Finance Money News

Up to 5.4million houses are now being placed under the ‘fuel poverty’ umbrella, due to the ever-increasing costs of gas and electricity.

And, with even more rises expected, these figures aren’t looking too good.

People suffering from debt management problems will be particularly vulnerable, as more of their income is being used to pay off their debts, rather than paying their current bills.

Families with young children, and also the elderly, are at risk too and should be seriously considered by the government when considering what to spend money on this winter.

Or don't - it's not the best thing to choose to do. But, if it does happen when skiing on the French Alps for example, Tesco are there to help.

They are offering their travel insurance now, with free winter sports cover for all customers who take out a yearly policy between now and January.

The free cover covers 22 days, across 14 activities, so is ieal for people planning to jet off for a ski holiday or similar.

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.