local team play for no more than a couple of quid, hometown heroes would dream of the chance to be snapped up by one of the leagues' top teams, where even then you'd earn not even a quarter of what some top players are paid nowadays.

The world of football (or soccer for those in the US) is a multi-billion pound business, and the Premier League has become one of the top leagues in the world - with some of the world's biggest stars in the game turning out in front of thousands of supporters in packed grounds each week, with many more around the world watching on television.

But now fans are preparing to feel the squeeze on their finances - for as if the bills weren't enough, they now face increases of up to 20% on last year's season ticket prices.

Many fans are feeling that they are being priced out of the chance to watch their team play. Add the cost of a season ticket to that of a plane ticket to some exotic European destination to watch them play in a UEFA Cup or Champions' League match and soon it becomes expensive to follow your beloved team.

As fanbases increase around the world, so more revenue comes into the clubs, but as spiraling wage costs force clubs to think again about where to prioritise the finances - be it on stadium development or to focus on the crop of youngsters that dream of being stars of the future.

For some, it may be expensive, but also worth it - and as the popularity of the Premier League continues to grow around the world, so many could one day feel the benefits of a reduction in ticket prices.

But with wage bills rising, multi-million pound transfers dominating the back pages of the national newspapers and ongoing arguments regarding television rights - as well as the ongoing credit crunch - could fans eventually be priced out of the game?

One option at least (although probably not the most popular) is to take a step back from the top division, with many teams in the lower divisions (the shadow of the Premier League if you will) struggling to fill stadia, consider becoming a frugal football supporter and give local teams a try - it may not have the glitz, glamour and television exposure of the main division, but at least it could save you a little money whilst helping the team in question.

Do you get on with your neighbours?

According to a survey carried out by a leading UK insurer, over a quarter of us don't even know the names of our immediate neighbours, and only a third of us actually trust them.

Nowadays we appear to be less trusting of our neighbours, gone are the days of having a natter over the garden fence, many to become potentially paranoid about their homes, more specifically their home insurance premiums.

Over 3,000 homeowners were quizzed on their relationship with their neighbours, which gave an idea about the sorts of issues neighbours can clash over.

Noise pollution was one of the most common causes of complaint - usually stemming from noisy pets and children - amongst other reason, which included parking issues, littering, overgrown foliage and lack of privacy.

Problem neighbours can be a worry for homeowners, with some fearing that any damage caused by nuisance neighbours could affect their house insurance premium.

Indeed, many insurers are finding an increased number of claims on home insurance policies due to nuisance neighbours, with many looking to the companies themselves to help solve the problem.

Out of those surveyed, 6% have sought legal action over the activity of their neighbours, however a third of people choose not to complain about problem neighbours for fear of getting into arguments.

Over a quarter of those surveyed admitted to regularly sneak ing a peek at their neighbours' gardens, with a further 12% worried that the state of them could affect their chances of selling their home in future.

It's a subject that still remains a touchy subject for a lot of people - for many don't like the thought of discussing what should happen when we die, instead choosing to concentrate on current money matters - particularly as we find ourselves in the midst of a credit crunch.

According to research carried out by leading mortgage brokers, around 59 percent of homes in the UK have no cover secured against them, those that have are believed to have insufficient life insurance cover.

Over the last few years, Britons have been shunning cover, despite having a variety of services available to find the most affordable life insurance quote for them - such as price comparison sites.

Many are choosing to say no to the most basic of life insurance policies. The fear for many is that they simply can't afford to take out such policies, as mortgages seem to dominate our lives nowadays.

The ongoing credit crunch is leading many of us having to prioritise our finances, but in the process of doing so could very well be putting ourselves at risk with regards to life insurance policies. Indeed, now many borrowers are now choosing not to take out any type of cover, at all.

This can, of course, lead to problems in the future - particularly if something happens to those who've contributed to the mortgage.

Many consumer bodies are now sending out stark warnings about the consequences of not taking out life insurance policies. Insurance providers now making use of a variety of advertising in order to highlight the dangers of not taking out vital life insurance policies.

By considering a few points when looking for an affordable policy and taking out cover, you can help put your mind at ease in knowing that those closest to you will be financially stable should something happen.

• Consider taking out two separate policies, rather than a joint policy – it could work out cheaper for you in the long term.
• Check if you can arrange cover through your workplace, or already have some available as part of your contract.
• Check that the company you're buying from is regulated by the Financial Standards Authority (FSA)
• Before you sign the paperwork on a life insurance policy, ensure your premiums are fixed throughout the term of your policy.
• Ensure your policy is written 'in trust' – this will help release the money quicker should something happen, and could reduce the risk of relatives paying inheritance tax.
• Ensure you have had a will drawn up, this will help outline where your money shall go.

