Economics Finance

In years gone by bankruptcy carried a stigma with it. That has now gone to a very great extent as tens of thousands of people each year in the UK declare personal bankruptcy.

Strangely for those in financial distress there is a considerable cost to declaring oneself bankrupt. The court fee is £150 and the Official Receivers Deposit is £310. This is a huge amount of money for those who may have little or no income.

That being said, there is a benefit straight away to going bankrupt, because as soon as the order is made, the debts fall away.

Under usual circumstances a bankruptcy order will last only a year. If there has been complicity in losses, then the Official Receiver can make an application to court to extend the time before discharge.

So for the vast majority of people they will go bankrupt, lose their debts and then be discharged a year later.

In the year they are bankrupt, a bankrupt will not be able to apply for credit without getting the approval of their OR. Most people I speak to have no intention of getting credit again, apart from a mortgage.

Also in the year of bankruptcy there is a ban on being a company director or involved in the management of a business. For those interested in maintaining a business this can be achieved by getting a spouse to run the business in their place.

For many the main concern will be their family home. If the bankrupt cannot afford the mortgage payments and there is negative equity in the property, the advice would be to stay in the property until the OR asks you to leave or the property is repossessed. The shortfall on the mortgage is written off in the bankruptcy. For many people this is a very good way to get rid of a large amount of bad debt.

Continue reading ‘Consider the positive aspects of bankruptcy’ »

Savers are beginning to enjoy better rewards again after banks and building societies continue to offer more competitive deals in order to raise money to fund new mortgages and clear previous wholesale borrowing before the financial crisis.

Figures from the financial information firm Moneyfacts have shown that interest rates paid on fixed rate bonds have seen more than a 50% increase since March, despite the Bank of England base rate remaining unchanged at its lowest ever recorded level of 0.5%.

Since March, the average rate paid on 5 year fixed rate bonds has increased from 2.86% to 4.38%, while 4 year bonds have seen a rise from an average of 2.89% to 4.12%.

The last few weeks have brought a number of new fixed rate bonds offering rates of up to ten times higher than the current base rate, some of which are being offered through small and medium-sized building societies.

Barnsley building society is currently offering 5% on its 3 year fixed rate bond available online. Instant access savings accounts are also upping the competition, with Egg increasing its rates to a market-leading 3.25%.

Michelle Slade, spokeswoman for Moneyfacts, said lenders had progressively turned to the retail market in order to raise funds.

“Continuing volatility in the money markets is seeing providers increasingly having to use their savings books towards funding their lending activities. Most fixed rates investments don’t allow early access, as this guarantees the length of time the funds are available to the provider,” she said.

Continue reading ‘Fixed rate bond rates increase to fund mortgage deals’ »

When your payday is yet little far off and small problems surround you all of sudden in the middle of a month then how to get out of the situation? Running away might not help you to rip off the problem but will probably worsen the situation for you. Instead payday loans will definitely help you to come out of the troubles by offering instant cash help without any delay. With timely cash you will be able to fix up the problem instantly without much ado.

The cash amount can be acquired to gratify various important financial needs such as paying off Medicare bills, grocery purchase, buying stationery, sudden travel expense, school fee, minor car repair bills, pending bills and other such small expenses.

These short term loans are instantaneous solution of small monetary requirements and therefore offer small cash. You can borrow anything from $100 to $1000 for a short period of 2 weeks to a month. The funds can be advanced against a post dated cheque easily and on you next payday the funds are deducted from your account electronically.

Continue reading ‘Payday Loans: small financial solution until your payday’ »

People usually invest in the stock market to get good returns. To get maximum profits you need not complicate your investing strategies. Simple yet rational thinking will help you become a successful investor. Although there are a number of mathematical calculations and equations that can guide you with the stock market past and present and determine the value of a particular stock, keep in mind that the ultimate decision has to be taken by you alone. The right attitude and common sense will be your success partners. Read on to find some useful suggestions to help you become a more mature investor.

You cannot expect to make fast money in the stock market. Plan out your objectives and goals and ask yourself why you want to enter into the stock market. Your objectives should be crystal clear and see if you want to be a long term investor, a short term investor, whether you want to invest in mutual funds or whether you are interested in everyday trade. Do not take a plunge into the stock market without enough capital in hand. Invest a bit in property, keep emergency cash and then put your remaining earnings in the stock market. The stock market is quite volatile so do not put all your savings into this market. You will be left devastated in you suffer losses and you do not have enough cash in hand to take you through a bad day.

Continue reading ‘Investing Strategies Unearthed’ »

In today’s fast changing world, purchasing health insurance has become the top priority in ones’ financial planning. More and more people are concerned about health insurance as the medical cost is increasing and it has become unaffordable for many people. As a result, in order to reduce the financial burden on obtaining health insurance, many people start looking for ways to save money on this medical insurance.

One of the most cost-saving ways is to look for catastrophic health coverage. It is the cheapest among all types of health plans which covers major medical and hospital expenses. It is also a high deductible health plan which is ideal for “catastrophic” incidents that would incur extremely high medical fee. Higher deductible can help you to save a lot on monthly premiums.

You can also participate in your employer’s medical insurance plan. In general, most of the employers direct a large volume of businesses to the insurance companies and they generally stand a better position to negotiate more favorable rates on medical coverage. You are able to save more money by joining the employer’s plan if compared with getting individual health policy directly from the insurer.

Continue reading ‘5 Practical Ways to Save Money on Health Insurance’ »