If you feel you could be about to climb aboard a train set for the scary land of debt, it may be the perfect time to think about downsizing your life.

This may sound dramatic, but it’ll be worth it to stop debt getting you in its clutches.

1)      First of all, look at your property. By downsizing your house you could save on energy bills, mortgage payments and maintenance costs, not to mention the added bonus of reduced cleaning time! Perhaps your living situation has changed since you bought the house; kids leaving home or the dissolution of relationships can all see a person left in a house that is unsuitably large for them. Try not to let emotional attachment to the memory of a situation be transferred to the property. Anyway, a new home could mean a fresh start!

2)      Downsize your car. If the money you will save is not reason enough, think of the environment. By downsizing your car you would use less fuel, but how about swapping your ride for a bike? Perhaps not for every journey – balancing twenty shopping bags across the handle bars may not be such a great idea – but consider it for some.

3)      If your social life is your number one expense, you need to address it. How about organising something a bit different, like a film night or running club? That way you’ll see your friends, save money, skip the hangover and even improve your health! Everyone’s social life needs a shake-up every now and then, and this could be the perfect catalyst to inject some debt-avoiding fun into your life!

Contrary to the old saying, it seems that money can buy you happiness if new figures on the spending habits and financial position of Brits are anything to go by, suggesting that it makes sense to get on top of your finances in time for the New Year.

In Mintel’s British Lifestyles 2011 report, almost six in ten (58 per cent) Brits earning £50,000 and over were “satisfied” with their life, while just four in ten (43 per cent) of those earning under £15,000 said the same.

Of course, it isn’t always easy to manage you finances given the higher cost of living in the UK but having a basic current account, such as those available at http://www.securetrustbank.com, can provide you with the right instruments to do so. Indeed, the report also revealed that consumer confidence remains low, with many Brits struggling to balance their income and outgoings.

Alexandra Richmond, senior consumer analyst at Mintel said of the figures: “A lack of money holds people back from realising their dreams and as a result, the unemployed and those living in lower-income households are the most likely to say that they always want more than they have. They are less satisfied with life and less likely to agree that they have achieved the things they wanted to.”

 Holidays are increasingly seen as an expensive luxury, which is why many people in the UK are now seeking to holiday at home. This has sparked a boom in self-catering accommodation holidays that allow couples and families to take control of their budgets and enjoy all the comforts of home while on a break.

With increased demand for quality holiday homes, homeowners living in holiday hotspots by the sea and in the countryside are left wondering: “Would someone to Rent my cottage?” If you are lucky enough to own a home in a tourist friendly area and maintain your home well, you could find your property paying for itself. If you have a second home you can choose to rent it out for weeks at a time when you don’t need to use the property yourself. Or if your primary home fits the bill you could let it out when you yourself choose to take a break away – funding your own holiday in the process.

With the staycation here to stay, many property investors are even choosing to buy properties in rural and coastal areas in order to cash-in on the demand for accommodation. For more ideas on how to make money from your home, see: here

In the current economic client most pet owners would feel some financial pain if their pet was to suffer an accident or fall ill. As a consequence, many are turning to the sensible option and taking out pet insurance from the likes of Pets at Home Insurance , but what should you be looking out for when you take out your policy?

The age and type of your pet will play a part. Not only is it possible to take out specialist policies for different types and even breeds of animals, but you can also choose how to pay. Some policies will cover your pet for all of their life, while others will cover them on an annual basis. The age of your pet and their general health may affect the policies they are eligible for. Any existing illnesses should be mentioned when you purchase your policy, and in addition you may find that if your pet has a predisposition to certain illnesses that cover for this may be limited of even excluded completely. With pet insurance the most important message is to always make your insurer as fully aware of all the information as possible and check the fine print carefully, you will be sure of just what protection you will get for your money.

If you plan on getting a car with Evans Halshaw in the near future, there are a great number of ways you can save money when you’re buying it. While hydrogen technology is still being developed to truly drop the long-term cost of cars, there are a number of other ways you can stay focused and get a motor cheaper in the showroom.

Firstly, don’t be fobbed off by excuses. In the past, dealers have pulled a number of tricks from up their sleeves. Reasons for not lowering the price of a car can border on the ridiculous, such as the need to get written permission from head office to offer a discount on a car – something that is wrong, given that nearly all companies offer discounts to serious buyers.

Know what you want, too. Decide on the exact model you’d like to get before you start shopping around as this will help you compare deals. If you stay flexible, you can pick up a bargain from stock, so long as the car meets all your needs, though you can learn a lot about it and use it as a means of being taken more seriously by sellers.

