At the very minimum, the law demands that motorists must have third party insurance cover, in order to meet the costs of medical care and personal liability should they be involved in a serious accident.

MoneyExpert.com spokesman Sean Gardner insisted that cost could never be considered an adequate excuse for failing to take up an essential insurance policy.

He commented: “It’s a real worry that so many people persist in driving without insurance. They are putting the personal and financial security of others at risk.”

There are also indications that failing to secure an adequate insurance policy is not the only crime some motorists may be guilty of committing.

According to the Essex Echo newspaper, police in the county have recently noted that a series of registration number plate thefts could be attributed to criminals simply intending to avoid the payment of car insurance and road tax.

It is understandable that during the present financial climate even the most law-abiding members of the public may be driven to extremes, particularly those with secured property or secured loans, who may now be finding that the usual avenues of refinancing are becoming closed to them because of new strictures being imposed on lending criteria by secured loan, mortgage and remortgage companies.

It is perhaps surprising then, according to a report recently published by Chiltern Debt Management, that for the first time ever the average level of debt of a consumer on an informal debt management plan has dipped below the £26,000 mark.

The organisation’s Debt Monitor also revealed that the average of total debt has decreased by around £400 since the start of the new year. This, the analysts claim, is proof that consumers are managing indebtedness much better by preventing debts from escalating, as had previously been the trend.

Acknowledging that credit is becoming much more difficult to secure during the current financial climate, with tighter limits being applied to credit cards – it is estimated that in the region of 60% of Britain’s £25billion of problem debt is on cards — and very much reduced mortgage options available, a spokesman for Chiltern, Nathan Gladwell, commented that the present crisis was inducing those who were having difficulty with their finances to seek out other options.

He went on: “Add to that the rise in food, fuel and energy costs and it’s not surprising that people are feeling the pinch in their pockets. Those who are struggling financially have to readjust their spending to more realistic levels and consider other options, such as informal arrangements.”

This increasing movement towards debt management as a means of solving long-term financial difficulties was further reinforced by the TDX Group, which provides detailed debt collection information to banks.

Speaking very recently, Mark Onyett, chief executive of TDX, said that 2008 was likely to be a boom year for Individual Voluntary Arrangements (IVAs).

He commented that as the number of problem debts increased, up to 600,000 people could be forced into bankruptcy or in to taking up an IVA.

“For the vast majority of people this year,” he went on to say, “refinancing and remortgaging won’t be available as a solution. The choice will be narrowed down to bankruptcy, a debt-management plan or an IVA. There could therefore be a doubling of the number of IVAs.”

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

Rental yields in central London can be up to four times higher than rental properties in the south-east of England.

London will apparently remain the most popular property investment region in 2008; with Scotland expecting to generate a 5% increase in rental yields, and the north of England a 4% boost and also experiencing the most rapid expansion, according to the survey. Additionally, 71% of those questioned were ‘generally optimistic’ on the outlook of the coming year.

Alliance & Leicester stated that professional landlords with large portfolios were generally financially secure and able to save a portion of their profits from letting.

The analysis further revealed that nearly half the landlords owning twenty or more properties realized enough profits to supplement their savings, while a further 40% of landlords were managing such lucrative operations that they relied on their portfolios as their main revenue.

“It is encouraging that buy-to-let landlords indicate they are feeling buoyant about the outlook for 2008. Regardless of a tough financial year, it is clear the buy-to-let property market is still healthy for longstanding landlords, especially for those in the south-east of the country,” stated Jeremy Claridge, head of specialist mortgages at Alliance and Leicester.

A RICS representative commented that deficient incentives for buyer-hopefuls, in conjunction with economic uncertainty, is prompting an increase in tenant lettings, providing increased comfort for landlords. 

RICS also revealed in its quarterly Lettings Survey, that the demand for family housing was currently higher than for flats due to an abundance of the latter in the market. 

Although the latest data showed 25.2% more chartered surveyors reported a rise, as opposed to a fall, in demand for family houses, the survey did caution there would be some variations of uncertainty for landlords. 

Jeremy Leaf, a spokesman for RICS, expressed that the tightening lending criteria and successive interest rate rises had begun to hit the buy-to-let market. 

Supporting his claim, 16.9% reported a rise in demand from flats - down from 36.9% in the last quarter. 

Mr. Leaf added, “With rents still on the increase many would-be-buyers will find accessing the housing market even more difficult as they struggle to raise the capital for that first important purchase. However, many landlords will still take solace from uncertainty in the economy and enjoy the gains from rising rents.”

Six providers reduced their SVRs by less than 0.25%, while rates on two other mortgages have been slashed in line with the recent Bank of England cuts. 

Beginning January 1st 2008 Standard Life Bank will shrink its Freestyle SVR by 0.25% to 7.21%. 

In keeping with the cuts, HSBC Bank plc (HSBC) has revealed it will reduce its variable mortgage rate by 0.25% on December 24th 2007 from 7.00% to 6.75%. 

HSBC was quick to react to the Bank of England’s decision on December 6th to cut interest rates, dropping the rate on its tracker mortgage almost without delay. 

Following its latest reduction, HSBC hailed its variable mortgage rate as being at least 0.24% lower than numerous other main street lenders. 

