ClearStart » Steven Cooke

Latest House Price Index

Steven Cooke — Tue, 27 Mar 2012 09:40:40 +0000

With the first time buyer stamp duty holiday ending on March 24th and more turning to renting as mortgage providers become more cautious with their lending; can the latest House Price Index shed a more definitive light on the current shape of the UK’s housing market?

According to the Department for Communities and Local Government January House Price Index, released on March 13th, average house prices dipped in five of the nine English regions over the year to January 2012. The North West accounted for the largest fall in prices at 3.5 per cent, while the North East and South West both saw the smallest decreases with a matching figure of 0.5 per cent

In contrast five regions saw marginal increases in the year to January 2012. Prices in South East shot up by 2.2 per cent, followed by East Midlands at 1.9 per cent and the North East which rose by 1.5 per cent. Surprisingly London showed the smallest property value increase, rising by 0.7 per cent.

Average house prices

Would-be homeowners have already been deterred from entering the market, and with average mix-adjusted house prices at the beginning of the year standing at £214,852 in England, who can blame them. Those buyers looking for more from their money could look to Wales (£143,441) Scotland (£158,868) or even Northern Ireland (£133,156).

Though London’s house prices have stabilised over the year according to the report, the city still takes the top spot when it comes to house prices. Houses in the capital come in at an average of £349,178. To really make the most of your property budget UK property investors would do well to head to the North East which has the lowest average price at £129,501.Prices in London and the South East exceeded average UK house prices in January 2012.

First time buyers are also having to pay a higher price for their first home. This average price for properties within this group (£153,233) increased by 0.8 per cent.

If you are struggling to afford your first home, debt consolidation could help to free up much needed capital.

Steven Cooke

Steven has worked with the company since November 2006. As a Trainee Insolvency Practitioners (IP) Steven works alongside IPs and debt advisors to provide support and answer technical queries on a case by case basis. Steven is currently studying towards the JIEB qualification having completed the BTEC Advanced Certificate in Debt Resolution in 2009. Steven was part of the project team that attained DEMSA membership for Clearstart in 2010.

350,000 parents could lose state pension credits says TUC

Steven Cooke — Tue, 27 Mar 2012 09:40:12 +0000

Hundreds of thousands of women could be at risk of losing their state pension credits if child benefit is cut, according to the Trade Union Congress (TUC).

Just over 350,000 parents, with the majority of them being women, could lose the vital National Insurance credits.

According to their research there are 351,000 families with children under 12. In this group one person is earning over the higher rate tax threshold while the other is either not working or earning below the lower earnings limit of £102 per week.

The stay at home low earners, whose partners are paying the higher tax rate, are at risk of losing their state pensions credits along with their child benefit.

TUC General Secretary Brendan Barber said: “Child benefit recognises the cost of raising children and the contribution that carers make to society, whatever their income. Cutting it would be deeply unfair.”

“The government claims it can’t afford to pay wealthy families child benefit but because of the way the change will come in, families with an income of £84,000 could keep their child benefit while a single parent on £42,500 could lose out. The fact is that two in five households earning over £42,500 will still receive child benefit.”

Child Poverty Action Group Chief Executive Alison Garnham said: “The child benefit plans now look like another strike on women’s financial security, which brings with it greater risks for children too.”

“The Chancellor needs to scrap the child benefit cut and find a much fairer way of ensuring that all higher rate taxpayers are contributing their fair share to reducing the deficit, not just families with children.”

The government claim that tax breaks for high earners must end. Shadow chancellor Ed Balls said that: “People are increasingly worried about what’s happening to employment, the economy and the deficit, as well as their own living standards.”

If you are concerned about your debt problems and personal finances, you could seek confidential advice for debt management.

Steven Cooke

UK base rate remains unchanged

Steven Cooke — Tue, 20 Mar 2012 15:55:12 +0000

The Bank of England has announced its decision on UK interest rates, once again opting to maintain them at 0.5%.

The bank’s Monetary Policy Committee, headed by Sir Mervin King, voted to keep interest rates at the record-low and not increase the programme of quantitative easing.

The announcement this month marks three years since the Bank of England dropped the base rate to its lowest level in its 318-year history.

The decision was not greeted with surprise by industry experts, as the Bank of England was unlikely to change rates in the face of slow economic recovery.

