Private And Public Sector Organizations Prefer Direct Debit

The rise in popularity of online banking has led many British consumers to abandon traditional payment methods, such as cash or cheque, in favor of automated payment methods, such as direct debit. As a result, many organizations have had to expand the range of payment options they offer.

Flexibility

According to one estimate, over 3.3 billion direct debit payments were processed in 2011, an increase of two-thirds o the number processed ten years earlier. One of the reasons direct debits are becoming widely accepted is their flexibility. 

They are ideal for ach payment processing of the same or varying amounts on the same or varying collection dates. They are also less expensive, in terms of transaction costs, than traditional payment methods, including credit cards. 

They are also immune to the effects of unexpected events, such as postal strikes, which can play havoc with payment methods that rely on paper. Their only real drawback is that they are not suitable for one-off payments.

Efficiency

Public sector organizations are always looking to improve their efficiency as an alternative to making job cuts. As a result, many public sector organizations, including local councils, the Driver and Vehicle Licensing Agency (DVLA), and TV Licensing, now offer direct debit as a payment option for Council Tax, business rates, commercial and domestic rent, road tax, and many other recurring payments. In fact, many private and public sector organizations offer discounts to encourage consumers to pay by direct debit.

Direct Debit Guarantee

Direct debits for the public sector ensure both parties that bills are paid on time. If a direct debit payment fails, both the payer and payee find out quickly and can take prompt action to rectify the situation. 

Furthermore, the Direct Debit Guarantee entitles consumers to a full and immediate refund if an error is made in the payment of a direct debit from their bank or building society account, regardless of who actually made the error. 

Direct debits can only be set up for payments to approved payees, who are subject to rigorous quality control procedures and must provide indemnity guarantees through their banks, so unscrupulous organizations cannot take payments that are not due to them.

Direct Debit Versus Standing Order

Over 75% of British consumers already pay their Council Tax by direct debit or standing order. The principal advantage of direct debit, however, is that the payee can make amendments to the payment amount without needing to obtain the payer's signature on each occasion. 

The payee must, however, give advance notice, typically 10 working days, of any change(s) to the payment amount and collection date. If the collection date falls on a weekend or bank holiday, the payee must take the payment after the due date unless they give advance notice. 

Most bank and building society accounts, including some special savings accounts, accept direct debit payments. Banks and building societies retain the details for 13 months from the date of the last payment. 

At the end of this period, known as a dormancy period, the payee must obtain the authority of the payer to continue collecting payments.

AUTHOR BIO

Peter Smith holds a Master's Degree in business administration and has worked extensively in the public sector during his career. He regularly writes about automated payment methods, including direct debits for the public sector and various business-related websites and blogs.

3 Things to Do Before Retirement (Other Than Securing Finances)

Retirement (Photo credit: Tax Credits)

Whether you are prepared financially or not, there’s more to retirement than just having enough money in savings, life insurance and retirement funds to survive after your working days are over. Sure, financial stability is the foundation to a happy, stress-free retirement, but there are a few other things that must be done before you clock out from your last shift on the job.

The following three pieces of advice will give you the peace of mind you need to enjoy a retirement full of fun and relaxation.

1. Pay off debt: Ideally, you should be working toward a zero-debt goal long before you set a definitive retirement date. As a rule of thumb, you should focus on paying off high-interest rate debt first (such as credit card debt), then pay off moderate-interest rate debt (such as car loan debt) and then pay off your low-interest rate debt last (such as your mortgage). Obviously, you want to make regular payments on all of your debt, but whatever high-interest rate debt you can pay off early, find a way to do it. It will help you save money in the long run. Paying off all debt before retirement gets a huge monkey off your back and allows you to quit working free of worry.

2. Retire near family and friends: We’re living in a world where it isn’t always common to reside in the same town (or even region) as your family and close friends. Retirement can be lonely; if you aren’t located near the people you love and enjoy spending time with. If you moved years ago for work (or if your family or friends moved away for work), it may be a good idea to think about moving closer to someone or a group of people you can depend on for help in your older years. A two-hour drive is the longest distance that should separate you from your closest friends and family members. As you grow older, the importance of this point will become clearer.

