Archive September 2018

Pet Insurance For Your Rabbits

Pet Insurance For Your Rabbits

Rabbits are cute, furry animals- the reason why many households in UK have them for pets. If you already have rabbits or are being pestered to buy one, think about pet insurance given the costs. Rabbits are social animals and feel most comfortable in pairs. So, start off doubling every expense. Taking out pet insurance can help pay fully or partly if your rabbits fall sick or die due to a medical reason. On the whole, the average cost including food, hutch, vaccinations and insurance might go upto £2,000 a year.

Here, we look at the outlay on owning rabbits in the UK…

Cost of Buying Rabbits

The first question arises, “Where do I find rabbits?” You can head to an animal adoption centre run by Blue Cross and the RSPCA. It’s recommended that you check their health and the conditions they’ve lived in before getting them home. You should be proactive if you’re looking at a pet shop or sanctuary. This can go a long way to reduce your premiums on rabbit insurance. Breeders and pet shops may charge £15- £55 for a bunny while you can adopt one from a rescue centre for fees between £25 and £60. Prices largely vary according to breeds and whether the rabbits have neutered and vaccinated.

Initial One-Off Costs

A hutch for your pet is an unavoidable expense that may go upto £300. Here too, prices vary on whether you want a hutch for indoors or an outside hutch complete with an attached run/pen. In addition, feed bowls, toilet trays, a carry box and water bottles will come to around the £50 mark.

Cost of Rabbit Food

Don’t expect your pet rabbits to just survive on hay. Your veterinary doctor will likely suggest a wholesome diet providing adequate nutrition. Although grass or hay is what they feed on in a large quantity, pellets and vegetables should be there as well. Depending on the age of your bunny, hay may cost around £10-£20 a month, pellets £50 a year and vegetables of £20 monthly. It totals to a yearly spend of £400- £530 (plus treats of another £50+ on top).

rabbit pet insurance

Neutering and Spaying Costs

Pet insurance covers regular and emergency visits to the vet. Neutering and spaying your rabbits is necessary regardless both are males or of the opposite sex. In the first case, neutering males prevents fighting and improves behaviour. Getting them operated against breeding is a good option if you don’t want the hassle of baby rabbits.

Vaccination Costs

Timely vaccinations keep your pet healthy and reduce the chances of claiming on your pet insurance. But that doesn’t mean you neglect rabbit insurance. Some policies include vaccinations, so check for this before insuring your furry friends. Rabbits usually must be vaccinated for Rabbit Viral Haemorrhagic Disease (VHD) costing £15 and Myxomatosis which is another £15. So, yearly costs may go up to £30 for a single bunny and £60 for a pair.

Medical Costs

Every pet dog, cat or rabbit will need proper care and attention from the beginning. Rabbit insurance covers expenditure on medical treatment.

  • For rabbits, teeth are a major consideration as it grows 3mm longer in a week’s time. You should take care that it’s trim. Generally, the teeth wear down with hay but not with a muesli-style diet. Overgrown teeth may need a visit to the vet involving filing fees of £100. If the issue entails more complications, your pet may have to be administered general anaesthetic.
  • Eye problems such as ulcers or conjunctivitis are commonplace arising from fighting or hay. Costs are £30-£80 for a tear duct flush, from £20 for eye treatment and from £12 for eye drops.
  • Ear problems might total £400. CT scans and surgery means spending £1,000 or more.

Cost of Rabbit Insurance

Not many insurers offer rabbit insurance so the choice is limited. Typically, premiums remain unaffected by breed of the rabbits and range from £6 to £16 every month. This pet insurance policy covers vet bills, complementary treatments, notices and rewards for missing bunnies and pet boarding fees.

Cost of Cremation

Animals also leave for their heavenly abode one day. When the time comes for cremating your rabbits, the bigger your bunny the more you’ll pay. For example, you’ll likely pay £80-£100 for individual cremation.

It may seem that upkeep of rabbits is cheap but it isn’t so. Bear in mind that ideally, you’ll need a pair that lives for around 8-12 years, that is £24,000 for 2 bunnies for 12 years. That’s why you should consider applying for a pet insurance or set up your own fund from which you can draw for expenses.

