Savings

The Implications Of Raising Retirement Age Seco

The upcoming generation of seniors can expect to experience a considerably different retirement from that of their parents. With life expectancy rising the average worker should not expect to retire in their 60s but later at age 70 or later. They will have to work longer and save more money before they can retire and enjoy their retirement years.

Old People Crossing - Sign

Government officials say it was inevitable that the retirement age would rise as healthcare improved. We are forced to extend the working age for the average citizen to match the increase in life expectancy. Improvements in modern medicine and lifestyle improvements have one in four British males born today expected to reach the age of 100. This increases in life expectancy lead the government to raise the retirement age for economic purposes. Government officials claim raising the retirement age will save the British tax payer around 13 billion GBP a year.
Some employers are reluctant about the increase in retirement age and fear a decline in the quality of their workforces. Employers have noted that the performance of older workers decline with age. Older workers exhibit a reduced capacity to work and have health or safety concerns younger workers do not. Not only do older workers experience increased sickness but they exhibit a lessened interest in their jobs. These workers begin to coast as they near retirement age and their performance on the job decreases. Having these workers on the job longer could have a negative affect on other workers. These employers fear the quality of their workforce might decline as a result of the increasing the retirement age.
Some also contend that raising the retirement age will make it difficult for young people entering the workforce and eventually raise their unemployment rates. Retirement has been used as a way to phase out older workers and make way for new workers. Raising the retirement age will create a shortage of jobs in an already difficult economy. The shortage of jobs among young workers could cause resentment toward older workers if they are unable to find work.
The increase in the retirement age is also seen as a disadvantage to seniors who are working class or manual laborers. Because of the strenuous nature of their jobs they may have difficulty reaching a higher retirement age. Corporate types, who make more money, can afford to retire early before they receive their pensions and enjoy an early retirement on their savings. But, the working class will have to work longer at strenuous jobs to reach their retirement age and live off their pension.
Advocates of the working class say raising the retirement age is actually an attack on the poor and will send Britain back to the days of Charles Dickens. It was a time when the wealthy could retire from working but the poorer classes were forced to work until the day they died. Wealthy people have access to better health care and can work longer to enjoy a later retirement age. Whereas the poor who are unable to afford the best in healthcare can develop ailments that may prevent them from reaching the proposed retirement age to enjoy their pensions.
The increase in retirement age is seen as a reaction to current social changes. This response by the government could have a negative effect on workforce performance and quality of life for the poor. To counter some of the backlash over the new retirement age the government should create more jobs to ease unemployment among the young and help businesses utilize the experience of seniors with more funding for apprentice programs.

Continued Reading:

http://www.industrysuper.com/understand-super/retirement/retirement-age/ http://realbusiness.co.uk/charlie_mullins/rising-retirement-age-great-news-for-british-bosses
http://press.eversheds.com/Reports/Review-of-default-retirement-age-4d5.aspx

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About The Author:

Frank is a keen cyclist and writes for investment consultancy Aon Hewitt among other businesses on a wide variety of subjects.


Student Advice – Budgeting & Money Saving

Money Saving TipsThe first few days at college or university are pretty exciting, you get registered, find your home for the next year, bid your parents farewell and you are finally on your own and ready to start a big adventure.

For most students though, this will be the first time they have lived on their own and had to fend for themselves. Cooking and washing often come as a shock, but perhaps the biggest challenge is learning to manage money effectively.

If this is something you are worried about, it is important to plan early.
Here’s how to make sure you don’t run out of money!

What Can You Afford?

The good news is that predicting your cashflow for the next 3 years should be pretty simple. You need to start by figuring out exactly what you have coming in. You can add up what you expect to get from student loans, jobs etc…

Now factor in your living costs and tuition. Your tuition fees are probably set at a certain amount per year, so you can take off that amount easily enough. You should also know what you will be paying in rent (and you can estimate bills if necessary); so take off that amount too.

It is easiest to work with your total income over a year and take off your costs. Then just divide that number by the number of weeks in a year (use 52 unless you intend to work over the summer) to find out what you actually have to live-off each week.

Track Your Spending

Once you know what you can afford to spend in a week, start tracking what you actually spend. This may seem like a pain, but it will help you to keep on top of your finances.

