There are many things that households can do to beat the credit crunch. Let’s look a few of them.

One woman, English teacher Kath Kelly (admittedly after a drunken bet) lived off just £1 a day for an entire year! She collected dropped change on the street, gave up her mobile phone and went to open lectures at Bristol University and ate the free buffets. She went into grocers and butchers at the close of business and picked up cheap food and shopped at jumble sales. Not only that, but she managed to hitch hike to her brothers house in France for a holiday in the middle of it all! She has a book out called “How I lived on just a pound a day”, published by Redcliffe at £6.99….or one week’s income.

Use cash back sites

Many sites will allow you to claim back some of the commission they receive. These are referred to as cashback sites. Some of the savings can be substantial so if you are making any online purchases, check with them first to see if you can get a better deal. Just Google UK cash back sites for a wide choice.

Drive a hybrid

We all have to make journeys of some description so how about turning in that expensive car for a nice economical hybrid? The cost of a hybrid will soon be offset by the substantially lower running costs, including reduced road tax!

Use a fuel search website

Search http://www.petrolprices.com/ any time you need to fill up and arrange a journey to get you close to the petrol station in question. Don’t under estimate the amount of money you can save over a year by using this type of website.

Get a cash back credit card

With Christmas coming, why not get a credit card that offers cashback? There are plenty of them about and they only need a little research. Some pay as much as 5% cashback and at Christmas when you could spend thousands, why not get the cashback and give yourself a nice little.

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Tags: Cash Back, Christmas Spending, Credit Crunch, Fuel, Fuel Costs, Hybrid, Kath Kelly, Petrol, Road Tax, UK Credit Cards

The lending business has come a long way from the days of illegal loan sharks and shady business transactions. In fact, taking a loan has become a common and beneficial financial choice for thousands of people around the UK. These people, like you, are looking for some financial assistance to help them get through a difficult time or achieve their life’s goals.

Looking Back on Lending

Of course, no one can really say where the history of lending began. It is likely that people have been creating loans for as long as there has been the concept of ownership. Yet, the official history of loans has been documented for at least several thousand years; forms of creating loans were evident in ancient Greek and Roman times, and monetary loans are even mentioned in the Bible.

One of the earliest forms of lending is the indentured loan (otherwise known as the “indentured servitude”). It was initially practiced in the Middle Ages and throughout the 19th century. Indentured servitude allowed poor individuals to borrow the money they needed for expenses such as travel and real estate. The money was usually borrowed from a wealthy individual, such as a land owner, and the borrower would have to work off their debt over the course of several years.

Unfortunately and predictably, many land owners were dishonest and would greatly inflate the debt or would continue to add provisions to the debt long after it had been repaid.

The Advent of Banks

It eventually became very clear that dishonesty in indentured servitude was becoming a rampant and a growing problem. As an alternative, individuals known as “moneylenders” became an important part of money lending and loans. In fact, it is from these moneylenders that today, people use the terms “bank” and “bankrupt”.

These moneylenders, who were initially Italian, would set up benches in the local marketplace or “banca”, known as bank in English, and would charge interest on their loans at a rate that they set. Sometimes these moneylenders would become successful and very wealthy. However, those who did not become wealthy and left the business became known as “banca rupta”, or in English “bankrupt”.

Modern Loans: The Evolution

Fortunately, things have come a long way since those marketplaces in Italy. The business has become more refined and respected – and most importantly – fair to its customers. Interest rates are much more controlled, and detailed regulations must be met. The modern banks, finance companies, and online lenders that provide loans to the public and private sectors provide a great service to the world economy.

Today, lending has never been easier and simpler. No longer are people financially wasted by taking out a loan – loans can actually help build wealth. Best of all, you won’t be put to work on a wealthy landowners’ farm to work for several years! Lending has sure come a long way.

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Tags: Bank, Banking, Current Account, Loans, Money Management, UK Credit Cards

Legal advocates and many institutions are imploring people to be wary of situations in which their personal information can be stolen. When details about your life, your identification, and your financial situation fall into the wrong hands, they can lead to you becoming a victim of identity theft. This is a very serious concern, which costs individuals, businesses, and the government a great deal of money and time.

