Finance Money News

Credit Action have advised people who are at risk of getting into debt, or furthering their debt, should draw up a budget to avoid it.

By drawing up a budget, such as a weekly money diary, people could better themselves financially, and avoid the need for debt management plans and the like. Little savings here and there, such as not buying a cup of coffee, taking a lunch instead of buying one, could help enormously over the month, and would be an ideal money saving tip to implement.

People who have decided to invest in secured loans to fund home improvements may be happy to know that their hard work and money may pay off quicker than expected, even in today's property market. A quick deal is apparently still possible as long as the property is competitively priced.

If people wanting to move fancied invested in secured loans, the home improvements that they could fund could help to shift their home. A new kitchen ir an extension could also help add a bit of value to your home.

City analysts have predicted that by 2010, there will be 3million unemployed people in the UK, as the economy takes it's toll on businesses. About 5000 jobs have been lost up to now because of the crunch, and things are predicted to only get worse.

There are a number of issues regarding a rise in unemployment, especially the facts that UK revenue from teaxes will fall sharply and increased costs for social services will soon hit home. This reduced income and increased outgoings will weaken the balance sheet, despite the need to turn the economy around as soon as possible.

It's been recommended that people shoudl try and avoid using their credit cards and store cards over the Christmas period, and instead, save earlier.

This can be considered particularly good advice when we read that store card and credit card interest rates are shooting up. It's also becoming increasingly difficult to be granted a credit card/store card, and with the financial turmoil at the minute, will also be increasingly difficult to pay the balance back.

According to the Birmingham Midshires, 78% of Brits are planning ahead this year and budgets have also fallen by an average of £102, to £604 spent on festivities.

Over 50% have also said that they will be spending less on gifts this year and over a third will be re-using last years christmas tree.

Esure, the insurance company, have warned that in-store insurance policies should be avoided by customers, if they want to save money.

They found that 23% of Brits buy extra insurance for products they had bought from high street stores. However, of this number, 3.3million already have home contents insurance - rendering the insurance they had shelled our for, useless.

They also gave some tips on how to avoid doubling up on policies, including:

• Remember that the shop assistant will more than likely receive a commission if they sell the policy to you
  
• Check what your existing home insurance covers

AXA have increased their life insurance underwriting limits, in order to compete more strongly in the market.

They have upped their limits to £1million for life insurance and £500,000 for critical illness cover, up from £600,000 and £350,000 respectively. Anyone applying has to provide their annual income and prove it, and announce any loan agreements that they may have.

It has been revealed that 3/4 of UK drivers have admitted to speeding on a regular basis, as they are confident that they won't get caught. If only the car insurance providers knew what their policy holders were up to!

• 23% claimed they speed a few times a week
• 19% said they speed every day
• 27% said they had never broken the speed limit

It was also exposed that on UK roads, 244,770 people were injured or killed in road accidents - many of these will be due, in part or full, to speeding. What's even more worrying, is that those who do speed, don't worry about it, because 43% of them slow down when they know a speed camera is approaching, and speed up as soon as they pass it! Maybe the regulations should be changed, so that the position of speed cameras are made unknown?

I love Picasso. If I had the money, I'd most definately be the proud owner of many of his pieces. A Picasso Cubist painting was meant to be in an auction next week, and it has been withdrawn from sale. It was expected to fetch over £19.1m at Sotheby's in New York and was the highlight of the upcoming sale.

It seems that many autumn auctions have failed to meet expectations and seem to be struggling amidst the current economic downturn. With less money flying around, and the art market being a confidence-based one, it's no surprise.

I'd buy something like the Picasso auction piece in a flash, I just very much doubt I will ever have the money.

The Homeowners Advice Centre has stated that the government and the Bank of England have been taking the right kind of steps, but consumers are yet to see the benefits. Further calls have been made for lenders to pass on the interest rate reductions to secured loans holders.

Such steps include the lowering of the official base rate of interest by 0.5% to 4.5% earlier this month. First time buyers in particular would benefit from lower rates and that lenders should recognise that profits won't be as high next year.

More and more people are having to think about refinancing their debts - especially due to the current economic slowdown. By choosing to consolidate their debts, into one monthly payment, people aim to keep their heads above water and better control over their debts. As the money markets begin to return to movement, we are expecting banks to be a little less reticent in the coming months, and so the likelihood of consolidation loan applications rising is a distinct possibility.

The advantage of a consolidation loan, is that it enables you to combine all your debts (loans, credit cards, overdrafts) into one monthly repayment, which can seriously help when sorting out your finances. It can also help to bring monthly repayments down, by agreeing a term time to suit you. The bad part? Rates of consolidation loans can be a little higher than you would normally find, but often, it is the only option.