http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/finance/investing/isas-how-will-the-2008-9-changes-affect-you.html http://www.articletrader.com/finance/investing/isas-how-will-the-2008-9-changes-affect-you.html Wed, 08 Aug 2007 00:00:00 -0500
In 1999, the government introduced Individual Savings Accounts (ISAs) for an initial period of ten years. So successful have these tax-efficient saving schemes proven - over 17 million people have invested in an ISA (double the number of people who ever invested in a Tessa or PEP) - that the government has now confirmed that ISAs will be made available indefinitely. It has also agreed several reforms to the ISA scheme that may impact your saving decisions in the 2008/9 financial year.

If you have invested in an ISA before today, or you have thought about it, you may have been a little confused by the options available to you. For example, you could opt for either one or two Mini ISAs, or one Maxi ISA. The Mini ISA enabled investors to put up to £3,000 into a cash ISA and up to £4,000 into a stocks and shares ISA (investors could choose to split these between two providers or just keep both with the one provider).You could also just choose one Mini ISA, either a cash OR stocks and shares ISA. Alternatively, a Maxi ISA would allow you to invest the full £7,000, with it all going into shares. Confused? Not surprising.

No investor could have both a Mini and a Maxi ISA, however, meaning that investment limits were capped at £7,000, no matter what option investors chose. The government has recently confirmed, however, that from 2008 onwards, not only will the ISA scheme continue indefinitely, but the model will also be simplified. The key changes are as follows:

* From 6th April 2008, the ISA limit will rise to £7,200, from the current £7,000. Up to £3,600 of this can be saved as cash and the balance, or all of the £7,200, can go into a stocks and shares ISA. The oft-confusing distinction between Mini and Maxi ISAs will be abolished, with accounts being re-designated as "cash accounts" and "stocks and shares accounts".
* Personal Equity Plans (PEPs) will cease to exist from 6th April 2008. If you hold a PEP already, you will be able to transfer the PEP into an existing or new stocks and shares ISA.
* To encourage investment in shares, you will also be able to transfer your existing cash ISAs into a stocks and shares ISA and it will not count against the year's ISA savings allowance.
* Money held in child trust fund (CTF) accounts will be able to roll over into an ISA once the child reaches 18.

These changes should make it easier for you to understand and make the most of your options, while giving you plenty more time to benefit from the ISA model for years to come. The rise to £7,200 has been welcomed by many commentators, although the possible cash ISA increase to £3,600 has in fact resulted in a fall in the amount that can be invested in stocks and shares ISAs from £4,000 to £3,600. However, observers hope that the government will further increase the ISA limit in future as the current 3% rise represents a fairly insignificant increase for nine successful years of ISA investment.

Why ISAs?
The ISA is quite simply a saving scheme that gives you significant tax savings. Any money accrued within an ISA is free of either income tax or capital gains tax - which means that you can accrue far more interest than on other tax-payable savings schemes. The cash ISA is a simple cash savings account, which works much like any other bank or building society scheme, except for also being tax free. Cash ISAs are useful for saving money to gain interest, avoid tax and have easy access to your savings at relatively short notice. The stocks and shares ISAs, however, are more suited for those who want to make a more long-term investment in the stock market. But do remember that past performance is not a guide to future returns and the value of investments and the income from them can go down as well as up.

Although April 2008 may still seem a long way away, it is never too early to look at your savings portfolio and start making some decisions about your short and long-term future. After all, in years to come, you may look at your carefully saved pot of cash and thank yourself for thinking ahead.


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Caroline Poynton is a financial journalist and writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/saving-money-on-personal-loans.html http://www.articletrader.com/finance/loans/saving-money-on-personal-loans.html Wed, 08 Aug 2007 00:00:00 -0500
Whatever your motivation, such purchases/investments often require the support of a loan so that you can spread the cost over time. And there's nothing wrong with debt in itself - companies borrow, our government borrows - you just need to ensure you can afford to finance your debt. There's nothing worse than signing up for a loan that will typically have a one to five-year repayment period, only to discover you can barely afford the first repayment.

"Taking out a loan could be sensible for all sorts of reasons - from consolidating existing debts, to buying a car or making home improvements," said Nick Tsimbidaros, Marketing Director at BeatThatQuote.com. "But loans can also be expensive - you need to seek out the best rate and carefully assess your own budget to ensure you can afford the long-term cost."

