5 Ways to Cut Impulse Buying

Are you an impulse buyer?

If you find it hard to resist unnecessary purchases when shopping, read Payplan’s 5 simple tips to help you beat the temptation.

1. Make a shopping list - Whenever you go shopping, think about what you really need and make a list. This way you’ll only buy the things you really need - and it will help you realise what isn’t a necessity.

2. Avoid browsing - It’s simple and obvious but worth mentioning because it’s really important. Browsing on the high street and in shopping centres means you are far more likely to see things that might tempt you to spend. Remember, many stores these days form huge groups of companies with massive marketing and advertising budgets - and they’re very experienced at getting you to part with your money when you least expect to.

3. Still tempted? Ask yourself, ‘Do I really need this?’ - Imagine what else the money would buy in the context of your weekly grocery bill or the cost of your gas and electricity - this can be a great reality check!

4. Card impulse purchases - Using any form of plastic card, online or offline, can often remove the reality of the amount you are spending at any one time. Using cash where it’s safe and convenient to do so can make a big difference to the psychology of spending - cash is a physical ‘thing’ and the simple act of handing it over can bring home the real cost of your purchases.

5. Make a ‘wish-list’ - If you really want to buy something that’s not a necessity, write it down on a ‘wish-list’ along with the date you saw it and how much it costs - and then do nothing. You will often find that when you next read your ‘wish-list’, you may decide you don’t really need the item at all because the impulse has gone.

Payplan

For more money saving tips or advice on how to beat the effects of the recession contact Payplan today.

Payplan, providing free, confidential debt advice.

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Volcanic Eruption - Your rights and refunds

Are you entitled to a refund?

As we previously wrote in Money Worries For Stranded Passengers, the unexpected expense and disruption caused by the recent Volcanic eruption has undoubtedly affected people’s finances in many cases. Here is a guide to your rights, refunds, compensation and employment matters relating to these events.

Refund Policies

If your trip was delayed or cancelled, you should either have been offered alternative transport or an alternative holiday. If that is unsuitable you should be entitled to a full refund of all elements of your package deal.

If you arranged a holiday with separate flights and accommodation, refund policies may differ. Customers are still able to claim money back for their flights, as the airline, under the Denied Boarding Regulations, must offer the choice of a refund or re-routing at the earliest opportunity.

However, accommodation costs are not included in the refund - that is the responsibility of the  accommodation supplier, should they agree.

Any flights that were delayed by five hours or more should still qualify for a refund if you chose not to travel on the delayed flight. If you took a connecting flight and had already made part of your journey you should be entitled to your money back for any unused flights and get a free flight back to your departure point.

If you booked your outward and inward tickets separately and both were cancelled you are eligible for a refund. However, if your return flight goes ahead but you missed it due to the outbound cancellation, you should get a refund for the cancelled flight but may not for the return flight, particularly if the tickets were bought through separate airlines.

The Association of British Travel Agent’s (ABTA) recently released a letter from the ABTA Chief Executive to customers whose travel plans were disrupted.

The European Commission Vice President for Transport said:

“This is a situation which is causing immense difficulties for passengers travelling throughout Europe. It can be considered a very exceptional circumstance. Nevertheless, it is important to remind passengers and airlines that EU passenger rights do apply in this situation:

  • the right to receive information from airlines (e.g. on your rights, on the situation as it evolves, cancellations and length of delays)
  • the right to care (refreshments, meals, accommodation as appropriate)
  • the right to chose between reimbursements of fare or be re-routed to final destination.

In an exceptional circumstance such as this, passengers are not however entitled to additional financial compensation that would be the case where delays or cancellations are the fault of the airline.”

What about Work?

As Martin Lewis’ money saving tips suggest, If stranded, even though it’s not your fault, employers are often within their rights to dock your pay for unauthorised leave, according to the Trades Union Congress (TUC).

However, it is good advice to keep your employer informed of your circumstances and take any opportunity to work remotely, if of course this is possible due to the nature of your work.

For more information about your rights and refunds contact your travel operator or airline directly or visit The Association of British Travel Agents.

Payplan

If you are struggling to meet your monthly expenses, contact Payplan today for free, confidential debt advice.

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Government ‘must act urgently’ to regulate debt management industry that will cost consumers £¼bn in 2010

£¼ billion bill to consumers in 2010

New research published today says that consumers will be hit with a bill of over £¼ billion in 2010 in set up and management fees to ‘debt management plan’ (DMP) providers despite the existence of free alternatives. Payplan, a free to consumer DMP provider that released today’s findings, is calling for Government action to safeguard consumers, because the industry remains poorly regulated and open to abuse.

