There are several million people who are affected by PPI and it’s one of the biggest mis-sold scandals up to date. It is all over the news, social media and even TV advertisements.

Payment Protection Plan (PPI) is a worthwhile topic to talk about for two major reasons:

1. Legitimately, it is a very handy product for people who have agreed on taking financial agreements to protect themselves;
2. It was sold illegally to a lot of people in the UK and in some other parts as well.

First, what is PPI?

This was designed to give you peace of mind when you take out a loan or a credit card and when in the event that you are unable to pay it back for some reason like when you lose your job or fall ill, this insurance will ensure that the payments towards your loan or credit card will still go on even if you are unable to make payments yourself.

Sounds like it’s a good product that has a good purpose, right? It can keep you protected just in case something unexpected happens in the future however, there were instances wherein PPI was sold to people that didn’t want it or were unaware that they were sold this policy. This means that you’ve been mis-sold PPI. The policy was included during the time that you took out a mortgage, a loan, credit card or a car deal with the idea that PPI would cover the payments should you be unable to make payments for the valid reasons mentioned earlier. The loophole here is that policies were sold to people who were not eligible for cover or it could have been sold to you without realizing it – whether it was not explained to you properly when you bought it or you had to take out the PPI to get a better chance of getting approved for the loan.

What happens next?

When you have established that you were mis-sold PPI, the best thing you can do is to check if you can start your PPI claims. There is no deadline yet to make a claim so you should go ahead and see if you currently have a PPI or if you ever had one and you can do this several ways. You can look back through your paperwork of all your mortgages, loans, credit cards or cars you’ve purchased. If you don’t have the paperwork then you can check with your credit report – it lists all the credit arrangements you’ve made that has been active for the last six years.

Once you have all the details, you can go ahead and send a letter to the bank stating that you believe you have been mis-sold PPI and that you want your money back. You can do this by yourself or if you know that you have several mis-sold PPI and it seems like it’s too much work for you, you can go ahead and approach a reputable company that can assist you in making your claim.

You should go ahead and make that claim as you could be due several thousand pounds! Don’t delay and make that claim now – you are entitled to get your money back plus interest.

Other than negotiating for a big raise, there’s not much you can do to increase your monthly income. The best method of taking back some of your hard-earned cash is to cut out some of your unnecessary costs that rack up each month. The problem is that most people don’t want to significantly change their lifestyle in order to save some cash. There are, however, several monthly expenses that you can easily take control of and quickly lower, so you can get more money into your bank account each month without impacting the way you live.  

1. Utility Bills

The first thing you should take a good look at is the amount of money you pay each month to your utility company. During the hottest or coldest times of the year, it’s important to make small adjustments inside of your home, so you can lower your utility costs a bit. One easy thing to do is to simply adjust your thermostat. Lowering or raising the temperature in your home one or two degrees is a small and immediate action you can take that can make a lasting impact on your monthly budget. Using a programmable thermostat makes this easy. Another great idea is to simply turn off the lights in rooms you aren’t occupying.

2. Credit Costs

Next, it’s time to closely analyze your credit cards and whether or not you’re paying excessive costs such as annual fees or high interest rates. First, if you have any balances that can’t be paid off, consider transferring them to a card with a lower interest rate to save some money. If you can’t transfer your balances, try calling your bank and negotiating a lower rate or the elimination of the annual fee if there is one. Of course, the best thing to do is to avoid racking up high credit card balances in the first place.

3. Tax Tips

Another helpful tip to give you more money at the end of each month is to focus on the money you pay in taxes. Before you analyze the amount of taxes you pay at the end of every year, take a close look at your withholding allowances. If you haven’t adjusted your withholding for a long time, you may be due for an update. Allowing the government to borrow a piece of your paycheck each year isn’t the best use of your salary, so you want to make sure you’re not withholding too much.

4. Insurance Savings

Lastly, you can add an instant boost to your income by checking out your insurance coverage. Most people need several different types of insurance, such as car, homeowners, or renters insurance. Instead of finding several different cheap policies offered by various companies, a smart thing to do is to go with one insurance agency and bundle your policies. With a bundled packed of insurance products, you can get the lowest rates and save the most money, without downgrading any coverage.

