Category Archives: Payday Loans

4-Must Have Insurance Policies For Your Family Besides Health/Medical Insurance

4-Must Have Insurance Policies For Your Family Besides Health/Medical Insurance

The main aim of insurance is to protect you against risks. There are insurance covers that can protect you from just about any risk you can imagine today. But given the nature of risks, i.e. there are too many risks, it is impossible to cover yourself against all of them. This leads us to a very interesting question; which risks should you consider first?

Eventualities like sickness can unsettle your finances. Many people take emergency loans to cover unexpected medical bills. Short term loans like payday loans can cover a small medical bill. What happens when you or a family member has to undergo an expensive medical procedure? We’ve gone through the trouble of selecting the most important insurance policies below.

Here are the 4-must have insurance policies for your family besides health/medical insurance.

1. Life insurance

Every family should have life insurance coverage for both parents/spouses. Life insurance is crucial for ensuring the family doesn’t suffer financially in case a breadwinner dies. Life insurance is crucial because it covers for funeral expenses, which can be very high. Life insurance also replaces the income of a spouse or parent for a long period allowing the family to go on with life as usual. You should have coverage amounting to at least a year’s salary. If you earn £50,000 for instance, you should have a £500,000 policy or more. The same applies for your spouse/partner. If your partner or spouse doesn’t work and you have children, it is still important to cover them because of their contribution to childcare among other chores which can take a huge portion of the family budget when they are gone. It is also a good idea to cover children as well if their demise will have a significant effect on the family’s finances. There are many types of life insurance covers for families in the UK covering all kinds of risks/expenses. Take your time an pick a cover that works well for your family.

2. Disability insurance

This is another essential insurance policy for your family. Life insurance coverage should come first due to the devastating nature of eventualities like death. Disability is equally devastating. Even though a parent/partner may still be there, disability can render one jobless as well as drain the family’s budget in regards to healthcare costs. Disability insurance policies protect from loss of income among other related expenses arising. This type of cover may be more important than life insurance to some people since it can render a person jobless for life and introduce costly expenditures till death. Some people overlook disability covers because of the mere fact that they are healthy and disability looks farfetched. The most important thing to note is anyone can become disabled in an instance i.e. in case of a car accident.

3. Homeowners insurance

A home is a priceless family possession. As a parent, you don’t want your family to be rendered homeless by any eventuality whether it is natural and manmade. A fire can destroy your home. Your home can also be destroyed by harsh weather, an earthquake, etc. Homeowners insurance covers the cost of replacing the structure as well as contents. Homeowner covers can also cater for the cost of buying a new home in case your current one is destroyed completely. Other related costs included in homeowner covers include the cost of living elsewhere while your home is being repaired. It is important to have coverage for such costs since they are significant and can easily plunge your family into financial problems. Although the chances of your home being destroyed are very slim, this eventuality can force you to take loans and living in distress. A homeowner’s cover allows you to live in peace knowing you won’t lose your home in case of anything. There are many types of homeowner’s covers available today that cover anything you can think of including the cost of upgrades, special features and injuries that may occur on your property. Consider getting such a cover. If you are renting, you should take renters insurance instead.

4. Identity theft insurance

In this current era where everything revolves around technology and the internet, it is important to protect yourself against identity theft. This kind of coverage may seem unnecessary but take some time and think of the consequences of identity theft. If you take payday loans, use credit cards or have a genuine online presence of any sort, you are at risk. Someone can steal your identity online and use your name to orchestrate crimes. You need money to protect yourself against losses arising from such eventualities. An identity theft policy can also cover legal fees involved when restoring your name. We are all at risk of identity theft today provided we use computers, Smartphones and online products/services. Payday loan giant Wonga suffered a significant customer data breach in April 2017. The incident saw the personal details of 270,000+ customers stolen including bank account details. Any victim with identity theft insurance would have been covered in such an instance. Get the above insurance covers first before considering any others. Motor insurance is equally important although it is mandatory in the UK and most, if not all countries in the world.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

No. of UK Pensioners Seeking Payday Loans Has Risen by 200% in 2 Years

No. of UK Pensioners Seeking Payday Loans Has Risen by 200% in 2 Years

According to the latest statistics from payday loan company CashLady, 1.4 million Britons have joined the poorest 10% in Britain. The new shocking figures indicate a 95.2% increase (since 2015) in the number of Britons aged 65 years and above relying on loans to boost their monthly pension.

