4 Mortgage PPI Costs Increase due to New EU Regulations.

Thousands of women in the UK will see a sharp rise in the cost of insurance later this year once new rules outlaw the use of gender in calculating insurance premiums. Currently, some forms of insurance are cheaper for women and others for men. From 21^st December 2012, insurers will no longer be permitted to charge rates separately for men and women.

The European Court of Justice’s ban on gender discrimination when setting prices for financial services will come into effect on the 21^st of December 2012. This will also affect men as the ruling means that pension income paid by annuities is likely to fall post 21^st of December. For men, income protection cover costs are likely to increase too.

What’s the impact?

Currently, women typically pay lower for their life insurance costs but according to the new European rules and estimates by the HM Treasury, women’s premiums could go up by as much as 15%.

The ruling will not affect existing insurance policies but they certainly will impact on the pricing of those taken out after the 20^th of December 2012. Women will be hit the most in the form of a hefty increase in the cost of car and life insurance.

0 The hidden truth behind travel money

The hidden truth behind travel money – the complete guide for penny pinchers

Every year we sit around and wait for that period of time when we can forget about work, leave the kids with grandma and get on a plane bound for a far and mystical destination. We spend hours planning it; which hotel is best value for money, plan routes, compare ticket prices and research the amenities at our chosen place of holiday. On my last trip to Brazil with my wife I couldn't believe how much money we wasted on exchange rates in retrospect. Once home, I educated myself on the subject. Astonished at what I found, I wanted to share it with others so they won't make the same mistakes we did.

You must think, “it can't be that much”. Well, if you are converting Euros to Dollars you can possibly lose on €40 for every $500 you exchange! That got your attention didn't it? There are 2 elements to consider when approaching the matter; the exchange rate offered and commission fees. Exchange Bureaus make their money from the difference between the value they buy and the value they sell. The higher the exchange rate they offer - the better, so you better find out what the current exchange rates are before buying or selling any sort of currency. Commission fees may be in the form of minimum charges, flat fees and handling fees. Beware, some bureaus may offer great exchange rates but come with high commissions and vice versa. Do your research – and pay attention to the details.

So here are some pieces of advice on how to save a buck or two. First and foremost, stay clear away from Airport bureaus – they are exchange death traps and are renowned for offering poor exchange rates as well as high commissions. Also, whilst you might expect your bank to give you the best deal on foreign currency – don't just assume since it will not always be the case.

Whilst away, pay cash whenever you can - credit card usage often involves transaction charges which might not seem a lot at the time but trust me, they pile up. Using your debit card for purchases abroad might cost you approximately 2% - your bank doesn't like it when you exchange your money elsewhere (Check your bank credit policy before jetting off). Of course it would be foolish to carry so much cash, the last thing you want is for it to get lost or stolen and ruin your time away.

So what other cash alternative are there to ensure your piece of mind? Prepaid cards have the same usage as debit/credit cards but without the exchange rate fees , they work by charging them with cash before the holidays. Travellers cheques are also a safe bet though slightly outdated. However, even these two are subject to different fees, so read the fine print.

In conclusion, my advice to you, is to spend as much time planning your holiday money as you do the rest of your trip. There is nothing worse than returning from a trip and seeing a big dent in your bank account, especially when you will already have the post-holiday blues!

0 A Guide to Employee Tax and NI

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Getting your employee tax and national insurance right can save you money and a nasty letter from the tax man, as well as fines and even court orders. Some employers do not understand the basics of employee tax and NI which then results in them overpaying their staff, or perhaps even underpaying them. This guide aims to help you better understand what is required of you, as well as how you can save money and avoid those nasty fines.

The Basics of National Insurance for Employers and Self Employed Workers

As an employer it is your duty to pay National Insurance Contributions (NIC) on the earnings your employees make from your business. This does not just cover their basic salary or cash, NIC must also be paid on benefits such as car allowances, holiday pay and so on.

If you are self employed, you will also have to pay your own National Insurance as well as income tax, which is worked out separately.

 There are 6 different classes of National Insurance, each one depends on your earnings, whether you are self employed or an employer and the benefits you can expect throughout the tax year. For more information on which class you fall into it is best to speak to an expert in chartered accounting.

