| Hi - here are your latest deals, freebies, tricks and messages to help you save.  THE TOP TIPS IN THIS EMAIL
| | How to get a 0% 'loan' - if you need to borrow Debt is like fire - a powerful tool, but get it wrong & you'll get burned Depressing news rang out at the start of this year - that 2019 saw a record number of county court judgments issued against people who didn't (or couldn't) repay their debts. News like this leaves us somewhat torn. As we always say, if you can avoid borrowing, you should. If not, at least ensure it's budgeted for, affordable, repaid as quickly as possible, and you borrow as little as possible. If you can't afford it, don't do it. Whatever it's for, unaffordable debt will make life worse, not better. Borrowing is always best for planned one-offs, not supplementing your income each month.
 However, we know many of you do feel the need to borrow - and if so, we want to make sure it's done right and done as cheaply as possible. And that means, where you can, paying NO INTEREST - ie, 0%, as then all your repayments clear the actual borrowing rather than just profiting the lender.
So if you're going to borrow, first ask: "Do I really need to?", then "Is this a planned purchase?" and finally "Have I budgeted to afford repayments?" If the answer to any of these is no, don't do it. If it's yes, read on... Always use credit detective tools before applying to uncover YOUR best deal. Apply for a loan or credit card and it usually puts an application search on your credit report, which lasts a year. Too many of these can have a negative impact. To minimise applications, our eligibility calculators show you the card or loan you're most likely to be accepted for - without any credit impact.
Try them for: Loans | 0% Spending Cards | 0% Balance Transfers | 0% Money Transfers. They quickly reveal which out of almost all top deals you're most likely to be accepted for. These methods are best if you're borrowing about £3,000 or less, as card credit limits above £3,000-£5,000 are tougher to get.  1. If you can pay on plastic, use a 0% spending card to borrow at NO COST AT ALL - but ensure you're disciplined. There are no 0% loans, but there are 0% credit cards... so the trick is to turn a card into a loan. The easiest and cheapest way only works when borrowing for something you can pay for by credit card, eg, a washing machine (if not, skip to point 3).
Use the 0% Cards Eligibility Calc to see which your best card is, eg, the Sainsbury's Bank* up to 27mths 0% is currently the longest 0% period (it also gives Nectar points on spending). Or, there's MBNA's* up to 26mth 0% card, though the 0% is only on purchases you make in the first 60 days. Once you get a card...
i) Buy your planned purchase on it (nothing else - be disciplined).
ii) Never miss a min monthly repayment or the rate can shoot up.
iii) Repay within the 0% period and it's TOTALLY FREE.
iv) Be warned - fail to clear within the 0% time and the rate rockets (eg, both Sainsbury's and MBNA jump to 20.9% rep APR). See Top 0% Cards (APR examples). Who should do this? Those who trust themselves to use the card as a one-off and make repayments before the end of the 0% period. If not, this can be a dangerous option, leaving you paying interest on a large debt. 2. Need a '0%' cash loan? Carefully see if you can get a 0% money transfer card. If you need actual cash, or to, say, pay off an overdraft, a few cards offer new cardholders 0% money transfers. Here, for a one-off fee, a card'll transfer cash to your bank account, then you'll owe the card. Use our 0% Money Transfers Eligibility Calc to see what you can get. Eg, MBNA's* up to 24mths 0% money transfer fee is 2.99% (though some poorer credit-scorers may get 3.49%) of the amount shifted (so £30ish per £1,000). For longer, there's Tesco Bank's* up to 28mths 0%, with a higher 3.94% fee.
Once you have the card, do the transfer within the first couple of months. Then ensure you make the min repayments and clear the borrowing within the 0% period. Fail to do that and the rates soar (eg, MBNA jumps to 22.9% rep APR on money transfer debt and Tesco Bank to 21.8% rep APR). See APR Examples.
How does it compare to a standard loan? If you borrowed, for instance, £1,250 over 2yrs, done right the MBNA 2yr money transfer card fee would be £37.38. The market's cheapest loan for the same is 12.6%, costing £170 in interest.
