Category Archives: Personal Finance

Personal Finance

Banks, Debts, Financial, Financial Management, Financial Services, Money, Personal Finance

Debt management company Gregory Pennington welcomes the recent fall in inflation – in particular, the indication that some of the financial pressures on struggling borrowers are starting

Welcoming the recent fall in inflation, debt management company Gregory Pennington highlighted the significance of this drop to people struggling to manage their debts.

In October, the CPI (Consumer Price Index) measure fell from 5.2% to 4.5% – the largest month-on-month fall in 16 years. Having said that, the reading of 5.2% was the highest reading in 16 years, so even a reduction of 0.7% falls far short of returning inflation to a ‘normal’ level.

“Remember the Bank of England’s target for CPI inflation is just 2%,” said a spokesperson for the debt management company. “At 4.5%, today’s rate of inflation still means prices are rising more than twice as fast as the Bank would like – this reduction simply means that the speed with which things are getting more expensive is slowing.

“More to the point, CPI has been over the Bank of England’s 2% target ever since October 2007, so today’s consumers are still dealing with the cumulative impact of a full year of high inflation. And the timing makes that elevated cost of living particularly dangerous: today’s consumers are also dealing with record levels of personal debt, as well as rising unemployment.”

As a result, there are many people finding it hard to manage their debts: trying to stretch a shrinking budget further each month. “For anyone in that position, any decrease in inflation can’t come fast enough. They’ll be relieved to see some expenses – such as petrol – coming down, but many other things are still far higher than they were a year ago. A recent article in The Guardian, for example, reported that a basket of 24 staple items in the UK’s biggest three supermarkets now costs 17.8% more than it did last November.”

Looking forward to next year, it seems the Bank of England is expecting inflation to eventually drop below its 2% target, and perhaps as low as 1%. “This is good news for two reasons,” said the spokesperson for the debt management company. “Not just because it’ll mean prices are (relatively) coming down, but also because it could allow the Bank to cut the base rate even further.

“Clearly, a lower base rate could help many people currently struggling with their finances. People on tracker mortgages will see the most immediate benefit – many of them have already seen their mortgage payments drop by hundreds of pounds compared with July, when the base rate stood at 5.75%.”

Nonetheless, too little inflation can be as dangerous as too much – and we’re now facing the possibility of deflation in 2009. While economists agree that a short stint of deflation would not be a problem, any sustained period of shrinking prices could seriously damage the economy.

Deflation means a decrease in the price of property, shares and goods of all kinds. People therefore wait to buy expensive items, as it only makes sense to wait until the price comes down. Falling demand means companies sell less and are forced to reduce their workforce.

“It’s clear the Bank of England has a delicate balancing act ahead of it: when it comes to normal people managing their debts, deflation could be as big a danger as high inflation.”

Via EPR Network
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Bankruptcy, Business, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, IVA, Loans, Money, Personal Finance

Insolvency Practitioners Freeman Jones Have Commented That Ivas Remain A Very Useful Alternative That Can Avoid Many Of The Negative Consequences Associated With Bankruptcy

Responding to new statistics showing a rise in the number of people in debt applying for bankruptcy, Insolvency Practitioners Freeman Jones have highlighted the importance of addressing debt problems early, especially with a recession looming, and have pointed to the IVA (Individual Voluntary Arrangement) as a useful alternative to bankruptcy that could lessen the blow of insolvency.

The statistics, compiled by the Ministry of Justice, showed a total of 13,653 petitions for bankruptcy in the three months between July and September – 7% more compared with the same time last year, and a 1% increase on the previous quarter.

In the same time, creditors themselves filed 5,499 bankruptcy petitions against borrowers – 2% less than the previous quarter, but 10% more than July-September 2007.

In an earlier report, the Insolvency Service reported a 3.3% rise in individuals taking up IVAs in the third quarter of 2008, although the number had actually fallen by 3.1% compared with the same period last year.

A spokesperson for Freeman Jones commented: “Bankruptcy can be the best way out of debt for some people, but in many cases an IVA is a preferable alternative, as it can avoid a lot of the negative consequences associated with bankruptcy.

“Unlike bankruptcy, an IVA almost always allows borrowers to keep hold of their home – although they will be expected to release some of the equity in their home in the fourth year – and it does not carry the publicity or social stigma that bankruptcy does. It also does not prevent people from running a business or taking other positions, like bankruptcy does.

“There are some people who feel that bankruptcy is a more appropriate way out of insolvency than an IVA,” continued the spokesperson. “That’s mainly because bankruptcy is over more quickly – normally after a year – and it typically results in less of the overall debt being paid off by the borrower.

“However the restrictions placed upon borrowers by bankruptcy can sometimes outweigh the benefits, and although an IVA lasts for longer, it will do less damage to the borrower’s future prospects in the long run.

But the Freeman Jones spokesperson was quick to acknowledge that bankruptcy can sometimes be the better option. “Since an IVA requires regular monthly payments for a number of years, people with a low or unpredictable income may find that bankruptcy better suits their needs,” she said.

“Likewise, if the borrower does not have much in the way of assets, and their circumstances are unlikely to improve, then bankruptcy may be their best choice.

“It can often be difficult for people in debt to decide whether bankruptcy or an IVA is the best option – and as always, we advise anyone facing debt problems to seek expert debt advice.”

Via EPR Network
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Checking & Savings, Financial Management, Financial Services, Financial Solutions, Insurance, Investment, IRA, Money, Personal Finance, Retirement

Individuals Who Are Investing Their 401k & IRA Money In Ventures Outside The Stock Market Can Have A Brighter Retirement And Growing Wealth

The stock market implosion of 2008 has millions of Americans feeling financially helpless. Yet individuals who are investing their 401k & IRA money in ventures outside the stock market are singing a different tune.

One such cheerful investor is Janice Stoddard, who along with her husband, Jack, owns a real estate business in Arkansas. In 2004, Janice learned about “self-directed investing” from a seminar that taught how to invest IRA money into real estate. She returned home excited about the prospect of setting up her own self directed IRA.

The Stoddards established two IRAs, rolling over investments from their traditional IRAs to fund them. They used the IRAs to make small real estate transactions, purchasing and reselling property at a profit with all proceeds staying in the IRA.

In 2006, an opportunity to buy and then immediately re-sell 60 acres of undeveloped land at a profit came up. Concerns over structuring the deal and keeping everything above board led her and her husband to consult with Jeff Nabers, well known as one of the nation’s top experts on self directed investing.

“Jeff helped us establish a Solo 401k that could be used to handle the 60 acre transaction. The Solo 401k was a key component to our funding because we were able to contribute 10 times more to it than we could to an IRA. Meanwhile, our son, who works in oil and gas, alerted us to keeping our eyes open for property with mineral rights for future transactions,” Janice says.

With the proceeds from the 60 acre sale, the Stoddards began looking for their next investment. They found a 57 acre property with 54 acres of undeveloped land and a house that was sitting on three acres. The property, valued at $435,000, was more than the couple had in cash in their Solo 401k, so they began looking at options.

They contacted friends in Dallas and asked if they’d be interested in joining them in the investment. Their goal was to buy it and sub-divide it for resale in five and ten acre parcels. Their friends, both physicians, agreed.

Nabers Group helped the couples form a Limited Liability Company for purposes of purchasing the land. The LLC is owned jointly by the Stoddard’s Solo 401k and their friend’s IRA.

