September 29th, 2024 | Andrew Hagger | News

New to using credit cards? here’s a quick guide explaining how they work and the best ways to effectively manage your spending.

Understanding credit cards

The first step to staying on top of your credit card spending is to understand how they work. 

Essentially, these cards are a money-borrowing tool which enables you to make purchases with funds separate from your earnings and pay back the money at a later date. They are especially useful for large and relatively time-sensitive costs such as vehicle repair or booking holiday flights.

You have to keep up with your repayments or risk facing fines and costs spiralling out of control. Sometimes you will have to pay interest and additional fees as well as the total amount taken.

Managing your spending

Know how much you owe

Most crucial to managing your credit card spending is to know how much you owe. Awareness of how much you’ve borrowed, and any applicable interest, will help you budget correctly for your repayments and clear your debt as quickly as possible.

Opting for a credit card that tracks your spending is a straightforward way to stay up-to-date. You can connect your card to an app which gives real-time insight into your activities and balance and reveals spending or repayment trends in your data which could be improved upon.

Pay more than the minimum

Each month, your credit card provider will send you a statement of your spending including how much you owe, any interest or additional costs applied, and your balance. This statement will include a minimum repayment figure which must be met to avoid future fines.

If you’re in a position to, it’s best to pay more than the minimum. This will help to clear the debt more quickly which means you pay less interest overall and in turn, boosts your credit score. Having a good credit score gives you access to lower interest rates, higher credit limits on credit cards and better options for future borrowing such as mortgages.

Prioritise high-interest cards

Money owed on high-interest cards can quickly increase if ignored which could transform manageable repayments into unmanageable debt. A steadily growing balance can impact your ability to save and even essential spending over time.

High-interest debt is often referred to as ‘bad debt’, while low-interest borrowing is ‘good debt’. You should always prioritise paying off bad debt over saving, so clear your high-interest cards before you do any financial planning for the future. It might not feel like it, but this will save you money over time and give you peace of mind that you’re settling your bill.

Reserve for the essentials

While credit cards are a useful financial tool, they should be reserved for the essentials rather than used in your daily spending habits. This will ensure clarity on what you’ve used them for and keep repayments and additional costs to a minimum. When you can cover payments using your debit card and emergency fund without impacting your financial health, you should do so.

September 29th, 2024 | Andrew Hagger | News

New research reveals that Preston and Lincoln rank joint first as the least frustrating places for car commutes.[1] They scored 7.9 out of 10 for commuting reliability, thanks to their low fuel and parking costs, few traffic delays, and many road surfaces being in good condition.

The index, by Go.Compare Car Insurance, ranked 109 places in the UK based on the factors commuters named the most annoying when driving to work. This allowed it to find the country’s best places for commutes.

A survey by the comparison site revealed that half of UK drivers use their car to travel to and from work.[2] The majority of these commuters said traffic congestion was their biggest pet peeve, with 62% pinning it as their top frustration.

Poor road conditions and constant roadworks followed closely behind, bothering 61% and 50% of respondents, respectively. Aggressive drivers, high fuel costs, and parking issues also rank high on the list of annoyances.

The most pleasant cities for car commuters:[1]

Preston and Lincoln top the list as the most pleasant places to commute by car, with a score of 7.9 out of 10. Lincoln has the fewest road delays in the nation, with just 19.4 seconds lost per vehicle mile,[3] and only a quarter of its roads were reported to have poor surface conditions.[4] Preston’s roads are slightly better with less than a quarter (24%) being in poor condition.

On top of that, parking and fuel costs are also incredibly low. Fees to park for an eight-hour work day in Preston averaged at £7.15,[5] and petrol only sets back commuters an average of 140.5p per litre, with diesel costing an average of 146.8p.[6]

In third place is Milton Keynes. The Buckinghamshire city boasts below average parking costs at £9.75 for an eight-hour period, and has shorter average road delays than Preston. It also has better levels of road health with only 17% of its surfaces being in poor condition. But, its higher fuel costs push it down the list. Petrol costs an average of 145.9p and diesel costs 150.2p per litre – both above the national average.

