Everyone heads online to compare personal loans before they sign up for a deal, right?

Wrong.

New research has found that a staggeringly high proportion of Brits simply take out the first unsecured loans that they receive a quote for. Hundreds of thousands of borrowers are therefore risking paying way more for their loan than they need to as they have failed to check out the best loan rates.

With the research also discovering that over £1.5 billion of debt consolidation unsecured loans will be agreed this spring, consumers are being urged to compare personal loans carefully rather than simply taking the first deal they see.

One third of people don’t compare personal loans before buying

The research from Sainsbury’s Finance found that one in three Brits do not research the best loan rates before signing up for a personal loan. Rather than consulting the ‘best buy’ tables in a newspaper or heading online to compare loan rates, a third of people simply sign up for the first loan that they receive a quote for.

Steven Baillie, Head of Loans at Sainsbury’s Finance, said: “This year, as much as £5.8 billion could be taken out in personal loans for debt consolidation purposes, and given that the difference between a market leading rate like ours and rates available on the high street could be as much as 19 per cent APR, choosing a non-competitive rate could cost you hundreds of pounds in extra interest repayments.”

Over a third of personal loans are to consolidate debts

The survey also estimates that around one third of the unsecured loans taken out in the first quarter of 2011 will be to consolidate other debts. This equates to 139,000 loans with a total value of £1.55 billion.

Mr Baillie added: “Taking out a loan to consolidate disparate debts from previous loans or credit cards can save a significant amount of money in terms of monthly outgoings, especially if you have debt with store credit cards which can have extremely high APRs.”

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If you aspire to lead the way in terms of fashions and trends, 2011 should see your purse or wallet full of prepaid credit cards. That’s the view of a leading card service provider who believes that prepaid cards are set to be 2011’s ‘must have’ financial product.

Heading online to compare prepaid cards is set to take off this year as the popularity of these cheap and practical cards grows and grows.

2011 set to be the year of prepaid cards

According to Global Prepaid Exchange, a company who provide services to the growing prepaid card industry, 2011 is set to see a surge in brand new, innovative payment methods, such as prepaid credit cards.

Kevin Harrington, managing director at the firm, said: “There is a gradual move towards prepaid credit cards and retailers prefer to generally sell plastic cards because it’s easier for them to administer.

“The growth on consumer use of prepaid cards is slightly ahead of business. In the consumer market they are the perfect products for gifting.”

Prepaid cards ideal for using as a gift

One of the main reasons that prepaid credit cards are growing in popularity is because they can be topped up with cash and used instead of a voucher as a gift. You can load up prepaid cards at many financial institutions including banks, building societies and the Post Office. And, as there is no credit facility, there are no interest charges and the cardholder cannot go overdrawn.

Head online to compare prepaid cards

If you are looking for prepaid cards for yourself or as a gift, the internet can help you compare prepaid cards. With dozens of cards on the market, make sure you compare not only fees and charges but also the locations where the card can be topped up. Make sure also that the card offers an online account management facility.

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In general, life insurance isn’t just something you sign up for, pay premiums on, and then leave to its own devices. Life circumstances change and, when they do, they can affect the amount of insurance you need, and the premiums you pay. Compare life insurance policies before buying, and once you have a policy, remember to contact your insurer in any of the following situations.

1. If you quit smoking and don’t use tobacco-based products for 12 months

Quitting smoking and forgetting to tell your life insurer may mean that you’re paying premiums that are too high. Research by Sainsbury’s Life Insurance showed that former smokers are paying an unnecessary £316 million per year in premiums by not telling their insurers they have stopped smoking.

2. If you experience changes in your health, you should inform your insurer

Your ability to buy additional life insurance could be affected, and you may be advised to change from having term insurance to buying a permanent policy to fix your rates at their current level.

3. If you get a divorce

Some settlements may require that one partner take out life insurance to provide continuation of support payments to the former spouse in the event of the insured party’s death. This may also be the time to change named beneficiaries on a policy or set up a trust if children become the beneficiaries.

4. If you have a child

Consider increasing the amount of life insurance cover you have with every child you add to your family. Besides paying off the mortgage, survivors would be faced with child care costs, education fees, and many other costs. Partners who stay home to raise children provide services that are very expensive to replace in the event of their death. Many families purchase decreasing term life insurance, where the amount of cover diminishes over the policy term as the amount owed on a mortgage decreases. This can be an inexpensive form of term life insurance for young families.

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We would all like to make hundreds of pounds in just a couple of minutes. However, without a high paid job or a win on the National Lottery, most of us never get the opportunity to make big money quickly.

However, there is a simple way that you can save over a hundred pounds in just a minute or two. All you need is an internet connection and some basic information about your energy usage. Armed with these items, you can compare gas and electric prices quickly, saving a significant sum in the process.

Head online to compare gas and electric

With energy prices rising on a regular basis, finding cheap gas and electric is increasingly difficult.  However, it is now possible to find the best deals for your home energy supply online at the click of a mouse.