BeatThatQuote.com compares numerous loan providers and by asking you just a few questions about your circumstances, can give you a market comparison of possible loans that might suit you. However, you should also have a think about your available budget and what kind of loan would give you the best security and peace of mind.

Interest and repayment periods
Most loans will be advertised alongside an annual percentage rate (APR). This is the interest that you will be charged over the lifetime of the loan. When you are looking for a loan, you should compare the available APRs and don't forget to look at a variety of providers - supermarkets and online companies often offer more favourable APRs, which can sometimes be cheaper than the traditional banks/building societies.

If you are worried about the cost of a loan, just by comparing APR rates, you might also be able to get your potential loan provider to tell you what the total cost of your loan would be over the whole repayment period. This will help you directly compare the amount with your budget and other loan providers. In addition, as interest rates on loans are generally fixed for the whole repayment period, you should be able to see what your monthly repayments would be for the whole length of the loan. If you realise that the monthly repayments will seriously stretch your budget, be very careful. If your circumstances change, you do not want to be faced with repayments you can no longer afford - this is how debts quickly spiral out of control.

Also don't forget that spreading the cost of your loan may seem ideal - paying back £5,000 over five years, for example, may ensure you have low monthly payments that are far more manageable. But, the longer you spend paying a loan back, the more interest you will be charged. Decide how much you need, do not borrow more than you need, and pay it back as quickly as you can. Remember, however, that the quicker you pay back a loan, the higher your monthly payments will be. Just ensure you can afford the higher payments before you try to save money this way.

Short-term loans
If you only need a loan for a very short period of time - for example, six months to a year - you may be better off looking at credit-card deals. Many credit card providers now offer highly favourable introductory rates or 0% interest-free periods that could prove cheaper than a loan, if you plan to pay the balance off quickly. Again, BeatThatQuote.com can help you compare both loans and credit card deals so you can see which offering might suit you best.

Insurance
When you apply for a loan, you will probably be offered 'loan protection insurance'. This will cover your repayments should your circumstances change - for example, if you are made redundant or fall ill. Such cover can be expensive, however, and there will be exclusions that may make it difficult for you to claim. New rules, however, mean that any insurance costs must now be included in the APR, making it easier for you to compare loans that include insurance to those that don't.

Unsecured or secured?
A secured loan quite simply means that the debt is placed against your home - if you fail to make repayments, your home might be at risk. If you are highly confident of your repayment ability, then you may be able to get a cheaper interest rate by applying for a secured loan. But if you have any concerns whatsoever, you might be better off going for an unsecured loan. Yes, it might have a higher interest rate, but your home will be safe if you struggle to make repayments

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Caroline Poynton is a financial journalist and writes for Beat That Quote on all loans, mortgages and personal finance topics.


Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/ten-top-travel-tips.html http://www.articletrader.com/travel/ten-top-travel-tips.html Wed, 08 Aug 2007 00:00:00 -0500
Many a modern traveller now explores further afield, with Australasia, South America, Asia and Africa proving very popular for those with an adventurous spirit (who don't mind long plane journeys). But for any such trips, there are known - and unknown - dangers that you may want to research before you leave. Visit Australia and you'll probably be bombarded by people listing its dangerous creatures - box jellyfish, crocodiles, redback spiders, taipan snakes, sharks, and so on - together with a litany of tales surrounding those backpackers who never came back... But go to 'safe as houses, no dangerous animals/plants here' New Zealand and you may not realise that its capital city, Wellington, sits on a major earthquake fault line that is well overdue a 'big one'!

Indeed, in a Norwich Union survey of last year, several places were highlighted as potential danger areas, including Thailand, Mexico and South Africa, where illness, accidents and crime are common. Again, not terribly surprising, perhaps, but did you know that travellers to Mexico made the most number of claims to the insurance company for overexposure to the sun? Probably not.

The findings also mentioned the Caribbean as the worst area for travellers to suffer insect bites and stings, and even Spain and the Canaries hit the list, for possible robberies and pick pocketing.

Even if you deal with all the insects, robbers, earthquakes, illnesses, hungry sharks and venomous snakes, you may still get in your car and crash. In fact, the most likely way for holidaymakers to meet misfortune is on the road, with 15 million people a year injured worldwide in traffic-related accidents. Remember that terrifying taxi journey on the way to your hotel last year? Yes, most of us can recall at least one terrifying car journey in our search for that holiday magic.

