Breakdown Cover for Commuters

There is a French proverb, “Tant va la cruche à l’eau qu’à la fin elle se case,” that translates as “The pitcher that goes oftenest to the well is the soonest broken.” It means, quite simply, that the thing you use the most often is the most likely to break or wear out. This definitely applies to cars or trucks that are used by commuters. This makes it easy to see why insurance companies that offer breakdown cover or roadside assistance place commuter vehicles in a special category.

Daily Driving

While it is well known that a vehicle needs to be driven periodically to move fluids through the engine, a vehicle that is driven daily in all sorts of weather really does take a beating. If you live in an area where there is winter snowfall, moisture and salt can do quite a number on the undercarriage of any vehicle. Daily driving means added miles, sometimes under difficult stop-and-go driving or in areas where it is imperative that everyone should drive up to speed to prevent fender benders and traffic accidents. While roadside service or breakdown cover does not apply to fender benders or collisions, it can take up the slack when overstressed parts break. It can be the difference between arriving on time and arriving woefully late.

Regular Breakdown Might Not Cover Commuting

With that said, regular breakdown insurance might not cover your commute. Fortunately, there is a type of breakdown insurance that is created specifically for commuters. It will address distance driven, probable stresses along your route and spell out the number of times it can be used in a given timeframe. While this will vary from company to company, be sure to let your insurance agent know if you will be driving your vehicle to work each day. This includes if you will drive it to a commuter parking lot and catch some form of public transport or rideshare to continue on to your work destination.

Always Be Honest about Your Driving Plan

You should always be honest about your driving plan. Otherwise, your insurance company might refuse to cover costs because of your failure to conform to the specifics of your plan. Letting your insurance company in on your travel commitments will help them to make sure that you have the coverage that suits your need and that you are neither over-insured nor underinsured for your activities. This will save you both embarrassment and money because you will be paying the premium for the insurance that best suits your vehicle needs.

Don’t Forget the Small Details

Even if your policy is primarily for commuting, don’t forget to share the small details about your vehicle use. Keep in mind that many breakdown or roadside assistance programs don’t cover problems that develop within ten miles of your home. For that reason, you might want to add a “home” or “driveway” policy to your regular roadside assistance. That way, if you lock your keys in the car, wake up to a flat tire or a dead battery, you know who to call to get it fixed.

Age of Your Vehicle

Discuss the age of your vehicle and its mileage with your insurance agent. Breakdown policies that help pay for repairs often have age guidelines for the allowable longevity of your car or truck and the number of miles it has traveled. Its age will affect whether you invest in breakdown insurance or in roadside assistance.

In Summary

It is important to get the right policy for your driving activities. A frank discussion with your insurance agent will help make sure you have the right insurance for your needs.

How Debt Consolidation Loans Ease Money Worries: Consolidate Debt to Improve Household Budgeting and Affordability

Leading money charity, The money charity stated in their report that the average household debt in the UK was £9,305. A debt consolidation loan involves placing different credit obligations, such as small unsecured loans, credit card debt, hire purchase agreements and personal overdrafts, under one roof. This means lower monthly repayments, a reduced rate of interest and a defined period of borrowing.

Debt Consolidation Loan Reduces Monthly Payments

Consolidating debt involves making a single monthly payment to either a secured or unsecured creditor. This can help in the following ways:

  • Improved money management and household budgeting as there is less scope for error.
  • Fewer charges are incurred for missed and late payments on personal debt.
  • Spreading the repayments over a longer period helps to increase affordability which will ease money worries.

Consolidating Debt at a Lower Rate of Interest

Credit card debt, personal overdrafts and the majority of hire purchase agreements charge a high rate of interest. Compare the APR on different, active credit agreements to confirm this. A debt consolidation loan reduces monthly payments due to a combination of an extended term and a reduced rate of APR.

  • It was stated in Credit Action report that the average rate of APR on credit card debt was 17.73%. The rate is an average of 32% APR on cash advances.

According to, 2 million customers have been rejected for credit card balance transfer deals in the last 12 months. This has meant that £3.5 billion of credit card debt could not be transferred to an interest-free deal. A total of £535 million of interest payments were made due to this. A debt consolidation loan may be the only realistic way of clearing personal debt.