By using an online comparison site you can compare gas and electric prices from the UK’s leading energy companies. The information you will need to undertake a comparison will generally include:

•    Your postcode
•    Your existing energy supplier
•    Your average gas usage (either cost or amount)
•    Your average electricity usage (either cost or amount)

By entering these details into an online comparison service, you will be able to determine whether there are any deals that can cut your bills.

Cut electric bills in a couple of minutes

One of the main advantages of heading online to compare gas and electric is that you will have an analysis of your potential cost savings within a couple of minutes. With annual savings of £100-£200 to be made by switching supplier, benefiting from cheap gas and electric could be the easiest and quickest way that you make a three figure sum. So, what are you waiting for? Compare energy suppliers now.

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First it was dial-up through a modem, then wired and now wireless broadband.

Accessing the web has become easier and easier over recent years thanks to technological advances and improved Wi-Fi access. There are loads of advantages to using the internet via wireless broadband and it may not be nearly as expensive as you think.

Advantages of wireless broadband

Firstly, wireless broadband allows for increased mobility. You can access the web from anywhere you get a wireless signal, which is generally anywhere in your home or garden. You don’t have to run cables through walls or floors as the signal is beamed wirelessly from your router to any PCs/laptops/netbooks within range.

In addition, technological advances in amplifying wireless signals means that wireless broadband technology can now match the speed of a wired connection. And, if you use the best broadband you can enjoy easier access to shared devices such as faxes and printers. Everyone within range of the peripheral device can connect using a wireless connection, resulting in fewer wires and cables.

Compare broadband to get the best deal

There are lots of broadband packages available and they are offered by everyone from your home landline provider to your satellite TV company. The easiest way to find the best wireless broadband deal for you is to head online and compare broadband prices on the web. Many comparison sites allow you to compare various broadband prices and speeds at the click of a mouse.

Many broadband suppliers offer excellent deals if you buy more than one telecommunications service from them. For example, you may choose to buy your home or mobile phone calls from the same company or you may sign up for a subscription television service. These so-called ‘broadband bundles’ can help you save a substantial sum on your monthly telephone and wireless broadband costs.

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Don’t feel singled out if your ADSL broadband connection malfunctions sometimes. It happens to everyone, and often you can fix it yourself without so much as a phone call to your ADSL provider. Of course, when you compare broadband providers searching for the best broadband deal, compare their customer service reputations too. You never know when you may need to ring them for help.

Here are some things to try when you experience trouble with your ADSL or the phone line associated with it:

If you hear a popping noise on the phone line, it probably means the phone line filters are missing or installed incorrectly. If a telephone doesn’t have a filter fitted, install one. Fax machines and Sky boxes also need them. You can get them from electronics stores or from your phone provider, if you need them.

If you have your Sky box and phone going into the same socket, you’ll need a filter with a splitter. They look the same, except the splitter version will have two phone inputs on one end so you can hook up both the phone and the Sky box.

Faulty, missing, or incorrectly installed filters may also be to blame when your ADSL connection drops out if you make or receive a landline call. If all your landline devices (including faxes and sky boxes) have filters, you’ll have to go through and replace them one by one until you find out which one the faulty one is.

If, on the other hand, the ADSL only works if the phone is being used, once again, make sure filters are in place. Also check for noise on the line by dialing 17070 and selecting option 2. If there is noise on the line, there could be water on the line or worn cables. Notify your phone provider.

If you’re using an older PC with a USB modem, make sure you have the latest drivers for your USB modem. You should be able to download them from the manufacturer’s site. Do this before connecting the modem to your PC.

Other things you can do to ensure the best ADSL connection include connecting your modem to the main phone socket in your home, which is probably the one nearest the front door, because that’s where the signal is strongest.

If everything is set up fine but you’re still getting snail-like speeds, sometimes turning your modem off and then back on resets the sync between your equipment and the Internet Service Provider’s equipment. This works a surprising percentage of the time.

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If you’re tired of being stuck inside because of bad weather, you are certainly not alone. Once the sun comes out and it gets warm, you’ll certainly want to get out and play a bit. Why not try some money saving tips for these last few cold weeks of winter weather and plump for a nice day out once the weather turns fine?

1. Save money by making gifts instead of buying them

Mothers’ Day is coming up. Many mothers would love nothing more than your company. Perhaps you could visit her for tea and bring a tin of homemade shortbread. If Mum is a busy working woman, why not make up a batch of homemade one-dish meals and put them in microwaveable containers that she can heat and eat after a long day at work? It will save her money too!

2. When shopping, never underestimate the power of having a list

You won’t notice so much all the attractions supermarkets cleverly place to draw your attention if you’re busy making sure you have everything. And having a list means you’re less likely to forget something and have to go back.

3. Experience the fun of a regular potluck get-together with friends

This is far, far cheaper than going out, and if everyone brings a dish and splits the cost of drinks, it can become a favorite tradition. You could do different activities each time, like playing cards or watching a DVD.