There are several ways that we are all encouraged to protect ourselves and prevent identity theft from occurring. Here are a few of the easiest protection habits that you can implement:

• Never share your personal information with anyone outside the relevant institutions. This means not giving out your banking codes and asking for confirmation whenever someone asks you for such details.
• Securely destroy old documents. Identity thieves are not above looking through the trash – in fact, it is one of the best places for them to mine information. A few scraps of paper, each with a different bit of information on them, can quickly lead to a stolen identity when they fall into the wrong hands. Instead of simply tossing old documents, use a shredder.
• Be safe when using the internet. The internet is becoming a quick favourite with identity thieves. Phishing scams, stolen passwords, and other hacker activities can lead to the theft of your personal information. Protect yourself by installing the latest version of antivirus and be wary of sites that ask for too much information.

By following these simple strategies, you are making strong strides toward protecting yourself and ensuring that you never become a victim of identity theft. Unfortunately, even the most vigilant can be victims of bad luck or poor timing.

For example, in a major recent event the Child Benefit Agency lost the personal details of every parent who receives child benefit. This information included their names, addresses, dates of birth, national insurance numbers, child benefit numbers, and bank account information. This is a substantial amount of very sensitive data and this catastrophe has put about 25 million people at severe risk of identity fraud.

Unfortunately, situations like these undermine the public’s faith in the institutions they are meant to trust. In a recent survey by Canvasse Opinion over 30 per cent of respondents states that they did not trust the government to safeguard their personal information.

Yet, this information must be shared with at least some institutions. This is why it is not only important that you make it difficult for identity thieves to get your information, but also that you monitor your personal information to identify any security breeches.

The following are some ways to identify a personal identity theft issue quickly. You can use these strategies any time that you have reason to suspect that you are at risk, or simply make them part of your regular routine to reassure yourself that your identity is safe.

1. Monitor your bank account. When you receive your bank statement, you should take the time to look at more than just your closing balance. Review the statement a little more carefully and watch for any unfamiliar transactions. Remember, identity thieves can be very smart and sneaky in the way that they steal your information and your money.

2. Review your credit report. With the right information, an identity thief can apply for loans, obtain credit cards, or even mortgage a home in your name. This information can also allow them to purchase credit-based services such as mobile telephones and catalogue accounts. Unfortunately, unless the bill collector comes directly to you, these activities can go on for a long time without your knowledge. A quick review of your credit report will confirm the types of loans that you have secured and also the ones that have been applied for recently. By reviewing this document, you will be able to identify any problems quickly and make quick steps to fix them.

3. Change your bank and credit card account passwords regularly. You should already create account passwords that are difficult to break (they should not be personal ones, such as your child’s name, or easy to figure out numbers like sequences). Yet, this is not quite going far enough; you should also schedule yourself to change your passwords regularly.

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Tags: Bank, Banking, Current Account, Identity Theft, Money Management, UK Credit Cards

The APACS is responsible for bank clearing in Britain. It is this institution that ensures that when you deposit a cheque into your account, the money will be moved from the cheque’s account to yours.

Who is the APACS?

The APACS is a trade association in the UK that represents 31 members and 97% of the total UK payments market. This organization forecasts payment trends, completes market research, and lobbies on behalf of the industry. It is this association’s self-proclaimed mission to ensure that the “UK payments industry operates to the highest international standards and that payments are safe, reliable, and resilient”.

How long does a cheque clearing take

Given the amount of information that must be processed, this is a very quick system. Especially when we consider the care that must be paid to ensure that the right accounts are debited and credited. Here is a brief outline of how the process works.

Day 1 - You deposit a cheque into your bank account. That same day, your bank will process the account and the cheque’s details will be registered at its home bank.

Day 2 - Your bank will deliver the cheque to an APACS exchange centre and the cheques home bank will come retrieve it.

Day 3 – The cheque’s home bank will remove the paid amount from the account (if enough is there) and pay that amount to your bank. If there is not enough money to pay the cheque’s value then the cheque will bounce.

Day 4 - The cheque will clear your account, meaning that your bank has received the money on your behalf.

Bouncing Cheques

This system has been designed to ensure that the bank can actually collect the money for you. Although it is estimated that 99% of cheques that are written do clear, the 1% of bounced cheques does add up. In fact, some estimates suggest that there are tens of thousands of bounced cheques every day in Britain’s banking system.

Internet Accounts

Internet accounts are able to share information at a much more rapid pace, not having to rely on the physical transfer of paper information. For this reason, internet and phone transactions are often quicker to clear, meaning that you receive confirmation of your payments and deposits quicker.