 

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Benefits of 12 Month Loans

Benefits Of 12 Month Loans

Benefits Of 12 Month Loans

Life doesn’t always go as planned. Moreover, in the UK, it’s almost impossible to save for a rainy day given the rise in the cost of living. What do you do then if your plumbing breaks or your car has a flat tire? Ignoring the problem isn’t the solution. When such things happen, funds are needed and if you have a not-so-great credit history, no high-street banking institution will give you a loan. However, approaching a lender increases your chances of getting 12 month loans. But…

 

What Are 12 Month Loans?

Now, there are two types of short-term loans: payday loans and instalment loans. Payday loans tide you over till the next paycheck. You normally pay it back the next month. With 12 month loans, the loan term is pretty straightforward- 12 months. This distinguishes it from other short term loan types. A form of instalment loans, they can be secured, unsecured, with or without a guarantor. It’s safe to go for unsecured and no guarantor loans if you either don’t have high-value possessions or don’t want to risk losing them.

 

Benefits of 12 Month Loans

Loans with a duration of 12 months have certain benefits to them. Let’s take a closer look.

Boon for people with Bad Credit Rating/ Bad Debt:
Many UK citizens have fallen into the trap of bad debt with a missed payment here and an unpaid bill there. With a low credit rating, high-street financial institutions don’t want to do business with them. So, where do they go? There are many lenders who specialize in very bad credit loans & lending. Offering unsecured loans to UK residents, bad credit doesn’t matter to them. Because they’re taking a risk, APRs featured might be far higher. But, the whole point is that you want somebody to lend you money when you can’t ask your family or friends.

They Are Flexible:
Lending happens only after ascertaining that you have the financial capacity to pay back the loan. This is all the more important as the lender doesn’t have anything if you fail to make repayments. 12 month loans offer flexible repayments allowing you to spread the cost of borrowing. But, the longer the loan term, the more interest you’ll be paying in total. Of course, if you come by some extra cash regularly, you could pay it into the loan instead of spending it on something. In this way, you would pay off your loan faster and also save on interest.

Build Or Improve Credit Status

Instalment loans are very useful for turning around a bad credit rating. 12 month loans if taken and paid back in proper instalments on time can improve your credibility in the lending market. A strong repayment history has the power to push your credit score in the right direction. Remember, you should be confident you’ll be able to repay else you’ll just get yourself deeper into debt. For those starting out in their careers, instalments loans build a positive credit history and show an excellent credit report.

12 month loans

Access To Loyalty Discounts

As there are numerous lenders in UK offering 12 month loans, each of them is vying for attracting and retaining customers. The result- incentives and loyalty discounts to borrowers who make timely payments! The most popular forms include lower interest rate on your next loan, a larger borrowing amount and a plethora of other incentives. Best customer service is no exception.

Quick Turnaround Times

It’s said that the bigger the company, the more the paperwork. True to that, top banks and lending agencies in the UK need at least a week to process applications of people with good credit. Yet, with the small lenders, this is never an issue. All you do is apply online with the relevant documents. Advertising a quick turnaround time, cash will be transferred to your bank account in less than 24 hours!

Popularity of unsecured lending products, and specially 12 month loans is only set to rise. It’s crucial that you find a lender with a very good track record and unmatched customer service if you’re looking for instalment loans.

Growing Your Savings Tree- Tips For Savers

Growing Your Savings Tree- Tips For Savers

In today’s low interest-rate environment, growing your savings tree has indeed become difficult. It’s one thing to be able to save and another thing to make savings work for you. Savers are always on the lookout for new tips and tricks to build up a big pot of money for a rainy day. In the UK, returns on pounds don’t come so easily. Yet, there are some ways you can ensure your money is working as hard as possible. Today, we bring you some essential saving tips which are sure to work if put into practice.

