Reduce your Council Tax - You may be paying over the odds
You may not realise it, but you may be paying over the odds for your council tax bills without even knowing it!
Council tax is paid by anyone over the age of 18 in the UK, but if there are numerous people living in your home, or you have certain pre-requisites, you may be able to claim for a discount. This may be a substantial amount, which could add up to £100’s a year.
How can i get my bill reduced?
You may be entitled to a reduction in rates if you live with someone with a disability. You may have to apply to the council for this, as only a certain number of properties will apply.
You may also qualify for a discount if:
- You live alone in the house
- You live with full - time students
- You live with someone claiming disability benefits
- You live with someone who is on a youth training scheme
- You are living on low wages or are claiming job seekers allowance
Its as simple as ringing your local council, or stopping by a council tax office to find out if you qualify. You may also qualify for a second adult rebate, if you share a property with someone who doesnt pay rent and they are not your partner.
Whatever happens, always ensure you pay your council tax in full and request a credit on your next bill if applying for a discount. If you miss even one payment, this can adversely affect your credit rating and/or you may be given a court summons to ask why you have not paid in full.
How to manage your Credit more effectively
Having credit is not all bad if managed correctly, whether it allows you to buy that dream house, get you out of tight spot or be used to build yourself a solid credit rating. Poor management however, are where problems can arise.
Some basic pointers when using credit:
- Only buy what you can afford to repay - One mantra i have always tried to use is this one. With the latest shiney gadgets, or must have accessories being paraded in our faces on a day to day basis, it can be difficult to resist the urge to spend. But, do you really need to make that purchase? The buy now, consider the consequences later attitude is not ideal when facing 16.9% APR charges!
- Make sure your payments are frequent and in full - If possible, always try to pay off your balances in full at the end of the month. Whether that is a credit card purchase, or your mortgage payments, the same rule applies. This enables you to both avoid any fees, and limit the amount of interest you pay to your credit supplier.
- Know your limits - If you have a £1,500 limit on your credit card, don’t go over it! You will probably pay through the nose for exceeding your limit.
- Keep track of your spending - Set up an online account that coincides with your credit card statements, that way you can quickly check your spend for that month and act accordingly. Most well known credit suppliers will be able to offer online account support.
- Keep an eye out for mistakes - Although many credit card companies offer insurance or protection against fraud, Credit card fraud does and will continue to exist for the foreseeable future. Keep a beady eye on your statements and check any unusual items out. Dont let any fraudulent purchases go unnoticed.
- Be sensible - Don’t apply for credit unless you really need it, or you are doing it for building your credit rating. Many people are under the impression they need credit, when in fact they don’t! Having that temptation there to spend can be problematic.
In the right hands, credit cards can be very useful, but unless you need to make a large purchase or are looking for the payment insurance - try and stick to cash or debit cards.
How to Budget Effectively
Budgeting is a key part of getting yourself free from Debt. If done properly, and believe me it can be tough, you can gradually pay off your outstanding credit while maintaining a ‘normal’ lifestyle.
Many times, spending can spiral out of control because you are unaware what monthly disposable income you have to hand. Budgeting is key to understanding exactly what you have, and what you will need to pay off during that month.
How to calculate your budget
This is best done on a monthly, or weekly basis as spending can fluctuate throughout the year, say for example more expenses during christmas time, summer, etc. I personally find it easiest to work on weekly figures, so calculate your income (’take home’) ater tax, and divide by 4 to give you a weekly budget. Say for example you earn £1,000 per month after tax, you have £250 per week available.
Calculate your outgoings, which can be broken down into bills: which includes credit card bills, mortage or rent, utilities, council tax, road tax etc. Then add up the additional weekly spend on food, shopping, mobile phone contracts, internet or anything else that will cost you money during that week. This will give a rough idea of where you are in terms of a weekly or monthly spend. Be sure you are honest here, if you buy lunch at work everyday, make sure you include it, you will confuse your finances if you leave anything out.