But don't worry, BeatThatQuote.com is here to help address all your holiday concerns (both those that you knew about as well as the ones we've just got you worried about). With these travel tips, you can be sure you're making the right preparations for a safe and happy trip, no matter how adventurous you are feeling:

1. The Foreign & Commonwealth Office website is a great source of information on safe/dangerous destinations, as well as general travel advice. Well worth a look if you're planning to backpack round the world.
2. Do not forget or skimp on your travel insurance. Get travel insurance and check that the cover is appropriate for your destination and planned activities abroad. Also ensure it covers any health issues you might have. According to recent research, 15% of British people risk going abroad without any kind of travel insurance - considering an air ambulance from the east coast of the US might set you back £30,000, it is really a risk you don't want to take.
3. If you are planning to hire a car or you are taking your car with you, check you are covered for accidents and/or breakdowns. Don't assume your UK car insurance will cover you for driving overseas - it might not protect you for anything more than road traffic accidents.
4. Check what vaccinations you need at least six weeks before you go and consider whether you need to take extra health precautions. Ensure you have sufficient medical insurance cover for your chosen destination, especially if you have any pre-existing health conditions.
5. You will probably be leaving your home empty while you are away - ensure you have got/renewed your home insurance in the event of anything happening while you holiday. Also consider asking a neighbour to pop in/water the plants every now and again to ensure your house looks occupied.
6. Get a good guidebook and get to know your destination. Find out about local laws and customs.
7. Make sure you take all documentation with you, including your passport, necessary visas, and insurance documents. Make copies and store separately just in case you lose anything.
8. Check your bank cards. Do you know how much you will be charged for using your cards abroad? It might also be worth telling your bank or credit card provider about your trip. With fraud on the rise, some card providers/banks will stop your card if they see unusual/unexpected spending. A phonecall will remedy this situation but it's just another holiday 'downer' you can avoid.
9. Take enough money for your trip and some back-up funds, for example, travellers cheques, sterling or US dollars.
10. And if you're going for a long trip of several months or more, just don't forget your responsibilities at home, including your mortgage. Budget carefully and ensure you can cover all your payments both at home and abroad.

Once you have done all of this, all you need do is pack your bags and go. It might be a scary world out there, but with a bit of forethought, there's a whole lot of opportunity for adventure too. Have fun!


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Caroline Poynton is a financial journalist and writes for Beat That Quote on all loans, travel insurance and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/insurance/driving-abroad-are-you-covered.html http://www.articletrader.com/finance/insurance/driving-abroad-are-you-covered.html Wed, 08 Aug 2007 00:00:00 -0500
While many of us take pains to choose the right insurance for our homes and vehicles in the UK, there is far more confusion as to what happens when we travel abroad. Packing your car and driving into the sunset for, say, a road trip around Europe, may sound like an adventure of a lifetime. And there's no reason it shouldn't be - just ensure you check your insurance cover ahead of your trip. Like many drivers, you may assume, for example, that a UK car insurance policy will provide the same level of cover if you take your car abroad. In most cases, however, existing policies will only cover for basic road traffic accidents (RTAs) or at best, third party cover for overseas trips. This means you would not be covered for theft, fire or damage. Nor would you be covered for legal matters following a car accident.

You may also have heard of a 'Green Card' for driving abroad? This is an internationally recognised document, that proves you have the minimum insurance cover required by law in the country visited. The key word, however, is 'minimum' - the card does not provide insurance in itself and although it will provide useful evidence of your basic cover, you will still need to get further insurance cover if you want comprehensive protection.

Getting the same insurance cover you enjoy in the UK when travelling abroad is a simple enough process, however. You could just ask your existing insurer to extend the scope of your cover before you travel, if it is not already included in your policy. An additional premium may be charged for this extension and will depend on where you're travelling and for how long. Alternatively, this may be a good opportunity to check out the car insurance market generally - it's always worth ensuring you're getting the best deal especially if you're planning to frequently travel with your car. Also ask your chosen insurer about Green Cards - although you no longer need a Green Card in EU countries, it still provides useful evidence of basic insurance, and if you're travelling outside of the EU you will certainly need one. Your insurer should be able to help you obtain one.

Some insurers may offer what is known as 'Green Card cover' - as Green Cards in themselves are free (and do not provide insurance cover in themselves), this really means that you are paying for extending your UK insurance cover overseas. Whichever kind of cover you choose, though, and whether you take a Green Card or not, be sure to take your insurance documents with you, just so that you are prepared if you need to make a claim. And don't leave any such documents in your car - if you were to face a UK-style flood situation while abroad, your careful organisation and paperwork would be meeting a soggy end.

