March 16th, 2022 | Andrew Hagger | News

iCarhireinsurance.com, a leading supplier of car hire excess insurance, has compiled an essential checklist to ensure holidaymakers get the best deal on their hire car in 2022 and avoid car hire pitfalls.

Shop around and consider booking early – There is a global hire car shortage this year, and increased demand as people return to travel, so it is wise to shop around, and book early.  Use a price comparison service or car hire broker to check prices.

In Nice, this summer there is almost £300 difference in the weekly hire cost from two leading rental companies (Hertz £749, whilst Europcar is £451) according to iCarhireinsurance.com’s* study of European car hire costs.

Check location – When booking make sure you aren’t booking from a company at the airport, or near a railway station if you can help it, as these are often more expensive.

Don’t waste money on unnecessary extras – Make sure you take your sat nav and child car seats with you, and don’t have an extra driver on the policy unless you really need to. These extras, if bought from the rental desk, can add hundreds to the overall cost.

The iCarhireinsurance.com study found that this summer an extra driver costs on average £57, but is £81 with Hertz in Barcelona. Sat Navs cost on average £71, but are £108 with Europcar in Nice, and child car seats cost on average £57, but are £87 with Budget in Munich.

Excess Insurance – Drivers are liable for the excess amount if a hire car is damaged or stolen, which can be up to £2,000. Excess insurance is important so you don’t spend your holiday worrying if the car might get damaged, but consider buying it advance from a standalone provider, like iCarhireinsurance.com, which is normally considerably cheaper and usually offers more comprehensive cover.

Many hire car companies offer two policies, Super Damage Waiver (£126 on average) and Tyre and Windscreen cover (£36 on average) totalling over £160 week. This is nearly six times more expensive than a policy from a specialist excess insurance provider, like iCarhireinsurance.com, which charges only £27.96 for a week’s policy (or £3.49 a day*), and which covers damage, theft, as well as tyre and windscreen cover.”

Use a credit card – Use your credit card when booking your hire car to gain Section 75 protection. This means the credit card provider will protect purchases over £100, meaning you could get you money back if there is a problem.

Check the fuel policy – Make sure you know the fuel policy before you drive away. If you need to return it with a full tank, make sure you do, as the penalties can be expensive.

Mileage restrictions – If you are planning a driving holiday make sure you check for any mileage restrictions so you don’t get caught out.

Check the Vehicle for Damage and Take Photographic Evidence – To avoid unfair damage charges, car hirers should check vehicles thoroughly at pick-up and return, and take photos. iCarhireinsurance.com’s free travel app for travellers, called ‘iCarhire’, takes date and time stamped photographs which can then be used as evidence in the event of a dispute or claim.

1. Complain to relevant association – In the event of a dispute with a car rental company in Europe, contact The European Car Rental Conciliation Service (ECRCS), but it will only deal with complaints about member companies (usually the larger operators). Also, you do need to have booked direct with the car hire company. In the UK, contact the British Vehicle Rental and Leasing Association (BVRLA) who again can assist with complaints about its members.

1. Clean the car – Anecdotally there are increasing reports of car hirers being fined for returning dirty cars. Try to keep the car in as clean a state as possible and take away rubbish and excess dirt.

Ernesto Suarez, CEO and founder of iCarhireinsurance.com, said: “Foreign travel is returning and the demand for hire cars is going to be high this summer. However, one of the knock-on effects of the pandemic is a shortfall of hire cars which means it’s more important than ever to shop around, book early and save money on the any extras where you can.”

March 10th, 2022 | Andrew Hagger | News

It’s one month to go before the end of financial year, the traditional time for savers to make the most of their current tax-free allowance and start thinking about their ISA (Individual Savings Account) plans for the year ahead.

Brits have continued to build on their savings pots with the nation stashing away £7.7billion in January alone. Now more than ever with the current pinch on peoples’ living costs savers may be wondering how they can make their money work harder.

However, with UK interest rates still relatively low compared to historic averages and returns for cash savings increasingly difficult to find, Yorkshire Building Society suggests a quick fix for customers hoping to make their savings work harder.