£54m in up-front fees charged to consumers expected in 2010

The research estimates that by the end of 2010 as many as 562,000 fee-charging plans will be in operation, up from the current level of 375,000. This is the equivalent to around 15,000 new schemes being taken out every month in 2010. By comparison, the free-to-consumer sector has 220,000 DMPs currently in operation. The report says that fee-charging DMP providers are expected to levy up to £54m in up-front fees to consumers in 2010, an average of £290 per person. There are no limits to how much consumers can be charged, but it is usual for families in debt to pay 17.5% of their monthly repayments to the DMP provider.

The quality of fee-charging debt management plan providers throughout the UK varies widely. There is little correlation between the level of fees charged and the quality of service, but strong correlation between fees charged and advertising spend.

Unscrupulous Operators

Owing to the absence of effective regulation it is easy for unscrupulous operators to offer debt management plans to consumers – and despite the existence of free alternatives, many people don’t know that they exist. A debt management plan is a structured arrangement between a person in debt and their creditors. The consumer pays a single monthly payment to their debt management plan provider, which is then distributed to the person’s creditors by the debt management company on a pro-rata basis. Fee-charging DMPs levy up-front and monthly fees on the consumer, unlike free plans which charge a much smaller fee from creditors – costing the consumer nothing.

John Fairhurst, Managing Director Payplan, said:

“It is a fact that providers who charge fees can afford to spend large sums on advertising and therefore attract high numbers of consumers. When people are looking for debt help they are often very stressed and will sign up with the first provider they come across – this provider, although most visible – will not always be the one that will provide the best standards of care and service. With the number of people seeking debt help growing, action to bring proper standards to the industry in the form of regulation must be taken sooner rather than later.”

David Hawkes, AdviceUK’s National Money Advice Co-ordinator, said:

“AdviceUK supports the introduction of regulated Debt Management Schemes because we believe they will have clear benefits for vulnerable debtors. Not only will regulated schemes relieve debtors from uncertainty because they are binding on creditors, but they will also protect debtors from being exploited by the bad practices of the less scrupulous fee-charging debt management companies.”

Henry Bellingham, Conservative Shadow Minister for Justice, said:

“The Government needs to act urgently to regulate the debt management industry. This year alone it is estimated that the industry will grow by up to £100m. It is high time the Government took the necessary steps to introduce regulatory oversight to give consumers the assurance that they are not being ripped off by excessive charges and high up front payments. The Government have singularly failed to make this a political priority. At a time when the downturn has pushed many families to the brink of bankruptcy, more and more people are forced to turn to debt management providers. The recent Government consultation exploring the merits of regulation demonstrated that there is widespread support for statutory oversight. It isn’t asking too much for consumers to expect such a huge and influential industry to face scrutiny from an independent regulator. If there was ever a time for the Government to act it is now.”

Steve Meakin, Chair Institute of Money Advisers (IMA), said:

“It is imperative that people facing financial hardship are better protected and informed about which way to turn when looking for debt help. We are extremely worried that poor regulation is in many cases resulting in bad advice and high charges to consumers who are in genuine distress and need help.”

About Payplan

Payplan is a free debt advice and solutions service that provides impartial advice to people in financial distress. Payplan helps over 100,000 people every year and works closely with organisations in the field of money advice and consumer and employee welfare.

Payplan Press Officer

For further information please email our Press Officer Jayne Newton at:
jayne.newton@payplan.com

or telephone:

01476 541980 or 07812 736861

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Money Worries For Stranded Passengers

Iceland volcano causes money worries for stranded passengers

Due to the recent flight disruptions brought about by the Volcanic eruption in Iceland last week, many people are facing money difficulties as they are forced to pay for alternative travel arrangements to get home.

The cost of unexpected alternative travel and food expenses whilst stranded has meant some passengers are struggling to manage the extra costs.

The British Bankers Association, in a statement released today, said:

Banks recognise that the current air traffic restrictions mean some customers are unable to get home and are incurring costs and expenses for which they wont have budgeted.

We understand this may be a difficult and worrying time for both customers and their families here in the UK.

Banks are putting arrangements in place to help their customers and, in most cases, will deal with requests for additional finance or claims for charges to be waived on an individual case by case basis.

Those facing financial difficulty are being urged to contact their bank or credit card provider for further information whilst stranded. Contact telephone details are usually on the back of debit and credit cards.

Providers of money transfer services, which usually carry a small charge, can also be used by friends and relatives to transfer money to those who are stranded.

Payplan

If you are experiencing financial difficulties, contact Payplan today for free, confidential debt advice or simply call 0800 280 2816

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