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Tags: APACS, Bank, Banking, Cheques, Money Management

Bank charges are specific fees set by the bank, when you fail to follow the agreed terms of the bank. When you approach any bank to open an account or apply for a credit card, you have to enter into an agreement and abide by that bank’s rules. In UK, bank charges are also called as penalty charges. Some of the reasons for penalty charges include:

1. Cheque Bounce
2. Exceeding the limit of credit card
3. Direct debit, which exceeds the overdraft limit
4. Failing to pay bare minimal payment on the credit card

However, bank charges have to reveal factual charges incurred by financial institutions.  A recent study depicted that, if your cheque gets bounced, some banks charge around £39 and £12 for missed payments on credit card and £28 each day, if your account does not have adequate balance.

These charges are far above the authorised charges that banks may charge you. If you are a victim of such unfair penalty charges or bank charges, then you can always fight your way to get the refund. It will involve taking legal action against the bank.

Procedure To Reclaim The Bank Charges:

1. Take out all your bank statements of past six years and see for any levied or penalty charges remarks. You cannot claim the bank charges that were charged before six years. You may obtain the past statements of last six years from the bank by writing letter to customer service section of the bank.
2. If your bank authorities tell that they will charge you for this information then state them clearly that as per Freedom of Information Act, you have the right to access the monetary information and this service is free.
3. Sum up the charges of past six years. If you think your bank has been unjust to you and has unduly charged you, then write a mail to bank demanding the repayment. Request the bank to repay the amount within 28 days and mention that if it fails to agree, then you will file a legal action against them.
4. Post this letter by register delivery to make sure that financial institution receives it. Send the letter to address of customer service section of the bank.
5. Bank will respond to it by either fulfilling your claim partly or fully or it may refuse to meet the claim entirely.
6. If the bank refuses to meet the claim or agrees to give only a percentage of your claim, directly move to court for some legal action.

Internet Court Service:

Visit any Internet court service, enter your information, and claim the amount. You will have to pay some fee to seek this service, but it will help you to obtain the claim.

Your case will be in court for hearing and bank will be obliged to defend their case. Next, if the bank decides refrains from defending the case, then it will have to pay the entire claim along with the court fees that you had incurred over the time.

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Tags: Accounts, Bank, Banking, Cheques, Current Account, Debt, Money Management, Savings, UK Credit Cards

The major use of credit cards is mainly for purchase of products and services. You may place an order either in person or from the comfort of your home. They are extremely beneficial, when it comes to drawing cash from bank or from any machine of cash point. When you compare credit cards, it is advisable you understand that each credit card has some unique terms and conditions.

You need to read the document carefully before you submit an application for credit card. Read the terms for knowing the interest rates, late payment charges and other hidden charges that may arise over period. It is best to collect brochures from banks for this work. Otherwise, you may even sit back and wait for e-mails, which credit card issuers normally drop to the e-mail addresses of people.

Significance:

Search online as many online sites have tables that list different credit card issuers, names of credit cards and their yearly rates of percentage besides other features. This way you get to narrow your search criteria and have the opportunity to search for features that appeal to you the most. When comparing credit cards online, consider the Annual Percentage Rate (APR), credit card issuers highlight the APR in different ways.

It is necessary for the card issuers to provide you with standard information on credit cards available, so it is possible for you to compare them easily. Many a time, these comparison websites do offer factual rates of APR. Next step is to compare the overall APR. If you do not plan to pay off the credit card dues on monthly basis, then the long-term plan shows the monthly repayments you are likely to incur.

While comparing credit cards, it is better to look for the incentive programs offered by the credit card issuer. Most credit card issuers offer you to donate part of the spending or a lump sum amount to charity. Other issuers may even reward you by way of cash back points or cash back. They may even allow the credit card holder to accumulate few air miles. You need to think over your way of leading life and the required credit card, while you opt to go for any such reward credit card program.

It is even necessary to check if the credit card you intend to purchase comes with annual fees. Many credit card issuers charge exorbitant fees over the use of credit cards. Additionally, look for the deals on balance transfers. However, here too be cautious of the fees you might be paying for the use of credit card.

Overview:

To choose a right credit card is all about balancing the incentives you receive over a period with the rate of interest. For making an online comparison for credit cards, you have the chance to come across the right credit card, which addresses all your financial needs. You may even find a credit card with inscription of your favourite football club. Hence, online comparison of credit cards is a fine option as compared to visiting banks in person.

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Tags: Bank, Banking, Current Account, Debt, Money Management, UK Credit Cards

Since, last few years there has been a tremendous increase in cases of identity thefts in the United Kingdom. However, with identity theft insurance, it is now possible to protect yourself from such type of intrusion. Identity theft insurance will help you to resolve any doubtful activities, thereby giving you a mental harmony.

