Planet Funds

Some parents are so desperate to see their children do well in sport they are splashing £3,000 a year on activities and equipment.

A poll by finance firm ING Direct has shown the extent to which mums and dads now go to to ensure kids stay active.

Many are splashing around £700 every 12 months on equipment, transport and other costs, but the most dedicated are spending far more than this.

A portion of 1,450 parents polled by the company are spending £3,000 a year, with some doing so because they believe their children can make it to the top of their sport.

Some mums and dads are cutting back on their own social lives so they can transport children to and from sport-related dates, the poll revealed.

ING Direct chief executive Johan de Wit said the Olympics could be inspiring some parents to plough money into childrens’ interests.

He added some mums and dads could be “shocked” by the size of some sports-related costs.

The same research showed Dame Kelly Holmes is top of the tree in terms of who is the most inspirational sports icon.

ING also said some parents said sport was seen as a good way of keeping children away from things like television and computer games.

Article supported by Physioroom.com, Arch supports suppliers.

The European Union has told mobile phone companies they should reduce the fees they charge for routing calls that originate on networks other than their own.

Officials want firms to reduce these rates, known as ‘termination’ fees, by 70 per cent to 2011.

Commissioners told the industry call termination markets in the EU need a ‘regulatory plumber’.

Operators reacted by defending the reasons behind the charges and warning customers would be hit elsewhere as firms try to recoup lost revenue.

Telecommunication commissioner Viviane Reding said: "`Call termination markets in the EU need a regulatory plumber.

"Over the next three years, I expect greater consistency and coordination to bring the costs for mobile-phone calls down by around 70 percent.”

According to analyst ING, mobile companies operating in the EU get about 15 per cent of their income from termination charges.

Richard Feasey, Vodafone’s director of public policy, said reducing these charges could see some customers paying to receive calls – a practice already used in the US but not present in Europe.

According to the Commission, mobile termination rates are nine times more than the fee for completing a call on a fixed network.

This has been allowed in the past so mobile firms could get extra cash while building up their networks.

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Mobile phone operators are facing a challenge from Eurpean Union officials over the prices they charge for routing calls that don’t originate on their networks.

Regulators are proposing that  Vodafone Group, Deutsche Telekom AG and others slash such ‘termination’ fees by 70 per cent over the next three years.

Providers reacted by saying this could lead to a US-style system, with customers paying for received calls as companies recover lost revenue.

European telecommunication commissioner Viviane Reding said: "Call termination markets in the EU need a regulatory plumber. Over the next three years, I expect greater consistency and coordination to bring the costs for mobile-phone calls down by around 70 percent.”

The EU executive arm, the European Commission, also said differences in the rates between countries should be reduced.

The European Telecommunications Network Operators’ Association reacted by saying: "A radical change of cost methodology for mobile termination rates moreover risks having a detrimental effect on a highly competitive and innovative sector."

The GSM Association, which represents more than 700 operators, echoed this sentiment, saying a Europe-wide approach to setting rates was simply not needed.

It said costs vary across the continent because of differences in population density, licence fees and labour costs.

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Pessimism surrounding the UK’s economy and the tightening of household budgets is causing consumers to avoid buying payment protection insurance in order to cover their outgoings.

An increase in the cost of living has led to 70 per cent of Brits to say they are not willing to take out payment protection insurance (PPI) in order to pay their mortgage, insurance premiums and other outgoings, according to research from the Association of British Insurers.

More than 90 per cent of Brits believe the UK’s economy is in a worse position than the same time last year, with a further 80 per cent expecting economic conditions to worsen in the coming year.  The public’s pessimism is reflected by companies, who are cutting costs, resulting in a rise in unemployment.

Despite this pessimism, and the acceptance by two thirds of people that they would not do well if made redundant, Brits refuse to seek financial support through purchase protection insurance.

Nick Kirwan, the ABI’s assistant director of health and protection insurance said:

“It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy given the uncertain economic outlook. It’s clear that we need to work harder to get the message across about the peace of mind and value that having the right protection insurance gives individuals and families. We recently published a consumer factsheet on protection insurance products. We hope this will encourage more people to consider protecting their most important financial assets - their income and their home.”

50 per cent of survey respondents had life insurance, while 39 per cent has no life insurance, payment protection insurance nor mortgage payment protection insurance (MPPI).

Rebecca Driver, the ABI’s director of research and chief economist said that “Given the economic outlook and the risk of rising unemployment, people need to develop strategies to protect themselves better.”