Hard-up pensioners have increased their borrowing by £157 (from; £1,478 to £1,635). The latest statistics show that this age group is now borrowing approximately £400 in payday loans (now dubbed Grey Day Loans) monthly to survive.

For the first time in Britain, charities have warned of the disproportionate number of seniors seeking financial aid for subsistence purposes. A record 1.4 million pensioners have joined the poorest 10% in Britain. Only 1 million pensioners were part of this statistic in 2015.

The statistics indicate a 26% rise in the number of loans requested despite a 10% increase in monthly income for pensioners. This shows that the average pensioner is struggling to cope with the increasing cost of living. In just two years (2015 to 2017), the average loan amount requested has risen from £302 to £382.

According to the MD of CashLady Chris Hackett, the figures show there is an increasing number of seniors struggling to get by solely on their pension. According to Hackett, inflation levels are primarily to blame. Inflation has reached a historic high. Although pensions have increased, there is still a growing shortfall between the cost of living and pension income.

Personal Finance Society statistics

This new data follows a recent report released by the Personal Finance Society showing that the poorest pensioners receive 75% of their pension income from the state pension. The Personal Finance Society report shows that millions of seniors in Britain are about to become entirely reliant on the £7,000 per year basic state pension for survival. Numerous charities have come forward urging the UK government to do more to support the elderly who are struggling.

Charities’ take

According to Caroline Abrahams, Age UK Charity Director, the UK is at risk of assuming all elderly persons are living comfortably when that isn’t the case. The recent pensioner poverty statistics clearly show that elderly pensioners are at risk once again.

According to Abrahams, surviving in Britain on a low income/wages is hard enough for individuals in any age bracket but extremely stressful for older persons, especially those living on their own and struggling buy food and pay utility bills.

Abrahams believes the State Pension is more important now, more than ever as a tool for fighting against pensioner poverty. She is however of the thought that there is more help for those in dire need. For instance, elderly pensioners can claim benefits they are entitled to. This can make a great difference according to Abrahams given the fact that a record £3.8 billion in benefits goes unclaimed by elderly people every year in Britain. Before seeking alternative income such as taking out payday loans to pay for utility bills or buy essential goods and services, elderly pensioners are advised to exhaust their cash benefits.

Age UK is one of UK’s top charities which helps elderly pensioners get unclaimed benefits. Before pensioners become so desperate to the extent of seeking help to pay for essentials and insolvency costs, they should consider contacting charities like Age UK.

Turn2Us is another charity that offers similar help. The national organisation helps the needy/poor access charitable grants and welfare benefits among other types of financial help. A statement from Turn2Us shows that there is an increasing number of female pensioners seeking Turn2Us’ help.

Many pensioners in the UK don’t get the government assistance they are entitled to like Winter Fuel Payment and Pension Credit. This is because many people have been able to live all their lives without needing these benefits before so they only naturally consider credit which is readily available whenever they need help.

In an interview with The Mirror, Pritie Billimoria, Head of Communications at Turn2Us stated that; most people who have been comfortable most of their lives risk being financially week after retirement. According to Billimoria, struggling financially when you are older can be very distressing which is why elderly pensioners need all the support they are entitled to.

