Benefits of a Workplace Pension

A pension is your financial security for your future after you have retired from working. For the majority of people the government will provide a state pension, covering all of your basic needs, but adding money to a workplace pension during your career is beneficial to you.

Since 2012 there has been a rollout of workplace pension schemes as mandatory. The company you work for now has to offer a pension scheme that they will also pay into, alongside your own contribution from your wages. You can opt-out of the scheme, but one has to be offered to you legally.

Automatic Enrolment

A workplace pension takes money straight out of your wages each month, and if with an automatic enrolment workplace pension they too will have to match your contribution. You are eligible for automatic enrolment if you work in the UK, are over 22 but under State Pension age, earn over £10,000 per year and are not already part of a private pension scheme.

Final Salary Pensions

There are two main options for workplace pensions. Final salary schemes (defined benefit schemes) are linked to your salary. So if your wage increases, so does your contribution to your pension pot. Your pension is based on the number of years you have paid into the scheme and your salary at retirement. Over time you agree to pay a set percentage of your wage into the fund, with your employer making up the rest.

Money Purchase Schemes

Becoming ever more popular, money purchase schemes (defined contribution schemes) are where your contributions to the pension scheme are invested in order to aim for a certain amount upon your retirement. This type of scheme offers tax benefits as well as the flexibility of risk, where you can choose the level of risk that you want your investment to be made, even if you can’t guarantee the amount you will receive upon retirement.

Other Benefits

Workplace pensions schemes often offer other benefits as well, including life insurance as part of the pension, giving your dependents a lump sum or access to your pension in the event of your death during employment, access to your pension if you are forced into early retirement due to ill health, and pensions for your partner and other dependents when you die.

Planning for your financial future is important. PiggyBank is here to support short-term fixes and assist with payday loans over a number of weeks and months, however, we strongly recommend you think to the long-term too and secure your future.

Are Payday Loans Cheaper than Unarranged Overdrafts?

If you are in need of a short-term solution to financial worries there are often only a few possible options open to you. If you are unable to borrow money from family members and loved ones to help you get through this tough period, the other options are to take out a payday loan or go over your current account limit with your bank and have an unarranged overdraft.

PiggyBank understands that there is often scepticism around the payday loan market, but when you compare our service to that of an unarranged overdraft it can quickly become apparent that it might be better to utilise a short-term loan rather than delve into your overdraft unannounced.

Unarranged Overdrafts

A study by Which? in 2016 found that for many high street banks, the charges relating to a person using their overdraft facility without prior agreement with the bank can cost up to as much as £90 over the course of a month. This charge is based on borrowing £100 within this time frame. This is due to the banks stating that it should always be a last resort, with other forms of borrowing available via their facilities, and at a cheaper rate. For many people, though, these are not viable options as they would not qualify for assistance.

It can be difficult to work out exactly how much it will cost you if you end up using your overdraft without an agreement with the bank, but the survey found that the charges range from £20 to £90 depending on who you bank with. Compare this to the associated charges on a payday loan over the same period o and you can see why many people choose to look for assistance from a payday loan lender.

One thing is for sure, having no cap on the charges leads to wildly differing rates depending on your bank, and although many now have a text message alert system to warn their customers when they are overdrawn, and how long they have to prevent a charge, this isn’t always enough to stop an individual stacking up bank charges.

Payday Loan Agreements

Every payday loan provider is different but we certainly know that at PiggyBank, a £100 payday loan, with a repayment period of one month offers a much better payback term than an unarranged overdraft with your high street bank. The interest you’ll pay on top of the £100 you borrowed is just £24.

We’ve made it as easy as possible to see exactly what you have to repay us, including interest, so there are no hidden costs with PiggyBank. Our interest comes to 0.80% per day, meaning we are one of the most cost- effective payday loan lenders on the market. Our service is a short-term fix and we would never advise that you use our service as a long-term financial solution, as that it where the interest rate can cause greater problems for the individual.

