The Mungo Money Finance Blog

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With interest rates all over the place, many people are looking for low rate loans and they still can be found, you just may need to look a little bit harder and longer for them than you would have had to three or four years ago. Many people are still getting home loans, car loans, and personal loans for outstanding interest rates, so don’t be disheartened if you start shopping around for loans and you see some startling interest rates.

If you have decent credit you will find that it is quite simple to get low rate loans. When you apply for your loan the first thing that the lender will need is some basic information about you, including your name and your date of birth and some other personal information that will allow them to look at your background. If you have a history of paying off your debts and you don’t have a really high debt to income ratio you will find that you can get a decent interest rate that is around 7% and in some cases lower or a bit higher.

If you don’t have the best credit you might find that you could get better interest rates if you just wait six months and work on paying off some of the small unpaid debts that are causing black marks on your credit report. You know the ones, the 200 pounds here and 50 pounds there that you could pay off if you really wanted to? Even if you pay off a few of those it will raise your credit score substantially and will help you to secure a better rate for your loan.

Another way to obtain low rate loans is to look for a secured loan. A secured loan is one where you will put some money down on the purchase price, letting the lender know that you are serious about this purchase and you are not going to let the debt go unpaid. This can help you get a much better rate, especially when you are buying a home or a car. Securing the loan isn’t always simple, especially if you have to come up with 15% of the purchase price, but it will be worth it in the long run.

There is yet another way that you can receive low rate loans even if you don’t have perfect credit and that is to have someone co-sign on the loan with you. What this will do is have someone with better credit than you guarantee the loan so that if you don’t pay, they will. This can often lower your interest rate by as much as 3-5% and while that doesn’t sound like that much, it’s a lot when you are borrowing thousands of dollars.

These are all straight forward ways to get low rate loans, but sometimes you just need to shop around to find the right opportunity. When it comes to finding a loan you cannot be in a hurry, instead you need to shop around to find the right loan at the right time. For some people this search comes to an end in one day and for other people one year.

In a perfect world, we would all have the money on hand to pay for everything we needed and wanted.  Unfortunately, this is not a perfect world and occasionally most of us will need to take a personal loan, even if that loan is just to pay for a car or some other significant purchase.  Taking on the extra debt isn’t necessarily a bad thing.  You just need to be careful about the choices you make.
Here are some tips to help you make the right borrowing decisions.
Is a Loan the Right Choice? 
Before you start shopping around for a loan, you should try to determine if a loan is the best option for your needs.  In some cases, you might be better off with a low interest credit card, particularly if you have a period of paying no interest.  Since a number of credit cards offer 0% interest on balance transfers, such as the Barclaycard which gives you 12 months interest free plus no interest on football season ticket purchases, you can end up saving a lot of money with this option.
If you do decide on a loan, do not opt for a secured loan.  A secured loan means you are guaranteeing that you will repay the money by offering collateral, such as your home or your car.  You could end up losing your property for failure to keep up with the loan payments.  Try to take out an unsecured loan or extend your existing mortgage instead.
The Basics of a Good Loan 
Before shopping around for a loan, you need to create a budget and determine how much you can afford to pay back each month.  Without that information, you could end up taking on more debt than you can afford which will get you into trouble.
Once you know what you can afford, borrow as little as possible for the shortest time you can afford.  Even though a long repayment period may make your monthly payments lower, you will end up paying more in interest.
Besides looking for a loan with a loan interest rate, you also need to make sure you won’t have a penalty for early repayment.  It’s always a good idea to try to pay down your loan as quickly as possible so you end up paying less in interest.
The bottom line is you need to shop around for the best rates and the best deals.  Building a good relationship with a lender you trust who also offers you good loan options will be helpful to you later on as well.

