November 12th, 2015 | Andrew Hagger | News

New European rules mean that credit card companies now receive a much smaller kick back from retailers, forcing some card companies scrap or dilute their card reward programmes.

However it’s not the end of the road for these schemes just yet as two new promotions have just been launched.

Sainsbury’s Bank which currently offers one of the more lucrative reward schemes via its range of Nectar credit cards is doubling the reward rate for new customers to 4 Nectar points per £1 spent on Sainsbury’s shopping or fuel in the first three months.

A brand new rewards card has also just been unveiled by AA credit cards, targeted mainly at motorists.

The AA Fuel Save credit card comes with a fee of £3.50 per month so you need to use it frequently to ensure you benefit from the rewards.

You can earn 4% cashback on fuel purchases and 0.5% on other purchases if you spend more than £500 in total (not just on fuel) during the month.

If you spend £200 per month on fuel and £400 elsewhere – you would earn £8 for the fuel £2 for spend elsewhere – so once the £3.50 fee is accounted for you’ll be £6.50 better off each month.

November 10th, 2015 | Andrew Hagger | News

New analysis from MBNA, one of the UK’s leading credit card providers, shows Fridays and Mondays have become the most popular shopping days for their customers. The online revolution now sees Sunday and Saturday as the least popular days for consumers to do their holiday shopping.

In light of this shift and ahead of this year’s Black Friday and Cyber Monday, MBNA has looked back at over 20 years’ worth of spending data of their millions of customers to see how our spending habits have changed. This year’s Black Friday will be taking place on 27 November. Cyber Monday will be 30 November. 

Originating in the United States, Black Friday follows the Thanksgiving holiday (the fourth Thursday in November) where holiday shoppers descend on stores, hoping to save on their Christmas shopping. Cyber Monday later emerged as a way of persuading the same shoppers to find the same bargains online a few days later. The statistics reflect that the US trend has reached UK shores with Britons taking advantage of promotions as well.  

In 2014, UK shoppers spent a total of £810 million on Black Friday, while Cyber Monday generated £720 million. Based on previous years’ data, if trends continue, then spending may surpass the £1 billion mark on Black Friday.

MBNA data shows Black Friday first started to appear in the UK in 2012, developing to become a prominent feature in 2013. In 2014, Britons increased their spending on the previous year by 17 per cent. Cyber Monday emerged in 2013, but 2014 was the year when it became visible in our spending habits. The data reflects an increasing amount of concentrated spending on these two days, compared to the weeks before and after. The increased amount of activity on these two days has consequently seen a drop in the spending in the weeks leading up to and following these days.

The trends are also reflected by age and gender. Since 2012, the under-30s have seen a 37 per cent increase in spend proportion on Black Friday, compared to a 9 per cent increase in the 60+ age group. On Cyber Monday, it is the 60+ age group that continues to have the highest proportional spend, but the under-30s are catching up fast by increasing their spend on this day.

November 10th, 2015 | Andrew Hagger | News

Winter sports enthusiasts are being encouraged to make sure they have adequate travel insurance before heading off to the slopes, and not to wrongly assume that they’re automatically covered if they have annual travel insurance or travel insurance attached to their bank account or credit card.

Standard and packaged travel insurance products are unlikely to cover skiing or snowboarding.  Most (78%) single trip travel insurance policies* only offer winter sports cover as an optional extra, for which an additional fee is payable.  A minority (7%) of policies cover winter sports as standard, while 15% exclude this cover.

Following a review of over 600 travel insurance policies, Gocompare.com has drawn-up a list of 10 things winter sports enthusiasts need to consider when buying travel insurance:

1. Medical cover – look at policies that offer a higher level of cover

Snow sports can be dangerous and there is a greater risk of injury than for other types of holidays.  Medical insurance can cover mountain rescue, medical treatment abroad and, if needed, repatriation by a staffed air ambulance.  Medical costs can quickly mount up, so look for a policy with a generous amount of cover, particularly if you’re holidaying in the USA or Canada where medical bills are higher.  In Europe, an EHIC (European Health Insurance Card) will only entitle you to state-provided healthcare, not care in a private clinic, which may be the only option in some resorts.  Nor does the EHIC cover the costs of rescue or repatriation to the UK.  So, if you’re unlucky enough to have an accident without travel insurance, you could be left thousands of pounds out of pocket.

