‘Featured’ News
Debt Soars as Britons Struggle to keep up ‘Middle Class’ Appearances
Posted 2008-04-30
Upward of 15 million Britons are struggling to maintain what they consider to be ‘middle class’ lifestyles by using loans and credit cards to bolster flagging finances.
Research from Moneysupermarket.com reveals that up to a quarter of the UK population are clinging to an unrealistic façade of a middle class ideal, whilst building debts amounting to almost £13,000 for each person.
The research further highlights the fact that 6 million of the UK population who deem themselves middle class earn only £15,000 or less a year. But it has been estimated that the annual income for a working class household is in the region of £23,000, and for middle class households the annual income averages out at around £33,000.
Clearly many of the population are deceiving themselves, but because of these strong middle class aspirations millions have been tempted into taking up secured credit and loans in order to keep up the perceived image of middle class appearances. And a further 2.7 million have turned to unsecured loans and credit cards, bringing a cumulative total of secured and unsecured debt to around £35 billion for the UK.
Richard Mason, managing director of Insurance and Home Services at the price comparison website suggested that with the credit crunch seriously affecting the housing market, it was worrying that so many people were spending and borrowing beyond their means in order to keep up with the perceived lifestyle of others.
An indication of the concern felt at the new high level of nationwide debt has recently been experienced by the UK’s biggest credit scoring firm, Experian. The organisation report that at the moment twice as many consumers are applying for their own personal Experian credit report in comparison to six months ago, and there is now evidently a strong trend amongst consumers towards learning the importance of keeping a clean credit history.
James Jones, a spokesman for Experian indicated that up to 20% of consumers now check their personal credit report prior to applying for secured loans or credit, many using the internet for immediate access to the information, and increasing numbers have also learned to request alerts to any changes in their credit status.
The rise in demand for these reports has also offered a measure of relief to Experian, with the credit report company suffering a 20% drop in revenue from its usual business of supplying mortgage checks to US and UK lenders, who are currently tightening their loan availability criteria and drastically reducing the amount available for borrowers.
As the fear of further financial risk deepens, a recent Mirror Money article strongly advises on the need for adequate insurance cover to protect against jobs and homes should the country go into real recession.
Suggesting that the insurance premiums could be raised by cancelling existing unnecessary and expensive policies that do not provide adequate cover, the article advises that life cover of 10 times or more of the main providers’ total income would prevent the further tragedy of the loss of a house or even insolvency.
Of course, the insolvency industry itself has received much greater demand for its services in these financially troubled times, experiencing a great deal of change in recent months with the new Individual Voluntary Arrangement (IVA) protocol initiated in February of this year, and further changes expected with the introduction of Debt Relief orders. There are also further proposals to change bankruptcy and Debt Management Plans (DMPs) in the near future.
Nick O’Reilly, the newly appointed President of R3, the Association of Business Recovery Professionals, the leading trade body for Insolvency Practitioners, notes the current level of demand for insolvency services, and claims to understand the plight of the financially troubled who make use of those services, commenting: “At some stage we all face trauma, and in the case of people with financial difficulties it is important to treat them with empathy and respect. Though we have a difficult job to do, those words ‘empathy and respect’ are ones I want our members to be associated with.”
Read Debt Soars as Britons Struggle to keep up ‘Middle Class’ Appearances
-
Delicious -
Digg -
Reddit -
Facebook -
Stumbleupon
Understanding Car Insurance Discounts
Posted 2008-04-24
Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.
Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.
Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.
First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.
Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.
Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.
Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.
You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.
In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.
Understanding how discounts affect your insurance rates is important to save you money.