According to the latest CACI data a huge £455billion is sat in current accounts, with the average balance at £5,600 generating an average interest rate of 0.06%. ISAs could be one way to help Brits make the most of their savings. With many accessible ISA accounts currently paying around 0.50%, savers could be missing out on £2.0billion more interest a year by not switching their £5,600 current account savings into an accessible ISA.  With many limited access and Fixed rate ISA options available paying above 1% the amount of interest earned could also be doubled for those savers who don’t require immediate access to their money.

ISAs were developed to create a safe place to keep savings where the taxman couldn’t eat away at the interest. With the flexibility of ISAs improving massively overtime, ISAs are highly beneficial in that they are just like any other regular savings accounts. There is no need to lock cash away for extended periods of time to receive the benefits and, just like current accounts, savers can withdraw money whenever it’s needed.

Chris Irwin, director of savings at Yorkshire Building Society said “It’s no secret that savers are having a tough time at the moment with unfavourable market conditions, so making the switch from low paying current accounts into an accessible ISA is one way savers can make their money work harder but also support those who value access to their funds throughout the year.”

“With many people managing to put away extra savings throughout the pandemic, making those funds now work as hard as possible will be even more crucial in the current financial climate. There’s a lot of things that are out of savers’ control such as rising inflation, increases to energy and food prices – it’s important savers focus on elements they can control and think about how they can make their hard-earned cash go as far as possible. We are encouraging customers to review their savings and get the information they need to make their money work for them.”

March 2nd, 2022 | Andrew Hagger | News

TotallyMoney and Cashplus today announced the launch of a new credit card to market, in a bid to help close the £6bn SME lending gap where 65% of new businesses are refused credit.

Enabled by an API integration between the two parties, the product features guaranteed rates, guaranteed limits, and eligibility checking. This means applicants will know exactly what they’re applying for and their chances of acceptance.

The UK’s 3.2m sole proprietorships make up 56% of the total private sector business and are often deemed “too risky” by other mainstream lenders. The new Cashplus card offers limits of up to £5,000, with zero monthly or annual fees, and 1% cashback on purchases. Customers will also receive up to 56 days’ interest-free credit, as long as they pay in full each month.

This new, transparent, FCA regulated credit option comes at an important time with inflation hitting a 30-year high, following the covid crisis which is estimated to have cost SMEs £127 billion§. This coincided with 11% of the UK’s sole proprietorships closing in 2021.

Alastair Douglas, CEO of TotallyMoney comments:

“We’re very excited to launch the new Cashplus card, whose target customers are often overlooked and neglected by many mainstream lenders. Sole traders make up more than half of total private sector businesses, so it’s essential that they’re given the support they need.

“This is especially true now, with soaring inflation impacting everybody, from consumers, to small business owners, to big retailers. Nobody’s safe from increasing costs, and the pressure this can add to people’s finances.

“Integrating the Cashplus card via an API has meant we can enable features such as guaranteed rates, and limits. Along with pre-approval, customers will know exactly what they’re applying for, and their chances of acceptance.

“At TotallyMoney we’re on a mission to help everyone move their finances forward. By partnering with Cashplus Bank to bring a new product to an often overlooked audience, we’re moving a step closer to our goal of enabling fintech for everybody.”

Rich Wagner, CEO, Cashplus, commented:

“Our 1% reward credit card is a powerful tool for the sole-traders that play such an important role in powering the UK economy yet are too often overlooked by high street lenders, particularly as they work to get their business up and running. This partnership with TotallyMoney will allow us to reach an even wider audience of entrepreneurs and independent traders and marks another step in our drive to close the UK’s £6bn SME lending gap.”

February 28th, 2022 | Andrew Hagger | News

The increased cost of living is the main barrier for adults maintaining a savings goal, with those in the ‘squeezed middle’ age bracket hit the hardest, Paragon Bank research has found.

Paragon’s survey of 2,000 adults revealed three in five (62%) admit to struggling to maintain savings commitments, with 33% highlighting the increased cost of living was the main obstacle. Other barriers included a lack of income (28%), high outgoings (18%) and prioritising debts (15%).