Make a note of everything you spend (except for rent and tuition) and each week work out your total outgoings. You can average your spending over a few weeks and you should easily be able to see whether you are sticking to your budget.

If your spending is regularly going over what you can afford, you obviously need to be more careful (or find some additional income).

Learn To Say No

Some of your friends will seem to have more money than you (and some will just not realise how little they have). In the first few weeks especially, it can be tempting to go out all the time, but that is a sure way to over-spend.

It is important to say no when you can’t afford to go out. Or better yet, suggest staying in and everyone cooking together, followed by drinks and games.

Living in student accommodation can be a lot of fun without the need to go out and spend money and if you are careful you can have a lot of fun on a tight budget.

Running Out Of Money

If you keep a budget, you should be able to tell right away that you are going to be short by the end of term, and if that is the case, take action right away.

You could consider moving to a different (cheaper) accommodation if that is an option. Otherwise though you will either need to spend less money or earn more.

One option is to apply for an overdraft to tide you over, and then you can get a summer job to pay it off and hopefully save some extra money ready for the following year. Alternatively; in your first year especially; there is no reason not to get a part-time job to supplement your loan..

This post was contributed by Rick Peterson who writes for a private tutoring website called Uk Tutors. Rick is a mathematician and a lover of science and education.

Image credit: http://www.flickr.com/photos/44549151@N03/4794592887/


Understanding Home Insurance

Whether you are a homeowner or a tenant, taking out home insurance can give you peace of mind. However, with so many home insurance policies on the market, it’s important to make sure you understand what they cover, so that you can find a policy that will suit your needs.

Types of Home Insurance

UK home insurance policies fall into two main categories – buildings insurance and contents insurance.

home_insuranceBuildings insurance provides cover for structural damage to your property from fire, storms, vandalism, floods and other events. The circumstances in which your property is covered and the extent of the cover provided will depend on the terms of the policy you take out. If you’re taking out a mortgage, your provider will usually insist that you take out buildings insurance. Structural damage can also be expensive to repair, so taking out buildings insurance is a sensible move for almost all homeowners.

Contents insurance provides cover for the possessions you keep in your home if they get damaged in a fire or flood, for example, or if they are vandalised or stolen. As with buildings insurance, the amount of cover provided and the circumstances in which you can claim vary between different insurers and different policies. Some contents insurance policies also include cover for things like accidental damage to TVs and computers, or lost food in the event of freezer failure. Contents insurance is suitable for people renting a property, as well as for homeowners.

You can buy separate buildings insurance and contents insurance policies from a wide range of providers, but many insurers also offer combined buildings and contents insurance plans. This is another detail that a prospective buyer should look into.

Specialist home insurance policies

Some insurers provide specialist home insurance policies. These include policies specifically designed for people with homes that may be difficult to insure under the terms of standard policies, such as houses with thatched roofs and listed buildings.

How to choose a home insurance policy

It’s important to shop around when you are looking for home insurance packages available in the market and compare the benefits offered by different plans, as well as comparing the costs. Look for a policy that provides all the cover you think you could need, but don’t pay for extra benefits that you’re never going to use.

Once you’ve chosen the most suitable plan for your needs, you may be able to reduce the cost by a range of methods. You may be able to lower your premiums by taking out a voluntary excess, meaning that you agree to pay a set amount of the costs involved when you claim, or by increasing your home security.

When taking out home insurance, it’s also important to assess the value of your home and your possessions accurately – over-insuring your home will mean paying more than you need to, whilst under-insuring it could mean paying out more than you expected to in the event of anything happening to your property or possessions.


The Cost Of Living The Celeb Life

Everyone has their own vice, but when you’re a celebrity, they are usually more expensive…and everyone seems to have an opinion about it!
Some people, while judging celebrities’ expensive lifestyles think it’s an absurd and pure ostentation, but until what point is it really?

Put yourself in their places and reflect, ; if you were a celebrity that makes enough money to cover your vices, wouldn’t you do the same?

Products as Personal Branding

Celebrities also get a lot of products just to be seen wearing it or even get it for modeling the product. Ashley Olsen who got the Louis Vuitton Urban Satchel for modeling for the product, and she’s not the only one, there’s plenty of others. A lot of celebrities buy it not only as an impulse buy or because of a vice but also as an investment, because they understand that they are ‘the product’ and that they HAVE to invest in the product to make more money. And of course, having limited edition products that cost a lot when you purchase it means that in the future it’s going to be worth so much more, so it’s a good investment both ways!