Money transfers are complex, so make sure you understand exactly how they work first - read our full 0% Money Transfers guide. Who should do this? Like 0% spending cards, these are also best for those who trust themselves to use the card as a one-off and make repayments before the end of the 0% period. If not, this can be a dangerous option, leaving you paying interest on a large debt. 3. If you're using a 0% purchases or money transfer card as a loan - a few key tips. With both methods...
- To TRULY replicate a loan, set up a monthly direct debit to repay a fixed amount which'll clear the debt before the 0% ends.
- Once you've done the planned spending, freeze the card in a bowl of water (yes, really, though put it in a sealed bag first). That'll ensure you aren't tempted to use it.
- If you really don't trust yourself with a credit card, don't risk it - a cheap loan may be a bit costlier, but safer. 4. Looking for a loan to repay existing credit card debt? The cheapest way to do this is usually a balance transfer. That's where you get a new card that pays off debts on old cards for you, so you owe it instead, but at 0%. Our 0% Balance Transfer Eligibility Calc shows you top cards, incl deals with £20 cashback, and our Balance Transfers guide explains how they work. This is for larger borrowing, as the issue with plastic is getting a big-enough credit limit. On £3k to £5k+ a standard personal loan becomes the prime option.
Yet loan acceptance isn't just about your credit history. Whether you can afford to repay is just as important, with your income a big factor. If lenders think you may struggle to afford to repay that amount, they'll reject you, even with a good credit score.
Our Loans Eligibility Calc incorporates your credit history and affordability, showing your acceptance odds. When borrowing...
i) Borrow as little as possible.
ii) Repay as quickly as possible (longer borrowing costs more).
iii) Never miss a monthly repayment.
Here are the current cheapest loans. All are REP APR, which sadly means only 51% of accepted applicants need to get the rate - the rest can be charged more...
- For £3,000-£4,999, Admiral* is 8.2% rep APR, Hitachi* 8.5% rep APR.
- For £5,000-£7,499, Admiral* is 3.4% rep APR, Tesco* 3.5% rep APR.
- For £7,500-£15,000, Cahoot* is 2.8% rep APR, while Yorkshire*/ Clydesdale Banks* and M&S Bank* are 2.9% rep APR.
See our Cheap Loans guide for more help and deals. Also see Rep APR Examples. Who's this for? Loans are costlier than the card approaches above as you pay interest, but the key is the repayments are fixed, so you just set up a direct debit and repay. There's also less temptation to borrow more, which is good for those worried about their financial discipline.
-
 With personal loans, bizarrely, borrowing MORE can cost less. While generally you should try to minimise borrowing, a peculiar quirk means with loans sometimes you actually pay less by getting a slightly bigger loan. This happens because rates decrease at set thresholds.
Eg, if you wanted to borrow £4,900 over 5yrs, the cheapest loan is 8.2%, so in total you repay £5,990. But borrow £5,000 and as the rate drops to 3.4%, the total repayment is £5,445. That's £545 LESS to repay - even though you borrowed £100 more.
So if you're borrowing close to a threshold (£2,000, £3,000, £5,000 or £7,500), use our Loan Cost Calc to see if you're better off borrowing a tad more (assuming you're accepted for the advertised rate).
- You're not certain to get the rate on a loan - you are on many credit cards. While our Loans Eligibility Calc shows your odds of acceptance for each loan, only 51% of accepted applicants have to get the advertised rate - so in most cases you won't know for sure the rate you're getting.
However, use our Credit Card Eligibility Calc and with many top 0% cards, which you can use as loans, you get more certainty, because the tool shows whether you're pre-approved for some cards. So as long as you've given correct info, you're 100% certain to get the exact deals specified (subject to ID checks).
- There's a RISKY way to give yourself a much longer 0% credit card loan. The longest 0% spending cards last for less than 30mths - relatively short compared to some loans. But simply shift the debt before the 0% ends to a no-fee balance transfer card and you can extend it at no cost.
However, this of course relies on no-fee 0% transfer deals still existing when your 0% card ends, and your credit score still being top-notch so you're accepted. So only do this if you're prepared to take the risk and you have a plan to repay if it doesn't work out how you hope.
The options above are for new, planned borrowing. Yet some try to borrow their way out of debt. It doesn't work.
