The Difference Between Good And Bad Debt

Sort out your debts with a  short term loan from LoanPig.

Household debt in the UK is worse than at any time on record. According to The Office for National Statistics, British households spent around £900 more on average than they received in income last year. The overall shortfall amounted to nearly £25 billion, and most people are paying for this overspend with borrowed money, though some households are also taking money from savings.

So if you are struggling with debt you can take some comfort from the fact that you are not alone. But it is also time to take action before your situation gets worse.

But let’s first take a look at what debt actually is.

There are two main types of debt: secured and unsecured. Secured debts are usually tied to an asset. For example a mortgage is a loan that is secured on a property, which means that the lender can repossess that property if the borrower falls behind on their repayments.

Unsecured debt is not tied to any asset. An example is a credit card. Interest rates tend to be much higher on unsecured debts because the lender has no asset to repossess in the event of repayments not being made. The lender would, however, impose additional charges if repayments are not made – and may resort to court action if the situation continues.

There is a general understanding that you can have good debt and bad debt. In one sense, all debt is bad. But a mortgage is generally classed as good debt because you are using it to acquire an asset; so in that sense it is an investment. Whereas uncontrolled and unsecured debts such as credit cards are seen as bad because they can spiral out of control very quickly and lead to the situation where you are unable to pay them back.

So let’s look at some guidelines for good and bad debt, and some practical ways to deal with bad debt.

You could regard debt as being good if:

• It is a carefully considered decision with a specific aim rather than impulse overspending
• It will help you to improve your circumstances longer term; for example to buy a home or car, or fund an educational or business opportunity
• You have researched options and are confident that you are getting a good deal
• You are confident that you will be able to repay the loan
• Your credit score is stable enough to withstand the process of applying for a loan.

But before taking on any kind of debt it is really important to commit to keeping up with the repayments. If possible try and repay the debt earlier than planned, as you will then save money on the interest you would otherwise have been charged.

If by reading this article you realise that you are in bad debt – the sort that keeps you awake at night – then you need to take action.

If you have a lot of repayments every month at high rates of interest and they are overwhelming you, one solution could be to take another loan at a better rate of interest and over a longer repayment period. You could pay off all your existing debts and end up with just one affordable monthly repayment which may help to get things back on track again.

There are some loan companies – such as LoanPig – who will consider lending to you even if you have a poor credit rating. We take every application on its merit rather than just on credit scores. Whilst no responsible lender will encourage you to take on more debt than you can afford to repay, sometimes the best thing can be to wipe the slate clean of your existing debts and concentrate on paying off just one new loan.

If you do this then it is essential not to slide any further into debt. Aim to borrow as little as you can and repay it as regularly and as quickly as possible.

If you would like to find out more about how LoanPigcould help you to sort out your finances then why not get in touch with us today? We offer a range of short term loansthat may be just what you need to help you through. You can contact us onlineor email us at info@loanpig.co.uk.

 

The post The Difference Between Good And Bad Debt appeared first on LoanPig.

source https://www.loanpig.co.uk/the-difference-between-good-and-bad-debt/

Break away this autumn.

Time for a holiday with an online loan from LoanPig

Well it’s certainly beginning to feel like autumn! Back to School is almost forgotten as families everywhere are firmly back in the daily grind. Despite the sunshine there’s a crispness in the air, and the evenings are getting dark again.

For many families it’s now basically the countdown to Christmas – with a few autumnal events like half term, Halloween and Bonfire Night to break things up a bit.

But if you do not have children at home, this is your golden hour!

Now is a brilliant time to get away on a break. Wouldn’t it be great to get a bit more lovely sunshine before autumn really settles in? And the really good thing is that now the kids are back at school, there is a much greater choice of availability and holiday destinations are much quieter than during school holidays. Even better, you are likely to be able to snap up a real bargain.