You may also want to consider your breakdown cover. You can purchase car breakdown policies with your holiday insurance or separately. Your motor insurer might also provide this cover. Such insurance might cover the cost of hiring a car while yours is being repaired, road-side assistance and emergency repairs, the cost of returning your car to the UK or sending out spare parts, and even emergency accommodation if you can't use your vehicle. Prices will vary depending on what level of cover you want or need, but whatever policy you choose it will be a great reassurance, especially if you are driving long distances.

The following general tips may also help you plan your driving trip of a lifetime:

* Get your vehicle serviced before you set off on your holidays and ensure you research and comply with any vehicle requirements in the countries you are visiting.
* Do not forget your motor insurance certificate, Green Card (if issued), and details of any breakdown and travel insurance, together with any emergency helpline numbers. Also take your registration document, driving licence and, of course, passport. For some countries, you may need to take an International Driving Permit - check your destination/s in advance.
* Get a fire extinguisher, first-aid kit, tool kit, spare bulbs and warning triangle for your vehicle. Many of these items are a legal requirement in some EU countries.
* Take a spare set of keys and keep them somewhere safe!
* Familiarise yourself with road signs and the road rules of the country you are visiting before you go.
* Do not forget your registration document, driving licence and passport. Also check your destination/s to see whether you need to take an International Driving Permit with you.

All this planning may not sit very comfortably with the ideal of speeding into the great unknown with just your car and the road ahead. But if you really want a road trip of a lifetime, a little advance preparation will ensure that you can have just that.

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Caroline Poynton is a financial journalist and writes for Beat That Quote on all loans, insurance and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/credit/tripping-the-credit-card-fantastic.html http://www.articletrader.com/finance/credit/tripping-the-credit-card-fantastic.html Fri, 20 Jul 2007 00:00:00 -0500
At this time of year, thousands of us will be looking forward to jetting off on our summer holidays. If your holiday is just around the corner, you may just now be checking your travel insurance and purchasing a policy that will cover you for every eventuality. However, if you bought your holiday with your credit card you may already have some holiday perks that you just didn't know about.

With research showing that as many as one in three holidaymakers pay for their trip by credit card, it's well worth you looking at what travel bonuses your card may automatically include as part of your purchase. In the past ten months, the average amount of travel accident cover on a credit card has increased by around £23,000, from £84,534 to £107,547.

Such insurance is likely to cover medical, travel and accommodation expenses incurred as a result of accident and injury. Of course, you should always check the extent of the cover offered, especially if you are planning any activities while holidaying. But even if your dream trip is a bungee-jumping adventure across New Zealand, you should still check your existing credit-card cover to ensure you are not paying twice for your holiday peace of mind.

For example, a number of credit cards also now offer free baggage insurance if you use your card to buy your holiday, with an average £1,168 worth of cover, a huge increase on last year. Okay, some may consider you crazy for wanting to jump off dangerously high bridges, but you'd really feel like the fool if you discovered you'd paid double for your baggage insurance.

Several providers also offer other free travel perks - for example, free purchase protection, which covers against loss, theft and accidental damage for purchases bought while you are holidaying. Again, just be careful to check the cover as there will be limits and excesses apply.

Your credit card provider may also offer an emergency replacement facility, should you lose your card while on holiday. Considering how much we all rely on plastic today, you may see this as vital for a stress-free trip.

If you travel a lot, you might consider applying for a credit card that has a higher fee, but also provides numerous benefits for the regular traveller. The American Express Platinum Card, for instance, has no pre-set credit limit and numerous perks for the holder.

The annual fee is a rather heart-stopping £225, but for that you not only get free travel insurance for you and your family if you pay for your holiday with your card, but you can also have extra cards for yourself and your family members over 18.

In addtion, there is a reward scheme included in the fee, which awards the holder one point for every pound spent. These points can then be used to buy a wide range of goods, including airline tickets, hotels and car hire. With restaurant discounts, free companion airline tickets, and access to 500 airport lounges worldwide for you and your partner, you might think the fee worthwhile, especially if you are a frequent traveller. Before you set off on your hols this year, or before you book your holiday for next year, take a moment of two to look through potential credit-card benefits. In particular, you should ask questions such as:

* If I book with my credit card, will I be able to get any kind of discount on the holiday price? (Many credit cards will offer a percentage discount of approximately 5% ).
* Will I get holiday insurance for free, if I pay with the card?
* What cover does that include? Will I need additional cover or will my credit card insurance be sufficient for my needs?
* Are there any other perks - for example, car hire, hotel discounts etc?
* The benefits are great, but what charges might I incur for using the card overseas? Would a cheaper card with fewer benefits be more cost-effective?
* If I lose my card, will my provider provide an emergency replacement and/or cash holiday cover?