If your weekly spend exceeds your earnings:
If your budget exceeds your earnings, you are in trouble, you are living beyond your means. Every week you continue this trend, you are getting yourself further into debt. Take a step back, and look trhough your finances again. What expenses can you cut back on? Are there any unneccesary costs listed?
Things like alcohol, or clothes could be cut back whilst you get your finances back on track - you will probably have to make some sacrifices to deal with the overspend. Food shopping could be made cheaper by buying food from markets, which are notoriously cheaper than supermarkets. Could you switch utility providers for a better deal? Would you receive better car insurance premiums if you switched? All these questions may apply to your situation, so you will need to assess the key costs and try to tackle them.
What if your weekly spend is less than your earnings:
If you are spending less than you earn, you are doing extremely well, and are on the way to being free from debt. Put thast additional money into a high interest savings account, a cash ISA and make that money earn you interest. Alternatively, a a more sensible option would be to pay off some of your additional balance on credit cards or loans (if you are not charged for making over payments). This also effectively saves you money by cutting down your interest payments.
If you are able to save, then well done on budgeting correctly, but always keep your budgets up to date and ensure you are not overspending in any areas. The more on top of your finances you become, the better equipped you are to deal with any unforeseeable costs in the near future. Sticking to a budget may be tough, but is a surefire way to help manage and reduce your debt.
Stopping your Mobile Phone itemised billing
This quick money saving tip is mobile phone related, and ties in with itemised billing for your contract phone. You may not be getting charged for itemised billing, but it is always worth knowing about.
I started a mobile phone contract with Orange recently, having bought the handset via a third party website. I did so due to the improved contract terms and pricings, but was shocked when i was given a higher bill than expected. Upon initiating my contract with Orange, i was billed an additional £1.50 in my first month’s use for itemised billing which i never agreed to.
Upon ringing orange to complain, i was told that third party affiliates that sell their contracts will often include itemised billing in the contract, to which they receive a small additional stream of revenue. Very sneaky… Although i was able to get the fee credited onto my next bill, i still felt this sly way of adding ‘extras’ to the contract was a bit under-handed. What was more concerning, was the way in which the call centre operator casually noted “Yeah, that happens all the time with contracts bought from affiliates” !!
So i urge everyone to check their bill in close detail. Are there any strange or unusual increases in your bill? Do you have any unwanted extras added to the contract? If so, make sure you ring up your supplier and get it taken off, and demand a refund! If they protest, read through your contract and check the small print. Don’t let your phone supplier take your business for granted!
Get rid of Store Cards - Start saving
If you have a range of credit products, including store cards, you will probably be paying over the odds for your purchases without even knowing it. Read on for more information on store credit cards - and why they are costing you money.
Whats the deal?
Often high street street stores offer a range of credit cards to customers with an introductory offer such as a 10% discount on the purchase if you sign up for a store credit card. The staff in these shops are targeted on credit card sales, so will be keen to get you to sign up at every opportunity. Be very wary, as these introductory offers are overshadowed by high a high APR, and will cost you money in the long run.
Some interest rates from popular high street stores:
Topman Store Card - 19.9% APR
Burtons Store Card - 28% APR
Marks & Spencer Card - 23.9% APR
Debenhams Card - 18.9%-29.9% APR
As you can see, just from these highstreet examples, that high interest rates are commonplace. Don’t forget this when considering making that application, as you will often be better off purchasing the items with cash, or using your existing cards.
How to beat the Store Cards
Store cards are used by companies to catch out the shopaholics
If you do decide to go ahead with getting a store card, make sure you are one step ahead of the system and don’t give these stores more of your money! Set up a direct debit so that funds are automatically withdrawn from your account. That way, the store wont be able to charge any interest on your purchases, saving you from overspending uneccesarily.
If you are making a large purchase in a store, you may benefit from an introductory discount if you sign up just for the purchase. One you make the purchase, pay off the card and close the account.
Also, If you decide to stop shopping in a certain store, be sure to pay off the card in full and ask for the account to be closed. Your credit rating is affected by owning multiple credit products (including store cards), so leaving them unused in your wallet could potentially damage your credit rating. Cut them up and move on.