How much for the…

Handbags have always been the mother of every girl addiction, it’s a must have item for girls of every age, an item that every girl everywhere when asked, will always tell you that got her first one in their childhood. They are a great way to carry stuff and accessorize your look, so why not love it? Every woman probably has already experienced stars in their eyes when seeing the most beautiful handbag that they have ever seen. At that stage in time it’s a done deal; if the value is reasonable, the girl will put their time and effort to save money enough to buy it. When the price is completely outrageous, the bag’s worth will grow even more, and before they know it, every conversation will start with “I saw the most beautiful handbag’.

But when you are a celebrity, most of the times the dream become true, even if it is not something you have seen already, it’s just something you have thought or even dreamed about one night, like Lady Gaga ‘s Meat Handbag, Emma Watson’s Chanel Classic Diamond Forever Handbag price tagged $261,000 and Victoria Beckham Hermes Birkin Bag that cost $120,000.

It isn’t only female celebrities who spend a lot on their vices, celebrity men have been speding just as much, if not more than the women.

Men and their Motorcars

How can we expect that the male celebrities should sit at home and watch the football game while their female counterparts are out on the town spending money on fashion and fois grass. These guys have been working just as hard, and their innate need for anything that speeds, cannot be ignored.

Like Jerry Seinfeld’s sport Car Porsche 959 that costs $7000,000, Nicolas Cage’s Ferrari Enzo price tagged at $670,000 and David Beckham’s Custom Rolls-Royce Phantom Drophead price tagged $407,000.

Party Rockers in the House

Then there are habits that didn’t come with them since their childhood, these habits and hobbies were born in their teenage year. One of these status symbols is most defintely being the host of one of the biggest parties in Hollywood. As a celebrity host, nothing can be average when it comes cuisine, champagne and entertainment. Not all these real estate expenses are just for entertainment and display of wealth, but because these stars live their lives in the public eye, they make purchases focus on privacy as well.

Think in the lines of Private islands and mansions, a hidden place where they can go to escape the high life, the paparazzi, drama and bustle of their lives, but also, it’s an easy way for them to estabilish themselves as members of the high society.

Rihanna’s Pacific Palisades Mansion with 11,000 square-foot, 7 bedrooms, 9 bathrooms, 14-foot ceilings, a hot tub, swimming pool, sun deck and a 6,000-sq.ft. Garden is valued at over $12,000,000. Ozzy Osbourne’s Mansion with 10,953 square feet, 6 bedrooms, 10 bathrooms, swimming pool is worth $10,000,000 and Billy Joel’s Miami Beach Mansion with 303,310 square feet worth $35,000,000.

These are just a few things that celebrities like to spend their time and money on. “Lifestyles of the rich and the famous, their always complaing” as Good Charlotte would say, does not seem to be very far from the truth. One thing is for certain, if this had to be one of our lives, you wouldn’t hear us complaining.

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  •  License: Royalty Free or iStock source: http://www.shutterstock.com/

Having attained a formal education in Finance (Msc. in International Economics) Simon was inadvertently drawn towards finance blogs and extended successfully upon it by contributing to savings and family finances blogs as well. He is a long time contributor of the financial Blog of the UK short term loans provider Poundaccess, where you can read many of his writings.


5 Financial Expenses To Get Rid Of Today

BudgetingIt is difficult for everyday people to stick to a strict budget with rising and inconsistent interest rates, increase in consumer product prices and many general temptations available in the market. These fluctuations encourage people to take out excess loans and increase credit card limits to simply be able to live comfortably in society. There are numerous expenses encountered that residents could simply avoid paying. All they have to do is re-evaluate their lifestyle and determine what is important, against what is not! Here are 5 general expenses that you could get rid of today and help stick within your budget and help increase the savings account.

Consolidate Your Loans

The first step and possibly the most rewarding long-term would be to consolidate all your loan accounts. This would include all credit cards, personal loans and store loans. By consolidating these accounts, you would manage one simple monthly expense and only generate interest on the one loan. This will eventually save you thousands of dollars as your total loan account develops interest on one sum, opposed to several different sums. This is a highly beneficial long-term saving and available through Fox Symes debt consolidation.