Do any of these apply to your existing debts? - You can't meet minimum monthly payments.
- Your total debt is more than 1yr's salary (excl mortgage & student loan).
- You have sleepless nights or depression/anxiety over debt. If so, don't borrow more - instead get free, one-on-one debt-counselling help from Citizens Advice, StepChange or National Debtline. And if you need emotional support, try CAP. They're there to help, not judge. The most common thing we hear after is: "I finally got a good night's sleep." Read inspiring stories in our Debt-Free Wannabe forum and see our Mental Health & Debt and Debt Crisis Help guides. ____________________________ Top kids' savings, PPI delays & are you due PPI tax back? The Martin Lewis Money Show, ITV, 8pm Mon
Over to Martin: "Billions of pounds have been paid out in PPI, and many have paid £100s in tax unnecessarily. So in next week's show, if you've had a payout, I'll show you how to get the money back - plus there's help for those stuck in the PPI queue. And then we run through the top ways to save for your children. PS: If you missed this week's debt special, click the link to watch it on the ITV Hub." | | DON'T believe the fake ads on Facebook
Lots of scam ads that litter social media lie that we or Martin promote Bitcoin, binary trading etc. See Fake ads warning. | As one autosave app offers users a free £20... are the likes of Chip, Tandem, Plum & Moneybox actually worth it?
Autosave apps try to squirrel away some of your cash without you noticing. Most use clever tech and data to figure out what you can afford to save, then move money from your current account to your savings or investment accounts with them automatically. The idea's good. Many love 'em - they're an easy way to get into the savings habit, especially for app-happy, confident new savers. Yet the interest is often poor and they're not without issues. So here's a run-through of the biggies - full info's in Top Savings Apps... -
 Chip. Free £20, autosavings, but no interest. Connect your bank account to Chip*, and it uses an algorithm to work out what to save for you every 4 days. If it's right for you, use our MSE Blagged code SAVESTREAK (10,000 available) and you'll get £20 added to your savings - £10 after 2 autosaves and another £10 after 10.
Interest: None. Withdrawals: Same or next working day (must wait 48hrs after autosaves before withdrawing). Money protected? Your cash is held in a ring-fenced Barclays account, but not one subject to the usual savings protection. So if Chip went bust you're safe (though you may pay small insolvency fees), but in the unlikely event Barclays went bust your cash isn't protected.
- Tandem autosaving pays 0.5% interest. Tandem* autosaves, similar to Chip, and also lets you set up regular deposits, make one-off deposits and offers 'round-ups' (where transactions are rounded to the nearest pound, eg, buy a £2.70 coffee and it takes 30p for savings). While it pays interest, you'd need to save £1,000s for that to beat Chip's £20. More info: Tandem.
Interest: 0.5% AER variable. Withdrawals: Usually instant (via Faster Payments to linked current account). Money protected? Yes. Tandem is a fully regulated UK bank so savings up to £85,000 are protected.
- Plum. £5 sign-up bonus, easy way to INVEST not save. Plum* works via an app or Facebook Messenger. Use our link and you get a £5 bonus within 30 days of your first autosave. It works out what you can afford to put away and moves it to your Plum account. Then you can leave it earning nowt, or use its main feature to invest in a range of stock-market-type portfolios at different risk levels. If they do well they'll easily beat savings - if they do badly you'll lose money. See full info on Plum and read our New to Investing guide.
Interest: None, but you can invest. Withdrawals: Normally within 30mins. Money protected? If you're investing the money you are of course subject to market fluctuations - that's the point. While your cash is uninvested, it sits in an e-wallet provided by Payrnet, which Plum says is in a ring-fenced account at the Bank of England.
- Moneybox - save by rounding up transactions into a TOP 1.4% rate LISA or 1.65% notice account. Moneybox ISN'T autosaving. It was an early pioneer of 'round-ups' - though this feature's now also offered by Tandem, Monzo, Starling and many high-street banks. It also lets you make regular or one-off deposits. The big boon here is it offers two decent savings options (it offers investments too). Those aged 18-39 can get it to move money to the market's top cash Lifetime ISA at 1.4%, which is great for 1st time buyers, and it also has a 95-day notice account paying 1.65%; again this is in our normal notice-account best buys. See full Moneybox info , incl how to use it to invest.
