5 Reasons Getting Outside and Doing Something Saves Money

The nice weather is starting to come around and getting away from the computer and outside is a great way to save money. Some miscellaneous reasons why:

1. You can ditch your monthly gym membership fee.

2. If you’re outside doing something then you aren’t inside paying for something.

3. Chances are it’ll help maintain your health which means less costly bills for poor health in the future.

4. I’m sure someone has proven being active and seeing light improves your mental abilities– allowing you to be more effective in the things you commit yourself to doing.

5. You aren’t inside watching TV, using the microwave, or the computer meaning you’re using less electrical energy.

Pockey money

Pocket money is a valuable tool in teaching your children the value of money and can also be used as a way of controlling them. Children gain an interest in money from a very early age as they know that’s what they need to get sweets, lollipops and toys. So when should you start giving your child pocket money?

Most people start to give their children pocket money from the age of six or seven, at this age the amount does not have to be very much say £1 to £2 per week, as age increases so should the amount as the things they’ll want to buy will be more expensive and inflation will mean our money is worth less.

Pocket money should always be dependent on good behaviour! Bad children should not be paid or should be reminded that if they don’t behave they’ll lose their money. This will teach them a lesson they won’t forget as they won’t be able to join their friends in the tuck shop. A great way of keeping them in check is to start the week at pocket money of £5 and for every time they miss behave or don’t do their chores you can subtract £1, so they may get lots of money or get nothing.

An awesome way of teaching children the value of money and get them saving early is to give them a small weekly amount of about £2.50 and tell them if they save it for 4 weeks and not spend any of it you’ll give them interest making their £10 into £15 (very good interest rate). This will give your child a valuable lesson in saving money and thinking about the future.

If you have any techniques of your own or tips on giving pocket money then please share them with everyone.

IVA that comes with a price

It isn’t good economics for an IVA for under £20,000 to be taken on due to the fees imposed by the insolvency practitioner. The amount charged by the practitioner is very steep and problems keeping up the payments can prove very difficult. You should however seek IVA advice.

It is said that a certain amount is paid every month and gives the impression that the same amount throughout the IVA is kept to, but this is not true – the amount can change as the wage changes and as the cost of living is getting ever steeper it can prove difficult to justify your expenditures. It can seem a good way to rid yourself of the debt burden but it is for 5 years and that is a large portion of your life to commit for. If you own your own home at the end of year 4 you can be asked to re-mortgage and quite a large amount taken away from you which may mean you have paid all your debts owed anyway – considerably more than the 25% you are told you will pay.

On the other hand with bankruptcy you will automatically lose your home and if in certain employment, the police force being one of them, you will lose your job

But it is something that has to be thought about very carefully as an IVA is not an easy get out.

Fashion shopping virtual or real

It’s great to see so many shops have their wares online. It’s great to see size 8 models on websites looking oh so fabby in a lovely dress. Even better when they offer next day delivery. Yeah, that’s great – but does the item have a chance of looking so great when you arrive home to find it waiting there for you? Sometimes, eh, no.

I love web shopping, I do it quite a lot. I don’t have to put on any clothes to go out in the pouring rain to try on some new pieces.

That said however, I’ve had my share of disappointments. It looks great on the screen, even when I zoomed in to see the actual material and thread count. When it arrived – oh boy! Did I make a mistake?

I also love real shopping. Your feet get sore, you get fed up trying on clothes. You get fed up with people pushing past you in the isles and grabbing the last size 14 you needed in that purple satin bustier….However, you do get to try the item on in the shop, you do get to see the price ticket marked down as there is a very small (almost inconspicuous) little stain on one side. You get to grab the sense of real bargains that you couldn’t get online.

Housing Recession To Continue Till 2009

A top economist predicted an even bleaker housing recession, saying it will last at least another two years, dragging down the American economy to trail the rest of the world.

“Housing prices won’t hit bottom until next summer and the losses won’t peak for another two years, until 2009,” said David Wyss, chief economist of Standard & Poor’s.

“We are not halfway through this crisis yet.”

S&P forecasts the U.S. economy will grow 2 percent in 2007 and in 2008, while the global economy is expected to grow 3.6 percent and 3.5 percent, respectively.