The decision not to increase the programme of quantitative easing was also not a shock, as the Bank of England increased the programme last month.

“With the decision to increase the quantitative easing programme by £50 billion last month, the clear expectation was that the Monetary Policy Committee would make no change in policy this month,” said Barry Naisbitt, Chief Economist at Santander UK.

“While GDP fell by 0.2 per cent in the final quarter of last year, the most recent indicators of economic activity have been showing more positive readings.”

Some industry experts are predicting that there will be no change in the base rate for at least a couple of years, as the UK economy continues to go through tough times.

There have been signs of some economic recovery, and the Bank of England is unlikely to want to disrupt this by increasing the base rate.

“The committee voted to hold rates at 0.5% for the 36th consecutive month in March, and there is little to suggest it will want to raise rates for a long time yet,” said Fionnuala Earley, UK consumer economist at RBS.

“Inflation is beginning to recede and economic conditions are weak, in spite of support from quantitative easing. So the Monetary Policy Committee has no reason to rush, especially if it fears a hasty rise could squash any budding recovery.”

If the rising cost of living is affecting your finances adversely, ClearStart could offer specialist debt advice to help you deal with the issue.

Steven Cooke

Lack of numeracy skills could lead to debt

Steven Cooke — Thu, 15 Mar 2012 14:30:10 +0000

The nation’s poor levels of numeracy may be pushing them further into debt. Nearly 50% of the UK’s adult population currently has the mathematical ability of a primary school aged child.

According to research by Nationwide Building Society, 17 million adults are being held back by a lack of mathematical understanding.

Graeme Hughes, corporate affairs director at Nationwide Building Society argues that proficiency in numeracy is the “cornerstone to building financial capability.” With debt advice levels set to soar by 40% in 2013, according to the Money Advice Trust, it’s critical that the UK addresses this issue.

Misunderstanding terms and conditions

Millions of people were mis-sold payment protection insurance (PPI) as the cost was factored into their monthly premiums. Being confident enough to question the terms of a loan or credit card may have meant that customers would not have to go through an application process to receive an average of a £2,500 payout.

Brits’ are also turning to a quick-fix way of answering their money problems without understanding terms such as APR. In fact, interest rates can reach a staggering total of 4,000%. This is so much higher than the interest rates offered at high street banks which can be as little as 6.1%.

Lack of budgeting skills

Brits’ lack of mathematical knowledge could also mean that they don’t have a firm enough grip on their finances. In the recent Safety Net report from Bright Grey, 41% of Brits admitted that they would run out of money after six months due to their lack of a safety net.

In fact, many only have a financial buffer of less than £1,000. Over 18 million adults are currently in debt, according to R3′s latest Personal Debt, a figure that is very close to the one for adults with poor numeracy skills.

With 73% of people aged 35 to 44 admitting to not having enough to put away for savings, according to research from Scottish Widows, it’s critical that those in debt search advice on how to manage their finances.

Steven Cooke

Top tips to reduce your home insurance premiums

Steven Cooke — Fri, 09 Mar 2012 06:31:08 +0000

Making savings in any area possible can help you inject more into the household spending pot. Whether its pennies or pounds, it will all aid you on your mission to becoming your own personal financial expert.

Start you savings story by doing your utmost to reduce home insurance premiums. Here’s how:

Get rid of added extras. Reducing your policy to cover your basic needs will help you shave as much as 25% of your premiums.

Pay your insurance in one lump sum. Making monthly payments over the year could mean that you incur admin or interest payments.

Up your excess payment. Choosing to pay over and above the minimum excess should see your premiums taking a nose dive.

Buy a burglar alarm. Purchase an alarm that is approved by your insurer and add extra locks to windows and doors. This could see your insurer lower your premiums by as much as 7.5%.

Become a nosy neighbour. Becoming a member of your neighbourhood watch scheme could see a reduction in premiums of up to 5%.

No claim, more gain. If you fail to make claims on your policy in five years time you could enjoy premiums that are discounted by as much as 50%.

Check that your home is safe from fire. Installing smoke detectors in kitchens and other areas is critical. Fire blankets are also essential. Carbon monoxide detectors should also be installed in most rooms.

Deal with subsidence. Insurers will still back homes who have reported continued subsidence, and they won’t put a levy on insurance premiums. However, this is all dependent on home owners acting quickly to report and address the problems as they arise. Contact a structural surveyor if you are not sure about the extent of your problem.

