PPI Claiming Probably Would Not End in 2014

According to experts and observers, PPI claiming will probably not end in 2014. With Lloyds adding £750 million more to their PPI refund pool along with HSBC and RBS, the £12 billion PPI redress bill could probably reach more than £20 billion the following year. 

The Financial Ombudsman’s figures show that it had received an increasing number of complaints every quarter. In 2012, it had received a total of 245,000 PPI complaints. Halfway in 2013, it received a tot al of 265,000 PPI complaints. According to the Financial Ombudsman, the trend is that the number of PPI complaints is increasing greatly and consecutively every year.

PPI is an insurance product designed to repay your loans or mortgage when you get sick or get unemployed. However, with the intent to increase work volume for higher incentives, bank employees sold the insurance policy to ineligible consumers. For more information on claiming your PPI refund visit the link.

However, Barclays is one of the first few banks who declared no additional PPI redresses after its third quarter financial results announcement. This confidence in the falling of PPI complaints is evident as it plans to close down its Glasgow PPI claims centre.

Observers said that PPI might not end in 2014 along with numerous other financial mishaps banks and financial companies are involved in the Libor and Euribor scandals.

How to Look for a Promising Business Investment

Whether retired or still employed, your career is not the end of your road to financial independence. Passive income makes the greatest part of your wealth and finding the best places to do this is the key. Business and investing are the best ways to reach your financial goals and you could start with promising smaller businesses.

1.    Solution

A long-term business needs more than perseverance and diligence. Its purpose to exist is to become a solution or fulfil a gap in the current market. Look out for any business that fulfils a gap in a given area. For example, a leather shoe repair company near corporate offices fulfils a market gap and will ensure long term business.

2.    Innovation

Uniqueness is also the key of a long-term business. Innovation could usually spark a new function or need for people. Uniqueness only fills a gap in the “perks” area for most consumers. Uniqueness and innovation differs in many ways. For example, you could consider a singing cook or waiter a unique kind of service, while a restaurant that dishes up a new form of fusion cooking is an innovation. Both will promise good ROI, but make sure it is a solution to a need first.

3.    Keeps Up With Competition

Other businesses could step up and try to fill in the industry and competition could be tight. If you’re investing in a business that already has high competition at play, it would be best to invest in the business that keeps up with the competition and constantly throws risky ideas from time to time. Risk could have investors lose money, but kept in check and effectively constructed, risky ideas could open up new opportunities for earning.

Avoiding Common Investor Problems

Even if an investor is just new or already experienced in the stock market, they must never forget the common problems an investor could have.

1.    Investing in Something Confusing

If you do not understand how a business will return your investment and maintain its altitude in the industry, then do not invest in it. Confusion is the last thing you need when you invest in a business. If all your investments become confusing, you could end up having trouble in the long run.

2.    Attachment

As much as possible, avoid being attached to a business, its proprietors, its idea and its employees. When you fall in love with a business, you will not make good decisions especially in increasing your investment amounts. If the business does not make money, you will have to say goodbye.

3.    Turnovers

Avoid jumping from one business to another. Commission rates are not as low as you expect them to be. Invest in one business and avoid fretting too much. Turnovers could cost you a lot in transaction costs.

4.    Patience

It is important to realize that nothing good is easy. It is highly important to be patient with the businesses and properties you’ve invested in. Remain steady, disciplined and digest everything that happens to come your way. You do not only invest to increase your profits; you also invest to learn.

Commodities to Invest In This Year

More than halfway around the year, it is never too late not to pass up an opportunity to invest in commodities. Knowing the right kind of items to invest in is the core idea of investing in commodities. Here are a few commodities that will help you get your profits up.

1.    Gold

Owning jewellery in gold is actually a pretty good investment. Many experts estimate that the property prices of gold will not burst until 2020. Owning gold in any form is also a great way to invest so be sure to consider this on your list.

2.    Oil

The impending US military strike on Syria raised oil prices last week and using this to your advantage could be beneficial or disastrous, so be careful. If the attack pushes through, your stock ownership of oil could greatly increase in just a few months.

3.    Technology

Mobile Internet technologies and other new technologies are looking through great heights as optimization and development with a great consumer base. Investing in technology manufacturing and basic supplies could help you gain a lot of wealth at a short time.

4.    Silver

The better-utilized commodity is not too expensive for adornments and not too expensive for industrial use. Silver has always been in balance and investing in silver today could grant you a stable income by 2014.

The Many Benefits of ISA Investments

Investors hail individual savings accounts as a good way to grow money due to its many benefits. Here’s a list of them.

1.    Tax Free

ISAs were introduced to promote saving for many consumers. ISAs are tax free regardless of any form of cash, shares or bonds that you put in it. Mixing financial instruments ala “Self-Select” individual saving accounts help you gain more profit because it cannot be taxed even if it is above £10600.