If you want to maximize your income potential each month, it’s important to look for small changes that you can adopt that can make an impact on the amount of extra money you have left over each month. While it’s difficult to increase your salary, the only real option is to cut back on something. It’s easy to follow these simple tips and watch your savings grow, giving you even more disposable income that you can choose to spend on the things you enjoy in your life.

As a final note, to be a really effective saver you need to be part of a supportive community. One place to find this community is on online forums. For savers specifically, a good spot is the Savingadvice.com forums. It’s a community of savers who pretty much just want to talk about saving money. Check it out here.

You cannot turn on the TV or pick up a newspaper lately without being bombarded by people telling us to claim back PPI. Many of them do not however, take the time to explain exactly what PPI is, why it has affected so many of us or why it is important that we try and claim it back.

What is PPI?

Payment Protection Insurance (PPI) is a type of insurance provided by money lenders when you take out a loan, credit card or mortgage. Its purpose is to provide financial cover should you become ill, injured, unemployed or redundant. Should you be unlucky enough to fall victim to one of these circumstances, PPI should be able to meet the remaining payments you owe your lender until you can return to work.

Why Is PPI a Bad Thing?

Given that its function is to protect us, it may seem odd that the press is branding PPI as a bad thing. The fact is; it is not a bad thing if the recipient has asked for PPI. The reason for all the outcry is that in many cases, the individual borrowing money was not made awarethat they were purchasing PPI or the terms of the agreement were unfair or poorly explained. In a time where most people have to be keeping a tight rein on their spending;millions of people having splashed out hundreds – or even thousands – of pounds on unwanted PPI suddenly makes all the fuss seem justified.

Who Can Claim?

Various companies have emerged to try and help people claim back miss-sold PPI. In their efforts, they have outlined exactly what PPI is and who is entitled to try and claim it back. Generally, situations where people can claim back PPI include:

• Customers who were not made aware that they were paying PPI.
• PPI policies that were not utilised.
• Cases where PPI was made compulsory.
• PPI policies that ignored existing health issues.
• Policies that did not provide cover for the unemployed.
• Cases where the PPI cover did not last for the entire length of the loan.

Should I get Help?

With so many organisations offering helpto claim back PPI, you may ask what exactly it is that they do. If youopt to have someone help, you often just need to fill out a claims form with basic info about yourself and then sit back and wait. At most you may have to sign a pre-prepared form they send or speak briefly to one of their advisors on the phone but you will not have to contact your bank or lender personally and can let the claims company do all the leg work. Being experts and knowing all the correct protocol, your chances of a successful claim are arguably greater but most of these companies offer a ‘no win, no fee’ payment system where if they cannot get your money back, you do not have to pay them a penny.

Can I do it myself?

People who decide to make claims often automatically assume they need to use a claims company but it is possible to do it alone. When the whole point of the PPI scandal is that consumers have paid out money they did not want to; some would argue that paying out more money to try and get other money back seems somewhat backwards. With some wanting as much as 30% of your settlement from a successful claim; boycotting the middleman and making the claim yourself is definitely a viable option.

You would need to dig out your paperwork and check the details of your policy to see if you qualify, then contact your lender directly, via phone or letter, requesting a refund. If your bank rejects you, the next step involves contacting an ombudsmen; the official, free service for resolving financial disputes.

Going it alone is without doubt the more time consuming of the two options but allows the greatest monetary reward upon victory but whichever route you decide to take, PPI is considered one of the nastiest hidden charges to hit the public in recent times and making a claim is definitely worth it.

Have you ever thought about retiring overseas? It is a dream for many to enjoy their golden years under a sunnier climate, in a cheaper country, or closer to family (in the case of foreign workers). Before you take the plunge and pack your bags, you should think about several aspects of your overseas retirement.