When you, as an employer, operate your normal payroll system such as PAYE (Pay as You Earn) the NIC will be calculated at the same time. This only applies to your employee earnings however,

8 How to Save Money By Taking a Bridging Loan

What Are Bridging Loans?

Bridging loans are modes of financing which is short term in nature. These are resorted to by people who are in dire need of raising funds immediately. These type of loans are normally secured by people in the residential homes, commercial, and semi-commercial properties sector. Arrangement for bridging loans are easy to do, and can be availed of easily within a short period of one to two weeks.

There are two types of bridging loans. One is a second charge bridging loan that is availed of in case there are arrearages in monthly amortization payments. The second would be a first charge loan which would pay off the full amount of the mortgage and any arrearages in monthly payments.
If you have the financial capability to pay off the monthly mortgage but had just encountered a few lapses, the first option is recommended to help ease you out of the financial situation. If however, availing of the bridging loan would result to a better credit standing, then the second option may be recommended. With this option, you may opt to get another mortgage loan later, to pay off the bridging loan.

The present economic downturn had a number of homeowners facing prospects of repossession due to lapses in monthly mortgage payments. The reasons why these occur are varied. These may be due to reasons of ill-health, loss of jobs, sickness in the family, and other unexpected expenses

4 Where to invest in the UK?

In the current climate of widespread financial uncertainty, knowing exactly what to do with your money can be particularly tricky. The impact of the continuing economic slump on the various parts of the UK has varied from region to region. While some areas have held up reasonably well in the face of weak consumer demand domestically and the long-running crisis in Europe, others have seen a sharp fall in economic activity. It’s important, then, to think carefully about exactly where you invest so that you can guarantee at least a reasonable return.

Perhaps the most obvious place to park your money in the face of economic weakness is the buoyant London property market, which continues to demonstrate considerable strength. Demand for high-end property has rocketed, as many of Europe’s wealthy seek places to park their money, well away from the deepening crisis in Europe. It has to be said that London is pretty much propping up the wider British property market almost single-handed. In some parts of the country, property prices have plummeted since the initial onset of the current crisis. The old adage that ‘you can’t go wrong with bricks and mortar’ remains a popular one, but even London’s property market isn’t necessarily a guaranteed banker. Still, there are few signs of a rapid fall in the city’s property prices in the short to medium term.

The hubbub surrounding the Olympics has also provided London property with a shot in the arm, but the wider economic impact of the Games and its long-term legacy remains to be seen. Previous host cities such as Los Angeles and Sydney have been singled out as examples of the positive lasting effect the Olympics can bring,

3 How To Be Frugal?

Being frugal is not always easy in today’s busy world. You want to be frugal and you mean to save money but somehow you never quite get there. If this describes you and you really want to be more frugal, you need to start following a few simple rules.

Set Something Aside for Emergencies If you want to truly be frugal, you have to plan for the unexpected. You should include a set amount in your budget each pay period to handle emergency car repairs, trips to the doctor, home maintenance and the like. This money should always go into your savings account and not be touched until it is needed. Otherwise, it will be all too easy to reach for the credit card or take out a payday loan when your car needs a new tire today and you do not get paid until next week.

No Impulse Buys We have all been there. We see something at the store we just have to have, bring it home and then a week later we wonder why we bought it. To stop this from happening, make a rule against impulse buying. If you want something, wait at least a week to purchase it. This will help you determine if you really want it and if you can get a better deal elsewhere.

Play Money
Set aside a small amount of money you can use each period for play money. This is money you can spend however you want, no questions asked and no guilt involved. To really make this work, you need to get your play money in cash or else it will be very tempting to go “just a little bit over just this once” and end up wrecking your budget.

Cut Out the Small Expenses
Frugality is not just about controlling the major expenses; it is also about watching the smaller ones. This means limiting small expenses, such as the daily cup of coffee or the routine stop at the gas station for soda and candy bars. If you want to be frugal, you do have to sweat the small stuff.

Stick to Your Budget
The cardinal rule of frugality is if you do not have it, do not spend it. You should make certain all of your bills are paid and you are meeting your savings goals before spending any other money. If a purchase is going to jeopardize your financial security, do not do it.