2.    ISA Allowance

In the United Kingdom, anyone who is at the age of 16 or over could go for Cash ISAs and save up to £11,520 in the tax-free wrapper. You could invest the savings into shares or split the savings into part ISA tax-free slices and dividends for profit.

3.    Share ISA Exemption and Dividends

Shares included in ISAs exempt you from Capital Gains Tax if you make more than £10600 yearly. If you’re an additional rate taxpayer, an ISA could save you 27.5% of taxes as you could only be taxed with the basic rate taxpayers.

4.    High Liquidation

Unlike properties and other assets, ISAs are completely liquid, meaning that you could gain access to your money at any time. There’s no need to find buyers or wait for further processes to access your money.

The Feasibility of Life Insurance as an Investment

A whole, universal or variable universal life insurance could be something you need but term life insurance is something that you’ll never likely use. Life insurance could sound pleasing to you but you must first assess if it would be feasible in your situation or else, you’ll be throwing your money away to financial advisers receiving commission for the product. Here are a few ways to see if a life insurance is something you really need.

1.    Quantity

It is important that you know how many life insurance policies you could possibly need because you don’t want to buy anything that you cannot use. However, if you pin yourself to just one expensive insurance policy that limits your buying capability, you might miss the point of insurances. Find the right balance that ensures your family will receive your benefits should anything happen to you.

2.    Need

Permanent insurances are more expensive because it covers you for the entire duration of your life. However, some people do not really need life insurance policies. If you don’t have any dependents once you get to your retirement age or your life partner has enough income from their own assets, life insurances are actually useless for you. Assess if you need the insurance carefully.

3.    Tax Benefits

Part of your repayments for a life insurance goes into a cash value account that grows through interest, sub-accounts or even policy dividends. Be sure to study your life insurance carefully before you purchase it. Sometimes, some sub-account investments could have a high-risk value that will require you to add more funds to maintain the insurance policy.

Increasing PPI Claims Numbers Because of Dwindling UK Economy

UK is currently entering a double-dip recession and is at risk of a triple-dip recession according to economists. Low consumer activity and many markets fluctuating at the same time causes “false stability” in most economies and industries. Analysts report that the lowering economy is a factor in the increase of PPI compensation claims in the recent months.

The UK’s economic crisis continues to increase, leaving the cost of living to continually increase month after month. While industrial improvements in mining and construction prospered in the last two months, analysts estimate that these are only tethering on residential investments. This means that without a stable influx of construction and mining markets from different industries, the sudden growth may just be a shot in the dark.

The Financial Ombudsman receives 2,000 mis sold PPI complaints daily. In its annual report, the FOS stated mis sold PPI makes up a third of the work it had done in 2012-2013. Recently, the FOS is increasing its workforce by 1,000 personnel as a result of the increasing number of PPI claims.

Families interviewed by different news correspondents express that household bills are going up week per week. Some said that UK’s economic depression recently is the biggest financial drop they have seen in 40 years. Seaside businesses have been suffering and some had already gone from the industry.

Effective Ways to Manage Your Finances On Android

Smartphones make it convenient for owners to manage their finances and on Android, there are great ways you could begin doing this. Here are a few applications that make your financial management easier.

1.     Financisto

Financisto is a popular Android financial management software. It has a good number of features that helps you set up multiple accounts for your credit cards, bank accounts, debit cards and Paypal accounts. It also allows you to create budgets based on your finances. You could also sync your accounts with Google documents. The best part about this application is that it is free.

2.     Paypal

Withdrawing money to your bank account or paying for items in eBay or Amazon has never been easier with Paypal. Their app is free and allows you to deposit funds remotely from one account to another. It also has a great number of features including a bill calculator.

3.     Pageonce

Pageonce allows you to control multiple accounts and set up bill payment reminders on your phone. It is not limited to personal banking as it helps you track your own investments, phone usage, utility usage, and more. Pageonce has a free version, but you need to pay $13 for the full version.

How to Negotiate a Credit Card Debt Settlement

Credit cards are double-edged swords that could either help you increase your credit score or push you into deep debt. Some actually declare bankruptcy given that they’re using 90% of their income to repay their credit card debts. However, debt settlement can actually remove 75% of your debt than filing bankruptcy. Here are a few things you need to know to start.

1.     Credit Card Company attention

If a customer is unable to pay for his or her balance on time and the debt is accumulating, rather than being a disadvantage, the bank’s attention to you could be an advantage. At this point, the bank just wants you to pay back your debt and they’ll close the account because it helps them avoid charging the amount off their income statement, which directly affects their stock fall. So they may let you pay at a lower debt settlement amount to save time and their stock values.

2.     Bankruptcy

Once you declare bankruptcy, it is possible the bank can wipe out your entire credit card balance because it is clearly unsecured or has no collateral, just a responsibility of the debtor to pay.  This is certainly a bad scenario for banks and they will push you not to declare bankruptcy as much as possible, allowing you to negotiate a lower credit card debt.