Excess Registration on Vehicles

Depending on the size of your family, it may be beneficial to sell any unused vehicles that you may either own, or have finance on. This may include any trucks or boats that are simply used for vacation purposes. The end result will have you saving money monthly on insurance, and repayments and will also save you annually on registration. Most families could potentially manage with one or two cars, anymore is simply an unnecessary household expense that will chew into your budget.

Home Phone

We are in an era where home phones are simply becoming needless. Most people only use the phone line for internet access. Many providers will sell bundled packages where you are granted internet access and home phone calls at a specified rate, however your mobile service is more efficient and can easily be the sole use for phone calls. Removing the home phone line or package is an immediate cost saving idea.

Unnecessary Subscription Packages

If you really want to save money, here is your chance to remove some of your lifestyle products. Most people will have a subscription to some service. This may include pay TV, magazines or music subscriptions that are simply for entertainment purposes. This will be a difficult expense to remove, however the saving is sufficient, as some subscriptions can total up to $200 per month.

Avoid Eating Out

Pesonal FinanceNot so much an expense in which someone will simply have. However many people will eat out a couple times a week, if not every night. Lunch is the simplest expense that occurs on a daily basis, as you are strapped for time and only have 30 minutes to buy foot and eat. It is financially worthwhile to buy food in bulk at the grocery store and prepare lunch every day. Be sure to cook your own meals for dinner to. Buying lunch everyday can cost up to $150 per week. If lunch is prepared, that’s a weekly saving.

There are many ways to save money and several expenses that could be removed to save money. There are always ways to stick within your budget, you just may have to give up some of your entertainment or favoured lifestyle products in order to do so.

Michael is a Writer from Brisbane, Australia, who covers the topics of personal finance and debt. He says that everyone has expenses that are not necessary and you would be surprised at how much money can be saved. If you are experiencing problems with debt, Michael recommends considering Fox Symes debt consolidation as a possible solution for your problem.

Image Credit: 1&2


The Top 10 Ways That A Notepad Can Improve Your Finances

When making ends meet starts to become a struggle there are a large number of different things you can do to help boost your finances. For most this will mean changing bill and service providers, writing out a fresh budget, or getting a loan of some sort – but there are other more subtle means to improve your financial well-being too that that involve changing your own behavior and the way you think about your cash.

One great example is to start carrying a notepad. This is a tiny difference that will cost you very little and add barely any weight to your load – but once you start using it daily it can make a big difference in the way you handle your money and add significant value to your overall finances. Here we will look at why a notepad can be so useful and how you can use it to improve your cash flow.

Cash Book

The first and most obvious use of a notepad is to use it to keep track of all your expenditures and purchases. This way you can turn any notepad into effectively a cash book that will allow you to keep track of what your balance should be at any time. In turn this will make it easier to stick to your budget, and to keep a running total of how much money you should have (making it easier to spot discrepancies).

Of course you will ideally keep a spreadsheet or another more complete system for keeping track of your money, but carrying a laptop everywhere with you is hardly practical and remembering every little transaction can be tough too. With a notepad you can write down your purchases right there and then, and then just add them to your spreadsheet when you get home.

Wish List

Sometimes you will find yourself in something of a ‘mental battle’ with yourself when you really want to make a purchase but aren’t sure if it can be justified or not. In such a situation you can stand in a store beating yourself up, and more often than not you’ll end up making the impulsive decision to just buy the item and worry about it later. Unfortunately though, you’ll often find that when you get home, you realize you didn’t need that item and you just wasted your money.

What’s going on here is that you’ve made an emotional decision influenced by the in-store marketing, and by the desire to get that new thing. The whole way stores are laid out and their advertising is employed is designed to prime you into a mood where you want to buy things – which means the decision is often almost out of your hands. You can feel like you need to get it now because you’ll forget to come back for it otherwise and because you want desperately to use it that night.

Of course waiting for a few days and coming back later is by far the best way to avoid these very emotional financial decisions, and that means getting your urges under control. Using a notepad can help you to do this simply because it means you can write down what you want. Once you’ve done that you’ll know you aren’t going to ‘forget’ it, and you can come back to it later. This allows you to breathe easily in the store, and to make a more logical decision later on.