The comments came as another mortgage company, Thornburg Mortgage, surrendered to a new onslaught of collapsing mortgages, saying it has lost $1.1 billion, 27 percent more than it had expected.

The company, which specializes in jumbo loans above $417,000 to buyers of more expensive homes, said its losses came when it tried to sell bonds backed by adjustable-rate mortgages that were increasingly falling into default.

“The global dislocation of the mortgage finance and credit markets this past summer has had a greater impact on our balance sheet than we initially estimated,” Larry Goldstone, Thornburg’s president and chief operating officer said.

Shares tumbled $1.17 to $12.29, and have lost 51 percent of their value this year.

The U.S. Federal Reserve estimates that credit losses resulting from the U.S. subprime crisis are approximately $150 billion, less than 1 percent of the $16 trillion U.S. mortgage market.

Another troubled mortgage firm, American Home Mortgage Investment Corp., which is in bankruptcy, is fighting a request to probe finances leading to its collapse in August.

The company said the probe could interrupt the planned bankruptcy sale of its mortgage collection group to investor Wilbur Ross for $500 million. A Thornburg investor, Vantage Pointe Capital LLC , wants the company books investigated.

Meanwhile, signs of life are continuing to surface in the mortgage refinancing business.

Sales of U.S. agency backed mortgage securities rose 5 percent in September to $103 billion, reflecting the popularity of fixed-rate mortgages.

Top ways to survive the recession

Boost you income
Why not take on a part time job in the evening after your regular work, or even on a weekend, sure you’ll have less time to watch television or spend time with the family but think of the extra money in your pocket that could pay for a nice holiday or just help pay off those debts. Renting out a room in your house if it’s going spare is another great way of boosting your income, and the money you gain will be tax-free under the government’s rent-a-room scheme.

Insure your income
Insuring your income is a great idea during a recession as if you lose your job the insurance can cover payments on your mortgage for up to a year. The Government will also help homeowners who lose their jobs by paying the interest on mortgages of up to £200,000 from the 13th week after being made redundant. Mortgage protection can cover your repayments but make sure you check the small print as they have very specific terms.

Get a good credit card
Card issuers are pushing up their prices and also reducing their interest free periods so it is vital that you pay off consumer and credit card debts. Switching to a cheaper card is normally the best option and if you’re not in debt then have a think about switching to a cash back card that will give you back a percentage of the money you spend. If you are getting squeezed by those credit card companies and in need of debt help then make sure you shop around wisely for the best options as the recession is limiting them and debt help can be harder to come by.

Overpay your mortgage
If you can afford it then try to overpay your mortgage, Not only will this cut the term of your mortgage considerable and save you lots of money in the long run but will also means that if you do run into difficulties then you can take a payment holiday.

Change your savings
Savings rates have dropped dramatically with them being at the lowest in the history of saving, but there are still accounts that give you more than the base rate. There are still accounts out there that give 4% which is not too far away from the 6-8% we were getting last summer.

Get better insurance
Insurance is a necessity and you can always get cheaper and better insurance for your home/car. All you have to do is not accept that renewal quote, use comparisons sites or call your insurer and tell them you’re leaving as you’ve found a better bargain. They will offer you a better deal, and you can always haggle with them a bit more to get that low price. The same works for Sky TV and mobile phones just call them up and say you don’t want it anymore and they will lower their price to keep you.

Advantages and Disadvantages of an IVA

Individual Voluntary Arrangements (IVA’s) are becoming an increasingly popular method in which to ease any debt problems. Recent figures suggest that the amount of IVA’s taken out each month now exceeds that of the amount of bankruptcies. However, IVA’s are not always the best debt management solution for some, and there are some advantages and disadvantages which you would have to consider before applying for an IVA.

One of the biggest advantages of an IVA is that they are private; none of your friends or family has to find out. This means there is no social stigma attached to IVA’s. Furthermore, an IVA leaves you debt free in up to five years whilst safeguarding all your assets at the same time. Even during these five years, the repayments that you make are within your means. You are never asked to repay more than you are able to.