So where do you start looking for that ideal autumn break? We suggest three ways:

Your local travel agent

It is always a good idea to visit a travel agent if you are open about where to go on holiday. They will have information on a huge range of destinations that you may never have heard of, and will be able to recommend the best combinations of travel and resorts.

Many agents have special deals and offers that may not be available online; and at this time of year they will be particularly keen to get your business so may be able to use their contacts to secure you a real bargain. Also don’t be afraid to negotiate: there may be room for manoeuvre in the initial price you are offered if they are desperate for your business.

So even if you don’t end up booking your holiday through an agent it is definitely worth using them as a starting point to get ideas about potential destinations and comparative prices.

Online

There are so many websites out there that it can be difficult to know where to start. Simply enter something along the lines of “last minute bargain holiday” into Google and millions of results will come up. How do you narrow them down?

If you did start off with a travel agent, this is where you will be glad that you did a bit of research first. You can narrow down your search for the destinations and types of holiday that are of interest to you and this should return more relevant results.

All the major travel companies have their own sites, and there are also various other sites that can compare deals for you from a number of different suppliers. Some of the more well-known websites of this type are:

• Trip Advisor
• Expedia
• Last Minute
• Travel Zoo
• Travel Supermarket

 

There are also several lesser known websites around that may have just the holiday you are looking for. If you are prepared to look at something a bit less mainstream then take a look at:

 

• HolidayPirates
• Secret Escapes
• Jacks Flight Club
• Travel Republic

 

With all the above, you are likely to get a better deal if you can be a little flexible about your arrival and departure dates. So for example if you aim for a ten day holiday anywhere within a two week window and can travel at very short notice you could snatch a bargain. So make sure that you are packed and ready to go – and have travel documentation at the ready – in case this does happen.

Word of mouth

As with any other area of life, it really does pay to ask around. If you mention to friends and family that you are planning a holiday you may find out about a destination or resort that is highly recommended but you had not thought of. You may even find that someone has contacts in the travel business, or with a holiday home to rent out. Anything could happen! It can be so annoying to find out afterwards that there was some amazing opportunity just waiting to be grabbed – so do put feelers out with people you know and see what happens!

We hope that the above ideas help you to find your ideal holiday and that you come back all fired up for autumn and winter. If you need some financial help to make this holiday happen, then LoanPig may well be able to help. We offer a range of short termonline loansthat may be just what you need, so do get in touch with us and you could be on that beach before you know it!

 

The post Break away this autumn. appeared first on LoanPig.

source https://www.loanpig.co.uk/1782-2/

Oops I did it again! Financial recovery from school holidays

Rescue your finances with a short term loan from LoanPig. 

Summer is over, the kids are back at school, and before we know it Christmas will be here!!

But in amongst all the busyness of everyday life there is one small problem: money. Or, to be more accurate, lack of it.

Let’s be honest, most of us will have overspent during the summer. Despite all our good intentions everything always seems to cost more than we planned, not to mention all those unexpected visits, outings and long sunny sessions in the pub.

If that describes you then you need some kind of financial recovery plan to sort out your finances before things get any worse. We reckon there are Six Steps that you need to take to do this:

1. Be clear about your financial goals

You need to decide what you want in terms of your finances, and then grit your teeth to do whatever it takes to get to that point. Whether it’s to clear your credit card debts, save for a house, buy a newer car or travel the world – decide what you really want and then find the determination to make that happen.

You need to commit to financial recovery otherwise when things get tough you are likely to give up and go back to your old ways. There are long standing habits that you need to break, and it will take effort to do this. You need to realise that from the start and be prepared to see it through. But it is possible and you can do it!