Darlington has slightly higher levels of road health compared to Preston and Lincoln, with only 22% of its roads having poor surface conditions. But it has significantly higher road delays with 31.1 seconds per vehicle mile spent in traffic. Fuel costs are also higher compared to Lincoln and Preston. Petrol in Darlington will set you back an average of 145p per litre and diesel costs 149.8p.

Tom Banks, car insurance expert at Go.Compare, said: “Many drivers might not realise that living in cities with high traffic rates, fuel costs, parking costs, and poor road conditions can often affect your insurance premiums as well.

“Places with poor road conditions and higher traffic rates will charge you more than average for insurance. The national average for car insurance is around £424. London has some of the highest annual insurance costs, with median premiums 62% higher than the national average, setting drivers back around £686 a year.[7]

“But places like Lincoln and Preston have median insurance premiums of only £341 and £408, respectively. It might not be at the forefront of someone’s mind but these factors are worth considering when moving home or even when looking for a new job.”

Find the full list of cities and their rankings on the Go.Compare website.

September 16th, 2024 | Andrew Hagger | News

This Autumn, American Express is offering Cardmembers the chance to explore and save on their next day out with the launch of ‘Amex Days Out’. Eligible* Cardmembers can receive 10% back every time they book at a range of popular attractions across the UK – ranging from theme parks to cultural sites and beyond.

This Offer is valid at over 25 participating UK attractions, including Alton Towers, The Dungeons, London Eye, Eden Project, Silverstone Museum, Sea Life, Shrek’s Adventure, Thorpe Park, Titanic Belfast and Warwick Castle. The offer is also valid at Viator for UK-based experiences. A full list of participating locations can be found here.

The Offer applies to payments made for online ticketing or in person at selected locations**, and there is no limit on the number of times the Offer can be used. Furthermore, Cardmembers must book by 17 November 2024, however they do not need to actually visit the attraction by this date.

To get the saving, Cardmembers simply need to save the offer to their Card via the Amex^® App or online at americanexpress.com where they can also browse dozens of other shopping, travel, and entertainment offers. Eligible Cardmembers will see the Offer on display and will receive 10% back (including any booking fees) once the purchase is made using their American Express^® Card.

Dave Edwards, Vice President, American Express, commented: “We know our Cardmembers really enjoy a day out, and our latest Amex Offer helps them to make savings as they do just that. With a wide variety of some of the nation’s top attractions included, and the ability to book ahead – whether that’s for half term, the festive break or beyond – we think this offer will be really appealing to families and friends across the UK who value being rewarded on their spending.”

September 13th, 2024 | Andrew Hagger | News

Despite the financial pressures facing young people, NatWest’s latest Savings Index reveals younger generations are building positive savings habits, breaking traditional taboos around talking about money, and seeking innovative ways through social media to create a more secure financial future.

The survey of 10,000 people across the UK found how 18-34-year-olds are dealing with the challenges of saving money and the findings show how young Brits are showing resilience and creativity in their approach to developing a savings habit.

Younger people are increasingly willing to talk openly about their finances. Nearly nine in ten (86%) of those under 34 regularly discuss their savings and financial goals. This is a shift away from the traditional taboo surrounding money conversations, suggesting that young adults are more comfortable seeking advice and sharing strategies to improve their financial well-being.

The younger generation is also turning to social media for financial advice and inspiration. Among 18-24-year-olds, nearly one in five (17%) look to social media for tips on how to save and manage money.

Millennials (aged 35-44) are particularly focused on saving, with one in four (24%) managing to set aside between £200 and £500 each month. This age group is often balancing the demands of career progression, family, and homeownership.

Lewis Broadie, NatWest Savings Expert said: “It can be tough for young people to save at the moment but it is clear there is an appetite for saving and young people are finding innovative ways, through social media platforms like TikTok, to find good ideas on how to kickstart a savings habit. Whatever your stage in life we encourage you to set a clear goal and regularly save what you can.”