In case you become a victim of identity theft, your insurance company will help with the potential problems that may arise and assist you in bringing the financial life again on the track

What Does It Include?

Identity theft insurance covers all the expenses, which you will have to incur, if some one steals your identity. It includes bearing the entire legal cost for defending the criminal charges connected with the identity theft, lost wages (in case you need time to reclaim the identity), cost of telephone calls, redundant loan application charges and so on. Next, if you do not possess identity theft insurance, then you will have to bear all these expenses on your own. Therefore, it becomes very important to have such an insurance policy.

Several financial institutions offer identity theft insurance. To obtain such insurance, you will be required to pay annual fees or monthly fees through direct debit. Most policies cost around £ 3.75 to £ 6.99 each month or £ 45 to £ 84 each year. The insurance company then access your credit report and notifies you by sending alerts, if they come across any changes made to the credit report. Thus, if you have not applied for a loan and your credit report shows the loan details, or if changes occur in the bank account, then insurance company will immediately contact you and will lend a helping hand.

Although, identity theft insurance offers good value, there are typical criticisms about the same, which includes:

1. Identity theft insurance policies give the customers a false sense of protection, as they do not do anything to prevent the identity theft at first sight.
2. These policies do not offer full coverage to the victim. For instance, you may have to incur other expenses such as travel cost, stationery cost, phone bills and so on.
3. At times, you may find it troublesome to claim the amount
4. Some policies do not provide you with legal fees
5. Many policies may not give you lost wages

However, it is always better to shield yourself from the perils rather than regretting later.

Overview:

If you cannot afford to cope up with the money loss, if you lose your credit cards or debit cards and do not know as what to do, having identity theft insurance will be really worth at such times. To obtain the policy, simply contact the insurance provider and obtain details of policies offered by different companies and choose the company, which offers good services and help you with recovering the loss in an easy and quick way.
Thus, although, the cost of having identity theft insurance seems affordable, the benefits it offers are quite limited

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Tags: Accounts, Bank, Banking, Current Account, Debt, Identity Theft, Insurance, Money Management, Pre Pay, Savings, UK Credit Cards

Pre pay credit card is an alternative to credit card and debit card. Here, you need to load the pre pay card with any specific amount and then use it to make purchases or pay the bills.

There are certain costs attached with pre pay cards. Moreover, several financial companies have introduced their pre pay cards and the cost of cards also varies from one company to other. You need to consider the cost on pre pay credit cards before planning to choose the right type of card according to your needs. The cost that pre pay cards carry is segregated as below:

Loading fees: Some companies charge certain amount of fee each time you load money in your card, while some may not.

Upfront fees: When you visit any financial company to buy a pre pay card you will be required to pay the upfront fees. The upfront fees may also vary from company to company. For instance, the upfront fee of Post Office travel card in UK is £10 and that of Splash card is £ 6.99.

Other Costs Involved:

Monthly fees: Pre Pay cards also carry monthly fees or maintenance fees. The monthly fee of Cash Plus pre pay card is £ 4.95 and in case of a 360-money card, and £ 1.99(for premium card).

Transaction fees: Whenever you use the card, the company deducts certain amount from your card. It may depend on the percentage of total amount that you spent or flat rate (flat rate is the sum, which remains constant regardless of the amount that you spent). For instance, the transaction fees on Western Union Travel pre pay card is £ 1 for every transaction.

Next, the loading charges also depend on the amount that you credited in the card. Pre Pay cards such as Bluecorner will charge you £ 1 to load amount between £ 20 to £ 30. The loading charges may rise to £ 3 in case you credit above £ 100.

If using ATM: In case, you intend to use ATM, then pre pay card issuers will charge you with certain amount every time you withdraw amount from an ATM outlet.

Using Foreign exchange: If you wish to use a UK pre pay card overseas, then you will be charged with specific sum. It may be around 2.75% or 4% depending on your transaction amount. If you are using a travel pre pay card such as eorozone in your own home country, then you will not be charged according to foreign exchange.

Overview:

Sometimes, using pre pay cards can be more expensive than using credit cards or debit cards. However, the biggest benefit of such cards is that you cannot fall into debt. These cards are ideal for students or travellers, who cannot open a bank account immediately in UK.
Thus, in short, the concept of this card is same as that of pay as you go phone. You can talk as long as there is sufficient balance in your phone and as your phone balance gets over you need to refill it to continue talking.

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Tags: Accounts, Bank, Banking, Current Account, Money Management, Pre Pay, Savings, UK Credit Cards