Finance Money News

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 A Picasso Cubist painting was meant to be in an auction next week, and it has been withdrawn from sale.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.

There are a number of things that you can put up there, when saying what events in your life could be the most stressful. Should serious financial difficulty be one of them?

So, what should you do to try and avoid these problems? What are the telltale signs of money problems, and what should you do to try and stay away from applying for IVAs/Bankcruptcy?

The main signs of financial problems are:

• falling behind with mortgage payments
• living off your credit card to survive until pay day
• taking credit from people you wouldn't normally ask

Trying to cut back on luxuries would be a primary thing to try and do, so that your necessities each month can be covered and also help towards paying off debts before they get too much out of hand. If this is either too late to do, or you're just stuck on how to go about sorting your money out, then that's when you make a trip to an advice provider (This doesn't have to be a financial advisor in the beginning, it could just be an advice line, or an internet search).

If you need to swallow your pride and go to an insolvency practitioner, you will be seeing a licensed professional who knows what to do to help. Take al ist of your assets with you, and details of your income/expenditure. You will be given a number of different options and their benefits, so that you can make a more informed decision over what avenue you want to go down.

An IVA

This is an arrangement with your creditors, which will give you breathing space, to allow you to get yourself sorted. An example would be to pay a proportion of what you earn into a fund, which, over time, will allow the creditors to be paid more than they were originally owed. Not a bad deal for them, if they just take a back seat for a bit. Setting an IVA up could cost you about £1,500 - sometimes more.

Bankruptcy

This will involve your local county court, and usually lasts for 12 months. Often, you can continue to work during it. Going bankrupt does not automatically mean you are going to lose your home - it will depend largely on the value of your house, the mortgage you still owe, and the general circumstances of your individual case. It also doesn't bring along with it a social stigma. You can survive through the process - it really isn't the end of the world, but ideally, a last resort.

Shoppers have been urged to use their reward credit cards to cover the cost of household payments. According to American Express Platinum Cashback Credit Card, by paying for goods with a debit card, consumers are missing out on earning hundreds of pounds of free cashback a year with a reward credit card.

The advice is of particular importance at the moment, seeing as 89% of people are paying more for their household costs than they were doing a year ago. Amex also added that each household could earn £380 cashback in the first year of owning a reward credit card.

The contents of an average woman's handbag could put them at serious risk of having their identity stolen.

According to Sheila's Wheels, women are carrying around way too much personal information with them.

Two thirds of women have at least one item which could put them at risk, in their bags. These can include a diary containing personal info, a cheque book or even utility bills. 7% of women admit to carrying their passport on a regular basis.

The average contents of a handbag are worth as much as £290, including mobiles, make up, MP3 players and money.

Women have been advised to change their bag habits - only carry around whats essential. Also, get a credit report to check your finances.

Good job I don't have a bag really!

It seems that three quarters of Brits are fearing for their health as well as their financial welfare. The study, by Bupa, surveyed 10 of the UK's biggest cities, and found that of those concerned about their health, 9 out of 10 expected the current economy slowdown to increase levels of worry and stress, and 4 in every 5 feared for a stress-related illness, such as depression.

Following the news that unemployment has hit a 10-year high, the health insurance provider also found that job worries are the heart of worry. They found that more than half of Brits worried about their money situation and more than a third feared for their job safety.

Almost 8 out of 10 people are expecting sleepless nights and 60% anticipate that their exercise routine will suffer.

At 96, Millvine Dean is the last remaining survivor of the Titanic, which sank in the North Atlantic in 1912. She was just 9 weeks old when her and her mother were rescued after the ship plummeted.

But now, due to the costs of nursing homes and the credit crunch, she is having to sell her possessions which she has kept since that day. She hopes to raise £3,000 by selling items such as a suitcase full of clothes given to her after her rescue and several rare prints of the Titanic.

The auction is in Wiltshire, and the profits from the sale are to go towards her care at a private nursing home in Hampshire. Just shows how much nursing care costs, and what lengths people have to go to to be able to afford to pay for their healthcare. The credit crunch can't be helping either.