Those aged between 35 and 55 were most likely to cite the cost of living as the main hindrance to saving, with 37% of respondents in this category reporting problems compared to 31% of those aged between 18 and 34 and 55+.

In addition, just under three quarters (74%) of adults report having financial anxieties about 2022, with inflation the main cause of concern. The most common financial anxiety is the cost of bills increasing (51%) followed by an increase in the cost of goods and services (44%) and general economic uncertainty (23%).

Women are more likely than men to be anxious the about the cost of bills going up (56% vs 46%) and the increased cost of goods and services (49% vs 39%).

Again, those aged 35-55 were more likely to be worried about the cost of living than other age brackets. Nearly three in five (57%) of this age bracket are worried about rising bills (18-34: 40% / 55+: 53%), whilst just under half (48%) said they were concerned about the increased cost of goods (18-34: 36% / 55+: 47%).

Paragon Bank Savings Director Derek Sprawling said:

“The rising cost of living is impacting us all and putting pressure on household budgets. Maintaining monthly savings levels or committing towards a new savings in this environment can be challenging, but it’s important that people keep focused on their finances and make the most of their money.

“Over 70p in every £1 saved into Easy Access accounts in the UK is languishing in accounts paying 0.1% or less – less than seven times the best rates available in the best-buy tables¹. Savers in low paying accounts are missing out on considerable interest so it’s important for people to look for the best deal. Taking the time to search for better paying accounts can pay off, particularly as savings accounts can grow quickly.”

February 25th, 2022 | Andrew Hagger | News

Aldermore bank has today increased the rates on a range of its fixed rate and individual savings account (ISA) products, providing savers with choice for their medium- and longer-term savings goals.

Our Fixed Rate Savings accounts provide competitive long term rates that protect your hard earned money from interest rate fluctuations so you’ll always know exactly how much interest you’ll earn:

• 2 Year Fixed Rate will increase from 1.50% to 1.70%
• 3 Year Fixed Rate will increase from 1.65% to 1.85%
• 4 Year Fixed Rate will increase from 1.67% to 1.90%
• 5 Year Fixed Rate will increase from 1.70% to 2.10%

Our Fixed Rate Cash ISAs give you guaranteed interest rates over a choice of fixed terms, and the interest you earn is tax free and doesn’t count towards your Personal Savings Allowance:

• 2 Year Fixed Rate ISA will increase from 1.25% to 1.35%
• 3 Year Fixed Rate ISA will increase from 1.40% to 1.45%

Ewan Edwards, director of savings, Aldermore comments: “With the cost of living on the rise, Aldermore is committed to supporting savers by providing competitive rates to help them achieve their savings goals. With the end of the tax year approaching, it’s an ideal time to sit down and review finances, to set out both short, medium, and long term savings targets whilst considering how best to achieve them.

“Finding the right timeframes for your savings goals is a useful habit to ensure the best returns are achieved. People will have many plans for the future, so it can be advantageous to split savings into smaller pots and put them into different products that suit the timings for reaching those goals. This will also encourage people to regularly review their savings so they can continue to update the products they’re using with each new savings goal allowing their hard-earned cash to work as hard as possible.”

February 15th, 2022 | Andrew Hagger | News

New figures reveal that the average petrol price in the UK has surpassed 148p per litre for the first time. 

According to the AA, the cost of petrol has now jumped to 148.02p per litre on Sunday – rising above the previous record high of 147.4p per litre.

Following this news, Nick Drewe, money-saving expert at WeThrift has shared six ways drivers can cut down on their fuel costs. 

1. Use cashback schemes and loyalty cards

From Texaco to Sainsburys, various petrol stations and supermarkets offer cashback schemes and loyalty cards to encourage customers to use their services.

Every time you buy fuel at a particular station, you simply have to swipe your loyalty card and points are then awarded.

BP, for example, offers a loyalty scheme where if you earn 200 points, you’ll be able to claim £1 off your fuel or shop purchases. With a Tesco Clubcard, you’ll be able to earn one point for every £2 spent every time you fill up at the supermarket’s petrol station.

As the nation continues to grapple with the accelerated cost of living, these incentives can go a long way.

