How to claim unfair overdraft charges back

A Practical Guide to Overdraft Affordability Complaints and Getting Overdraft Interest Back

Overdrafts are typically meant for short-term borrowing to cover temporary gaps in funds, such as when you’re waiting for your paycheck. However, if your overdraft use has become habitual or the limit was set too high for your financial situation, you might be entitled to challenge the charges and interest, asking for them to be refunded. In this guide, we’ll explain how you can make an affordability complaint to your bank and potentially reclaim overdraft interest.

When Can You Make an Overdraft Affordability Complaint?

You can file an affordability complaint and request a refund of overdraft charges if any of the following apply:

• Your overdraft limit was increased to a level you couldn’t repay: If the bank raised your overdraft limit beyond what you could reasonably afford, making it impossible for you to clear your balance.
• Your overdraft use shows long-term financial distress: This includes situations where you’re consistently in your overdraft or regularly exceed your agreed limit, indicating ongoing financial difficulties.

It's important to note that these complaints do not harm your credit record. Here’s how to make an effective affordability complaint and request a refund.

Understanding Overdraft Affordability Complaints

Overdrafts are intended for short-term financial needs. However, some customers find themselves in long-term financial difficulty due to excessive or repeated use of their overdraft. If your bank did not monitor your usage or failed to intervene when signs of financial distress were clear, you may be entitled to a refund.

Why Overdraft Charges Can Be Unfair

Banks should monitor overdraft use, particularly when it becomes habitual. According to the Lending Code, "hardcore borrowing" occurs when an overdraft is persistently used for over a month without returning to credit. If your overdraft was used in this way and the bank did not offer help or forbearance (such as reducing charges), you may have a case for a complaint.

Case Examples:

1. In a 2020 NatWest case, the Ombudsman ruled that NatWest should have noticed a customer's financial distress due to prolonged overdraft usage and should have stepped in earlier.
2. A 2021 Santander case found that the bank failed to recognize when a customer was relying on overdrafts for daily expenses instead of emergency borrowing, meaning they should have offered better terms.

These decisions show that banks have a responsibility to identify financial distress and offer support when necessary.

Three Main Reasons to Ask for a Refund of Overdraft Charges

1. The bank set your overdraft limit too high:

   • If your overdraft limit was too high for your income or financial situation, especially if it was increased at any point, you may be able to challenge it.
   • Banks should assess affordability and avoid increasing your limit if it seems you’re already struggling to manage.

2. The bank should have seen you were in difficulty:

   • Overdrafts are often used for short-term gaps. If your bank noticed that you were regularly in overdraft or exceeding your limit, they should have intervened by offering a solution, such as reducing charges or adjusting the limit.
   • Regularly using an overdraft month after month is a clear sign of financial difficulty.

3. Long-term use of overdrafts:

   • If your overdraft has been used for months or years, or you have regularly exceeded your limit, this could be considered a sign of financial distress.
   • You may not even need to prove your exact dates of overdraft use to make your case, just the fact that this has been an ongoing issue.

How to Make Your Overdraft Complaint

1. Gather Information

Before you start your complaint, gather any documents that may support your case. While you don’t need specific dates for each overdraft limit increase, it can help if you have:

• Your bank statements showing regular overdraft use.
• Your credit report to show any worsening financial situation, such as missed payments or increasing debts.
• Any correspondence from the bank, such as notices about overdraft increases or fees.

2. Decide Which Reasons Apply to Your Complaint

Identify the specific reason(s) that apply to your case. You may want to focus on whether the bank set your overdraft limit too high or if they should have seen that you were in financial distress. This is key to framing your complaint.

3. Make the Complaint

You can submit your complaint directly through your bank’s website, app, or by email. It’s usually best to avoid phone complaints, as they can be more complicated to track and manage.

Template Complaint Letter

To help you get started, here is a template you can adapt:

Subject: Overdraft Affordability Complaint – [Your Account Number]

Dear [Bank Name],

I am writing to formally raise a complaint regarding my overdraft facility on my account, [Account Number]. I believe that the overdraft charges and interest applied to my account were unfair, and I would like to request a refund of these charges.

