FinanceDogma – Finance, loans, creditcard and mortgages

November 23, 2015

Save for a rainy day

Filed under: Finance — admin @ 1:03 pm

The most basic reason for saving is the old maxim of “putting something away for a rainy day”.

Most people are optimists, and young people particularly so. We believe that nothing unforeseen will go wrong in our lives to cost us large sums of money.

It is good to be optimistic, but it is also good to be realistic! Believe me, by the time you are 30, if not a lot younger, you will know all about the many things that can go wrong and cost you a fortune!

Your car could suffer a serious breakdown the day after its guarantee has expired. Loan interest rates could rise (they frequently do, after people have calculated what they can afford to pay on a certain purchase), resulting in sharply increased repayments. The company you work for could find itself in trouble, and have to retrench some of its staff. Even the civil service could, in a time of serious national distress, find itself unable to pay as many employees as it would like to — meaning that some of them (including maybe you) could find themselves with a reduced bonus or no pay rise, or maybe even no job, at a time when every cent is needed to pay hire purchase or house loan instalments. Or you could suffer a serious injury which keeps you off work for longer than your employer’s insurance is prepared to carry you on full pay.

Have you not seen your parents’ swimming pool develop a crack which needs costly repairs, at the same time as the lawn mower or the washing machine broke down, just when they needed to kit out your younger brother for high school — and all of this happening immediately after the summer holidays which themselves cost an arm and a leg?

If for no other reason, then, save for a rainy day. Because assuredly, that rainy day will come!

April 15, 2014

Smart Money Management

Filed under: Tips — Tags: — admin @ 10:29 am

One of the most important ways to get rich is by managing your money well. If you have a 50,000$ income, you shouldn’t go and get yourself a 50,000$ car!

I can only give you a few tips, but the bulk of it is on your shoulders. Here are few tips, to help you get started on saving money and managing your money balance –

Keep a budget

It is always good to keep a budget for all your expenditures. If I say, all, I really mean it. Keep a budget for gifts and birthdays.

First day of the month, sit down for 15 mintues and write it down, write what all your expenditure is going to be for this month.

During the month, if you exceed your budget, keep a note of where you exceeded, this will help you cut down on your expenditure in that particular area!

Money Management

Invest Smartly

If you don’t know about Stock Market, either do your research or don’t invest in it. One of the best ways to invest is usually keeping the money in the bank, with the sweep in and sweep out facilities. This will keep interest accumulating in your bank.

If you have a big expenditure planned for future, start saving for it, create a fixed deposit in your bank and work hard to reach the goal.

These small tips won’t make you earn a million, but it will definitely help you save the money where you can cut it. You might need even that little bit in case a rainy day comes.

December 10, 2013

Royal Mail Announce Stamp Costs

Filed under: Finance — Tags: — admin @ 12:51 pm

According to the Royal Mail, stamp prices are set to rise. As the current UK economy faces uncertain times, coupled both families and businesses struggling to make ends meet, is this really a good time for the Royal Mail to be hiking up their prices? Unfortunately, according to their chief executive, the decision to do so was inevitable.

So what will the new prices be? Well the Royal Mail have announced that prices will rise from the current 46p for 1st class stamps to 60p, and from 36p for 2nd class stamps to 50p. As a result, posting a large letter will increase from 75p for 1st class stamps to 90p and from 58p for 2nd class stamps to 69p. The changes will take effect from April 30th 2012.

With competition increasing, a declining volume of letters being sent and the threat of emails and other electronic messaging services, the decision for the price rise was unavoidable according to the Royal Mail’s Chief Executive, Moya Greene. She explained that in order for the organisation to restore their finances and maintain their universal service, they would need to increase their prices to stay competitive.

The Government back the Royal Mail’s decision, as they look to protect the UK institution. The decision for the increase follows the regulator Ofcom’s decision to allow the Royal Mail freedom to set their own prices.

Whilst the price increases are still relatively cheap in comparison with the rest of Europe, for example after the price rise, 2nd class stamps will still be the cheapest and 1st class stamps will be the 5th cheapest across Europe, families, businesses and consumer groups are still outraged. Consumer groups believe that the Royal Mail couldn’t simply rely on price rises to turn around its fortunes.

But what about the public and businesses who rely on the Royal Mail’s service? Well unfortunately, it’s yet another price rise that is increasing the financial burden on many up and down the UK. When you consider the sheer price hike that families have had to endure, such as fuel, bills, as well as the price of food, then you can see why many people aren’t exactly over the moon at this decision.

However, it appears that the Royal Mail have acknowledged the difficulties that many UK families may be suffering at the present time, which is why they’ve developed a ‘Christmas scheme’. This will allow families on low incomes, those on pension credits as well as those seeking employment and support allowance or incapacity benefits to be able to buy up to three books of 12 stamps at the 2011 prices.

