News
Posted on August 24th, 2010 in Increasing Your Income.
The big boom of Antiques Roadshow and Cash in the Attic programmes have sparked a nation of hopefuls, scrawling through their cloggy attic dust, looking for something that might fetch them the big fortune. For awhile, we were all sure attic sprawling and clutter hording would become as frequent as the lottery hopes and dreams!
The main reason we horde the clutter is because we think it may be worth something years later – and, those same years later, probably forget why we kept it. The truth is everyone can be lucky enough to own something of significant value in the form of clutter; the story of Del Boy and Rodney finding the multi-million pound watch isn’t far from a fantasy.
Bernice Gallego from California found an antique 1869 rare baseball card in her attic; if it wasn’t for her daughter she would have sold it for £10 on eBay (when the card was actually worth £75,282). Or how about the lady who bought an authentic Jackson Pollock painting (for those who you who don’t know, Jackson Pollock is considered a master of expressionist paintings) for $5 for a depressed friend because she thought it ‘looked horrible, but funny’ (it was originally $8 but the buyer, Teri Houton, said she didn’t love her friend that much). The ‘horrible’ masterpiece is now said to be worth $50million.
Unfortunately, we’re not all Roadshow presenters. Anita Rhodes, a Malborough grandmother, sold a setoff HE Tidmarsh painting for £60 under expert advice from ‘Cash in the Attic’. She later learnt that HE Tidmarsh were widely sort after and wished she hadn’t let them go!
You might not necessarily find a Jackson Pollock or prize antiques but it’s always worth checking a few items before you chuck it all away. Most famous works or antiques are marked or signed by name; a quick search can tell you if it’s a jackpot or junk. Your grandparents might have horded a painting that was worth pennies in their time but a good solid amount nowadays – you never know!
And even if the hard attic crawl turns out no priceless works of art, you can at least flog them on eBay for 50p a pop – maybe someone else will gamble on them being priceless in 10 years time!
Posted on August 20th, 2010 in Debt.
The economic recession has not had much impact borrowing and lending; in fact, lenders are still providing £170million to borrowers each day, and borrowers will pay more than £262million in interest that same day. The debt crisis is booming – and as the national debt grows, so does our personal debt.
There are enough salesmen tactics and borrowing breakthroughs to easily get you into to debt, but are there enough to get you out of it? Here, we list five easy ways to pay off debt quicker:
‘Snowball’ Your Debts
You may have already heard of this method but we’ll just give it the quick run through. Snowballing your debt is not the quickest solution but many have sworn by this method. You should first calculate all your minimum repayments on credit cards, loans .etc and note them down. Then, put each debt in order of interest, the highest first.
Minimum payments guarantee you pay the most interest for the longest time. You don’t want to drag debt misery on, but you don’t want to choke yourself financially. By snowballing debt you pay the minimum amount on the lowest interest debts but pay more than the minimum on the highest interest debt. This will clear the most expensive first and you can move down the list, with less to pay out each month.
Add to Your Income
No one really likes the thought of working two jobs or a bit of overtime. When the bite of debt does finally sink in you may find this the most suitable option. Use your skills – if you’re already working as a designer, try working freelance at home for one-off projects. If you’re particularly good at handy work, offer handyman services for a small fee. You don’t necessarily have to get an additional weekend 9-5 for extra cash flow.
Pinch the Pennies
Buying lunch at work can cost £5-£10 per day. By making food at home and buying ingredients yourself, spending an average of £6 per week, you could save an additional £4 a week (£192 per year). Apply this simple principle to other aspects, such as buying fresh instead of ready meals or using the local market were prices are a massive 70% cheaper than supermarkets.
Hide It!
Don’t hide your debts or hide away from them, hide your money, so to speak. If you want to save the wonga take it out of an account used daily, as you are more likely to spend when you see an account balance of £1000 and use what you intended to save. Invest in a savings account if necessary.
Don’t Be Afraid to Ask For Help
Use online debt calculators to help provide a rough idea of your outgoings and keep track of your money and debts with simple spreadsheets. Use online advice forums for quick tips and guidance. Keeping debt a secret and refusing help is definitely a bad idea; debt advisers, online money tip forums, debt management or even family members can provide an essential confidence to knock your debts on the head and speed into clear skies.
Posted on August 19th, 2010 in Debt, Saving Money.
Whether it be through impulsiveness, bad luck or general lack of knowledge we have all, at some point, thrown ourselves into financial horror. The only real way to keep yourself completely out of the deep end is to keep your money tight – so here are five simple tips to keep you away from debt, doom and disaster.
1. Spending and not saving:
The easiest way to get into debt is borrowing (as we know!). When money is tight and urgently needed we often turn straight to loans. The truth is if you already have the money there from savings, you you can avoid paying back significantly more than you borrowed to greedy lenders. Pinch the pennies and build up a personal fund – stay ahead of your creditors!