[Provide a brief summary of your case, e.g., “I have used my overdraft for a prolonged period, and it has not been possible to bring my account back into credit. Despite this, the bank increased my overdraft limit in [Year], which I believe contributed to my financial distress.”]

Please review my account and provide a resolution. I look forward to hearing from you.

Sincerely,
[Your Name]
[Your Contact Information]

4. Bank Response and Next Steps

• The Bank Wants to Call You: If the bank contacts you to discuss the complaint, be prepared and insist on written communication if you prefer. Keep detailed notes of any phone conversations.
• Rejection or Poor Offer: If the bank rejects your complaint or makes a poor offer, you have the right to escalate the issue to the Financial Ombudsman Service. They can review your case and make a binding decision.

Key Points to Remember

• Personal accounts only: These complaints are for personal accounts, not business accounts.
• Open or Closed Accounts: You can file a complaint whether the account is still open or has been closed.
• Old Accounts: You can also request a refund for overdraft charges on old accounts, even if they were closed years ago.
• Student Overdrafts: If you're a student, specific rules might apply to your overdraft, and you can still make a complaint if the charges became unaffordable.

Does This Work?

Yes, many people have successfully reclaimed overdraft fees and interest by making affordability complaints. If your complaint is well-supported by evidence, especially showing the bank’s failure to recognize your financial distress, you have a good chance of receiving a refund or reduction in charges.

In conclusion, if you believe your overdraft charges were unaffordable or excessive, making an affordability complaint can help you get a refund or some relief. By carefully documenting your situation, choosing the right reasons for your complaint, and following through with your bank or the Ombudsman, you may be able to resolve your overdraft issues fairly.

What if a credit card payment is one day late?

How Late Payments Affect Your Credit Score and How to Avoid Them in the UK

Managing your finances means paying bills on time—whether it’s for your credit card, mortgage, or loans. But if a payment slips through the cracks, it can affect your credit health for months, or even years. Here’s what late payments can mean for you in the UK, along with some actionable tips to help you avoid them.

Understanding the Impact of Late Payments

Even being a few days late on a payment can have long-term consequences on your credit score. In the UK, lenders and credit card providers consider your payment history when evaluating your creditworthiness. A strong history of on-time payments shows reliability, while missed payments signal risk, potentially impacting future loan approvals or credit card limits.

Here are some ways late payments can impact you:

1. Late Fees  

   UK credit card providers typically charge a late fee of around £12 if you miss a payment. While this may seem minor, repeated fees add up, making it essential to stay on top of due dates.  If you are charged a fee, ring them up and ask for the fee back.  This sometimes works.

2. Increased Interest Rates  

   If you have a credit card with a 0% promotional APR, missing a payment can result in the loss of this introductory rate. Your provider could revert your interest to the standard APR, increasing your overall debt.  If this happens, ring them up and ask them to reconsider.

3. Credit Report Implications  

   Late payments can be reported to credit reference agencies like Experian, Equifax, and TransUnion. Once reported, these payments stay on your credit file for up to six years, which can impact your ability to secure future credit.  Stay on top of your credit report.

4. Credit Score Impact 

   Payment history is one of the most significant factors affecting your credit score. Even a single late payment can cause a notable drop in your score, especially if your credit history is short or contains other missed payments.

The Ripple Effect of Late Payments

Late payments can lead to more serious credit issues. If missed payments accumulate, they can snowball into defaults, which are even more harmful to your credit score and can stay on your report for six years. Defaults may also make it challenging to get new lines of credit, and lenders may label you as a high-risk borrower.

What To Do if You’ve Made a Late Payment

If you find yourself behind on payments, acting quickly can reduce the negative impact on your credit score. Here are some steps you can take to manage the situation:

1. Catch Up on Payments Quickly  

   Paying the overdue amount as soon as possible can limit damage to your score. The longer a payment is overdue, the more it can hurt your credit.  Normally there is a small grace period between the due date and the next statement being produced.  So if you payment is late, make it.  Sont leave it to the following month.  If a direct debit bounces, make the payment via your bank as soon as you realise.   Use bank transfers as debit card payments can take an extra day to be processed.

