Finance

No matter the time of year that you’re shopping online, your safety is paramount. Whether you’re browsing your favourite stores or using a marketplace like Amazon, you need to take some necessary precautions to prevent any fraud or criminal activity. Here are five top tips that will help you stay safe when shopping online this year.

Tip 1: Don’t fall for deals that seem too good to be true

If you encounter an online deal that seems too good to be true, it probably is. Fraudsters are adept at replicating legitimate websites and tricking people into believing that the offers they share online are genuine. Therefore, one of your first ports of call before committing to a purchase should be an independent review site like Trust Pilot. If you can see lots of positive reviews from the site in question, it’s probably okay to continue with your purchase.

Tip 2: Identify bogus emails

Spam emails are frustrating at the best of times. But when something arrives in your inbox with a special offer or as an apparent delivery notification, you need to check it out. Fraudsters will try and get you to click links and submit your details to their software. If you see an email that you think is bogus, the best course of action is to do nothing. If it turns out that there is a problem with your order and you don’t receive it for whatever reason, you can reach out and contact the company yourself.

Tip 3: Log out when your shopping is done

Instead of just shutting the window and closing down your PC, make sure you log out of online accounts when your shopping is done. If you stay logged in, it’s easier for hackers to access your stored information online.

Tip 4: Update your computer

Fraudsters target old versions of software to try and steal information and hack accounts. Although it can be frustrating having to constantly update your software, it’s actually a really important part of your online security. Before you close your PC at the end of the day, take the time to run the update – it’s definitely worth it from a security standpoint.

Tip 5: Keep on top of your financial information

Checking your statements and keeping on top of your financial information is an effective way of staying safe online. If you check your account regularly, you can notice unusual transactions, which you can then look to rectify with your bank. If you go too long without checking your accounts, you might find that you’ve been a victim of a hack without realising it.

So, whether you’re looking to buy furniture online or perhaps as you complete the latest payment on your summer holiday, make sure you follow the above five tips to ensure you don’t fall foul to crime as you’re shopping online this year.

 

Debt consolidation can be a helpful way of regaining control over your finances. While you might think the process is a tad confusing at first, debt consolidation isn’t overly complex. Below, we look at how debt consolidation loans work when you should use one, what to look for in such a loan, as well as certain alternatives that you might consider. By the end of the article, you should have all the information you need to decide if debt consolidation is right for you. 

What exactly is a debt consolidation loan? 

The easiest way to understand the premise of debt consolidation loans is to use an example. So, let’s assume that you owe money on three separate credit cards: £1,000 @ 20%, £1,000 at 30%, and £1,000 at 40%. Your average interest rate in this example would be 30%, which would be owed on top of the £3,000 balance. This is a relatively high rate of interest, and you’re faced with the difficulty of managing three separate monthly payments. In turn, this might lead you to pay the minimum amount due every month, which just keeps your debt going indefinitely.

A debt consolidation loan allows provides you with the funds to pay off your credit cards simultaneously. Typically in the form of a personal loan, the money is deposited into your account, and you can use it to pay off your credit cards. You will hopefully receive a lower rate of interest on the loan you’ve just taken, which will again help your financial situation in the long run.

What to consider with a debt consolidation loan 

The most important thing to remember is that you should only borrow money that you will be able to pay back. While a debt consolidation loan isn’t designed to solve all of your problems, it will help. Just make sure you adjust your expenditure, so you don’t fall straight back into debt. You also need to think about the cost of a debt consolidation loan over time. For instance, paying £1,000 at 20% over two years is more expensive than paying £1,000 back at 30% APR over one year. Just because you get a lower interest rate, it doesn’t mean it will work out cheaper in the long run.

Most people can access both unsecured and secured loans as a form of debt consolidation. However, unsecured loans are much better for borrowers, as you don’t need to offer any of your assets as a security. In some cases, you might also be able to access a guarantor loan, which sees someone else ‘guarantee’ that you will pay the loan back. If you opt for a guarantor loan, you will need to find someone willing to play the role, and you will almost certainly face higher interest rates as a result.

Debt consolidation loans and your credit score 

In order to be approved for a debt consolidation loan, the lender will take your credit score into consideration. While borrowers with far from ideal credit scores should be able to access credit, your options will be somewhat limited. Also, the further you go down the scale, the more interest you’re likely to pay back. Remember that there are three credit agencies in the UK, each of which offers slightly different credit scores from the other.

However, thanks to the advent of Open Banking technology, some lenders place less emphasis on credit score and consider other aspects of your current financial circumstances. Lenders like Koyo Loans use Open Banking to consider your outgoings and expenditure, which gives them a much broader picture of whether or not to issue you with the credit you’ve applied for. Another thing to be mindful of is that debt consolidation loans will affect your credit score. If you use it to your advantage and repay your loans, it will actually strengthen your credit score in the long run.