Remember Your Goals
There is a reason you want to be frugal. Maybe you are trying to buy a new house or car, maybe you are trying to save for a trip around the world, or maybe you are trying to save to have a baby. The reason does not matter; what matters is that, when confronted by the double venti cappuccino or shiny new electronic toy that you want very badly, you remember that you want to reach your goals even more and take a pass on the purchase.
It may not always be easy to be frugal in today's world, but you can do it if you follow the few simple rules outlined above.

About the Author:

Sally writes on behalf of a number of successful businesses in the South West including DrummondLLP.co.uk a bookkeeper in Plymouth, Drummond LLP strive to deliver excellence and their service extends to the South West region. If you need a bookkeeperin Devon or Cornwall – Trust Drummond LLP to take care of all of your accountancy needs.

0 Repost: How the Mortgage Industry Can Help the US Economy

This is an article I recently wrote for Economic Intersect. Do visit the original article at http://econintersect.com/b2evolution/blog2.php/2012/10/09/how-the-mortgage-industry-can-help-the-us-economy

With the world still recovering from the 2008 global financial meltdown, the Federal Reserve is using every means necessary to stave off any potential threats to the U.S. economy. On September 13 Chairman Ben Bernanke announced another round of quantitative easing to further stimulate the economy which is suffering from sustained unemployment above 8% and little growth in GDP. As seen on CNNMoney the next morning (the 14^th), world markets were reacting with positively, pushing U.S. stock indices to their highest levels in five years. QE3, this round involving purchase of mortgage-backed securities by the Fed, continues the aggressive stimulus program it began after the financial crisis.

Follow up:

How Will The Fed Make a Positive Approach to the Market?
The Fed announced it will purchase $40 billion of debt every month for an indefinite period of time in an effort to inject long-term, stable growth in the labor market by bringing down the cost of borrowing. Quite simply, a reduction in mortgage rates provides economic stimulus by creating demand for housing and more refinancing, giving people more to spend. The Fed seems to believe that relieving banks of some of their MBS inventory will create more mortgage issuance.
It is no secret companies are hoarding deep pockets of cash, afraid to take on more cost and add workers due to fears of another economic recession and the reticence of consumers to increase their spending. QE3 is an attempt to alleviate concern by letting corporate leaders know the Fed will continue to get involved in an effort to inject life into the economy. 

Improvements Brings a Light to the Darkened Economy
Coincidentally, one economic bright spot this year is the very same asset class that helped incite the 2008 crash and subsequent recession – residential real estate. The housing market has bottomed out (at least many seem to believe so) and is now beginning what could be a long-term trend upward.

An improvement in housing prices led to a second quarter decrease in home mortgages being underwater, down to 10.8 million from the high of 11.4 million in the first quarter. In Southern California, housing prices are once again rising, spurred by increased August sales, which were up 9.0% in just one month and 14.2% higher than the same month a year ago. 

Foreclosures and Their Impacts
The government’s 2011 shift in policy to address housing supply and not housing demand has been the stimulus for a significant decrease in foreclosures. Three million homeowners have lost their homes to foreclosure since 2009, but that number has fallen since the 2010 September peak. Congress is considering a plan that would help responsible borrowers significantly reduce their mortgage payments several hundred dollars per month, yielding mortgage holders a $3,000 per year increase in savings. 

With homeowners stuck in mortgages at 6 or 7% interest and housing values beneath their pre-recession levels, there has been little mortgage relief available until now. This is an expansion of The Home Affordable Refinance Program (HARP) that has helped homeowners to stay in their residences. According to makinghomeaffordable.gov, with HARP homeowners whose mortgages are owned or guaranteed by Freddie Mac or Fannie Mae can refinance their homes if they meet a certain set of conditions. A recent analysis by Morgan Stanley concluded that refinancing half the mortgages held by these institutions would translate to a $46 billion dollar a year increase in capital for consumers to spend. 

Unemployment and Its Negative Effects
A housing recovery has always been essential to signalling a turnaround in the economy and the infusion of jobs into the workplace. The construction industry was one of the hardest hit segments in the recession, losing 2.2 million jobs, approximately one quarter of all jobs lost in the financial crisis.

The massive pre-recession run-up of housing prices led to millions of new jobs related to housing, but the slow recovery in real estate has equated to a tepid recovery in that sector’s job growth. Unemployment among construction workers has been sustained above 12%, far above the nation’s recent unemployment figure of 7.8% in September. With GDP hovering below 2% so far this year, a growth spurt in housing could dramatically help this figure. Real estate construction has traditionally contributed 5% to GDP, more than double the current 2.3%. 

