The Bishop stated that he was shocked about the numerous individuals who currently have to go to a food bank.  It should not be something that happens in this day and age, given the advancements that have occurred.  Unfortunately, this does not seem to be the case as many residents are struggling with their monthly payments, needing food, and going for payday loans that make the situation worse.

Wonga did not comment about the Bishop’s statement.  They did state, however, that they do what they can in the current society to provide credit and that they urge their consumers to use the credit in a responsible way, but that they cannot determine how the money is used by the consumers once it is in their pockets.

Personal Finance & Money Saving Blog

Bishop of Durham said payday loan rates sinful

Unfortunately, not all websites are equally well-positioned to assist consumers with disabilities to access these comparison features.  The latest survey conducted by AbilityNet has revealed that several major comparison sites did not meet “minimum legal requirements for accessibility.”  Consumers with disabilities use adaptive devices and technologies such as screen readers, which can assist the blind by reading webpages out loud; another common adaptive technology is voice recognition software.  Some of the sites studied by AbilityNet did not work adequately with such devices.

According to Robin Christopherson, who heads the Digital Inclusion Department at the charity: “The law is clear on this issue.  It is just as illegal to bar disabled visitors from accessing your goods and services online as it would be to keep them out of your shop in the ‘real world.’  While no company would do this knowingly, this report shows there are plenty of high-profile sites that are contravening the Equality Act 2010 by not considering their disabled customers.”

The Equality Act 2010 bars discrimination by any business that provides facilities, services or goods.  When a business website is not accessible by those who have disabling conditions, the business could be subject to a lawsuit for discrimination.  It is far better from a legal and a customer relations standpoint for businesses to make their websites fully accessible to all consumers.

Personal Finance & Money Saving Blog

Comparison websites need to promote full access

Paying attention and being willing to make changes can certainly pay off.  According to recent research, a saver who changes accounts just once each year, moving money into the highest interest instant access account available each time, would have earned more than £70 in interest on a £1,000 account.  In contrast, letting the money languish in the very lowest paying account earned a paltry 24p.  The difference works out to 300 times more interest earned for the proactive saver.

David Black, who serves Defaqto as a banking specialist, explained the findings: “This analysis really illustrates the benefits of reviewing your savings account on a regular basis.  .  .  With such a wide variance in the interest rates, savers should wake up and take advantage of the best offers available rather than paying the price for loyally staying with the same easy access savings account for years.”

Personal Finance & Money Saving Blog

Savers need to seek highest rates

Charles Davis, who serves Cebr as a managing economist, pointed to three areas of difficulty for families struggling to make ends meet and keep up with the debt management plans they may already have in place.  David identified these areas as weak wages, stubborn inflation and high unemployment.  Combined, they form a situation in which ordinary workers are experiencing severe dislocations and the economy itself is faltering or even teetering.

Nor did David have encouraging words for the near future.  “The current tough conditions in the UK labour market look set to prevail,” he commented.  “Average earnings growth is expected to trail inflation over 2012, keeping pressure on household incomes.  As such we are likely to see continuing declines on the Asda Income Tracker over the coming months, although at a slower pace than during 2011.”

The Consumer Price Index has registered that inflation caused prices to jump about 3.5% over the course of the past year, but during that same time frame, wages only increased by less than 2%.  If this trend continues, families will only fall further behind as they attempt to pay for the necessities of life while simultaneously saving for their retirement years.

Personal Finance & Money Saving Blog

Britons’ disposable income continues to slide

Unfortunately for savvy savers, NS&I has announced that it is “highly unlikely” they will be offering the Inflation-linked Savings Certificates to consumers this year.  Gill Stephens, speaking for NS&I, remarked on the change in policy: “Last year our Net Financing Target was £2 billion – which meant we could put Index-linked Savings Certificates back on sale.  Given our 2012/13 target is to deliver £0 Net Financing, we do not expect to be able to reintroduce Index-linked Savings Certificates in the coming financial year.”

The Net Financing Target is set by the UK Government and is calculated from data that reflects both consumers’ need to save and the health of the financial services industry at a given point in time.  The last time the certificates were available was this past summer; they were withdrawn from sale once the Net Financing Target for that year had been accomplished.  This process took only four months.

The news that the certificates will most likely not be available again this summer comes as a hard blow to consumers already struck hard by inflation figures such as the 3.5% rate that prevailed during March 2012.

Personal Finance & Money Saving Blog

Inflation-linked Savings Certificates not likely to reappear soon

Customers of the Co-op Bank who hold a variable rate mortgage will see their interest contribution rise by one-half of a percentage point to just under 4.74%.  For the average mortgage holder, this works out to about £180 on an annual basis or £15 per month.  While this may not seem like a great deal of money to some people, to those who are already struggling in the face of rising prices and a weak employment picture, it could mean the difference between staying in a home and the unwelcome prospect of foreclosure, along with all the financial consequences it can bring – such as a loss of all the funds previously invested in a home.

