Latest news with #financeexperts
The Sun
3 days ago
- Business
- The Sun
11 steps to be £1,000s better off even if you're on a low income – including the 50/30/20 rule
STARTING out on the journey to improve your finances can feel daunting - it's hard to know where to start. But small steps can have a huge impact, we spoke to top finance experts to pull together an 11 step guide to being financially better off within six months - and you could save THOUSANDS of pounds. 1 Here's how to get started: Set a budget To be better off, you need to live within your means. Understand your income and outgoings, and then create rules for how to spend your money. Graham Wells, from Gro Wiser financial coaching, says: 'Trying to fix multiple aspects of your finances in one go is unlikely to work, so you need to prioritise. "Be realistic and focus on small steps that will compound over time.' The 50/30/20 rule is one way to divide up your spending, where 50% of your money goes on essentials like the rent or mortgage and food shop each month, 30% on nice-to-haves like meals out and new clothes, and 20% into savings. You may need to tweak the percentages depending on your income and outgoings, or if you want to save more. Six month savvy: Someone earning £1,500 a month after tax could save £1,800 in six months by following this rule and putting 20% into savings monthly. Automate it Set up direct debits so that your money is automatically funnelled to where it needs to be. For example, you might set up one to pay off credit card debt and another to transfer cash into a savings account. Automating the process means you don't need to remember to do it manually and removes the temptation to spend on other things instead. "Set up the direct debits for payday - if you wait until the end of the month to see what's left, you can be almost certain there will be nothing," says Sarah Coles from the wealth manager Hargreaves Lansdown. Six month savvy: Use the round-ups tool on your banking app. This rounds your spending to the nearest pound and puts the difference into savings. For example, if you spent £1.87, it would be rounded to £2, with 13p going into savings. These small amounts really add up over time. Check your bank statement It's easy to lose track, so check for any subscriptions, membership or services that you might have forgotten about and no longer need. Do you use all of those TV streaming services? When was the last time you went to the gym? Check you are getting the best deal on bills like your mobile phone, broadband and car insurance. If you are out of the initial deal period, you are probably overpaying. Six month savvy: Research by Citizen's Advice found that a quarter of UK adults have accidentally taken out a subscription, often because they didn't realise a trial period had ended or that the deal had automatically renewed. According to Money Wellness, we each waste about £170 a year on unused subscriptions. Get free money Use cashback websites to earn money on those essentials that you do need to buy. Sites like QuidCo and Topcashback offer money back on purchases such as insurance, holidays and clothing: just set up an account, click through to the retailer from the cashback website, and then buy as usual. Cashback is never guaranteed so only use this for things you need to purchase anyway. Switching bank accounts is another way to bag free cash; banks often pay bonuses to new customers. Be sure to check the requirements to make sure you qualify. Six month savvy: Currently on QuidCo you could get 7.5% cashback at Expedia, while at Topcashback you could get 15% cashback at Currys. Topcashback says its users earn on average £345 a year. Banks including Santander, First Direct and Lloyds are currently offering switching bonuses of up to £180. Pay down debt Focus on clearing expensive debt before you worry about savings. The interest rates on credit cards and loans are higher than you can earn on savings, so will undo your efforts. Check if you are eligible for a 0% credit card, where you can clear your debt without racking up extra interest charges. Ideally you should have a direct debit to clear your credit card in full each month, but if you can't afford this try to pay off more than the minimum amount. Six month savvy: If you had £1,000 on a credit card charging 24% and paid £50 a month, it would take two years and two months to clear and you'd pay £252 in interest. If you paid £200 a month, you would clear it in six months and pay £58 in interest. 'My Lifetime Isa has changed my finances - I could get £15k free cash' When Antony Jones first heard about the Lifetime Isa, he thought it sounded too good to be true. But since opening an account, he has pocketed £4,000 in free cash. Lifetime Isas can be opened by those aged 18-40, and you can save up to £4,000 a year in them until you are 50, which you can put into cash or invest. The best thing is that you get a 25% bonus from the government - so if you save £4,000 in a year, you get £1,000 on top. If you saved the maximum every year from age 18 to 50, you'd get £32,000 free cash in total. And because the bonus gets paid a month after you put money into the account, you can start to feel better off very quickly. 