Personal Finance

‘A RECOVERY in investment fund sales among retail investors is continuing, with a near 80-per cent surge last month.

Net retail sales were £610 million last month - slightly down on figures for the previous three months but still up 77 per cent on the £345m recorded in October 2004.

Investors were still favouring bonds, with £279m going into this lower-risk asset class and just £123m in equities. The specialist sector was the most popular, accounting for inflows of £148m, while the UK All Companies sector had the biggest outflows, at £105m.’

Read more at Bonds lead way as retail investment fund sales surge

‘Some financial planners are beginning to focus more on helping clients achieve their goals, which often involves more than just amassing piles of money.

Financial planners, who persuaded Americans that they would need more than $1 million to retire and at least $200,000 to send each kid to college, now are telling the world that there’s more to life than money.

They’re even bankrolling a movie and marketing a book to promote what the industry calls a cultural shift. The theme? Money is the least important thing you’ll leave your heirs.’

Read more at The unimportance of money

‘DEBT experts yesterday warned that personal insolvency north of the Border could soar after the Scottish Executive published proposals to slash the bankruptcy period to one year from three.

Insolvency practitioners claimed the number of consumers being declared bankrupt - already at record levels - could surge as much as 30 per cent within a year.

That came after ministers unveiled key bankruptcy reforms, which include cutting the “discharge” period for individuals and small businesses.’

Read more at Bankruptcy reforms ‘will lead to jump in personal insolvency’

‘Imagine opening your credit card statement to find that your low, low rate has more than doubled, even though you’ve always paid your bills on time.

It happens, and it’s happening more and more frequently, says a consumer-watchdog group. Nearly half of banks surveyed by Consumer Action now penalize cardholders for changes in their credit history — changes that can range from a late car payment to a mortgage inquiry — with “universal default rates” of up to 35%.’

Read more at Why your credit card rate just went up

‘A RECORD number of Scots are declaring themselves bankrupt, prompting warnings from finance experts that Scotland’s debt crisis is spiralling out of control.

A total of 1,461 people declared themselves bankrupt north of the Border in the three months until October - up from 1,307 in the previous quarter.

With eight weeks still to go, the number of those declared insolvent so far in 2005 has already outstripped the total for the whole of 2004.’

Read more at Bankruptcy reaches record levels as debt ’spins out of control’

‘ALMOST half of all students believe university has altered their approach to debt, with 40 per cent vowing never to allow themselves to get so far into the red again, a new survey revealed today.

In a study by internet bank Egg, nearly three quarters of students questioned said they thought the amount of debt they had racked up was an inevitable consequence of higher education.

But while six out of ten students said they would use credit cards in the future, 47 per cent said their student debt had fundamentally changed the way they would use credit once they had graduated.’

Read more at Student debts teaching a lesson in credit use

‘PRESSURE has mounted on lenders and the government to tackle problem debt, after new research showed scores of disabled people are being driven into debt just to survive.

The study into disability and debt found that disabled people often face higher costs, but have lower than average incomes, landing them in huge amounts of debt simply to meet basic living costs.

The credit industry, however, was failing to recognise the impact of disability on borrowers, disability charity Leonard Cheshire claimed.’

Read more at Disabled suffering growing levels of problem debt

‘A RADICAL bill to overhaul the savings landscape and encourage low-paid and moderate earners to invest for their future will be unveiled this week by the shadow work and pensions secretary Sir Malcolm Rifkind.

The Conservative MP believes Britain must roll back the barriers which are preventing a quarter of the workforce from tucking away any funds to pay for major life events, accidents or retirement.’

Read more at Plan to force debt-ridden Britons to save

Money Central has a useful article with 19 suggestions on how to Save big on a tiny income - here’s the first few:

‘1. Stash a dollar in a jar every time you do the laundry, says blogger LBL.

2. Save all your $5 bills in a coffee can. (My husband and I do this so we have extra fun money.) Or save all your $20 bills in shoe box (“I saved for a trip to Europe this way,” says Bowers, who earns $1,800 a month working in a cafe.)

3. Cash in your spare change. Many banks and credit unions will sort your change without charging a fee. Or, do it yourself: “We invested in a $30 coin sorter, which has paid for itself three times over,” writes a reader who calls herself darcie1590.’

About.com has a useful post on Ten Ways To Cut Your Homeowner’s Insurance Premiums

‘Consider buying your homeowner’s and auto insurance policies from a company that offers both. Some companies offer discounts of 5 to 15% if you buy both types of coverage from them. Check around and make sure the price is lower than buying the two policies from two different companies before making this move.

Make sure you’re receiving all the discounts for which you’re eligible. For example, discounts exist for smoke detectors, deadbolt locks, security or fire alarm systems, fire extinguishers in the home, etc. If you’re over 55 and retired, you may qualify for an additional 10% discount.’