According to City Analyst Capital Economics thousands of the employed middles classes are taking on second jobs to deal with the rising cost of living. These workers include lawyers, police officers, business analysts, and IT workers taking on freelance work, selling things on eBay or working as chauffeurs. Compared to previous periods where the cost of mortgage insurance and living as a whole has risen there has been a five per cent rise in the number of people working second jobs bringing the current total to 1.15million.

We all grumble when we receive a letter from the bank informing us that we are X amount overdrawn, we failed to make our monthly payment or our payment to X failed due to lack of funds.

We grumble at ourselves for not controlling our money better, we grumble at our employer for messing up the automated wage payments and we grumble knowing that our bank will be adding anywhere between £15 and £50 to our debt for the privilege of being told via a letter.

Well there is some good news.

In April 2006, the OFT (Office of Fair Trading) concluded that any default charge levied by a bank or building society over £12 would automatically be presumed unfair with relation to the Unfair Terms in Consumer Contract Regulations.

BBC2s ‘The Money Programme’ estimated with the aid of several ex bankers that the real cost to the banks for sending a letter or administering a bounced cheque is somewhere between £2.50 and £4.50 meaning that a huge amount of the charges levied are in fact profit.

These excess bank charges can be claimed back from as far back as 6 years.

Currently the OFT and banks are fighting a legal case in the courts which will decide whether current and future registered claims will be paid out and at what level. On 24th April 2008 the OFT won the first preliminary part of the ongoing legal test case which is a very positive step in favour of the consumer. At this present time and for the foreseeable future claims are still on hold.

So, should you put in a claim for your excessive bank charges?

The answer is yes as the claim will be for the 6 years (5 in Scotland) prior to the claim being received. Delaying could cost you money.

How can I claim my bank charges back?

Well there are 2 ways. You can either handle the claim yourself which involves collating your bank statements for the last 6 years, constructing your claim and contacting your bank (template letters are available from sites such as MoneySavingExpert), or you can use a law firm / claim handling company to process the claim for you.

What are the pros and cons of DIY bank charge claims?

Well the obvious pro is it’s free bar the cost of acquiring lost bank statements (the maximum charge for this is around £10) and the time to process the claim.

The con is the time you have to invest in the subject to ensure your claim is in the best possible shape. If you are legally inclined and have spare time on your hands this may be the option for you.

What are the pros and cons of using a claim handler for bank charge claims?

Well here the obvious negative is the cost. A claims handler will typically charge between 25% and 40% of the eventual settlement with nothing to pay up front or should your claim fail.

The pro is that your claims handler should know all the legal background and will be up to date will the current state of affairs. Their experience should result in a more thorough claim. Also using a claim handler is more fire and forget than the hands on approach. Once you have passed on your details most of the work should be done for you, leaving you the time to enjoy the finer things in life like washing up, changing nappies and trying to get some sleep (maybe that’s just me then).

Claims handlers might also make you aware of other things you can claim for such as an accident or the lesser known PPI Claims.

How much can I expect back if my bank charges claim is successful?

Well I’m afraid it’s a bit of a how long is a piece of string question. If you have been penalised with more charges then you should receive more back. I have read about people who have received £200 and I have read about people who have received £4000. This was of course from before the bank took the issue to court and all claims were put on hold. Personally with grocery bills growing every week and the feeling that somebody has just stolen from me every time I fill up my car with diesel, I welcome any cash back.

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

Many Britons who own homes are attempting to enhance their disposable incomes through equity release, according to intune group.

People are turning to equity release products to make payments on their credit cards and mortgages, as well, according to Mark Gettinby, finances director of the Help the Aged subsidiary.

He urges people to speak with an expert before making a decision, however.

Many people do not understand the details of equity release plans, says Mr. Gettinby. They will be better served if they get professional advice before continuing.

Dean Mirfin, business development director for Key Retirement Solutions, agrees with Mr. Gettinby, saying borrowers, especially retired homeowners, can avoid paying too much if they speak with a loan professional first.

Retirees may not get the best advice or find the best deals from equity release providers who mostly interested in making a sale.

Average rates of return on savings are falling below the rate of inflation, and the National Building Society is demanding that savers be warned when their high introductory rates are reduced.

Savers are enticed to banks and building societies with offers of high interest rates, but after an initial period, those rates often fall below the Bank of England’s base rate.

Nationwide is asking that savers be notified when their rates will be lowered and that they be offered better deals by their savings providers.