However, its analyst Lisa Taylor commented that it compared unfavourably with the pace at which providers slashed rates last August in 2005 – which was the last time the Bank of England reduced rates. 

Ms. Taylor stated, “The last time we saw rates fall back in August 2005, 46 lenders had made announcement the rate of change now appears to be relatively slow.”

According to mortgage broker, John Charcol, they offer better value because borrowers are not left “at the mercy of the lender.” Mr. Charcol proclaimed his confidence in trackers since only a few mortgage lenders lowered rates in keeping with the Bank of England’s recent cut in interest rates. 

Ray Boulger, senior technical manager for John Charcol, has been recommending tracker mortgages for people who wanted a variable mortgage and said those people had “really come into their own.” Adding, “We have seen over the last few years there is always a proportion of lenders who do not move their rate in line with the Bank’s rate and most of the time a tracker mortgage is a quarter of a [percentage point] higher than a fixed rate mortgage, providing the starting point is good.” 

Mr. Boulger further commented that because of the credit squeeze, some lenders had reduced the number of mortgages in their portfolios to lessen the volume of business they were managing. 

He also predicted the availability of trackers would remain strong in 2008, and did not expect lenders to place restrictions on them as base rates fell. However, he also does not believe there will be a significant rise in people switching mortgage lenders in the coming year. 

“The reality of people deciding to look at their mortgage product is based on whether the value of a discount mortgage is cheaper than a tracker mortgage, or vice versa,” said Mr. Boulger.

In its analysis, mform.co.uk also raised concerns that many mortgage companies were not making charges clear on their websites. 

The slippery practice of obscure mortgage exit fees remains the norm in spite of the FSA ruling that next year customers can reclaim fees they may have paid at a higher rate than what was revealed in their original terms and conditions. 

Offering relief of exit fees, mform.co.uk’s report shows the major lenders including the Royal Bank of Scotland Group companies, Cheltenham & Gloucester, Standard Life Bank and Lloyds TSB have completely abandoned the fees - even while most other lenders are still charging over £100.

Francis Ghiloni of mform.co.uk, stated it was good news some lenders were scrapping exit fees and the trend for rising redemption charges had stopped thanks to the FSA. 

However, he also alleged that exit fees did not directly relate to the cost of administration when closing a loan, and borrowers were beginning to realize that the additional costs were just part of the price of a mortgage deal. 

Mr. Ghiloni further surmised, “Borrowers who regularly re-mortgage and move from lender to lender need to take account of exit fees as well as application fees and other costs which will have an impact on the true cost of their loan. They should be considered at the start rather than come as a nasty surprise when it’s time to move on.”

The frenzied crowd who fall into this category will apparently overspend an estimated £594 million this Christmas, announced Egg yesterday.

Egg researchers state this lack of planning and shopping at a more leisurely pace will drive shoppers to overspend their budgets by an average of 39%, or approximately £150 for each late shopper.

Contrary to popular belief, the Egg study also found that women are equally as likely as men to fall into the category of panic-buying; reaching for just about anything to fill a package or stocking at the last minute – rather than remaining level-headed and budget-conscious.

It’s a huge waste of cash and credit; undoubtedly adding to the heap of stress most people already feel in their tightening budgets – not to mention the constraints on time – in their already very busy lives.

Alison Wright, Chief Marketing Officer at Egg, said, “Each year we get 12 months advance warning that Christmas is coming, but still often resort to last minute panic buying. Consumers need to try to find ways to drive down the overall cost of Christmas - one way seems to be by avoiding those last minute shopping sprees, when lack of choice and panic buying are rife.”

Conversely, payments association APACS reported last month a prediction in the fall of cash spending to the tune of 5% over this Christmas season – dipping from £19.8 billion in 2006 to £18.9 billion.

Credit card mogul MasterCard reported weaker sales in shops for the month of November, showcasing a decrease in the annual retail sales growth rate from 4.5% to 4%.

The latest overall retail spending figures, released yesterday, seem to support the declining credit usage trends.

Bearing in mind these facts and figures point directly to human beings attempting to stay afloat financially, while putting a bit of figgy pudding on the Yuletide table, will ultimately benefit them by using what cash they have, rather than landing deeper in the hot winter coals of over-extended credit.

Many credit card issuers charge an additional whopping 2.75% in commission for every transaction made overseas; and the Post Office warns that many people are naïve to the fine print in their credit card’s contract.

Post Office Director of Lending Gary Fitton stated, “For many people, going abroad for Christmas is a great way to relax and not have to worry about cooking Christmas dinner. However…many people could be returning from their Christmas break with a lot more than just ‘memories and mementoes’ due to hidden card charges.”

He also added: “Regardless of where people are travelling to this Christmas we are urging holidaymakers to ensure the only baggage they return with is the luggage they are carrying and not unnecessary card charges.”

The top three destinations of the festive adventurers are Spain, the US and France - making up 17%, 8% and 6% of the total respectively.

Taking a few extra minutes to scrutinize which credit cards should accompany Britons on their journeys will undoubtedly save them millions collectively – and perhaps send a little Christmas tiding (of sorts) to the credit card tycoons seeking to snatch extra cash however they can.