The owner had originally listed the property for $5,250 an acre with only 50% of the mineral rights. At the time no drilling was taking place on the property and no natural gas had been pulled from the ground. The Stoddards negotiated for full mineral rights and bought them with the property for $5,875 per acre.

Over the next few months, natural gas producer Chesapeake Energy put a well on the property, and soon the LLC was receiving large monthly royalty checks for the natural gas on the property. Over 18 months, those checks totaled more than $100,000. When the Stoddards were approached by a buyer who wanted to purchase the mineral rights and not the land for $8700 an acre, they sold the rights, netting another $465,000 while retaining the land, now valued at an estimated $435,000.

“Janice knows real estate and knew how to identify an under-valued property that was a good investment. With her son’s knowledge of oil and gas, her strategy became as much about the mineral rights as the real estate. Mineral rights prices had been skyrocketing and lease values had been increasing in her area, and Janice knew she could resell the land and improvements alone and at least break even while keeping what she was really after – the mineral rights,” Nabers said.

Within six real estate transactions, the LLC’s asset value had gone from $350,000 to more than $950,000 in under two years. The Stoddards have more than quadrupled their initial investment, and they aren’t stopping there. Other property and mineral rights deals are already on the table for purchase with their Solo 401k funds.

Nabers, whose firm regularly structures self directed IRA & Solo 401k investment plans, says the growth in the Stoddards’ investments is exceptional, but not unique for someone who is as diligent in their investing as they are.

“I will admit to being a researcher,” Janice Stoddard says. “When I found out that as a self-employed individual I could set up a retirement plan that would allow me to invest in real estate, which is something I know very well, I was excited about that. The hard part was finding a financial expert who would embrace the concept of self directed investing. Everyone I talked to told me I should buy stocks instead. The Nabers Group has a wealth of experience in this area and Jeff has been very instrumental in giving us a thorough understanding of our options and the opportunities,” she says.

Today Stoddard advises other real estate professionals to do the same thing, and she’s joined the IRA Association of America to ensure that she is aware of regulations and new opportunities available to individual investors.

“I talk to my friends, and they are absolutely despondent over what is happening to money they thought they had for retirement or college. A lot of people have lost a lot of money in recent months. When I tell them I didn’t lose a dime and that I’ve quadrupled the value of my Solo 401k over the last eighteen months, they want to know how,” Stoddard says.

According to Nabers, “My business is growing because there are plenty of people who are not willing to ‘wait and see what happens’ with the stock market. They want control over their finances, and they want to replace their restrictive IRA or 401k with one that offers unlimited possibilities.”

Stoddard says she never hesitates to tell people to take charge of their own retirement money.

“If we had not established our self directed investment accounts we would not have the cash available for investing that we now have. That’s what allows us the ability to act fast with real estate and mineral rights opportunities. It’s a lot different than helplessly watching the market, and it has absolutely changed our future,” she says.

For more information on self-directed investing, visit the IRA Association of America or Jeff Nabers’ blog.

About The Company:
Jeff Nabers is an expert on self directed investing, Solo 401ks, the future of social security, alternative IRA investment options, and other topics that are of interest to individuals at all income levels. His firm, Nabers Group, is located in Denver, Colorado. Mr. Nabers can be reached at 866-253-7746. You may also contact his publicist, Connie Holubar, at 903 880 8217 to arrange for an interview or to request photos or other background materials.

Via EPR Network
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Bankruptcy, Debts, Financial, Financial Management, IVA, Loans, Money, Personal Finance

The latest report from the Insolvency Service shows a rapid rise in the numbers of people being declared insolvent

Commenting on statistics from the Insolvency Service showing a sharp rise in insolvencies, both over the last quarter and over the past year, Debt Advisers Direct have said that it is now more important than ever for people to get their finances in order and tackle any debt problems as soon as possible.

Commenting on new statistics showing an increase in the number of personal insolvencies in the third quarter of 2008, Debt Advisers Direct (www.debtadvisersdirect.co.uk) have said that this is further confirmation of the difficulties faced by many British households due to rising inflation and worsening economic conditions, and have emphasised the importance of good debt advice as the economy faces a recession.

The latest report from the Insolvency Service shows a rapid rise in the numbers of people being declared insolvent. Between July and September there were 27,087 personal insolvencies, an 8.8% increase on the previous quarter. It was also 4.6% higher than the number of insolvencies reported a year earlier.

Despite falling in the second quarter of the year, bankruptcies were up 12.1% over the quarter. IVAs (Individual Voluntary Arrangements), meanwhile, were up 3.3% over the quarter.

A spokesperson for Debt Advisers Direct said: “Higher costs of living and the credit crunch have put a lot of pressure on British households’ finances this year, so we expected to see a rise in personal insolvencies over the course of this year.

“However, the extent of the rise in insolvencies shows the seriousness of the problems we are facing – and highlights the need to tackle debt problems early, before they become unmanageable..”

The Insolvency Service report also showed that despite the quarterly rise, IVAs were down by 3.1% compared with the same period last year – with The Telegraph concluding that it may be becoming more difficult to enter into an IVA.

“There are a few possible reasons why the number of IVAs may be lower than this time last year,” the spokesperson commented. “It may simply be that more people are taking the bankruptcy route, perhaps because they are unaware that an IVA can avoid many of the downsides of bankruptcy.

“IVAs are usually considered a preferable alternative to bankruptcy. People on IVAs do not lose control of their assets, unlike bankruptcy, and they typically carry fewer restrictions.

“The rise in IVAs over the quarter shows that lenders still consider it a valid means of reclaiming some of the money they are owed – and it remains that if you are in significant debt, an IVA can be a very useful way of getting debt-free.”

The Debt Advisers Direct spokesperson was keen to emphasise the importance of tackling debts before they grow unmanageable. “For anyone struggling with debt, there are a number of ways out. With a recession approaching, it’s important that people do not feel powerless, and that they tackle the issue head-on.

“There are a number of debt solutions, such as debt consolidation and debt management plans, that can help people to stop their debts growing before they become unmanageable. We advise anyone with debt problems to seek professional advice at the first sign of trouble.”

Via EPR Network
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Banks, Costs, Credit Cards, Credit Repair, Debts, Financial, Financial Management, Financial Services, Financial Solutions, Loans, Money, Mortgage, Personal Finance

Debt Advisers Direct have warned that the squeeze on incomes could become tighter in the coming months

Debt Advisers Direct have responded to findings that Britons’ disposable incomes have fallen by nearly 30% on average in the past two years, warning that the pressure on incomes could increase as the economic crisis progresses, and have advised consumers to take care of any debts as soon as possible.

Responding to research by Abbey Credit Cards claiming that British citizens have seen their disposable income fall by nearly 30% during the past two years,Debt Advisers Direct have warned that the squeeze on incomes could become tighter in the coming months, and have advised consumers to take care of any financial issues, especially outstanding debts, as soon as possible.

According to the research, the average household now has only 25% – around £382 – of their monthly income left after essential costs such as mortgage payments and energy bills have been paid.

That figure is down from £541 in disposable income available to British households just two years ago – a 29% fall.

The research also claims that one in ten spend 90% of their income on bills and other essential costs, leaving only 10% as disposable income.

On average, British households were spending 7.4% of their total income on repaying debts, not including mortgages, the research claimed.

Meanwhile, an average 24% went towards mortgage or rent payments, 17% on household bills, 16% on food, and 8% on transport costs.