Debt consolidation loans alternatives 

While a personal loan is one of the most popular ways of consolidating your debt, you can also use a balance transfer credit card. Offered by some financial institutions, this allows you to apply for a single credit card that you use to pay off all your other credit cards. Many of them begin with a 0% introductory period, which offers money savings if you can pay the loan off within that period. Once the 0% period is over, though, your interest will shoot up, so it’s important to bear this in mind if you can’t pay the money back quickly.

If you think a debt consolidation loan is useful to you, it’s a good idea to contact a lender and review the types of personal unsecured loans that they offer. You should then calculate if taking out a loan to repay your current credit card and other lines of debt will work out for you. No matter your current credit score, it’s something worth considering if you’re hoping to get out of debt and regain control of your finances.

 

Adjusting to a new income post-retirement can be difficult and you may find yourself falling into the habit of spending money that you longer have spare.

To avoid this, I have written this blog which outlines 5 tips on how to budget post-retirement so you can enjoy it rather than stressing about money. This blog will show you how to easily manage your finances on your new income.

Make a list of all your monthly outgoings

The first step to budgeting post-retirement is to create a list of all your money outgoings so you know exactly how much is going out of your account. This may not be something you would generally do, however now that you have to adjust to your new income, you may have to be stricter with the way you are spending your money.

When compiling this list, make sure to include everything that comes out of your account on a monthly basis, not just your bills. For example, you need to include basic things such as your average monthly food bill to non-essential expenditures such as getting your nails done each month.

Once you have compiled your list, deduct the total from your overall income so that you know how much you have leftover each month that you can spend on what you like.

Plan what you would like to do and set money aside for it

Now that you have a different income, it’s important to plan what you would like to do ahead of time so you can set aside money for it, although this generally applies to activities that will be more costly.

As you will have more free time during retirement, you will most likely take up hobbies at first to fill the time gaps during the day. If this is the case, take a look at your finances beforehand to ensure you can do so, especially if it’s a weekly club you would like to attend.

It’s also important to treat yourself during retirement such as going on holiday or city breaks, however, this comes at a cost. If you are planning on travelling during retirement, research everything beforehand so you can get the best deal. This will also give you a good idea of how much the entire trip will cost you so you can save for it.

Invest in a good funeral and life insurance plan

Altough it’s a morbid thought, investing in a good funeral and life insurance plan is imperative when you retire and could save your family thousands when you pass.

With funeral costs increasing significantly each year, having a pre-paid funeral plan is a great way to avoid a hefty bill when you pass. It also gives you control over the kind of funeral you would like. An over 50s funeral plan gives you the freedom to choose a plan that works for your budget that you can pay in monthly instalments.

Another thing to consider is life insurance as having the right cover is essential to financially protect your loved ones when you pass. Once again, there are many packages out there that will cater to your budget.

Set yourself a monthly spending limit

Although you have budgeted for your expenses, it is very easy to go over the budget you have for non-essentials due to all the spare time you will now have. Even though you may only overspend by £10 here and there, over time it will add up and it can be hard to get out of this routine.

To avoid this, set yourself a monthly spending limit that you cannot go over. It may be easier to put the rest of the money into a different account to ensure you only have the money available that you give yourself each month.

Set aside money for unexpected expenses

Many people tend to have a savings account for their retirement that is separate from their pension, however, I wouldn’t suggest using that money straight away.

Altough it is important to treat yourself, you also need to ensure that you have money set aside in case of an emergency so you don’t end up paying for an unexpected bill and have nothing left to fall back on.

If you already have a savings account, I would suggest only dipping into it when you really need to. If you do find your account running low, then top it up each month until you have enough money that you can fall back on if you need to.

If you don’t have a savings account then I would strongly suggest setting one up and adding a bit of money to it each month. Doing this will allow you to spend the money you have whilst knowing you have savings behind you.

To sum it up

Now that I have shared my tips on how to budget post-retirement, it’s time for you to apply these tips to your situation so you can enjoy retirement without having to worry about your finances.

My biggest tip would be to sit down and plan how much money you will have each month as you can plan what you would like to do around this. It is also important to have some money to fall back on should you need it.

 

With the cost of living rising faster than wages, budgeting is an important topic for many families. Luckily there are plenty of effective tips and tricks you can use to cut your spending without it feeling like a compromise. Here are seven of the best.

1. Educate your kids on finance

Children form their attitudes towards money early on, so as a parent or guardian it’s important to educate them on financial matters. For example, you could give your kids a small amount of pocket money each week which they can then choose how to save or spend. If you’re fostering in the West Midlands, financial literacy is just one of the many crucial life skills you can teach the child you care for – even if they are only with you for a few months.