Math

Having a notepad and paper allows you to do math and calculate totals when you’re adding items to your shopping cart, or when you’re looking at the cumulative price of all your bills. This is very useful when making decisions about your finances, and particularly when you’re out and about and you don’t have a calculator on hand.

Notes

Of course with it being called a ‘notepad’, the main use of this little tool is to allow you to write notes. This can be any number of things from remembering to take out the trash to writing a to-do list for your day. So it follows that you can also use a notepad for notes that pertain to your finances, and whether this is remembering to pay a bill or remembering that you need to transfer some cash, it can often help you avoid getting into trouble.

This article is authored by Chris Snelling. He is the owner and editor of the popular financial blogging site www.budgetways.com. He believes that the best way to save money is not to spend it in the first place. You can visit his website to read his latest article on effective and skillful budgeting. You can also follow him on Twitter.


When Spending On Sports Equipment Makes Sense

Sports EquipmentMany times it’s hard to see the need to spend a lot of money on sports equipment, as you may not feel that you’re justified in spending hundreds of dollars on the items that you or your kids need to participate in sports. However, there are times when it’s worth it to spend that money, and you’ll find that it’s best to be prepared to part with your hard earned cash when it’s the right time.

Are Your Kids Interested in Sports?

Kids don’t always show interest in sports, and many parents have to encourage their kids to get out of the house to get exercise. If your kids show interest in sports, it’s worth it to buy them the gear. It will help them to feel like they can participate in the sports, and it’s the encouragement they need to keep playing. Your kids will thank you for investing the money in them, as they’ll grow up to be healthy, athletic, and fit teenagers and adults. With the number of diabetic children in the country increasing every year, it’s definitely worth the expense!

Are You Interested in Sports, Fitness, or Weight Loss?

Adults can participate in sports to lose weight, get fit, or have fun with friends. It’s definitely worth investing a bit of money in the right equipment, as it will help you to do the sport right. You can’t play football or practice martial arts without the right gear, as the gear is protective. You’ll need the right shoes to run or jump no matter what sport you’re playing, and you’ll find that good sports gear will protect you from injury as well as help you to play the sport correctly.

Is it Worth It?

Count the cost of being able to play sports or enjoy an active lifestyle versus saving money and risking injury or sickness. You’ll spend a couple hundred dollars on sports gear, but you’ll prevent heart problems, cholesterol, weight gain, and muscle problems. Sure, there will be the occasional sports injury, but that’s so much better than having to worry about your blood pressure. The benefit of being active far outweighs the drawback of spending money on good quality gear, so it’s definitely worth the cost!

Saving Money on Sports Gear

Now, just because you’re going to spend money, that doesn’t mean you have to spend a fortune on the best quality gear. You can buy football gear, basketball shoes, martial arts protective gear, and baseball bats from Homerunmonkey  Amazon, eBay, and other online shopping sites at a great price. You can shop in thrift stores and at garage sales to buy barely-used sports gear that will be reliable but affordable. Unless you’re participating in a professional sport, you can find all the gear for a great price if you’re willing to spend time looking for it. A financially savvy person will invest in quality gear, but they’ll spend time looking for the best deals on that gear. Be wise and shop smart!


Your Savings Account Will Love You If You Follow These 5 Amazing Techniques

Save Money

People are always chasing their next raise because they think it’s going to make their life better and take care of all the money problems, but it’s not and you’ll blow it all. When someone makes $3000 per month they will find a way to spend every last drop of it. That might increase to $6,000 per month, but the only thing you can guarantee is that they will find a way to spend every last cent of it too,so there is once again nothing left at the end of the month.

They don’t do this because they are forced to spend money and neither are you. Everyone does it because they have no concept of saving, most likely because they have never been taught the right way to do it. You might find the odd few people with savings, but they’re few and far between. All you need to do is learn a few techniques for putting money away each month and you’ll feel a lot more secure. You’ll even realize these won’t even change your life too much, but your new savings account will.