British incomes have been put under pressure on two fronts throughout the economic crisis, with costs of living such as energy bills and food prices rising rapidly, and the credit crunch limiting access to additional funds in the form of loans and mortgages.

The effects have been tangible, with overall retail sales gradually declining over the year, and profits for ‘budget stores’ increasing – a sign that consumers’ perceived priorities are shifting as their disposable incomes shrink.

An expert from Debt Advisers Direct said: “Many people consider disposable income a luxury that can be spent on ‘unnecessary’ items, but it’s important to remember that disposable income is also a very important buffer against unexpected rises in outgoings.

“For example, if someone depends on their car to get to work, and they have to pay for a £500 repair with only £200 disposable income, that person could be forced into debt in order to make ends meet. That’s why it’s important for people to minimise their outgoings, and make savings where possible.

“The overall situation has become worse over the past year because costs of living, especially energy prices have risen so quickly. Food and other retail products are now falling in price, but energy prices have shown no sign of doing the same – and this continues to push more people towards debt.”

The Debt Advisers Direct spokesperson added that there are a number of debt solutions that can help to minimise outgoings when finances are limited.

“For people with multiple debts, a debt consolidation loan can be spread out across a longer period of time than the original debts, meaning monthly payments are lower,” she said. “Interest rates can also be reduced, especially when consolidating high-APR debts such as credit cards. However if the debt is repaid over a longer period, the additional interest from this can counteract some of the savings made.

“For debts that are becoming unmanageable, a debt management can help. It involves arranging to repay creditors in smaller amounts, based on how much the person in debt can afford, over a longer period of time.

“As always, we advise anyone looking to tackle their debts to seek professional debt advice beforehand.”

Via EPR Network
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Banks, Credit Cards, Debts, Financial, Financial Services, Financial Solutions, Loans, Money, Personal Finance

Following the first rise in consumer confidence since December 2007, debt management company Gregory Pennington have said that while this may bode well for the health of the economy in some respects, it is by no means a sure sign of economic recovery, and consumers should not be complacent about their finances in the coming months

Following the announcement from Nationwide Building Society that consumer confidence has improved for the first time since December 2007, debt management company Gregory Pennington commented that this is an encouraging sign that the Government’s recent actions aimed towards economic recovery may be working, but warned consumers that difficult times may still lie ahead – and those facing financial worries, particularly debt problems, should tackle those issues as soon as possible.

Nationwide’s overall Consumer Confidence Index (CCI) rose 8% in the month, bringing the index up from 51 in September to 55 in October. Most significantly, this is the first rise since December last year – a sign that some form of economic recovery could be on the horizon, possibly as a result of the recent Government bank bailout scheme.

The number of people who thought the economy would be performing better in six months time almost doubled from 14% in September to 27% in October.

However, Nationwide’s figures showed slightly less optimistic opinions amongst consumers regarding the current state of the economy: three quarters (75%) of those questioned believed the current economic situation is bad, compared with two thirds (66%) in September.

A spokesperson for debt management company Gregory Pennington said that increased consumer confidence for the future is encouraging, but added that consumer confidence should not be confused with expert’s predictions.

“The Consumer Confidence Index is to do with how people feel,” she said. “It’s likely that consumer confidence has improved on the back of the recent Government bank bailout scheme, as well as cuts in the base rate. But that doesn’t necessarily mean we are much more likely to avoid any of the issues highlighted by economists in recent months.

“On the one hand, consumer confidence is very important for the economy and could be pivotal in terms of how soon and how quickly the economy recovers. When consumer confidence is high, people are more willing to spend their money and less inclined to save, therefore pumping more cash into the economy and maintaining a healthy cycle. Conversely, when consumer confidence is low, less money flows through the economy – and that puts the economy at risk of recession.

“The Consumer Confidence Index is a reasonable indicator of how the economy could fare in the coming months, as long as attitudes remain the same. But it doesn’t tackle the underlying issues that continue to threaten the economy – issues which could cause consumer confidence to fall back down.”

The spokesperson added that even though consumer confidence on the whole is recovering, there are many people facing financial hardship due to fast-rising inflation over the past year, many of whom find themselves struggling with debt.

“We have been through an unusual situation for the economy over the past year, in which affordable living costs suddenly became unaffordable for many households,” she said. “The sharp rises in food, energy and petrol prices have prompted many people to cut back, but many people who were already stretched financially may have been forced into debt in order to make ends meet.

“We advise anyone who finds themselves struggling with debt to seek professional debt advice. The right form of debt management could help to bring down monthly outgoings and really relieve the pressure on those hardest-pressed by the financial crisis.”

Via EPR Network
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Credit Cards, Debit Cards, Financial, Financial Services, Money, Personal Finance

Pre-paid cards are set to take a major slice of holidaymakers annual spending on plastic this year as tourists bid to keep summer spending under control, Virgin Money believes

Over £20 billion* spent on plastic overseas by UK travellers each year, Virgin Money says. Worries about the soaring cost of living and rising debts will boost the popularity of the cards, which enable customers to spend overseas and withdraw money but not to run up debts, Virgin Money says.

Currently up to 40 pre-pay cards are available on the market with more providers expected to launch over the coming months.

Virgin Money analysis** shows average one-off application fees for the cards are £7.08 with some firms charging as much as £19.95. However customers also need to be aware of monthly fees.

Around 40% of providers charge a monthly fee to users ranging from £1 to £5.95 while customers also need to take into account fees on spending and overseas use when budgeting for holiday spending. Typically debit and credit cards charge handling and commission fees for overseas usage which can add up to as much as £5.95 for a £100 withdrawal.

Virgin, which was among the first to launch into the market with its Pre-Paid MasterCard in July last year, has already seen strong interest from customers and expects the market to continue to grow.

Virgin Money spokesman Grant Bather said: “Everyone needs to keep their spending under control as the credit crunch and soaring inflation take a big bite out of household budgets.

“Pre-paid cards remove the temptation to run up debt while you’re on holiday as you can only spend the amount that is loaded on your card. They’re a good discipline to get into to avoid the risk of the sun going to your head and burning up your bank balance on holiday.

“And they can be more secure to carry than cash as if you lose the card you can get a replacement sent out. Plus if you really do lose control of your finances relatives or friends can load the card up with emergency cash.”

The Virgin Prepaid MasterCard charges a £9.95 application fee but unlike other cards does not charge a monthly fee. Customers can load it up for free by debit card, at Post Offices or through a bank transfer. There’s a 2.95% charge each time you use it in the UK rising to 3.5% when you use it overseas for transactions or to withdraw cash.

Customers also qualify for a range of discounts including 10% off at zavvi, first month free with Virgin Media, 10% off Virgin Wines (for over 18s), a free month’s membership at Virgin Active gyms, 20% off at Virgin Experiences and 10% off Virgin Car, Home, Pet and Annual Travel Insurance.

To apply online go to uk.virginmoney.com/virgin/prepaid-card

*APACS
**Virgin Money research

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Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Loans, Money, Personal Finance

Gregory Pennington reminded Consumers That Tackling Their Debt Problems Is More Important Than Ever In An Economic Downturn

Responding to recent debt-related comments from Nick Clegg, Leader of the Liberal Democrats, debt management company Gregory Pennington reminded consumers that tackling their debt problems is more important than ever in an economic downturn.

New analysis, states the Liberal Democrats’ website, reveals that personal debt has risen by a total of one trillion pounds in the past eleven years – a startling ten million pounds for every hour the Labour government has been in power. Repayments to that collective personal debt stand at almost £95 billion per year, or £3,000 per second.