When you were taking out a mortgage, car loan, or other type of debt, there’s a good chance someone tried to sell you PPI (Payment Protection Insurance).  If you bought a policy and meet certain requirements, then you could receive a refund of all the money you’ve paid towards that policy.
Background on PPI Refunds 
The Office of Fair Trading (OFT) and Financial Services Authority (FSA) have been investigating PPI for awhile.  As a result, they have discovered that a number of the policies have actually been mis-sold and are, therefore, not considered valid.
When the OFT and FSA describe the policies as mis-sold, they could mean several things.  One common problem is that the insurance actually ends up costing more than the consumer anticipates.  In most cases, those small monthly payments end up costing more than the total interest by the end of repayment.
Another issue is that PPI is often automatically included in the loan fees.  If you don’t carefully review a breakdown of the loan fees and costs, then you may end up paying for something you never asked for or did not want.
PPI Refund Requirements 
The most obvious requirement is you must currently have PPI or have had the insurance within the last six years.  If it’s been more than six years and you still have your documentation, you can still try to get your money back but you’ll be facing a bigger battle.
Another requirement is that you cannot have made a successful claim against your policy.  If so, you are no longer eligible for the refund.  Plus, you should keep in mind that by asking for a reclaim you are essentially requesting cancellation of the policy.  If that’s not what you want, then do not try to recoup your losses.
Besides these requirements, you need to fit into a specific category of mis-selling.  For example, if you weren’t told the details of the policy or if you weren’t asked about your employment or past health problems then you may be eligible for a refund.  If you already know that your lender has been fined for mis-selling, then it’s a good bet you should be eligible for a refund, too.
Remember that PPI is not necessarily a bad idea, but these lenders are simply not providing you with the best options.  For example, you could get similar protection with a separate policy and save about 70%.  That’s why you really need to look around at all of your options before taking out a loan.
Keep in mind that if you do receive a refund, it might be a great time to start a savings account which could also be useful protection.  Nationwide Regular Savings is a good choice if you want a good return on your investment.  Another choice is Britannia Tree-for-all Savings.  When you open an account with them, a tree will be planted so you’ll also be helping the environment and the stability of your financial situation.

It is with great pleasure that I announce the relaunch of Mungo Money UK.

Both Mungo Money and  the Money Saving Blog (Money Talks) have been redesigned and updated to offer a better slection of credit cards, personal loans and saving accounts.

The look and feel of Mungo has been totally re-engineered so that you can find the product you need quicker and easier. We’ve got a brand new star rating system in place so users can review products that they have applied for, letting new customers know the real deal!

So Happy New Year from Mungo Money UK and enjoy the new website!

Credit card debt may seem like a big problem, but it doesn’t have to be.  In today’s world, most people need to have at least one credit card, even if that card is reserved mostly for emergencies.  You only run into problems with credit card debt when you start taking on more than you can handle and when you don’t make smart borrowing decisions.
Let’s look at way to have that credit card debt without the problems.
Choosing the Right Card for You 
The bottom line is that you can’t accept every credit card offer you receive.  You should shop around.  A little searching should tell you that not all credit cards are created equal.  For example, some credit card debt will incur interest at very high rates which means you’ll have a harder time paying back that debt and you’ll end up paying a lot more for it.
To determine the right credit card debt, ask yourself this question:  How do I pay back my credit cards?
If you pay your balance every month and don’t accrue any interest charges, then look for a card that will reward you for making those purchases and forget about checking the interest rates.
Everybody else, you need to pay attention to those rates.  Avoid high rate cards.  Look for the best offer you can possibly get.  Of course, the interest rates available to you will be determined by your existing credit scores so your options could be limited if you’ve had some debt problems in the past.
Keeping Interest Low While Carrying a Balance 
Most of us do carry our credit debt with us but that doesn’t mean we have to end up paying huge amounts of interest in exchange.  One way to keep your interest amounts low is by transferring balances between cards that have a 0% interest period.  For example, you might move your balance first to the MBNA Platinum card that offers 0% interest on balance transfers for 12 months then before that period is up transfer the balance to the Halifax 9.9% card which has no annual fee and no interest on balance transfers for 9 months.  Since the Halifax card has a lower interest rate, you could keep the balance here or you could switch again.
Either way, you’ll be saving yourself interest for a full 21 months.  That gives you a long time to pay down that balance.  Once you find a card with a low interest rate and decent rewards for your purchases, then stick with it and continue using it wisely.

Credit cards can be a hazard to your financial health.  However, they can also be powerful and useful financial tools that allow you to save money not just pack on the debt.  The problem is most people don’t understand that not all credit cards are created equal.  By using one card for all your needs, you’ll end up paying more and getting less.
That’s why we need to talk about how you can choose the right credit cards for your needs.
Which Credit Cards Do I Need? 
Answering this question depends on your own financial habits.  If you use your credit cards mainly for balance transfers then you need a different card then if you want to make purchases.  Likewise, if you want to hold onto a single credit card for a long time you’d want a different card than someone who doesn’t mind switching cards periodically.
For example, if you want to do a balance transfer, then look for a credit card that offers you a long interest-free period on these types of transactions.  The Abbey Credit Card card offers twelve months while the Royal Bank of Scotland card offers 13 months.  Try to pay off the entire balance during that interest-free period so you can save money.
If you have store credit cards, it’s a good idea to transfer those balances.  Most store credit cards have very high interest rates, even for customers with good credit.  Transferring the balances will allow you to take advantage of the store card’s benefits and save money on the interest.
Remember if you do have a separate card for balance transfers, then that card should never be used for anything else.  Most of the cards which use these offers to entice new customers to sign up have other ways of getting money from you IF you use the card for purchases.
When you want a card for purchases, then what you want depends on how you pay your debt.  If you pay the balance every month, shop around for a card that gives you the best rewards.  Cash back programs that return a percentage of your spending to you annually are a good choice.  If you prefer to keep your credit revolving, then look for a low-interest rate so you don’t pay more than you have to for your debt.
Another Important Point for Travelers 
Traveling in foreign countries usually involves dealing with exchange rates, but if you have a Visa or a MasterCard then using those cards can make it easier for you.  Plus, if you choose cards that are designed specifically for this type of use then you can save a significant amount of money during your trip.