PiggyBank offers a simple solution to your short-term financial needs. Our application process takes minutes to complete and is 100% online. All we need from you to get started is a few personal details, your income and expenditure, employment information and bank account details. You can choose to take out a payday loan with us from £100 up to £1000, repaying anywhere between 7 days up to 5 months.

If approved we aim to have your loan direct into your bank account within an hour. You’ll be given access to an online account with us, where you’re given multiple repayment options, including part payment. We want to make it as simple as possible, so you can save interest by repaying the loan early and only paying for those days you’ve had the loan, part payments throughout the duration of the repayment term will also reduce the interest and a payment plan is an option to spread the cost.

Taking out a payday loan with PiggyBank is a sensible option for those seeking short-term financial assistance. Compared to unarranged bank overdrafts it is a no-brainer to utilise the experience of a payday loan lender with no hidden costs.

How to Treat Your Loved One on Valentine’s Day

With Valentine’s Day coming up tomorrow it is the perfect time to have a think about what you are going to do to make it a very special day for your loved one. Loads of romantics will push the boat out, putting them at risk financially as a result. There is no need to do so; with a few things, you can do to make sure your loved one is appreciated, without getting into debt.

Make a Gift

What better way to show your love to your partner than to make them a personalised gift. This can be a small gift or card, made by your own hands, or something bigger for a shared living space. The choices are endless and it shows real thought and compassion.

Budget Getaway 

It can be expensive to get away for Valentine’s night itself but that doesn’t have to stop you planning in advance and shopping for a bargain. Make it a UK one-night stop over in countryside B&B, utilising our beautiful country.

The Way to a Man (or Woman’s) Heart

Why pay out a huge amount of money on a fancy restaurant this Valentine’s night, when prices are inflated and everywhere is busy? Why not cook a romantic meal for two at home, where you can set the mood lighting and even cook together as a playful entry to the most romantic night of the year.

PiggyBank offers a payday loan service for those individuals in need of a short-term fix. If you’d like to find out more about our service, browse our website and see if we can help you out until your next wage packet.

Bank Overdrafts found to be more costly than Short Term Loans

Research from consumer champions Which? has found that bank overdrafts can be eight times more costly than payday loans.

Borrowers needing as little as £100 could be charged up to £156 more by their bank than it would cost at a payday lender, it has been revealed.

Which? compared the cost of borrowing £100 for 30 days using an unauthorised bank overdraft.

It found some banks charge more than seven times the maximum £24 charge on a payday loan.

Customers who need £100 could end up paying as much as £180 in fees at their bank if they borrowed the money across two monthly billing periods, according to the findings.

Which? found that NatWest could charge £180 to borrow for 30 days over two billing periods – a difference of £156 compared with a payday loan costing £24.

Customers using Lloyds or Santander could be charged £160 to borrow across two billing periods, £136 more than a £24 payday loan, Which? found.

A PiggyBank payday loan of £100 will cost the consumer £24 for a 30 day period. The benefit of a PiggyBank short term loan is the customer is able to pay back early and save money on interest, as interest is applied on a daily basis. If a customer is unable to make their legally binding loan repayment due to a change in circumstances, PiggyBank will freeze the customer’s interest and charges, and work with them to clear the balance in a manageable way.

IN THE PAPERS

Bank overdrafts 8 times more costly than payday loans, study shows- The Financial Times

https://www.ft.com/content/a5f68312-ed52-11e6-930f-061b01e23655

Bank overdraft charges higher than those from payday lenders – Which? report- Sky News

http://news.sky.com/story/overdraft-charges-by-banks-higher-than-those-from-payday-lenders-report-10760017

The banks that charge more for an overdraft than a payday loan – an astonishing 650% more- The Mirror

http://www.mirror.co.uk/money/banks-charge-more-overdraft-payday-9775192

How to Ace a Job Interview in Advance

The job market can be extremely tough. You are either well prepared but do not have any experience or you have too many qualifications. Acquiring a great job is quite an accomplishment.