2. Get an overview of your financial situation

It can be scary to sit down and really work out your financial situation but until you do this nothing will change. So the first thing to do is make a list of everything to do with your money. You need to include:

• Sources of regular income eg salaries, benefits, pensions, rent (eg if you have a lodger)
• Savings and investments eg bank or building society, ISAs, shares
• Debits eg loans, overdrafts and credit cards

At this stage look particularly closely at your debts vs your savings. If you have some savings available it is usually  better to pay off some of your debts. With many credit cards you will find that your monthly payments may just be paying off the interest and the actual amount of debt is not decreasing at all – particularly if you keep spending on that card. But if you can pay in a larger amount of money this will then reduce the actual balance of the card and reduce the amount of interest you owe.

If you do not have any money available to reduce your debt then you need to consider other ways of paying off that debt and we will look at that below.

3. Create a monthly budget

We’d all love to wave a magic wand and get out of the financial mess that we’re in but unfortunately  life is rarely like that. The only real way to get yourself sorted out is to create a realistic monthly budget then work hard to stick to it.

To make a budget, first of all make a list of everything you spend each month. Start with all the regular payments that you have to make such as mortgage or rent, loan or credit card repayments, household bills, subscriptions etc. The best way to handle these is to set up monthly direct debit payments from your bank. You will then know exactly how much is going to be taken out of your bank account and when.

Once you have accounted for these you then need to add on other essential spending such as food and transport to work. Then take a deep breath and add on all those other things that you regularly spend money on. Include everything –  going out, hobbies, clothes, hairdresser etc. Be honest so that you can get a real picture of where your money is going.

Then make a list of all the money you have coming in every month from all the sources you identified in Step 2 above. Anything that brings in money – no matter how small – should be included.

4. Test and tweak your budget

So you now have on paper or computer what you think your budget looks like. But it is also important to test it out. So as well as making a budget it is essential to put in the effort to check whether it is accurate. For the first month or two it is important to record all your actual expenditure to see how realistic or otherwise your budget actually is.

You may be horrified to find that your expenditure on food or clothes is much higher than you estimated it was. But at least you will then know where every penny is going and will be able to tweak your budget accordingly.

You should now be in a position to know whether you are managing financially or are struggling – and if the latter, where you need to cut down.

If you have a little money left over at the end of the month then use that to pay off your debts more quickly, and also try to save a bit of money for either treats or emergencies. But if your budget clearly shows that you have less money coming in than needs to go out you need to take further action to make things work.

5. Balance the books

Ok so now you have a budget and you know whether or not you can realistically stay within it. If not, you have a problem. Particularly if you have raked up some extra debt over summer. It is tempting at this point to bury your head in the sand and hope it all goes away but it won’t. You need to do something to pull yourself round.

Put simply, you have a choice of either increasing your income or reducing your expenditure. Or preferably both. A few ways to start doing this are:

Increasing income

• Change jobs
• Take on extra work as well as your job
• Turn an artistic hobby (music/painting/crafts) into a money-maker
• Downsize your home
• Take in a lodger
• Sell things that you no longer need

Reducing expenditure

• Check your budget and get rid of anything that is not strictly essential
• Look around for new suppliers of energy, insurance, phone contracts etc for better deals
• Find cheaper ways of doing everything, for example:

– socialising at home instead of going out

– buying second hand goods from eBay and charity shops

– trading skills with friends and family instead of paying others to do jobs for you

Some of the above are not easy choices to make, and some will take time and effort to do, but it will be worth it if it will enable you to get your finances back under control and then keep them that way.

As part of your financial overhaul you may also want to consider taking out ashort term loan which you can use to pay off all your existing debts. This could enable you to have just one affordable monthly payment rather than lots of different ones that are spiralling out of control.

Whilst you do not want to pay debt by getting into more debt, a loan could be a good short term solution just to get you back on track. But then make sure you do not increase your debt any further: it may even be worth giving your credit cards to someone else to look after until you get yourself sorted, so that you are not tempted to start overspending again.

6. Start saving

Many people do not have any savings. Recent data shows that one in ten UK adults have no savings at all, one in eight adults have no cash savings, and one in three only have savings of between £1 and £1,999.

