The school holidays have arrived yet again, but with family day tickets to major attractions costing more than £100, it is prudent to check for alternatives. Here are some handy money saving tips from Payplan to cut the cost of your summer holiday, but still allowing your children to have a fun filled six week break and reducing their boredom at home.

1. Plan a treasure hunt

Make clues and put them in the garden or around the house, so that each clue leads to the next. The final clue would lead to the treasure which could be a home-made treat.

2. Make your own restaurant

First, choose what type of food you want to serve. Then, name the restaurant. Next, design the menu and prepare the decorations. Get cooking and then finally you can sit down to enjoy the meal!

3. Arrange a ‘dress up’ day

Be creative. A box of clothes can provide hours of fun. Use old clothes to make costumes, which can later be used in a home-made theatre production!

4. Have a sports day

Prepare outdoor games, such as the egg and spoon race and present homemade certificates at a prize giving at the end of the activities.

5. Create your own show

Get the children to write and then perform the play using the costumes made during the dress up day. Or make a shadow puppet theatre, where you can use old cereal boxes to make the characters and the stage.

Payplan
Providing free budgeting advice and free, confidential debt help for those struggling to manage their debts. Contact us for free on 0800 280 2816.

The Chancellor of the Exchequer, George Osborne is preparing an Office for Tax Simplification to reduce the 11,000 page tax code; due to Britain having one of the most complex tax codes in the world.

It is hoped that the tax code will become more readable and more people will understand the tax laws they are being asked to comply with.

Initially two reviews will be conducted:

1. The tax system for small business will be simplified
2. Restructuring of tax reliefs, allowances and exemptions

Tax credits will not be adjusted as they are considered to be part of the benefits system.

It is being simplified in order to make the system more competitive for the growth of small businesses, in hope of stimulating economic growth.

The Chancellor has said:

The previous Government took a complex tax system and made it even worse. A decade of meddling and intervening has made the tax affairs of millions of families and businesses across the UK extremely complicated. We need to sort out this mess.

Two years ago I promised to create the Office of Tax Simplification. Today, we’re delivering on that promise. With its independent, expert advice it will be a permanent force for a simpler tax system.

Simpler, more competitive taxes will help us show the world that Britain is open for business.

Payplan

If you are worried about your finances contact Payplan today on 0800 280 2816, for free and helpful debt advice

In my experience, mortgage arrears need to be dealt with in the context of the overall financial situation of borrowers.

In trials in which we are working with a small number of lenders to talk to clients in arrears, we have found that by engaging with borrowers about their whole debt situation we’re nearly always better able to effect a solution that stabilises and makes their repayments on unsecured debt more manageable.

This leaves a greater proportion of income available to put towards improving the arrears situation.

So without having to run the risk of giving advice, lenders adopting a more holistic approach to arrears can turn the FSA’s rules to their advantage and put more borrowers back on the straight and narrow.

They can also fulfil their obligations with regard to Treating Customers Fairly.

So lenders should see the new rules, rather than being a burden, as a chance to tackle underlying unsecured debt liabilities at source and free up disposable income for the repayment of arrears.

John Fairhurst

Managing Director

Payplan

The Financial Services Authority (FSA) has outlined new suggestions for mortgage borrowers to ensure that they can afford monthly mortgage payments.

The FSA wants to ensure that mortgage customers are protected and that lenders only lend to those who can afford mortgage payments.

Key proposals:

• Introducing affordability tests
• Verification of borrowers’ income
• Extra protection for susceptible customers

The proposals are a direct result of a review undertaken by the FSA, which looked into causes of mortgages in arrears and repossessions since 2005.

Conclusions from the review:

• Nearly half of all households either had no money left or had a shortfall, after mortgage payments and living costs were deducted from their income
• Almost 50% of new mortgage customers were not asked to verify their income between 2007 and 2010
• Interest-only mortgages have been increasing, at the topmost, 30% of all mortgages were interest-only
• Many borrowers depend on future house price rises and unsure life events to repay their mortgage
• Customers with credit-impaired history are the most vulnerable

The FSA director responsible for the mortgage market, Lesley Titcomb, said:

There is a clear link between financial overstretch and mortgage arrears and repossessions, and we are determined to protect vulnerable consumers by making sure that everyone who takes on a mortgage can afford to pay it back.

Payplan

If you are struggling to manage your monthly outgoings then contact Payplan for free debt advice online or simply call 0800 280 2816.

The North-South divide in England is still continuing.

Data from the Insolvency Service shows that in 2009, the North East of England had the highest number of bankruptcies and individual voluntary arrangements (IVAs), whereas London had the lowest level. This was also the case in 2008.

Cases of insolvency are at their highest as a result of unemployment levels and an increase in unsecured personal debts.