Families seem to be finding themselves under increasing financial pressure and more and more are unable to pay for their ageing relatives' healthcare costs. According to caredirections.co.uk, many households are facing intolerable strains ont heir finances due to the credit crunch and their elderly relatives are suffering as a result.

In addition, delays in the processing of lasting legal power of attorney applications have led to many families being unable to release equity from the parent's/grandparent's homes, leading to a lack of funding for costs such as care home fees.

Credit Action have announced that one person every five minutes is declared bankrupt in the UK and have also revealed that at least 104 properties are repossessed every day as the average household debt tops the 9,000 mark.

It’s been thoroughly recommended that people in hardship go and get advice before it’s too late. Many people are missing out on benefits and tax credits which are available to them, often because they are unaware that these benefits exist or apply to them. Debt advice could help you find out what you are entitled to, and budget your finances so that you don’t lose your home too.

Men who grow up believing that women should stay at home may be labelled old-fashioned, but they could end up well ahead in the salary stakes.

A US study, found in the Journal of Applied Psychology, suggests that they will consistently out-earn the more modern man - On average meaning an extra £4,722 a year.

Most of the big lenders, including Halifax, Woolwich, RBOS and Lloyds TSB have passed on yesterdays rate cut. Nationwide and Abbey were still considering their reaction to the BofE's move while HSBC said it never responds immediately to base rate changes.

NS&I reacted immediately, by passing on the 0.5% cut to holders of its Direct Cash ISA.

Perhaps it's the early decision that has caught the lenders off guard? Hence why they are taking their time responding to it?

Car insurance policyholders have been warned about the growing trend for petrol being stolen as a result of the credit crunch and the rising cost of fuel. Four-wheel drives are being targeted inparticular due to their larger tanks and height from the ground - this makes it easier for thieves to siphon petrol.

Criminals are now even resorting to drilling into petrol tanks - especially on newer cars, which are more difficult to siphone petrol.

Consumers are being recommended to seek professional advice, following the announcement that more people are being rejected for loans and mortgages. Over 3.4million people have been rejected for unsecured and secured loans, mortgages and remortgages in the 18 months up to July 2008.

Also, 450,000 customers were turned down four or more times, before finally having their application accepted. This may be a sign that people are risking debt management problems, by agreeing to rates which they won't be able to repay.

All that can be done is do your homework before you search online for a loan or mortgage. Check the credit report and possibly ask for help from a broker of advisor.

UK homes are throwing away £6.8bn each year, because they aren't shopping around for their fuel provider. Nearly 14m homes are wasting, on average, £490 a year because they haven't taken the initiative to switch energy provider.

Confused.com has reported that since the start of the year, customers who have switched provider have saved £296.23 each. Consumers should check that they are on the right tariff for their usage - one that reflects their household consumption.

Just switching to an online tariff and paying via direct debt could save you £490 a year.

People who have to have long spells of sick leave due to psychiatric reasons are twice as likely to die from cancer as healthier employees. According to findings reported in the British Medical Journal, out of 6,500 civil servants, those who had taken long periods of sick leave had a 66% higher risk of early death.

The cancer risk may be accounted for by depressed people not seeing a doctor soon enough.

Northern Rock have withdrawn a number of savings deals to new customers, to ensure it doesn't abuse any competitive advantage. The nationalised bank is one of the few places that has 100% guarantee that the customers' savings are safe, as it is government backed. It must now cap its market share of UK retail deposit balances at 1.5%, as part of a commitment made during the nationalisation deal.

They have cut its Silver Savings, Silver Savings 30, Business Reserve and a range of fixed rate bonds, following a recent withdrawal of its Fixed Rate Asser Bond and E-Saver products.

The increase in the national minimum wage, from £5.52 to £5.73 an hour for adult workers has come into force. The hourly rate for 18-22 year olds has also been increase from £4.60 to £4.77 and for 16/17 year olds, it has risen from £3.40 to £3.53.

The government is planning to introduce new regulations in April, which will impose a £5,000 automatic fine on any boss who fails to pay the minimum rate. Serious cases could lead to prosecution which could subject the employer to an unlimited fine.