Finally, be sure to time your purchase well. Most carmakers offer bonuses to dealers based on quarterly sales, so shop around towards the end of the quarter such as during late December or late March, when dealers want to meet these targets.

A number of UK businesses now use external consultants in a bid to maximise the profitability of their business in these testing economic times. It is of course essential that such an investment is protected with consultancy insurance – such as that available from Markel – but there are also other factors that need to be taken into consideration.

Here are our top ten tips to help you get the most out of a consultancy service:

1. It is important to be aware of the benefits of using a consultant

2.     Before you start hunting for a consultant, you should be clear on which services you require from them

3.     You will then need to draw-out a plan outlining how you intend to select your consultant

4.     It is better to select a small number of carefully-chosen consultants, as opposed to just one, who you can approach

5.     When you have made your selection, send a proposal request to each consultant

6.     Choose your consultant

7.     Negotiate the terms of the consultancy agreement

8.     Make the necessary arrangements to prepare the agreement

9.     In order to ensure that any problems are addressed and resolved as quickly and effectively as possible, you must manage your chosen consultant

10.  Finally, be sure to evaluate the difference using a consultant has had on your business output – From here you can decided whether it makes financial sense to continue using a consultant for the project – or indeed future projects – or not.

 The topic of increased University fees is never far away from the newspaper headlines, meaning students are now well aware of the need to make their funds go as far as possible.

Step one should be to make a list of all your incomings and outgoings and to plan for any large expenditure. Some students find it wise to save expenses like their rent over a period of time in advance, using a separate savings account. Look online for deals from the likes of Secure Trust Bank. Another good budgeting tip is to work out how much money you will have left over after bills and expenses and divide this by the length of your term. From this calculation many students choose to withdraw a set sum of money at the beginning of the week so that they don’t lose track of spending on cards.

With the added news that rent costs for students are now on the up, (see: http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8645687/University-students-hit-by-rising-rents-and-fees.html) it’s time to take student budgeting seriously.

While you may be able to save money buying second-hand books, driving down the cost of living can be hard. Areas that are typically difficult to tackle are food and transport. So, walk when it is safe to do so, or invest in long term bus tickets and make savings. As for the essential that is food; remember a problem shared is a problem halved and look at sharing meals with your housemates to bring down the cost of the weekly shop.

Homeowners in the UK are being warned to plan ahead for the future in a bid to reduce their chances of facing repossession when interest rates start to rise. As a result, people who are in financial difficulty might want to look at ways of improving their money situation if house repossession could be on the cards. Selling your property can be a feasible option for preventing house repossession if done early enough and property buyer Gateway Homes can help you sell your property fast so you can free up equity in your home quickly so you can focus on fixing your predicament as soon as possible.

However tempting it may be, the worst thing you can do is bury your head in the sand and avoid the problem altogether as this will simple make matters worse. Should you get a notice from your lender informing you that mortgage payments have been missed, be sure to contact your lender as soon as possible informing them of how you plan to pay your arrears. Failure to do so could result in solicitors becoming involved.

In the meantime, be sure to research your options and take action with any feasible routes as soon as possible. For example, your lender may be able to reduce your monthly mortgage payments by extending the term of your loan or let you switch from a repayment basis mortgage to an interest-only mortgage.

A great resource for home related facts can be found at http://www.guardian.co.uk/business/2011/jun/27/house-repossessions-wave-interest-rates-rise.

Paying off your mortgage early is one of the best investments you can make. Getting rid of your mortgage debt quicker can relieve you of added stress and worry and will remove you from the gamble that is the UK property market. In addition, the money you will save on paying your mortgage off can be put to good use elsewhere, such as holidays and retirement.

According to official figures published in The Guardian this week http://www.guardian.co.uk/money/2011/apr/09/take-years-off-your-mortgage-overpaying, homeowners are overpaying their mortgages at a record rate over the past three months. Indeed national mortgage debt was reduced by seven billion pounds between October and December.

The data has been put down to factors such as the bigger deposits required of homebuyers and the large number of people coming round to the idea that, given the current climate, it makes sense to pay off as much debt as possible. Overpaying your mortgage can save you thousands of pounds in interest and will shave years off it.

Low savings and interest rates, and the potential of interest rates to rise in the near future are some of the common reasons why people are choosing to pay more off their mortgage.