NatWest has recently become one of the first partners to sign up to the Money and Pensions (MaPS) UK Savings Charter which aims to build a nation of savers through raising the profile of savings and financial wellbeing to consumers. NatWest offers a range of savings tools to help savers either start or continue their savings journey including:

• Round Ups, which automatically rounds each transaction to the nearest pound and saves the difference. Customers can also set this to double the amount saved with Double Round Ups.
• Savers can take advantage of NatWest’s Digital Regular Saver which offers 6% interest on savings and help to build a regular savings habit.
• Savings Goal tool which supports customers to put a plan in place to achieve their goal.
• A free and confidential Financial Health check to get tips and suggestions on how you could improve your finances.

View the full NatWest Savings Index for more results on the UK’s savings habits, as well as tips and advice around budgeting towards savings goals.

September 12th, 2024 | Andrew Hagger | News

With many students heading off to university for the first time this September, shopping experts at MyVoucherCodes have put together a guide on how freshers can navigate their newfound financial freedom, and save a few pounds.

From saving cash on those all-important books to tips on socialising without stretching the purse strings, shopping expert Sarah-Jane Outten has put together her top tips for saving money as a fresher.

Sarah-Jane said: “For those heading off to university for the first time, the first few weeks can be a really exciting and nerve-wracking time. There’s so much to look forward to, but we also know that it can be a costly time for many, which is why we have compiled our top tips for students to be spending savvy this September.”

Top tips for students to save money:

• Take advantage of student discounts: The moment you have your student email address and a student ID it’s time to start taking advantage of the offers you can get. Plenty of shops will allow you to double up on savings and use a student discount on top of any other sales they may have. Shops like Boots also allow you to simply link your student ID to your Advantage card to get 10% off. Elsewhere Routledge, Adidas, Levi’s, and Acer all offer student discounts.
• Never pay full price for books: Whether you need science textbooks or poetry anthologies, the chances are someone else has the book in good condition and doesn’t need it anymore. People often sell their old books on Facebook university groups so take a look there. Ebay is also a good place to get second-hand books – make sure to look on voucher code websites like MyVoucherCodes to see if there are any codes you can use too.
• Grab freebies at freshers’ fairs: From free pens to pizza, freshers’ fairs are a great place to find out about clubs and societies you might want to join, but also to grab yourself some freebies and see if there are any discounts on things like local gym memberships.
• Plan and prepare your meals: Bulk cooking your dinner and planning them for the week is an easy way to save money but with the cost of meal deals rising, prepping your lunches is another way you can cut down on your spending. Even grabbing a meal deal three times a week could set you back more than £500 a year. Taking leftovers onto campus or making a large batch of salad at the start of the week could save you hundreds across the year – Morrisons is offering an exclusive £17 off for new customers when they spend £80.
• You could also consider getting a food subscription with your house or flat mates with companies such as Gousto and HelloFresh and cook together and make some great savings, as they are currently offering 60% off new subscribers with MyVoucherCodes.
• Food shop in the evenings: While it’s no secret that you should never do a food shop when you are hungry, heading to the supermarket in the evenings means you can take advantage of the reduced food items. Every shop is slightly different so get to know when the discount stickers start appearing on foods and time your food shop – lots of food will be perfectly fine to eat still and save you money. There are also plenty of vouchers for supermarkets at MyVoucherCodes including an exclusive £14 off your first online grocery shop over £60 at Sainsbury’s and £5 off your first order of £45 or more at Iceland.
• Sign up for deals: With the majority of your time spent behind a laptop or in lectures (and on nights out), keeping an eye on the best deals out there can be difficult. Signing up to your go-to brands’ mailing lists, and money-saving websites like MyVoucherCodes is a great way to get offers straight to your inbox.
• Search for your accommodation in advance. Rather than leaving it until the last minute, it is certainly going to be worth looking for your student accommodation with plenty of time to spare to get the best possible choice.

To find explore more offers for students visit https://www.myvouchercodes.co.uk/student-discounts

September 12th, 2024 | Andrew Hagger | News

Savers can help care-experienced young people supported by Barnardo’s thanks to two new bonds being launched by Leeds Building Society.

