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.”

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.

The monetary policy committee (MPC) chose to cut base rates in December, but decided to hold it steady in January.

Although Chancellor Darling petitioned financial service providers to pass on December’s base rate cut to mortgage payers, many lenders are wary of doing so in the current economic climate.

David Kuo, head of personal finance at fool.co.uk, pointed out that mortgage loan providers are not obliged to alter their rates for consumers. Many may choose not to do so in order to concentrate their energies on rebuilding their businesses. In all likelihood, homeowners will not see any savings at their level.

Kuo doesn’t anticipate the situation to change much in the coming year. “Homeowners are unlikely to reap the benefits even though there are indications that the Bank of England may continue to cut interest rates to stimulate the flagging British economy.”

In addition, personal insolvencies are predicted to rise this year.

In addition to the risk of damaging personal affects, there is also a high risk of voiding home insurance policies when work is not conducted by a professional craftsman, carpenter, plumber or electrician, Halifax cautioned.

Spokesperson Vicky Emmott said, “Trying to tackle certain areas that you are not qualified for - such as electrics or plumbing - could invalidate your home insurance. It’s far better to employ a reputable tradesman than to risk damaging your home by going it alone.”

At the very least, whenever any serious repairs, upgrades or renovations are being considered, it is strongly suggested that the homeowner consult with a licensed professional before beginning work. 

Homeowners should also consider that when repairs or renovations are conducted by a professional, he or she should carry their own insurance in the event of damage claims, thereby releasing the homeowner of any liability.

Many necessary improvements generally add value to a property and may often be funded through a home equity loan, even if the homeowner already has debt.

Home equity loans release some of the value typically locked up in the form of equity, thereby providing the funds needed to reinvest in one’s own property. 

Checking the property values of similar homes in the surrounding area or neighbourhood can often give a homeowner a fair idea of how much should be invested, in order to realize a decent return on invested money. It is almost never a wise idea to “overbuild” in an area that won’t support the amount invested, but conversely, keeping a property in step with the comparables usually ensures a sound investment.

According to the Office of Fair Trading, about one-fifth of debt consolidation loans are secured against property.

Mr. Folkard also claimed that employees already waste more than three hours a month chatting and sending text messages.

But concerns about personal finance and debt have resulted in an annual expense of nearly £10 billion to the UK economy. According to Axa, £9.6 billion is the new estimate in costs associated with employees taking time off to manage their finances.

However, allowing workers to focus on their own finances for one hour during business hours, could greatly alleviate the loss of employee absenteeism and the costs associated with the loss of productivity, the firm asserts.

Employees facing serious financial concerns tend to be more easily distracted and less capable of focusing attention on their tasks. Conversely, when individuals feel in control of their financial lives; focus, clarity and creativity tend to rise substantially along with better over-all health - which further reduces worker’s absenteeism.

The Office of Fair Trading asserts that two-thirds of Britons who had obtained a debt consolidation loan, did so without consulting more than one lender. And having the extra time during the day to research and manage personal financial issues could reduce the cost of repayments as a whole.

Healthcare for humans and pets alike is always of primary concern; but new information compiled by insurer Direct Line, shows 22% of dog owners have struggled significantly to pay for the expenses associated with treating their pets’ healthcare needs.

Nearly 18% of those polled revealed they had lapped-up their savings to meet the financial requirement of their veterinarian’s bill - while 8% sought loans from their family and friends to pay for “Fee Fee’s” care.

Nearly 11 million mollycoddling Brits are adding a combined £1.5 billion to the national debt for the sake of their beloved animals.

Head of pet insurance, Chris Price added, “When a pet gets ill the cost of treatment can add up quickly, so it is important to make sure that you have a plan in place to cover the bills.” For owners with no pet insurance, secured loans could be an alternative in order to meet the cost of veterinary treatment. In most cases, a secured loan with a fixed repayment period would be a more sound financial decision than turning to high-interest credit cards.

Moreover, pet owners should mind their veterinarian’s advice and keep pets at a healthy weight since obese pets are far more likely to require long-term treatment. Additionally, for those considering acquiring a pet, the average expenditure on dog food is now at approximately £209 per year. 

There is no doubt that the majority of pet owners agree that their pets are far more like family, than the antiquated idea of their pets being “just animals.” They’re precious and much adored by the entire family. Their endearing antics often tug at our hearts and most of us wouldn’t give up our fluffy, sleek or rugged companion for anything. So when illness or injury suddenly occurs, more often than not, owners have a knee-jerk reaction and dive straight from their hearts to their piggy banks to mend their friends. Therefore, when considering insurance products, remember to cover that darling little doggy with the waggily tail.