Pay off your debts:

Although this article is not on debt, think about it: if you’re paying a higher interest rate on debt and getting a lower interest rate on savings, then you’re effectively losing money. You’re actually shelling out more pounds than you’re earning. Thus, it makes sense to clear any debts you may have as soon as possible. You can see for yourself how your money tree will grow when done away with interest payments. Just remember to put aside enough money for a rainy day. If you have accumulated outstanding debt on your credit card, transfer it to a card with a lower rate and then pay it off tension-free over the next few months.

 

Use ISA Allowance:

Tax-free ISAs have become fairly unattractive, thanks to the introduction of the personal savings allowance in 2016. This allowance is applicable for those banks which aren’t tax-free like non-cash ISAs. Basic rate taxpayers are exempt upto £1,000 and higher rate taxpayers upto £500 savings interest earned. However, it’s still worth using the £20,000 ISA allowance. Even if you can’t fully claim this personal allowance due to low savings, an increase in interest rates usually makes up for it.

 

Go for fixed rate accounts giving higher interest:

It’s affordable for banks to pay a higher interest rate on fixed rate accounts as money locks in for a specific period of time. The longer you keep your money, the more interest you earn. But, take care not to lock in your pounds at a particular rate for too long as you’ll be losing if banks raise the interest.

 

Switch to a better current account:

Some current accounts also pay a certain rate of interest on it. If you are a saver and tend to keep a high balance in your current account, consider the interest rate you’re getting paid. Switch to a better account to earn more as interest. That said, current accounts always prove themselves a better alternative to easy access accounts. That’s because banks will pay you to keep your money, at the same time you can easily withdraw whenever you want.

 

Teach your kids how to save:

It’s important that kids learn about saving money and become savers from a young age. You should open a kids bank account for them that will teach them how to manage their money. They should also be encouraged to save a part of their pocket money every month. Competitive interest rates can be got on children’s bank accounts. For example, some banks pay a 4.50% fixed AER for depositing between £10 and £100 a month.

 

Watch out for when the bonus period ends:

Quite a few savings accounts offer short term bonuses for about 12 months. Therefore, you should keep yourself up-to-date and review your savings periodically. If the account ceases to remain competitive, move your money as soon as possible.

Utilise savings to offset your mortgage:

One of the different types of mortgages, offset mortgage allows borrowers to offset their savings against what they owe. Thus, you won’t get savings interest but you pay zero interest on an equal amount of your outstanding mortgage. For example, if the mortgage is £300,000 and £100,000 in savings, interest needs to be paid only on the difference between the two, i.e. on £200,000. Opting for this mortgage type enables homeowners to greatly reduce their mortgage term.

 

 

Prepaid Cards- What They Are & How They Work

Prepaid Cards- What They Are & How They Work

Do you want to avoid carrying cash in your wallet? Or do you want a card that helps you manage spending limits? If you answered yes to either of these questions, what you should be searching for is a prepaid card. These cards look similar to debit and credit cards but slightly differ in their nature and working. No doubt you can make purchases with them and even withdraw cash, they need to be loaded with cash first. There are many companies offering prepaid cards, so compare your options and select the suitable one for your needs.

 

What Are Prepaid Cards?

Prepaid cards are simply pounds in plastic form. They’re also called everyday cards. Unlike a debit card, they’re not linked to a bank account. Also, you can’t borrow money on them like with a credit card. You have to first add balance to the card and pay-as-you-go. When your prepaid card balance falls to a low, you can choose to top-up and keep using the card. Useful for online shopping, they provide ultimate protection as scammers can’t withdraw huge amounts even if they nick your personal details. The damage would limit itself to the money on the card or until you notice and get it blocked by the issuing company.

Generally speaking, prepaid cards are best for teenagers, people who want to keep a hold on their spending and those who don’t have a bank account. Moreover, they enable you to remain debt-free, are good for budgeting and are given without a credit check.

 

How Do Prepaid Cards Work?