Age UK offers FREE financial advice and help to elderly persons with financial problems. Contact 0800 169 6565. Website: www.ageuk.org.uk.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Payday Loan Company Rapped by Advertising Watchdog

Payday Loan Company ”Rapped” by Advertising Watchdog

Payday loan company Allay Claims Ltd which operates as CheckMyPaydayLoan.com was just recently reprimanded by the ASA (Advertising Standards Authority) for launching a radio advertisement that exaggerated the speed and ease of claiming with the company.

Allay Claims Ltd had previously contested the complaint, but the ASA declined their request and warned them against using the advertisement in its current form. The advertising watchdog upheld the complaint stating that the ad was indeed misleading.

The CheckMyPaydayLoan.com ad made repeated claims on how simple it was for customers to claim compensation after facing difficulties when making payday loan repayments. The ad stated that Check My Payday Loan offers claims which are hassle-free, with no obligation checks.

The ad went further to state that customers just need to have grounds for a case; the company will do the rest. Customers simply needed to text claims and let CheckMyPaydayLoan.com handle the matter. What’s more; the ad created a sense of urgency by including the words; ”what are you waiting for?”

Complaint

Advertising watchdog ASA received a complaint when a complainant discovered there were more requirements for launching a claim i.e., providing bank statements among other similar/supporting documentation.

In defense, CheckMyPaydayLoan.com’s broadcaster (acting on behalf of the lender) responded by stating that the additional information would be supplied to claimants after they sent a text. The broadcaster defended the ad by saying it clearly stated that a claimant must meet a specific criteria before their case was taken forward. The simple task of sending a text was meant to assess a claimant’s ground for launching a claim.

According to the adjudication, the ASA stated that most borrowers don’t know the process of launching claims for compensation against payday loan or short term loan lenders. The adjudication went further to state that it was accurate to conclude that people wouldn’t expect to do anything more after launching a claim via text given the ad’s wording. This decision was reached after considering CheckMyPaydayLoan.com’s defense of not stating the seemingly ”obvious”. According to the ASA, CheckMyPaydayLoan.com was found guilty of exaggerating the speed and ease of launching claims with them.

Main reasons behind the verdict

According to the ASA, the ad was deemed misleading because the process required claimants to offer more information than expected before a claim would be processed which was contrary to the ad claims of simply sending a text and letting CheckMyPaydayLoan.com handle the rest. According to the advertising watchdog, the ad didn’t create an accurate expectation of the entire claimant process i.e., on the need for more detailed examinations of bank statements and loan agreements of the claimant as well as a claimant’s correspondence with lenders.

Typical clams must follow a process requiring a claimant to offer more information. For a claim to be successful, a lender must also be found to have lent irresponsibly based on a claimant’s financial circumstances. Such a process requires a thorough examination of a claimant’s loan agreements, bank statements, and correspondence with their lender. The process can’t, therefore, be fast and easy according to the ASA which is why the watchdog declared the ad, misleading.

Recommendations

The ad can’t be broadcast in its original form again. According to the ASA, CheckMyPaydayLoan.com must make sure future ads don’t misleadingly exaggerate the speed and ease of processing claims with them.

In an effort to manage the situation, Allay Claims Ltd’s Director, Andie Stokoe, claimed that the radio ad was made by Capital and cleared to air by Radiocentre. He went on to state that Allay works extremely hard to ensure accurate communication between the company and its customers. In addition, Stokoe expressed his disappointment on the ASA ruling but promised to champion consumer rights address the concerns raised.

Lessons

As a payday loan borrower, the above case highlights the importance of borrowing from reputable payday loan companies which offer accurate

information. Although the best payday lenders offer fast and reliable services, they offer full disclosure on everything including; fees and procedures. You should avoid lenders that make offers which are too good to be true. Also, pay attention to the legitimacy of a lender before choosing them. All reputable payday loan companies have an FCA authorisation number. You should also consider online reviews. Reputable lenders offer exemplary services which attract numerous positive reviews.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

4-Must Have Insurance Policies For Your Family Besides Health Insurance

4-Must Have Insurance Policies For Your Family Besides Health Insurance

The main aim of insurance is to protect you against risks. There are insurance covers that can protect you from just about any risk you can imagine today. But given the nature of risks, i.e. there are too many risks, it is impossible to cover yourself against all of them.

