Credit Crunch

Have you seen your credit rating??

This is important and FREE!!

When you apply to your usual bank or a new lender for a loan, mortgage or credit credit card. They check your credit worthiness.

They see what money you have or do owe and whether or not you are paying it back, then they decide whether you are a good or bad risk, whether they should lend you money at their best rate or not at all.

How can they see all this information? They use a credit reference agency like experian, you can see this information too and you can see it for free.

Knowing what your credit rating is like means you can work to improve it, improving it could save you money especially in these days of the credit crunch.

View your Experian credit report online for FREE

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Credit crunch may be good news for UK tourism

In recent reports, tourism experts have predicted that the current financial crisis may in fact be good news for British tourism as they expect more Britons to take holidays within the UK next year rather than going abroad.

With the costs of flights and holiday accommodation rising, and amidst fears about tour operators and flight companies going bust – and taking customers money with them – the reports suggest that many of us now prefer to holiday at home.

An example of this has been the sharp decline in Britons traveling to Thailand for holidays this year. Bangkok’s main airport reported arrivals from the UK in August were down by 33% when compared to the same time the year before.

In September, arrivals were down by 21%, and industry experts expect a continued decline as the global credit crunch prompts consumers worried about their jobs and mortgages to stay at home.

Philip Riddle, chief executive of Visit Scotland, told Scottish parliament earlier this year, “I think one of the things that will arise from that nervousness will be people considering staying closer to home for holidays. I think it’s a good time to capitalise on that.”

However, Mr Riddle also urged the government to renew a fund that was originally established to encourage more direct flights in and out of Scotland, the Press and Journal reports.

The route development fund provided £14.4 million over four years to help Scotland’s aviation industry and vicariously the general tourist industry of Scotland would benefit.

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Parents suffer sleepless nights due to credit crunch

The Family and Parenting Institute has recently published a report which reveals that a third of UK parents are having sleepless nights because of worries about money and that 29% of those parents are arguing over their family’s money situation.

The report, based on a YouGov survey, questioned over 5,000 parents of under 16 year olds and also found that one in four parents say that their income doesn’t cover the bills each month.

27% of the parents said they believe they won’t be able to pay the bills in six months time while one in ten fear that the main household earner will be made redundant in the next six months.

75% of parents have debts by way of credit cards, loans and overdrafts and the average amount owed is £8,400.

The report also showed that the costs that are causing most concern to parents are heating, paying the rent or mortgage and food.

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Save money on going out

Whether you’re booking sports, concert or theatre tickets this Christmas, your best bet to save money is to call is the venue direct. Some promoters will only sell via agencies but if the venue sells direct, they often offer cut-price or no booking fees.

You should try this even if the adverts for the event direct you to a ticket agency. They do this because often, the agencies pay a share of covering advertising cost in return for getting their phone number or website listed.

Alternatively, try a price comparison site to find out where you can get that all important ticket cheapest. One of the best is www.ticketmaster.co.uk

If you regularly eat out, a good site for finding lots of BOGOFs and other deals is www.wagamama.com where, if you sign up for membership, you’ll get access to its ‘promotions room’, and 2for1 offers and other vouchers, all updated weekly.

For days out by train, you can find lots of really good money saving deals and BOGOFs at www.daysoutguide.co.uk

And look out for free cinema tickets in the newspapers as well as offers such as cheap family screenings at weekends. Vue runs a cheap KidsAm offer, details of which are here www.myvue.com/kidsam and the Odeon runs a similar offer. See www.odeon.co.uk/fanatic/kids for details.

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Credit crunch cons warning

Trading Standards are warning consumers to be wary of con merchants claiming to offer loans and services.

Complaints about illegal money lending, internet scams and counterfeit goods are on the increase and in the run up to Christmas, many families are falling victim to confidence tricksters in their efforts to have a cut price yuletide.

In Anglesey, the Trading Standards office has joined forces with Wales newly formed Illegal Money Lending Unit to investigate, and prosecute, illegal money lenders and provide support for the victims.

The new unit is expecting a continued rise in the numbers of people who turn to loan sharks as credit from banks and on card becomes more difficult to get, and when money is tight, people may be tempted to look at other alternatives or even ‘get-rich-quick’ schemes.

Other examples of cons that the unit is investigating include doorstep rogue builders offering to do work cheap, but then demanding large sums of money for little or no work done.

Anglesey’s chief trading standards officer, David Riley, said, “Dishonest and illegal traders will not be tolerated on Anglesey, as they prey on vulnerable people at what is often their most crucial hour of need.”

If you suspect you’ve been ripped off or have taken out a loan from a source that’s proved suspect, you can find details of your local Trading Standards office at www.tradingstandards.gov.uk

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5 steps to reduce your outgoings

Debt is a vicious cycle and often, we simply don’t end up with enough money at the end of the month to do much about it, but here are 7 tips that should help you to get organized long-term with your finance.

1. Analyse your monthly expenditure

Check if there are any outgoings that you pay regularly but don’t actually need, for instance are you still paying for a gym membership you never use or an insurance you’d forgotten about or don’t need?

2. Check your weekly expenditure

Cut down on what you spend daily on food and drink because it can soon mount up. For example, a smoothie can cost anything up to £3 a bottle, so instead, eat an apple and a banana and drink water. Do you really need to spend £21 a week on a drink?

3. Appraise your credit and store cards

A £1,000 balance at an APR of 14.9% will take 19 years to clear and will cost over £1,000 in interest if you pay it at the minimum 2% level. However, paying back at 3% each month brings the repayment time down to just 11 years and the interest you’ll pay to £545. That extra 1% can make a massive difference so always pay a little more than the minimum payment.

