Steve A Smith asked:




Many of the Britons who are renting property could be putting themselves under financial pressure, a study has revealed.

According to new research by AA Legal Services, half of those renting a home do not have a written tenancy agreement from their landlord before moving into a property, despite this being a legal requirement. With a significant number of consumers are being priced out of the home-owning market, the company reported that a quarter of these people “being forced to rent”. However, with more tenants revealed to be concerned about the size of their bedrooms rather than how they would be able to reclaim their deposit, it was suggested that many Britons could be leaving themselves open to unnecessary financial pressure upon signing a rent agreement.

Commenting on the figures, James Molloy, head of AA Legal Services, said: “These findings demonstrate how poorly people protect themselves when moving into a rented home. It is vital that you agree your tenancy agreement and check everything, including inventory and utility meter readings, before you accept the keys to your rented home. Yet thousands of people are just not doing so and are putting themselves and their home at risk.”

The study also revealed that more than half (55 per cent) of consumers do not take electricity, gas or water meter readings before moving into a property. As a result, the financial services firm claimed that this could lead to them facing “unexpected bills”, which in turn may see them develop problems meeting other demands on their spending such as credit cards, overdrafts and tenant loans. In addition, a “shocking” 59 per cent of renters are unaware as to their notice period, a move AA suggested could leave people in “the lurch with unbudgeted months of rent to pay”. Findings from the financial services firm also indicated that 55 per cent of respondents do not take the time to make sure that their rental payments are clearly set out and agreed upon, which may see them paying more money than they should each month.

Meanwhile, the financial services firm reported that just over one in five (22 per cent) claim that they have taken steps to ensure their finances will be able to cope with the demands that moving into a rented house or flat can bring. As a result, Mr Molloy advised those consumers who are concerned about a property they wish to rent to seek out advice from a solicitor or some other “reputable organisation”.

Should people renting a home find that they are coming under surging financial pressure, for whatever reason, the taking out a personal loan could help them relieve such stress by merging numerous demands on spending into a single low-rate loan. Speaking earlier this month, Moneyfacts analyst Lisa Taylor reported that borrowers need to take the time to make sure that they are getting a competitive rate of interest on a personal loan, as a number of lenders have increased their rates over the last nine months. She stated that choosing the “wrong” loan could see consumers paying double the amount of interest then is necessary.

Caroline

Abbi Rouse asked:




Although it is still five months away, Britons are being warned that failing to plan their spending over the Christmas period could impact upon their personal financial situation.

In research carried out by Britannia, just under half of the adult population (47 per cent) are said to not be saving money specifically for the festive season, despite predictions among the public that it will set them back by an average of

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Steve Smith asked:


Although their spending on clothes might not match that of trendy American celebs, women on this side of the Atlantic still need to exercise a degree of financial caution when it comes to fashion, according to a recent study.

Research conducted by More Than shows that British females spend an average of 68 pounds and two pence on outfits each month. Over the course of a year such expenditure was shown to stand at 816 pounds and 24 pence. And while this in itself may seem like a significant amount of money, it pales in comparison to those American fashionistas who regularly go on shopping splurges.

Epitomised by Carrie Bradshaw – the star of US drama Sex and the City played by Sarah Jessica Parker – these people were shown to spend at least 10,572 pounds per year on clothes. Meanwhile, those UK women who are in the same demographic as Bradshaw – also known as the “British Carries” – were revealed to be splashing out just 76 pounds and 56 pence per month on fashion or 918 pounds and 72 pence over the course of a year.

Not only does fashion spending by the average woman pale in comparison to their more luminous peers but Brits are also underestimating the value of the items that they do own. Research from the firm showed that about half of respondents think their total clothing collection is worth less than 1,000 pounds. However, it was revealed that in reality the average consumer has 2,500 pounds in shoes, dresses and other items stored in their cupboard.

Following on from a lack of insurance, consumers who have had expensive clothes damaged, destroyed or stolen could find that they have to meet the cost of replacing such items by themselves. This in turn could affect their ability to make payments on loans, credit and store cards, mortgages and other sources of financial demand.

Annette Lepper, spokesperson for More Than, said: “Though British women may not have the means to build a Sex and the City style wardrobe, during their lifetimes many will have built up closets with significant monetary values – problems arise when people don’t stop to think about the combined value of all their purchases, or accurately account for their total worth. We would strongly advise all British women to take time out and reassess the worth of their valuable collections.”

For those consumers wishing for an effective way to finance the purchasing of designer clothes, taking out a personal loan might be of assistance. Such a loan could be particularly effective for Brits looking to take a shopping trip to New York to splash the cash on clothes in the style of Carrie Bradshaw.

The additional financial help that a personal loan brings could also help fashion-hungry consumers to purchase a comprehensive insurance policy to cover their prized designed goods. Getting a loan might also be of assistance for those women who have recently given birth.

In a recent study by Egg it was shown that an average of 1,062 pounds is being spent on mothers and their newborn children on items such as clothes, designer buggies and highchairs. Overall, it was indicated that 939 pounds of this amount is splashed out on babies, with 132 pounds going towards the mother.

It also was revealed that, in the wake of a birth, some 87 per cent of new mums have splashed out on new clothes.



Jay

Abbi Rouse asked:


More people could be due to come under financial pressure over Christmas, a new study suggests.

In research conducted by CreditExpert, 76 per cent of Britons state that they are set to either spend the same amount of money on gifts this year as they did in 2006 or increase their expenditure. The news comes as 29 per cent of those surveyed claim that their present financial situation is tighter than it was last year. And as the credit reference agency claims that the impact of the recent series of interest rate rises and the credit crunch has put more strain on consumers’ monetary situations, more people could well be due for a “huge financial fork-out this Christmas”.

The study also showed that eight per cent of respondents believe that their borrowing, whether through credit cards, overdrafts or a personal loan, will increase in the weeks leading up to the Christmas period. Meanwhile, about half (47 per cent) of those surveyed think that there is a social pressure for them to buy expensive gifts.

Jim Hodgkins, managing director for CreditExpert, said: “During the festive season, most of us spend more than normal so it’s especially important to monitor our finances and make sure our Christmas doesn’t turn into a financial nightmare.”

He advised that while buying gifts is a “big part” of the festive period, consumers would be wise to avoid overspending as otherwise they could develop problems managing debts accrued via loans and credit cards. “It’s vital we budget and take a step back to ensure all our outgoings are necessary so we don’t end up being unable to make the repayments come January – a bad credit rating can make the difference between being offered credit or not, so make sure you keep on top of your credit history and ensure you can pay back any debts before you go into the red,” Mr Hodgkins asserted.

Overall, the study showed that people in the north feel that they are under the most pressure to splash out on expensive gifts for their loved ones, which consequently could impact upon their ability to make payments on personal loans and other types of borrowing. In turn, CreditExpert pointed out that those from the northern areas struggle more with money than anywhere else in the country, as the levels of consumers in the north-west and north-east who have got into debt after overspending during Christmas accounts for 37 and 31 per cent respectively. This compares to the 22 per cent of residents from the south-east of England who admitted getting into debt last Christmas. Meanwhile, people in the 35 to 44-year-old age bracket are the most likely to have gone into the red as a result of exceeding spending plans over the festive season.

For those concerned about their ability to fund their spending in the run-up to Christmas, taking out a cheap loan could well be an advisable option, as in doing so borrowers may be able to make a number of purchases at a low rate of interest or pay off other debts that they may have built up. Last month, Neil Munroe, external affairs director at Equifax, reported that having a positive credit report can help consumers access a loan at a competitive rate of interest.



Stephanie