With the ongoing credit crunch affecting economies around the world, debt management companies in the UK estimate that over 1million of us struggle to cope with unsecured debts - averaging around £25,000.

It is predicted that UK consumer debt totals over £1.4 trillion, and with over 400,000 of us entering into debt management schemes and IVA schemes, the situation could get worse, with fears that the credit crunch could double the numbers of us struggling with, and succumbing to, debt-related problems.

Economic factors like rising house prices and inflation have forced many of us to take out plans in order to reduce our debts - such as IVAs, which act as an alternative to bankruptcy. But as the situations worsen, many of us could find our options limited, as banks and building societies are becoming more stringent about their lending criteria, even cancelling some services - such as fixed-rate mortgages and many loan schemes that favour homeowners.

It is advisable to seek assistance from a financial advisor before commiting to such debt management schemes, and many schemes come with high fees. So whilst you may think you're managing your debt, you could find yourself paying excess fees (and indeed more than your debt in the first place)

However, a new type of IVA, known as a SIVA (or simplified IVA) is projected to launch in October of this year, and could act as an alternative to bankruptcy. Whilst the details of such a scheme are still being analysed, it could mean the introduction of a two-tier system, which would be used to determine whether we qualify for debt help.

It remains to be seen what effect such a scheme could have on the ongoing economic situation.

Almost everybody owns a mobile phone nowadays, and with so many models available it's tempting to splash out. Considering handsets nowadays have more features than a Swiss army knife, mobiles are becoming more and more attractive to thieves.

Securing yourself some mobile phone insurance is very much recommended in case something should happen to your handset - be it theft, accidental loss or elemental damage.

But be wary, over the years there have been an increasing number of complaints regarding claims being rejected by the providers. Many policies can have confusing small print, which doesn't cover certain scenarios.

So whilst you may very well be covered against some factors, you'll miss out on certain others.

And unless you contact your provider within 48 hours after the incident took place (which is unlikely as you'd have no working phone on you at the time) then you're unlikely to get any sort of compensation for your loss.

According to a recent survey, any who take out consolidation loans to cover debts go on to borrow more in order to clear excess debt.

Over 23% of those who took out a consolidation loan had failed to close existing debts before making the commitment – according to a poll of borrowers.

Out of those surveyed, 85% said they hadn't been asked about closing debts by lenders.

Consolidation loans can seem tempting because of the idea of paying off all your debts in one easy monthly repayment, however they have been accused of not giving enough information to potential borrowers and of causing some to fall further into debt.

If you're considering a debt consolidation loan in order to help with your finances it pays to do your research, be sure to check every detail and don't be afraid to ask questions to your lender.

Some interesting news for those struggling with debt this morning after the latest changes to the Banking Code were announced.

The changes to this voluntary code place more pressure on banks by stating that it is they that would have to contact those customers who are at risk of debt problems.

Usually it has been the onus of the customer to contact their bank to inform of any changes and difficulties, but now banks and building societies must do more to assess customers with regards to new loans and credit limit increases - taking into account factors such as income, credit rating and any other financial commitments.

The latest changes also prevent banks from switching customers to fee-paying accounts from free ones without their permission, and puts pressure on them to provide help and support for the following areas:

• Providing more support and information on switching current accounts to other banks
• Ensuring greater clarity on cheque-clearing timescales
• Offering up-t-date information on protecting their account from fraud
• Inform about alternatives to chip-and-pin technology
• Provide information about unsecured loans and savings accounts in summary boxes before the product is sold.

According to research carried out by a banking research firm, there has been a worrying increase in cases of credit card fraud. It was thought that since the introduction of chip-and-pin technology in 2003, credit card fraud had taken a tumble, thanks largely to the change in technology and increasing public awareness of the dangers of phishing and other scams.

However, recent statistics have revealed that whilst some areas of credit card fraud have been decreasing, some areas have been on the increase.

Levels of card-not-present fraud (chip-and-pin and net sales) has seen an increase of over 35%, almost double compared to in 2004.

Losses from credit card fraud totalled over £535 million last year – an increase of around 25% on last year. Such an increase is coupled with a surge in crimes using stolen bank details, most of these tend to happen overseas. And with more of us now inclined to shop online, this type of fraud remains a threat to consumers and banking groups.

So what can we do to ensure our details remain safe? Well by following a few handy tips you could lower your risk of becoming a victim of credit card fraud:

• Only use websites that use secured payment pages (look for sites which have 'https' before the site name)
• Use a secure online payment system, such as PayPal, in order to make payments online if you're unable to pay by credit card.
• Should you should receive any suspicious e-mails that enquire about your personal details or transactions you don't remember making, first of all don't panic. Do not respond under any circumstances and report any suspicious activity on your accounts to your internet service provider and bank/credit card company immediately.
• Only buy from sites which you're sure are safe, if you're unsure about the security of a certain site, don't be afraid to look for safer alternatives - even if it may mean having to pay slightly extra.