Even though there is a clear north-south split, the South West of England was the region with the second highest number of personal insolvencies in 2009.

Although these figures show the outcome of personal insolvencies for 2009, it is clear that people will face the same problem in 2010 from the data that has already been published. This year has seen a rise of nearly 18% of the number of people being declared insolvent in England and Wales compared with the first three months of 2009.

Payplan

If you are struggling with debts contact Payplan today for free & confidential debt advice or simply call 0800 280 2816.

The Joseph Rowntree Foundation (JRF) publishes its annual update on ‘minimum income standard’.

They review what people think is an essential living cost.

Key Points

• A single person in the UK needs to earn at least £14,400 a year before tax to afford a basic standard of living
• A couple with two children needs £29,200
• The minimum household budget has risen by 4%
• Since 2000, living standards have fallen by over 10%
• People do not just need physical essentials now, but also things that allow them to participate in society
• A computer and internet connection are considered essential
• With tax allowances and credits not being increased under the new budget, it means people need to earn substantially more to afford the increased cost of living

Changes

• The cost of a minimum household budget for a single person has risen by 38% in the last decade
• Bus fares have risen by 60% since 2000
• People on low incomes are facing much higher inflation rates
• With a society change, the minimum standard of living also changes; for example, a basic budget for going out is expected, it is a necessity to buy birthday presents, and it is essential to have a week’s holiday each year, although not abroad
• Items such as fridge-freezers, DVD players and mobile phones should be affordable
• Owning a computer and having access to internet at home is essential for all working-age households
• Computers and internet are now included in the 2010 budgets for working-age people

The salary required to reach the minimum income standard remains well above the National Minimum Wage (presently £5.80 per hour). Minimum Income Standard budgets suggests that the recession may have resulted in reductions in standards of living, but not a change in the view of what is acceptable.

Payplan

If you’re struggling to pay your bills and are behind with debts due to increased living costs, then contact Payplan for debt advice online or telephone 0800 280 2816.

If you are on a tight budget and are struggling for things to do for free this summer, why not try one of the many free days out being offered throughout the UK?

1. Visit a museum

Free day out in London

Many of the museums throughout London offer free admission. Admission into the Victoria and Albert Museum is free and a new free exhibition of ‘Peter Rabbit: the tale of The Tale’ is about to launch. The exhibition opens on the 3rd July and ends next January.

2. Find a free music festival near you

Free day out in Birmingham

Birmingham’s annual International Jazz Festival is back in ‘full swing’ from the 16th to 25th July. Starting at lunchtime every day, there are plenty of free shows to choose from.

3. Find a free literature festival near you

Free day out in Hull

Another year and the city of Hull sees the return of its Humber Mouth Literature Festival. The festival is the culmination of year round literature activities and there a number of free shows available. The festival is taking place between the 26th June and 11th July.

4. Make a trip to an open air cinema

Free day out in Manchester

Spinningfields holds Manchester’s first outdoor cinema and the screenings are completely free. A wide variety means everyone can enjoy a show or two! Films are shown weekly on Thursday evenings and Saturday mornings.

5. Visit an art gallery

Free day out in Sheffield

Sheffield has a number of galleries with free admission and the Yorkshire Sculpture Park (YSP) offers indoor galleries as well as outdoor sculptures situated in the tranquil grounds. There are many free events taking place throughout the summer. Booking is necessary!

Payplan

If you are struggling with meeting your monthly credit card payments and need advice on debt, please contact Payplan for free on 0800 280 2816.

The new Government has proposed that a new pension age threshold will come into force from 2016.

The new pension age threshold is set to rise to 66 years for men by 2016 and by a further two years to 68 by 2048.

Work and Pensions Secretary Ian Duncan Smith said on the new pension age rise:

“People are living longer and healthier lives than ever, and the last thing we want is to lose their talent and enthusiasm from the workplace due to an arbitrary age limit.

We also need to recognise that to meet the challenge of providing an affordable, stable pensions system in a society with ever increasing life expectancy, people will need to work longer.”

The government is also in talks to phase out the current default retirement age to ensure those who want to work past 65 are able to do so.

Key points from June’s Budget, 2010

VAT
VAT rate will rise from 17.5% to 20% from January 4, 2011

Tax

Tax credits have been reduced for families earning over £40,000 next year

Low income families will see an increase in Child Tax Credit

There will be no new increase on alcohol, tobacco or fuel taxes

Council tax could be frozen for one year from April 2011 in England

Benefits

Child benefit will be frozen for the next three years

Unemployed people will see their Housing Benefit cut by 10% after 12 months of claiming Jobseekers Allowance from April 2013

Public Sector

Public sector workers face a two-year pay freeze if they earn over £21,000

Public sector workers earning less than £21,000 to be paid £250 extra each year for two years

Plans to cut the Deficit

Chancellor George Osborne plans to cut the structural deficit anticipate a fall of 1.1% of gross domestic product (GDP) by 2015/16 compared to a deficit 10.1% of GDP in 2011.