Lower the cost

Vegetable market in Milan, ItalyWhen you buy things you usually have a couple of choices. The first one is always the designer brand that everyone magically feels amazing in without even knowing why. Their brain associates the garment with quality because the price is high, which is pretty crazy if you think about it. Your second choice is something that is cheaper and maybe just as nice. Unless it’s falling apart you know it’s good enough to wear so buy it. This isn’t just clothes and can be used for every purchase.

Save money when you get paid

Piggy savings bank

If you have lots of money in your bank account at the end of the month you will spend it on something. It’s there and you can hear it calling your name, “Jill, spend me.” As soon as you get paid you probably separate the money you need for paying your bills. At the same time you can take some money and put it into a savings account. When the month is drawing in you might not have money in your bank, but instead of raiding your savings account you will do without.

No more credit

People will give you credit for anything these days and it’s possible to get in some deep trouble. You might want something and you need to buy it right away, but credit should be the last thing you ever do. All of those monthly bills add up and the idea should be to have the least amount of money coming out of your bank account as possible. When you need anything desperately you should do without until you have the cash because you might think you are desperate, but sleeping on the street is worse.

Food for energy

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There is a big difference between eating food because you love the taste and eating it because it gives you the energy your body needs. There are thousands of recipes were the items on it are particularly cheap and this should be the food you are eating. You will find something you think tastes nice. Then you have meals like steak and duck which taste great, but they also come with a massive price tag. You can also cut the amount of times you eat out at restaurants in half.

Don’t carry money

Bad Credit History?

When you are walking around with a loaded wallet it’s easy to reach for it at every opportunity and you wonder why there is no money left at the end of the month. It doesn’t add up to nothing and can actually be a considerable chunk of your wages. You solve that problem by leaving your money at home because it’s not like you’ll need it in certain situations. At the very least you can carry a small amount around with you in case anything bad happens.

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Hugh Tyzack was a student at University of Oxford, and loves writing as much as a good cup of latte. He is a financial adviser who believes in long term profits rather then short term gains. You can know more about his work at MoneyQED Financial Advice here.


Credit Cards vs. Personal Loans: What is Right for You?

The decision for the best method of borrowing money when times are tough depends on a multitude of factors. For some people, getting emergency access to cash may be best done through a credit card, while for others; the best option would be to take out a personal loan. What constitutes the best criteria for this decision making process?

There are four main factors that you should consider before taking on such a decision: mobility, time, additional benefits, and access.

Mobility

Do you travel around often? People who travel need to worry about security and fraud. Using cash or debit at hotels or restaurants abroad, or even just having it on your person, could expose you to fraud and theft. This is obviously a worst-case scenario, but it is best to be prepared. For this reason, it would be recommended to use credit if you travel frequently. If you get your wallet stolen, canceling your card and getting reimbursed is just a phone call away. Furthermore, credit cards are much more cost when going abroad. You can use them basically anywhere and they will automatically do currency conversions for you. If you are searching for security and traveling cost reduction, than a credit card will be the right choice.

If you are not the traveling type, then this factor will have much less of an impact on your decision-making. Given this, credit cards will generally always be safer than having hard cash.

Time

How much time do you need to pay back your loan? Credit cards can be paid back immediately; you just have to balance the account to zero. Credit cards allow you flexibility when it comes to time. However, if you are intending to not be able to pay the debt back soon, then the interest you will accumulate on your credit card debt will not make credit cards a viable option. In situations where you know you will not be able to pay back the debt for a while, you may opt to take out a personal loan.

Bonus Benefits

What are the perks? A distinctive bonus to opting for a credit card over a personal loan is that you will potentially get access to rewards and discounts, in the form of airmiles, cash back and, promotions at certain stores.  So while you are spending money you would need to be spending regardless, you have the opportunity to get some of it back. This point is especially pertinent to travelers, as airmiles can really add up and save you a ton on airfare. Personal loans will be of no help in the rewards area. Their bonus benefits lie elsewhere.

online personal loanPersonal loans offer you something credit cards cannot: discretion. Once you get the money for your loan. You are free to use it as you please. Whether you want to pay off bills, start a business, or buy expensive jewelry, no one is going to object. Credit cards, however, are monitored by your bank and can therefore have a limited scope of spending diversity.