With monthly and annual interest options, the two bonds which are launched during UK Savings Week, will offer an interest rate of 4.05% to savers.The Society will donate 0.10% of the account balance to the charity. That equates to a £40 donation to the charity for a deposit of £40,000.

Earlier this year, Leeds appointed the UK’s biggest children’s charity as its charity partner until March 2027.

During the three-year partnership, Leeds Building Society has committed to raising a minimum of £300,000 to support care experienced young people to find somewhere to live, learn independent living skills, continue with education, or find work, as part of a campaign called Building Brighter Tomorrows.

Leeds Building Society’s purpose is to put homeownership within reach of more people generation after generation – and that includes care-experienced people who are especially vulnerable to the risks of homelessness.

It is estimated that one in three young people become homeless in the first two years immediately after they leave care, and one in four homeless people have been in care at some point in their lives. 

Product details:

• 2 Year Fixed Rate Monthly Income Bond Supporting Barnardo’s: 4.05% Gross p.a./AER
• 2 Year Fixed Rate Bond Supporting Barnardo’s: 4.05% Gross p.a./AER

Catherine Wray, Senior Manager for Savings at Leeds Building Society, said:

“This new bond offers savers the opportunity to make a difference to care-experienced people while watching their savings grow.

“We’ll donate 0.10% of the opening account balance to help fund the amazing work Barnardo’s does to support young people.

“During UK Savings Week, we are focussed on the benefits of saving and making our members money work as hard as possible, and these new bonds offer another way for savers to take control of their finances and do good too.”

Lynn Perry, Chief Executive of Barnardo’s, said:

“This generous donation from Leeds Building Society and its members will allow us to make a huge difference to the lives of those leaving care.

“Young people face a ‘cliff edge’ of diminished support once they leave care. Many begin to live independently earlier than others and are more likely to live in unsuitable or unsafe accommodation, struggling to afford basic essentials.

“Thanks to funding like this, we can deliver much-needed support to help care leavers look forward to a brighter future.”

September 12th, 2024 | Andrew Hagger | News

New research has revealed the most commonly experienced issues drivers face when trying to sell their car privately, with hagglers being named as the most frequent hindrance. Just over a quarter (28%) of sellers said they have encountered unreasonably low offers and haggling from buyers, making it the most common problem in the poll.

The findings come from Auto Express, which ran a survey across Carwow Group asking drivers about the obstacles they’ve faced when selling their cars. The survey revealed that almost two-thirds (65%) of motorists have sold a car privately, with over a third (37%) experiencing at least one problem during the process.

After haggling, the next most commonly reported problem was no-shows. Just under a fifth (17%) of those who had sold privately encountered time wasters on their car-selling journey – people who arranged viewings or test drives but ultimately failed to show up.

In addition, around one in 10 sellers said they dealt with disputes over their vehicle’s condition, while a surprising 6% reported concerns about their personal safety when engaging with potential buyers.

Less common problems on the poll included challenges with transferring ownership (encountered by 3% of sellers) and issues with advertising or reaching potential buyers (experienced by 2%). The results underline the range of pitfalls car owners face when navigating the open market.

This follows the news that Auto Express has launched its own online car-selling service, where drivers can quickly sell their vehicles to a network of dealers.

Paul Barker, Editor of Auto Express, said: “When you just want to get your car sold, there’s nothing more frustrating that someone that mucks you around and clearly isn’t interested in paying a fair price, if they even show up at all. Getting a new car is the exciting bit, but more often than not you’ll also have a car it’s replacing, and getting rid of that quickly and for a good price when selling privately can be a time-consuming process.”

September 11th, 2024 | Andrew Hagger | News

9^th – 15^th of September is UK Savings Week. In the current environment it has become difficult for a lot of people to save as much as they would like. In fact, our research[1] of over 2,000 workers found that the biggest financial concerns for the year include not having enough savings for unexpected costs (40%) and not being able to save enough for the future (38%).

With this in mind, WEALTH at work, a leading financial wellbeing and retirement specialist, has prepared the following tips as the basis for strengthening your finances.