“Much of that debt, of course, is in the form of mortgage debt,” said a spokesperson for the debt management company. “According to the latest figures from the Bank of England (Lending to individuals: September 2008), individuals now owe a total of around £1,460 billion – and a full £1,220 billion of that total is secured against dwellings.”

“Mortgage debt is still a serious issue, with many homeowners having over-extended themselves in order to get a foot on the housing ladder. Even so, taking on a debt to acquire an asset is fundamentally different from borrowing in order to finance a lifestyle, or to pay for food, gas or petrol, as many people have grown used to doing in recent years.

“After all, the vast majority of non-homeowners still need to make monthly payments, in the form of rent. In other words, a mortgage debt needn’t actually add to an individual’s monthly financial burden – in fact, their monthly mortgage payments may well cost less than the rent payments they would need to make to live in a comparable property.

“Even so, Mr Clegg raises some valid points. Britain’s level of personal debt is, as he puts it, ‘unrivalled anywhere in the world outside of the US’, and this can be particularly dangerous in the context of a global economic downturn. Clearly, people with higher levels of personal debt are more at risk of running into severe financial problems more or less as soon as their income drops. People with little or no debt are, in general, much better placed to cope with any financial problems they may encounter as a result of the global downturn.

“As a debt management company, we specialise in debt management plans that help people bring their unsecured debts under control. But debt management is by no means the only way of coping with (and reducing) high levels of unsecured debt. People with debt problems may find they have a range of debt solutions to choose from, and should talk to a professional adviser as soon as possible – the sooner they do this, the more likely they are to get through any financial problems that may lie ahead.

“In the longer term,” the spokesperson for the debt management company concluded, “we wholeheartedly support Mr Clegg’s call for financial literacy to play a much bigger part in education. As he says, ‘maths for life is more important than trigonometry for most people’ – financial education is clearly a key part of helping future generations avoid the kind of debt problems that so many of today’s adults are facing.”

Via EPR Network
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Anti-Money Laundering, Banks, Checking & Savings, Credit Cards, Financial, Financial Management, Financial Services, Financial Software, Financial Solutions, Mobile banking, Money, Online Banking, Personal Finance

Barclays release new video highlighting the risks of online fraud that their customers may face when using the internet

Barclays new video, which is presented by television reporter Spencer Kelly, outlines the key risks such as phishing and malicious software and provides advice on what can be done to avoid these threats as well as the things Barclays does to protect customers.

Barclays is a leader in online banking security initiatives having launched PINsentry in 2007. PINsentry uses a handheld card reader and chip and PIN technology to verify customers’ identities for online banking. Without the need for passwords or memorable words, PINsentry has introduced a new layer of security to online banking, with users being issued with a unique eight digit code, helping to fight fraudsters who hack into people’s computers or utilise “phishing” emails to steal login details. Over 1.5 million customers are now using PINsentry and it was recently named the Best Security Initiative at the Nominet Best Practice Challenge 2008 awards.

In June 2008 Barclays became the only bank to offer all of its customers a full freeonline security software package. The package, from award winning internet security provider Kaspersky, includes anti-virus software as well as a spam filter, parental controls, spyware, adware and firewalls and is available to all customers who are registered with Barclays online banking. As a result of these initiatives and continuing work behind the scenes, Barclays has seen a dramatic 91 per cent drop in the money lost to fraudsters from 2006 to 2007 and is the only UK bank to have seen a reduction in the number of phishing attacks.

Barclays fight against online fraud continues with a new ‘vidcast’ advising people on the best methods of internet security. The five minute video is available to watch at www.barclays.co.uk/video where viewers are also invited to post their comments including suggestions for subjects of future videos.

For more details on PINsentry, free Kaspersky internet security software and other online security information please go to www.barclays.co.uk/security.

About Barclays

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs 143,000 people. Barclays moves, lends, invests and protects money for over 38 million customers and clients worldwide.

For further information about Barclays, please visit our website www.barclays.com.

Video on www.youtube.com/barclaysonline

Via EPR Network

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Banks, Financial, Financial Services, Financial Solutions, Interest Rate, Loans, Money, Mortgage, Personal Finance

Think Money have welcomed the Bank of England’s shock base rate cut to 3%, commenting that the mortgage market could benefit as a result

Following the Bank of England’s shock base rate cut to 3%, financial solutions company Think Money have welcomed the news, commenting that firm action is more likely to encourage banks to consider cutting their interest rates accordingly. However, they added, there are still some factors that may prevent lenders from passing on the full 1.5% cut to their mortgages and loans.

The base rate cut, from 4.5% to 3%, is the biggest cut since the Bank of England lowered the rate by 2% in 1981. The base rate now stands at its lowest point since 1955.

Many economists had predicted an aggressive cut in base rates, but the extent of the cut was still unexpected. Most predictions in the run-up to the Bank of England’s announcement pointed towards a 0.75% or 1% base rate cut – and only a few days previously, 0.5% seemed a more realistic figure.

A spokesperson for financial solutions company Think Money said: “It would seem that the Bank of England are acting based on Mervyn King’s recent statements that the recession would be long and drawn-out, and rather than take the base rate down in small increments, they have ‘bitten the bullet’ and taken it down further than most people expected.

“Potentially, it’s very good news for people and businesses looking for loans, but not such good news for savers.”

However, the spokesperson stressed that as with previous base rate cuts, there is no guarantee that lenders will pass the full cut onto their mortgages and loans – although the extent of the cut could at least increase the impact on lenders’ behaviour.

“There will still be a lot of uncertainty with regards to what will happen in the economy in the future, as well as some apprehension amongst banks as to how much they might lose from things like defaults on mortgages as the recession takes hold,” she said.

“The base rate cut only affects how cheaply lenders can borrow funds from the Bank of England. It does not directly affect the LIBOR rate, which is the measure of how expensive inter-bank lending is. Since lenders rely heavily on borrowing from each other to fund their loans and mortgages, they may well be slow to bring their rates down.

“That said, the Bank of England will have no doubt had this in mind when deciding on their base rate cut – and it may well be that such a large cut is sufficient to encourage some lenders to bring their rates down to more competitive levels.”

However, a number of banks appeared to take defensive action even before the 3% base rate had been announced, with several lenders removing tracker mortgages from their product ranges on Wednesday and Thursday morning, while others upped their interest rate margins on tracker mortgages.

“This may just be a temporary measure by lenders in order to avoid any risks in the short term,” the Think Money spokesperson said. “A number lenders have said they will be taking some time to think about their next step, so it’s possible that we will still see some significant interest rate cuts in the next week or two.”

The spokesperson was also keen to emphasise the importance of good mortgage advice. “With so much uncertainty surrounding what will happen with mortgage rates in the next few months, it often pays to speak to a mortgage adviser who understands the market. They should be able to point you towards the best mortgage deals for your circumstances, which could save you a lot of money in the long run.”

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Financial, Financial Solutions, Money, Personal Finance

The 3 Secret Pillars of Wealth

If you’ve watched the stock market over the last year you’ve probably wondered how you’ll ever find a secure investment that also yields a strong return. The answer may be in the bedrock principals that drive all successful investments.

James Burns, author of the new book The 3 Secret Pillars of Wealth: How to Crack Your Wealth Code Using the Tools of the Self-made Billionaires, believes that a return to sane, long-term investing can help build a strong financial future for anyone.