Access

How easily you can have access to the money? Personal Loans are relatively easy and fast to get. They have very little paperwork, and there is no need for collateral. This is providing that you have a good credit score. Because of how easy it is to get a personal loan, creditors want to be relatively sure you can pay it back. If you have a bad credit score, you can forget about getting a personal loan.  The prerequisites for applying are pretty strict and predetermined so there is very little wiggle room when it comes to qualifying. Personal loans will generally offer lower APR rates for the reason that you have to have a good credit standing to even qualify.  Credit cards are easier to get if you have bad credit, but you will be restricted financially in the form of a monthly credit limit.

Summary

Credit Card People

  • Travelers
  • Frequent Flyers
  • Small time frame for paying back
  • Bad credit rating

Personal Loan People

  • Good credit rating
  • Need for Discretion
  • Freedom to pay back debt over longer timeframe

Hugh Tyzack is Managing Director and founder of GBP Loans Limited, which was formed in 2008. GBP Loans specialises in no fee Guarantor Loans. GBP Loans has been a driving force in trying to eradicate bogus fee charging and is now one of the UK’s biggest providers. You can find more details here. When he is not writing the Blog, Hugh enjoys listening to music and playing the piano. Follow Hugh on Twitter @GBPLoans and also on Google+

Image Source : 1&2


6 Financial Emergencies and How to Deal With Them

Financial emergencies can strike anyone at any time. The best way to protect yourself is to have a sizable savings account, but this isn’t always possible. Here are some smart ways to handle sticky financial situations when you’re short of cash.

Visits to the Emergency Room

 Emergency Room

Image via Flickr by Rosser321

In 2009, the average cost of an emergency room visit was $960. When you have to visit the ER, go to a hospital within your insurance network when possible. If you’re uninsured or still face a large bill after your insurance has paid, call the hospital and ask about financial assistance programs. In many cases, they’ll offer a reduced sum or allow you to use a payment plan.

Job Loss

 Job Loss

Image via Flickr by Stephen Fulljames

Though unemployment has dropped overall in the past year, you never know when you might face a sudden job loss. If you’re without work, begin by filing for unemployment benefits if you’re eligible. Next, contact your lenders and tell them about your situation. You can defer some payments until you’re back on your feet. Reducing your living costs rapidly is your first line of defense while you search for another job.

Car Trouble

Car Toruble

Image via Flickr by Mark Cartwright

It’s estimated that as many as a third of all cars between the ages of three and 10 years will break down sometime over the next 12 months. If this happens to you, you need to find extra money fast. A savings account is your best option. If you don’t have enough in savings, try using a credit card or loan such as Arizona Payday Loans to get you through. Pay off what you’ve borrowed as soon as possible to reduce the overall cost.

Loss of Income from a Second Source

Natural Disasters

Image via Flickr by normanack

If you have a second job or earn income from a hobby such as selling on eBay, you’re in a tough spot when the money dries up. You’re not eligible for unemployment, so you have limited options. When you have a second source of income, it’s wise to save a significant part so you can get by if you lose this income stream. Look for creative ways to replace your second source and cut costs in the mean time.

Natural Disasters

Natural disasters

Image via Flickr by PhotoJunkie!

Natural disasters are something that you rarely see coming. Protect yourself by making sure you have good homeowners or renters insurance. When disaster hits, talk to your insurance provider right away. Look for disaster relief and special assistance programs to help you rebuild in the aftermath.

Household Repairs

Household Repairs

Image via Flickr by Kai Hendry

Ideally, you’ll always have a savings fund set aside for household repairs. If you can’t afford the cost of a new appliance or major repair, you should first consider whether it’s essential. You can live without a dishwasher while you save money for repairs, but you can’t manage without heat in winter. If you must have the repair done, shop around for the best price. Look for specials or coupons. Borrow the money or use a credit card when necessary.

Handling financial emergencies is never easy, but you can lower your losses by using smart tactics. Whenever possible, put extra funds into a savings account for just these kinds of situations.

Sources:

http://www.tradingeconomics.com/united-states/unemployment-rate

Start an Emergency Fund to Prepare for Financial Emergencies

http://www.more.com/reinvention-money/careers/survive-lifes-financial-emergencies?page=3

About the Author

Shaun Chatman is a well published author on many authority sites. He lives in Dunedin, FL, and spends his free time playing with his kids or advising friends on gadgets, travel and finance


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