When you first buy a card, you have to load it with money. There’s usually an upper limit in keeping with the purpose of curbing unnecessary expenses. As money runs out, you can top it up at a Post Office, Paypoint or simply a shop that accepts prepaid cards. Again, if you want to transfer pounds online to your card or set up direct credits to your card, you’ll need to have a bank account. Another form of plastic currency, any shop that accepts debit and credit cards will be ready to accept this mode of payment. You would have to enter a PIN for payment to happen. Some retailers may tell you to just sign instead. Prepaid cards are quite safe as they are protected by a unique PIN number and monitored by the card issuing company for fraudulent activity.

How Much Do They Cost?

Prepaid cards don’t always come free. You’ll usually have to pay a small fee to get the card in your name. But, sometimes the card issuer may give you a waiver if you load with a certain amount like £40 or at times of special offers. Some also carry a monthly fee to use the card. Some also charge a small amount for shopping online or in a brick and mortar store.

 

Pros of Prepaid Cards

  • Pay monthly vs pay-as-you-go:
    With a pay monthly card, you pay a monthly sum but enjoy lower transaction fees and rewards and cashback which isn’t available for pay-as-you-go cards.
  • Suitability:
    Pay monthly cards are designed for people who take full advantage of them for their day-to-day transactions. Whereas pay-as-you-go is geared towards customers who transact fewer times in a month.
  • Budgeting:
    As money has to be loaded beforehand, it helps people stick to their budgets. Parents can keep an eye on how much their teenage children are spending. It’s great for businesses too.
  • No credit check:
    As the money you’re loading onto the prepaid card is your own, no credit check is done. This means even people with a poor credit record can easily get hold of them. Some cards also offer a ‘credit builder’ service to help you better your credit rating.
  • Alternative to bank account:
    It’s okay if you don’t have a bank account. You can request your employer to credit your salary to the prepaid card.
  • Great for travelers:
    If you identify yourself as a frequent traveler abroad, prepaid cards are a handy addition to your wallet. Allowing you to pre-load foreign currency, they enable you to side-step the expensive fees on debit card payments overseas.

Basics of Will Writing

Basics of Will Writing

Planning for death is something none of us likes to do. Inspite of that, the question of who should get our money and possessions always plagues us. In normal practice, immediate heirs inherit their parents’ estate when they pass away. But, what if you want to leave some money to your household help or somebody else? Or simply, how much does every family member get? As you have no control over this after you die, it’s good to undertake will writing when you’re hale and hearty. To help with basics, we answer a few questions people ask:

  • Why do I need a will?
  • Who can carry out my wishes?
  • Is it valid by law?
  • How do I make one?

Keep reading to learn more about will writing. It’ll be worth your while.

 

Why Do I Need A Will?

Probably nobody would dispute the importance of a will. It’s this document that allows you to maintain control over your precious possessions long after you’ve gone. Almost every UK citizen engages in will writing at a point of time in their lives. You may like to read about the four main reasons why you need a will.

  • When you die, your family has to cope with your loss. At such a time, property disputes may cause additional tension. A will can prevent this with an arrangement for the distribution of your money.
  • According to law, your estate goes to your kin or next in line. Even then, you should write a will to communicate your wishes to the law.
  • Without a will, your family is likely to pay a hefty Inheritance Tax on the money and property you leave them.
  • If you want to leave money to somebody who’s not a blood relation like an ex-spouse or step-children, a will can help you do that.

 

Who Will Carry Out My Wishes?

Your will tells two main things:

  • Who should your money, property and possessions go to
  • Who will carry out the instructions i.e. an executor

Such instructions may also pertain to what type of last rites you want such as burial or cremation. Any executor will do their best to carry out your wishes, so long as they don’t mess with the law. However, in some cases, it might not be possible.

Is It Valid By Law?

Will writing is a simple task and doesn’t require much knowledge of legal terms. Neither does it need some special sort of paper. For a will to be a valid one, you should keep in mind the following things.

  • It should say how your estate will be divided after you die.
  • It should have been made when you’re in a sound state of mind. Also, a will made by pressure from any party is considered as invalid.
  • Such will should specify a date and signatures of the will-maker and two adults acting as independent witnesses. Bear in mind that a witness can’t be a beneficiary i.e. a person to whom you’re leaving your estate.

 

How Do I Make One?

