Better For Some, Worse For Others

Best Home For Your Savings

As Personal Debt Shrinks for Some, Others Face Crisis The way people spend money reveals a great deal about their financial attitudes. And if the recent uptick in consumer spending is any indication, UK shoppers are feeling pretty good about the economic recovery. But economic trends send mixed signals, so it makes sense to consider the big picture before jumping to conclusions. And though positive economic activity is good, by most measures, spending driven by debt is unsustainable. As many borrowers found out in 2008, taking-on too much debt leads to catastrophic outcomes. And though stop gap measures have been fortified within the mortgage industry, a new wave of debt is showing up, … [Read more...]

Payday Mugging

Payday Mugging

Payday Mugging No one wants to be the victim of a mugging. We’re all shocked when something like this happens in our neighbourhood. There is outrage on the news, and column inches written in the press. My last post about how taking out a short term payday loan can have a long term negative impact on your credit rating made me realise that payday loans are nothing but a legalised financial payday mugging. So rather than being a payday mug – I think it’s right that this post should be about the alternatives to taking out a payday loan. Reading about students using payday loans to buy concert tickets, without realising the damage they are doing to their long term financial prospects, … [Read more...]

Payday Pain

pay day loan

Fancy some payday pain?   It seems as though taking out a payday loan can have long term repercussions on your personal finances. As well as having to pay eye wateringly high short term interest rates ( the highest I've seen is over 1750%pa) it seems as though there is now a long term sting in the tail for those desperate enough to fall for the marketing charms of the payday loan companies. Recently released mortgage application data in the UK shows that highly paid professionals such as lawyers, company bosses and other young professionals are having mortgage applications turned down because they have in the past taken out payday loans. Wow! It appears as though … [Read more...]

Cutting Your Costs

Cutting Your Costs

After sitting down and drawing up a spending plan, cutting your costs is the next step on the road towards financial freedom. Take a good long hard look at your spending plan / budget – especially the big ticket items like your mortgage, insurances and domestic utilities. These large expenses are where you should concentrate your energy because these are the areas where you have the opportunity to make the biggest savings. When was the last time you reviewed these high ticket items? Check your credit report to ensure that there are no mistakes which might be costing you thousands – if your credit score is impaired – it can affect your ability to borrow at reasonable rates. Cutting … [Read more...]

Improving My Credit Score – The 75% Rule

Improving My Credit Score -The 75% Rule. After speaking to a customer service representative at Experian, I've been told that reducing outstanding credit balances to less than 75% of my credit limit will make significant improvements to my credit score. Traditional debt reduction techniques tell us to pay off the card with the highest monthly interest rate first, and then start paying off the next highest. This is sound advice. However, in my particular circumstances I want to get as much of my outstanding credit onto 0% deals as possible. But seeing as though my credit rating is so low - no lenders are prepared to take me on. So I have a choice - pay down the card with the highest … [Read more...]