We've all seen the adverts, with many companies grabbing our attentions with 0% interest deals on credit cards (usually through adverts that are flashy and cute - such as the example to the right)

According to research carried out by a banking firm, over 4 million of us plan on transferring balances from their credit cards - in a practice known as 'stoozing' - within the next six months.

But whilst 0% credit cards can be useful for spreading payments over time, not every person will require the lengthy interest-free periods associated with such deals.

But there is now a new type of credit card that offers a shorter 0% interest-free period, along with no fees to pay. Such deals can be ideal for those with small amounts of debt, allowing them to pay the balance off without accumulating interest or having to pay fees.

However, rate-tarts beware! Such cards usually have very strict criteria for applicants - including having a very high credit score and also the status of any arrears or CCJs.

Your credit score can play a major part in how much you are allowed to borrow, by keeping an eye on your credit score and ensuring it stays positive you can increase your success rate in applying for loans and other financial services in future.

When it comes to credit cards there is no end of different options available to us. We've all been exposed to adverts involving flashy graphics, and in some case dancing guinea pigs, all to grab our attentions and bring their 0% interest-free offers to our attention.

It is predicted that over 4 million of us will transfer balances between credit cards in the next six months. And with more of us choosing to 'stooze' in order to keep our finances in check, getting a decent deal on your credit card can be vital.

For those with only a small amount of debt to pay off, look to the fee-free, short-term deals, however these will only be available to you if you have a decent credit score and a healthy bank/credit card balance.

Alistair Darling delivered his first Budget as Chancellor on Wednesday 12th March. During the 50-minute speech he set out plans for the financial year - with increases in cigarette and alcohol duty as well as road tax.

The Chancellor also proposed an increase in child benefit to try and ease the pressures of debt from families and to help bring more children from under the poverty line. Pensioners will also get additional funding towards keeping warm in winter, and more will be spent on the armed forces and bringing school standards up.

However, there are warnings that public spending is set to rise next year - as more of us look to credit cards and consolidation loans in order to keep finances tolerable.

Today is officially Debt-Freedom Day here in the UK, but from the sounds of things it's not much to get too excited about. It's used to refer to the point in the year when workers have earned enough to keep their debts at a reasonable and workable level.

However such news merited a Scrooge MacDuck picture - couldn't resist the retro classics :) WOO-OOO!

Apparently such a day has fallen 39 days later than last year (when DFD hit on February 1st) and with a credit crunch gripping the country right now, personal debt levels have increased by over 10 percent since last year.

Worryingly, personal loan debt has skyrocketed by almost four times from last year - up to a whopping £9.8 billion pounds - and with interest rates rising, Britons now pay almost 1.5 billion pounds in interest alone. However the same figures also showed a slight fall in credit card debt.

According to research carried out by one of the countries' leading banks, young people are being 'overly optimistic' about their financial futures.

The survey questioned over 8,500 people aged between 11 and 19, and focused on financial aspects that even adults nowadays are struggling to cope with.

Many expected to be earning around £31,000 a year by the time they're 25, as well as owning their own home by the same age, and a car of their own by the time they are 21. Worringly enough, over 30% of those asked did not expect to be in any debt at all in the future, and many believe that they will owe less than £10,000 after completing university.

However, as debt in the UK reaches worrying levels, the reality of the situation for young people in the country looks far more grim than what many in the survey believe - with the average age of first-time buyers being 28 and the average age for graduates being just under £18k

With an increasing number of young adults now finding themselves falling into the debt trap, charities are now turning to technology to offer advice on debt to the younger generation.

By focusing on delivering information through mobile phones, mp3 players and the internet, it's hoped that more young adults will take responsibilities for their finances.

By converting factsheets to a format suitable for a mobile phone, it is hoped that advice on money management can reach over half a million youngsters.

Such a scheme would probably not be rolled out until early 2008, but there have been consultations as to what sort of information would be available. It is hoped that targeting new technology could be an increase in young people seeking advice in order to help them cope with debt.

With the credit crunch hitting the UK economy, many borrowers and homeowners are feeling the squeeze of rising rates and unmanageable bills.

More borrowers are struggling with debts - made up of credit cards, rises in energy bills and complications surrounding self-assessment payment deadlines.

With Christmas over, festive debt accumulated in the run-up can play a major part in affecting finances for the year ahead.

As more of us are spiralling into the debt trap, the numbers of calls to debt consolidation companies and specialised charities have increased as well.

For those considering debt consolidation in one form or another, be wary of your options and your current financial state. Plan your finances for the year ahead, ensuring that you leave enough to pay the mortgage but also afford to feed and cloth yourself for the month ahead.