For many of these benefits, you may find you have to pay an annual fee. You may weigh up the costs and decide that the fee is more than worthwhile. Alternatively, you might decide to look for a card that has no fees or benefits, but is cheaper to use abroad. Your decision will depend on your individual circumstances, but whatever holiday credit card you choose, be sure you know what you're getting, so that you can get the very most out of your all-important holiday budget.


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Caroline Poynton writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/home-and-family/making-the-most-of-your-move.html http://www.articletrader.com/home-and-family/making-the-most-of-your-move.html Fri, 20 Jul 2007 00:00:00 -0500
Gas, electricity, water
You should tell your electricity, gas and water suppliers at least 48 hours in advance that you are moving. The supplier will arrange for your meters to be read or ask you to do it so they can work out your final bill. At this point, your supplier will ask for your forwarding address.

Ensure that you keep a note of the readings and the dates on which they were taken. If you do not agree with your final bills, you will need this information close at hand. If possible, tell the people moving into your old home the name of the gas, electricity and water supplier. You could do this by telling your estate agent, landlord or letting agent. Also give them your gas 'Meter Point Reference Number' and your 'Electricity Supply Number' - you'll find these on your energy bills.

Once you move into your new property, you will be given a gas and electricity supply under what is known as a ‘deemed contract’. This means that the gas or electricity suppliers of the previous occupant automatically becomes your supplier at the property.

Don't forget to take a gas and electricity meter reading on the day you move in, which you should pass on to the supplier as soon as possible, together with all your details. This will allow the supplier to send an accurate first bill.

As you move into your new home, you might decide this is the time to compare and possibly change suppliers. It's certainly worth doing some homework on this, as there are now so many options out there, and you could potentially save an awful lot of money, especially if you make the switch as soon as possible after your move. Remember that you will need to give you existing supplier at least 28 days' notice, though.

"When you are moving you need to ensure you have your basic utilities set up as soon as possible," said Nick Tsimbidaros, Marketing Director at BeatthatQuote.com. "But like many people, you may worry about the rising costs of your energy supply - shopping around the available suppliers will help put you back in control of your utility spend. What better time to do it than with the fresh start of your new home?"

Telephone to broadband
It's not just your energy supply you need to consider, though. Long gone are the days when you would simply shut down your existing telephone line to set up your new line in your new home. Today, more and more of us also see a broadband connection as vital - if you work part or full-time from home, for example, your internet connection will be every bit as important as your gas and electricity supply. After all, any delays in set-up may not just be irritating but could impact your ability to work.

Again, you need to give your broadband provider as much notice as possible of your move to ensure a smooth transition. Most broadband is delivered over an Asymmetric Digital Subscriber Line (ADSL) and you will need to get BT to set up a line in your new place to enable your ADSL broadband connection. If you live in a large town or city, you may be able to look at alternatives such as cable broadband, but you will need to check out the location and availability of this in advance.

If you are still part way through your contract with your broadband provider, you should be able to continue with your existing contract at your new place, without having to start afresh. However, if you are coming to the end of your contract, it may also be worth taking a look around the market. With such a wide selection of broadband deals now available, and with the price of internet access falling at the same time as performance is improving, there has never been a better time to compare providers.

Making things easy
All of the above may seem a little daunting considering all the other things you will have to manage when moving house. But BeatThatQuote.com could help simplify the whole process. It offers a quick, easy and comprehensive comparison of possible gas and electricity suppliers in the area to which you are moving; if you would like to take this moving opportunity to be more environmentally friendly, it will even suggest some 'green' options that may make you feel more comfortable about your energy usage. BeatThatQuote can also compare a wide variety of broadband providers, explaining what kind of service and price you can expect from different suppliers.

Many of us put up with deals that may not be cost-efficient, just because it seems easier than switching suppliers. But with so much on offer and sites to help you choose the best solution for you, your next house move could prove to be a new beginning in more ways than one.


