Category Archives: news

More people saving

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More people savingThe number of people saving regularly or occasionally increased in June, compared with May`s figures, according to the latest Nationwide Savings Index release.

77% people were saving either regularly or occasionally, according to the latest figures, while 23% reported saving nothing at all – down from 26% in May.

The figures may reflect an easing of the economic pressure faced by many people – or they may indicate a determination to save as a `safety net` against debt problems in the future.

A debt expert for Think Money said: “Saving is an important of financial planning, helping people prepare for unexpected costs that could otherwise lead them into debt.

“However, if a saver already has existing debts, they may find that the money would be better put towards overpaying those debts, since the interest on debt can grow faster than savings interest. Anyone who is unsure should speak with a professional debt adviser.”

Consumer spending to remain weak despite reduced debt risk

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Consumer spending to remain weak despite reduced debt riskA new report from Alliance Trust has suggested that consumer spending may remain weak in the coming months, despite improving financial situations amongst consumers.

In the second quarter of 2009, Alliance Trust`s Financial Reality Index – an ongoing measure of consumers` financial wellbeing – showed an improvement for the second quarter in a row, taking the Index to its highest level since the first quarter of 2008.

But Shona Dobbie, Head of Alliance Trust Research, warned that although conditions are starting to ease, consumers remain under “significant pressure” and are likely to rein in spending as a result. Continue reading →

Inflation drops further

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According to The Telegraph, `Britain is now deeply in deflationary territory`; inflation has seen its biggest drop since records began in 1948.

In particular, RPI (Retail Prices Index) annual inflation stood at minus 1.6% in June.

A debt expert for Think Money commented: “Although some people may welcome falling prices, it is important to be aware of the implications.

“On a national level, deflation is bad for the economy. When people know that prices are dropping, they`re always tempted to put off spending money until `tomorrow`. This means businesses make less money, and that`s clearly bad for their employees.

“Plus, at a time like now, some people may suffer because their annual pay rise is based on RPI. For people with debts that are continuing to grow, it may become increasingly difficult to stay on top of their finances. We would advise anyone in this situation to contact a professional debt adviser without delay.”

Health Insurance and Health Care Extremes

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There are two sides to every debate, and one major debate currently raging on in this country centers around health care reform. As with most issues, the politics of the debate place people on either side of government support.

Some feel that the government should stay out of our lives as much as possible, others feel that we need the government to regulate and protect us. In the realm of health care, those in favor of government involvement cite the need to be protected from unscrupulous physicians and providers who might engage in all sorts of unethical practices in the name of taking our money.

In many ways, the government is needed to police both the providers as well as the insurance companies to assure that when we pay money to a provider or insurance carrier, they are required to meet their obligations to us by providing a service or paying a claim.

In this, and many other ways, the government is there to ensure our welfare and safety and make sure we are not taken advantage of. However, should there be a limit to this involvement. If the government were to be in complete control of the health insurance industry, would we see too many restrictions, and actually a threat to our welfare?