2. Contact Your Credit Provider

   Don’t be afraid to reach out to your lender or credit card provider. Many UK companies offer temporary payment arrangements or may be willing to waive fees if you have a valid reason for missing a payment. If you’re facing financial hardship, they may offer solutions like a payment holiday.

3. Request Removal of Late Payment Markers

   If you have a valid reason for your late payment, such as a bank error, you can ask your lender to remove the mark from your credit history. While there’s no guarantee, especially if the mistake was on your end, it’s worth trying if you have a good track record.

4. Improve Your Payment Habits  

   To rebuild your credit, focus on consistent on-time payments across all accounts. Setting up automatic payments (direct debits) and reminders can help you avoid future missed payments. 

5. Monitor Your Credit Health

   Regularly checking your credit score with free services like Experian, Credit Karma, or ClearScore can give you insights into your financial standing. You can track the factors affecting your score and spot any errors or late payments that may have been reported incorrectly.

Tips to Avoid Future Late Payments

- Set Up Direct Debits: Automatic payments ensure your bills are paid on time, even if you forget the due date.  But dont bounce them.  Some credit card companies will review credit limits if payments bounce.  In these situations, if you cancel the direct debit one day before, and make a payment, it often does not trigger a review.

- Use Budgeting Apps: Tools like Money Dashboard, Yolt, and Emma can track bills and remind you of upcoming payments.

- Review Payment Due Dates: Some providers allow you to choose your payment due dates, which can help align payments with your payday.

- Consider a Credit Builder Card: If your credit score has been impacted by missed payments, a credit builder card can help you rebuild credit by establishing a record of timely payments.

Conclusion

While making a late payment can impact your credit health, being proactive can help minimise the effects. By setting up reminders, exploring direct debits, and regularly checking your credit score, you can improve your financial health and avoid the stress of dealing with credit issues. Stay informed and maintain consistent payment habits to protect your score in the future.

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2024 UK Autumn Budget: What You Need to Know

The 2024 UK Autumn Budget: What You Need to Know

In October 2024, Rachel Reeves, the UK’s first female Chancellor of the Exchequer, delivered the Autumn Budget, marking the Labour Party’s first budget in over 14 years. Reeves presented a series of measures aimed at addressing the UK’s financial stability, improving public services, and boosting investment in key areas like housing, transport, and research.

Let’s break down the key points for consumers.

Why Does This Budget Matter?

This Budget shows the government’s plan for managing money and investing in the future. It's important because decisions on things like taxes, government spending, and public services affect everyone in the UK. Following the Chancellor’s speech, the Office for Budget Responsibility (OBR) released an updated forecast on the country’s economic outlook, helping to predict how these changes might impact the economy.

Key Changes for 2024

1. Increased Spending on Public Services

The government plans to increase its annual spending by about 2% of GDP over the next five years. This additional spending will be split as follows:

   - One-third for long-term investments, like transport, housing, and research.

   - Two-thirds for day-to-day government expenses, such as public services and welfare.

2. How Will This Spending Be Funded?  

   The funding for increased spending will come from:

   - Higher taxes: Mainly through an increase in National Insurance contributions paid by employers and higher capital taxes.

   - Borrowing: The government will also borrow more to cover additional spending.

What’s Changing with Taxes?

Several tax adjustments are coming that could impact businesses and individuals.

   - Employer National Insurance Contributions (NICs):  

     Starting in April 2025, employers will pay a higher NICs rate of 15% (up from 13.8%). Additionally, employers will have to start paying NICs on wages above £5,000 annually, down from the previous £9,100 threshold. While this will be a bigger cost for employers, some relief will be available through the Employment Allowance, which reduces overall NICs for eligible employers.

   - Capital Taxes:  

     Taxes on capital gains will increase starting October 2024. This may affect people selling business assets or property. Also, certain tax reliefs for business sales will see rate increases in 2025 and 2026.

   - Inheritance Tax:  

     Starting in April 2027, unused pension funds transferred after death will be subject to inheritance tax. Changes to how agricultural and business property is taxed at death are also expected.

   - VAT on Private School Fees:  

As part of a campaign promise, Labour has applied VAT to private school fees. Other confirmed measures include an increase in the energy profits levy, a tax on energy companies' profits, and updates to the rules around residency for tax purposes.