4. Reduce your energy bills

Use one of the many comparison websites to switch your energy provider to one who is charging less. While you are at it, check out if it be cheaper to have a water meter installed.

5. Get a better deal on your mortgage

It may be difficult to find a good mortgage deal these days, but they do exist. Again, price comparison sites have lots of advice for reducing your mortgage repayments and long-term interest.

If you need help budgeting or advice on debt management, speak to an independent financial adviser or contact the Consumer Credit Counselling Service (CCCS) on 0800 138 1111.

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Redundancy and how to deal with it

With so many of the biggest names in UK business going under there are going to be thousands of redundancies, so what do you do when you get the dreaded letter telling you you’re being made redundant?

First, try not to panic, which is easier said than done with bills to pay and Christmas around the corner, but there is help out there; you just need to know where to look.

For a start, make sure that your employer pays you everything you’re owed, and if you’re in any doubt, contact the Advisory, Conciliation and Arbitration Service (Acas) who offer free, confidential and impartial advice on all employment rights issues. You can call the Acas helpline on 08457 47 47 47 from 8.00 am to 6.00 pm Monday to Friday.

Then you’ll probably need to claim benefits. Don’t put it off thinking you’ll get another job quickly because chances are, thousands of your fellow workers are thinking the same and now is not the best of times to be out of work. You can find details of benefits and how to apply for them at www.direct.gov.uk

Next, write to all your creditors explaining what’s happened and set up an arrangement – before you get into arrears if possible – to pay what you owe. The CCCS www.cccs.co.uk will help you with this or your local Citizen’s Advice will work out a repayment plan with you too. You can find your nearest office here www.citizensadvice.org.uk/index/getadvice#txt_getadvice_header-Anchor-search

Finally, even though jobs are scarce, they’re not non-existent and you can find lots of help and advice on job hunting here www.direct.gov.uk/en/Employment/Jobseekers/LookingForWork/index.htm

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Top firms turn Scrooge for credit crunch Christmas

Many companies are planning their staff Christmas parties at the moment but even this traditional festivity is being hit by the credit crunch.

City workers used to party in their offices with banquets and champagne but now, they can expect finger buffets and a pint… if they’re lucky. In some cases, staff have been told they have to pay for food and drink at the office party.

Channel 4 has warned its staff that there’ll be no free shots of spirits nor will there be entertainments such as “massages and chocolate fountains” this year.

Lloyds TSB has reduced the party budget for its members of staff to £35 each while the Royal Bank of Scotland is allowing just £10 per person maximum.

Some well known companies who are suffering in the global financial crisis have cancelled their staff parties altogether. HBOS staff are missing out, as are staff of investment banks Morgan Stanley, Goldman Sachs and Barclays Capital, all of whom have axed their festivities.

Television watchdog Ofcom is spending around £2,000 on a party at its London HQ for 800 employees while all 2,000 staff at the Audit Commission have been told they’re entitled to spend £30 each.

The Department for Culture, Media and Sport are to have a party at the Wallace Collection gallery for 120 contacts in the art and museum world but a department representative insists the affair will cost no more than £5,000.

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Credit Crunch Proof your Finances

The Global Credit Crisis seems to claim a new victim everyday, it started with the banks Northern Rock, HBOS and RBS amongst others now its retail the two highest profile victims being Woolworths and MFI. Who’s next?

Heres some tips to credit crunch proof your finances and make sure you don’t go the same way as the above, the first thing you might want to do is make sure your credit rating is in good order.

Your credit rating is how potential lenders assess the risk of giving you cash. Having a bad credit rating can cost you more in interest payments and might even lead to you getting refused a loan when you need it Check your credit rating for free make sure its in good order.

The next thing you might want to do is make sure you have all the cash thats owed to you, reclaim any ppi you where mis-sold and get back those credit card charges, you could also investigate whether the tax man owes you anything.

Equity release is becoming a popular way of getting some money out of your house without moving, its not just for the retired, if things are getting really tough you might want to read this guide on how to cope with Mortgage arrears.

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How to cope with mortgage arrears

The Council of Mortgage Lenders has reported that the number of people in arrears with their mortgage at the end of September this year was 168,000, which is 8% higher than the 155,600 who were in arrears at the end of June.

By December, that figure is likely to rise dramatically and is expected to exceed the previously forecast figure of 170,000.

So, what should you do if you’re experiencing difficulty in paying your mortgage?

Here are a few tips that should help you to manage your debts more effectively and keep a roof over your head.

Write a list of all your debts. You need to have a clear idea of who you owe money to and what interest you’re being charged. Then, prioritize your debts ensuring that any loans secured against your property are paid first.

1. If you’re struggling, TALK to your lender! For many, it seems easier to just ignore the letters and phone calls from lenders but unless you talk to them, they can’t help you and will assume you’re just ignoring your payments.
2. If it’s gone that far, always ensure you abide by the rules of any county court judgement and stick to any arranged payment plans. Failure to do so can result in your home being repossessed with little or no further warning.
3. Always gets free and independent advice about managing your debts because most lenders will take the advice of a debt management agency about your finances but may not if you approach them yourself. The Citizens Advice bureau and the Consumer Credit Counselling Service will negotiate with lenders on your behalf too, saving you all those distressing calls.
4. Don’t decide that simply giving your keys back to your lender will be the end of it either. In the US, the returning of keys in the post has become so commonplace it’s known as “jingle mail”! However, you may still be liable for any shortfalls if the lender doesn’t clear your debt by selling the property and they can chase home owners for this money for up to six years.

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