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Caroline Poynton writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/insurance/home-insurance-claims-likely-to-rise-with-smoking-ban.html http://www.articletrader.com/finance/insurance/home-insurance-claims-likely-to-rise-with-smoking-ban.html Fri, 20 Jul 2007 00:00:00 -0500
Insurance companies are bracing themselves for a possible rise in home insurance claims, following the July 1st smoking ban. With people banned from smoking in public places, insurance companies are predicting an increase in the numbers of people smoking in the home, thereby increasing the risk of home fires and insurance claims.

According to recent research by the financial services provider, Abbey, 425,000 fires are started in homes each year by smoking materials, causing damages worth an average of £25,500. In addition, a Department for Communities and Local Government (DCLG) announcement in January of this year revealed that smoking was the biggest cause of fire-related deaths in the home. Nearly a third of all households have a smoker living in them, with an average of 132 deaths and 1,600 injuries a year caused by accidental home fires related to smoking materials. A Direct Line Home Insurance survey also suggests that following the ban, an additional 16 million cigarettes may now be smoked indoors every week, resulting in a possible increase from 60 to 100 smoking-related house fires per week. For smokers, it makes uncomfortable reading, but it may also have implications for your home insurance.

Depending on where you live, you may already have some concerns over your future home insurance premiums, especially if you have been affected by the recent flooding across the UK. If claims are also to rise due to smoking-related home fires, you may be worried that the cost of your home insurance will soar. Thankfully, however, home insurance premiums are currently very favourable, with the index of average quoted premiums on home contents insurance falling by 3.22% year on year. Buildings insurance cover (as a homeowner, you will need both building and contents insurance), is also competitively priced with average premiums falling by 0.20% year on year.

What you do need to ensure, however, is that you are adequately covered for these potentially increased risks. Especially if you smoke or live with a smoker, you need to ensure that your existing policy covers you in the event of fire; indeed, the same goes if you live in a flood-risk area. Understanding the risks you are exposed to and regularly checking your insurance policy, will give you security and peace of mind. It may also be worth taking this opportunity to research available home insurance offerings - with such good deals currently in the marketplace, there has never been a better time to find the right policy for your individual needs.

If you or others are going to be smoking in your home, you may also want to take on board some sensible precautionary tips. The following DCLG guidance, for example, could prevent a fire in your home:

* Take extra care when you’re tired, taking any sort of drugs or have been drinking alcohol.
* Never smoke in bed - if you need to lie down, don’t light up. You could doze off and set your bed on fire.
* Never leave lit cigarettes, cigars or pipes unattended - they can easily overbalance as they burn down.
* Buy child-resistant lighters and matchboxes - every year children die by starting fires with matches and lighters. Keep these where children can’t reach them.
* Use a proper, heavy ashtray that can’t tip over easily and is made of a material that won’t burn. Make sure your cigarette is not still burning when you are finished - put it out, right out.
* Tap your ash into an ashtray, never a wastebasket containing other rubbish - and don’t let the ash or cigarette ends build up in the ashtray.
* Fit and maintain a smoke alarm - when a fire starts, you only have a few minutes to escape. A working smoke alarm can buy you valuable time to get out, stay out and dial 999. You can get a basic smoke alarm for the same price as a packet of cigarettes. Better still are smoke alarms with long-life batteries or are mains-powered.

And, of course, if you're a smoker suffering the consequences of the smoking ban, perhaps now is the time to bite the bullet and give up. After all, it may not only save you a home-insurance claim, but will also have a rather pleasant impact on the price of your life insurance and, of course, your quality of life in general.


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Caroline Poynton writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/getting-the-most-out-of-your-holiday-budget.html http://www.articletrader.com/travel/getting-the-most-out-of-your-holiday-budget.html Fri, 20 Jul 2007 00:00:00 -0500
Let's say you have taken advantage of a last-minute deal and you're off on your summer holiday first thing tomorrow. You're probably delighted to have won yourself such a fantastic bargain, and getting your cash sorted is a fairly low priority compared to finding your swimming costume and lilo. After all, there'll be a choice of Bureaux de Change at the airport and even if that fails, there will be plenty of ATMs abroad and retailers/restaurants that accept your cards.

If you want to maximise your holiday budget, though, you would be wise to take stock of your options now. By exchanging cash at the last minute - at the airport or station, for example, you will undoubtedly lose out to higher exchange rates, based on the fact that you have little choice but to accept what's on offer if you want to have some cash on your arrival at your holiday destination. Even if you find an exchange bureau that offers 'commission free' deals, the location of the office makes it unlikely that the exchange rates will be competitive.