When you have a credit card, you’re going to use it. As a result, you’ll probably end up racking up a tidy balance and accruing interest every month unless you’re one of those few people who pay off their entire balances. However, you can find ways to cut back on that interest if you know a few tricks.

Making Balance Transfers Work for You
Balance transfer refers to the payment of one credit card balance with another credit card. As a result, you end up with no balance on one card. Let’s say you owe £1000 on Card A and you have a high interest rate – maybe 18%. If you keep paying on Card A, you’ll end up paying off the balance eventually along with a large amount of interest. That interest adds up and makes repayment take a lot longer which means you’ll pay more interest and so on.
The only way to break that cycle is to transfer your balance to Card B, preferably a card that offers you a period of interest-free repayment. For example, the Barclaycard Football card offers 0% interest for 12 months on balance transfers. Even if you continue paying just the minimum balance – which, incidentally, is never the best idea – you’ll be able to lower that balance considerably before you begin being charged interest.

Other Important Points
You need to realise one important thing: credit card companies view balance transfers as a separate type of transaction. They usually charge less interest and offer longer periods of no interest on these types of transactions then they do on purchases. If you combine balance transfers and purchases on one card, then all of your payments will be applied towards the transfers first so you end up paying a lot more in the long run.
The best idea is to have two separate credit cards. One is just for balance transfers. The other is just for purchases. That way you can find the best deals for each separate type of transaction. With a card for purchases, you want to find a low interest rate and also any rewards you can receive for making purchases, such as a cash back option.
Now after you transfer your balance, you should work hard to pay the entire thing over the interest-free period. You should also avoid racking up large purchase debt on the other card so you don’t end up paying off one balance just to have to contend with another.

Many of us have learned the hard way that getting your credit card payment in the post on time is no guarantee that you won’t be charged a late payment fee.  Plus, if you’re already near your limit that extra fee could send you over the limit even by just a small amount and that means you’ll be charged an additional fee for that.
Those fees add up, plus you have to pay interest on those fees every month until you pay them down.  And you’ll keep racking up fees until you get back under the limit.
At least that’s how things were, now things are a little different.  The Office of Fair Trading believed those fees were too exhorbitant and worked with the UK government to make them unlawful.  Now if you had to pay any of those outrageous fees during the last six years, you could get your money back.
The Steps to Follow to Recoup Credit Card Fees 
To get your money back, you first need to know how much you paid in fees.  Obviously, a guess isn’t going to do the trick.  If you haven’t kept your last 70+ statements (and most of haven’t) then you can call your credit card company and ask for a comprehensive list of all your charges.  This is your right under the Data Protection Right.
Before you do anything else, you need to be prepared for the credit company to close your account in retaliation.  Just transfer your balance to a low-interest card and you’ll be in good shape.  If  that’s not an option and your card is closed, file a letter of complaint.
Next, write a letter to the company requesting your money back.  When you make your claim, add in interest.  If you get to court, you could be entitled to up to 8% interest on those fees so asking for it now could be a good idea.  You may get your money back immediately or a reduced offer.  If not, you’ll need to take the company to small claims court or a financial ombudsman service.
Avoiding These Fees & Using Your Winnings 
Even though the fees were wrong, they are generally a sign of other financial problems.  To prevent paying these types of fees in the future, you should try to set a budget and stick to it.  Don’t borrow more money than you afford to pay back and always make your payments on time.  It’s also a good idea to keep your balances low enough that a missed or late payment won’t send you skyrocketing over the limit.
If you are finally victorious in reclaiming your money, then consider putting it into a savings account.  You’ll be surprised how quickly it can grow and, after all, saving your money is a good habit to start.