2. Be conscious of how much you’re topping up

Every time you fill up your tank, make sure to only top up what your car requires at the time. A top tip to deciding the correct amount of fuel you need is to keep a consumption notebook in your glove box or a record on your phone.

For every visit to the petrol station, note down how much fuel you put in your car to get from A-B. In this ever-changing economy, be sure to record your fuel consumption in litres and not in pounds.

3. Select your sat nav app carefully

If you’re driving in an unfamiliar location, make sure you use a sat nav to avoid going in circles and wasting your running costs.

Sat navs are great devices for saving money because they will show you the quickest route to your destination. They can also work in real time and help you avoid getting stuck in traffic jobs, and some models will even select the most economical route to help you avoid fuel-stealing obstacles such as large hills and heavy stop-start traffic.

Motorists will be pleased to know that there is a new ‘eco-friendly routing’ feature on Google Maps, which instructs drivers on the most economic route to take.

4. Fill up your tank at supermarket

Supermarket fuel is often cheaper than branded fuel.

Whilst supermarket fuel usually comes from the same refineries as the big brands brands like Shell or Esso, these brands will usually add a range of special additives to their own fuels in order to improve efficiency and performance – which is why they tend to cost more.

5. Inflate your tyres to the right pressure

If you have the incorrect tyre pressure, you’ll be using more fuel to keep your car running smoothly. This is because of the added friction while driving that comes from a misshapen tyre.

To know what the recommended tyre pressure is for your vehicle, first check your vehicle handbook.

Sometimes the pressure could be printed either in the sill of the driver’s door or on the inside of the fuel tank flap.

Your vehicle manufacturer may also suggest different tyre pressures for your front and rear tyres so it is always worth doing your research.

6. Drive smoothly

One of the easiest ways to save on fuel is to drive in a smooth manner. Be sure to accelerate smoothly and avoid hard breaks to limit your fuel consumption. Shifting gears from time to time can also help you to avoid throwing away your fuel.

If you’re driving a new model, check if your vehicle has a gear-shift indicator, as this will inform you of the most economical and efficient point to change your gear. As well as this, there are apps such as Aviva Drive that lets you record your driving style and give you indications on how to improve it.

You may also be interested in this in-depth guide called “Driving Ethically: Understanding the sustainability of electric cars”

It offers some helpful information on how electric vehicles can lower emissions in the automotive industry and tips for buying and owning your electric car responsibly.

February 14th, 2022 | Andrew Hagger | News

Recent research from RCI Bank, the digital savings bank, has found that 74% of UK adults who aren’t confident about reaching their financial goals this year think the biggest barrier for them to do so will be the rising cost of living. This comes as the latest ONS figures released in December 2021 showed an annual inflation rate increase to 5.4%, with expectations of another rise when the January figures are released on Wednesday.

In addition to the rising cost of living, other reasons people aren’t confident they’ll achieve their goals this year are that they are in too much debt (22%), they are finding it difficult to manage their spending (18%), and the lack of support from the government (17%).

Despite this, the number of people making financial plans this year is almost four times higher than last year (67% vs 17%), as consumers want to put more money into savings (35%), spend less money (32%), review their finances more frequently (19%) and increase their financial knowledge (11%). On average UK adults hope to save up to £6,767 in the upcoming year, with 10% wanting to save between £2,001- £3,000.

Two fifths (40%) of those who made financial goals last year saved on average £3,372 ** more than they planned. The top ways people managed to save more last year included making a budget for the year (38%), setting up a clear savings goal (35%),and recording their outgoings to see where they could make savings (32%). Others made sure they paid off their debts before they started saving (27%), researched savings products to get the best rates possible (26%), and set up a standing order to pay into a savings account regularly (24%).

Tafari Smith, Head of Savings at RCI Bank comments: “Despite the current economic pressures, it is positive to see so many more people are making financial plans this year. It is encouraging to see more UK consumers are more in touch with their finances, however, for some it is likely drawn out of necessity. Our research shows that what helped people achieve their goals last year was having a clear budget, setting up clear goals, and keeping track of their finances.