Many people do not pay attention to changes in their savings rate, and providers are taking advantage of their lack of interest.

Savings providers compete for customers in this highly competitive sector, according to Matthew Carter, director for savings at Nationwide.  In this environment, some providers seem less interested in taking care of their customers and more interested in profits and best buy status.

Many companies advertise introductory offers today, challenging savers who want to make good decisions.  Mr. Carter believes that savers should receive notice just as mortgage borrowers are notified when their rates are due to change.

Savers might be better off looking for savings plans with a constant rate of return rather than jumping from deal to deal, says Lisa Taylor of Moneyfacts.co.uk, the personal financial information firm.

She says savers can avoid the complicated process of starting new savings quite often by finding an account with a good interest rate.  Today’s market changes constantly and people who shop around for new deals spend a tremendous amount of time and energy when they might be equally well served with an account the performs well on a consistent basis.

The base interest rate was reduced by .25 percent in December, however, savers’ earnings have dropped by a greater factor than that.

In some cases, the savings rate has been cut by more than double the amount of the base rate cut.  Many accounts that carried exceptionally low rates have seen a much higher proportional reduction, says Ms. Taylor.

She points to Halifax Liquid Gold as an example.  Prior to the rate cut, the company’s accounts already offered a low 1.36 percent rate.  When the rate was cut by .36 percent, more than one-quarter of the original rate vanished.

Other big name lenders cut their rates, as well, including Alliance & Leicester, Abbey, HSBC, Halifax, Lloyds TSB, NatWest, and the Royal Bank of Scotland.

The current rate at Moneyfacts.co.uk is 3.77 (no notice at £1K), a rate lower than the rate of inflation.  Ms. Taylor fears that many savers will lose value in their savings accounts.

She says that long standing customers who have owned an account for quite some time are likely to be the worst hit.  Unfortunately, their loyalty is not paying them back.

New research finds that Britons will transfer nearly £9billion in credit card debt from one company to another in the new year.

Abbey National Financial surveyed more than 1,000 adults and estimates that Britons will transfer three million credit card balances.

During the first quarter of 2008, balance transfers are expected to average £2,666.  Eight percent of men surveyed and seven percent of women reported that they plan to take advantage of some kind of balance transfer offer.

The average balance transfer for men was £3,395.  In contrast, women expected to transfer an average of £1,820.

Geographically, the largest balance transfers were reported by those living in the Midland (£3,021), followed by those in south-east of England (£2,900).  Residents of northern England, Scotland and Wales reported smaller balance transfers (£2,501, £2,154 and £2,022 respectively). 

Roger Lovering, managing director of Abbey Credit Cards, says he is glad to see that many Britons are considering ways to get control of their finances.  People are often surprised by credit card bills after the holiday season.  Mr. Lovering advises people to be aware of their financial condition during the festive season. He urges them to watch what they add to their credit cards to avoid excessive repayments.

Millions of Britons say they will change credit card companies in 2008.

New research conducted by MoneyExpert.com indicates that 2.6 million are planning to switch, while 6.6 million report they will stay with their current provider.  Those who do not switch will pay an average 16.82 percent interest rate.  The study further suggests that many people are discouraged by recent news of credit application rejections.

During the month of January, nearly 7 percent of credit card customers will change providers.  Experts advise them to pay down their debt as much as possible during the interest-free period.

Sean Gardner, chief executive of MoneyExpert, warns credit card companies to expect a large volume of changes as Britons recover from their Christmas buying binge and try to work through the “financial hangover” of the New Year.

Mr. Gardner says he is glad to learn that many people are thinking of ways to pay down their debt.  Still, he worries that too many will simply add Christmas spending to their debt load.  In the long term this will add to their financial woes.

He advises people to cut their borrowing costs as a first step toward containing their debt.  After transferring their balance, they should continue to make repayments.

Mr. Gardner warns borrowers to use caution because many balance transfer offers that feature 0 percent interest are accompanied by high transfer fees.  A fee of three percent could cost the borrower an additional £60 on a £2,000 debt transfer.

More than 70 percent of credit cards currently offer a transfer deal.  Egg and Virgin Money have the longest interest-free period, at 15 months.

Age and geography appear to be a factor in the decision to change credit card companies.  Customers in the 25 to 34 age group are most likely to change.  Fifteen percent of customers in Scotland are plan to change, compared with seven percent in the South-East and six percent in London.