This leads us to a very interesting question; which risks should you consider first?

Eventualities like sickness can unsettle your finances. Many people take emergency loans to cover unexpected medical bills not covered under the NHS. Short term loans like payday loans can cover a small medical bill. What happens when you or a family member has to undergo an expensive medical procedure?

We’ve gone through the trouble of selecting the most important insurance policies below. Here are the 4-must have insurance policies for your family besides health/medical insurance.

1. Life Insurance

Every family should have life insurance coverage for both parents/spouses. Life insurance is crucial for ensuring the family doesn’t suffer financially in case a breadwinner dies. Life insurance is crucial because it covers for funeral expenses, which can be very high. Life insurance also replaces the income of a spouse or parent for a long period allowing the family to go on with life as usual. You should have coverage amounting to at least a year’s salary. If you earn £50,000 for instance, you should have a £500,000 policy or more. The same applies for your spouse/partner. If your partner or spouse doesn’t work and you have children, it is still important to cover them because of their contribution to childcare among other chores which can take a huge portion of the family budget when they are gone. It is also a good idea to cover children as well if their demise will have a significant effect on the family’s finances. There are many types of life insurance covers for families in the UK covering all kinds of risks/expenses. Take your time an pick a cover that works well for your family.

2. Disability Insurance

This is another essential insurance policy for your family. Life insurance coverage should come first due to the devastating nature of eventualities like death. Disability is equally devastating. Even though a parent/partner may still be there, disability can render one jobless as well as drain the family’s budget in regards to healthcare costs. Disability insurance policies protect from loss of income among other related expenses arising. This type of cover may be more important than life insurance to some people since it can render a person jobless for life and introduce costly expenditures till death. Some people overlook disability covers because of the mere fact that they are healthy and disability looks farfetched. The most important thing to note is anyone can become disabled in an instance i.e. in case of a car accident.

3. Home Insurance

A home is a priceless family possession. As a parent, you don’t want your family to be rendered homeless by any eventuality whether it is natural and manmade. A fire can destroy your home. Your home can also be destroyed by harsh weather, an earthquake, etc. Homeowners insurance covers the cost of replacing the structure as well as contents. Homeowner covers can also cater for the cost of buying a new home in case your current one is destroyed completely. Other related costs included in homeowner covers include the cost of living elsewhere while your home is being repaired. It is important to have coverage for such costs since they are significant and can easily plunge your family into financial problems. Although the chances of your home being destroyed are very slim, this eventuality can force you to take loans and living in distress. A homeowner’s cover allows you to live in peace knowing you won’t lose your home in case of anything. There are many types of homeowner’s covers available today that cover anything you can think of including the cost of upgrades, special features and injuries that may occur on your property. Consider getting such a cover. If you are renting, you should take renters insurance instead.

4. Identity Theft Insurance

In this current era where everything revolves around technology and the internet, it is important to protect yourself against identity theft. This kind of coverage may seem unnecessary but take some time and think of the consequences of identity theft. If you take payday loans, use credit cards or have a genuine online presence of any sort, you are at risk. Someone can steal your identity online and use your name to orchestrate crimes. You need money to protect yourself against losses arising from such eventualities. An identity theft policy can also cover legal fees involved when restoring your name. We are all at risk of identity theft today provided we use computers, Smartphones and online products/services. Payday loan giant Wonga suffered a significant customer data breach in April 2017. The incident saw the personal details of 270,000+ customers stolen including bank account details. Any victim with identity theft insurance would have been covered in such an instance. Get the above insurance covers first before considering any others. Motor insurance is equally important although it is mandatory in the UK and most, if not all countries in the world.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Tired of Short Term Loans? Tax Incentives You Could Be Missing Out in The UK

Tired of Short Term Loans? Tax Incentives You Could Be Missing Out in The UK

Tax breaks can provide you with a few hundred pounds every year which is adequate for catering to emergency cash needs. To avoid taking short-term loans such as payday loans, you can turn your attention to the tax incentives you could be missing out now. Besides avoiding short-term loans, tax incentives can help you build your savings account. Many tax incentives are being left on the table by Britons. Here are some of them.