Put your buildings and contents cover together. Insurers want your custom so if you take out both policies together you may be entitled to a discount.

Compare the market. Use price comparison websites to ensure you’re getting the best deal possible. Also check this price against going to insurers direct.

Steven Cooke

Why being single costs more

Steven Cooke — Sat, 25 Feb 2012 12:04:22 +0000

Singletons are paying the price for their solo status to the tune of £3,500 pounds a year, according to research by the Co-operatives UK.

We already know that those who are savouring in the delights of wedded bliss benefit from tax breaks, access to larger mortgages and avoid paying the dreaded ‘single supplement’ tagged onto holidays that are taken by solo travellers.

And if this news wasn’t enough of a blow to the scores of people who don’t have a partner, those who are single parents by choice or circumstance are set for further cutbacks to their budget. The government plans to put all work-related benefits into one universal credit, which will slash the proportion of benefit allocated to childcare.

Findings from the Co-operatives UK study confirm what most singletons already know, that it definitely pays to be part of a couple.

The study revealed that single people spend an average of £7,400 a year on housing, compared to the £4,000 figure for those sharing with other people.

In terms of bills, singletons fork out £3,200 a year while sharers make savings with a lower figure of £2,000.

Single people spend almost £2,000 a year on food on average, while couples make a £500 saving on this figure.

Polishing up their appearance, on costs such clothes haircuts and gym membership, seems to be less of a concern for singletons, who may not have anyone to show their efforts to, spending £717 a year while families spend nearly £2,000.

Ed Mayo, Secretary General of Co-operatives UK, said; “Everyone is experiencing greater pressure on household budgets.

“But people who are living alone are suffering more than most, at a time when there are more single households than ever before in the UK.

“Whether you live with friends, family or a teddy bear is a personal choice, but there is a growing recognition, whether it is your home, food or car, that it is cheaper to share.”

With the numbers of people living alone rising by around 145,000 a year, according to official statistics, singletons will have to think of creative ways to boost their budgets.

Steven Cooke

What is a prepaid credit card?

Steven Cooke — Sat, 25 Feb 2012 11:55:37 +0000

If you want to manage your finances but don’t want a credit card, a prepaid card could be the ideal option for you.

The card is simple and easy to use and it works in the same way as a pay-as-you-go mobile phone top up card.

All you have to do is put money on the card and you will automatically be limited to spending up to your card balance.

Pros

The card provides a more budget-friendly way of managing your personal finances. You can never spend more than you put on because the card is not linked to any bank accounts.

The card is also available to everybody, even those with a poor credit history. This is great if you don’t want the risk of running into an unauthorised overdraft, because this facility just doesn’t exist on a prepaid card.

As the cards are not linked to bank accounts, if the prepaid card is lost or stolen, there is no risk of identity fraud.

They are a smart alterative to credit cards and good for helping children and teenagers to budget too. You have to be over the age of 18 to take out a credit or debit card, yet you only need to be 13 or over to take out a prepaid card in most cases.

Cons

While getting a prepaid card has numerous advantages, the Financial Services Compensation Scheme (FSCS) has warned that not all prepaid cards are protected in the case of a provider going bust.

You can load up to £1,200 on some prepaid cards and if the card is lost or stolen and not covered by the FSCS, then you could put a negative dent in your finances. Prepaid cards are not free and you will normally have to pay around £5-£10 to buy one. In most cases there is a fee to upload cash onto the card, a transaction fee, an inactivity fee, a replacement fee and an exchange rate fee.

The advantages outweigh the disadvantages, especially for those who don’t have access to credit cards.

Managing your spending habits is one way to try and reduce your outgoings and debts, however, if your debt levels are overwhelming, you may wish to seek professional help. Clear Start offers a range of debt management programmes which can be tailored to your individual circumstances.

Steven Cooke

Wages only last for 17 days according to Halifax Study

Steven Cooke — Thu, 16 Feb 2012 13:13:55 +0000

Do you receive a monthly wage? Well, according to a report from high street bank Halifax the chances are more than likely that it won’t last the full 31 days.

The survey of 2,000 adults revealed that the average employee had to dip into their ‘piggy banks’ after spending their entire monthly pay just 17 days after receiving it.

Employees’ increasing anxiety levels over the state of their finances was further confirmed when it was revealed that one in five people check their bank balance ‘at least once a day’ with a further 22% checking ‘more than three times a week.’