One last tip:
If you are signing up for a store card, be sure to avoid payment protection or any other auxillary insurance product on the card. These are another cash cow for the lenders, and offer very little to average customers.
NB: Applying for store cards can affect your credit rating - so make sure you fully understand what you are doing before signing up!
Eat out with Toptable
There seems to be a whole load of restaurant offers carrying on through into spring around the UK. If you are lucky enough to frequent restaurants on a regular basis, or are thinking of treating yourself soon check out Toptable for a list of the best discounts.
Toptable basically work as the middle-man for offering restaurant discounts, by being affiliated with restaurants and processing their bookings through the site. You can see discounts ranging anywhere from 10-70% of food, or little perks like a free glass of wine if you mention you booked through the service. It’s always worth checking the site, just incase your favourite restaurant is listed.
Popular with restaurant lovers, Toptable highlights the best discounts in your town.
I will still aim to post any good money saving offers as i see them, as Toptable often caters more to individual restaurants. The toptable network covers Europe and multiple global hotspots, so there should be something for everybody.
Sell your old mobile phones for cash
Make a few pounds by getting rid of your old mobiles! For any old contract or PAYG phones taking up space in your drawers - you can turn them into cash.
Old mobile phones can be converted into cash through online brokers.
If you have an old phone in your drawers - you can turn it into a few pounds by recycling. There is a booming business in recycling phones, and companies will often pay decent rates for your old phone.
How it works:
If you have a working phone (that turns on and off, and can be reused) you can often sell it to the highest bidder. There are a number of companies that will try and attract your business, but i find the comparrison sites best for finding the best price. Also take into account whether or not you have to pay for postage yourself, this can save you a few pounds.
How to sell your phone in 5 steps:
- Visit mobilephonerecycling.com and punch in your phones make and model
- Scan through the results and go to the site which pays the highest fee for your phone
- Sign up online with the recycling firm and send your details - they will often post out a self addressed envelope. If you dont want to go through the affiliate site, just Google search the company and repeat the process.
- Wait for the jiffy bag to arrive, and post your phone to them (often you dont need to send a charger or SIM card)
- Wait for the company to check the phone, and if eveything is ok, you will receive a check in the post!
Its as simple as that really! Along with my post on making money from eBay, you can quickly turn some of your junk items into cash!
Basic bill management - Beat that debt
Good organisation can really help with prioritising your debts
One quick tip for helping you manage your debt is…. management. Sounds obvious right? Well, one of the most important processes i teach people is how to take control of your life again and start accepting responsibility for your financial situation and managing your money more effectively is a great start. Follow these 3 simple steps to help with managing your finances.
If you organise your debt - it is easier to prioritise
A lot of people will throw all of their bills, receipts and statements into either a pile, or the bin. No wonder alot of the time you don’t know where your money needs to go or who you owe.
- Organise your bills into simple groups - By filing your documents into utilities, credit cards, bank fees, mortgage payments, urgent etc you can know exactly which companies you are dealing with, and which needs paying first. A simple folder and a few plastic sleeves are great for this.
- Create a spreadsheet with your outstanding debt on it - That way you can size up your situation, and hopefully see it gradually decrease over time.It also gives you a reality check - a pile of bills may not give you the full picture.
- Organise a priority to your bills - Label each bill with a priority from 1-10, a 0% interest credit card (3) can take a backseat while you pay off you 12.9% APR loan (9). Think about your current situation and assign a priority to each bill.
By simply changing the way you deal with your debt, you can help yourself to fully understand your situation. It may be difficult at first, but honesty and basic bill management is key to getting back on track, and into the black.
Mortgage payment protection insurance (MPPI) - What is it?
There has been a fair bit of bad press on mortgage payment protection over the last few years, so i will try and clarify this for you and help you save some money along the way. MPPI is often missold to homebuyers and can cost you hundreds of pounds a year!
What exactly is Mortgage payment protection insurance (MPPI)?