1. Marriage allowance

The latest government statistics show that over 2 million married couples in Britain miss out on a £600 each (£1200) yearly marriage tax break. The total unclaimed marriage tax breaks amount to approximately £1.3 billion according to a recent freedom of information request submitted to the UK government requesting information on the tax break. Britain has approximately 4.2 million married couples and 15,000 civil unions eligible for the tax incentive. However, only 1.8 million married couples have claimed.

The incentive dates back to 2005 and couples are allowed to back-claim £632.To claim this incentive, you need to be in a civil union or marriage. Cohabiting partners aren’t eligible. You also need to be a taxpayer. However, spouses who aren’t taxpayers but are married to individuals who pay tax are still illegible to the incentive. To benefit, the lower earner must earn £11,500 or less. The tax is still applicable to individuals receiving a pension as well as those living abroad provided they are getting a personal allowance.

2. Childcare costs tax credit

You may also be missing out on working tax credit which is a tax incentive that helps with childcare costs. Working Tax Credit takes care of partial costs of childcare. You may be eligible for an additional £122.50 tax break every week for a single child or an extra £210 every week if you have two or more children. To qualify for childcare tax incentives, your kid must be minded by an approved childcare provider. Visit https://www.gov.uk/help-with-childcare-costs to get more information on tax incentives relating to childcare costs in the UK.

3. Travel incentives for employees

The UK government also gives travel tax incentives to employees whose work requires traveling which disrupts the normal daily routine. Please, note this tax is not given for normal daily commutes. The incentive considers travel expenses like toll charges, parking fees, business call costs, airfare, mileage, taxi, bus and/or railway transport costs. If your work requires you to travel and make overnight stays, you may also be eligible for this tax incentive on accommodation expenses like food and drinks. Claiming this tax incentive is easy. You need to file a self-assessment tax return online or via post (print and post form P87). You can also claim by phone if you have claimed successfully before. You can get more information about this tax incentive here: https://www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses.

4. Food-related tax incentives

You can also claim some tax relief for food costs incurred outside your routine/pattern. Please note this tax isn’t applicable to food costs incurred when taking clients out for lunch. A person who works from home can, however, claim food costs incurred when attending a work conference. This tax applies to reasonable expenses. For instance, you can’t claim tax breaks on food expenses related to expensive wine. Visit: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim37670 for more information.

5. Research and development tax credits

You could also be eligible for R&D tax credits if you are a business owner. This tax incentive has been in place in the UK for years. The government put this tax incentive in place to encourage companies to spend on research and development which is considered crucial for economic growth. The incentive was also put in place to encourage investment in innovation. Currently, over 170,000 research and development claims have been submitted in the UK since 2001 according to HMRC’s Tax credit statistics. Over £16.5 billion has been claimed already as tax relief. Small business owners are claiming this tax more and more every year. In 2015-2016 for instance, SME claims increased by 22% compared to year 2014-2015 (from 17,875 to 21,856).

