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  Should You Save Your Money Or Pay Off Your Debt?

  Beth 4:47 pm on January 27, 2012 | 0 Permalink | Reply
  

  If you’re lucky enough to have money left over at the end of the month or if you get a bonus through from work, what should you do with the extra money?  Of course, many people will be tempted to spend it on nice things like clothes or gadgets, but realistically the two best options for that money would be to either use it to pay off some of your debt or put it away as savings.

  What would be the best option?

  Saving Money

  One of the biggest arguments for saving your money is that you are covered should a financial emergency pop up. Also, by doing this, you could try to prevent getting into debt in the future. However, the difficulty with doing this and not paying off your debt, is that the interest on things like credit cards will increase, leaving you paying off more money that you might have done before.

  Paying Off Your Debt

  Paying off your debts is important as the longer you leave it, the more interest you will pay, so it’s a good idea to get rid of the debts as quickly as possible.

  However, if you decide to use the money to pay off your debt, you could leave yourself at risk if a financial emergency appears. If an unexpected expense does pop up, then you might find yourself relying on credit cards to cover the costs, which could make the debt worse.

  Why Not Try Both?

  I think realistically, it’s important to do both. It’s a good idea to be able to find a good balance between paying off your debts, but trying to set some aside in case of emergencies. So, maybe if for example, you were lucky enough to be given a £500 bonus at work, then it might be worth putting £250 into a savings account

  Obviously, this does depend on your circumstances, as most people aren’t lucky enough to have money left over at the end of the month. If your debts are more urgent, like a utility bill and you don’t have any spare case and don’t want to use credit cards, what are your options?

  If you have no emergency fund and an unexpected finance does come up, then you might consider a short term loan like a payday loan. It’s possible to apply for anything from as little as £50 to as much as £1250, which you borrow until your next payday. For more information, why not check out our FAQ’s?

   

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  Experts Predict Finances Won’t Improve Until 2020

  Beth 2:08 pm on January 26, 2012 | 0 Permalink
  

  A new report has shown that low to middle income earners won’t see any proper improvements to their finances until 2020 at the least.

  This report refers to the households that bring in around £20,000 a year take home (around 5.8 million households). According to the research, the incomes for this group of households will gradually decline then start to level around 2016/2017. Then hopefully, the growth that is expected will come along and then in 2020, these households will go back to the same disposable income they had before the recession came along. However, if this predicted growth doesn’t happen, then incomes could be 8% lower than 2007, which isn’t good news.

  Whatever the outcome, it’s still likely that the gap between the lower incomes and the higher incomes will get bigger.

  Also, with regards to property, this group of people took around four years to save for a home deposit in 1992 and eight years in 2001. In comparison, these same households will now have to wait around 22 years to be able to get their own home. It also showed that those who are over 35 may never be able to stop renting. The reasons that researchers gave for the increase was that wages aren’t increasing at the same rate as house prices.

  Although many people across the UK are looking for some positive news regarding the state of their finances, unfortunately the immediate future isn’t looking too bright. Hopefully we will get some good news about the economy soon.

   
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  Ways to Save Money in 2012

  Oliver 1:49 pm on January 25, 2012 | 0 Permalink | Reply
  

  A new year, a new start, as the saying goes. It’s safe to say that most people will have set themselves a goal or two to aim for both personally and professionally. This could take many different forms, perhaps losing weight, getting healthier, or aiming for a promotion at work. (More …)

   
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  Why is January So Tough Financially?

  Oliver 1:34 pm on January 23, 2012 | 0 Permalink | Reply
  

  For most people, the beginning of the New Year is a time for a fresh start. Whether it’s New Year’s resolutions or personal and professional goals, you’ve no doubt come up with something that you want to achieve for 2012. Whilst a new year means a new you, it will often be the same old story financially for most – with January being the toughest month of all. (More …)

   
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  Insurance Costs On The Rise

  Beth 3:13 pm on January 20, 2012 | 0 Permalink
  

  In 2011, the cost of car insurance increased by 15.5% and combined with the 33.2% rise in 2010, the total increase over the past two years is a staggering 53.5%. The new figures from the AA also show that the typical insurance policy is now £971.

  It’s not surprising that so many people aren’t able to afford to insure their cars, especially young people. The average quote for men between 17 and 22 is £3,194 and women £1,879. Many experts were surprised by this big increase as many were hoping the rise wouldn’t have been as big.

  However, this increase in prices has not gone unnoticed and the OFT (Office of Fair Trading) are on the case to decide whether changes need to be made. There is also a crackdown in progress on firms encouraging people to take out accident claims, even if they are fine. This is bumping up the cost of other people’s insurance, so isn’t helping the problem.

  Unfortunately for many consumers, it’s not just car insurance which is on the rise, but home insurance too. In 2011, the average buildings insurance increased by nearly 10% to £156.95.

  So, how can you get cheaper insurance?

  Well, one of the best ways to get the best deals is to use price comparison sites. Although some sites may not show up, you should be able to get a better idea of how much you would be looking at. This way you can hopefully save yourself  time and money.

  Also, don’t go straight away with the automatic renewal from the same company you were with last year as this might not still be the best price. Shop around before saying yes!