A number of mortgage deals will allow borrowers to overpay up to ten per cent of their outstanding home loan each year without penalty, while borrowers on flexible, lifetime tracker and standard variable rate deals can overpay by as much as they like.

The average price of house in the UK saw a marked fall for the month of April according to the Halifax House Price Index.

The house price monitor found that house prices in the three months to April were 1.2 per cent lower than the previous three months, continuing the trend of decline which has been recorded since the middle of last year.

The average UK house price now stands at £160,395, which is four per cent above its April 2009 low but stands 20 per cent below the peak of prices seen in August 2007. As a result homeowners who are looking for a quick property sale are likely to have to set the price of their home at a considerably lower level.

Compared to April 2010 house prices show a 3.7 per cent decline – the biggest annual fall since October 2009 (-4.7 per cent).

Martin Ellis, housing economist, said: “Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices.  Signs of a modest tightening in housing market conditions, a relatively low burden of servicing mortgage debt and an increase in the number of people in employment are all likely to be providing support for house prices, curbing the pace of decline.  There are signs that house sales are stabilising albeit at a level lower than the historical average.”

With household budgets tighter than ever it can be hard to afford treats such as holidays and even little things such as family days out. Instead of cutting back completely you could try to maximise the money you have coming in, so that you do have a little bit extra in your pocket.

The best way to raise cash is to use your assets – namely your possessions, skills and time and this is easier than you think.

For most people their home is their biggest asset. With property prices so high, demand for rooms to rent has increased, so you may want to consider renting out a spare room to a lodger. This will allow you to earn a good extra income without having to pay tax. Just remember that you will have to inform your home insurance provider of any extra people living in your home.  You will also need to investigate the responsibilities relating to being a landlord.

You can make cash from your home without taking in a permanent house guest. TV and film production crews are willing to pay good money to film inside and outside even the most ordinary of homes, so head online and sign up to specialist websites to maximise the money you can make from your home – after all it’s likely to be your biggest investment.

The most obvious way to make extra money is of course to undergo extra work, however if you are working 9-5 you are unlikely to want to come home and head off to an evening job. Instead look into more lucrative opportunities where you can choose the hours. Options include housesitting, tutoring, or even modelling – which isn’t just for the body beautiful.

A battle by a student to have her faulty laptop replaced has highlighted a little exploited law designed to protect those buying on credit.

The female student took her case to the Financial Ombudsmen Service (FOS) after a laptop she bought on her credit card developed a serious fault after just six weeks. Although she tried to return the laptop to the shop they refused to act on the matter. The student then called her bank and asked for a refund under Section 75 of the Consumer Credit Act.

The act states that when a purchase is made with a credit card, the card provider is liable alongside the retailer. Initially the bank refused the student’s request, claiming I was “not responsible for the quality of goods bought with a credit card”. However the FOS has now ruled in the student’s (Miss T’s) favour.

The Ombudsmen told the Daily Mail: ”On the basis of the evidence supplied by Miss T, we said that the laptop was not fit for purpose, as it should not have developed a fault of this nature so soon after Miss T had bought it.”

They continued: “We pointed out to the card provider that it was jointly liable with the supplier for any breach of contract.

“The supplier had been in breach of contract by selling a laptop that was not fit for purpose, so we told the card provider to reimburse Miss T for the cost of the faulty laptop and of the two independent reports she had obtained.”

The number of redundancies in recent years, particularly among those in the public sector, has resulted in many people who have not needed to look for a job in a long time suddenly finding themselves forced into job hunting. If you are in the midst of a mission to find a position here are a few pointers to help you with your quest:

1)    Customise your application

Although your first priority should be to assemble a quality resume, you should be clear that when it comes to applications one CV will not fit all; you need to tweak your CV for every position you apply for. Yes this is time consuming; however with so many people out there chasing the same job it is important to take your time and look at the job specification then highlight any skills or experience on your own CV that meets it accordingly. If you struggle to know which skills and experience to prioritise for each application, recruitment agencies should be able to offer you some help tweaking you your CV.

2) Explore new avenues

Although vacancies advertised in newspapers are a good place to start your job search, there are an abundance of other ways to maximise your search. Put your CV online using sites like monster. Set up alerts for jobs appearing in industry publications so you are the first to know about specialist positions and approach recruitment agencies who will give you help and support in your search.

3)Tell your friends you are looking

Former colleagues and industry contacts will be able to inform you of any positions within their own companies which you are qualified for, often before a vacancy is even advertised. Keep in touch with associates using business networking tools such as Linkedin and make people aware of your availability when you start a job search.