Will writing is an excellent way of ensuring that your property goes to those whom you intend it to. If your family is small, it’s a simple and straightforward process. But, if you’re in a complicated situation, for example, have a divorced spouse and children from another marriage, you’ll need careful planning. Putting it off or avoiding will writing altogether isn’t a solution. If you fail to do it, the law will take it into their hands.

There are two simple steps of will writing.

  • Make a plan:
    Talk to your family and discuss who should get what. They might have some suggestions which you hadn’t earlier thought of.
  • Get your will prepared:
    You can hire a will writing service to prepare your will. If you can’t afford this, you can simply state your wishes on a sheet of plain paper and sign on it.

A simple will can cost between £144 and £240.

If you’re divorced and have children, you might need a complex will. It can cost you anywhere from £150 to £300.

For a situation that involves trusts and overseas properties, or if you want tax planning advice, you can go for a specialist will costing a minimum of £500.

You could also buy a template document in stationary shops for as small an amount as £10.

Save Money on Car Rentals Abroad

Save Money on Car Rentals Abroad

You take out some time from your busy work life to take a breather. It may be 3 days or a week or 2 weeks. If you have taken weeks off your work it would make sense if you want to travel abroad and live in a different atmosphere for a while. Because let us be honest you won’t stop thinking about work if you are spending your holidays in the same place as you work.

You have booked your tickets and made all the preparation for your holidays. Booked your hotel, pinned down destinations to travel, etc. But what about travelling when you reach there? One of the best and popular ways to travel when you are abroad is to rent a vehicle/car. When you rent a car it gives you the freedom to travel at your convenience, when you want and wherever you want. It means that you don’t have to rely on any public transport to get to any place abroad.

But since this has become a very well known mode of transport, the rental agencies have increased their prices and charge some extras which can cost you more. Spending more money on travelling abroad is the last thing you want to do. However, there are a few things through which you can get some cheap car rentals while you are abroad.

 

Don’t always choose airport car rental

When you travel to any country or place, you would notice that each and every major airport has car rental companies. They are for your service 24×7 so that you can have a nice trip as soon as you get down from that plane. However, the rental companies there often charge more. But you should n’t choose them just because they are convenient and easy to reach. There are a lot of car rental agencies all over that offer a reasonable price for renting a car. If you are comfortable you should move out of the airport and look for a rental agency which provides you with different car rental plans.

 

Book in advance

If you already know the dates and have booked your tickets for your trip, you can contact the car rental company and book your ride. This will help you to get a reasonably low rate on the car. Because what rental companies do is increase their rates if you book your car days before your trip.

Also, one advantage of pre-booking your ride is that you can get the car model of your choice.

Be Cautious of one-way fees

Car rental companies give you the freedom of picking up your car from a different location and dropping it off at a different one. What this does is takes away your hassle of making a round trip just to return that car. This could be good for you if you are making a long trip. However, not all of the companies provide this service.

Companies can charge you extra for this service, so it’s in your best interest to see for few other places to compare the prices.

 

Brimming

The term brimming refers to when you rent a car from the car rental company it mostly has a tank which is full of fuel, one of the condition is that you have to return it with the tank with the amount of fuel which was in it when you rented it. Due to this many of the rental companies have fuel stations located near. But they charge you more for that, this can put a dent in your holiday budget.

So in order to save money, you should look for a fuel station which is just miles before the place where you are going to return your car. This way you can pay less for the fuel and still be able to return the car with a full tank of fuel.

 

How To Improve Your Credit Score

How To Improve Your Credit Score

Often, people grumble about missing out on opportunities because of a low credit score. Accessing financial products like loans and credit cards becomes tough for them. Time and again, financial experts have stressed the importance of maintaining a good credit rating for cheaper borrowing. Although your rating may not be in very good shape at the moment, there is definitely scope for its improvement. But first, you need to understand the basics of credit score. In this post, we cover:

  • What is a credit rating?
  • Can I check it free of cost?
  • How is a good credit score determined?
  • Tips to improve my credit score

 

What Is a Credit Rating?