The Co-op Bank is blaming the weak economic conditions for the decision to raise interest rates.  The bank also cited higher costs for funding.  This latter point is difficult for many Britons to come to terms with, since the Bank of England has been maintaining interest rates at historically low levels.  Indeed, the Consumer Action Group has already labelled similar interest rate hikes as “shocking,” a term that many mortgage holders will agree is entirely appropriate in the circumstances.

Since variable rate mortgage holders have little recourse in this situation, those who will be under financial pressure should seek to save money elsewhere so that they can make the higher mortgage payments.

Personal Finance & Money Saving Blog

Co-op Bank announces mortgage interest rate increase

Which home renovation projects tend to pay off the most in terms of a home’s value, though?  According to HSBC’s annual survey of home improvements, both loft conversions and kitchen refurbishments are less advantageous now than they were a year earlier.  Even worse, these home renovation projects may actually cost more to carry out than they create in new value.  One renovation that appears to be holding its own in the home market, however, is the conservatory.

Many people think of conservatories in terms of the Victorian or Edwardian Ages and picture them as something only a grand home out in the country would have.  Smaller conservatories, however, are perfectly feasible even in the city.  Adding a small sunroom onto your home will, on average, boost its value by around £9,500, which represents an increase of almost 15% over a year earlier.

Before starting any renovation project, however, do consider its costs.  According to HSBC’s Head of Mortgages, Peter Dockar: “Home owners should think carefully about the type and extent of any home-improvement works they are planning.  Those which enhance the quality of life while retaining broad appeal should be favoured over more individually styled alternations.”

Personal Finance & Money Saving Blog

Home renovations to boost market value

The desire for fixed payments in additional sectors of consumer spending has led the insurance company Halifax to launch a new product that would permit homeowners to enjoy fixed insurance premiums for a span of three years.  Using such a product, consumers will be able to “lock in” their rate and know that they will not have to pay more next year than this.

It remains to be seen, however, if such a strategy will truly end up saving homeowners money in the long run.  This is because a fixed home insurance rate precludes not just increases, but decreases as well.  With some insurers, if a homeowner makes no claims against the policy for a certain span of time, they receive a “no claims discount.”  Such an arrangement would not apply in a situation where the premiums have been fixed for several years in advance.

Still, the arrival of such options for consumers indicates that major businesses are looking for ways to appeal to those who want to budget carefully.  In the main, that looks to be a positive trend.

Personal Finance & Money Saving Blog

Fixed payments make bills predictable

Companies have adopted several means of addressing this situation.  The most common options include such measures as increasing the age at which workers are eligible for retirement, increasing workers’ contributions to the scheme, and lowering the annual benefits provided by the scheme.  Many companies attempting to improve the stability of their pension schemes use a combination of these methods.

The supermarket chain Tesco is currently in talks to revise their worker pension scheme.  Among the proposals under consideration are moving the age of full pension eligibility upwards by two years, to age 67 and using the Consumer Prices Index to calculate inflation.  This would result in smaller increases in pensions over time than using the Retail Prices Index, which typically reports a higher rate of inflation.

Tesco is not alone; the trend toward revising pension obligations is widespread across both the private and public sectors.  Britons planning for retirement need to do more than merely rely on the pension they may receive in future.  It is also essential to exercise adequate debt management throughout your working years so that you will have money to save toward your eventual retirement.  Avoid paying more than necessary in interest, for example.  This strategy means that consumers need to look critically at their mortgages, refinancing them as needed to take advantage of changing market conditions.

Personal Finance & Money Saving Blog

Pensioners need to plan ahead

Most consumers who carry out a credit card comparison understand in advance that their goal is to secure the lowest interest rate possible, along with ancillary features such as an adequate grace period and a low annual fee, if any.  Comparing current accounts can be a bit more complex, however.  In part, this is because consumers can use their accounts in a variety of ways.  Some overspend each month and must pay overdraft fees.  To be sure, this can be an indication of poor debt management, but as long as it remains true, such consumers should look for accounts that impose relatively small overdraft fees.

Consumers who usually maintain a significant balance in their accounts should allow other criteria to guide their decision-making.  An interest-bearing account with an interest rate as high as possible is obviously important, though it may be slightly tricky to find since a minority of current accounts offer interest at this time.  It is also important, however, to carefully consider the fee structure attached to an account.  In some cases, high fees can wipe out the funds garnered through interest.

Personal Finance & Money Saving Blog

Consumers should compare current accounts