You may instead decide to trust in your debit/credit cards, either using them directly for transactions abroad or withdrawing cash from the increasing number of ATMs appearing across the globe. This may be a sensible idea and it is at least likely that you will use your cards for some of your overseas spending, but you still need to do a little homework. For a start, you may not realise the increased costs of using your debit/credit cards overseas. A few high street lenders do not charge for foreign transactions and/or for withdrawing cash from ATMs while abroad, but the majority of banks will apply costs at varying levels.

The most common charge is known as a 'loading fee' or lenders may refer to it as an 'exchange rate administration fee'. On average, this amounts to a 2.75% commission payable on the total cost of your credit or debit card transactions, although Morgan Stanley's recent quarter-point increase to 3% on credit card transactions may be followed by other providers in future months.

Your card provider may also charge a flat fee for any transaction you make abroad - for instance, Lloyds TSB charges £1 and Natwest £1.25 per transaction. You will have to pay this in addition to the exchange rate administration fee, meaning that a £100 payment would incur charges of £4.00/£4.25 respectively.

Withdrawing cash from an ATM while abroad has never been so easy, but this also incurs costs of which you should be aware. For example, you may be charged up to £5 for using a cash machine overseas, depending on which card provider you are with and the amount you withdraw. Add the exchange rate administration fee on top of that, and the charges quickly add up. For example, if you make two £100 cash withdrawals and two £100 card purchases, you will be looking at paying average charges of around £15/£16, which could further rise as you enjoy your holiday freedom.

There are several ways, however, that you can ensure you make the most of available spending money. No matter how eager you are to get on that plane, it is always worth taking some time to compare credit/debit card charges beforehand so you get the best deal. Read the summary boxes in credit card leaflets; among the fees and charges displayed will be the foreign currency loading fees, meaning that you can compare providers and apply for the best card before you leave. In addition, search services such as BeatThatQuote.com will provide a quick and easy comparison service of various credit cards in the market. If you are a frequent traveller, you may work out that it's worthwhile having two cards: one that has the best rates for the UK and another that offers low charges and fees for use overseas.

As a final note, you should also watch out for lesser known charges while you are abroad. Many restaurateurs and retailers now have the facility to get you to authorise your bill in euros but then they recharge your card in sterling. This system, called dynamic currency conversion (DCC), may sound simple enough, but the retailer will charge you a service fee of up to 4%, much higher than the 2.75% average loading fee of your card provider. Always ensure, therefore, that your transaction is processed in euros to avoid incurring this higher charge.

If you withdraw cash from an ATM, you should also remember that interest will be charged from the minute the euros leave the cash dispenser. Unlike other transactions, there is never any interest-fee period on cash withdrawals so you will be paying more, right from the start. If you must withdraw cash, pay it off as soon as possible and, if you don't repay your holiday spending when you return home, consider transferring your balance to another card provider, which offers a 0% balance transfer rate or a 'low rate for life of balance'. Again, BeatThatQuote.com will be able to help you do this quickly and effectively.

Taking the time beforehand to work out the best card deals for your holiday spending may seem a little dull compared to booking your water-skiing or fine restaurants, but if you think of the money you might save that you can put back into your holiday fun, then it is surely well worth the effort.


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Caroline Poynton writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/to-5.75%25-and-beyond-managing-a-year-of-interest-rate-uncertainty.html http://www.articletrader.com/finance/mortgage/to-5.75%25-and-beyond-managing-a-year-of-interest-rate-uncertainty.html Fri, 20 Jul 2007 00:00:00 -0500
For the average homeowner with, say, a £100,000 mortgage, each quarter-point rise in interest rates equates to an additional £16 a month, on average. That means that, over the past year, borrowers had already seen mortgage payments rise by around £64; with this latest rise, total payment increases will be nearing the £100 mark. And for those with larger mortgages, the financial impact may be far worse.

The last time we faced such interest rates was in 2001, but the difference today is that our debts are generally far higher. Consumer spend has become the mainstay of the British economy, to the detriment of the manufacturing industry, which has instead withered. The process has worked because we buy homes at cheap interest rates, then gear up against those homes to carry on spending. The result is that the country is now running on the highest level of debt ever.

In particular, favourable interest rates in recent years have encouraged many thousands of people to take out second mortgages, perhaps to reduce unsecured debt, pay for home improvements or help with the costs of looking after a family. If you are one of the many with a second mortgage, this latest Bank of England interest-rate rise will be doubly painful. In addition, if you are looking for new mortgage deals, you might face paying out as much as two interest points higher, at a time when disposable incomes are falling and the saving rate has been squeezed to its lowest in nearly 50 years.