“Too many people have gotten caught up in complex, flash-in-the-pan investment schemes that have made the stock market a volatile and unfriendly place for the average investor,” says Burns. “It is absolutely possible to build a nice portfolio through other means.”

Burns says he believes that few people understand the market, which means that when the market collapses and affects people’s retirement accounts they are confused and angry.

“It is vital that people use tried and true methods for understanding and controlling their money,” says Burns. “Budget every month, only borrow money when you’ll use it to make more, and look for opportunities to buy and hold investments you understand.”

In The 3 Secret Pillars of Wealth, Burns list some of these non-market investments, including:
• Investment-grade life insurance
• The overabundance of cheap housing—as long as you are prepared to hold it
• An established business where partners help spread the risk in an LLC
• Commercial real estate, if you are comfortable with the market

“If you examine your potential investments carefully and understand that a long-term approach is best, you can avoid the stock market,” says Burns. “Just be aware that the market often affects other financial areas, and be prepared to weather a few storms.”

An attorney and a former member of the United States Marine Corps Force Recon, James Burns has two degrees in law and one in taxation and international tax. He has over seventeen years of combined financial, real estate and legal experience.

For more information, contact the author directly at Jambur64@cox.net.

White Diamond Press and author James Burns chose Arbor Books, Inc. (www.ArborBooks.com) to design and promote The 3 Secret Pillars of Wealth: How to Crack Your Wealth Code Using the Tools of the Self-made Billionaires. Arbor Books is an internationally renowned, full-service book design, ghostwriting and marketing firm.

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Loans Market Could Still See A Recovery Over The Next Few Months If The Bank Bailout Scheme Is Implemented Successfully

Following a week that saw perhaps the strongest signs yet that the economy is about to enter a recession, coupled with warnings from Bank of England Governor Mervyn King and Prime Minister Gordon Brown that a recession is very likely, financial solutions company Think Money have said that the loans market could still see signs of recovery in the coming months, so long as the Government’s bank bailout scheme is implemented successfully.

Recession fears hit a new high as figures from the National Office for Statistics showed the first drop in economic output in 16 years between July and September this year. Output fell by 0.5%, exceeding economists’ predictions.

If the British economy records another fall in output in the fourth quarter of 2008, it will be officially considered a recession – although many experts, such as the Ernst & Young ITEM Club, have expressed the opinion that we are already in a recession.

And at a meeting of business leaders at the Leeds Chamber of Commerce, Bank of England Governor Mervyn King said in a speech: “it now seems likely that the economy is entering a recession.”

Regarding the market for loans, King commented: “We now face a long, slow haul to restore lending to the real economy, and hence growth of our economy, to more normal conditions.”

But a spokesperson for Think Money said that it is not the end of the road for the loans market. “It’s logical to assume that it may become more difficult on the whole to obtain loans, mortgages and other forms of credit – but that doesn’t mean it will be impossible to obtain loans for the duration of the recession.

“The Government’s bank bailout scheme is aimed at stimulating the market for personal loans as well as business loans, and the cash injections should give lenders increased confidence in their ability to offer loan products. The falling LIBOR rate is a good indicator that, in the short term at least, this has been working.

“It’s important to remember that financial institutions depend on interest from loans as a source of income, so lenders will have to remain as competitive as they can be in that respect.”

The Think Money spokesperson added that both secured and unsecured loans should be available in some capacity. “Lenders will feel more confident offering secured loans, as they are backed up by assets which act as a potential ‘guarantee’ to the lender,” she said. “In this respect, lender confidence isn’t so much as an issue as the lack of liquidity, which should hopefully improve with the bailout scheme, as well as any future base rate cuts.

“Unsecured loans may prove a little more difficult for consumers to obtain than secured loans, as they are often perceived as ‘higher risk’ by lenders, but it will still be very much possible – it may just take longer to find the right deal.

And the spokesperson was keen to emphasise the importance of loans advice in times of economic difficulty. “Speaking to a professional loans adviser can often make the difference when it comes to finding the best loan deals,” she commented.

“A loans adviser will talk through your financial situation in confidence, and will advise you on what you can expect in terms of the type of loan, interest rates, and the amount you can borrow. Once they have done that, they will be able to search the market for you, saving you valuable time and effort, and hopefully meaning you will end up with a loan that suits your needs.”

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Debt Management Company Gregory Pennington Have Said That Now Is A More Important Time Than Ever For Consumers To Get Their Finances In Order And Tackle Any Existing Debt Problems

Following Bank of England Governor Mervyn King’s announcement that the British economy is entering a recession, debt management company Gregory Pennington have warned that financial hardship is likely to be widespread in the coming months, adding that the public should aim to get their finances in order and tackle any debts as a matter of priority.

Speaking at a business conference on Tuesday, Mervyn King told business leaders that the economy faces a “sharp and prolonged slowdown”, perpetuated by smaller take home salaries, soaring living costs and limited access to consumer credit.

“We now face a long, slow haul to restore lending to the real economy, and hence growth of our economy, to more normal conditions,” he also said.

On a more positive note, King said that some of the factors causing inflation had “shifted decisively”, putting less pressure on the Bank of England to actively control inflation and instead giving them time to address other factors, particularly the cost of consumer lending.

And addressing those concerned about many lenders’ reluctance to pass on the Bank of England’s recent base rate cut, King offered his assurance that the cuts would eventually have an effect, but said: “It will take time before the [bank bailout] leads to a resumption of normal levels of lending.”

A spokesperson for Gregory Pennington warned of the dangers that consumers face as a recession approaches. “One of the biggest dangers is unemployment. Since there will be less money flowing through the economy, businesses will suffer, and many will be forced to make job cuts as a result – which restarts the same cycle.

“We may also see the availability of credit take a further hit, as lenders will be wary that the borrowers may be at a higher risk of losing their jobs than usual. However, the Bank of England are doing their best to ensure that cash flow within banks improves, so it remains to be seen how lenders will react to that as things progress.

“What we can be sure of is that it’s essential for the public to address any financial problems they may have, particularly when it comes to debt. Debt is a burden at any time, but carrying debts during such an uncertain time for the economy can be very worrying.

“If borrowers miss payments, the creditors may pursue the whole debts, which can lead to court action and even bankruptcy if they are unable to comply.”

The Gregory Pennington spokesperson said that there a number of debt solutions that could help people repay their debts and limit the pressure on their finances as the economy enters a recession.

“For people with multiple debts, a debt consolidation loan can help,” she said. “Debt consolidation involves taking out a new loan to cover your existing debts, meaning you only have one creditor to repay.

“Payments can often be reduced by spreading them over a longer period, although you can pay more interest in the long run. Interest rates can also potentially be reduced, especially if you are consolidating high-APR debts such as credit cards – but be aware that if you have extended your repayment period, the additional interest incurred can reduce the benefit of a lower interest rate.

“For more unmanageable debts, a debt management plan may be your better option. If you do this through an expert debt adviser, they will assess how much you can realistically afford to repay each month. After that, they will negotiate with your creditors for lower monthly payments and possibly a freeze in interest or other charges.

“For more significant debts of £15,000 or more, an IVA (Individual Voluntary Arrangement) might be more appropriate. This involves making monthly payments over a period of five years, based on how much you can afford. Once that five-year period is over, your remaining debts will be considered settled.

“However be aware that an IVA requires approval from creditors responsible for at least 75% of your debts, and you may be required to release some of the equity tied up in your home in the fourth year of your IVA.