Payplan

If you are struggling with debts contact Payplan today for free, confidential debt advice or simply call 0800 280 2816.

Many Payplan clients already owned a pet before they got into financial difficulty - making the cost of caring for them part of their budgeting process. Here are some handy tips from Payplan for how to cut the cost of owning a pet, without cutting out on the care.

1. Pet inoculations - Don’t miss jabs!

Although the cost of inoculating your pet can be expensive, prevention is better (and cheaper!) than cure. By keeping up-to-date with your pet’s jabs you could avoid extra costs in the future.

2. Pet insurance

Again the same adage is true - prevention better than cure. Shop around for cheap insurance deals for your pet’s insurance, although paying each month adds up, the insurance will act as a great safety net should your pet need emergency or long-term medical treatment in the future.

3. Cheap toys

Instead of spending money on expensive toys for your pets, why not pick something up from charity shops or even try homemade toys.. sometimes a bit of string or a simple feather can provide just as much fun!

Alternatively, many ‘pound’ shops sell various ranges of pets’ toys and pet foods for only £1 - bargain!

4. Pet sitting

To avoid the cost of pet sitting or kennels, why not visit Pet Sitter Swap, a site which puts local pet owners in touch with each other so they can organise a free pet-sitting rota. You have to pay £9.99 to join, but all pet-sitting is free after that.

5. Buying a Pet

If you’re seriously thinking about buying a pet such as a dog or cat, and you’ve already considered the financial, emotional and care implications over the long-term, it may be a good idea to consider a non-pedigree rather than a pedigree breed.

Pedigrees, as well as the initial cost of the pet being expensive, are also known to cost considerably more in terms of ongoing insurance and general day to day care.

Additionally, apart from the obvious benefits to the animal, adopting a pet from a rescue home will most probably work out cheaper than buying from a breeder and some will even arrange subsidised vaccinations and neutering where necessary before you pick up your new pet.

For more information about adopting a rescue animal visit the RSPCA’s website.

Payplan

Providing free budgeting advice and free, confidential debt help for those struggling to manage their debts.

Prime Minister David Cameron warned yesterday about the UK’s problems with debt and that plans to cut the deficit will have “enormous implications” for the country, stating in a speech;

“How we deal with these things will affect our economy, our society - indeed our whole way of life”

“The decisions we make will affect every single person in our country and the effects of those decisions will stay with us for years, perhaps decades to come”.

The consequences of the problems with debt that the country currently faces are also reflected in the debt problems that many consumers are facing and struggling to come to terms with in their personal life.

Personal problems with debt?

The number of people struggling with personal debt in the UK has risen greatly over the last few years. Those facing debt problems may be suffering from considerable anxiety, stress and depression or perhaps more alarmingly, in some cases, thoughts of suicide.

If you are worried about debt then it’s important to seek debt help. Advice lines such as the Samaritans or your local Citizens Advice Bureau are there to provide help and support in a crisis, both emotionally and practically. Additionally, why not read Payplan’s tips on how to beat the stress of debt for additional help.

Some people struggling to manage their finances may even be trying to hide a debt problem from their loved ones too, whilst others may be struggling with a relationship breakdown due to problem debts. Relate offer relationship advice and counselling services to those in need - click here for more information on how to find your nearest Relate counselling service.

Many people are today struggling to manage their home or business, are facing redundancy or even bankruptcy. If you’re struggling to manage your finances, then contact Payplan today for free confidential debt advice.

The following bill cutting tips could help you save money on your monthly outgoings. Click here for further budgeting advice

1. Cut your TV package

Ask yourself this question; do you really watch all the channels you subscribe to? If the answer is no, then maybe you should consider cutting your sky or digital packages back to basics - and watch your bill reduce.

Many programmes can now be watched online but if you would still prefer the extra channels why not consider a Freeview package? Some televisions have Freeview already integrated and so you may be receiving many of the channels for free already without even knowing.

2. Cut your phone bill

At the beginning of the year Payplan reported results of a study that showed the average adult wasted almost half (45%) of their mobile tariff’s minutes and text allowance each month, totalling almost £250 in waste each year.

If you think you could reduce your mobile monthly allowance, why not contact your network provider to see if you can lower your tariff and cut your monthly bill.

3. Cut your magazine subscriptions

A variety of magazines actually upload most of their content online now and so you can view most of what you would pay to read, for free! Magazine subscriptions add up over time, with a £1.50 weekly magazine costing almost £80 over a year!