Given the current state of the UK economy it appears this price rise will come at the wrong time for many in the UK. Whilst for the Royal Mail it isn’t serving their public image any good, they appear to have their hands tied as they too look to survive these uncertain economic times.

July 25, 2013

Save money by reclaiming mis-sold PPI

Filed under: insurance — Tags: — admin @ 11:55 am

Payment Protection Insurance was introduced to the financial services industry more than a decade ago as an aide for credit consumers. It was created to protect their debts from getting in arrears by covering a part of their repayment obligations in the event that they got sick for a long time, had an accident, or were made redundant at work, making them unable to earn and pay their dues. Unfortunately, the horrors of having signed up to PPI appeared when the mis-selling scandal was discovered. Millions of consumers were shocked to have realised they were deceived only to buy a policy that was useless and only put their financial status in a risky situation.

If you were one of these people who have been subjected to the PPI mis-selling scam, you most likely have the chance to save money by reclaiming your Payment Protection Insurance payments. PPI claims can be made by people on their own or through the assistance of experts and advisers.

To get things started you may need to find out first if you have PPI alongside any of your credit agreements with the bank. To do this, check your statements and your account documents for PPI indicators. The paperwork would specify charges for such and the policy certificate would state how long since you’ve had it. It is important that you have kept these documents safe as they could serve as strong evidence to your claim.

Once you have the paperwork ready, write to your bank about the mis-selling for them review. Normally, a legitimate sale of Payment Protection Insurance would have to have you informed of the following:

PPI is optional. It doesn’t come as a compulsory insurance with any finance agreement.

The insurance costs should have been clearly explained.

The full cover should have been itemised for you.

Pre-existing medical conditions are not covered.

Individuals below 18 and over 65 are not eligible for insurance cover.

Self-employed, employed in a family business, retired, and nearly-retired individuals are not covered by the policy.

Students are not covered by the insurance.

If these were not discussed thoroughly with you, then there was something wrong in the way you were made to buy PPI.

When the bank receives your reclaim letter, they will investigate the case in a matter of 6 to 8 weeks. It may take longer of you have not attached a sufficient amount of evidence or there were not enough available information for them to refer to. Remember that banks can only store account details in their database for as long as six years following the activation of your account or the date of the last payment made to the debt. This is why paperwork is very necessary to weigh how valid your PPI claim is.

The bank will let you know of their decision after such time and if valid, they’ll arrange for compensation immediately. However, if they decided otherwise, or you have not heard from them at all, you can take the matter up to the Financial Ombudsman Service who will take over the review to find out what went on at the bank. The Ombudsman will contact your lender and make further enquiries. You may also be asked to send in additional documents and information about your claim.

As soon as they have decided to uphold your claim, the bank will be required to give you a full refund of the PPI payments you made, plus the interest it has gathered from the start.

So, if you have every reason to believe that you were a victim of the PPI mis-selling scandal, do not hesitate to make an action to clarify and resolve it for your (financial situation’s) sake. A lot of consumers have been successful at making PPI claims and you should not be letting this chance pass up just like that.


July 8, 2013

Debt Management – Avoid Bankruptcy With Debt Management and IVA Services

Filed under: Tips — Tags: — admin @ 4:22 pm

For many people across the UK, debt has become a huge burden, particularly over recent years where households have had to cope with the increasingly difficult economic climate with many UK residents now turning to debt management as a form of debt relief. The huge personal debt mountain in the UK reflects the problems that people are now experiencing with their personal debt levels and for many their debt problems have reached a point where they can no longer cope and require debt help and debt advice from specialists.

Anyone that is experiencing difficulties when it comes to keeping on top of debts payments is strongly urged to get debt advice or take steps to resolve the situation before things get any worse. These problems can arise for one of a range of reasons. Many people that are now struggling with their debts did not have a problem when they first took out the finance. However, factors such as unemployment, pay freezes, government cutbacks, and soaring living costs have all taken their toll on the average household budget, and suddenly repaying debt has become a lot more difficult than it was in the past.

Debt Help

With debt issues become more and more common, access to debt related advice has become easier and easier. The high level of demand for advice relating to dealing with debt means that you will now be able to access a number of charities and debt management agencies that are equipped to offer advice, assistance, and solutions for those experiencing problems.

Getting debt help and advice as early as possible is strongly advised so that your problems do not spiral out of control. Debt management companies and charities can offer a range of debt advice and solutions that can provide debt relief and help you to get out of debt more quickly. By taking advice you can reduce the stress that you are experiencing over your debts, stop debt collectors who may be hassling you, avoid court action, and even become debt free more quickly.

Debt Management Companies

Debt management plans are also an option that may be considered, where the advisor will speak to your creditors and set up a plan where you make one lower monthly payment to cover all of your debt repayments. Your creditors will be paid a portion of your monthly payment on a pro-rata basis by the debt management company.