“Before you make any decisions, it’s important to seek independent debt help. A debt adviser will talk you through your situation and will be able to establish which debt solution is right for you.”

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Think Money Have Said That The Recent Drops In The LIBOR Could Mark The Beginning Of A Recovery In The Mortgage Market

Responding to the news that LIBOR fell on Wednesday following the European Central Bank (ECB) and the Swiss National Bank’s $254 billion (£145.7 billion) injection into the wholesale funding markets, financial solutions company Think Money (http://www.thinkmoney.com/) commented that this could mark the start of a recovery in the mortgages and loans market, so long as the conditions remain in place for lenders to continue to do business.

Despite last week’s half-point base rate drop, which was aimed in part at encouraging lenders to offer lower interest rates on their mortgages and other credit products, three-month sterling LIBOR – the rate most banks base their mortgage rates on – has been slow to respond.

LIBOR reflects the willingness of financial institutions to lend money to each other – and therefore the amount of cash flow in the industry. As such, it affects the levels of loans, mortgages and other forms of credit they are willing to offer to consumers. In short, the higher the LIBOR is, the more expensive it is to obtain the funds necessary for lending.

But on Wednesday, LIBOR fell from 6.249% to 6.21%, following around four weeks of continuous rises – not a huge drop, but one that could indicate that banks may be becoming more inclined to lend to each other, following the first cash injections from the Government’s bailout scheme.

A spokesperson for Think Money said: “This is a small but encouraging sign that the mortgage market may be on its way to improved levels of lending. What’s more, it’s evidence that the first stage of the Government’s bailout scheme may be working, which is good news for the economy in general.

“The main obstacle to mortgage lending over the past year has been lenders’ unwillingness to take risks. That’s the main factor behind the short supply of mortgages on the market, and the reason banks weren’t lending to each other, hence the high LIBOR.

“The aim of the bank bailout is to artificially increase cash flow within the financial markets, which should then give lenders an incentive to start doing more business with each other and with consumers – and it would appear that it has worked, for the time being at least.

“What we will now be looking out for is whether the LIBOR will continue to fall, and by how much. If it can drop to a figure somewhere near the 4.5% base rate, we may begin to see healthy levels of mortgage lending taking place once again. But the continued success of the banking bailout scheme will be central to ensuring this can occur.”

The spokesperson added that although market conditions are currently difficult, there are still plenty of mortgage deals available. “We haven’t seen a complete freeze in mortgage lending – just a tightening in lending criteria across the market. Lenders still need to be competitive to do business, so the deals are still very much there – it may just take longer to find the right deal.

“Despite the uncertainty in the housing market, now could be a good time for first-time buyers, since house prices are relatively low, and therefore mortgages are relatively cheap. If house prices do begin to rise again soon, it could prove to be a very good move financially.”

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Financial Solutions Provider Think Money Has Welcomed The Bank Of England’s Recent Move To Enhance Liquidity By Accepting A Broader Range Of Loans And Other Assets As Collateral For Loans To Banks

Responding to the Bank of England’s recent changes to its policy regarding collateral, mortgage provider Think Money welcomes the move and looks forward to the increased levels of liquidity it should provide.

On 3rd October 2008, the Bank of England announced that it would expand the range of assets it deems acceptable collateral for the loans it grants to financial institutions. The range, according to the Bank of England website, now includes ‘AAA-rated asset-backed securities of some corporate and consumer loans; and approved highly-rated, asset-backed commercial paper programmes, where the underlying assets would be eligible if securitised’.

This action, the website continues, ‘is addressed to the ongoing strains in term funding markets, and adds highly-rated corporate securitisations to the residential mortgage securities that are already eligible’.

“At Think Money, we welcome this change,” said a spokesperson for the financial solutions provider. “While some may feel alarmed that the Bank of England felt such a move necessary, it’s nonetheless reassuring to note that the institution is taking such action before the financial situation deteriorates further.

The current lack of liquidity is a cause of great concern for everyone in the UK, from individuals to banks, mortgage providers and other institutions. “Without a constant, reliable flow of credit, it can be difficult – if not impossible – to carry out their plans, whether it’s a case of a company pursuing a business opportunity or an individual securing a mortgage, remortgage or loan.

“So we’re encouraged to see the Bank taking decisive steps such as this. Banks and other financial institutions own massive amounts of debt these days, from mortgage debt to overdraft debt, so it’s both limiting and frustrating when they can’t use them as collateral, as it’s one of the cornerstones of today’s lending activities.”

According to the Market Notice published on October 3rd, The Bank of England ‘will continue to hold extended collateral three-month long-term repo open market operations (OMOs) weekly up to and including the scheduled long-term repo operation on 18 November’, which suggests that it sees no immediate end to today’s unusual market conditions.

Furthermore, it states that ‘The size of the funds offered at the Bank’s extended collateral long-term repo operation on Tuesday 7 October will be £40 billion’.

Yet despite the size of the operation, the spokesperson for the financial solutions company stressed, it’s important to note that this is no act of desperation. “In the light of the ‘bailout’ recently approved in the USA, it’s important to realise that this move by no means invites lenders to put forward‘toxic’ mortgage debts as collateral. The Bank of England may have broadened the range of assets it sees as acceptable, but it is not prepared to accept any form of collateral which isn’t of sufficiently high quality.”

Furthermore, the Bank of England is exercising a suitable degree of caution: “The Bank may be accepting a greater variety of assets as collateral,” the Think Money spokesperson concluded, “but it’s also valuing them correspondingly and offering, to quote the Financial Times, ‘as little as 60p in the pound for some foreign currency mortgage-backed securities’.”

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People In Debt Should Review Their Financial Situation As Soon As Possible And If Necessary Seek Professional Debt Advice

The deteriorating state of the economy should lead borrowers to review their finances as a matter of urgency, say debt experts Debt Advisers Direct, following the Autumn forecast from the Ernst & Young ITEM Club.

“Released on 20th October, the Ernst & Young ITEM Club Autumn forecast ‘sees an economy that has deteriorated dramatically in the last quarter and is now in recession’,” said a spokesperson for Debt Advisers Direct. “The good news, however, is that the recession is expected to be both short and shallow, with GDP rising – even if only by 1% – in 2010.”

“Even so, the impact of today’s economic downturn will be profound,” the spokesperson continued. “By definition, even a ‘shallow’ recession involves a shrinking of the nation’s economy, with the inevitable consequences: lower spending, higher unemployment, greater uncertainty about the future, etc.

“On an individual level, the threat of a reduced monthly income is likely to lead many to review their financial situation. This isn’t to say that economic gloom is a good thing, but everyone needs to stop and take stock of their finances from time to time, and reports such as this can provide a much-needed incentive to do so.

“It’s important for everyone – even people with no debts and significant savings – but for the millions of UK consumers in debt, it’s particularly vital. Many people in the UK have grown used to spending more and more of their monthly budget on debt repayments. In many cases, those repayments take up almost their entire disposable income, so if anything happens to their income, they could almost immediately face a whole range of consequences, from legal action to bailiffs and County Court Judgments (CCJs) – to say nothing of the damage to their credit rating.

“The important thing, of course, is to take action before it’s too late. Seeking professional debt advice is normally the best way to start – any borrower could have a wide range of debt solutions available to them, so it’s vital they talk to a professional organisation which understands every option and can provide impartial debt advice, tailored to their individual circumstances.”