If you own an SME, you have an opportunity to get some tax breaks. R&D tax applies to SMEs with less than 500 employees and a turnover not exceeding 100 million. The relief is extended to research and development initiatives like software development, combining existing technologies, ownership patents as well as employment of software engineers, scientist or developers. SummaryYou probably leave a lot of money on the table in the form of unclaimed tax incentives. The information above can help you save hundreds and sometimes more than a thousand pounds every year in the form of tax breaks. You can then channel this money into your savings or emergency account to avoid over-reliance on emergency loans like payday loans.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

UK Payday Loan Lenders Offering Customers up To £1,000 for Referrals

UK Payday Loan Lenders Offering Customers up To £1,000 for Referrals

Payday loan companies like BrightHouse and Amigo Loans among many others are in the spotlight for offering their customers monetary incentives for recommendations. As the rules and regulations surrounding marketing payday loans tighten, some payday loan companies in the UK are resulting to using what many may consider to be unethical marketing practices.

The latest consumer watchdog reports show that some payday loan companies are offering their customers up to £1,000 if they successfully convince their friends and family members to take high-interest loans. Lenders such as BrightHouse are on the spot for offering £220 to customers who introduce their family members and friends successfully. Consumer watchdogs have termed this incentive ”cynical”. Amigo customers are earning up to £1,000 for making their friends and family members take out £10,000 loans which attract a 50% annual interest rate. BrightHouse which is a popular rent-to-own retailer is offering £220 to customers who convince their friends to take out loans attracting interest rates up to 99.9%.

There are many other lenders guilty of this seemingly unethical practice. Doorstep lender Provident is also paying its customers £30 for referral loans amounting to £100 or more at 535% interest. Loan At Home hasn’t been left behind. The lender is offering £20 or more to customers who promote loans attracting a 433% interest. What’s interesting is; the lenders see nothing wrong with their incentives. When contacted, Loan At Home claims they are happy to offer a ”small” reward to customers who promote them. BrightHouse claims its actions are common among retailers. Amigo is on record insisting their marketing strategy targets a small percentage of loans. Consumer watchdogs are of a contrary opinion. According to Marc Gander, a Consumer Action Group Administrator and Adviser, ”the schemes are bound to attract many people.” Martyn James from resolver.co.uk shares similar sentiments. James sees serious ethics concerns about the payday loan marketing schemes. His sentiments have been repeated by many other consumer watchdogs as well as individuals who are concerned about increasing debt levels in the UK. According to the latest Bank of England statistics, UK households have accumulated unsecured debt amounting to £204billion.

When should you take out a payday loan?

The recent developments have brought into question the circumstances that warrant taking a loan. Although unethical, these schemes may very well be legal exposing many vulnerable borrowers to debt problems. So, how should you protect yourself? The first most important step is understanding when you are supposed to take out a payday loan or any other loan. Never take a loan just because it is available. You need a better reason! For instance, payday loans should be taken by people who have emergency cash needs. If your car has broken down mid-month and you don’t have money for repairs, you can take out a payday loan. Payday loans can also cater for emergency medical expenses among other unexpected monthly expenses as you wait for your salary. If you don’t have any pressing emergency cash need, don’t take out a loan even if it is available to you instantly.

Short term loans spanning for a few months to one year should be taken for reasons such as starting a business. There is a general rule that states you should never use loans to acquire liabilities. A car is a liability if you don’t use it to earn you money. Clothes, shoes, electronics, and furniture are also liabilities in this regard because they don’t earn you any money and they lose value with time. It’s also important to take out loans from responsible lenders only. Responsible short term loan lenders in the UK don’t use unethical loan promotional techniques to lure innocent borrowers into debt. They care about their customers as much as they care about profits.

Reputable payday loan lenders in the UK are registered by the FCA. You can search the FCA’s register (https://register.fca.org.uk/) to ascertain the firm you are dealing with is authorised. Furthermore, authorised firms don’t charge exorbitant fees. It is worth noting the FCA has regulated payday loans tightly in the UK due to past incidences of borrower exploitation. The regulator is in the process of extending its reach to other types of loans. Before there is adequate regulation on all types of loans available in the UK, it is important for borrowers to seek loans for the right reasons and stick to borrowing from reputable lenders and brokers like SwiftMoney.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Consumer Finance Up 3% in September 2017

Consumer Finance Up 3% in September 2017

The latest on consumer finance in the UK According to the latest figures by the FLA (Finance & Leasing Association), consumer finance growth is up by 3 percent in September 2017 compared to the same period last year. Q3 2017 has seen a new business growth of 6% compared to Q3 2016.In September 2017, new business generated by credit cards and personal loans grew by 3% compared to September 2016. Online credit and retail store new business increased by 6% over the same period. Second charge mortgage value (new business) also grew at a similar pace in September 2017. However, new business volumes dropped by 2 percent over the same period.