Help for Vulnerable Groups and Scandal Victims

The Budget also allocated funds to support victims of past scandals:

   - Post Office Horizon IT Scandal: £1.8 billion over the next three years.

   - Infected Blood Scandal: £11.8 billion over six years to support affected individuals.

Additionally, Carer's Allowance—a payment for people who care for someone with substantial care needs—will see its weekly earnings limit increase from £151 to £196 starting in 2025.

Housing and Fraud Prevention

   - Right to Buy Scheme:  

     The Budget reduces the discount available to tenants who wish to purchase their council homes and allows councils to keep the revenue from these sales. Additionally, £500 million will go to the Affordable Homes Programme for 2025/26.

   - Fraud Prevention:  

     To reduce fraud in the welfare system, more staff will be hired to work on fraud and error prevention in the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC). Extra resources will also be dedicated to monitoring Universal Credit claims and verifying changes to existing claims.

New Rules for Public Spending and Borrowing

To manage its finances responsibly, the government has proposed two new “fiscal rules”:

   - Balancing the Day-to-Day Budget by 2029/30:  

     By 2029, the government aims to balance its “current budget,” which means spending on public services and welfare should be covered by tax revenues rather than borrowing.

    - Reducing Financial Liabilities:  

     By the same year, the government wants to reduce its debt and financial obligations relative to the size of the economy, which would improve the country’s financial stability.

Spending Review: How Government Funding is Being Allocated

As part of the Budget, the Chancellor introduced Phase 1 of a new Spending Review, which sets funding limits for government departments.

   - Day-to-Day Spending:  

     Funding will increase by £33 billion between 2024 and 2025, with healthcare and education seeing the biggest increases.

   - Investment Spending:  

     Government spending on long-term projects will go up by £14.7 billion between 2024 and 2025, supporting areas like infrastructure and research.

What This Means for You

This Budget aims to balance increased spending with higher taxes and controlled borrowing. For individuals and families, changes in National Insurance, capital gains, and inheritance taxes could directly impact household budgets and future planning. Additionally, those benefiting from Carer’s Allowance, council housing programs, or needing help with fraud issues in welfare could see positive changes.

As the government begins to roll out these changes, it's a good time to review your financial plans and consider any adjustments, especially if you’re an employer or have investments that could be impacted by new tax rules.

 The Perils of UK Credit Cards: What You Need to Know

Credit cards can be a convenient tool for managing finances, but they come with significant risks, especially in the UK. Many people find themselves entangled in debt, facing high-interest rates, and navigating the complexities of credit scores. In this post, we’ll explore the potential pitfalls of using credit cards in the UK and offer some tips for managing them responsibly.

1. High-Interest Rates

One of the most significant dangers of credit cards is the high-interest rates that can apply to outstanding balances. In the UK, the average APR for credit cards can range from 18% to 25% or even higher. If you carry a balance month-to-month, the interest can accumulate quickly, leading to debt spirals that are hard to escape.

Tips:

- Always aim to pay your balance in full each month.

- If you can’t pay the full amount, consider transferring your balance to a card with a lower interest rate.

2. The Temptation to Overspend

Credit cards can create a false sense of financial security. It’s easy to swipe your card without considering the repercussions, leading to overspending and accumulating debt. This can be particularly dangerous during sales events or holiday seasons when spending temptations are high.

Tips:

- Set a budget and stick to it.

- Only use your credit card for planned purchases that you can afford to pay off immediately.

3. Impact on Credit Score

Your credit score is essential for securing loans and mortgages, and credit cards can impact this score significantly. Missing payments, maxing out your credit limit, or applying for multiple cards can all lead to a lower credit score, making it harder to secure future credit.

Tips:

- Monitor your credit score regularly.

- Set up alerts for payment due dates to avoid missed payments.

4. Fees and Charges

Many credit cards come with various fees, including annual fees, late payment fees, and foreign transaction fees. These additional costs can add up and lead to financial strain. Understanding the terms and conditions of your credit card is crucial to avoiding unnecessary fees.

Tips:

- Read the fine print before signing up for a card.

- Look for cards with no annual fees or low-interest options.