Nor are those on fixed rate deals necessarily protected from the impact of the 5.75% interest rate. If you, like many hundreds of thousands of others in the UK, secured a two-year fixed rate mortgage in the summer of 2005, taking advantage of the then low interest rates, you may now be facing the shock of dramatic payment increases, as your fixed rate comes to an end and you are forced onto your lender's standard variable rate (SVR).

So is this all a tale of doom and gloom? Well, it's certainly an uneasy time for first-time buyers and existing homeowners but there are still plenty of options in the market to ensure you get the best possible mortgage deal, despite the uncertainties. The most important thing is that you understand where the market is and where it is heading, and that you have contingency plans for possible interest-rate rises in the future. If you are a first-time buyer or you are looking to change mortgage, be sure to get the right advice to ensure you do not over-commit your finances. Using a comprehensive search service such as BeatThatQuote.com could also help you quickly and efficiently research available deals in the market, ensuring that you get the right mortgage for your individual circumstances.

Most of all, do not let any concerns you might have over possible future interest-rate rises force you into making hasty decisions or panic buys. Take the time to think through your options and balance up not only your finances with the mortgage deals on offer, but also consider carefully your lifestyle preferences and what financial security you need to live comfortably and stress-free. Take time out now to consider the market challenges and opportunities, and you will reap the rewards in future of both financial and personal well-being.


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Caroline Poynton writes for Beat That Quote on all loans, mortgages and personal finance topics.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/cross-border-lending-the-latest-revolution.html http://www.articletrader.com/finance/loans/cross-border-lending-the-latest-revolution.html Thu, 28 Jun 2007 00:00:00 -0500
Think back to major events of the 1990s and you might first think of the rise of New Labour, the unfortunate death of Princess Diana, or maybe even the first Gulf War. It was also the decade of a quiet revolution - one that has fundamentally changed our lives forever. When British scientist Tim Berners-Lee invented the worldwide web, we surely didn’t realise just how much it would impact everything in our lives, from the way we socialise and communicate, to the way we conduct and operate in business.

The internet was the gateway to globalisation, and its appearance paralleled other huge leaps in technology. Before the end of the decade we would all be surfing the web and calling our friends and colleagues with the latest mobile phones. In the financial services sector, however, little changed. Okay, in recent years, we have been able to check our accounts online and even pay our bills through secure websites, but we still largely rely on our local high street banks or building societies for everything from managing our day-to-day accounts to securing a loan or mortgage. But things might be changing. According to latest proposed amendments to the Consumer Credit Directive, consumers will soon be able to search the whole of the EU for the best loans. By applying a new standard format to calculate interest rates for loans and credit cards, EU diplomats and officials hope that consumers will be easily able to compare rates and secure EU loans without compromising their consumer rights. This will be supported by strict rules on the minimum level of facts and figures that must appear in advertisements, and the information consumers must be provided with when applying for credit.

What this means for you, the consumer, is the potential opening up of whole new markets and opportunities. It is still very early days and the rules need final approval by the European Parliament, but if the plans go ahead and harmonisation in lending is agreed across member states, then your local bank/building society/lender could follow the example of many other business sectors and become part of a truly global operation.

There are potential challenges, however. Some banking organisations, such as the British Bankers’ Association and the UK Payments Association (Apacs) agree to the changes in principle, but are concerned that the infrastructure isn’t in place to make it work. For example, each member state has different privacy and debt recovery rules. In addition, there is no agreement on how much compensation banks can demand from clients who repay their loans earlier than agreed.

As a consumer, you may also have some reservations about securing a loan overseas. The advantage of going local is face-to-face contact or at least an easy phone call. With EU-wide loans, there may be language problems or limited personal contact. You may also be unsure as to whether the rules and regulations you understand in the UK market would apply to loans taken overseas.

These developments are still new but vast differences in interest rates between countries across the EU could give you the chance to make huge savings in a loan deal. But you also need to ensure you thoroughly research this new and changing market. At present cross-border consumer credit accounts for just 1% of the European total - this percentage is likely to grow in the next few years. If you want to be part of this brave new world, just be sure to do your homework first.


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Caroline Poynton is a financial journalist who writes for Beat That Quote about loans and other finance topics.

Source: http://www.articletrader.com ]]>