Interest: Depends on what you pick, but up to 1.65%. Withdrawals: Depends on savings option. Money protected? Yes. The underlying savings are with Investec or OakNorth Bank and get the full £85,000 per person protection.
- Don't leave savings sitting in an autosave wallet - every few months move 'em to TOP savings accounts. These apps are good to get you in the savings habit, but Chip and Tandem especially pay low interest; and money sat in Chip and Plum accounts hasn't the strongest protection. So unless you've chosen to invest, we'd suggest every few months you move the savings money out into normal top savings, eg, Marcus* 1.35% AER variable easy access. More options in Top Savings.
| Boots 'up to 70% off' clearance coming this Fri - CONFIRMED. Rumours have been circulating online, and now we know for sure. Full info and what could be on in Boots sale boost. New. Cheapest UNLIMITED DATA Sim we've ever seen - £16/mth. MSE Blagged. If you're a data gobbler, newbies to Three* can get this 1yr mobile contract with unlimited data, mins and texts for £16/mth until Mon - the cheapest we've seen for an unlimited Sim. More help and deals in Top Sims. Martin: 'Brexit Day means NO CHANGE for your finances.' We formally leave the EU this Fri, so over to Martin: "Friday is a big political day, but not a big practical day for UK consumers. Whether it's mortgages, savings, travel rights or more, all are simply moved to the new transitional rules - designed to provide unchanged continuity. In other words, today's rules will still stand on Sat. The key change will be when the transition finishes at the year's end. What happens after that is up in the air, as it depends solely on what deal we get with the EU, if any. Of course, in the meantime as always there will be exchange rate and market fluctuations depending how various deal announcement updates are viewed." For what we know so far, see the MSE Brexit briefing - mortgages, savings, travel, pets & more. 26 cheap theatre tricks, incl £4+ West End tix, £10 Hamilton lottery & how to check views from the cheap seats. We're pulling back the curtain on our new Theatre Tricks guide. The new 'How much should you save for your child to go to uni?' calc. The English student finance system means most parents are expected to contribute, but aren't told how much. So a reminder (esp as Martin's been talking about it on telly a lot) that our new Living Costs Parental Contribution Calculator estimates how much you'll need to set aside. Plus, see Martin's briefing on how it works. British Gas customer? It's just slashed prices AGAIN with its cheapest deal since 2016 - yet to grab it & save typically £328/yr even existing custs must go via a comparison site. On Fri the new BG Energy Plus Protection Green Feb 2021v4 tariff launched, undercutting BG's already cheap switchers' deal. While not the market's cheapest it's furiously cheap for a Big 6 deal that existing customers can switch to. If you're on BG (not prepay) and aren't keen on switching firm, it's a no-brainer. Click the link to go through our comparison. | AAARGH - we've discovered 55% of people wait till the last week to get car insurance. Yet do it 20-26 days ahead and some SAVE £100s In 2018 we revealed the sweet spot to buy car insurance is about three weeks before renewal. That's because insurers view those who leave it later to be a higher risk. Simply grabbing insurance earlier means you can pay less, on average a staggering £550/yr less, as Julia tweeted: "OMG. Just got policy on 'Magic Day 21'. £600 saving. Thanks MSE." Now, again by analysing over 30m comparison site quotes, we've discovered 55% STILL get it in the last week. STOP, time it right - and if your renewal's not due now, get it in the diary. For full help, see Cheap Car Insurance, but to get you started: -
 Step 1. NEVER auto-renew & instead combine comparisons to scour 100s of insurers in mins. Comparison sites don't search identical insurers, nor give identical prices, so try as many as you've time for in this order: MoneySupermarket*, Confused.com*, Gocompare* and Compare The Market*. (See how we rank 'em.)
- Step 2. Check hot deals comparison sites miss, incl 'free' £55 Amazon voucher. Some deals aren't on comparisons, eg, Age Co* offers a £55 Amazon vch, while Co-op* offers a £50 food vch (vouchers can take 120 days from policy start date to arrive). See hot deals comparisons miss.
