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 for Your Children?

Who qualifies for Child Benefit in the UK?

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:

• Under 16

• Under 20, if they stay in approved education or training.

But you cannot apply for child benefit once the child hits their 19th birthday.  To receive it up to their 20th birthday, it must be in payment before the 19th birthday.

Can both parents claim Child Benefit for the same child?

Child Benefit can only be paid to one person per child. This means that two people can receive Child Benefit for two different children, but two people cannot claim for the same child.

Who Cannot Claim Child Benefit?

You cannot get Child Benefit if your child:

• Is in hospital or residential care for more than 12 weeks, unless you are still spending money on their needs.

• Is 16 or over, has left full-time education or training, and works more than 24 hours per week.

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

• Is receiving any of the following benefits:

                Income-based Jobseeker’s Allowance

                Universal Credit

Tax Credits

                    Income Support

Employment and Support Allowance

• Is married or in a civil partnership, unless they are 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 immediately. If you fail to do so, someone else may report the change, and you could be investigated for Child Benefit fraud.  At best you will have to repay the child benefit and you may also be prosecuted.

Do I need to repay Child Benefit over £60,000?

If you or your partner earns over £60,000 per year, you may be required to pay back the Child Benefit received. However, if there is a Child Maintenance case, you still need to claim Child Benefit. In this case, you can select the option to be a qualifying case while opting not to receive any Child Maintenance.

Additional Information on Child Benefit Eligibility

Child Benefit is a financial support payment provided by the UK government to parents or guardians responsible for raising a child. Payments are made every four weeks and are not means-tested, meaning most families are eligible regardless of income. However, those earning over £60,000 may be subject to the High Income Child Benefit Charge (HICBC).

Payment Amounts (as of 2024)

• First child: £24.00 per week

• Additional children: £15.90 per week per child

Who Can Apply?

• Biological parents, adoptive parents, and legal guardians

• Grandparents or other relatives (if they are the main carer)

• Foster parents (in some cases)

How to Apply

Applications can be made online via the HMRC website or by submitting a CH2 form via post. Processing can take up to 12 weeks, but payments can be backdated for up to three months.

If you or your partner earns over £60,000 per year, you may need to repay some or all of your Child Benefit through your tax return. The amount repaid increases on a sliding scale:

• £60,000 - £80,000: Partial repayment required

• £80,000+: Full repayment required
  
  Paying into a pension can reduce what you have to pay back.

When to Report Changes

You must inform HMRC if:

• Your child turns 16 and does not continue in education or training.

• Your child moves out of your home.

• Your child starts working more than 24 hours a week.

• Your income exceeds £60,000

What happens if I don’t report changes for Child Benefit?

Failure to report changes can result in overpayments, which may lead to an investigation for Child Benefit fraud.

HMRC Child Benefit contact number

• You can use Relay UK if you cannot hear or speak on the phone, dial 18001 then 0300 200 3100. Find out more on the Relay UK website.

  0300 200 3100

  Outside UK:
  +44 161 210 3086

  Opening times:

  Phone line opening hours are:

  Monday to Friday: 8am to 6pm

  Closed weekends and bank holidays.

Keywords:

• Child Benefit UK

• Child Benefit eligibility

• Child maintenance

• HMRC Child Benefit

• Child Benefit repayment

• High-income Child Benefit charge

• Universal Credit and Child Benefit

• Tax credits and Child Benefit

• Child Benefit rules

Hashtags:

• #ChildBenefitUK

• #ChildSupport

• #HMRC

• #TaxCredits

• #UniversalCredit

• #ParentingUK

• #FinancialSupport

• #ChildMaintenance

• #UKBenefits

Typical Search Terms:

• How to apply for Child Benefit UK

• Child Benefit eligibility rules 2024

• Can both parents claim Child Benefit for the same child?

• Child Benefit and Universal Credit rules

• Child Benefit fraud investigation UK

• Child Benefit for over 16s in education

---

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

CPP Trading Frenzy!

It's all go this morning.  CPP shares have dropped by 25 per cent following their interims.  Volume was over 2 million in the first 45 mins.  I think we are over the worst of it now.  Shares have recovered slightly.  The real surprise today was the initial drop.  Most of the news was expected so I suspect we are going through a panic phase. , I am expecting the shares to recover today, and knowing how volatile this share is, we may even go into positive territory by the end of the week.

Keeping an eye on TCG (Thomas Cook).   Share price up 2.4%.  Shares priced at about 146p.  I first bought these last year at 20p!

Update 2020

Holiday Trading

August in the news media world is often called the silly season, and in the share trading world, volumes of trades are lower and prices can be more volatile.  I'm still on holiday, but I'm never far away from the I Pad, so as normal I am keeping an eye on things.  Tomorrow CPP are announcing their half year results and I am currently holding a lot of shares.

Trading in CPP has been volatile.  A month ago they were priced at less than 5 pence, and they have climbed to 38 pence, before dropping back.  Two weeks ago I bought 5000 shares at 22p and sold at 32p a few days later. However a day later I bought at 33 pence, tried to sale at 36 pence but couldn't get a firm quote.  Big mistake, they dropped down to below 20 pence. I'm hoping that good results will cause CPP to surge allowing me to reduce my positions whilst taking some nice profits.

I'm also keeping an eye on Greka Drilling. GDL.  I've traded GDL on and off since last Autumn.  On one day I bought and sold three times in 2 hours as the share was having a volatile session, making me a few hundred pounds.  Some weeks later I bought 10000 shares and watched the price drop in half, wiping out my profits!  I still have the shares and this week I reinvested and bought just over 3000 shares at about 14p.  I've set them to sell at 18 pence making about £100.  That's a days pay on average, but as the shares are in my Self Invested Pension Plan I can't get the money until I'm 57!

Summer Holidays

Well it's the summer holidays and we are currently away in Cornwall.  We started the week, waking up in The Manor House, near Okehampton.  We spent the weekend there, enjoying every opportunity to have a great time.  The Manor House is an all in one complex where you get three meals a day and a whole package of activities from Art and Crafts to sports as part of the deal.

We left there on Monday to stay at our secret get away place in Cornwall.

Well it may be the holidays, but the markets are open so the week started with a sell of my CPP shares.  I bought some last week, and sold them on Monday to bag about £50 profit.  Not a massive profit but CPP is currently a volatile share.  Then on Tues I bought back at about 22p, and set an automatic trade at 28p.  What a day.  The wife and I went to St Ives, and visited The Tate, St Ives. We were sat in the Tate having lunch and watched the share climb up to just short of 28p and then it fell away to about 22p closing.  Damm, I missed a sale opportunity! However the view from the restaurant was fantastic!

Also topped up on GDL at about 14p, within my SIPP.  Have set these to trade at about 18p.

CPP climbed again on Wednesday, only to fall back ahead of Thursday results. I also noticed ADT dropped from 145p to 117p.  No idea why, but If I had the cash I would have jumped in.  Shame, it recovered 1o pence.  Would have been a nice deal!