5. Identity Theft and Fraud

Credit cards can also be vulnerable to fraud and identity theft. Scammers use various tactics to steal credit card information, which can lead to unauthorized charges and long processes to resolve disputes.

Tips:

- Regularly check your statements for suspicious activity.

- Use two-factor authentication when possible for added security.

Conclusion

While credit cards can offer benefits like rewards and convenience, the potential perils are significant. By understanding the risks and implementing responsible practices, you can navigate the world of credit cards more safely. Always remember: financial responsibility is key to avoiding the pitfalls that come with credit card use.

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By staying informed and proactive, you can enjoy the benefits of credit cards without falling into their traps. Happy spending!

Daytime TV and Debt

I was working from home recently and had the television switched on in the background. I don't watch daytime television often, but when I do there is something that really annoys me. Its the adverts for loan consolidation. They often go along the lines of consolidate your loans and agree one simple repayment. The problem is that often people do not see beyond the low payment, they just see that they are paying less each month. So whats the catch if your paying less each month. Well the answer is simple, the reason you are paying less is because the loan is over a longer time period. Often the rate of interest is no better, its often worse. So the end result is that you pay more over the longer term. 

What makes this even more appalling is that the adverts are shown during the day targeting the poorest in society, the unemployed. The other thing to be aware of are the number of Debt companies that offer Debt management. Your in arrears and a debt collection company is writing letters to you. So when you see an offer for debt management, during that period when you are vulnerable and stressed, the attraction of debt management, where someone looks after your debts and deals with your creditors is incredible. 

 Well before you take up this offer, bear in mind they are out to make a profit from you. If you go for the debt management option, you will often have to pay an upfront fee, often a few hundred pounds. The company then deals with your creditors and negotiate a monthly payment plan. You then pay a fixed fee to the debt management company who then process your payment to the lender. Sounds great in principle, but the debt management companies charge monthly fees. So for example, you could arrange to pay the debt company £50 per month. A nice, easy manageable figure, but the debt company may charge a flat fee of around £25 every month. So actually your creditor gets only £25. 

 I have worked as a doorstep collector and have seen loads of cases such as above. One company I came across would open a bank account for you. On the day your money came into the account they took their fee, took money to pay the creditor and left you with the balance. The fee for the bank account was £30 per month. There are ways around this. There are some organisations such as Payplan that will manage your loan for free. They do this because they are funded by the credit industry. They will assign a caseworker who will speak to your creditors and arrange a plan, then you pay Payplan and each month they pay the company. The cost to you is zero. You just pay off the loan. Lastly, I should mention debt collection agencies. These are companies appointed by your creditor to collect the debt. The interesting thing here is that by the time a debt goes to debt collection, the interest is normally frozen. 

So at this point, the debt collection company is looking to clear the debt as quickly as possible. They may offer a quick settlement figure, but for most, quick settlement is not an option, so they will offer an installment plan. Again, every penny goes towards clearing the debt as you are not paying fees. This can work to your advantage, as you are effectively paying off debt at 0% interest. Beware though that a settlement will knock some of the debt off (10 per cent is common) but it wont clear your credit file as the file will be marked as settled and not satisfied. If you are paying through a debt collection agency, you should aim to repay the debt as quickly as possible in order to restore your credit rating. 

 Don't think you can go on paying £5 a month on a £10K loan as your account will be reviewed every year and if your circumstances have improved, they will expect higher repayments. Whilst paying off more of a debt is not a bad thing, you need to ensure the repayments are possible. If you can't the worse thing you can do is say yes to a higher installment figure as you are not going to be able to sustain the higher repayments and will then start falling behind leaving yourself open to possible legal option. Finally, whatever your debt circumstances, there is always a way out. However you must be proactive and keep to any repayment plan. Seek informal advice via the forum that can be found here or consult a qualified debt adviser. Whatever you do, don't ignore letters, take positive action and I dont mean throwing them in a bin. Take on your debts and control them, not let them control you.

#debt #paydayloans

Child Benefit - Extra Cash for Parents

Are you getting the money you should be getting for your children.

If you are in the United Kingdom do you qualify for child benefit?

