HOUSEHOLD BILLS

HOUSEHOLD BILLS

LV= SCRAPS UPPER AGE LIMIT ON MOTOR INSURANCE The insurer has announced that it will no longer refuse cover to drivers over the age of 86. “People are living longer and driving until much later in life,” says LV= spokesperson John O’Roarke.

ENERGY FIRMS TO DIRECT CUSTOMERS TO BEST DEAL Customers are expected to save up to £100 a year, thanks to a move by the government to make energy providers write to people once a year informing them of the best deals available to them.

ISA LIMIT GOES UP BY £600 The new tax year has begun, meaning we all have an increased allowance for our individual savings accounts.

ISA LIMIT GOES UP BY £600 The new tax year has begun, meaning we all have an increased allowance for our individual savings accounts.

You can now put up to £11,280 into a stocks

You can now put up to £11,280 into a stocks and shares ISA, with up to £5,640 allowed in a cash ISA.

What’s hot What’s not

CO-OP PUTS UP ITS MORTGAGE RATES The Co-operative Bank has announced it is putting up its standard variable rate (SVR) on mortgages by 0.5%.The rise, which comes into effect on 1 May, takes the bank’s SVR to 4.74%, adding £15 a month to typical monthly mortgage repayments.

SVR to 4.74%, adding £15 a month to typical

AGEING POPULATION COMES AT A COST Repeated miscalculations over life expectancy mean the government could face a £750 billion state pension bill, according to the International Monetary Fund. The group has warned that the state pension age needs to rise more quickly to reflect rising longevity.

COMPLAINTS TO THE REGULATOR INCREASE BY 21% The Financial Services Authority received more than two million complaints in the second half of 2011 – a rise of 21% from the first six months of the year. The increase is largely due to the publicity around payment protection insurance – complaints in this category were up by 85% from July to December 2011.

rise of 21% from the first six months of the year. The increase is largely due to the

HOW TO HANDLE YOUR ENERGY DEBT

BY FAITH GLASGOW BY

TfromuSwitch.com – and those increased costs are causing debt problems. Almost four million households now owe money to their energy supplier.The average energy debt has risen steadily, with a third of those in the red

The average household energy bill has risen by 17% or £183 since the end of 2010, according to new research from uSwitch.com – and those increased costs are causing debt problems. Almost four million households now owe money to their energy supplier.The average energy debt has risen steadily, with a third of those in the red now owing more than a year ago.

WHAT IF YOU’RE IN DEBT TO YOUR ENERGY SUPPLIER? Don’t hope your problems will go away if you ignore them.Talk to your supplier.

If you can afford it, the quickest solution is a lump-sum payment to clear the bill. Or if you pay by direct debit and prefer to spread the load over coming months, arrange to increase your direct debit payments.

increase your direct debit payments.

If you are worried about an escalating debt you can’t afford, you should be able to set up an affordable repayment plan to bring the debt down gradually. If you are on such a plan but struggling with it, ask your supplier about reducing the monthly payments to make them more manageable.

If you are worried about an escalating debt you can’t afford, you should be able to set up an affordable repayment plan to bring the debt down gradually. If you are on such a plan but struggling with it, ask your supplier about reducing the monthly payments to make them more manageable.

make them more manageable.

A last resort is a prepayment meter that you ‘load’ like a pay-as-you-go mobile phone

A last resort is a prepayment meter that you ‘load’ like a pay-as-you-go mobile phone – but energy via these meters costs more.

you ‘load’ like a pay-as-you-go mobile phone you ‘load’ like a pay-as-you-go mobile phone – but energy via these meters costs more.

Once you’re clear of debt, act to make sure you don’t find yourself in that position again. For a start, shop around and find a cheaper energy deal, says Ann Robinson, spokesperson for uSwitch: “Make sure sure you don’t find yourself in that position again. For a start, shop around and find a cheaper energy deal, says Ann Robinson,

you are paying the lowest possible price for your energy, and cut down on the amount of energy you use.”

WHAT IF YOUR SUPPLIER IS IN DEBT TO YOU? We aren’t all in debt to our energy company: for many of us it’s the other way around and we’re providing a free borrowing facility to the provider by being massively in credit.

Paying by direct debit can trim your bills by up to 10% but you could end up out of pocket by several hundred pounds if the supplier overestimates your monthly payments, which can happen if you change supplier. It’s therefore crucial to check your bills regularly, whether paper-based or online.