Retiring overseas, things to consider

Where will you retire? The list of heavenly destinations is long, but what country suits you most? Will you speak the language or be willing to learn? Make a list of your priorities, such as proximity to an airport, a supermarket, a library, the need for a car, and so on. What are your non negotiable? How far off the beaten paths do you want to live? You may be looking for some sun but can you bear real heat for months at a time? How about immigration or banking?

You can find lots of expat forums to inquire about the cost of living, renting or buying a place, healthcare, food, domestic help and other expenses. Remember to consider the time difference with the UK if you want to keep in touch by phone on a regular basis, as well as the cost of a flight if you would like to come back once in a while.

The cost of local products can be very low overseas compared to the UK, while other things like internet service, imported foods, healthcare… could be higher. You need to determine the overall budget to make sure it fits your pension allowance.  Once you take into account the cost of flights, some European countries may actually end up cheaper than places like Turkey or Egypt.

Talking to a few people who already live there can be enlightening, as they will have an in-depth knowledge of the area, something that is difficult to get if you visit for a week while on holiday. Ask about the seasons, the political situation, the health system… and how expats blend into the local community.

Local expats are also a good source to tell you where to get a first flat or house, the neighborhoods to avoid and the price you should expect to pay. Having a temporary home for the first few months allows you to search for the perfect place without stress. You could ship your belongings, generally with a tax exemption if you are a resident in your new country, or just bring the minimum with you and furnish your new place locally.

A few UK credit cards will let you withdraw money abroad without a commission, apply for one of those before you leave so you can get money while you set up a bank account in your new country.

The next step to consider is how to get the best value of your pension pot.

Transferring your pension abroad with a QROPS

QROPS means Qualifying Recognised Overseas Pension Scheme. It is a pension scheme approved by HM Revenue and Customs, that allows you to transfer your pension benefits overseas without any penalty. For this you need to decide to retire abroad, in a country of the UE or any other country that has a double taxation agreement with the UK, like Thailand, the USA or Zimbabwe. You can receive part of your pension as a lump sum, but 70% of the nest egg need to be invested to produce a lifetime allowance. To be worth the move, you would need a pension nest egg of over £25,000.

Qrops information is available online, to make sure you get the most of your UK pension. This is a popular scheme for expats since your pension pot will not be taxed under UK law, but in your country of residence. There are also no lifetime allowance caps or age limit to purchase an annuity. Your UK pension scheme administrator will take care of the transfer and make sure it complies with HMRC requirements. This scheme does not apply to your state pension.

Have you ever considered retiring abroad? Which country has your preference?

The car you choose to drive affects the amount of money you pay each month in insurance premiums.

Car insurance is mandatory rather than voluntary – if you want to drive you must have at least a basic third-party policy from an insurer such as 123.ie, otherwise you are breaking the law.

This is to protect other drivers and anyone else who may be injured or have property damaged as a result of your driving. Insurance can be costly, particularly as a new driver when you haven’t yet been able to build up any no-claims bonuses.

To avoid spending more than you can afford on insurance premiums you need to be a little bit savvy about the type of car you drive. You may want a great big powerful engine, but will end up paying somewhere in the region of three times as much money each month for it, and usually for the privilege of sitting in slow-moving traffic for hours on end anyway!

The smaller a car engine the lower the insurance premiums tend to be. A 1.0, 1.1 or 1.2 litre engine will usually fall into one of the lower insurance brackets.

Other features insurers look out for are low mileage, a good safety rating, the cost of repairs, parts and maintenance and the additional safety features that are fitted, as well as the initial cost of buying the car new and the age of the vehicle.

Cars such as the Chevrolet Spark, Fiat Panda and Punto, Ford Fiesta and Ka and the Skoda Fabia range have small engines and perform well in safety tests. Parts are usually relatively cheap and they are quick to repair in most cases.

All these factors significantly reduce the amount of insurance you will have to pay. As you gain more driving experience, you personally build up a better profile with insurance companies.

Your first car needs to get you from A to B – wait a few years before investing in a bigger, more powerful machine and you will save yourself a small fortune.

Photo: dno1967b