Perhaps one of the most stressing aspects of debt problems is having your creditors continually threatening you for your payments. Luckily, an IVA ensures that creditors are unable to contact you, make any demands or take you to court.
For some people, the IVA period of five years is a long time to be repaying debts, and filing for bankruptcy gives you the option of being debt free in as little as a year. Although an IVA is not publicised in the same way as bankruptcy, you can still find a record of your IVA on the Individual Insolvency Register, which is searchable by the public. In addition to these disadvantages, the life of a debtor in an IVA period is highly monitored during an IVA period, with wage slips and salaries checked regularly to ensure that you are repaying the highest amount possible.

If you are seriously considering an IVA, be sure to do a thorough check of the Debt Management comany before you choose. Debt Free Direct discovered several agencies were giving consumers misleading advice on IVA terms, so it is always advisable do your research first.

Bankruptcy Or Administration Orders

Twitter has taken over and I spend more time on twitter than I should.My poor little blog wishes I’ll pay more attention to her. Let’s address a real problem – BANKRUPTCY. I have written a lot of articles on this topic and will always do.

Administration orders is one alternative to bankruptcy and is a court-based procedure whereby you make regular payments to the court to pay towards what you owe your creditors. You need to have enough monthly or weekly income to meet the payments. If you cannot make the payments this order can be cancelled.

An informal arrangement is another option where you write to all your creditors and try to come to some kind of payment arrangement and this would usually include a timetable detailing when you can pay them. The only disadvantage to this is that it is not legally binding so it could be ignored by your creditors and then they could ask for full repayment of your debt.

The third option could be debt consolidation where you take a loan with a low interest rate say from a bank and this helps to pay many creditors and then you only have one monthly payment to make to pay off your bank loan.

Talk about debt

Nothing new but I guess,debt can break or make a relationship. This is my ordeal!! I have lied to a partner about my debts, well perhaps it wasn’t lying exactly, I just didn’t tell him anything about it. I managed to run up £17,500.00 worth of debt in less than two years on credit cards. I wasn’t spending vast amounts of money at a time, or buying really expensive items such as cars or holidays. It was very easy I just used the cards and only ever paid the minimum payments then there it was £17,500.00, not all on one card but on four.

What did I do? Nothing for a while, just tried to keep up with the minimum payments, but this was not reducing the debt in anyway. I eventually told my partner, well we were looking for a new mortgage and I could not risk being turned down by the lender because of my outstanding debt. I never missed any payments, so don’t have a poor credit record, but the capital amount was not reducing. I was treading water.No matter how bad thins are,always have a savings account.Always!!

It definitely puts stress on your relationships, I was under severe pressure, I wasn’t sleeping very well and was very irritable. I also had to work a large amount of overtime to ensure I could make my payments without impacting on the family finances.

Owning up was the best thing I did. We weren’t able to pay off the cards immediately but we were able to budget better. I was also able to make some better credit card deals such as zero per cent on balance transfers. I am slowly chipping away at the debt but at least now I am doing more than paying the minimum.

Always consult with a debt advisor.

Try To Contact Your Creditors

The thought of going bankrupt can be scary, but there are alternatives. The first alternative is to contact your creditors and try to reach an informal agreement. Explain to them that you are experiencing difficulty with their current repayment terms and try to negotiate a more suitable agreement. Most creditors would rather take this option and have you continuing to make repayments than risk you going bankrupt and having your debt written off.

If you are unable to reach an informal agreement then your second option is to opt for an IVA or Individual Voluntary Agreement. An IVA is a legally binding agreement between you and your creditors where you reach a compromise on how much of the debt you can repay and when payment should be made. An IVA is carried out in a much more formal manner than and informal agreement and if you decide to head down this route you have to involve a licensed Insolvency Practitioner to carry out the process.

Finally, if you want to avoid going through the process of an IVA you could enlist the help of a Debt Management Company. The company will provide you with your own debt manager who will prepare a financial statement and budget of your accounts and determine exactly how much you can afford to pay towards your debt. They will then approach your creditors on your behalf and agree a new set of payment terms. If you decide to use a Debt Management Company then read through their terms and conditions very carefully as some companies take a percentage of your monthly payments to cover their costs. To find one that charges no fees try contacting your local Citizens Advice Bureau.