Every year, thousands of people pay hundreds of pounds for “added perks” on their bank account that they don’t ever use. These packaged accounts, which charge monthly fees of up to £15 for benefits such as travel insurance and breakdown cover, make up a quarter of current accounts available.
Michelle Slade, of Moneyfacts.com, says these accounts used to offer more competitive credit interest and overdraft rates, but this is no longer the case.“Packaged accounts can be a good option if you use the benefits fully, but in most instances people don’t. Monthly fees can quickly add up, so if you don’t use the benefits you’re paying good money for nothing. Better deals can be found without having to pay a monthly fee.”
2 DON’T BE FOOLED INTO HIRING ELECTRICAL ITEMS
It may be tempting to rent a widescreen television at a monthly price you can afford, but this is one of the biggest mistakes you can make. With renting you are left with nothing – only the prospect of never-ending monthly payments. If you can be patient and save the money for a few months instead, you will give yourself a chance to buy it outright.
For example, you can hire a 19in Sanyo television at Rentaldeals.co.uk for £3.46 a week, or £179.92 a year. But you could buy the same brand new model from Amazon.co.uk for £217.16. Those who are tempted to hire a Bosch washer/dryer at a cost of £7.84 per month, or £407.68 a year, could buy it new from Argos for £546.27.
3 DON’T FALL FOR THE FREE LAPTOP TRAP
Free laptop deals with mobile phone contracts are very popular at the moment, but it is essential that you read the small print of the contract, as you may be paying much more than necessary.
Mike Wilson, the manager of mobiles and broadband at Moneysupermarket.com, says that by comparing deals, you could save hundreds of pounds over the term of the contract, enough to buy a better laptop elsewhere:
“Some of the mobile tariffs offering this type of free gift will tie you into an 18-month contract at upwards of £30 per month, but if you don’t use the inclusive minutes and texts then you’re better off with a cheaper, more suitable contract, and buying the laptop yourself.”
Source
Sunday, February 28, 2010
Monday, February 15, 2010
The cost of boiler breakdown cover
Research from consumer organisation Which? found that nearly one in three of all new boilers will break down within their first six years of operation, with repair costs often running into hundreds of pounds.Similarly, to replace a boiler printed circuit board, which is effectively the 'brain' of the boiler, would cost around £220.
The cost of repairs can spiral up to £1,200 to replace the four key boiler parts – and this doesn't even factor in call-out charges, or hourly rates, which can make your overall bill even more painful.
If you wouldn't be able to cover these costs, then heating cover can provide peace of mind that repairs will be paid for if your boiler stops working. Policies start from just £6 a month.
Despite this, the number of people taking out heating cover on their boilers has dropped 40 per cent in the last year, according to comparison website uSwitch.com, and two thirds of households don't have any form of emergency heating cover in place.
Will Marples, energy expert at comparison website uSwitch.com said: "Consumers have to weigh up carefully for themselves whether the cost of boiler cover is a price worth paying.
It can cost from as little as £6 a month, but the key thing is to consider the impact of your boiler breaking down and whether you would be able to afford replacement or repair."
Our table shows some of the most cost-effective boiler breakdown policies currently available. Remember that you don't have to sign up for heating cover with your gas supplier, so you can choose the most appropriate cover from any provider to suit your needs.
Try to go for a policy which includes an annual gas safety check, as this will help minimise the risk of carbon monoxide poisoning.
Mr Marples said; "Household budgets continue to be stretched, but what seems like an easy saving could cost you dearly in the long term. Those who have cancelled or decided against cover might think they aren't just taking a chance with their money, but if they are also not getting their boiler checked they are taking a chance with their health."
Always read the small print before buying heating cover, as some plans might not be as comprehensive as you think. For example, some limit the amount you can claim or the number of call-outs you can have each year, while others won't replace your boiler if it breaks down beyond repair and is more than seven years old.
You should also check with your household insurer that emergency breakdown isn't already covered by your home policy, although often even when it is, cover limits tend to be relatively low.
Some insurers include it as standard in their buildings cover. For example, Legal & General includes home emergency cover of up to £150 to cover call-out fees, labour costs and materials.
Prudential also automatically includes home emergency cover in its home insurance policies. This covers call out fees, parts, labour and materials up to £250 per call-out for emergencies relating to the main source of heating in the home.
It also covers emergencies relating to electricity supply, internal plumbing and drainage, as well as locks, doors and windows.
You should also bear in mind that if you have a new boiler, this sort of cover may not be necessary at all, as you may already be covered for breakdowns by a warranty.
If you are claiming benefits, then paying for cover could again be unnecessary, as you may be eligible for a Warm Front grant of up to £3,500 to cover you for boiler repairs or replacement.
Source
The cost of repairs can spiral up to £1,200 to replace the four key boiler parts – and this doesn't even factor in call-out charges, or hourly rates, which can make your overall bill even more painful.
If you wouldn't be able to cover these costs, then heating cover can provide peace of mind that repairs will be paid for if your boiler stops working. Policies start from just £6 a month.
Despite this, the number of people taking out heating cover on their boilers has dropped 40 per cent in the last year, according to comparison website uSwitch.com, and two thirds of households don't have any form of emergency heating cover in place.
Will Marples, energy expert at comparison website uSwitch.com said: "Consumers have to weigh up carefully for themselves whether the cost of boiler cover is a price worth paying.
It can cost from as little as £6 a month, but the key thing is to consider the impact of your boiler breaking down and whether you would be able to afford replacement or repair."
Our table shows some of the most cost-effective boiler breakdown policies currently available. Remember that you don't have to sign up for heating cover with your gas supplier, so you can choose the most appropriate cover from any provider to suit your needs.
Try to go for a policy which includes an annual gas safety check, as this will help minimise the risk of carbon monoxide poisoning.
Mr Marples said; "Household budgets continue to be stretched, but what seems like an easy saving could cost you dearly in the long term. Those who have cancelled or decided against cover might think they aren't just taking a chance with their money, but if they are also not getting their boiler checked they are taking a chance with their health."
Always read the small print before buying heating cover, as some plans might not be as comprehensive as you think. For example, some limit the amount you can claim or the number of call-outs you can have each year, while others won't replace your boiler if it breaks down beyond repair and is more than seven years old.
You should also check with your household insurer that emergency breakdown isn't already covered by your home policy, although often even when it is, cover limits tend to be relatively low.
Some insurers include it as standard in their buildings cover. For example, Legal & General includes home emergency cover of up to £150 to cover call-out fees, labour costs and materials.
Prudential also automatically includes home emergency cover in its home insurance policies. This covers call out fees, parts, labour and materials up to £250 per call-out for emergencies relating to the main source of heating in the home.
It also covers emergencies relating to electricity supply, internal plumbing and drainage, as well as locks, doors and windows.
You should also bear in mind that if you have a new boiler, this sort of cover may not be necessary at all, as you may already be covered for breakdowns by a warranty.
If you are claiming benefits, then paying for cover could again be unnecessary, as you may be eligible for a Warm Front grant of up to £3,500 to cover you for boiler repairs or replacement.
Source
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