3. Clean out the house: Preparing your home for retirement is a must. You and your family have probably accumulated a lot of stuff over the years. Some of this stuff may be junk, and some of it may be for keepsakes. Dig through closets, the attic and other storage spaces, and parse out what you want to keep and what you want to give away and throw away. This will save you and your family a huge hassle down the road, because sooner or later, someone is going to have to clean it out. It also frees up space in your home for new uses, like a craft or hobby room.

Retirement is supposed to be fun and free of worry. By making the necessary preparations, you will make more time for traveling and doing the things you always dreamed of doing when you were working.

As a regular contributor to several finance websites, like www.CreditScore.net, Stella Walker uses her knowledge of economics, consumer trends and budgeting to help readers better understand their own personal finance issues. Feel free to leave your questions and comments for her below!

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Insuring Your Teen Driver as an Older Parent

Mark McCrell is an auto aficionado who loves to drive his 1974 Buick LaSabre around town and write about all things auto. He currently blogs for the website AutoInsuranceQuotes, which specializes in cheap auto insurance. 

Of all the benefits and drawbacks of becoming a parent later in life, a strong benefit is that you are most likely more equipped to handle the financial challenges that accompany raising a teenager. This is most true when it comes to adding your teen driver to your car insurance policy. Your greater age and experience are powerful allies to have in your corner for this fight. Here are some tips for surviving adding your teen to your insurance policy. 

You have some good things on your side as an older parent: 

● Your credit score is generally higher 

● You’re more likely to be married, which can lower your premium overall 

● You’ve most likely been with your insurance company for a long time 

● You’re more secure in your financial affairs, including investments and saving 

● You’re more likely to be a homeowner, in which case you can bundle home and auto 

● You’re more likely to have multiple cars under the same policy 

Tips to insure your teen driver for less: 

Give them an inexpensive, safe car 

If you are giving them a car, make sure that it’s a safe car that’s cheap to insure. They may beg for the dragster or the muscle car, but if you put your foot down and get a car that’s safe and reliable, then you can make sure they are safe and save money on insuring your teen. 

Raise their deductibles 

Raise the deductibles on your teen’s policy to $1,000 more. They are almost sure to have a few small dings and scrapes along the way and if you don’t have to file a claim for every paint scratch, then you will save money in the long run with a claims free discount. 

Drop the comprehensive coverage 

If your teen is driving an older, or less expensive car, you may want to drop your comprehensive coverage entirely. If your car is worth less than the deductible, then you definitely want to consider dropping it off your policy. 

Continued education 

Enroll your teen in a defensive driving course, or some insurers will send an information packet out or instructional DVD to your teen. If they complete the included material, then you could get another break on your insurance. 

Don’t let your teen modify their car 

Many teen drivers may be in to learning about car modifications that make cars look cooler or driver faster, but these modifications can lead to huge jumps in your insurance premiums. If you modify your car to give it more horsepower or modify the body to make it look “sleeker,” then it could pose a greater risk for theft or vandalism. If your teen wants to help modify a car, just make sure that it’s a friend’s car. 

There are lots of tools in your tool belt as an older parent that will help you to build a better financial future for your teen driver. Make sure you take advantage of your wisdom and experience and turn it into extra money in your pocket each month, just in case your teen wants to borrow money to go to the movies.

Understanding the Real Story with Payday Loans

Payday Loans Neon Sign (Photo credit: rinkjustice)

Payday loans can provide instant financial relief to those who are experiencing short term cash crunches. Payday lending companies specialize in short term loans that target employed individuals as well as those with stable and regular source of income. However, it is important to note that this short term loan was never meant to be treated as an alternative to regular bank loans.

Payday loans have a distinct purpose and you have to understand that they are in a completely different league from regular bank loans. If your need for extra cash is minimal and immediate and you are looking for a short term payment period, then a payday loan may be the ideal choice for you.