Mortgage payment protection insurance (or MPPI for short) is a way in which you can guarantee you payments are
MPPI is often mis-sold to mortgage applicants
made to your mortgage provider if for some reason you can’t meet the payments for that month. The insurance is like a safety net for you to fall back on, if for example, you lost your job, become ill for a long period of time or fell under other circumstances which affect your financial situation.
The mortgage protection is not a pre-requisite for actually being accepted for the loan, but the wording used by sales teams can often confuse the matter. Because this policy is easy to sell, the mortgage providers who will ‘recommend’ such policies to unwitting home owners as a further way to profit from the mortgage application, without it actually being useful for that individual. DON’T BE FOOLED – Your application is processed based on a number of factors, including your income, credit rating, and financial history and NOT whether or not you buy the MPPI !
Some example of when MPPI might be suitable for you:
- If you have a history of sickness or illness which may affect you working.
- If you do not receive adequate sickness / redundancy pay to cover the mortgage payments
- If you are in a job which may not be ‘stable’ (although you never can tell..!)
MPPI probably isn’t suitable if :
- You already have insurance which covers this.
- You have a large volume of savings that you would happily use for payments if required
- You have a low monthly mortgage which could be easily paid by a partner or on even a basic salary.
- There is a low maximum payout cover, or you are only covered for a small number of claims.
When decided whether or not to go forward with a mortgage protection policy, make sure you check the clauses and pay out periods as these can dramatically influence your decision to go ahead. If you are keen to take out the insurance, make sure you go with an external supplier which will usually give a far better premium. I will be sure to review some of the better offers around the UK, and let you know in due course.
5 tips to make money on eBay
Money for old rope: 5 tips to get the most from eBay (and make money doing so…)
A good way to make some extra spending money during the current economic climate is to have a ’spring clean’ around the home and get rid of some of that
Have a clear out at home: Make some spending money by selling your unwanted junk
junk in your home. Now with the advent of easy to use auction sites, such as eBay, you can literally make money from old rope.
Ok, maybe there is more money in selling your DVD’s, games, books, electronics and other assorted items - but there is pretty much a price for anything these days. The sign up process is pretty easy to, just register an account, and follow the tutorial and guides for listing an item. There are various fees associated with most auction sites, so be sure to check everything out before you go ahead.
Some basic eBay tips:
1. Optimise your product titles - A product titled “Mario game” is less likely to attract visitors, and potentially bids than say, “Nintendo Wii Mario Kart - Brand New - Free Postage”. The more descriptive and useful a page title is, the more search terms your product will be found for. Don’t shy away from enticing visitors to your auction page with an attractive starting price, but ensure you have a reserve set if the item is particularly valuable.
2. Take quality pictures of your product - If you are selling something like a car, or furniture, you will find a good set of photos will attract more interest and bids than a grainy mobile phone picture, or a generic manufacturers picture. Even put a piece of paper next to the product with your username id - to let others know you are the person who took the photos.
3. List your product at a sensible time - There’s no point starting a 7 day auction for your item at 3 am on a tuesday morning, when your potential buyers will more than likely be asleep at that time. Think about when you want the product to end and then list your product accordingly i.e:7 pm on a sunday evening as a 7 day auction. This ensures a large number of eBay will be logged on ready to put in their final bids when your auction ends.
4. Spend some time writing your product description - More often than not, listings are copied and pasted from other auctions out of complete laziness. Stay ahead of your competitors by writing an informative, honest description, and remember to spell check and proof read once finished. There is nothing more off putting than seeing a dream item at a bargain price - then seeing an careless description. It makes the buyer think - If this seller is so lazy with his writing description - how much care has he put into looking after this item?
5. Don’t loose heart if your product doesn’t sell - Sometimes a product will run its course through the auction and attract no interest. It’s quite common - so don’t worry. Often there is a free re-listing function with many sites. They will refund your listing fees if the product sells next time round. Simply re-list and wait for those bids to come in.
I’ll be looking to add more eBay tips in the future, so check back at the “money making tips” section of the site for more ideas!