However, most people do not do that well at interviews. With the pressure building up they start feeling stressed. Emotions are normal and an optimal amount of stress does help your mind work quicker. The best way to take the edge off is to prepare in advance.

Do your homework

Dozens of people are chosen out of thousands based on their CV and cover letters. But when dealing with a manager face to face, things are slightly different. There are a few standard questions you can expect to be asked, such as ‘Where do you see yourself in five years?’ or ‘Why did you apply for this particular job’. Most people do say that they would still like to be working for the company which they are interviewing for right now, and they applied because they like what the company stands for or does.

However, things could then get a little tricky. The follow-up question will most definitely be ‘And what is that?’ If you did not do your homework on the company, you will surely never be called back again.

How to prepare

Research the company on the internet. Know everything about the biggest project it had and certain industry trends. It is advisable you know who the CEO, founder and other important people are. Search their profiles on LinkedIn, if they have one, and see what they have been working on lately. Find information related to how this company came into existence. Try to correlate every single piece of information with your own strengths.

Become familiar with all of the company’s products or services. If you can, try to come up with original ideas that could be applied for an added value. Make a list of all the potential opportunities you see, and how your own experience and expertise could improve certain aspects of the sector you will be working in.

The art of selling yourself

Remember, at an interview, you have the chance to sell yourself, so do it well. Think about certain potential questions in advance. Even if the question the interviewer will ask you does not relate to your accomplishments but is meant to assess your knowledge of the company, you can still say you agree with a certain aspect of their core beliefs, and so on.

If you are a graduate, you will most definitely be asked about how and why you chose a specific course. ‘I just like it’ is not a good answer. You have to be more specific. Start by giving an example of a personality, an event, a magazine article that made you acquainted with the field, and then talks about what you love specifically, how you progressed and what you want to learn in the future.

Finally, dress appropriately. No matter how great you are in your field, a good first impression is always a big plus!

Writing a Kickass Cover Letter

In a world defined by ’30 under 30’ type lists, everybody wants to do an outstanding job. However, most jobs worth their hype require a lot more effort than usual.

Differentiate yourself

A cover letter is not mandatory, but it does help. Remember, you will not be the only one applying for that particular job. Many people will just send in their CV. However, as impressive as your accomplishments might be, there might be a candidate with similar strengths as you. A good cover letter will give you an extra edge.

What not to do

When put into a position of writing a cover letter, most applicants use a robotic style remnant of middle school teaching. This does not leave a good impression on managers as they do probably read hundreds of them on a daily basis. They will automatically think you do not want the job badly enough and will see you as just another run of the mill applicant.

What to do

Think about your audience

Just replacing your name on an online template will not be enough. You need to personalise your cover letter so that it captures the attention of the manager. Think about why they would pick up your letter from a big pile.

Don’t just transform your CV into prose

Most people put in a little more effort; however, they just describe what they’ve already put into their CV. While a CV is pretty standard – degrees, past jobs, known languages, etc, with a cover letter you have the opportunity to be more creative. Think about the requirements of this job. Correlate them with past projects you’ve worked on or skills that are unique to you and will bring an extra something to your future team.

Do not use clichés

There are certain words that are so overused in cover letters that they lose their meaning. While you will be tempted to say you are a ‘perfectionist, hard worker’ or anything along those lines… don’t. Everyone will be writing just that. The manager will instantly know if what you say is true or not just by reading your cover letter. You are definitely not a perfectionist if your letter is full of grammatical errors and that you are not a hard worker if you just write in a robotic way using a standard Google search template.