2. Cancellation cover – cover limits should reflect the cost of your holiday

As soon as possible after you book your holiday, make sure you have travel insurance in place just in case you have to unexpectedly cancel your trip, for example, as a result of illness or redundancy.  Policy limits for cancellation vary significantly (£500 to unlimited cover) so check the policy wording carefully to make sure the cost of your trip is covered. Also familiarise yourself with any exclusions that apply, as some policies may have different interpretations of what constitutes a valid reason for cancelling a trip.

3. Skis and other winter sports equipment – check limits and restrictions

Winter sports clothing and equipment is expensive to buy or hire, so it’s important to make sure it’s covered against damage or theft.  Most policies charge an extra premium for winter sports baggage.  Of those policies providing cover, 55% provide cover of £500 to £800 for winter sports equipment, just over a fifth (22%) have policy limits of £1,000 or over, while six winter sports policies exclude cover.  If you have especially expensive gear, check the small print to make sure you’ve got adequate cover.

Fewer policies provide cover for equipment which is hired as opposed to owned.  Of those that do, cover limits are generally lower.  For owned equipment policies typically (61%) provide cover of £300 to £500.  For hired equipment only 35% offer this amount of cover, generally policies (53%) limit pay-outs to £100 to £275.  Whether you own or hire equipment, insurers will expect you to take reasonable care of it and report any losses to the police and any damage caused while in transit to the transport company.

4. Ski packs and passes – check you have adequate cover

The cost of lessons, hiring skis and lift passes can run into hundreds of pounds so it’s sensible to insure against not being able to use them because of illness, injury, loss or theft.  Most winter sports policies provide ski pack cover but cover limits vary significantly (£100 to £10,000).

5. Off-piste and other winter sports – check the small print or risk invalidating your cover

Most (83%) winter sports policies allow you to ski off-piste subject to certain conditions such as being accompanied by a qualified guide and skiing only on recognised paths.  10% of policies cover off-piste skiing as standard, 7% exclude cover.  If you fancy taking part in other winter sports activities – dog-sledding or glacier walking for example – check that these are covered, otherwise you could invalidate your insurance.

6. Piste closures – check dates of travel to make sure your trip is covered

Most winter sports policies provide cover if all the pistes at the resort you are booked on are closed due to a lack of snow, excessive snow or high winds.  Total cover for piste closures range from £60 to £10,000 but typically (44%) pay-out limits are £300 to £500.  However, you need to check the policy wording against your date of travel.  Some policies only provide cover between specific dates e.g. 15 November to 15 April or 1 December to 30 April.

7. Avalanche delays 

Winter sports policies will often compensate you for the costs of extra travel and accommodation if an avalanche delays your arrival at or departure from you booked resort.  Cover limits range from £50 to £1,000, but most (62%) policies will pay-out £200 to £500.

8. Personal liability – look for policies with £1m worth of cover

If while skiing or snowboarding you accidently injure someone else, or damage someone else’s property, you may be sued.  Look for a travel policy with £1m personal liability insurance.

9. Take care not to invalidate your cover – read the small print

Insurers require you to take reasonable care of yourself and your belongings. Make sure you follow safety instructions, take notice of local official warnings and keep your belongings secure.  Check what sporting activities you can and can’t do – otherwise you risk invalidating your insurance.   For example, some insurers may insist on you wearing a helmet when skiing, and participation in professional or competitive sports is generally excluded.   Most insurers will refuse a medical claim if they deem that you were under the influence of drugs or alcohol when the accident occurred.

10. Claims – get official reports and keep receipts 

If disaster strikes and you need to make a claim, contact your insurer straightaway for advice on what to do.  If you’ve been a victim of crime (e.g. theft) get a written report from the police. Likewise, if your snow sports equipment is damaged in transit, report it to the transport provider.  You will need to provide evidence to support your claim so keep receipts to show proof of purchase and/or expenditure.

November 5th, 2015 | Andrew Hagger | News

November 5th, 2015 | Andrew Hagger | News

Making a will is one of those tasks that people tend put off the most and it’s one of the main reasons why every year millions of pounds worth of assets left by loved ones end up not being passed on.