An Individual Voluntary Arrangement (IVA) or debt consolidation loan, for example, could help someone cope with a reduced income – yet neither debt solution would make sense for someone who’s fairly sure they might lose their income (or a significant part of it) in the near future.

“A borrower who is working, but whose job seems to be at risk, may be better off with a flexible debt solution such as a debt management plan: if their income drops, they can ask a professional debt management company to talk to their creditors on their behalf, renegotiating their debt repayments as and when it becomes necessary.”

Different borrowers, in other words, will need to adopt different strategies to deal with their debts. “There’s no ‘silver bullet’ for debt. Debt management plans, debt consolidation loans, debt consolidation remortgages, IVAs, even bankruptcy – each has its place, but the debt solution that’s right for one person can be completely inappropriate for another. The key thing is to take the time to get the right debt advice before making any commitments.”

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I Just Watched The Webcast From The FTC On “Operation Clean Sweep” And I Cant Help But Wonder Who Is Really Behind This?

For all of you who have not seen this I recommend checking it out and then reading this release. It can be found at the FTC’s website at:

http://htc-01.media.globix.net/COMP008760MOD1/ftc_web/FTCindex.html#Oct_23press_08

Let me start by saying that I agree that a company that lies to a consumer, or does not perform services at all, should be held responsible and liable for their actions. However to attack an entire industry based on a few “Bad Apples” is wrong and illegal see the below legal definition of libel.

An untruthful statement about a person, published in writing or through broadcast media, that injures the person’s reputation or standing in the community. Because libel is a tort (a civil wrong), the injured person can bring a lawsuit against the person who made the false statement. Libel is a form of defamation, as is slander (an untruthful statement that is spoken, but not published in writing or broadcast through the media).

Now tell me if it’s just me, or is the FTC is on a “Witch Hunt”?

Before we answer that question lets take a few points from the FTC’s comments and how they compare to the legal facts.

1) Lydia Parnes repeatedly mentions that “No company can legally remove accurate and timely information from a credit report”

While Lydia Parnes is correct She fails to provide a complete explanation that according to the FCRA a consumer or company hired by a consumer may have unverifiable information removed. Please read the below taken from Section 611 5 A of the FCRA

(5) Treatment of Inaccurate or Unverifiable Information
(A) In general. If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall–(i) promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the investigation;

2) Lydia Parnes repeatedly mentions that “Negative information can be reported for up to seven years, and some Bankruptcies can be reported for up to ten years.”

While Lydia Parnes is again correct these items “can” be reported for those periods of time. However no where in the FCRA does it stipulate that they “must” be reported for those periods of time. As a matter of fact no where in the FCRA does it state that any information must be reported ever. In the United States of America the credit reporting system is voluntary.

3) Lydia Parnes now presents a Mr. Daniel Duke from Texas. Daniel proceeds to tell his tale of woe, It is filled with inconsistencies and libel. Daniel Duke first states that he called a Credit Repair company and they offered to provide service for the amount of $1200. Daniel now says so I sent them $900. Does anyone else see the problem here? Daniel is upset some time later when the company will not release the work because $300 is still due. Daniel also says in his comments that Mortgage Brokers and Banks are no help but he closes his statement with “So even your Mortgage Broker will help you allot” Daniel Duke also commits libel by making a statement that “Every one of those are probably crooks” Referring to the 10,000 Credit Repair companies that his bank told him existed in the State of Texas.

While we sympathize with any consumer that has been victimized, We feel that Lydia Parnes and the FTC purposely allowed this consumer to publicly stone an entire industry based on his opinions. What Daniel Duke, Lydia Parnes, and the FTC failed to discuss were the facts surrounding Daniel Duke’s complaint. Did the company provide Mr. Duke with a contract? What services did the company offer to provide Mr. Duke? And most importantly, what were Mr. Dukes responsibilities under the contract? We already know that according to Mr. Duke he only sent in a partial payment to the company. Did Mr. Duke not do something else on his part to cause the failure of the company’s credit repair efforts? (We are not taking sides however if you are going to make allegations publicly you should provide facts)

4) Lydia Parnes now offers to take questions, A woman from Oklahoma calls in that is in the Credit Repair business, asking how she can separate her company from the “Bad Companies”, and if there is any resource available that the FTC can recommend, for consumers to find reputable Credit Repair Companies. Lydia Parnes says “The FTC does not endorse any Credit Repair company or any other Type of Company for that matter” and immediately after saying that Lydia Parnes endorses Not for Profit Credit Counseling companies. And then Lydia Parnes allows Mr. Daniel Duke an angry consumer with what appears to be an agenda in my opinion jump in to say: “Most of us in the real world have real jobs that we do for a living. And that’s why I think that Non profitable corporations are the only way to go. They are not doing it because that’s their source of livelihood. How up front and honest and how fair to the consumers can you be when that’s your money to make money off them. So I’m playing the Devil’s advocate if your charging somebody to help them you’re probably more interested in yourself than you are helping them.”

In my opinion Lydia Parnes and the FTC allowed Mr. Daniel Duke to not only commit libel against every legitimate credit repair company but every other legitimate business in the United States of America that works for a profit.

5) Lydia Parnes continues to take questions from callers but continues to avoid any topic that may present a positive image of Credit Repair companies.

In closing may I suggest to Lydia Parnes, the FTC, and Mr. Daniel Duke who clearly stated that negative items in his report were not accurate, A new plan “Operation Accurate Credit Report” because after all the real culprit in this whole mess plaguing or Nation are these so called “Big Three” Credit Reporting Agencies. It’s no big secret that it is the Credit Reporting Agency that is responsible for maintaining accurate and verifiable reports for each consumer. See section 607 (b) of the FCRA:

(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

Now according to the US PIRG (US Public Interest Research Group) 79% of all Credit Reports contain errors see it here:

http://static.uspirg.org/usp.asp?id2=13649&id3=USPIRG

The fact is that every day legitimate credit repair companies have already launched “Operation Accurate Credit Report” by performing the valuable service to consumers that even though can do it for themselves do not possess the knowledge to be successful. These companies help the client Dispute Inaccurate, outdated, and unverifiable information. The amount of red tape these consumers must go through to get this done often causes them to give up. A legitimate credit repair company understands the process and knows what steps are required. In addition to Dispute services legitimate companies provide credit education to consumers, and advice on adding positive credit to the consumers file.

For more information on Credit Repair visit us at http://www.RevolutionCreditSolutions.com

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Think Money Have Said That Potential Further Base Rate Cuts Suggested By Some Economists Could Greatly Benefit The Loans Market

Financial solutions company Think Money have said that borrowers and homeowners stand to gain from the Bank of England’s potential measures to tackle the economic crisis, but warned that tighter lending criteria may remain in place to avoid any repeat of the past year’s trouble in the loan markets.

According to The Telegraph, two leading economists have said that the Bank of England may need to cut base rates to as little as 2% or even 1% in order to tackle the forthcoming economic crisis. That would make the base rate its lowest since the Bank of England was established in 1694.

Roger Bootle, managing director of Capital Economics and a former Treasury adviser, said: “It is critical to get rates lower – if the medicine is not working you have to use a stronger dose,” he said. “[The Bank] needs to get rates down far and fast.

“They need to be pretty bold. The lowest rates have ever gone is two per cent. They could easily go lower than that now – why not? After all, the Federal Reserve dropped [US] rates to one per cent.”