4. Compare the market

Market comparison sites are great for finding the cheapest deal on your monthly bills. Compare the Market, GoCompare and Money Supermarket are a few of the well-known providers (there are many others) - all specialise in searching for the cheapest deals from car insurance to broadband.

My Supermarket also allows you to scan the supermarkets for the cheapest deals.

5. Haggle

If you feel you are paying too much for your television, mobile or broadband package, it may be worth contacting your provider and asking directly about cutting your bills or reducing your monthly contract - you may find they are willing to provide you with a similar package but at a reduced rate - after all, its always worth asking.

Payplan

If you are struggling to manage your monthly outgoings then contact Payplan for free debt advice online or simply call 0800 280 2816.

Figures released today by the coalition Government’s new Chancellor George Osbourne reveal £6.2 billion in new spending cuts in a bid to take ‘urgent action’ against the budget deficit.

The new Government spending cuts can be seen in the following sectors:

• Child Trust Fund Payments will be axed by January next year, saving an estimated £520 Million
• IT, suppliers and property sectors will face cuts of £2 billion
• Consultancy and Travel will see £1 billion made in cuts
• There will be a civil services recruitment freeze
• £683 million in cuts at the department for Transport
• Communities and Local Governments will face £780 million
• The department for business £836 million due to the new spending cuts
• Department of work pensions £535 million
• Chancellor’s Department will face £451 million as a result

The department for education will also see £670 million in cuts although the Chancellor assures funding for schools, 16-19 year olds’ education and Sure Start will remain protected.

Chief secretary to the Treasury, Mr Laws said:

“The years of public sector plenty are over, but the more decisively we act the quicker and stronger we can come through these tough times.”

“We also promise to cut with care, we are going to be a progressive government even in these tough times.”

Payplan

For free, confidential debt advice contact Payplan today or call 0800 280 2816.

The Office of Fair Trading (OFT) has joined the ‘Stop Loan Sharks‘ campaign aimed at warning people about the risks of using loan sharks to try to solve their debt problems.

Loan sharks are actually illegal money lenders and prey on those vulnerable people struggling with debt. Unlicensed loan sharks will often offer cash loans without paperwork, charge extortionate interest rates and may use benefit payments or bank cards as security or threaten the use of violence if loan payments are missed.

According to the (OFT) there are an estimated 165,000 households in the UK that have loan shark debts, with half of these in the most deprived areas of the country.

In accordance with the campaign now fronted by the OFT and Trading Standards Illegal Money Lending Teams, loan sharks can now be reported by either calling 0300 555 2222, by sending a text with the words ‘loan shark’ and the details to 60003 or by sending an email to reportaloanshark@stoploansharks.gov.uk.

Jacqui Kennedy, Director of Regulatory Services at Birmingham City Council said:

‘It’s great to have the support of this campaign in our continued fight against loan sharks. It’s vital that we get our message out to vulnerable people that loan sharks are never a good option. It may seem like easy cash at first but very quickly people can become trapped in a spiral of debt’.

Nationally, the ‘Stop Loan Sharks‘ project has so far helped more than 11,500 people, written off more than £31 million of illegal debt, secured more than 60 years in prison sentences including an indefinite sentence for public protection, and seized £1million in cash.

For more information about how to report a loan shark watch the ‘Stop Loan Sharks’ campaign film on YouTube.

IMPORTANT NOTICE
If you’re receiving violent threats made by loan sharks because of missed payments, you should contact the Police immediately. If you’re struggling to manage your debts, contact Payplan today for free, confidential debt advice.

In a bid to help the current fragile housing market, Communities Secretary Eric Pickles and Housing Minister Grant Shapps today announced that with immediate effect, they will be abolishing the requirement for home owners to provide a Home Information Pack (HIP) when selling their homes,

The HIP packs are usually paid for by sellers and contain property information, title deeds and local searches.

Currently, home owners looking to sell are forced to spend around £300 on the pack, which estate agents claim, is stunting the housing market recovery, as it deters people from putting their home on the market just to test the water.

Mr Shapps commenting on the subject said:

“by suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront.”

Eco-friendly Homes

Mr Pickles and Mr Shapps also said that the Government is determined to help people reduce their energy bills and increase the efficiency of our homes and therefore as a result sellers will still be required to commission an Energy Performance Certificate (EPC) before marketing their property.

Payplan

Payplan provides free, confidential debt advice for those struggling with their debts.

Low-income?

(Information on this page is taken from Direct.gov.uk)

If you’re on a low income and need help with certain important costs, you may be able to get an interest-free Budgeting Loan from the Social Fund that you pay back.

Debt Problems?

If you also have debt problems - you can use our Debt Help Form to get in touch with Payplan for a free debt assessment and a free debt solution such as a debt management plan to help you take control of your situation.

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