The rising cost of household spending on bills such as food and heating, coupled with the indefinite freezing of pay bands has led to workers paying out more than they had initially budgeted for.

The study concluded that one in ten people ‘admitted that things get tight within a week of receiving their monthly salary.’

The report comes in the wake of a series of financial squeezes which could make the plight of the cash-strapped generation, highlighted by the Halifax study findings, even worse.

State employees on £21,000 or below face a two-year pay freeze, while the average salary enjoyed by their private sector counterparts falls lower than the rate of inflation – currently at 4.2%.

Commenting on the aftermath of the credit crunch, Sir Mervyn King, the Governor of the Bank of England, said:
“We have now experienced the longest period over which real wages have failed to rise since the 1920s.”

The hardest hit have found themselves turning to payday loan lenders, whose interest rates can reach up to a hefty 4,000%.

Changes to child benefits in 2013 will mean that if one or both parents earn £42,475 they will no longer be able to receive the benefit. The move is said to affect some 1.5 million families.

The need to bolster income with outside borrowing was also highlighted as figures by Borro, the ‘personal asset’ lender, revealed that the average loan had rocketed from £1,000 in 2010 to £3,500 in 2011 and is set to climb to more than £5,000 this year.

Steven Cooke

UK national debt hits over £1 trillion for the first time

Steven Cooke — Mon, 30 Jan 2012 13:08:55 +0000

The UK national debt has reached £1 trillion for the first time in history. Despite sharp austerity cuts, the state of the country’s debt is higher than ever before and continues to grow.

Britain owed £1003.9 billion last month, which is a significant jump from the £883 billion held in December 2010.

According to the Office for National Statistics (ONS), this figure has doubled since 2007 when national debt was only £534.6 billion.

The government is borrowing at a much higher and faster rate than it is earning. Much like the state of the nation’s personal finances, many risk taking on much higher levels of debt than they can pay off.

The UK had one of the worst budget deficits in the EU during the last financial year and was only surpassed in this sphere by countries such as Ireland and Greece.

Despite figures showing that public borrowing has fallen for December, total borrowing for the year now stands at £103.3 billion, leaving the government short of £146 billion.

Whilst the total debt figure is now 64.2% of the GDP, it is still much lower than the 150% faced by Italy and Greece, making it a safer bet for investors. Yet, if Britain shows any signs of a struggle to make repayments, global markets may charge higher interest rates, making it harder for the UK to pay off its debts.

Although personal debt may not match the scale of national debt, it can still cause significant damage to an individual. If you are struggling to pay off your debts and the interest is simply mounting, you should seek professional help and advice.

The UK might be able to negotiate debts with its investors and the international market, but creditors might not be so happy to do the same for you. However, with a debt management company behind you, they could talk directly with the creditors to resolve the issue.

Debt management plans involve making a single monthly affordable payment and could reduce creditor collection activity.

If you think you may need to consider a debt management plan or find alternative debt solutions, ClearStart could help.

Steven Cooke

Brits fall further into debt in the New Year

Steven Cooke — Tue, 10 Jan 2012 12:52:04 +0000

The number of people spiralling into debt has increased in the UK according to a report from the Bank of England.

Brits took out £400 million of unsecured debt in November last year, adding further fuel to mounting debt. This is likely to continue into the New Year as many continue to rely on credit cards.

Bank of England figures show that UK adults have been taking on more and more debt over the last six months of 2011. The demand for unsecured lending has also increased over the last three months.

It might come as no surprise that lending has risen in the run up to Christmas following a harsh few months when inflation reached its peak of 5.4% in September.

Further research from the Post Office has revealed that over 2 million adults will spend more on credit cards in January compared to the same period last year.

A staggering 12 million people are expected to spend their first month in the red this year, just to cover the costs of everyday living. One in ten is using their plastic backup to pay off Christmas debts, whereas others need to pay their household bills.

“Whilst it is good to see so many people intending to manage their credit card purchases and repayments sensibly, there are still too many people who aren’t thinking of the consequences,” commented Az Alibhal, Head of credit cards at the Post Office.

Debt solutions

You do not have to face your debt problems alone as there are many solutions and options available. It would be highly advisable to seek debt advice from professionals who can address your problem and find the right method for dealing with your existing debt.