- Step 3. Then check big insurers not listed on comparison sites. Aviva* and Direct Line* don't appear, and as they can be competitive, they're worth looking into.
- Also check if these counter-logical tricks work...
- You don't necessarily need to be at renewal to save. See if switching mid-policy is worth it.
- Use trial & error to see if comprehensive is cheaper than 3rd party.
- Check if adding extra drivers slashes costs. If they're a lower risk than you, it can bring the cost down.
- See if legitimately tweaking your job description cuts costs. Find more help in our Cheap Car Insurance and Under-25s' Car Insurance guides, including how to bag extra cashback. | Martin: 'Worried about the new 40% overdrafts? There's some relief.' From April, overdraft changes mean almost all banks will charge 40% - a crippling rate which'll hurt many stuck with high authorised overdrafts. We've campaigned on this, and there was good news yesterday as the regulator responded. See Martin: 'Slapped wrist for banks & some relief for overdraft prisoners.' 13 FREE ways to relax & feel good, incl meditation apps, fitness podcasts & free-to-print colouring pages. See MSE Becky's tips to look after yourself at no cost. Last chance. FULL SERVICE car breakdown cover for £54/yr (via our discount). MSE Blagged. One of our top picks for a decade, AutoAid* normally offers a year's cover for £60. But use our link to start your policy by 11.59pm on Fri, and you'll get it for £54. AutoAid's well rated and covers you and your spouse/civil or common-law partner in any car you drive. And unlike basic policies which only cover breakdowns away from home, this covers them at home too. Similar AA/RAC cover can cost £100+/yr. Full info in Cheap Breakdown Cover.
Holland & Barrett 25% off everything code, incl free delivery. MSE Blagged. Strongest code we've seen. Ends Fri. H&B Get £40 cashback for investing £400. MSE Blagged. While it sounds similar, the following is completely different from autosaving above. If you plan to 'robo-invest' - where investments are selected for you based on your attitude to risk - then after fees, this Wealthify deal is equiv to a 9.5% head start if you withdraw after 6mths (the earliest you can). 1,500 avail. Robo-investing cashback The new MSE Forum opens on Fri 7 Feb (but you MUST check your email by Mon 3 Feb to use it). We can reveal the renovated MSE Forum is opening its doors a week on Friday (it will close from 3pm the day before, to get things ready). Users need to check their forum email address (it may be different from the one you receive this email on) is correct before Mon 3 Feb as passwords will be reset. Here's all you need to know on MSE Forum changes. | Tell your friends about us They can get this email free every week | 'Thanks. I got £1,100 claiming marriage tax allowance. It'll pay for my terminally ill wife to tick something off her bucket list' We're swamped with successes - but are you in one of the 2.4m couples missing out? We get many tales from users who have received huge cheques for marriage tax allowance. The most moving was from Tommy, who emailed us to say: "I saw in MSE's email I could claim marriage tax allowance. Claimed on Xmas Eve and was amazed to get a reply from HMRC within a few days - I'm getting a £1,100 rebate. My wife is terminally ill and this money will allow us to tick off another part of her bucket list. I can't tell you how grateful we are." Latest HMRC figures reveal there are 4.2m eligible couples with just 1.78m claiming, leaving 2.4m still able to do so. Full info in our Free cash for married couples guide, but in short: -
 Are you eligible? If you pay UK tax and can answer yes to each of these, then you are...
- Are you married or in a civil partnership? Just living together, even if you've kids, doesn't count - don't blame us, it's the Govt's aim to "reward marriage".
- Is one of you a non-taxpayer, ie, usually earning £0 to £12,500?
- Is the other a basic 20% rate taxpayer, ie, usually earning £12,500 to £50,000? If so, you qualify.
Don't just assume you're not eligible. Loads of people ask us things such as: "Can I still claim even though I'm a pensioner, I volunteer etc?" Or "I have some earnings but still not enough to pay tax". Don't overcomplicate it - if you answered yes to the three questions above, you're eligible. And if for some reason you're not, the application will tell you. Read our Marriage tax allowance quick application help and DON'T pay anyone to do it - DO IT FOR FREE.