When it comes to payday loans and other types of short term loans, it is extremely important that you abide by the terms and conditions of the loan and ensure that you have the cash to pay back the loan when it matures. For payday loans, you have to develop the mindset that you are drawing part of your unearned income. Thus, you need to set aside that portion of your next paycheque for the amount that you need to pay back the loan even before you take out one.

Think short term when it comes to payday loans or cash advances. This means that such loans are to be used as financial tools for exigencies that are temporary or transient. And while it may be tempting to opt for payday loans every time we need cash, it is extremely important that we don’t misuse or abuse this credit option.

To avoid serious complications and problems when you take out payday loans, it is important that you know and abide by the rules with regard to the use of payday loans.

• Don’t use it as substitute for regular loans – You are inviting serious trouble when you look at payday loans as fallback in case your application for a loan with the bank is denied.

• Don’t use payday loans to pay off other loans – This unsound practice will dramatically escalate the cost of your loans. And this is the main reason why people get into a vicious debt cycle.

• Don’t borrow more than you need – You have to observe restraint when it comes to this type of short term loan. Take out only the amount needed for essential things.

One of the best ways to find the most reliable and trusted providers of payday loans is by checking the latest information and feedback in websites that specialize in reviews and comparison of various lending companies.

Of course, you would want to find out more about the track record of the companies before you make your final choice. In addition to this, it is also imperative that you assess the kind of service that they provide to their clients. You are better off with a company that provides 24/7 customer assistance.

Finally, before you finalize the loan agreement with a lending company, it is essential that you read through the fine print of the loan agreement and clarify all issues with the company representative.

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Graduates Moving Back Home To Retired Parents

 (Image credit: Getty Images via @daylife)

It should be a time of happiness and satisfaction but the graduating class of 2012 are feeling a sense of defeat. A combination of a weak labor market and economic climate many graduates are forced to move back home. But in mom and dad's house many things have change since the student was a freshman. Mom and dad are now retired and were not expecting their kids moving back in.

These boomerang graduates are facing double digit unemployment rates in some fields. Even with advanced degrees, graduates can't land jobs. To make matters worse even if they can find a job, grads are burdened with school loan debt or have extensive credit card debt putting them into a position of not being able to make it in the real world. Making moving back home the only viable option.

Moving back home is not anyone's first choice. Lots of graduates have tasted the free life from living at college and don't want to give that up. Many parents have not planed on having anyone move back in, many have already made plans to downgrade to smaller homes. They also have tasted the life of not having any children at home.

If the student does have to come home there are a few things to make the situation equitable for both parties.

Helping Around the House

Moving back home changes the dynamic for the graduate. When they were on their own they called the shots. When coming home it changes to community mode. That means pitching in on the household work. Grads should offer to help around the house with cutting the grass, cleaning the house, or cooking meals. 

Also contributing to the family financial needs should be addressed. Some amount of money should come from the grad that should go to the mortgage or rent. There is an increase in the variable expenses of the home, the grad should step up and contribute their fair share.

Retired parents still need to pursue their goals and plans. The financial impact of the student returning should be kept at a minimum and it will be with the student contributing financially. It may even benefit the parents by having the grad take care of the home, dog and other obligations when traveling on vacation.

Full and Open Communication

Good communication is the most important part of moving back home. Mom and Dad must be specific and honest about the rules and expectations. The parents must explain that this is a short term solution. They must set up rules concerning friends, activities, and time frame.

The student should thank the parents and throughout the process express appreciation and gratitude. Even though the situation is not perfect, any frustration or anger should be kept in check and not vented on people who are helping you.

The parents should make clear that they are retired and their finances must not be put out of balance. Large purchases and expenses are not allowed, the future of their retirement is at stake.

Falling Back On Old Habits

There is nothing like the benefits of living at home. I tell my kids they will only appreciate it when they are on their own.  Plenty of food, someone to cook it for you, your laundry done, and a clean place to live. Sometimes when coming home you fall into the old parent-child, mothered relationships. If parents fall back into this old style they could be hurting the student. 