2. Make the most of free activities

As the saying goes, the best things in life are free. Although many activities aimed at children are expensive, there are also plenty of genuinely enjoyable ways to pass the time that don’t cost anything. For instance, you could spend the day at the beach, go on a long walk in the woods in search of cute wildlife, or head to the library to pick out some books for free.

3. Shop around

Whenever you have a reasonably large purchase to make for your family, take some time to shop around to make sure you get the best deal. For example, research a few different internet providers before choosing one, or look at the same car seat on different websites to see which store is selling it for the lowest price.

4. Stock up in the sales

If you find items that you use frequently on sale, it’s time to stock up. As long as they won’t go out of date before you can use them, this will save you money in the long run. Similarly, before buying anything have a quick search online for a discount code – you might just get lucky and snag 10% off!

5. Don’t rule out secondhand items

Baby products can be very expensive, yet only get used a few times before they’re outgrown. As such, looking on parenting forums and in secondhand stores can be a fantastic way to find real bargains. Likewise, if you have friends with kids who are a bit older than yours, ask if they have anything they were planning on getting rid of that you could use.

6. Cut your grocery bills

Food is one of the main expenditures for many families, however there are ways you can cut your costs. Instead of opting for big brand names or luxury products, try the supermarket’s own brand versions. In the majority of cases, you won’t even be able to taste the difference!

7. Link it to the environment

If your kids are old enough, one way to get them more enthusiastic about cutting back on water, gas and electricity usage is by explaining to them how it’s better for the environment. This often motivates young people more than budgeting does and can help them to feel as though they are having a positive impact in the world.

An ISA (Individual Savings Account) is a tax-exempt account that can be opened and managed by one person. The funds deposited in an ISA cannot be used as collateral; it should only serve as a savings tool for future use.

ISA accounts include cash, stocks and shares, innovative finance and lifetime individual savings accounts (Lisa). Cash ISAs are the most common type of ISA, with interest rates varying based on whether or not the provider has been granted ‘scheme’ status from the government. Generally, higher interest rates equate to less favourable terms, such as limiting withdrawals to just once annually.

Anyone over the age of 16 can open an ISA account regardless of their employment status. There is no maximum income that one must earn to open an ISA account; however, anyone with a personal income of more than £100,000 annually cannot have a cash ISA as they do not earn enough to benefit from tax-exempt accounts.

Disadvantages associated with having an ISA account

There are several disadvantages associated with having an ISA account, including:

Low-interest rates

The best-advertised accounts have interest rates below 1%. This means it will take close to 30 years for your savings to double. However, these accounts often come with restrictions such as limiting you from withdrawing funds or charging high fees for withdrawals and deposits into the account outside of those permitted by ISA providers. ·

Unpredictable inflation rate

While the interest rates of ISA savings accounts are fixed, they fail to compensate for inflation. This means your money will buy less than it would in an average savings account.

Not easily accessible

Withdrawing funds from an ISA requires contacting the provider and often comes with high fees. There is also a limit of one withdrawal per year allowed without penalty.

Exposure to market uncertainty

Unlike pension savings, where you can withdraw funds when needed (and penalties won’t apply), withdrawals made before age 60 will forfeit any interest accrued in the account.

Income tax implications

If you do not use all of your allowances in cash ISAs, the remainder becomes taxable income subject to income tax. Coupled with a tax on the interest your money earns, you could be taxed up to 38.1% on any gains.

No quick investments

If you have no savings currently but want to invest your money quickly to start gaining interest, then putting your money into an ISA could be a waste of time as it would take years before anything was earned. Also, if you have to pay a lot of tax, then the returns from ISAs may not be as appealing. In that case, it is better to invest outside an ISA for better returns.

Advantages of an ISA account

Most people use an ISA account as a form of long-term savings, where they earn interest on their money without paying any tax. If you invest £10,000 inside a cash ISA at a 2% rate of return per year, then in theory, after 25 years, your money would be worth £22,942 – which is approximately £12,942 more than if you had paid tax on your earnings. Even though rates had fallen significantly since 2008 when banks were offering accounts with annual interest rates often over 5%, they are still very attractive to savers.

One major reason for this is the wide range of ISA providers. The main ones include National Savings and Investments (which offers Premium Bonds), cash accounts with all banks and building societies, plus stocks and shares ISAs mainly sold by investment brokers – who often provide very competitive rates on these products due to their high availability in the market. All these options allow you to choose what works best for you. Some people, however, believe that Isas are not beneficial to everyone.

Finally

ISAs are a good way of getting started with saving. However, many alternatives are available to investors that don’t limit their access to funds or accrue income tax, such as regular savings accounts and easy access to cash ISAs. New investors interested in a uk isa account are advised to use a reputable online broker from Saxo Bank.