According to research findings from Abbey, Britons are willing to take on loans worth a collective £1.4 billion for the multi-purposes of cosmetic or plastic surgery. 

“We are seeing an increase in requests to borrow for plastic surgery. Whether striving for visible perfection or as part of a medical treatment, plastic surgery is getting more and more popular among Britons,” offered Paul Morrish, Head of Abbey Loans. 

Apparently, nearly one million adults in the UK are now considering taking on debt in an attempt to either achieve a quick fix on their bodies, or undergo a corrective surgical procedure. Additionally, Axa has announced that with the growing popularity of plastic surgery, nearly a quarter of a million retirees are also considering some form of plastic surgery.

The most popular procedures for which such loans are being sought are breast augmentations, the bank states - being 27% of all plastic surgery operations performed. Following breast augmentation by popularity, are tummy tucks and nose jobs. 

Rhinoplasty can be performed to meet aesthetic goals or for reconstructive purposes to correct birth defects or breathing problems. It is sometimes combined with a chin augmentation to enhance the over-all aesthetic results. 

Liposuction, also known as lipoplasty (fat modeling) is a cosmetic surgery that removes fat from many different places on the body. The fat is usually removed via a cannula (a hollow tube) and aspirator (a suction device). The amount of fat removed varies by each procedure, but the average amount is typically less 5 kg. 

No surgical procedure is a low-effort alternative to exercise, diet, or self-esteem. Therefore, all individuals should carefully consider the significant personal and financial risks involved in elective procedures, before making the decision to go under the knife and anesthesia, or under the laser. 

But in cases where plastic or cosmetic surgery is assured, very careful examination of physicians’ experiences, past results and levels of education should be closely examined to ensure the best possible outcome.

A great number of students (and parents) have growing concerns over the rising cost of student loans, tuition and all associated expenses of higher learning. Students are therefore beginning to work through their traditional year off and save money to meet the expensive demands, according NatWest. 

Mark Worthington, Head of NatWest Student Banking, offered, ‘It is encouraging that young people are thinking ahead and using their gap years as a valuable opportunity to save for their future studies.’

Research has revealed that more than 50,000 such youngsters plan to work through at least one year; in order to lessen the debt they will accrue while undertaking their studies. Additionally, a growing number of students will also continue to seek work during their study periods, and split their time between earning an income and gaining a higher education.

A recent Halifax Student Finances survey showed that the average debt accrued by those in ongoing education through loans, overdrafts and credit cards, now stands at approximately £7,502.

While the idea of a compulsory insurance scheme might seem superficially attractive, it would not deal with the range of uninsurable risks that people face.” 

Clearly, more effective assistance is needed from the government for homeowners facing financial hardships. According to Jackie Bennett, Head of Policy with the council, the government does too little to help property owners when they are faced with serious debt problems. 

The CML also revealed that tenants who rent their dwellings typically receive more help than the owners of property.

For those attempting to manage serious financial difficulties, a home loan could be the solution - even if a mortgage is already secured against the property. A popular lending product known as a “second charge” could be a homeowners’ best alternative; as it is provided with a fixed repayment period.

In any case, homeowners should diligently consider the alternatives available to them, rather than face possible eviction - and not count on the government for any further assistance which does not seem to be immediately forthcoming.

Data from the financial services provider show that 68% of Britons would be willing to spend top dollar on a state-of-the-art security system to protect their homes and businesses.

Senior Personal Loans Manager, Richard Al-Dabbagh offered, “It is only natural we should want to protect our homes…Clearly the best way to do so is to invest in equipment which will either deter or prevent would-be burglars from attempting to break in.”

The Association of British Insurers recently revealed that home insurance premiums are often reduced if a property is well secured, thereby lessening the risk of damages and theft.

The firm also suggested that a low interest rate, secured loan, could be a good means of financing security systems, and are usually found to be a sound investment in personal and property protection.

Gates and floodlights were two improvements suggested by the firm as an effective means of achieving this. Additionally, for a comprehensive list of home security providers, a search on the Internet for “simple home security” will also produce many Web sites offering wireless devices and security companies for easily installed home security products.

A lot of useful links and information was found at: http://www.uk250.co.uk/HomeSecurity. Once you’ve located the right products for securing your property, consider a secured home loan with which to purchase the products or services and you’ll start the New Year off on the right foot in preparedness for any would-be thieves or home invaders.

Finally, remember to contact your property’s insurance provider and inquire as to any reductions in premiums for which you may now be qualified to receive.