“Just earlier this month Ofgem announced the steepest increase ever in household bills, a 54% increase in the energy price cap, leaving 22 million households out of pocket. In the current inflationary environment and as the cost of living continues to rise, saving may not be a priority or even possible for everyone right now – but engaging with your finances where possible is always a positive step to take.”

February 11th, 2022 | Andrew Hagger | News

“A recent survey was taken that asked 1,000 people if having a smart meter installed gave them stress and anxiety. Nearly 30% answered yes, but now we wonder if this will increase if people have to start paying more?

The new energy price cap is to go up c.54% which could be detrimental to the vulnerable people in our society. Many pensioners and low-income families could struggle with this and it might leave some families without gas and electricity because they simply cannot afford it.

The survey also asked if people were looking at alternative options to reduce usage and out of the 1,000 people that answered, 73% said yes. This is when we decided to speak with an energy expert to find out what other options people could have and why some might be better than others.”

Karl Tippins, Financial expert at Pension Times.

Speaking with Ann Christian, aged 69, about the energy price cap these are her comments:

“It is a bit of worry, as I don’t want to have to start thinking – can I afford to heat my home? It does get very cold some days and I don’t want to have to start rationing my heating in order to afford higher energy bills.

My home is an older building that is harder to heat so it takes a lot longer and then I’ve got my health to think about. It’s not easy being old but I’m sure me and my husband will think of something, even if it’s not ideal.”

What the Energy Experts are saying:

“It’s understandable that some people are worried about the energy price cap going up. However, no matter how tempting it is to look for a new energy company to save a few more pennies, you won’t cut your bill by switching. Instead, you should spend most of your time doing simple things to help save money on your energy bills.

The first step would be to make sure all your phone chargers are unplugged, don’t leave things on standby and use energy-efficient light bulbs. Remember, if you use more, you’ll pay more.”

Chris Harvey, Energy expert at Stelrad.

February 4th, 2022 | Andrew Hagger | News

One in five UK adults plan to buy a property in 2022, new research from Market Financial Solutions (MFS) has revealed.

The bridging lender commissioned an independent survey among more than 2,000 UK adults. It found that 18% intend to purchase property this year, including 34% of those aged 18-34.

Among renters, 14% plan to buy their first home. Among existing homeowners, 14% plan to sell up and move home in 2022, while 6% hope to purchase an additional investment property.

Of those planning to buy a property this year, 43% say they will look in a different area to where they currently live because the rise of remote working means they do not need to be in the same location. Half (50%) want a property that has more space as the pandemic means they spend more time at home.

Two thirds (66%) of prospective homebuyers are worried about inflation and rising house prices, which they say will hinder their chances to buy in 2022. Further, 38% said that the complexities and long waiting times involved in getting a mortgage are a major challenge when looking to buy a property.

MFS’ research also revealed how UK adults expect house prices to perform over the coming 12 months. The vast majority (63%) believe they will rise, with 29% predicting they will stay roughly the same and 8% thinking they will fall.

More generally, the study showed that 40% of UK adults say the pandemic has changed what matters to them in a home – this is particularly true among those aged 18-34 (53%).

Paresh Raja, CEO of MFS, said: “After a frenetic year for the property market in 2021, in which house prices rose sharply, there is a great deal of speculation as to how 2022 will unfold. Our new research shows we should not expect any sudden slowdown; the fact that 18% of UK adults – over 9 million people – intend to buy a property in the coming 12 months shows that demand remains sky high.

“Yet our research also underlines the challenges that stand in front of prospective buyers. The so-called ‘race for space’ means that competition for certain properties – such as houses with gardens and spare rooms for home offices – will be fierce. Meanwhile, rising inflation, the potential for further interest rates hikes, and delays in securing mortgages, could also act as stumbling blocks for those looking to buy property.

“Forward planning will be crucial for anyone looking to buy a new home or invest in property. Having their finances in order and, if required, a lender in place will ensure they can act with speed and confidence, which will improve their chances of being successful in a competitive market.”  

January 26th, 2022 | Andrew Hagger | News

With billions of pounds set to be spent on holidays abroad this year, TotallyMoney, the credit app that helps everyone move their finances forward, is calling for holidaymakers to protect their payments with Section 75 of the Consumer Credit Act 1974.