Debt Management Plan

These debt management companies will arrange your debt management plan and will deal directly with your creditors, relieving you from the stress of those debt collection calls. They will also negotiate directly with them to try and cut the amount that you owe and build your debt management plan, one that you can keep up payments with while still living a decent standard of life.

Debt consolidation to reduce your debt problems

There are a number of possible solutions that can help to reduce your debt related stress and worries. Some solutions you can implement yourself without the need to speak to a debt agency or charity, such as debt consolidation. This is where you take out a larger loan to cover a lot of smaller debts such as credit card debt, loans, and other unsecured debts.

Debt Consolidation Loan Drawbacks

Of course, you need to have pretty decent credit in order to get a debt consolidation loan, so this may not be the ideal solution for everyone. Also, with debt consolidation you are merely increasing the size of your overall debt over a longer period. This may seem attractive to some but using debt consolidation will actually cost you more money over the length of the loan. Here are, we can offer you IVA services and a fully personalised debt management plan.

Other solutions can include things such as Debt Relief Orders, Individual Voluntary Arrangements, debt management and even bankruptcy, which may all be considered for severe debt problems where there is no other option available. Debt charities and advisors are able to offer more information on these options, can determine which one is going to best suit you based on your needs and circumstances, and can get the ball rolling for you.

Why take action early on your debt problems?

It can be difficult to see the light at the end of the tunnel when you have serious debt problems that are getting worse and worse as time goes on. If you simply bury your head in the sand and don’t take advantage of the available debt solutions, hoping that it will go away you could find yourself facing serious issues. You could end up with County Court Judgments, default notices, very bad credit, and you could find that your debts are getting bigger because of the range of fees and charges that may be applied. Taking action as early as possible by setting up your debt management plan will help you to avoid many of these problems as well as reducing the severe stress that you are most likely experiencing as a result of your debt.


June 3, 2013

Credit Card Debt Management

Filed under: Credit Card — Tags: — admin @ 8:29 pm

If you are looking for ways to manage your credit card debt and get your finances back in order, you should understand a few things about how credit works. Credit is not something that you just use to delay making payments, or because you think that the lower monthly payments means less money out of your pocket. Credit card debt management needs to be taken seriously and understood properly so that you can get rid of your debts.

Credit Card Debt Management Strategies

Pay More Than The Minimum

If you are able to do so, pay off more than the minimum amount that you owe on your credit card. Better yet, try to pay the full balance off before the end of the 30 day billing cycle. Doing so allows you to avoid paying interest on the things that you charge and allows you to not have to worry about making a payment each month because the bill is already paid in full. Even if you cannot pay off the full balance, paying more than the minimum reduces your balance and allows you to get ahead on your debt.

Lower Interest Rates Mean You Win

The easiest way to keep your credit card debt under control is to get a card with the lowest interest rate. Try going to a credit union as opposed to a bank, or a store credit card. You will usually get a lower interest rate on the card. You might not get the balance that you would like, but at least you won’t have a higher bill each month than you can afford. If you find that your interest rate is too high for your tastes, you can always transfer your balances to a lower interest credit card if you are eligible to do so. Debt consolidation can get you a lower interest rate, and put all of your credit balances into one payment and make it easier to pay off.

Pay Down The Highest Interest Card First

Take all of your cards and determine which one has the highest interest rate. Pay down that card first and get rid of the most expensive payment you have each month. As you pay down the balance on your first card, you can start paying more attention to your other cards because you will have more money each month to pay off your other balances. You can keep your payment the same, but change how much you allocate to each card each month as your balances and interest charges get to be lower and lower. This works really well no matter how many cards you have.

If you are looking for ways to pay down your debt, the best way is to list your debts, figure out how much you can afford to pay each month and then just pay the debts as they come due. There is nothing else you can do and no magic formula. The easiest way to manage your debts is to simply face the fact that you have bills to pay and pay them off as best you can in the least amount of time.

Finally, you could also look for some kind of credit card debt management program to with a for profit or non-profit company in order to help you with your needs.

May 22, 2013

A Guide to Secured Loans

Filed under: Finance — Tags: — admin @ 11:49 am

A Secured Loan is any loan that requires the borrower to present the lender with some type of collateral or “security”. With Secured Loans, the security will be the borrower’s property, whether it is mortgaged, remortgaged or fully owned. Loans secured against a property that has already been mortgaged are known as “second charges”, and loans secured against a property fully owned without an existing prior mortgage are deemed as “first charges”.

Secured Loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount.

Secured Home Owner Loans are available in varying amounts with a variety of different purposes. The amount available usually ranges from £5,000 to over £75,000. When you receive a Secured Loan, the repayments are made monthly over a period agreed in the beginning between you and your lender, which is generally between three years and twenty five years. There can even be a rebate for early settlement of your loan, depending on your criteria.