According to Geraldine Kilkelly, Chief Economist and Head of Research at the FLA, new consumer credit is expected to increase by 3.3% in 2017, a significant drop from the 6.3% growth in 2016. This forecast comes in the wake of subdued consumer confidence and the slowest business growth since April. Consumer confidenceAccording to the most recent Lloyds Bank spending power report, consumer confidence is at the lowest level in 2.5 years (since April 2015). Consumer confidence is a measure of how consumers feel about their current as well as the future state of their finances and economic conditions as a whole.

In the IPSOS MORI monthly survey involving 2000+ UK bank account holders, 61% felt positive about their finances in October, a 3pp drop from 64% the previous month. Consumer confidence is a vital consumer finance metric. The measure is at its lowest level in 30 months. Statistics indicate that there is a huge gap between different age groups. Majority (78%) of individuals over 65 years old are positive about their financial situation compared to 60% of individuals between ages 18 and 24 years and 61% of individuals aged between ages 25 and 34 years. The latest statistics also show that women are less positive than men in regards to consumer confidence, i.e., 58% against 64%. Although we are approaching the festive season which is characterised by overly positive consumer finance metrics (increased borrowing and spending), 38% of individuals in the Ipsos MORI survey are worried about personal spending during Christmas. 13% of individuals in the survey are planning to cut back on typical spending to cater for festive spending.

The number of UK households with comfortable financial situations dropped in October 2017 by two percentage points to 60%. The situation is worse among households with children aged 18 and below. Lloyds Bank customer account data analysis shows that people are spending more on essentials. The latest statistics show a 2% growth in essential consumer spending in October. This represents a 17-month consecutive growth in essential spending with food accounting for approximately 40% of all essential spending.

Fuel spending is also significant according to the Lloyds Bank data analysis with an increase of approximately 5% which represents a 14-month continuous growth. Electricity and gas spending increased by 2.5% from 1% last month. Energy spending has been rising for the 3rd consecutive month after enjoying a continuous decline for three years. According to Robin Bulloch, Lloyds Bank Managing Director, although most people are positive about their finances, there was a significant drop in overall consumer confidence in September 2017. Bulloch attributes the drop to factors like inflation. Since inflation is at a 5-year high, Bulloch states that consumers, more so millennials, have begun to feel the pinch more than everyone else. He doesn’t find it surprising that the UK government reached out more to millennials in this week’s budget. As inflation rises and wages stagnate, UK consumers are being forced to rely on loans. This explains why there are more and more people taking out payday loans, credit cards and other forms of short term loans today. Consumer finance growth isn’t necessarily a good thing if consumer confidence remains low especially among the population that is supposed to drive the economy forward.

Although the budget has some interesting perks that will see minimum wage workers earn more and households save more in taxes, critics argue that the budget perks don’t mean much when you consider inflation. As the cost of essential increases, it is advisable to spend wisely during this festive season. You should stick to affordable goods during this season to avoid starting 2018 in debt. Avoid loans at all cost except for emergencies. Managing your finances is critical during this period since loans are easily accessible now more than ever before and we are approaching a time of the year characterized by overspending.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Shocking Number of Nurses Taking Out Payday Loans 2017

Shocking Number of Nurses Taking Out Payday Loans 2017

Payday loans for nursesMore than 1 in 20 NHS nurses are being forced to take payday loans to cater for everyday expenses. This is according to a new poll by the RCN. The recent Royal College of Nursing workforce poll revealed that 6% of nurses in the past year had been forced to rely on high-interest loans to meet daily expenses. 40% of the nurses questioned admitted to losing sleep over financial worries while 25% admitted to having borrowed money from their bank, family members or friends to meet regular monthly expenses.

