press release

Press Release - 22/12/04

EARN A £4,500 PAY RISE IN 2005 - BY MAKING 3 SIMPLE NEW YEAR'S RESOLUTIONS

STANDARD rate taxpayers could earn themselves a handy £4,500 boost to their income in 2005, simply by resolving to be canny with their money, reckons financial data comparison service Moneynet.co.uk.

Richard Brown, Moneynet chief executive, says that by sticking to three straightforward money moves, the borrower in the standard rate tax bracket could save themselves the equivalent of £4,500 in the coming 12 months.

"Most of us will be making New Year's resolutions, but while giving up smoking, dieting and joining a gym will for many be a struggle, by following our simple three resolutions you should be able so save yourself several thousand pounds over the year - painlessly!"

Resolution 1 Make sure your savings are working hard. Many of the High Street banks pay just 0.1% on their instant access accounts. So consider a move. Pick of the bunch: Egg currently offers a rate of 5.5% for the first 6 months and thereafter guarantee that the rate will match or beat the Bank of England base rate until December 2007. On a balance of £5000 the difference between best and worst accounts could amount to £270 p.a.

Resolution 2 Consolidate debt - but do it sensibly: Alliance and Leicester currently offers a low rate of 5.90% on personal loans over £5000, and by consolidating notoriously expensive store card and HP loans there are major savings to be made. On a loan of £7000 the repayment with A&L would be £212 per month over three years. The same debt held on a store card at 29.90% APR (eg, with Debenhams, Comet, Burton, Dorothy Perkins, ToysRus) the interest would be racking up at a rate of £2000 per annum. This means that you would have to make a monthly payment of nearly £175 just to cover the interest before making any dent in the capital outstanding.

And switch your credit card debt to a zero per cent card: With many providers charging over 15% APR you will be paying £750 per annum in interest on £5000 debt. Pick of the zero per cent bunch include Lloyds TSB's Advance Card, offering 0% on balance transfers for 12 months. Or Sainsbury's Visa Card offers a rate of 5.90% for the life of the balance transferred. The potential saving here on a debt of £5000 could be as much as £750 in the first year.

Resolution 3 Re-mortgage to a lower rate: The average mortgage of £100,000 on a standard variable rate of 6.50% carries a monthly repayment of around £675 over 25 years. Switch this to a fixed rate at 4.5% and the repayment drops to £562, making a saving of £1300 p.a. Portman Building Society is currently offering a fixed rate of 4.49% until 28th Feb 2007. There are no redemption penalties on this deal at the end of the fixed rate period leaving the borrower free to switch again and make further savings at that stage.

"We calculate that these simple moves could save up to £3,400 in the first year," says Moneynet's Richard Brown.

"For a standard rate tax payer this equates to a pay rise of £4500 p.a. Not a bad start to the New Year."

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005