Which Loan Should I Choose?

Usually, Secured Loans are easier to obtain than unsecured loans. Because the lender has the ability to use your home as security, they will regard a secured loan as “lower risk”, if ever the inability to make repayment. In addition, those who are self-employed, have adverse credit, ccj’s, or recently changed jobs can easily take out a loan. A Secured Loan offers you the ability to borrow larger amounts or request a longer repayment period.

An Unsecured Loan is called such because the lender doesn’t require the security of your home for the loan. You will usually be offered an interest rate or APR based upon your circumstances and the amount you would like to borrow. Depending on the lender, you may not be able to use your Unsecured Loan for certain purposes such as business or speculative reasons. Typically, with an unsecured loan you may not be offered as large an amount as a Secured Loan, and the APR may be higher. Simply ask one of our friendly lending representatives the conditions of your Unsecured Loan

March 5, 2013

Overview Of Financial Management Services

Filed under: Finance — Tags: — admin @ 4:51 pm

Most of the people are showing much interest to understand finance nowadays. Since finance become the most essential one and then wherever you go, whatever you do always you must have the art of financial management. Making of money is become as an evolution of art then more and more people are started to join the race in the best way.  There is also chance for you to revolve as an efficient money maker by understanding concepts of finance. Individuals, who like to achieve their goal in financial market, should be well aware of new trends of the stock market and financial values.

Apart from knowing the performance and growth of various stocks, understanding the volatility of stock market, knowing the cost of each stock is the mandatory one. You should also know the various financial terms that are being associated with the financial transactions so that you can be very clear with the transaction processes. If you need the help from the online stock broker or friend to know some details about the stock trends and stock values then you can get some guidance from them without any hesitation.

The financial management processes, their terms and their exact meanings can be understands clearly by reading various financial concepts. The most important one in the stock market is that the investor’s should not be advisable to get discouraged for all the times. Individual with the knowledge of financial trading and stock exchange can achieve his goal in share market very easily.

February 21, 2013

Role of Financial Advisor In Business

Filed under: Finance — Tags: — admin @ 4:52 pm

Once you are wondering much about how to manage your various financial needs? No problem getting help from any of the financial advisor would solve any kind of financial worries in your life. There are many financial advisors being available in this global world to assist the people who are in need of some financial help. You can find many businessmen will feel difficulty to achieve gain in the stock market due to lack of some assistance from the financial advisor. If you are business men and you plan to upgrade your business then you surely need various kinds of financial helps either from bank or from any of the high standard finance company.

Identifying the best financial group to get assistance for them for your business is the better idea for any businessmen. There are many world famous finance group being found around the world where the businessmen should identify the right one of their own.  The finance groups should never hesitate to assist both the businessmen and families. Before approaching any of the finance company it is better to do some researches on such finance group to check whether it can be trustable one for all your business needs.

Nowadays owing to the competitiveness between most of the finance industry in market you can find many financial services provide lot services and offers to their customers to attract the new ones too. Searching for the perfect financial group, the internet can be the right source. With the help of online you can get lot of financial groups which provides various services with great offers.

January 27, 2013

Should I take out PPI?

Filed under: insurance — Tags: — admin @ 12:12 am

Whether you should take out payment protection insurance can be a more difficult solution than it may seem. You may think that all PPI is bad and it should never be considered. It is not surprising that people do have this attitude in light of all the PPI scandal and PPI claims that are being made at the moment. However, they are not happening because there is something wrong with PPI but only the way that it was sold.

So if you have any sort of a loan, then you should consider whether you want to take out payment protection insurance. You should consider whether you would like to cover the risk of not being able to make your repayments. The policies do vary so you need to think if you want help if you are unwell, can’t work or whatever and make sure that the policy covers you for this.

It is worth considering how much the policy will cost you for the duration of the loan. Think about how much money you will spend in total and decide whether you think that this will be worth it. It is worth considering what else you could spend that money on as well as the likelihood that you would need to make a claim. Some people like the peace of mind that it gives them and would rather pay the money for that. Others are happy to take the risk, perhaps because they have savings they could use to cover the repayments or another income coming in to the household which would help.

Each person is different in how secure they feel and how much risk they want to take. It will also depend on the loan. If it is a mortgage and your house will be repossessed if you cannot keep up repayments due to losing a job, then you could be left with nowhere to live. However, you may feel you have enough money to cover a few months, you feel the bank would be happy to negotiate a few payment holidays and you have another income to help out with the household bills. However, if you are solely responsible, have family living in the house and no savings, then the idea of having the house taken away could be a lot more scary.

So it is worth thinking about your own personal circumstances when considering PPI rather than worrying about things that have happened to other people in the past.

Older Posts »

Powered by WordPress