3.     Settlement Consequences

The two reasons above justify that banks could definitely lower your credit debt settlement amounts, but there are some consequences on your end. It could lower your credit score to the lowest ends. This might have you some trouble in getting financing or credit in the future.

When Do You Really Need Debt Consolidation?

Financial advisers and legal representatives will tell you that if you are deep in debt, you just need to see a debt consolidator and not file a Chapter 7 bankruptcy. Most people go for bankruptcy thinking that the proper liquidation of their assets could pay off all their bills. So when do you really go for debt consolidation instead of bankruptcy? Here are a few things to ask yourself.

1.     Debts with Capability

Let’s say 60% of your income goes to your debt repayments, utility bills and taxes and you still have a stable job. You don’t need to file for bankruptcy. Debt consolidation works great in this case. If you still have the capability to gain income and pay your bills, but you just need more monetary allowance to better your finances, debt consolidation is the key.

2.     Business-Related

A business’ sudden exit in the industry could cause great fluctuations in the local market and proper bankruptcy and distribution of payments to creditors is the key. A chapter 7 bankruptcy for businesses means the liquidation of assets sold by a trustee and then all debt repayments from the liquidation sent to the creditors. Business related debts expecting low to null growth will need bankruptcy than debt consolidation.

3.     High-Interest Debts

Some people have very many high-interest and unsecured debts but still have the physical and mental capability to earn a living. Debt consolidation is the answer for these people. Debt consolidation compiles unsecured debt with collateral and a single repayment scheme with a reduced amount to lower the debt’s interest rates, shortening the time needed to repay the debt.

Should I Get A Laptop Insurance Policy?

I recently bought a laptop this weekend from HP and I was offered by an insurance company to have my laptop insured. My first thought was that they may be insulting the quality of the laptop in question. But it did make good sense that they intend to protect my laptop and repair or replace it in case an accident happens or if I am the cause of its early breakdown. However, they said it only has a one-year span. So I asked myself, should I get a laptop insurance policy?

Here are the facts. I just purchased the laptop and I’m writing this article here using it. It performs well and delivers what its packaging and online reviews told me. However, I’ve found a few reviews about the laptop that showed it broke down after 8 months. It’s kinda scary for me because I just had this laptop last week and if that happened, that could be a big problem.

 The reality with laptop insurance and any other kind of insurance is that they have a deadline. Once the deadline passes the money you paid for protection will not come back to you and becomes the insurance company’s profit. However, if you feel much safer having laptop insurance while using your laptop, then you’re actually paying for your peace of mind.

But, like me and others like me, researching about the laptop model and its performance is enough persuasion whether to buy or not to buy an insurance policy for the laptop. If you know the laptop has a high rate of failure, then get an insurance policy. It’s always up to you.

I did buy that insurance after I read more reviews about the laptop failing after 8 months, just so you know.

Five Ways To Improve Your Finances

Admittedly, some of us could be pretty brash when it comes to our expenses. Once pay day comes, there are a those of us who go on instant shopping sprees or eating out with our mates. It's not entirely your fault. After all, you should be able to enjoy the fruits of your labor. However, these are just short-term and would give us just a fleeting feeling. It is important that we should think of long-term as early as possible. We don't want to be forty and still paying for our numerous insurance policies. There are plenty of ways for us to enjoy life and at the same time improve our finances.

Set goals
You should ask yourself these questions: "How much do I want to have in my bank account by the end of the year?", "How much could I possibly save in order to achieve that goal?" In order to achieve your long term goals, you must strive to fullfil your monthly financial goals. This must be achievable and doable. You don't need to start big. You can save as little as £5 in day. Commit to it.

Make a budget
You need to find an allocation for all of your expenses. Whether you're single or married, you have to find ways to make sure that your money is well spent. We are in an era where things are made easier for us. So go download that app on your smart phone. It will somehow make things easier for you. It makes budgeting easier even if you're on the go.

Educate yourself
You don't need a fancy degree in order for you to take charge of your finances. What you do need to know is have an idea of how the market works. It could set you up into investing in the near future. Again, you could start small. Educate yourself by reading finance articles online or in magazines. There are plenty of reading materials out there. If you're lucky, you probably have a friend who's in the finance industry. Ask questions. It's for your own good and your future.

Track your spending
You have your goals and your budget allocation. Even if you have a budget already, you have to track your spending. This is a means for you to find out if your budget is realistic. It gives you an idea whether you have to cut back on your food or wardrobe spending.

Simplify your life
They say that living the simple life is sweet. Well, if you live your life simply or simplify some aspects of your life, then you'd have greater allowances for your finances and possibly your investments. Learn to cook. It will save you money and would be a good avenue to eat healthily. Cut your gym membership. It's free to run, bike, walk and play basketball or football with your mates.