'I only regret missing out on those years when I could have been saving into a Lifetime Isa but didn't know about them,' says Antony, 39, who lives in Cardiff and opened his account in 2021. He could get £15,000 in total from the bonus if he keeps saving until he is 50. The one catch is that the money can only be used either to buy your first home or after age 60. Antony, who works as a software developer, already has a mortgage so wants the money to boost his retirement savings. He has set up a direct debit to invest £330 a month through the investment platform AJ Bell, and splits the money between two funds: Vanguard LifeStrategy 80% Equity and Vanguard Global All Cap Index. 'I opened a Lifetime Isa because I wanted the bonus, but it's completely changed my finances. It has helped me learn about investing and do more of it,' says Antony. Set up a savings account Experts recommend having three to six months' of outgoings in an easy-access savings account in case of an emergency. Make sure you are getting a good rate - money in your current account won't earn interest. Top easy-access accounts are currently from Chase Bank and Trading 212, paying almost 5%. You can then put some money in a fixed savings account, where you may get a higher rate but can't access the money for a set period. Alice Haine, from the investment firm Bestinvest, says: "A small amount set aside each month will kickstart your journey towards financial security, with each top-up helping to ease the stress when a sudden cost lands in your lap." Six month savvy: For those just starting a regular saver account can be a good option - these pay a higher rate but limit how much you can save. For example, you can save up to £300 a month with First Direct and earn 7%. If you maxed out the account, after a year you would have saved £3,600 and earned £135 in interest. Pay into a pension Retirement might be decades away, but it's still important to save for. If you are 22 or over and earning at least £10,000, you should be automatically put into your company pension scheme. Usually you contribute 5% of your salary into a pension and your company pays in 3%. Ask if your employer will pay in more if you increase your contribution too. Six month savvy: Pensions are for the long-term so you won't see results in six months, but if you contribute £50 a month from age 22 and your company £30 a month, and it grew at 5% a year, you would have more than £108,000 by age 60. Start investing Investing is the best way to grow your money over the long-term, but it comes with risks because the stock market can go down as well as up. You should only invest money that you are able to tie up for a minimum of three years. The simplest way to start is with a robo-investing app, where you answer some questions about your finances and how much risk you want to take, and are then guided to a ready-made investment fund. You can often start with as little as £1. Six month savvy: If you invested £25 a month into a fund that grew at 6% a year, after a year you would have £309, and after 10 years you would have £4,096. If you were able to save £50 a month, you'd have £617 after one year and £8,194 after ten years. Set some boundaries Identify your money weaknesses and set some rules to help you tackle them. If you are an impulse buyer, for example, delete shopping apps from your phone. Consider the 24-hour rule, where you leave an item in your basket for a day to give you time to think about whether you really want it. Six month savvy: Use a spreadsheet or budgeting app to record your spending and break it into categories, says Wells: 'This can be transformational. "It helps people understand more about their spending behaviours and what changes they would like to introduce.' Be kind to yourself There is often a feeling of guilt associated with money and a sense that we should know more, says Wells, but it's not something many people are taught. No one is perfect and there will be months that you get off track. Coles adds: 'Don't lose sleep about the imperfections in your finances. Focus on what you have achieved, rather than what is left to do.' Six month savvy: Write a list of the things that are worrying you, says Haine: 'Sometimes the things causing the most anxiety can be easy to fix. "Doing everything at once will feel overwhelming, so focus on each money woe one at a time.' Get help Improving your finances can be overwhelming, but there is support available if you need it. Charities like Citizens Advice and Step Change are an important resource if you are struggling with debt. The Money Helper website offers guidance on everyday money as well as savings and pensions. For investing help, be sure to use regulated websites for tips such as Hargreaves Lansdown and AJ Bell. I'm a psychologist - here are three tips to change your money mindset Simonne Gnessen, founder of Wise Money Financial Coaching: Reframe it What messages do you tell yourself about money? Saying 'I'm bad with money' or 'I always overspend' can unconsciously encourage you to behave in that way. Try to notice how you think and feel about money, and reframe it. Say 'I'm making progress' and 'I am trying' instead, and focus on the wins. Be curious Don't judge yourself if you get off track or overspend. Instead try to explore what caused you to do that and consider what you could have done differently. Coming from a place of curiosity rather than judgment means you will be more open to change. Journaling can help you explore your feelings and spot behaviour patterns. Set a money date Make it something you enjoy rather than a chore. Schedule regular time for money matters, whether it is five minutes to top-up your savings or an hour to comb your bank statement - this stops tasks building up and becoming overwhelming. Set a time to check-in with your partner; do it over coffee and cake rather than at home surrounded by paperwork, to make it feel like a treat. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