What’s more is 23% admitted to having taken on another job just to cover typical bills/expenses. The survey which involved 7,720 nurses across the UK also showed that a record 50% of NHS nurses rely on overtime to meet their monthly bills. There’s more! 56% have been forced to make drastic financial decisions such as cutting back on travel and food expenses. 20% struggle to pay electricity and gas bills while 11% have been late meeting rental or mortgage payments at least once in the past year. Some nurses (2.3%) have also been forced to rely on food banks or charities to survive.

The RCN survey also indicated that 37% of nurses are seeking new employment opportunities which is a 24% rise compared to the same period a decade ago. What’s more interesting is majority of nurses looking for new jobs are searching for employment outside the NHS. 14% admitted to looking for employment opportunities abroad. The RCN survey shows that 70% of nurses feel worse off financially today than they were five years ago. The NHS employs 80% of the nurses in the survey. The current predicament is attributed to the NHS failure to meet its financial obligations as an employer. The RCN found it disturbing that the NHS is losing nurses because it is unable to pay wages promptly. Some nurses have gone as far as considering a total change in career.

Many nurses are ready to take on early retirement and find new jobs outside the industry. Some nurses are even discouraging new entrants in the industry despite being so passionate about nursing. The poll which was released before this week’s budget implored Philip Hammond to tackle issues surrounding public sector pay. According to Janet Davies, the RCN C.E.O and general secretary, these shocking findings show the amount of financial pressure faced by nursing staff in the UK today. Davies finds it ludicrous that the UK health service industry is losing highly-trained staff because the sector can’t be able to pay monthly bills on time. She goes further to state that the NHS may have managed to make savings, however; this has come at the expense of their staff.

The NHS is guilty of reducing remuneration for nurses every single year in real terms which explains why the health service sector has a shortage of 40,000 nurses currently in England alone. According to Janet Davis, the budget needed to give a clear way forward on wages for public servants. Hammond’s budget brings hope to UK workers including disgruntled nurses. In his budget reading on Wednesday 22nd November 2017, Hammond stated that the income inequality level in the UK is at its lowest in three decades. The poorest individuals have enjoyed faster income growth since 2010 compared to the richest . The percentage of full-time low-paying jobs has also decreased drastically.

According to Hammond, Britain’s conservative government is delivering a fairer country. Hammond has gone ahead and increased income tax personal allowance. The new limit (£11,850 per person) takes effect in April 2018. According to Hammond, this increase will mean typical basic rate taxpayers stand to save £1,075 yearly compared to 2010. Full-time workers who are on a national wage will enjoy an extra £3,800+ every year. The Chancellor has also increased higher rate tax threshold from £45,001 to £46,350 allowing people to earn much more before they are required to pay more tax. Most importantly, the Chancellor has raised the national living wage to £7.83 from £7.50. The raise which takes effect in April 2018 is expected to give full-time workers a £600 pay hike.

Many find Hammond’s budget a win-win for everyone although the wealthiest are expected to pay more income tax. Some critics, however, argue that the new budget doesn’t do much to help those in desperate need. According to critics, the budget incentives are mere inflation adjustments that don’t do much to solve the wage stagnation problem facing the UK in the past decade. As long as wages continue to fall behind the spiraling cost of living, nurses and many other workers in the UK will continue to depend on payday loans among other types of short term loans to get by. The average salary of a registered nurse in the UK stands at £23,319 according to the latest statistics. If the salary was to be adjusted in line with inflation, (by 14%, since the 2011 pay freeze), it should be £26,584 which is £3,265 more.

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