Any person responsible for bringing up a child can apply for Child Benefit, provided the child is  

 1.     Under 16 

 2.     Or Under 20 if they stay in approved education or training. 

 Child benefit can only be paid to one person per child.   

 This means that two persons can receive child benefit for two children, but two persons cannot claim for the same child. 

 You can't get Child Benefit if your child: 

 1.   Is in hospital or residential care and will be there longer than 12 weeks - unless you're still spending money on the child's needs 

 2.     Is 16 or over, has left full time education or training and works more than 24 hours a week 

 3.    Has been in prison or custody during the last 8 weeks has been looked after by a local authority for the last 8 weeks. 

 4.     Is getting any of the following 

          Income-based Jobseeker's Allowance 

          Universal Credit 

          Tax credits 

          Income Support 

          Employment and Support Allowance 

 5.     Is married or in a civil partnership - unless they're either not living with their partner or their partner is in full-time education or training. 

If your child ceases to attend college, you must notify HMRC straight away.  If you don't it is highly likely that someone else will which could mean that you will be investigated for child benefit fraud. 

You sometimes have to take the lead and contact the department yourself.

The £60,000 threshold

If you earn over £60,000 per year then you may be required to pay back the child benefit.  However if there is a child maintenance case, you need to claim the child benefit.  So you can select the option to be a qualifying case, but opt to not receive any child maintenance.

#HMRC #childbenefit #ukbenefits

Five practical Things You Can Do Today to Help Your Finances if made redundent

 This isnt a quick fix guide.  its a quick ideas list of five things you can do today if you are about to lose your job..  Send me more ideas if you have them!

1    If you pay child maintenance via the Child Maintenance Service, ring them straight away and ask to be put on a zero assessment.  

2   If you need to register for Universal Credit click here.

3.   Look at all your direct debits and see what can be changed.  For example, have you been paying too much money for utilities.  Consider swopping energy provider.

4    Can you pay your credit card early.  Many credit cards calculate interest on a day to day basic.  Therefore if you are unable to pay the card in full, you should try to pay early so that the accruing interest will accrue on a lower balance.

5   Can you swop to a different bank?  A different bank may charge less interest on overdrafts?  It may even offer a switching incentive.   


#unemployed #moneyworries #debt #moneyhelp

 

Brexit and the value of the £

So it finally happened, on 23 June 2016, the United Kingdom voted for Brexit.  As the polling stations closed, the UK Pound surged to hit 1.50 dollars to the £.  This was a 6 month high.  Within 12 hours the UK £ suffered its biggest loss in twenty years after it became clear that the UK had voted for Brexit, the term giving to the UK leaving the European Union.

So is this bad news.  Yes and no.  The fall in the £ is likely to be a short term fall.  Over the next couple of months the £ will gain against the dollar as the US General Election approaches.  The £ should also increase in value as the markets remember how bad the Euro economy is, compared to the UK.

So are large falls bad.  The most recent example of a significant fall in the value of the pound was in 1992, when George Soros broke the Bank of England.  The pound dropped in value by 20 per cent as the UK left European Exchange Rate Mechanism.  This invigorated the economy, and started a period of growth in the next 14 quarters.

So how will this affect the man on the street.

Oil is bought in dollars, so a decrease in stirling values, for more than a few days could filter through to the price of fuel, causing fuel prices to go up slightly.  However this will take about a month to feed through to the petrol stations.

Mortgages are unlikely to be affected, provided the Bank of England allows the £ to float on the markets.  It is possible that they will intervene and raise interest rates, but this would be foolish.  

Jobs in manufacturing could be saved.  The cheaper £ makes exporters more competitive, so if this drop lasts more than a few months, manufacturers will see a boost.

Prices in the shops may go up, but the largest suppliers will have price protection mechanisms agreed with suppliers to ensure that the cost of goods will be fairly consistent.  Also as we go forward, the UK will be able to remove protectionist tariffs that add to the costs of shoppers.  For example, Bananas imported in from non EU countries are charged 114 Euros per tonne.  The UK will be able to remove these charges once it invokes Article 50, which is the formal notice of quitting the EU, and unless extended this becomes automatic after two years.