When you are struggling to get by month after month, the idea of having savings seems like an elusive dream. But it is important to have them and it is possible to start saving, whatever your situation.

Savings are important because they mean that you are prepared for any kind of emergency that may come your way, rather than having to get into more debt when something unexpected happens. Also, once your finances are calming down a bit, having savings means that you can treat yourself to something nice.

So as of now, start saving some money into a different bank account each month. The ideal savings account is one that is not too easy to take money out of, but that you can get to in an emergency. Even if you are only able to put in a few pounds a month, start doing it now.

One good way to save is to set yourself mini targets every day and put away a tiny bit of money when you either make or break them. For example you may want to have a naughty jar that you put say 20p in every time you swear or eat a sweet or have a drink or do anything else that you are trying not to do.

Or turn this round to be a positive thing – that you pay yourself something when you achieve a goal, such as going for a run or mowing the grass or cleaning the house. Anything that works for you and starts you putting money to one side is great. At the end of the month you will be amazed at how much you’ve managed to put away without even noticing, and you can then put that money straight into your savings account.

We hope that these six steps help you to recover from summer and keep your finances under control from now on. Remember if you need help with a short term loan then do get in touch with us at LoanPig.

The post Oops I did it again! Financial recovery from school holidays appeared first on LoanPig.

source https://www.loanpig.co.uk/oops-i-did-it-again-financial-recovery-from-school-holidays/

Back to School – Money Saving Lunchbox Ideas.

How to give your kids a healthy lunch whilst still saving money. 

So we’re all now back to school, and many of the good intentions are already starting to fly out of the window! One of these is probably the dreaded school lunchbox.

It can be really difficult to think of interesting things to put into your child’s lunchbox every day. After a few days back at school the inspiration dries up and you run out of ideas.

It’s at this stage that you also remember how expensive it can be to stock up a lunchbox – especially if you are putting in extra items such as snack bars, chocolate or crisps.

The dilemma is that you want your child to have a good and healthy lunch, something that they will enjoy eating but that also is not too expensive.

So to help you, we’ve put together a list of some ideas to try. Items that your child will hopefully enjoy, that are quick and easy to prepare, and that don’t cost the earth.

 

Sandwiches

 

This is probably stating the obvious but they are usually popular. Just don’t fall into the trap of making the same thing every day: both you and your child will get bored and they will probably end up not eating them. Some ideas for fillings with a difference are:

• Tuna and mayonnaise
• Cheese and salad
• Lettuce and cream cheese
• Roasted veggies and feta cheese
• Corned beef and pickle
• Ham and coleslaw
• Banana and honey
• Jam and cream cheese
• Hummus, lettuce, tomato

The idea is to be as creative as possible and experiment. Why not get your child involved and make the sandwiches the night before? To save money, try to use leftovers for sandwich fillings, and items in your fridge that need using up. Double decker sandwiches also tend to go down well and make a bit of a change.

Salads

Many children turn their nose up at the thought of salad, but you can change this by making salads with a difference. Again, they are a great way of using up leftovers and bits and pieces that are lying around the fridge.

Pasta salad usually works: either use the remains of last night’s pasta dish or mix some cooked pasta with combinations like tuna, sweetcorn and mayonnaise or ham, tomato and mayonnaise.

 

 

Chicken

If your child likes chicken then there is a lot you can do for their lunchbox. This can be economical if you tie it in with whatever the family is eating the night before. So if you are cooking chicken thighs or drumsticks for the family meal then do one or two extra for the lunchbox. You can then add a bit of salad dressing and either some coleslaw or perhaps tomato and cucumber.

Chicken tenders or nuggets also work well. Put in a sachet or small pot of their favourite dip and they will be loving that lunch!

 

 

Pies, rolls and quiches

If you like to bake then either a slice of quiche, a small pie or homemade sausage or cheese and onion roll is a great addition to the lunchbox. Vary the changes and use up whatever is in your fridge.