If you do require a loan to consolidate your debts only borrow what you are certain you can afford, many find themselves getting themselves into situations which can quickly get out of hand. Research is very important when selecting which of the many deals would suit you. It's best to shop around for the best deal, it's often handy to make use of debt sections of price comparison websites in order to find the deal for you.

If you're worried about your options or are unsure of where to turn to next, get in touch with your local advice bureau - who can advise on solutions to help your situation and also help to draw up financial plans to aid you in reducing your debts.

When it comes to financial services such as loans and mortgages, payments can now be arranged using direct debits in order to help effectivly organise finances, giving us the opportunity to plan our monthly spending more effectively.

However, according to a recent survey, around 3% of those who have taken out loans have missed a payment in the last six months – compared to 2% in 2006.

Such overviews could have a harmful effect on your credit score, affecting your opportunity to borrow in future.

However, lenders will usually let one-off payments slide if informed of mitigating circumstances in plenty of time. If you think you may miss a payment on a mortgage or loan, it is advisable to contact your lender as soon as possible and provide a truthful explanation of your situation.

Missing regular payments is sure to set lenders warning bells ringing and have a detrimental effect on your credit score. Records of missed payments usually remain on your credit record for 36 months, and whilst it is still possible to borrow with blemishes on your credit score you could find yourself paying higher rates of interest.

Imagine the scenario if you will, you’ve applied for a loan or mortgage, you earn enough to meet repayments and you're waiting for the correspondence to arrive - keeping your fingers crossed for an acceptance.

The mail arrives, and amongst the bills and junk mail you find a letter from the provider, letting you know you have been unsuccessful in your application.

Such news will undoubtedly bring initial feelings of shock and disbelief, however, this is not an indication for panic.

By doing a little research to find out what went wrong and keeping an eye on your credit rating you can potentially help yourself with future applications.

Your credit score can be affected as a result of factors which can be accidently accumulated - thus leading to blemishes on your credit rating, which can then affect your chances of future borrowing.

These can include:

· Missing credit card or loan payments

· Failure to maintain regular employment

· Overlooked parking fines

· Missed utility bill payments as a result of changing address or divorce

· Multiple prime-rate loan rejections

Whilst lenders are required to reveal details of reference agencies that they contact in their research process; they cannot reveal what the credit problem is due to data protection laws.

Before applying for a loan or mortgage, it’s advisable to research your credit score and take steps to maintain it and keep it positive, taking such action will hold you in good stead during future applications.

Punctual payments will go down well on your future credit score and help increase your chances of getting a successful application.

There are a number of debt consolidation organisations on the market, of course we know this as we've all seen their adverts on daytime television - offering the chance to free up some cash for yourself by consolidating into one monthly payment.

These companies give borrowers the opportunity to get their finances organised whilst still being able to afford the necessary basics, such as food and clothing, each month.

However, when applying for such schemes, monthly income and existing debt level is taken into account in the application process. From these details a monthly payment plan is calculated, the provider will then negotiate interest rate reductions with lenders in order to secure you the most affordable deal.

It may seem tempting to rush iunto such plans, but it is advisable not to seek advice before embarking on such plans. The Citizens Advice Bureau (CAB) can offer useful advice on a range of debt-related subjects – ranging from tips on budgeting to negotiations with lenders in an attempt to reduce monthly payments for you.

Credit cards can be the easiest way to fall into debt. However with a bit of careful planning and a change in your spending habits, clearing the debts accumulated can be easier than you may think.

With so many deals on credit cards on the market, the choice is broad and varied. Some 0% interest deals can last for up to 15 months, but some of those offered by big banks can charge larger balance transfer fees, so it's worth double-checking the small print in order to see where you stand.

Whilst you’re likely to be charged a higher typical APR than advertised rates, with sensible payment budgeting you can potentially pay it off before the 0% deal expires.

Let's face it, going to university isn't cheap, there's the initial sign-up for a start, and those loans to pay off at the end of your course.

Many students now have to fund their day-to-day living using credit cards and additional student loans. Credit card limits for students are usually low and involve the same amount of interest as for regular cardholders, whilst interest-free overdraft facilities on student accounts are usually offered by the big banks (usually with free stuff as part of the sign-up process)

These schemes can seem tempting at first, but can be difficult to repay if finances aren’t planned right - sure you could gain a camera or a toaster or something, but you can also find yourself struggling to make ends meet, so it's important to take your financial situation into account.

With the graduate job market fluctuating from year to year, students are facing the prospect of living with debtupon leaving their studies. Despite graduate earnings rising over recent years, students can now expect to find themselves in constant struggles with their finances for a number of years.

It’s worth noting that the interest–free periods on overdrafts, which helped during time at university, will expire after a certain period of time after graduation, and should you go over your limit you’ll find yourself stung with overdraft fees and daily interest payments.