Yahoo
06-08-2025
- Business
- Yahoo
UK asset finance identity fraud jumps 61% amid shifting criminal focus
UK identity fraud in the asset finance sector has surged by over 60% since 2017, according to new analysis from GBG, a provider of global identity and fraud intelligence. While the sector remains smaller in volume compared to banking and insurance, experts warn its growth trajectory is a red flag for lenders and lessors alike. Cases of asset finance fraud increased from 970 in 2017 to 1,560 in 2024 — a 60.82% rise — marking it as the third-fastest growing sector for identity fraud over the seven-year period. Although it accounted for just 0.65% of total fraud cases in 2024, the sharp rise suggests fraudsters are increasingly eyeing niche finance segments that may be more vulnerable to synthetic IDs or weak digital onboarding checks. "Criminals are clearly diversifying,' said Gus Tomlinson, Managing Director at GBG. 'While plastic cards and bank accounts remain the biggest targets, we're seeing significant upticks in sectors like asset finance, insurance, and communications —areas that haven't traditionally been the focus.' The study, which analysed identity fraud trends across nine sectors between 2017 and 2024, revealed that insurance fraud saw the most dramatic rise — up by 211%, with cases jumping from 4,215 to 13,108. The communications sector followed closely, with a 114.77% increase. Plastic card fraud remains the most common identity fraud type, accounting for over 94,000 cases in 2024 — an increase of 60% from 2017 and now comprising nearly 40% of all cases. Bank account fraud, while growing at a slower rate of 12.42%, still makes up more than 24% of all fraud. More traditional finance areas saw declines: mortgage fraud dropped by 33.33%, and loan fraud fell 22.16%, indicating possible improvements in fraud detection or a shift in criminal preference. 'Fraudsters appear to be moving away from highly regulated sectors and toward those with faster access to funds or less stringent verification,' Tomlinson noted. Volatility in recent trends Interestingly, asset finance fraud recorded a dramatic year-on-year drop of 80.09% between 2023 and 2024, indicating that either fraud prevention measures have been tightened or criminals have redirected their focus. By contrast, the communications sector saw a 72.72% surge in the same period, becoming a key focus for fraudulent activity in the digital age. Methodology GBG's analysis is based on identity fraud case data collected from 2017 to 2024 across multiple sectors: Cifas Fraudscape. The study tracks changes in fraud volume, percentage share, and sector rankings, providing insights into both long-term trends and short-term year-on-year shifts. The data encompasses over 239,000 identity fraud cases recorded in 2024, up from approximately 174,500 in 2017. "UK asset finance identity fraud jumps 61% amid shifting criminal focus" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
09-07-2025
- Business
- Yahoo
Longest 0% balance transfer credit card deals of the week, 9 July
Credit cards aren't just about spending. They are also powerful tools that, when used wisely, can help you save money, manage debt and even earn rewards. Whether you're looking to cut down on interest payments, earn cashback on everyday purchases, rack up air miles for your next holiday, or avoid fees while traveling abroad, there's a credit card tailored to your needs. In this guide, we'll break down the best options on the market for balance transfers, purchases, cashback, air miles and travel spending. We'll show you how to use these cards to your advantage, ensuring you get the most value while avoiding common mistakes. If you're struggling to keep up with credit card payments, a balance transfer credit card can be a lifesaver. These cards allow you to transfer existing credit card debt onto a new card with a 0% interest rate for a set period, potentially saving you hundreds of pounds in interest. Read more: How your health can affect your pension However, there are some crucial rules to follow to make the most of these deals: Always pay the minimum monthly repayment. Missing a payment could result in losing your 0% interest deal, incurring fines, and damaging your credit score. Clear the debt within the interest-free period. To avoid paying interest after the promotional period ends, make sure you can pay off the entire balance within the 0% timeframe. Don't use the card for new purchases. The 0% deal usually applies only to transferred balances, and using the card for new spending could result in hefty interest charges. Check your credit score. The best deals are often reserved for those with a strong credit rating, so it's worth checking your score before applying. Kate Steere, a credit card expert at personal finance comparison site said: 'NatWest (NWG.L) still leads the pack this week with 34 months at 0%, but it faces tough competition from MBNA and Virgin Money, who are both offering 33 months at 0% with a much lower balance transfer fee of 2.99%. "The longest 0% deals always come with these painful, percentage-based balance transfer fees. So if you're in the market for a balance transfer and don't think you'll need such a long period to clear your card debt, then first consider the longest no-fee deals on the market (Santander [BNC.L] currently offers 15 