Focus on the job requirements

Read and reread the advertisement based on which you are applying for this particular job. See and understand what will be expected of you. While this is obvious, most people skip it. In a cover letter, you are basically selling yourself. What makes you special? Are you a good fit for the company? Why? Take every single requirement in the ad and write about a certain skill you have that would apply here. For example, if they need someone proficient in a particular computer program, do not just write that down. Describe any actual experience you have in this area, maybe something related to your previous job.

In the end, remember… the most important thing is, to be honest.

Alternatives to Short Term Loan Solutions

Looking for an alternative to a short term loan? Well good for you: researching all of the options available to you will help you make an informed decision to get you back on the right track, financially speaking. Finding a way to pay your debts that will not cost you more money is the choice that most people will opt for when they understand different options that can help them manage their finances. Below is a list of alternatives to those short-term loans that can help you solve or manage your money without placing yourself further in that financial hole.

Communicating with the Company You Owe

It is always more advisable to call the company you owe to speak to someone about payment plans. Explaining the situation you are in and showing a willingness to pay really goes a long way. When you are speaking about a plan it is important to know what you can and what you can’t afford to pay.

Request an Advance in Pay

If it is possible to get an advance on your wages, then take advantage of it. This is money that you are already planning on working for, so if your employer is willing to give it to you for a good reason, then smile and say thank you! With this, you will need to plan ahead for that period of time that you will not receive as much money in your payslip, so making smart decisions is a must in this situation. You also do not want to get into the habit of asking for this, so make sure that you don’t.

If You Have a Savings Account, Withdrawal from It

If you have a savings account it may be necessary during tight times to rely on this to get you out of tough spots. Once you are able you can replace the money and then you are debt free and a little less stressed out. Make sure that you replace the money back into your savings as soon as you can, it is also important to build up that nest egg as much as possible!

These are examples of options to think about before you pay high-interest rates for a loan that is going to put less money in your pocket in the long run. Getting yourself out of an unpleasant financial situation does not require an unpleasant solution. Take your time and calmly think about the avenues of money you have access to. Drawing from those assets make sense and will make your life easier. If your assets are not a viable option, make the effort to speak with the company you owe to make a financial arrangement that you will be able to honour. Approaching short term loans direct lenders to borrow money are not always the answer to a long-term solution.

Starting a Hobby in 2017

What greater way to enter the New Year than by taking up a new hobby, and potentially finding a passion to last a lifetime. Whether you take up a sporting pursuit, start sewing, reading, writing, hiking or any of the plentiful options you have at your disposal, have fun and take a look at some of the key benefits awaiting you.

Take a Break from Life

Sometimes it is nice to break and do nothing, but quite often we feel at a loss and a hobby provides you with that break away from ‘normal’ life but with a purpose behind it.

Challenge and Learn

A new hobby can take you out of your comfort zone and teach you new skills and new things about you. It is a positive way to challenge your body and mind and become a better person as a result.

Find a New Community 

Even if you are pursuing a solo hobby there will be a group of people also doing the same thing. Whether you are looking for inspiration from a section of life you’ve never encountered before or meeting people in person or online, it can be really fulfilling.

Improve Your Health 

Hobbies can lower your stress levels, allowing your mind to focus elsewhere. It has also been shown to lower blood pressure and lower rates of depression.

Spend Less Money Frivolously

If you find a passion for something that you love, you are less likely to waste money on things to just fill your time. By all means, spend on what you love, but you’ll find it helps the bank balance in the long run.

Brokers Vs. Lenders: What They Do

If you have always wondered what the difference between a broker and lender is then you have landed in the right place. Knowing the difference will allow you to decide which option to choose the next time you are applying for a loan. Although the decision you make will not negatively impact your ability to receive a loan, understanding their roles in the application process will help you understand the process you have chosen to undertake.