On the basis of information in your credit file, otherwise known as a credit report, every UK citizen has a number. This three-digit number can affect whether lenders will like to lend to you, how much they’ll let you borrow and how much interest you’ll pay. Every lender views credit scores differently, so you may qualify with you and not the other. Though credit files store transactions upto six years, lenders will take interest in your current financial situation. If your report shows a few delayed or missed payments, your credit score is likely to be low. It can show you as a “high-risk” individual and make insurance and mobile contracts inaccessible. It’s a sound idea to regularly check your report for errors or fraudulent activity.

 

Can I Check It Free of Cost?

Credit files are kept by three main Credit Reference Agencies (CRAs) in the UK, namely Equifax, Experian and Callcredit. You can request for a full paper copy of your credit report or simply get an online version. Going through these agencies may cost some charges, but it’s for free on their partner sites.

CRAs also offer membership schemes by which you can always be up-to-date with changes to your credit score. Some also offer access to agents who can help with advice. Remember if you’re on a free trial and don’t want to pay the monthly subscription, cancel before the trial ends.

You legally have a right to look at a copy of your credit report for no charges whatsoever. You can request this from any credit reference agency that holds your credit details.

 

How Is a Good Credit Score Determined?

A credit score may be good or bad depending on a particular lender. However, if it’s good with a CRA, then you can mostly set aside worries about lenders. At a glance, a good credit score with

  • Equifax scores 420 on 700
  • Experian scores 880 on 999
  • Callcredit scores 4 on 5

Good credit behaviour like making on-time payments gives rise to a high credit rating. So, the longer a bill goes unpaid, the severe effect it’ll have. Most negative marks remain on your credit file for a maximum of six years.

Tips To Improve My Credit Score

Follow these simple tips to see a change in the way lenders view you.

  • Register on the electoral roll:
    It’s like an identity proof that projects a borrower as trustworthy.
  • Check for mistakes:
    A paid bill might still show as unpaid or your address may be incorrect. Take care of the small things and report any errors immediately.
  • Pay your bills on time:
    Paying bills for your phone or internet connection shows that you are capable of managing your finances effectively.
  • Check for links to other people:
    If you have a joint account with your spouse or are linked in any way to a person with a poor credit score, loans may be hard to come by.
  • Keep a watch for fraudulent activity:
    Any suspicious behaviour like a credit request which you didn’t make must be brought to the notice of the CRA immediately.
  • Avoid CCJs:
    County Court Judgements can severely dent your credit score. If you have debt management issues, get free advice from an expert or online.
  • Eliminate high levels of old debts:
    Before taking on new credit, consider clearing off past debts else banks, building societies and credit card companies may be hesitant to lend.
  • Don’t change houses often:
    If you change your address frequently, lenders might think you’re doing it to evade creditors.

 

Money Management Tips

Money Management Tips

“If you learn the art of money management, you’ll find that a few pounds go a long way” a popular financial expert has said. Every month’s beginning brings the paycheck and loads of happiness. Yet, the money’s over even before the end of the month. If managed in a better way, money can help you stay on top of your bills and save thousands of pounds in the bargain. You can put these savings towards clearing your debts or spend them on your next holiday. We tell you how you can make your own budget and stick to it.

 

Set Up a Budget

A budget is a summary of all your incomings and outgoings. They assist you in getting a clear picture of where and how you spend money. It’s often the first step to gain control over your finances. Making a budget entails a bit of effort but you’ll find that it’s worth it. What you can gain from budgets are:

  • Little need of extra credit
  • Manage unexpected costs with ease
  • Good credit rating
  • More likely acceptance for a home loan
  • Spot areas where you can cut down on spending
  • Save up for a holiday or new car

To begin with, you should work out how much you spend on household bills (utility and power), living costs (rent), financial products (life insurance), family (gifts), travel (car fuel, public transport) and leisure (sports, restaurants). You can either do this on paper or using spreadsheet software.

 

Get Your Budget On Track

An easy way to get your budget back on track is to find out where money is being spent and whether it can be cut down. Simple things like carrying your own lunch to work go a long way in eliminating expenses. Money management tip: Keep a note of everything you buy in a month.

