Budget will “hit poor hardest”, study claims

The coalition government’s first budget will hit the poor the hardest, according to a report by the Institute for Fiscal Studies (IFS).

The IFS claimed that proposed benefit cuts, such as cuts in tax credits, housing benefits, and disability allowance, will hit those on lower incomes the hardest, taking a greater proportion of their total income, with the analysis suggesting that the poorest families will be hit to the tune of £422 between the Budget and April 2014.

hit poor hardest

This means that only the richest 10% of households lost more in cash terms from the Budget than those in the bottom 60%.

The report also questioned the government’s decision to use the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) when calculating certain benefits, given that CPI does not take into account increases in housing costs.

The report said: “Low-income households of working age lose the most as a proportion of income from the tax and benefit reforms announced in the emergency Budget.

“Those who lose the least are households of working age without children in the upper half of the income distribution.
“They do not lose out from cuts in welfare spending, and they are the biggest beneficiaries from the increase in the income tax personal allowance.”

The Treasury said it did not accept the “selective” findings of the IFS.

Bank of England Keeps Rates at Record Low

The Bank of England has kept interest rates at a record low of 0.5%, underlining doubts over the UK’s economic recovery.

Interest rates reached the low back in March 2009 and have remained there ever since, being used as a tool by the then Labour government to encourage spending and ease the economic recovery in the height of the recession, but even several months after Britain officially returned to growth the rate has remained the same.

The decision is evidence that the Bank is unconvinced over the country’s economic stability, with the government currently undergoing a review of public spending.

The decision will mean that those with the tracker and variable mortgages are unlikely to see their repayments increase in the short term, although savers will once again earn little on their investments.

The Bank also confirmed that it would continue to inject up to £200bn into the economy as part of its quantitative easing strategy.

BoE Governor Mervyn King also stressed the uncertainty over the world economy and a recent tightening in credit conditions before the Treasury Select Committee last week.

He warned that policymakers could not be confident the recovery would be “sustained” and added that the debate was still “about the appropriate degree of stimulus, not about applying the brakes”.

The doubts have overshadowed concerns about above-target inflation on the MPC so far.

Consumer Prices Index inflation has been above 3% throughout the year – well above the Bank’s 2% target – and the Governor has warned that next January’s VAT hike to 20% will keep the cost of living elevated throughout next year.

Credit Repair Services To-Do List

If you are interested in cleaning up your credit and raising your scores, you should go for the gusto. Get every single point you can. Leave nothing on the table. Given the complexity of the process, you should consider credit repair services as a better option to doing the job yourself.

Building the To-Do List

Credit repair services are dedicated to the task of credit improvement. The best of these companies provide a comprehensive approach to the job. The work entailed should include a complete review of your reports, investigation of the statutes of limitation for any collections reported with balances, thorough FICO score consulting, and the administration of the entire dispute letter process.

To-Do List

Review of Your Reports

A proper and complete review of your reports is central to the job done by credit repair services. The goal is to miss nothing. This is easier said than done and is a strong case for using a professional rather than attempting in on your own.

Many of the errors that are created during the reporting process are subtle compliance errors that can be very difficult to spot without training.

Investigate the Statutes of Limitation

A careful investigation of the statutes of limitation on open collections should be performed by any good credit repair services. This procedure will alleviate any risk of triggering a lawsuit from an active collector.

If the statute of limitation is expired a collector has no legal leverage and can be challenged without fear. There are cases when credit repair strategies can be employed on newer collections, but this is on a case by case basis.

Investigate the Statutes of Limitation

Consideration of Your Credit Score

Your credit score should always be kept in sight by any credit repair services you choose to employ. All of the actions taken on your behalf have the potential to move your scores.

The better of the services will be astute enough to take only those actions that are in conformity with your goals and any stated timeframe you have provided.

Administering the Dispute Process

As important as all of the prior items may be, the administration of your dispute process is the most significant job of credit repair services and one that may continue for a prolonged period depending on the extent of the errors on your report.

Effective dispute letters should be crafted with an understanding of bureau operations and methods. Letters must be clear and to the point. On an ongoing basis, responses must be promptly sent when satisfactory results are not quickly forthcoming.

Administering the Dispute Process

An Important Job

Having said all of this and provided an overview of the tasks performed by credit repair services, it is worth reinforcing the point that this endeavor is one of potential financial significance to you.

The job must be done right. Every point on your FICO score counts and all of these procedures can have a lasting impact on your scores. When choosing a company to do the job for you, it is important to pick the right one.

Making a Choice

Making your choice of credit repair services is important, but it is not difficult. Check the Better Business Bureau record for any patterns of concern, call them to discuss their process and ask any questions you deem pertinent. Use the items mentioned in this article as a guide.

And most importantly, make sure you are comfortable with the conversation. If you are not comfortable it will not portend well for your ongoing relationship. Should that be the case, just move on. Pick up the phone and try again until you are feeling good. Good luck!

Making a Choice

Must know Financial Concepts

Eight Points You Should Remember

Must know Financial Concepts

  • Finance could be described as the major category which includes all aspects related to money and its flow. It includes the concepts of creation and study of money, management of money and financial systems.
  • The finance is categorized into 3 major categories – public finance, corporate finance and personal finance.
  • It covers all concept of money expenditure by government, debts , credit and debit of bonds and bills, etc. The daily cash withdrawal and deposit in banks is a part of public finance.
  • The cash flow done through individuals, loan and all related monetary function done by individuals is part of the process of public finance.
  • The taxation is the most used term of finance. The money collection by a government from its country citizens is known to be taxation.
  • Another aspect of finance is retirement funds or pension, it is amount paid to an individual after his/her working days has been ended. This amount is either provided by government or any private firm.
  • Know that small funds provided by private organizations to each of his employee , it is called Provident Fund. PF is fund ensured by our employers which can be used in case of  financial emergency.
  • Another less known term of finance is gold standard , which is the economic monetary value of gold. Gold is used as currency in deals between countries.

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ETrade 100 Commissions Free Promotion

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Discount E Trade

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An execution of 30 to 149 trade options within a quarter is necessary for receiving the credit of $9.99 commissions. For $7.99 commissions, stock or trade options of up to 1,499 should be executed within a quarter.

The promotional commission’s free offer provides an opportunity for those investors that are planning to trade heavily and thus will be able to find greater profits. Ordinary investors might not benefit from this opportunity if they are not planning to trade aggressively. The offer is not valid for non-IRA ETRADE Securities customers and non-U.S. residents. The active trader services team are available for further assistance and trailing stops and contingent orders are also available under this investment option.