HAMP Study Says Banks Unable to Deal with Volumes of Mortgage Mods
The government's mortgage modification plan has seen its downfalls as well as successes. While attempting to modify about 3-4 million mortgages, HAMP has completed only 1.2 million. A study has been released authored by economists from the Federal Reserve Bank of Chicago, the Office of the Comptroller of the Currency and four high ranked universities which explained this shortfall. In the study, it was shown that the largest banks were not staffed or organized sufficiently to deal with high volumes of mortgage modifications, and would have come up short even without the added load from HAMP. The study also found that about 800,000 homeowners were not processed because of confusion in processing and clerical mistakes.

0 Repost: Housing Will Be What Pulls Us Through

This is an article I recently wrote for The Niche Report. Please do visit the original post at http://www.thenichereport.com/blog/housing-will-be-what-pulls-us-through/

The worldwide economy is shaky at best. In fact, there are more doomsday predictions about total economic collapse out there right now than there are about any other subject. So who do you believe, and what could make the world a more stable place to live economically speaking. When you set aside the EU problems with government debt, the slowdown in Chinese manufacturing, unrest in the Middle East and chaos in South America and Africa, all you have left is the U.S. economy; the largest economy in the world for both consumption and production. Yet, the U.S. continues to struggle with high unemployment, low manufacturing data and soaring prices for the average consumer.

So Where Does the Problem Lay?
The United States has always relied upon the housing market to pull it up from a recession. Throughout history, when times were tough, the construction industry pulled the weight of the other lacking industries. However, the housing construction industry has not been able to contribute to the overall growth of the country for six of the last seven years. It is only in 2012 that home construction has begun to show signs of life.
In a recent article released by Reuters, 35 of the top 38 economists in the country believe that the housing industry is finally beginning to return, and that the home construction industry will actually contribute to the GDP figures this year.

When home construction occurs, jobs are created, support businesses see an increase in demand, and government generates considerable revenue. In fact, the Government Accounting Office has stated that each new home built creates at least $90,000 in overall revenue for government entities.
The other problem is the large amount of homes available on the market today at extraordinary low prices. Because home values have dropped so much, and there are too many homes available, the desire to purchase is absent.
While it would be normal to think that low prices would drive demand, the opposite is true. People see home values dropping and do not want to take the risk that if they purchase a home now it will be worth less next month. When people see home prices continue to rise, they will interpret that as “time to buy” before prices go too high.

Other Contributing Factors
High unemployment rates are also a large cause of the housing industry problems and the overall economic downturn. Unemployment has remained over eight percent for several years, and people are simply afraid to commit to purchasing a home because they do not know what tomorrow will bring with their employment.
Unemployment, once you factor in the reported rate of 8.3 percent, and the additional six percent that are no longer looking for work, you have a population that is almost 15 percent unemployed. When you combine this figure with the amount of retirees, students and people receiving disability compensation that are out there, the number becomes closer to 25 percent. That is nearly one-quarter of the country not earning a living, consuming goods to boost the economy, or purchasing real estate.

What Can Be Done?
For the economy to heal in the United States, and around the world, a serious look must be taken at government debt burdens, the way commodities are traded and educational opportunities.
The people must begin to educate themselves to compete in the new millennium. Once they can return to work, they will become consumers again. Once they feel safe, they will begin to purchase homes and other goods and the economy will heal.

1 How To Protect Yourself When Choosing A Debt Relief Program

When it comes to getting out of debt, it seems like everyone is an expert. You'll hear advice from bloggers, financial advisers, debt relief companies, and even friends and relatives. Just keep in mind that there is no single best way to get out of debt. There are plenty of options, and all can work in the right situation.

The most convenient way to find good, honest debt advice is searching through the available online resources. You can read these on your own time. And draw your own conclusions. Just keep in mind that anyone can set up a website that makes their company of their solution look professional.
If you are going to set up your own debt relief plan, then you don't have to worry too much, since you can't really get into too much trouble. Unless of course you decide to do something unethical. If it sounds too good to be true, or if it sounds dishonest, then it probably is. So stay away from those types of solutions.

So, if all you are doing is setting up some type of repayment plan, keep in mind that you may need to try a few to see which work best for you.