2. Over-priced dream homes:
As a rule of thumb you should never buy a house where the mortgage or rent payments are more than 25 – 35% of your monthly income, leaving room for other monthly outgoings, emergencies and a bit left for yourself. That dream home can easily become a monetary nightmare otherwise.
3. Ignoring bills:
It may seem like a good idea to pay your electricity bill a few weeks after you move when everything is settled, or ignore debts you left behind, but the interest will keep piling and eventually turn into massive monthly repayments if not dealt with straight away. Don’t try and fool people, thinking they’ll forget. And if you do get into trouble, arrange payment or discuss repayment plans immediately!
4. Payday/Short-Term Loans:
For the few of us that are tempted to use these, avoid like the plague. If you do take out one of these high-interest loans, only lend the absolute minimum. If you need more than 30% of your next paycheque then consider other options rather than the quick and easy solution – you will only end up borrowing again when you come up short after paying off the first loan.
5. Not searching for deals:
You can be surprised how much money you can save. If you love shopping and spending money, try shopping for the cheaper deal first. Price comparison sites can be the most valuable form of window shopping!
Finally, remember you know yourself better than creditors or banks. Think before you jump into that ‘buy now pay next year’ you’re convinced you’ll save for monthly and pay bang on time. Would you really religiously save, or put it off month after month? Will you always stick to the ‘this is the last payday loan, I swear!’ deal? Interest and charges are how our lenders make their money; a frequent lender incurring a lot of charges is a gold mine!
Posted on July 13th, 2010 in Case Studies, Debt.
Suffered a drop in income? Behind with the mortgage? Bank threatening repossession? Servicing unsecured debts from several creditors? You are not alone. Increasing numbers of people have found themselves in this situation over recent times with the continuing credit crunch. While there are several well documented options available to resolve this situation (debt consolidation, debt management, IVA etc) it is worth noting that a debt management plan can be short term and flexible with an option to step away from it when income returns.
Case Study: Self-employed and working in the building industry John experienced a drop in income as work dried up. Like most of us, while enjoying a steady income, he took out a mortgage and loans to provide a stable and happy home environment for his wife and 3 children. In this he did nothing wrong. It is what we all do in disposing of our income. Unfortunately it is a fact that if income unexpectedly drops then financial hardship can quickly follow. Few of us consider this possibility when times are good.
John found himself 3 months in arrears with his mortgage and struggling to find £800-£900 per month to service £25,000 of unsecured loans. The bank was unsympathetic and was threatening to repossess his house. John naturally wished to protect his home and family. He did not consider bankruptcy an option. Nor did he wish to enter into a 5-year IVA. After seeking advice from Moneysolve he embarked on a flexible debt management plan with an option to leave the plan should his income return to normal. The short term nature of the plan enabled John to benefit from reduced fees and his monthly outgoings were reduced by £300. After 7 months, as anticipated, his income increased and he left the debt management plan.
Posted on July 7th, 2010 in Saving Money.
For the millions in the UK who really do have to live payday to payday, savings are a luxury. But if you even manage £10 a week, that’s £520 every year. Here are ten ways you just might be able to save yourself that tenner every single week.
Lunches
Do you buy your lunch every day at work? Depending on where you work and what you buy, you could be spending up to £5 per working day. Of course, you don’t have a full working week every week, but where you do, you could save cash by buying in the ingredients from the supermarket to make your own packed lunches. Yes, granted, it takes a bit more effort… but it’s certainly bank account friendly!
Stick to a Shopping List
Certainly not a world changing or revolutionary saving tactic, but if you do write a list and stick to it when it comes to your supermarket shop, you’ll prevent yourself from making impulse purchases that really do add up.
Ditch the Brands
Supermarket brands are often significantly cheaper than their brand alternatives – and really, does it make a difference? Apart from the label, is there really anything notably better about a brand? Of course, we all have our preferences when it comes to certain foods. But consider switching a few of the brands for some supermarket’s own.
Compare Prices
We’ve really no excuse to take the first price we see anymore. Whether it’s utility prices, insurance, electrical goods or anything else, there are now so many price comparison engines online that we can see in an instant where we can get the best price. And does it really make a difference? Yes! For some items you might only be talking in pennies, but for other products you can save substantial amounts just by going to the place with the best price.
Free Entertainment
There are a host of cost free ways to entertain yourself in the towns and cities of the UK. Museums and libraries are completely free to access, for example. Try websites such as wherecanwego.com, which allows you to search a host of events nationwide and filter by price. There are a load of completely free to attend events and attending some of these can cut the costs of your weekly leisure and recreation bill immensely.
Small changes can really add up…. And while £10 a week might not seem like massive savings, £520 a year is money we’re sure you wouldn’t say no to. Whether you keep that in the ‘rainy day’ fund or treat yourself with it, however, well that’s entirely up to you!