months with no transfer fee). But if you do know you'll need longer to clear your debt, then it's worth taking a slightly shorter 0% term to get a lower balance transfer fee.' A 0% purchase card allows you to make new purchases without paying interest for a set number of months. This can save you thousands compared with using a standard credit card, assuming you pay off the balance during the interest-free period. Read more: UK house prices stagnated in June as market struggles to regain momentum These cards are perfect for planned, necessary purchases. Think of them as a tool for managing big buys such as a new TV or essential home improvements. Let's say you take out a 0% purchase card with a 10-month interest-free period and spend £2,000 on new appliances. If you repay £200 each month, you'll clear the debt before the interest kicks in. However, if you still have a balance after the 10-month period, you'll start accruing interest at the standard rate, which can be as high as 27% annually. Key points: 1. Make sure to pay at least the minimum each month to keep the 0% deal. 2. Borrow only what you can comfortably repay within the 0% period. Steere said: 'TSB currently has the longest 0% purchase deal on the market at 25 months, narrowly ahead of M&S (MKS.L) and Barclaycard (BARC.L) at 0% for 24 months. "If you're planning a large expenditure, like a summer holiday or some new garden furniture, the current range of 0% purchase cards could offer a handy way to spread the cost. None of these cards come with annual fees, but all of them revert to very standard (read 'punishing') rates after the 0% periods end. If you haven't cleared your balance at that point, look at a balance transfer deal.' A cashback credit card rewards you with a percentage of your spending, effectively giving you back some of what you spend. For example, if your card offers 1% cashback and you spend £100 on groceries, you'll earn £1 back. This cashback is typically credited to your account or added to your statement. Read more: How to start investing with an employee share scheme Things to watch out for: 1. Limits: Some cards cap the total cashback you can earn. 2. Introductory offers: Cashback rates might only apply for the first few months. 3. Restrictions: Some cashback offers are limited to specific purchases or retailers. 4. Minimum spend: Some cards require you to spend a certain amount to qualify for cashback. Steere said: "Amex (AXP) currently offers the highest introductory cashback rate: 5% (up to £125) for the first five months. After the five months, with the Everyday Amex you can earn 0.5% ongoing cashback (1% on annual spend over £10,000) or you can upgrade to the Amex Cashback Credit Card — which is currently free for the first year (£25/year thereafter) and lets you earn 5% (up to £125) for the first three months. "Afterwards, you can earn 0.75% ongoing cashback — the extra cashback covering the card fee once it kicks back in, provided you spend £10,000 on the card annually. However, if you want an instant welcome bonus, then Prime members can get a £50 Amazon welcome gift card with the Amazon (AMZN) Barclaycard.' If you travel frequently, a credit card for air miles can help reduce the cost of flights and even unlock perks like flight upgrades and hotel stays. By using these cards for everyday purchases, you can earn points that can be redeemed for flights with your favourite airline's loyalty programme. How it works: 1. Earn miles: Points are usually earned based on the amount you spend and the class of your ticket — premium tickets often earn more points. 2. Redeem points: You can use points to cover the cost of flights or upgrades, though taxes and fees may still apply. Steere said: 'For big rewards, the British Airways (IAG.L) American Express Premium Plus Card offers 30,000 Avios when you spend £6,000 in three months, while the Barclaycard Avios Plus Card gives 25,000 Avios for spending £3,000 in the same period. "Virgin Atlantic fans can earn 18,000 points with the Virgin Money Virgin Atlantic Reward Plus Credit Card by making their first purchase within 90 days. Just remember the cards with the biggest introductory reward offers are also the ones with the largest annual fees.' Planning a trip abroad? A specialist travel credit card can save you a bundle by offering near-perfect exchange rates without the usual foreign transaction fees. Most credit and debit cards charge around 3% on foreign transactions, meaning a £100 purchase abroad could cost you £103. On top of that, some cards add a flat fee for every overseas transaction. Specialist travel cards waive those fees, letting you spend abroad at the same rates your bank gets. Read more: How to use your Avios points for more than flight tickets Key points: 1. Avoid cash withdrawals, as they often come with fees and interest. 2. Use the card for spending abroad to enjoy near-perfect exchange rates. Steere said: 'If you're getting ready for the holiday season, there are great offers at the moment to help you avoid currency conversion fees overseas, and you can even earn cashback on your spending (at home or abroad). Just be sure to pay your card off in full each month to avoid paying interest (which would soon outweigh any cashback).' Disclaimer: The opinions expressed are the author's alone (unless stated otherwise) and have not been provided, approved, or otherwise endorsed by the providers listed. Yahoo does not earn any commissions from the lenders, or any other third party from the content in this series.