- It allows the non-taxpayer to move some of their tax-free allowance to their spouse. Most people can earn up to £12,500 a year - their 'personal allowance' - without paying tax on it. With the marriage tax allowance a non-taxpayer can move 10% of this, currently £1,250, to their 20%-paying spouse. That means the taxpayer now has £1,250 of income they would've paid 20% tax on that's now tax-free - a £250 annual gain.
- Even better - you can BACKDATE this for up to four years. This means that if you claim now and backdate, you get this year's, and a cheque or BACS payment for all the four previous years' allowance you were eligible for. In total, some will get up to £1,150.
- Once you claim, you don't need to reapply every year. Your personal allowance will continue to transfer automatically to your partner until one of you cancels the marriage tax allowance OR you inform HMRC that your circumstances have changed, eg, because of divorce, employment pushing you into a higher-rate tax band, or death.
- Are there any downsides? There's a rare occurrence for non-taxpayers who earn almost enough to pay tax (say £12,200, £300 under the allowance) married to taxpayers only just above it (say £12,600, £100 over), when shifting the marriage tax allowance actually costs them more. This is because it could push the non-taxpayer into the basic-rate tax bracket.
Applying can also prompt HMRC to look at your tax position. As millions are on the wrong tax code, for some this means being told you owe it money (others that it owes you). If this happens, some people blame the marriage tax allowance - yet actually all that's happening is your application has crystallised HMRC to look at an existing problem. At some point you'd have needed to pay that anyway. So for £1,150 I wouldn't let it put you off. | | | Asos - 'Up to 70% off' sale
Chiquito - £1 tacos, norm £13ish (Thu only)
Co-op - £5 frozen meal deal
Travelodge - 20% off sale, incl Feb half-term dates
Tesco - £5 off £15 spend on cleaning/laundry | | MARTIN'S APPEARANCES (WED 29 JAN ONWARDS) Thu 30 Jan - Good Morning Britain, ITV, 7.40am
Fri 31 Jan - This Morning, ITV, 10.00am
Mon 3 Feb - This Morning, ITV, 10.55am
Mon 3 Feb - BBC Radio 5 Live, Ask Martin Lewis, 12.20pm. Listen again
Mon 3 Feb - The Martin Lewis Money Show, ITV, 8pm MSE TEAM APPEARANCES (SUBJECTS TBC) Wed 29 Jan - BBC Radio Cumbria, Money Talks with Ben Maeder, from 6pm
Fri 31 Jan - BBC South West stations, Good Morning with Joe Lemer, from 5am, Guy Anker
Mon 3 Feb - TalkRadio, Breakfast with Julia Hartley-Brewer, 9.45am, Oli Townsend
Mon 3 Feb - BBC Radio Manchester, Drive with Phil Trow, from 5.45pm
Tue 4 Feb - BBC Radio Cambridgeshire, Lunchtime Live with Jeremy Sallis, 2.20pm | QUESTION OF THE WEEK Q: I always buy annual travel insurance, but what if I change insurers after booking a holiday? Who's liable if something goes wrong? Jenny, via email.  MSE Tony 's A: Firstly, it's vital you get travel insurance ASAB (As Soon As you've Booked), so that your holiday is protected if something happens and you can't go. Hopefully you do that. As long as you have continuous insurance from that point you're covered - even if you change insurer. You'd then claim from the firm that was covering you at the time something went wrong. It's that simple. See Cheap Travel Insurance for lots more help. Please suggest a question of the week (we can't reply to individual emails). | 'I HAVE 72 LOYALTY CARDS' - WHERE DO YOU KEEP YOURS? That's it for this week, but before we go... after MSE Kirsty last week found her friend had over FIFTY loyalty cards stashed in her purse, we posted a pic on Facebook and asked where you keep yours. Some upload them to apps, others are old-school and punch a hole in them to put on a key ring, while one MoneySaver - who once counted she had an astonishing 72 cards - has filled three separate purses. Let us know if you can beat that and what you do on our Loyalty cards Facebook post. We hope you save some money,
The MSE team | |
No comments:
Post a Comment