With the ebbing of the festive month of December, when you have calculated amount of money in hand, January Sales comes as a real blessing. With a plethora of cheap yet essential commodities available, you shall have a wide choice. Take your pick from among these indispensable commodities at a throwaway price. Items ranging from gifts for your beloved to the essential equipments of your household are on display. After a huge burden of Christmas expense, you may want to have goods at a low price. January Sales, which does not essentially require usage of your credit cards, is apt for you during this time. Enjoy shopping at the January sales even if you have a shoe-string budget, since it would not burn a hole into your pocket.

Cash Back Credit Cards is one of the best options for you for use during the January Sales. This credit card allows you to spend a specific amount of money and the main advantage of using this credit card lies in the fact that you shall have an opportunity of getting the balance amount which is indeed a saving! Since the occasion of festivity tends to lead you into unnecessary debts, it is always advisable to use the Credit Cards. Once you ensure that all the gifts and items have been purchased, the balance in your credit card would add to your bank balance.

If you use Alliance and Leicester Platinum Card, for example, you don’t even have to pay even 1% on balance transfer, that too for a period of 12 months! Similarly, Barclaycard Breathe Credit Card and Barclaycard Purchase Card do not charge any amount for your balance transfer. Moreover, at attractive rates you can avail them. Well, if you obtain Egg Credit Card, then you would get an attractive 0% charge on purchase, 0% on balance transfer until April 2008.

If you opt for Bank of Scotland One Credit Card then you shall be getting an attractive 0% on card purchase for 9 months and even 0% on balance transfer! You shall be getting an instant discount on Virgin Credit Card over every shopping. If you are on an outing, or want to get wine, music or DVDs, then you can easily pay with your Virgin Credit Card. Well, if you need that 50 interest free days that are on offer with this card then bag it now. The MBNA Platinum Rewards Card charges an average interest rate but a wonderful reward scheme that comes with it, is simply alluring.

The Nectar Credit Card comes with the assurance of American Express. This card allows you to score points on your purchases which can easily be exchanged for money off vouchers. This would surely enable you to buy more products in a lower cost.

Some people likes to use the opportunity of January Sales to buy all their yearly requirements. Another great option for you may be the Low Interest Credit Cards. If you use them, you shall not have a least worry about the high rate of interest. The interest charged for these credit cards is very low. Therefore, at a low rate of interest you shall be able to have a credit card of your own. For a January Sale this Low Interest Credit Card is indispensable.

You can also obtain the Secured Credit Card or an Unsecured Credit Card. This is actually in accordance to the type of purchase and your affordability. Prepaid Credit Cards with its close similarity with debit cards is also a common option.

So, don’t waste more time. If the January Sale is ahead, then opt for any of the above January Sale Credit Cards and have a splendid shopping experience.

You might have already heard about the benefits of budgeting and how anyone who is managing even a bit of finances should use budgeting to get the most of their money. If you have not managed to hit upon the right budgeting style yet, here are some tips from which can push you in the right direction.

1) Determine the frequency of the expense: knowing when you are going to be spending something helps you know when you would need the money for it. Most household expenses can be segregated into weekly, monthly and even annual expense. Put in the relevant amounts depending on the frequency.

2) Use the data of your bank statement to create the budget as well as determine frequency of payments required.

3) Don’t include the same item twice in your budget…this does not give the true picture of the cash requirement you are likely to have.

4) Be realistic in your estimates…if you are going to spend $300 in entertainment, don’t hesitate is writing it.

5) Budgets cannot include everything…you need to provide for whatever you remember and keep some room for contingency. Also keep tweaking the budget as you go ahead so that you can keep an eye on your finances.

6) Crosscheck everything that you have put in and don’t just rely on your bank account blindly.

7) Take decisions based on the results of your budget. If you need to cut down some expenses, then do it right now. Plan cut backs in places which you can by identifying things which you can do without. Don’t just thing of cutting expenses but the COST of the expenses as well. Check the rate of interest and other costs of finance and make sure you are not paying too much for it.

There is no gain without the pain…simply put, the pain of cutting back costs is likely to result in better performance of your budget and take you out of debt and also help you save in the process.

9) Create piggybanks and physically separate the money to help you budget better. Ask any prudent housewife and they would have used this trick sometime or the other to make sure that they do not let money set aside for one thing get used up for something else. This also acts as a physical check on the budget and lets you know when you are running low on finances.
At the end of it, it is your own control factor of spending which will help you stick to a budget. The feeling of having spent just the right amount is quite good and you need to experience it firsthand!