Going forward, where will we be.  Well Brexit should see a boost to the UK economy and this in term will flow through to the man in the street, who should also see raises in their pay as the National Living Wage comes into affect.  Its exciting, and will probably lead to a significant kick start to the UK economy.

Finally, there is no evidence to expect the UK to go into recession.  Brexit is going to allow the UK to grow its own exports and to trade with the world unfettered by 27 other nations.

Increase your cashflow with free stuff.

I don't know if you have heard about Freecycle.  Freecycle is a website found at http://www.freecycle.org .  Its a really simple idea.  If you have something to throw away, before you do you advertise on your local Freecycle group.  The idea being that someone else may want it, and if they take it, it saves the item going to the tip. Both parties win, as the giver clears space and the receiver gets something for free. Its a really good idea and works well.  Courtesy of the website over the years I have picked up a 24inch Sony television, a stand, a DVD player and even a digital aerial to go with it. Six or seven years ago, a 32 inch television would sale for about £800. Now they are being given away by persons upgrading to plasma screens.  Who would blame them.  A 32inch television can easily weigh 50Kg.  One year we added an extension to our house.  Its amazing what people will collect.  We free cycled the old patio, the old perspex roof of the demolished seventies lean to conservatory that we were disposing of.  Some one even collected the old water butt for use on their allotment. Over the last two years we have regularly given away old baby clothes and toys, the odd pushchair and other assorted items.  We chose to give them away as we wanted people to benefit, and because some of the items we also received through Freecycle.  We didn't want to sell them.  Then last year something happened.  We gave away a pushchair and a new born baby moses basket.  The person we gave them to, emailed us as soon as we offered them, with a story about her friend who had a premature baby.  A few hours later my wife noticed the items were on Ebay.  The buyer was selling the items as hardly used and from a smoke and pet free home.  This is what annoyed us, as we had bought the items on Ebay. The pushchair I had collected from a farm.  We checked the other items that had been sold on Ed onEbaince then the credit crunch has taken hold and Freecycle has become more popular than ever.  Our local Freecycle group has a policy that you can only post one wanted request per month.  It works well, and ensures that your in box is not snowed under for wanted bay. We still give items away on freecycle but nowadays we are choosy.  We only give to people that we have seen posting other items to give away.  If we have received from you, thank you!  Rest assured you are top of the list when we have items to offer.  If you are throwing something away that you feel has no value, why not Freecycle it instead.  Someone somewhere may benefit and it saves a trip to the tip.  Its great for the environment too.

Boost your returns or cut your debt with Peer to Peer

The weekend is the time to review where you are with your plans. This week I am looking at my social lending or peer to peer portfolio, The internet has brought about many changes to our lives. Not least is the fact that you can now do your banking 24 hrs per day via the internet. At the same time you can also get a better savings rate or a loan. Traditionally to get a loan you went to the bank. Now it is possible to get a loan from people in your community, from people you do not know, and without the use of a bank. The concept of social lending via the internet in the UK began with the website ZOPA. Zopa is an accronym for Zone of Possible Agreement. The Zone is a concept that in simple terms, refers to an agreed range of offers at various interest rates and amounts, equal an agreement to lend. Complicated, yes, but do not worry too much about it. Let me explain. Miss Borrower wants to borrow £5000. She uses a social lender. The social lender credit checks and grades Miss Borrower. If ok, she is allowed to advertise that she wants to borrow. The website, does not lend her the money, we do. Her loan is made up of lots of different small loans funded by individuals are able to offer lump sums at different interest rates. As of today there are a number of social lending websites. The largest and most established is ZOPA. If you are looking to borrow money, and do not want to use a bank, look at a social lender as the rates are competitive. If you are looking to invest, look at Ratesetter or ZOPA as they have protection funds in place should a borrower default. If you want to take a look at peer to peer, please use my referral links. Thanks. Ratesetter

It's the Weekend!

Friday night and it is raining.  The UK stockmarket shares I follow are mostly up.  Top gainer today on my board is CEY, Centamin closing at 39 pence.  I have not seen the share at this price for at least three months.  CEY is a gold mining company, and its share price has been kept down by unrest in Egypt.  It's a longer term play, and is currently a negative valuation, but hopefully as Egypt stabilises, it will recover.... Fingers crossed!