Team the savoury item with a bit of salad and you have a winner!

 

 

Crudités

This is a great way to use up spare vegetables whilst also making your child’s lunchbox colourful and fun. Simply slice up a variety of crunchy vegetables such as cucumber, celery, peppers and carrots, and team them with a small pot of hummus. You can buy multipacks of small pots of hummus from most supermarkets or it is very easy to make your own.

 

 

Vegetable or fruit kebabs

Another way to give a bit of colour to the lunchbox is to make kebabs from vegetables or fruit. Your child will enjoy eating the small items on the kebab and will be getting a varied diet at the same time. Try some of the following combinations:

• Salad kebab: cherry tomato, cucumber, pepper, carrot, celery, radish, spring onion
• Cooked veg kebab: mushroom, courgette, pepper, shallot, beans, broccoli
• Fruit kebab: strawberry, pineapple, melon, grape, kiwi fruit

 

 

Mix and match to your heart’s content: remember the idea is not to go out and buy lots of things specially, but to use up what you already have and save money in the process.

Snacks and puddings

Children love those little extras in their lunchbox, but this is where both the sugar content and the cost can mount up horribly fast. So it’s best to ration these items out as much as possible. Instead of crisps and chocolate why not try some of the following:

• Small pot of yoghurt or fromage frais
• Dried fruit
• Cheese and crackers or mini bread sticks
• Small homemade muffin or cupcake
• Homemade cheese straws or parmesan crisps
• Grapes

 

 

 

Drinks

Adding a carton of juice to a lunchbox can bump up the cost; and in terms of sugar may not be the best choice for your child. Encourage them to drink lots of water during the day and for lunch why not provide a small flask or chill bottle of weak squash: more interesting than water but excellent for hydration.

 

We hope that these ideas help you to prepare a healthy lunchbox for your child without spending a fortune in the process. Remember to check back here soon for more  money saving ideas from Loan Pig. 

The post Back to School – Money Saving Lunchbox Ideas. appeared first on LoanPig.

source https://www.loanpig.co.uk/back-to-school-money-saving-lunchbox-ideas/

Kids Go Free!

Great money saving family days out…

And breathe! School holidays are over and life will now gradually begin to get back to normal. Whether you are a working parent who has had to juggle childcare during the holidays, or have been at home with the children for all or part of the time there is a sense of relief that you have all survived the summer!

But many of us have a few regrets as well. Particularly with the wonderful weather we have had this summer we would have liked to have been able to do more with the children and get out and about as a family more often. The problem is the cost!

A day out sounds great, but once you add up the cost of travel and admission to anything you are going to – not to mention food and drink – the bill can easily run into three figures even without any little extras on top. Most of us simply can’t afford to do that even once during the summer, let alone regularly throughout the holidays.

So we’ve been having a look around and come up with the following list of things that you can do with the kids for free. Yes free! Many of the ideas and attractions are available across the country so we hope that you can find things of interest near you, saving money on travelling costs.

Half term will soon be here: so next time you feel like having a family day out why not try one of these?

 

• London Museums

 

If you live within easy travelling distance of London there is lots for you to do. There are many famous museums and galleries that you can visit, including The Science Museum, Natural History Museum, British Museum, Victoria and Albert Museum and the Tate Modern. Also a number of smaller, less-well known museums which you can check out here. Enough to keep everyone happy for hours!

 

• The National Railway Museum York

 

Not to be outdone, the National Railway Museum in York is a wonderful attraction and is also free. An absolute must for train lovers! As well as a fantastic collection of trains – including Queen Victoria’s railway carriage, Mallard – once the fastest steam train in the world – there is a model railway, outdoor play area and train-ride simulator. For more details check out their website  National Railway Museum, York. There is also a sister site in Shildon – County Durham – which has a Stirling Single from 1870 and also family train rides.