1) Make a financial plan
Your individual circumstances will mean that you are likely to have different financial priorities depending on your life stage. For some the priority may be saving for a deposit for a first home, whilst for others it might be saving for retirement, or for some it may be paying off debt. Many people simply bury their head in the sand, but knowing what you are saving for and putting a plan in place on how to get there, is a simple but effective way to reach your goals.

Setting up an automated payment can be helpful, as if the money is automatically leaving your account each month to pay off debt, or to go into a savings account, it becomes part of your monthly outgoings.

2)  Start with the basics
Many people struggle to understand basic financial issues. A good starting point is to look at where your money goes, everything from utility bills and insurance to food shopping and going out. Really looking at what you spend can often highlight areas you could cut back on. A great example of this is insurance, as it is often the case that someone would get a better quote by shopping around and using tools like comparison sites, but many neglect to do this.

3) Research your work benefits package
Many employers offer a range of employee benefits such as financial education, financial guidance, payroll savings, ISAs and share plans. Through auto-enrolment, many people pay 5% of their salary into their workplace pension, with an additional 3% employer contribution. However, they may not realise that some employers will also match any additional contributions (up to certain limits). Someone in their 20s can increase their pension pot by 25% by saving just 1% more if their employers were to match this. Find out what your employer offers, and which are right for you.

4) Understand good debt vs bad debt
Another important principle is understanding the difference between good debt and bad debt.  For example, a mortgage is a form of good debt – it makes sense to have a loan in order to own your home as it is a stable, easy to manage approach to long-term borrowing. However, it should still be reviewed occasionally to ensure you have a good deal. At the opposite end of the spectrum, debt with high interest payments such as payday loans and credit cards can get out of control if they are not repaid quickly.

It should always be a priority to pay off bad debt. For example, a debt of £3,000 with a rate of 18% APR, could take 10 years and 10 months to pay off if paying £52 a month, with total interest of £3,836 paid. If that monthly payment was increased to £100 a month, the debt would be paid off in 3 years and 4 months, and interest paid would be only £1,011. If this was increased to £325 a month, the debt would be paid in 10 months, with total interest of £253 paid.

5) Build up an emergency fund
A lack of savings can have a serious impact on financial resilience.  Many people unfortunately realise too late the importance of having emergency savings. Ideally, you should have 3-6 months of savings that can be accessed at short notice should you or another member of your household lose your job, become ill, or for any unforeseen expense e.g. replacing the boiler or expensive car repairs.

Jonathan Watts-Lay, Director, WEALTH at work, comments;
“Many people don’t recognise the importance of financial resilience until something happens which highlights how vulnerable their finances are. Hopefully the five steps we have outlined will help those who want to take control of their finances and put themselves in a more secure position in the future.”

He continues, “Many employers now offer their staff financial education and guidance including workshops, digital tools and helplines. This can help them understand some of the key issues to help build their financial resilience in the future. Topics can cover a range of financial matters such as debt & money management, managing savings and retirement. Speak to your employer to find out what support is available.”

September 6th, 2024 | Andrew Hagger | News

A staggering 67% of UK adults either don’t have a Will or have one that’s out-of-date, a national Will-writing charity has revealed.

Will Aid’s poll, which surveyed more than 2,000 people across the country, found 56% haven’t made a Will, and 11% admitted theirs did not reflect their current wishes.

Financial pressures seem to be holding people back – with 21% citing the cost of instructing a solicitor as the reason they haven’t sorted a Will.

Other reasons included believing they had nothing worth leaving (27%), never finding the time (18.5%), feeling uncomfortable talking about death (16%) and concerns about the process being too complicated (16%).

Nationally, the average time since people last updated their Wills is six years, with nearly 20% admitting they’ve never updated theirs.

Only a third (34%) of those surveyed have updated their Will in the past three years.

Parents with children over 18 last updated their Wills an average of seven and a half years ago, while those with under 18s averaged four and a half years.

