Analysts are speculating that the Bank of England’s monetary policy committee to will chop interest rates this week, amid signs of an economic downturn, bringing the key base rate of interest to 5%.

A study from the Halifax yesterday showed that house prices slumped 2.5 per cent during February. There are also indications that retail spending is moderating.

The Director of the Confederation of British Industry said: “Despite the MPC’s attempts to loosen monetary policy through two recent interest rate cuts, the credit crunch is pushing interbank and mortgage lending rates up, which is constraining economic activity and demand”.

“The Bank should make a quarter point cut now, rather than later, to help hard-pressed businesses and consumers.”

The Bank has cut interest twice since December.

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Large parts of England have been devastated by flooding and the insurance industry puts the cost of damage to business and homes at over a billion pounds.

What should I do if my home or business is flooded?
The advice from the insurance industry is as follows:
Contact your contents and building insurer as soon as possible. It is advisable to keep insurance documents in a waterproof plastic bag.

Your insurer will expect you to take reasonable steps to protect your property, such as using sandbags to hold back water, and moving any easily movable objects to safe haven (upstairs if you have an upstairs.) You should turn off your electricity and leave all mains equipment unplugged for safety.

What type of Insurance is ideal for flooding cover?
Ideally you should have already ensured that your contents insurance covers the full replacement cost of any items ruined, rather than their current market value.

TIPS ON COPING WITH FLOODING

1. Contact your insurer as soon as possible
2. Move personal property upstairs
3. Turn off electricity and other utilities
4. The cost of alternative business and residential accommodation may be covered by your insurer

Source: The Association of British Insurers

For insurance purposes, it is very important that you keep all damaged items for audit purposes. Most household insurance policies will cover the cost of alternative accommodation, if your property is uninhabitable.Similarly business interruption cover is something which a lot of businesses have, which will pay the cost of alternative accommodation.

Is much of the UK at risk of flooding?

The Department for Environment, Food & Rural Affairs (DEFRA) estimates that 10% of the land area of the UK, covering up to 2 million homes and 185,000 businesses, is in danger of flooding.

Credit cards are a simple method of obtaining credit and when used correctly they can provide a range of useful benefits for the card-holder.

Choosing the right credit card

To maximise the potential of your credit card it is important to acquire a card which is well suited to the purpose for which you intend to use it. A credit card is a useful tool if you make it work for you, but remember you can always save money in interest charges by finding a better deal, or by using a different credit card for each different purpose

Using multiple cards for different purposes ensures that you get the most out of your credit card for as little cost as possible.

So which credit card is optimal for you? Our guide to spending and repayment habits may help you to decide.

Regular spender; balance always cleared in full each month

Debt cleared in full each month. interest rate charged is irrelevant unless there card doesn’t provide an interest-free period, in which case you’ll pay interest regardless of how quickly you clear your balance. Many cards offer an interest-free period of up to 59 days from the date of the transaction, which gives the card-holder time before payment is due.

Decide whether you’d like to earn a reward or cash back, and choose a card with no annual fee, ensuring that the scheme on offer gives you a worthwhile return on investment. One of the easiest ways to guarantee that your will clear your outstanding balance is to set up a direct-debit for the full amount each month.

Regular spender; balance usually cleared in full each month

You are good at clearing your balance from month-to-month however occasionally you choose to carry a balance forward until the next month. As a regular spender, it makes sense to choose a card that offers a low standard rate, (that way interest charges for those months when it is applied aren’t too steep). If possible possible select a card with a reward or cash back scheme, and no annual fee.

Regular spender; balance rarely or never cleared in full each month

As a regular spender you rarely or never repay the debt in full every month. The type of card for you may be a card with an introductory purchase rate or an ultra low standard rate. Choosing a credit card with a low standard rate will help to save you money if you don’t shop around for a new card deal when the introductory period expires.

If you’ve built up a debt on your existing card it is worth considering a switch to a credit card also offering a low balance transfer rate. Plenty of cards offer both a low introductory rate combined with a low balance transfer rate (often 0% for both) with various durations.

If you opt for an introductory rate then you’ll need to change to a new low rate credit card once that deal ends, otherwise you’ll pay interest at the standard rate.

Existing debt which you’re determined to clear

If you wish to clear a debt, you need to assess just how long it’ll take you as well as how disciplined you’ll be with your repayments. Paying off more than the minimum payment each month can reduce years from repayment (and you’ll be clearing capital as well as interest)

It’s important to find the right card to save you the most money. There are many cards offering 0% on balance transfers over a term of around 5 to 9 months. When you switch, all the repayments made during this period will reduce the capital outstanding, therefore the outstanding balance will be much lower at the end of the introductory period. Once one introductory offer expires you’ll simply transfer your balance to a new card and as a result will continue to avoid harsh interest charges.

Poor Credit History or difficult circumstances

If you have no previous credit history, have CCJs, arrears or defaults, have changed addresses frequently or are self-employed, it is often difficult to get credit. Some card issuers can help in these circumstances, however the rate which you are likely to be offered is likely to be based on the card issuers assessment of your circumstances (and therefore may be different than the typical rate quoted). The benefit is when it’s used and maintained properly,this type of card can help to strengthen or rebuild your credit rating.

Summary or “Honesty” box

Since March 2004 all credit card issuers are obliged to summarise their key product features such as interest charges and fees in an easy-to-understand format, known as a “honesty” or summary box.
This appears in all credit card marketing information, making it easier for consumers to compare deals and assess the implications of opening an account.

Many businesses buy their electricity on fixed term contracts, which is not a crime.However, if you have a fixed term contract with your current energy supplier you need to make sure that you shop around at renewal time when they put up your price.

Never before have we experienced such huge increases in gas and oil prices. This is having a major impact on the electricity price your business is going to be charged.

Many electricity renewal prices are Skyrocketing and switching your business electricity supply today could save you money!