Include Everyone

Money management is successful only when every family member follows it. Sit down with your partner and children and discuss how each one can reduce their spending. Mutual consent is essential.

Cut Household Bills and Mortgage

When a household is thoughtfully run, the bills automatically reduce. Turn off lights and heating when not required. You can also look for a new mortgage deal that saves you thousands of pounds in the long run.

Be flexible

It takes time for the result of your actions to reflect. Remember that managing money is an art at which you get better and better. You won’t end up saving hundreds of pounds overnight so be flexible.

money management

Prioritise Your Debts

Prioritising your debts means paying off those first that are an immediate priority. For example, credit cards and store cards normally charge a high rate of interest. So, it makes sense to be relieved of them as early as possible. Even if you’re focusing on paying off another debt, keep to making minimum payments on credit cards and loan agreements. You could also get help regarding so-called ‘priority debts’ like rent, mortgage, court fines and council tax to name a few.

 

Aim For High Savings

As much as it’s tempting to spend money, saving is done by few people. However, with budgets, it’s easier to achieve your savings goals. Your first step should be to create an emergency fund to fall back on in case you fall sick or your boiler breaks down. This can be done by saving a few pounds each month into a savings account. Once done, aim for other savings goals like:

  • Buying a car up-front without a loan
  • Taking a holiday with your own savings
  • Having extra money during a maternity or paternity leave

Invest Your Savings

As your savings grow, you can put pounds into your pension and life a comfortable life after retirement. Draw up investment plans in line with your goals so that you know how much to save as you grow older.

 

 

Repaying Your Student Loan Faster

Repaying Your Student Loan Faster

It is difficult to continue higher education without a student loan as in recent years, the cost of education has increased to such a great extent. At various interest rates, there are many reliable lenders such as banks and other private lenders that grant student loans and it is also not difficult to get access to these loans. But because of the lack of proper jobs and high-interest rates, the students find great difficulties in repaying the loans which is the major problem.

Also, there is a combination of a loan from the government and variable loans which can often make situations difficult. You may have to find out easy means to repay your loans if you are fighting with your student loan.

 

Select the right repayment plan

With the proper repayment plan, it is very important to make sure that you are successful in choosing the right federal loan. Especially in the context of federal loans, different loans offer different repayment options. For a term period of about 10 years, the loans range from a standard plan.

To lower the interest rates, there is even income-based repayment option available. In order to be able to select the best options, you must make sure that you acquire information on different repayment options.

 

The private loans must be paid first

In the context of private loans, there is another important thing that you should always remember. In these private loans, the interest rates with no credit check are higher. That’s why you must try to pay off these variable loans first.

Even if you do not want to pay the high interest rates, the rates can climb in the next few years. So that you are relieved from a majority of loan terms, it is always better to pay them. You can concentrate on a fixed one granted by federal agencies, once you have repaid the variable ones.

 

Pay frequently

Paying more every month is the easiest way to pay off your student loan. You can try to pay slightly more based on the monthly amount that you have to pay each month. This will reduce your burden over the student loan if the lender accepts the extra amount.

On the basis of which you can set up a plan, you can decide a percentage of extra payment that you can afford to pay each month. You can save money on your interest rates if you are able to pay off a greater amount of money as it is obvious that your loan will be repaid.student loan

Make a Better budget

To create a proper budget is the first and the most important thing you should not forget. It will not enable you to understand and determine the amount you need to pay due to lack of a proper budget. So that you are able to repay your loan a better budget will surely help you to save more money.

To create a good impact on your overall credit score, getting rid of student loan or any other loan at the earliest is essential. Hence this can be a good option.

 

 

How much you are charged will depend on your circumstances such as:

  1. If you do not keep your details up to date – Whatever your income is, until the student loans company has all the information they need, you will be charged RPI plus 3%
  2. When you’re a university graduate – The interest charged will be RPI plus 3% while you are studying up until the April after leaving your course.
  3. When you have left your course – Based on your income the interest rate will be up to a maximum of RPI plus 3% from the April after you have you have left your course.