 

• Stately homes

 

The UK has a wide variety of stately homes including country houses, castles and palaces. Whilst you do normally have to pay admission to the buildings, many sites have gardens that are free to enter. These often have activity areas where children can play, some have extra features such as a maze. Check out organisations such as The National Trust and English Heritage to find what is available near you.

 

• City farms

 

Many cities have farms and community gardens that are free to visit, though you are welcome to make a donation to their work. Many city farms provide opportunities for children to pet or feed the animals. Check out  The Federation of City Farms and Community Gardens to find farms, community gardens, and other green spaces near to you. There are many opportunities to visit farms and gardens and also to volunteer to help – or even get involved in setting up your own farm!

 

• Animal sanctuaries

 

Staying on the animal theme, there are also lots of animal activities outside city areas. For example there are many donkey sanctuaries around the country such as The Donkey Sanctuary Sidmouth in Devon. If your children prefer something smaller try animal sanctuaries such as Buttercup Goat Sanctuary in Kent or The Owl Sanctuary in Ebbw Vale. There are also many working farms in the UK that welcome visitors and offer the opportunity to help with the animals, such as Occombe Farm in Devon.

 

• National Science and Media Museum, Bradford

 

This exciting free museum aims to explore the science and culture of image and sound technologies and their impact on our lives. Its overall mission is to inspire the scientists and engineers of the future to see more, hear more, think more and do more. The museum features galleries, exhibition spaces, learning activities and three cinema screens. Find out more at https://www.scienceandmediamuseum.org.uk/

 

• Get on TV!

 

A great idea for TV fans is to hunt down some free audience tickets. You can apply to be part of TV show audience via various websites including BBC, Applause Store and SRO Audiences. You need to check the age limits for your chosen show to make sure that under 18’s are allowed, but tickets will be free and you could all have a great time.

 

• National Museum of Scotland

 

The National Museum of Scotland is one of the Top 10 UK visitor attractions, and in the Top 20 of the most visited museums and galleries in the world. It contains over 20,000 fascinating artefacts that will take you on an inspirational journey through the history of Scotland, the wonders of nature, world cultures and the excitement of science and discovery. The museum is always running special events: at the moment these include Rip It Up – a history of Scottish pop music – and Science Saturdays. For more information check out their website https://www.nms.ac.uk/national-museum-of-scotland/

 

• Geocaching

 

Geocaching is rapidly growing in popularity and is great fun for all the family. Think of it as a real-life treasure hunt! You can geocache anywhere in the world: all you need is the Geocaching app and/or a GPS device. You then use one or both of these to navigate to cleverly hidden containers called geocaches. There are millions of geocaches in 190 countries waiting to be discovered. Anyone can create and hide a geocache as long as it is in a durable and waterproof container and clearly labelled as a geocache. The GPS coordinates are then registered on a geocaching website such as https://www.geocaching.com so that other geocachers can use them to look for the item. Geocaches should include a logbook for finders to add names and comments, and some interesting and fun items. Examples include coins, small toys, keyrings, guitar picks, gift cards or costume jewellery. You can take items from the geocache but it is also good to put something back in as well.

 

• Festivals, fairs and markets

 

In the UK there are special events going on all year round. Through spring and summer – and even into October – many towns and villages have their own events and festivals. Some may be arts-related – music,  dance, comedy, drama or literature – others may focus on food and drink. As autumn turns into winter many places have Christmas markets or craft fairs. All these events provide the opportunity for a great day out and you don’t have to spend anything if you don’t want to: though Christmas markets can be a fun and economical way of doing your Christmas shopping whilst also supporting independent local businesses.

So even though summer is drawing to a close, there are still many things that you can look forward to as a family this autumn without breaking the bank. We hope that you can enjoy a few of the above ideas whilst still saving money.

Remember to check back here soon for more financial help and advice from LoanPig.

 

The post Kids Go Free! appeared first on LoanPig.

source https://www.loanpig.co.uk/kids-go-free/