A Debt Consolidation Loan Has a Defined Term

Unlike a credit card, a debt consolidation loan has a defined term. This means that, provided the borrower maintains monthly payments for the duration of the agreement, the loan will be fully cleared. Making the minimum monthly payment on a credit card means that the balance won’t be cleared for well over 40 years. In practical terms, the only way a balance will ever be cleared is through debt consolidation.

A debt consolidation loan can reduce monthly payments and improve household budgeting. Whilst it can alleviate money worries, turning unsecured into secured debt is rarely the right move as it gives creditors collateral (property) in the event of default. Whilst unsecured loans may be marginally more expensive and have a reduced term, it remains the preferred option for those who wish to consolidate debt.

Payday Loan – Should You Fund Christmas with a Payday Loan?

With the Christmas period fast approaching many consumers are perhaps wondering just how they will fund the festive period and afford all those presents and gifts for loved ones. Taking out a payday loan has become a popular way of bridging the gap between paydays and can provide a fast cash solution in a financial emergency, which is why many may consider them a good choice when it comes to Christmas.

What is a Payday Loan?

The concept of a payday loan is nothing new but they have become very popular in recent years especially with the tough economic times in many countries. They work like a cash advance on your wages and are generally repayable from your next pay cheque. Loans are available for any amount up to £1500 over a term of 14 days. Some lenders will offer larger loans if you are a high income earner and it is possible to borrow over longer terms. The problem with payday loans however, is the high rates of interest charged and this is something consumers do need to think carefully about.

The interest charged on a payday loan can be anything from 300% to 3000% as lenders are free to set their own rates. Some lenders will charge a fixed fee per £100 borrowed and this can be anything from £15 to £25. There is often little difference between loans with interest added or fixed fees. Not all loans or lenders are the same and consumers are advised to research the market thoroughly before applying.

So Should You Fund Christmas with a Payday Loan?

These loans can be expensive, but they can sometimes work out cheaper than taking out a cash advance on a credit card or extending your bank overdraft. But you should remember that you have to repay the loan in full on the due date, unlike a credit card or overdraft where you can spread the cost.

Some lenders have anticipated a rise in the number of consumers taking out payday loans over the Christmas period and have devised new terms for this purpose. A Christmas payday loan is relatively new to the market but lenders offer slightly lower rates and extended terms of up to 31 days.

What to Do Next

If you are considering a payday loan to see you through Christmas, do budget carefully to ensure you can comfortably afford to repay the loan at the end of the term. Compare as many lenders as possible to find the best deal for you and the best rates, but do ensure the lender is reputable and established within the payday loan industry before applying.

How to Improve Your Credit Status

Improving your credit status can take time and understanding. Having a good credit score is very important if you wish to take out any loans or need credit in the future. Most companies will deny you if your credit score is low or non existent. Your credit rating tells lenders how reliable you are as a borrower. If you have low or no credit, most lenders will think that you will not be able to pay them back and so they will not let you borrow any money or give you any kind of credit. This may be due to your past payments when you may have defaulted on credit accounts, had late payments of debts, bankruptcy or any foreclosures. When you have a high credit rating, most lending companies will be glad to give you the credit that you are asking for.

There are a few ways that you can improve your credit rating. Before trying any of these methods, I would recommend that you do some research and find the best ways to attempt doing this for your best chances of improving your credit score. One way that you can improve your credit score is to sturdy your account credit status. If you have any bills or debts, it is crucial that you pay them off immediately or it can future bring down your credit rating. The quicker that you pay these bills and debt and if you pay them on time, the better your credit history will become. If you have already missed previous payments, bring the situation up to date by paying up the old dues. If you don’t have the funds to pay off these debts, you will need to contact the creditors or take professional advice from a credit counselor to help you get back on the right track. Taking these important actions will not instantly help your credit but the sooner you act upon managing your debts, the sooner you will be able to pay your bills and improve your credit rating.

After you have your credit rating back to normal, you will have a much easier time getting the loan or credit that you are seeking. Remember that improving your credit can take some time and effort. You will need to save money and be sure that everything that you owe is payed off. Avoid buying any items that are unnecessary and save money by turning off lights and electronics in your home, thus saving on your electric bill as well as turning down the thermostat, thus saving on your heat bill. It can be embarrassing to get turned down when applying for a loan so take the time to follow the steps above for the chance to improve your credit status and get your life back together. You want your credit rating to be improved so that you never get turned down again.