Planning for Pension

Planning for Pension

After working for a few decades, there comes a time when people start thinking of moving out of the workforce. Retirement is when you decide not to work any longer. A new phase in your life opens up. Now, there are no early mornings and returning from late night shifts. Life becomes relaxed and you can devote more time to your hobbies. However, retirement is a major life decision and one that should not be done in haste. It’s so much important to plan ahead regarding your finances. You should understand that the income you’re used to will reduce and accordingly save enough before you put in your papers. Here, we cover some frequently asked questions about retirement and pension in the UK.

  • When can I afford to retire?
  • How long does retirement last?
  • How much income would I need?
  • What is a retirement budget? Does it help?
  • What income will I have?
  • The State Pension
  • Salary-related pension
  • Workplace or personal pension
  • Income from other sources

 

When Can I Afford to Retire?

Really, this differs from person to person. In the past, people in the UK used to work until a specific age set by the State or employer. Today, things are changing. People usually work for as long as they want. The planning for retirement starts relatively early. You may either retire gradually or take up some part-time jobs rather than stopping work altogether. Whatever the case may be, it’s wise to have enough money saved up as your main income would no longer come in. Your retirement can span over one or two decades depending on how long you live.

 

How Long Does Retirement Last?

Retirement phase may easily last upto 30 years based on when you retire and the age at which you’ll pass away. This is a transition stage and requires you to make provisions for it. It’s seen that many underestimate how long they’ll live. As a result, they run out of money before long. If you have a secure income for the rest of your second innings years, there shouldn’t be a problem.

 

How Much Income Would I Need?

When you retire, your income and spending habits will change. That’s natural as the needs of senior citizens are little compared to that of young men and women. You might spend more time at home and on hobbies than before. You could cash in your pension to clear debts, travel the world or indulge in an expensive item. But, be mindful of how much you spend as the goal is to make income last till you till death.

pension planning

What is a Retirement Budget? Does it help?

Like a normal budget, this gives more weight to the expenses you’ll likely face and that need to be paid out of your income. The first step is to draw up a list of the costs of basic necessities like accommodation, food and bills. As you grow older, you’ll likely be spending more time at home. Healthcare costs are likely to go up as your body becomes prone to illnesses. Later, a need may arise for an extra hand around the house or perhaps a full-time helper for care. You should also keep inflation in mind and prepare accordingly.

 

What Income Will I Have?

For most UK citizens, the State Pension is a major source of income in their retirement years. Some also get money from other sources like savings and property. Make sure you have enough secure income before you decide to take the plunge. An income that is ‘secure’ is guaranteed to come monthly. Savings interest may not keep up with inflation and your property may remain vacant, so these aren’t secure incomes. Secure income includes:

  • Your State Pension
  • Promised income from your last employer’s pension scheme
  • Any other guaranteed income for the rest of your life

Remember: Most of your retirement income is taxable (including State Pension).

 

The State Pension

If you wish to work beyond the State Pension age, you can postpone cashing out your State Pension. It increases by 1% for every delay of 9 weeks and just under 5.8% for an entire year. It is inflation-proof and increases to maintain standard of living.

Salary-related pension from your last employer

A few employers offer their employees a defined benefit pension scheme (also known as career average scheme or final salary). You can take out your retirement income earlier or later but the normal age is 65. The more you defer it, the more you’re likely to get.

Workplace or personal pension

You also have the option to build up your own personal pension pot. As per new flexible rules, you can start withdrawing cash from this pot after your 55th birthday. However, if you use up money when you’re still working, you’ll have less to fall back on during retirement years. You could also use the money in this pot to buy a lifetime annuity providing a guaranteed income till you live.

Income from Other Sources

You might have income from alternative sources as well. These vary and there’s no guarantee of their receipts if any.

  • Part-time employment
  • Your own pension pot from which you can draw in small amounts or lump sums
  • Rental income or sales proceeds from property
  • Taking in a lodger or selling some of the equity in your home

 

Read more:
Beginner’s Guide to Investing