Meanwhile, Alan Clarke of BNP Paribas said that he expects the base rate to reach 2.5%, although it might be even lower. “One per cent or lower is not impossible,” he added. “The important trigger is the labour market: unemployment over, say, eight per cent would be a disaster.”

Although a base rate cut would theoretically help to lower interest rates on loans, a spokesperson for Think Money said that the situation is not always that clear-cut.

“Any drop in the base rate potentially makes loans cheaper, because it reduces the amount of interest the lenders have to pay the Bank of England for borrowing the necessary funds,” she said. “Therefore, lenders can offer loans to consumers at a lower rate while still making a similar profit.

“However, the main obstacle to that is LIBOR (London Inter-Bank Offered Rate), a measure of the rate at which banks are lending to each other. Ordinarily this shouldn’t be too different to the base rate, but currently it’s almost 2% higher – which means that some funds for loans and mortgages are still quite expensive to lenders.

“Drops in the base rate can encourage a lower LIBOR, but currently the uncertainty in the loans market is keeping the rate high, as well as prompting lenders to maintain their tight lending criteria. Both of these need to ease up before the loans market can return to normal – which is why extreme base rate drops to only 1% or 2% might be needed.”

The Think Money spokesperson added that lending criteria is unlikely to ease to allow anywhere near the levels of lending seen during the economic boom. “Lenders will feel they have learnt their lesson from the economic crisis and will look to protect their loans business by keeping their lending criteria high.

“It’s possible that we could see numbers of secured loans return to near-normal levels, since the collateral attached to secured loans makes them a ‘safer’ type of loan from the lender’s point of view. But in terms of unsecured loans, credit cards, overdrafts etc., lenders will probably continue to pay close attention to borrowers’ credit history.”

But the spokesperson was also keen to emphasise that loans are still very much available, and the availability will only increase as the market recovers. “Some people assume that loans simply aren’t available anymore, but that’s not the case – it can just take a little longer to find the right deal.”

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Financial Solutions Think Money Welcome The Consumer Focus Energy Supply Probe

Financial solutions company Think Money (http://www.thinkmoney.com) have welcomed calls for energy providers to reconsider their prices following the Consumer Focus Energy Supply Probe’s findings about the industry, and added that many energy customers pushed towards debt by the rapid rises in energy prices stood to benefit from any agreement to reduce prices.

In their Energy Supply Probe, Consumer Focus, the new watchdog comprising Energywatch and the National Consumer Council, have called for “immediate action from energy companies to reduce their prices in line with falling oil prices”, adding: “This will be good not just for consumers, but for the whole economy.”

It is currently estimated by Consumer Focus that around 5 million British households are in fuel poverty – in which households spend 10% or more of their total income on domestic energy – with increasing numbers of people feeling the pressure of sharp rises in the prices of electricity and gas over the past year.

Wholesale oil prices have seen a huge drop in little over three months, down from around $147 per barrel in July to the current price of $66 per barrel. Drivers have experienced the benefits almost immediately, with the lowest unleaded petrol prices at 99.8 pence per litre at the time of writing, while airline’s fuel surcharges have also been cut, according to the BBC.

But prices of gas and electricity, which are traditionally closely linked with prices of oil, have shown no such reduction in prices – leaving many consumers “wondering why they are left waiting”, in the words of Consumer Focus chief executive Ed Mayo.

According to Consumer Focus, gas prices have risen by 51% since the start of the year, while electricity bills are up by 28% – meaning the average annual household energy bill stands at £1,308.

A spokesperson for Think Money said: “The existence of the Energy Supply Probe is of great reassurance to the millions of billpayers who have been hit with severe rises in energy prices over the past year, particularly those facing debt problems.

“There has been some justification for the price rises – oil prices stood at $147 per barrel in July, and wholesale gas has also experienced massive rises – but with oil now standing at less than $67 per barrel, and with petrol prices coming down, it’s unclear why domestic energy prices have not also come down.

“Billpayers will hope that the Energy Supply Probe, combined with Consumer Focus’ calls for immediate price reductions, will be enough to ensure that their bills become much less of a burden in the coming months.”

But the Think Money spokesperson added that the potential for forthcoming price reductions did not make existing debt an any less serious issue.

“We have seen increasing numbers of people pushed into debt by rising energy bills over the past few months. Because energy is an essential cost, those people with low incomes have been unavoidably hit hard by energy price rises, and many are finding that they can no longer afford to pay their bills.

“The problem is made worse by higher levels of unemployment, and a lot of people who previously had no trouble paying their bills are finding that they are getting into debt because they simply don’t have the spare income.

“We advise anyone struggling with debt to tackle the issue head-on and seek expert debt advice as soon as possible.”

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Lloyds TSB have reported that while many Britons have taken action to clear their debt, they are saving less money

Lloyds TSB Consumer Banking released a new report revealing that over half of UK adults have taken action to clear their debt, but despite gathering economic gloom, almost two in five Britons (37%) are saving less money.The ‘Financial Face of Britain’ report reveals the nation’s savings and spending habits, debt levels and tests Briton’s overall financial know-how.

The in-depth study, of over 5,000 adults*, shows a distinct change in financial behaviour as the credit crunch bites. But whilst spending levels have been curbed, the current financial crisis has hit consumer’s appetite to save at a time when acash reserve is vital.

The report reveals a third of people have changed their spending habits in the last six months and spent less to cope with the credit crunch, with almost 40% of under 35s reporting that they have been cutting back.

People have also reassessed their finances, with over half (55%) of UK adults taking action to clear their debt. Almost one in three (32%) have increased the amount they pay off each month, with a fifth (19%) focusing on paying off more of their debt which is on higher interest rates, such as store cards.

But, almost two in five (37%) are saving less, particularly the older age group; with 43% of 45-54 year olds currently neglecting their savings. While the younger generation are bucking this trend, with almost a third (32%) of under 25s currently putting more money to one side. But when it comes to long term savings, almost three quarters (74%) of under 25s do not have a pension and are not saving enough to secure their future.

Worryingly, one in five people have less than £500 in their savings, with four out of ten families having less than £500 available to them should disaster strike, making many consumers vulnerable to financial difficulty during these uncertain times.

In addition, over two million families are also failing to put enough money aside to secure their child/children’s future and the average family savings balance of£7,542 is considerably lower then the national average (£12,703) for a single person.

Consumers are aware that they need to save more but many people want more guidance and support to kick start the savings habit. Research shows that the majority of consumers are looking for advice and guidance on how to save more money and how to make long term savings.

Ian Larkin, managing director, Lloyds TSB Consumer Banking said: “It has never been more important to save. Economic conditions are set to become more challenging and a healthy savings balance could prove to be a financial lifeline for some families during the economic storm.

“But, with rising bills it’s becoming harder to put money on one side. We all understand the need to save but what consumers told us they need is more guidance and advice on how to save more when their finances are being squeezed. To tackle this, we are launching a nationwide programme to help get Britain saving, which is going to be packed full of advice on how to boost your savings balance and make saving a habit.”

About Lloyds TSB:

Lloyds TSB offers customers a wide range of current accounts, savings accounts,insurance, loans and credit cards, designed to meet different customers’ needs. Lloyds TSB Bank plc and Lloyds TSB Scotland plc are authorised and regulated by the Financial Services Authority and signatories to the Banking Codes.

Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065.

*Research conducted by ICM with 5000 UK adults between 29th July – 4th August 2008.

Via EPR Network
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