The Broker’s Role and Responsibility

Brokers offer their services to help you find a loan that best suits your needs. They are the liaison or the go between the customer (the person looking for a loan) and a lender (bank or short-term loan company). They can work with a variety of lending sources which can be beneficial for shopping for the best rates available. With a broker, you will fill out a normal application, over the phone or online and then the broker will pass your information to the lenders they work with in order to find you a loan that meets your needs. They may do this by filtering out the lenders that don’t meet the criteria or by simply passing your application in a secure way to them so that they can decide if you are eligible to apply for a loan or credit card.

The Lender’s Role and Responsibility

The lender is the company that gives you the loan. They are usually a single lending source; you would apply for a loan directly from them, without a broker. This is accomplished by contacting the company and applying for the loan in person, over the phone or online, you will be the party responsible for providing the information necessary to complete the application. If you are accepted by that lender then you may be able to receive your loan in as little as an hour. If you are declined then they may be able to pass your information to other lenders who may be able to help you. If you are declined for a loan, however, it would be a good idea to get a copy of your credit report so that you can see why you may have been declined. You should also think carefully before applying for another loan.

Brokers and Lenders Making Your Choice

Now that you know the difference between brokers and lenders you will be able to make an intelligent decision based on your needs. The use of a broker can save you time and confusion simply because they understand all of the nuances of their industry while going directly to the lender offers direct contact with the lender and gives you more power to make your own choice. It comes down to how much control you want to have during the process and how comfortable you are in handling its completion.

Brokers are available to help you find the right loan for you. They usually will have a pool of lenders to choose from and will decide based on their expertise the best choice for you. Going directly through a lender will give you more power over the process, if you are planning to reach out to multiple lenders this can be time-consuming, however, depending on your outlook it can be considered worth the effort since you will be the person who is responsible for repayment.

For a payday loan or short term loans, contact us for more information.

What Creditors See On Your Credit Report

In today’s world, we are constantly bombarded with advertisements for quick cash and free credit scores. Credit reports are a necessary when buying a home, car, and other big expenses that will require a loan. Knowing the information that the creditors will see on your report can make a huge difference in the amount of money you will receive or if you will receive a loan at all. Making sure your credit report is accurate before giving a lending agency permission to obtain it can save you time and aggravation during the process. When you request a credit report, you should know what the information on it represents and how it will impact the goals you are trying to reach.

Personal Information

This information does not contribute to your credit score. It is used to identify you.

  • Legal Name
  • Current Home Address
  • National Insurance Number
  • Birth Date
  • Employment Information

Credit Accounts

This can also be referred to as your trade lines. Every agency that you have established credit with reports the following information.

  • Type of account you have (credit card, car loan, etc.)
  • Date the account was opened
  • The amount of credit or amount borrowed
  • Your current balance
  • Your payment records (including all late payments)

Credit Search

This is a list of everyone who you have given permission to run your credit in the last two years. There are two types of searches that will appear on the list.

  • Voluntary Inquiries: Requests you have made for your credit report.
  • Involuntary Inquiries: When a lender or other agency requests your report.

When reviewing this information, you want to pay attention to involuntary inquiries, make sure that no one has run a report without your permission. If you do not recognise a name that is listed, make sure that you follow up and find out who they are and why they ran an inquiry.

Public Records and Collection History

This information is available from public records that are obtained by county courts and from collection agencies.

  • Bankruptcies
  • Insolvency
  • Home Repossession, or if you have unpaid debt at a previous address
  • If you have committed fraud
  • County court Judgement

If you find that information is incorrect or has not been updated, you must ensure that it gets updated. You can do this by contacting the original lender or agency and request that they send the updated information so your report will be corrected accurately. Don’t trust that this will happen automatically, follow-up will be necessary to make sure that it is taken care of appropriately.

Knowing what information will appear on your credit report will prepare you to answer any questions that lending agencies will require you to answer accurately. It will also allow you to make sure that all of the information is accurate. If you are planning on making a big purchase that will require a loan you can count on a credit report being required. Understanding the information provided and what your score actually means in relation to your ability to receive a loan is important.

For a payday loan or a short term loan, contact us for more information.