But if you are seeking help from a debt reduction service, the choosing the right company is crucial, as there are companies out there that will take advantage of your situation.
You will find several many debt management companies online that

0 How to Save Time and Money by Working from Home

We are all looking for ways to tighten the reins and figure our place in the larger scheme of things. While the world economy and your local economy was likely go-go-gangbusters in the 1990’s and early part of the new decade, in the past few years the economy has been in a tailspin and people are not living nearly the same way as they once were. It is important, then, for those looking to make some kind of meaningful change, settle your debt, or at the very least not incur any new debt to look at all possible options.

One way to get help with your debt may be actually to work from home. Depending on what your skill sets are and depending on your current employment status is, you may be able to do great things and make a surprising and memorable change by eschewing work in the traditional sense and taking on work from home. What kind of money and time can you save working from home?

Gasoline: One of the biggest expenses many of us incur as we drive in and out to work every day is gasoline. How much do you spend every week on

3 Understanding your rental agreement – five things to keep in mind

It is always exciting when you move into your own place, whether you are purchasing or renting. But remember, just like a mortgage, signing on for a lease is more than a big step: it is a legally binding agreement. Wherever you are renting real estate, western suburbs, Melbourne to Allura to inner city Glebe, you are bound by your rental agreement. Here are five things to keep in mind.

1. You have to fill out an application form first

It seems you have to fill out an application form for almost everything these days, and a rental property is no exception. Once you find your dream rental property, you’ll need to fill out a tenancy application form, which enables the landlord to check your references and credit history. If your application is successful, the landlord will give you your rental agreement.

2. Your agreement has a time frame tied to it

As with any other document, make sure you read your rental agreement carefully. The first thing to look out for is the time frame tied to the agreement. Is the contract for a fixed term or periodic tenancy? The latter is usually renewed on a weekly or monthly period and

0 Clever Ways to Make Money from the Property You Live In

Are you struggling to cope with the cost of living? As monthly outgoings for most people rise significantly it is only natural to want to find a way to make more money. If taking on a second job is not an option you will be pleased to know that if you are home-owner you could be making money from your home. So, what are your options?

Rent Your Spare Room

This is one of the oldest ways around of earning extra money from your home with companies such as Airbnb making it extremely easy to find tenants. Unlike in the past you can find lodgers for just a few days or for a Monday to Friday stay if you’d rather not have a lodger 24/7. So if you have an unused room this could be ideal for you.

Use Your Attic as Storage Space for OthersIf you have an attic or other area that is empty and unused you could charge people to store their possessions there.

3 A Mother’s Instinct: Money Saving Tips For Mommies

When it comes to family finances, moms are always on the frontline when it comes to buying the supplies for her home. She’s the one in charge for getting foods, giving allowances and providing the needs of the kids. Since, our economy isn’t in good shape these days; there really is a need to be meticulous when it comes to shelling out cash for these needs.

Therefore moms have a huge responsibility in saving money more than earning and spending it too much. Among all the skills a mother should be good with; it’s financial management that she should really learn to grasp. However, this does not mean she has to take crash courses and learn terms like niceties of annuities, exchange-traded funds or other complicated concepts.

The best teacher she can learn from is experience. But moms are good when it comes to instinct so this shouldn't be a problem. When a certain need arises, moms are always on the front-line of the battle and most often, they do something others can’t. So for the moms out there,

1 10 Things You Should Invest In

If you are considering getting involved in investments, you should know which things are the best products that will give you the most return on your money. Here are 10 things that you should invest in: 

Land

Owning and investing in land has been something that has brought people anything from a few hundred dollars in rent every month to millions of dollars when they sold it. It all depends on the type of land that you buy. If you manage to buy them when the prices are low and then sell when the prices are high, there are big returns you can net for your initial investment.

Housing

Just like land, investing in buying property in the form of homes or businesses can net you hundreds to millions of dollars. You buy these properties for purposes of either renting them or selling them. It all depends on whether you want to become a landlord or just want to buy a property, fix it up, and “flip it” and earn more money than you bought it for. 

Mutual Funds

Mutual Funds part of the stock market and are a group of selected stocks bought by the mutual fund. Most have between 5 to 30 companies in the mutual fund. That fact provides more safety than if all your funds were spent on only one company.