None of us like to talk about death and I can understand why, but failing to make a will can leave those left behind with significant problems and stress at what is already a tough time.

Also having spent a lifetime working hard to accrue wealth and maybe property, surely you want to have a say in who receives what when you die?

A will can ensure that assets remain within the family and are passed on down the generations. Some people are concerned that new spouses may inherit their assets in the future but a well-structured will can stop this happening.

Around two thirds of UK adults do not have a will and could be at risk of losing control over their estate if they die, according to a joint study released this week by The Co-operative Funeralcare and The Co-operative Legal Services.

Previous reports have estimated that around a third of people who have lost a family member in the past ten years have struggled to locate their financial assets.

That’s a big part of why in the UK there is currently more than £600 million sitting in unclaimed bank accounts, £44 million in unclaimed premium bonds and more than £3 billion in stocks and shares.

The problem is if people don’t know what savings, investments, life insurance and treasured possessions you own, they have little chance of tracking them down.

You could turn to a Solicitor to help with your search, but it’s easy to run up a bill of £2,000 plus for this service and even more if it’s not a straightforward case.

Don’t leave it too late

The Co-operative findings also reveal that of those who made a will, the average age they first wrote their will was 42 whereas 1 in 4 left it until after the age of 55.

The most common trigger that prompts people to think about a will is reaching a milestone age, maybe the big 40, 50 or even older.

Other cited reasons that spur people on to make a will are having a child, the death of relative and purchasing of a property..

Despite the fact that life events such as marriage, divorce and the death of a spouse can significantly impact the effectiveness of a will, many people have never updated their wishes with a third of people admitting they simply just haven’t got round to it

Making a will – top tips

The first step is to make an appointment with a local solicitor to make your will (and remember keep it updated every few years).

Secondly, don’t forget to tell your family that you’ve made a will and where it’s located.

As well as the will itself, write down list of your assets and keep it with your will, that way the wealth that you’ve worked so hard for all your life can be located without too much effort and will be passed on to the people that you want to receive it.

It’s a concern that over half of people who have wills have never updated them so it’s wise to have a quick read through your will every couple of years to ensure it still meets your wishes.

If you haven’t already made a will, now’s an ideal time to get something sorted.

During November as part of ‘Will Aid’ you can get a will prepared by participating solicitors in return for a donation to charity – you can find who is offering the service in your area, by entering your post code on www.willaid.org.uk

November 4th, 2015 | Andrew Hagger | News

Financial advisers expect the number of couples and families seeking joint advice on retirement planning to increase as a result of the recent pension freedom rule changes, according to new research by Prudential.

Advisers estimate that couples already make up more than 40 per cent of their client base while wider family groups account for 17 per cent. However advisers expect these figures to rise as a result of pension freedoms – two thirds expect to advise more couples in the future.

In fact the insurer’s research results suggest that the pension freedoms may have been having an impact on the numbers of couples and families seeking joint financial advice even before they came into force in April this year.

One in three (33 per cent) advisers reported an increase in couples and families in their client base over the last 12 months.

The changes to pension rules that were initially announced in March 2014 and came in to force in April 2015 not only enabled access to defined contribution pension savings lump sums for those over 55 as part of the increased flexibility, but will also allow many savers to pass on their pension pot to others tax free for the first time.

When asked to predict which aspects of financial advice would become more important to families and couples in the light of the new pension freedoms, advisers highlighted inheritance tax planning, tax minimisation and planning for retirement income as the most likely.

Vince Smith-Hughes, retirement income expert at Prudential, said: “Recent changes mean that for some people it’s now also important to involve their wider families in the planning and decision making process.

“The choices now faced by those who have saved through their working life and the implications of these choices mean that, more than ever, professional financial advice should be a valuable part of retirement planning for most people.

October 28th, 2015 | Andrew Hagger | News

With Remembrance Sunday a little over a week away many of us will again be doing our bit to help support the Royal British Legion.

As well as popping your cash into a collection box you can also donate a little extra cash throughout the year via a couple of charity linked financial products

For example Coventry Building Society has just launched its latest Poppy Bond.

This is a three year fixed rate savings bond paying a competitive 2.35% AER. As part of the deal the Coventry will donate the equivalent of 0.15% of all balances held in these accounts as at 31 December 2015 to the Royal British Legion.