At this time of their lives with hopes of starting their career and lack of money it contributes to a lack of self-esteem. They don't need to be coddled. The parents job is to point them in the right direction and offer encouragement. 

Parents also have old habits like paying for everything. It's an old habit parents must try to avoid. When you see your child working on their job search and it's tough you may want to help financially. Remember they are adults now and must figure this out themselves. 

Always be Searching for That Job

The students job when living at home is to be always searching for a job. It's not time to lie on the couch and watch Oprah. Hit the pavement a good part of the day and when home be on the computer sending resumes, emailing perspective employers, and networking.

During this process, the student must be communicating the progress or lack of progress they are making. The parents saw to it to give the grad a good education, the grad. should respect the parents sacrifice and apply themselves fully.

The Parents Main Goal

When things aren't going well a loving parent always wants to step in and make things better. But when the children are adults it is the the job of the parents to show them how to fix their own problems by being independent. Going through this process will build a better relationship between parent and child. Parents will gain a whole new respect for their child and the child will see their parents in a whole different way. 

During this process, sadly, the parents can really do some damage to their retirement nest egg. If you are not able to pay expenses because you are helping your kid out, you on the wrong track. 

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Career Advice for College Students About to Enter the Job Market

(Photo credit: Wikipedia)

With another school year just over, countless college seniors are preparing themselves for gainful employment. Students will draft resumes and request letters of recommendation, each hoping that their record stands out among the rest. It’s likely that hundreds of similarly qualified college grads will vie for the same few positions in a company.

In other words it’s no secret why so many seniors would be anxious about their job prospects—times are tough. You can see the evidence of student anxiety over the job market on college campuses across the nation. Most students who attend job recruitment sessions want helpful career advice rather than detailed information specific to a company’s recruiting needs. Networking and communication skills will make the difference in a young professional’s initial foray into the job market. Students must understand the importance of marketing themselves to potential employers if they want to be part of the American workforce.

With so much at stake, it’s critical that college students are prepared for their careers as soon as they receive their diplomas. Here are some tips for students intimidated by the lack of job prospects as they begin their final year in college. 

Build marketable experiences in college

When you apply to jobs right after college, you want to cite skills and exploits that you undertook and learned from. These ‘marketable experiences’ garnered through earnest involvement in organizations and institutions would serve to highlight your ability to a potential employer.

Use these resume decorations to your advantage as a way to showcase your strong suits. Positions in student government, founding campus organizations, speaking on a panel on behalf of the university: students should understand that employers see these experiences as a signs of leadership, perseverance and commitment—all great qualities in an employee. Be sure to include only the experiences that you can discuss in length and those from which you can cite real life lessons. Otherwise you’ll look as if you’re padding your resume. 

Cultivate your knowledge in the field

You may lack hands-on experience for your first real job after college, so try tempering that inexperience with in-depth knowledge of the requisite field. A potential employer interviewing you will be well aware of your relative inexperience if they know you’re a recent college graduate. Before an interview, use all the resources at your disposal to research the fundamental components of a job.

When you meet with a potential employer, surprise them by showcasing a strong command over knowledge related to the job—be it business, marketing, engineering or design—to prove that you the basics necessary to flourish in the position. There’s nothing wrong with exuding enthusiasm during an interview. After all, it doesn’t hurt to be charismatic about your profession! 

Make connections where you can

Remember that you’re surrounded by useful resources in your university. Feel free to utilize these resources to make in rows with a contact that may prove to be useful in the future—that’s why they’re there! You can investigate useful connections with professors of related disciplines, relevant student organizations, or visiting professionals that work with the university. While you’re in college, you have access to all the resources you could ever need, so take advantage of your time and use them to their full capacity.

Carol Wilson is a freelance blogger who writes about business, finance, and higher education for businessinsurance.org. When she’s not writing about her passions, Carol is usually out in the sticks hiking or brushing up on her photography. Feel free to write her some comments!