• Following the relaxing of covid restrictions, the number of holiday bookings has spiked by up to 200%*
• Brits are predicted to spend a massive £41bn on foreign travel in 2022**
• With travel businesses reporting turnover 78% lower than pre-pandemic levels†, some could be teetering on the edge,  potentially following the likes of Thomas Cook, Flybe, Wow Air, and Laterooms, who all collapsed in recent years‡
• Section 75 protects all credit card transactions between £100 and £30,000. This includes holiday companies and airlines going bust, or cancellations due to covid
• It only covers customers paying with a credit card — not cash, debit cards, loans or buy now pay later services

As the impact of covid continues to unfold, and with inflation hitting a 30-year high, customers can’t afford to gamble with their finances and should protect all payments where possible.

The credit card payment guard

TotallyMoney is urging Brits to cover holiday bookings, both domestic, and international, with Section 75. This covers any purchase made with a credit card costing between £100 and £30,000.

Section 75 means the credit card company and supplier are equally liable for any breach of contract. Even if you only put down a deposit on your credit card, paying the rest by other means, you can still claim back the full amount.

Your claim will only be successful if the Debtor-Creditor-Supplier (DCS) link isn’t broken. This means that the exchange of money between you, your credit card company, and the service provider must be maintained. So, you won’t be able to claim when booking through third parties such as Booking.com or Expedia, or if you pay via PayPal.

Section 75 is only valid on purchases using credit cards, and not debit cards, loans or buy now pay later services. It doesn’t cover just travel, but all other qualifying purchases. This could range from buying a faulty dishwasher or ordering a new television that doesn’t turn up.

TotallyMoney’s five Section 75 tips are below, with a link to its in-depth guide here.

Buy now, spread longer

This recommendation comes at a time when TotallyMoney customers are 31% more likely to be eligible for a credit card now§, compared to the beginning of the pandemic.

With only part of the payment required using a credit card, customers won’t necessarily need a high limit. However, they should always check their pre-approved offers, to see how likely they are to be accepted, before applying.

Additionally, some of the most competitive purchase card offers seen in years are available now, customers can buy now and spread payments, interest-free, for up to two years. That gives extra breathing space, as well as payment protection.

Alastair Douglas, CEO of TotallyMoney comments, 

“With the impact of covid still playing out, we can’t take anything for certain. That includes booking holidays with a guarantee we’ll be able to travel. However, customers making payments with credit cards can be confident, knowing that if anything does go wrong, they can make a claim for their money back under Section 75.

“Claiming requires no excess, and customers will be covered if there’s a breach of contract. This includes if the holiday firm goes out of business, the airline goes bust, or travel is cancelled as a result of covid measures.

“At TotallyMoney, we’re on a mission to help everyone move their finances forward. By protecting larger purchases with Section 75, customers can ensure they don’t get caught short when a supplier fails to keep to their side of the bargain.”

Five Section 75 Tips

Here’s our top five things to remember for Section 75. We also have a full guide here.

1. £100 to £30k

Individual items and purchases costing more than £100 and up to £30,000 are covered under Section 75. So, whether it’s a cancelled flight or an all-inclusive family holiday, as long as you paid part of it on a credit card, you could be reimbursed the full amount if the company goes bust.

2. Just credit

Unless at least partially paid on a credit card, Section 75 doesn’t apply to purchases using debit cards, cash, loans, or buy now pay later services. It’s only valid when using credit cards.

3. Rule number 3, no third parties

Buying through a third party, like travel agents, won’t offer Section 75 protection. You need to have paid the company directly (so purchases made through PayPal, for example, aren’t covered).

4. Part pay for full cover

Remember that only part of the purchase needs to be paid with a credit card. So for instance, if you pay the deposit with a credit card and the rest debit, should anything prevent you from settling the balance (like the airline collapses), Section 75 lets you claim the full amount. Not just the part paid on credit.

5. Not just travel

You’re covered for all qualifying purchases. Whether you buy a new television and it doesn’t turn up, or if you buy a faulty dishwasher. If you’ve used a credit card, you could be protected under Section 75 of the Consumer Credit Act 1974.