Another way of giving as you go about your daily life is by using a charity credit card.

MBNA has partnered with the Royal British Legion since 2006 via an affinity card where customers earn funds for the charity as they spend.

The Royal British Legion receives an initial payment of £20 when a card is taken out through its website. On top of this it benefits ongoing revenue at the rate of 25 pence for every £100 spent on the card as well as a further £2 every year that the card account remains open.

While it may possible to earn more with a credit card paying cashback and then donating it yourself, in reality many people aren’t organised enough to follow that idea through.

October 28th, 2015 | Andrew Hagger | News

In light of the £15.4m fine handed out this week, to Dollar Financial UK, owner of the Money Shop brand, people frozen out by mainstream lenders shouldn’t fear the demise of the payday loans industry as there are better options available even if your credit rating isn’t the best.

Specialist Credit Cards

The big credit card companies will give you the cold shoulder if your credit record is below par but there are a number of specialist credit cards that can help you get back on your feet.

The interest rates are higher than standard credit cards but much less than payday loans. Tesco Bank for example charges a representative APR of 28.9% on its Foundation Credit Card and Marbles comes in at 33.8% APR.

To rebuild your credit status, you need to show that you can manage a credit card in a responsible manner, and by making payments on time EVERY month then over time your credit score will gradually start to recover..

Paying the full statement balance each month is even better as you’ll be improving your credit score without paying any interest charges in the process.

Guarantor loan

Another cheaper payday alternative is a guarantor loan with sums of between £500 and £5,000 available from Amigo Loans at a representative APR of 49.9%.

You will need to find a creditworthy friend or relative to act as guarantor for your loan and if for some reason you are unable to pay, then the guarantor becomes liable for the outstanding balance.

Amigo feeds back your payment history to the credit reference agencies, so again paying on time every month is another step towards a healthy credit score.

Finally, don’t forget your local credit union.

Although you’re unlikely to be able to borrow more than £1,000 until you’ve proved your ability to save, it’s another low cost avenue to explore if you’re shut out by mainstream banks.

Many credit union loans will cost you no more than 1% per month (12.7% APR) on the reducing balance of the loan.

To find a local credit union visit www.findyourcreditunion.co.uk and simply enter your home town and postcode details or alternatively give them a call on 0161 832 3694

If money is tight a payday loan may look like an easy solution but it’s not – always check out the smarter options first.

October 28th, 2015 | Andrew Hagger | News

Broadband bill payers who stay loyal to their providers have seen their monthly bills rise significantly, according to research by uSwitch.com.

Broadband and home phone prices for loyal customers have increased by an inflation-busting 40% since 2011, costing households an extra £61 million per month.

While new customers can cash in on competitive opening offers and a record-breaking number of free broadband deals, existing customers have experienced steep increases in the cost of their broadband and home phone.

Bill payers who have loyally stayed with their broadband providers following the end of their initial contracts are paying on average £8.59 a month – or £103 a year – more now than they were four years ago. With almost a third (30%) of people having never switched provider, this amounts to at least £61 million each month.

More than four in 10 (44%) people are unsure when their broadband contracts end, leaving them at risk of rising bills. But introducing end of contract notifications could encourage broadband users to shop around for a better deal and make savings of up to £151 per year.

The energy market introduced end of fixed deal notifications in April 2014 and, as a result, almost six in 10 (58%) energy customers ending fixed term contracts now look into switching tariffs, either with their existing supplier or by moving to a new one.

Most broadband users would like to see something similar in the broadband market. Three in five (60%) say they would like to receive reminders from their providers when their contract comes to an end. More than six in 10 (61%) claim it would make them more likely to switch if this reminder explained what the monthly charges would be increasing to.

A spokesman for uSwitch commented:“There are no prizes for loyalty. Broadband users who take the time to switch provider or tariff are quids in, but it’s a very different story for the old faithfuls who end up penalised for their inertia. And due to rising prices it’s getting worse. Broadband customers pay 40% more for their loyalty now than four years ago.”

October 22nd, 2015 | Andrew Hagger | News

Bank customers could save an average of £70 a year by switching their current account to another provider, And heavy overdraft users – who’d benefit most from switching – are the least likely to do so, despite the fact they could save up to £260, according to a new report from the Competition and Markets Authority (CMA).