4. Ask your card issuer for a lower rate on credit cards

If your rate’s remained the same for years and you’re in good standing, it can’t hurt to ask; particularly if you hint that you might be looking elsewhere for a credit card. Just asking your provider works more often than you might think.

5. Learn to like drinking water

If you’re addicted to the caffeine in sodas, drink tea instead. You’d be surprised how much money you can fritter away on soft drinks, especially if you regularly hit up vending machines.

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Hopefully you already know that you should compare travel insurance based on cover options and then price in order to find the best travel insurance for your needs. Here are a few case studies from the Financial Ombudsman’s office that highlight some possible problems with claims and how they were resolved, in case it helps you in the future.

These first cases are particularly timely considering the recent earthquakes in New Zealand and Japan. Two policyholders in 1999 had a holiday disrupted by an earthquake. Though the tour operator returned them home at no cost, the policyholders made a claim for curtailment of their holiday which was refused on grounds that curtailment after earthquake wasn’t included. The policyholders argued that Acts of God were not excluded from the policy. This complaint was upheld as reasonable by the Ombudsman’s office and the insurer paid the claim.

Other earthquake survivors were not successful, however. Another policyholder and family were in Cyprus during a series of quakes that required their apartment to be evacuated. The family returned to the apartment but cracks began to appear in the structure, and the policyholder claimed the costs of rearranging the rest of the holiday. The insurer rejected the claim on the grounds that the policy only covered curtailment if the family returned home, not if they relocated their holiday destination. This policyholder’s claim was rejected by the Ombudsman because the family did not return to the UK and because there was no natural disaster cover in the policy.

In another case, a policyholder and his wife returned home to the UK after the policyholder’s mother in Kenya died. The insurer refused the claim on the basis that the policyholder’s mother was not a UK resident, referring to the policy section covering curtailment because of “the death, severe injury or serious illness of an immediate relative resident in the United Kingdom.” However, the Ombudsman’s office upheld the claim saying that regardless of where the mother lived, the couple’s first action would be returning home to the UK.

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Not all types of savings accounts are suitable for all needs. Here’s a quick guide to which savings accounts work with which savings goals.

1. Instant Access Savings Accounts

These variable rate accounts make it easy to withdraw your money quickly, with an ATM or by making online transfers. Consider this type of account for your emergency savings. You don’t want to come up on a financial emergency and have a difficult time getting access to your emergency funds. Some instant access accounts limit the number of withdrawals you can make without losing interest, so be aware.

2. Regular Savings Accounts

These require you to deposit money every month, so they’re terrific for those who are trying to build up the discipline to save regularly. You will probably be limited in how many withdrawals you can make per year, and you may be limited as to how much money you can put into it in a given month. These accounts aren’t so good for those who have a fairly large lump sum to invest at once.

3. ISA Savings Accounts

ISAs allow you to earn interest tax-free, so they are a great place to start when you make the commitment to put money aside. With other savings accounts, your returns are diminished because interest is taxed at your usual rate. But with ISAs, interest is tax-free. Even if the interest rate on an ISA is lower than on other accounts, you could end up with a better return depending on how much it saves you in tax. Everyone should have one of these if possible.

4. Fixed Rate Bonds

With these, you get a fixed interest rate as long as you set your money aside for a set period of time. While interest rates are higher than with other accounts, you do give up access to your money during the term of the bond. You can get these for periods of one to five years, and the longer you’re willing to set aside your money, the better your return. If you expect interest rates to go up, choose a shorter term, but if you expect them to go down, select a longer term to maximise your return.

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Splitting up with a spouse or partner can be tough.

As well as issues surrounding your personal belongings, your home and your children, financial concerns when separating can be extremely stressful. In addition to dividing savings and assets, you may have joint bank accounts that you need to deal with.

Closing joint bank accounts as soon as possible when splitting up should be a priority. That is the view of a leading consumer debt specialist who urges couples to avoid ongoing financial arguments by closing their joint current accounts as soon as they can.

Close joint bank accounts to prevent the possibility of adverse credit

Una Farrell, a spokesperson for the Consumer Credit Counselling Service (CCCS), told the Daily Mail that couples going through a break-up should also divide up cash equally, cut up cards liked to joint bank accounts and close bank current accounts as soon as possible.

Closing joint bank accounts means that an ex-partner is unable to use the account to run up debts or to empty an account of its contents without the other party knowing. It also prevents one party misusing the account, leading to an adverse credit record for both account holders.

Recent CCCS research found that one of the main reasons for financial difficulties was the end of a relationship. In 2010, 41,500 people sought help from the charity after being left with debts after a break-up – an increase of 38 per cent on 2009.

Open your own single current accounts

When separating from your partner or spouse, you will both have to open current accounts in your sole name. Head online to research the various bank current accounts that are available and find one that offers all the facilities that you need.

It may be wise to consider opening your account at a different bank from your ex-partner in order that your financial affairs are kept totally separate.

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