Remember, direct debits are based on the monthly average of your annual usage, so you effectively overpay in the summer and underpay in the chillier winter months.

After a year, monthly payments are reassessed on real usage. If you’ve overpaid, there could be a lot of money sitting with your provider as ‘credit’ on your account. You can either leave that money where it is to bring down future bills, although it won’t earn you any interest while it sits there, or you can ask for a refund.

10 MONEYWISE | MAY 2012

WWW.MONEYWISE.CO.UK SPECIAL DEALS FOR MONEYWISE READERS

How to use comparison websites Steal of the month

CBY REBECCA RUTT BY

onsumer groups are calling for more regulation to be bought into the comparison website market, as information provided by these sites isn’t always fair or accurate. Which? tested 11 different comparison websites offering insurance quotes and found they tend to make basic assumptions that don’t necessarily apply, and may even invalidate cover. Prices for car insurance quotes varied between £310 and £660, and in many cases excluded optional extras such as legal cover, a courtesy car or personal injury cover. When it came to home and travel insurance, no single website covered more than a third of the market.

However, if you’re aware of the pitfalls to avoid, the sites can still save you money.

DON’T GO FOR THE CHEAPEST QUOTE Although it’s tempting to choose the cheapest option, if it doesn’t meet your needs you’re likely to end up paying more in the long run. This is particularly important with insurance policies, make sure you choose a policy that has the right level of cover for you and that the specifications match your circumstances.

ALWAYS SHOP AROUND Not all companies use comparison websites: for example, Direct Line does not.These websites therefore don’t cover the whole of the market, so it’s best to visit two or three to get an accurate idea about what products to buy. Although comparison sites are a good place to research what’s available, going to individual company websites as well will allow you to make a proper comparison before you buy.

WATCH OUT FOR SPONSORED LINKS Some products, such as savings accounts, will be bumped to the top of a comparison table if the company has paid for the position.This doesn’t necessarily mean it’s the best. So keep an eye open for adverts.

WIN WITH

WIN AN IPAD 2 CASE

Spring has sprung, so why not treat yourself to days out over the bank holiday or update your wardrobe with some of these money-saving vouchers?

15% off at Florence & Fred By entering the code AFF12 at the checkout you can get 15% knocked off the price of Florence & Fred clothing at Tesco until 17 June. More details can be found on the website: http://bit.ly/wrlm0F

40% off clothes at Brook Taverner Brook Taverner is offering 40% off full-priced clothes on its website; to benefit you simply need to enter the code AW40 at the checkout before 31 June. More details are on the website: http://bit.ly/I86Tpu

10% off orders at Urban Adventures

If you’re planning a day trip with a difference, Urban Adventures has slashed 10% off its tours.To qualify, enter the code UA5740 at the checkout before 5 October; full details can be found on the website: http://bit.ly/TzvVa

20% off your food bill at Henry’s Enter your details and download a voucher from the website to enjoy 20% off the price of your food bill until 31 May. A voucher can be downloaded from the website: http://bit.ly/cIszkd

20% off bike tours in London The London Bicycle Tour Company has cut 20% off the price of its guided tours.To get the discount, enter the code 004BVCC11EGB on the website http://bit.ly/4tSm4L

This month you have the chance to win one of ten FitFolio iPad 2 cases from Speck.

The ultra-slim case comes in a choice of five colours and has a sleek, padded design that’s lightweight yet keeps your iPad protected.The custom cradle holds your device securely in place, and the cover folds back into a stand – making it the perfect case for reading, working, viewing presentations and lots more while on the move. For more information visit speckproducts.com.

For a chance of winning, send a postcard with your name, address, phone number and email address to ‘Speck’, Moneywise, First Floor, Standon House, 21 Mansell Street, London, E1 8AA by 10 June.

60% off orders at Symantec

Symantec, the company that sells Norton Security software, is offering a discount of 60% on its products.To benefit, enter the code Norton60VK at the checkout before 30 June. http://bit.ly/HCmkEn

25% off spring bookings at Macdonald Hotels You can get 25% off spring bookings for ‘best available’ rooms with the code SPW. Children under 12 stay for free. Full details are on the website: http://bit.ly/HCmEDg

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MAY 2012 | MONEYWISE 11