Peter de Vena Franks, Will Aid Campaign Director, said: “Making a Will is a final loving act for those you care about. It provides a clear plan and guidance for your family after you’re gone.

“We know thinking about death is uncomfortable and considering your final wishes can be daunting, but not having one can lead to confusion and distress among family members and beneficiaries, at an already upsetting time.

“The statistics on outdated Wills are worrying, because circumstances change, and it’s crucial to keep your documents up to date to ensure they reflect your current situation.”

Trusha Velji, of Touch Solicitors in Oldham, has been taking part in Will Aid for 15 years and her firm helped raise more than £43,000 during Will Aid 2023.

She said: “Having a Will is essential for ensuring your wishes are respected and providing peace of mind for you and your loved ones and keeping that document up to date is vital, especially when circumstances in your life change.

“Common reasons for updating your Will might include the death of a relative, divorce or separation, having children or gaining stepchildren. We advise you to regularly review your Will to make sure it still outlines your wishes.

“Will Aid is the perfect opportunity to have your Will professionally drawn up or to have it updated, while supporting charities that help some of the most vulnerable people in the UK and abroad.

“Getting your Will drafted by a solicitor is the safest way to ensure it is done correctly and legally.

“This year, you can finally tick that task off your to-do list by securing an appointment with a participating Will Aid solicitor – it can be an in-person meeting  if there is a participating firm near you, otherwise you will be offered firms that can do it remotely, so wherever you are in the UK, you can get your affairs in order through Will Aid this year.

“It’s a straightforward and easy process, allowing you to secure your family’s future while supporting to important causes.”

The annual Will Aid campaign sees solicitors across the UK volunteering their time to write Wills throughout November.

Will Aid is a partnership between the legal profession and seven of the UK’s best-loved charities.

The initiative, which has been running for more than 30 years, sees participating solicitors waive their fee for writing basic Wills every November.

Instead, they invite clients to make a voluntary donation to Will Aid – a suggested £100 for a single basic Will and £180 for a pair of basic ‘mirror’ Wills.

Appointments are available from 2nd September, and you can sign up by visiting www.willaid.org.uk

Donations to the campaign are shared by Will Aid’s partner charities, which operate both here in the UK and around the world.

September 6th, 2024 | Andrew Hagger | News

A recent survey found that two-thirds (67%) of Brits are unaware that contents insurance will only cover a move if a professional removals company has been used.[1] The study into common moving mistakes shows that many residents are at risk of a lapse in insurance cover while moving house.

Go.Compare Home Insurance surveyed both homeowners and renters and found that they were similarly oblivious of this rule, with 63% and 67% stating as such respectively.

Over half (54%) of homeowners hire a removals company when moving house, according to the insurance comparison site. But, only around a third (35%) of renters do the same. This DIY approach to moving combined with common mistakes could lead to possessions being damaged or lost.

Overall, over half (53%) of all residents admit they don’t use a removals company, meaning items might not be covered by their insurance policy when they relocate. One-quarter (26%) of movers admitted to losing possessions in a previous move, while 29% have either dropped and broken or damaged an item in transit. Forgoing a removals company means the damage caused by these simple mistakes would not be covered by contents insurance.

Nathan Blackler, home insurance expert at Go.Compare, said: “Moving house can be a stressful time, with lots to think about and plan for, so, insurance might not be the first thing on your mind. But, it’s important to double-check your policy and what’s included. Many contents insurance policies will only cover items during a house move if you hire a professional removals company. Even so, depending on the overall value of your possessions, you might want to consider having additional cover, just in case.

“Those who opt to skip professional help might think they’re saving money, but it’s easy to make mistakes during a move, often resulting in things getting damaged or lost. In these cases, realising items won’t be covered under your insurance policy can add expense and frustration to an already stressful situation.

“Regardless, it’s a good idea to minimise the risk of damage by properly packaging your possessions, considering the order in which boxes are placed within a vehicle, and labelling correctly to stay organised. You should also allow enough time to load and unload everything, so you or the removals company aren’t rushed.”

For more information on common mistakes made when moving house and a helpful checklist visit Go.Compare.

-​​ENDS-