Don’t let your Debt Spiral Out of Control

Many have lost sources of income during the pandemic and fear being sucked into a deeper hole. If you have been financially impacted, you are not alone. Take a step back and look at things you can implement to ease the stress.

1: Understand what debt you are in

So much news is being thrown at you constantly and many people are bogged down by debt and never understand how much debt they are in or how much it will cost them in interest. First, you need to establish and make a list of what debts you have, how much debt you have, and how much the interest rate that is debt is costing you.

2: Tracking your spending

Take time to track your spending, record all costs like rent payments and all little costs that pop up. It is an eye-opening experience for many to see how many small purchases on a cup of coffee can add up to over €50 in a month! Do you really need to spend €17.99 each month on Netflix? Using free online resources …

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Morgan Stanley Borrowing on the Bond Market

The stock market and Trading has been the hot topic of the past decade. Many young individuals look towards buying and trading stocks as the next fast way to make money. But the market is much harder to understand than it seems on the surface.

Morgan Stanley, one of the largest American based investment banks, has recently invested just over 400 million Euros on the bond market to secure against a group of buy-to-let mortgages and owner-occupiers located in Ireland. And of these, some vulture funds were bought not from the banks themselves, but rather from third-party locations such as Lone Star and Cerberus.

Generally, a vulture fund is a type of hedge fund, which is privately owned and operated. They are invested in debt considered to be weak or at default, which is also known as distressed securities. These vulture funds are looking to manage and overturn these debts to draw in a profit. Yet despite the large number of home loans in Ireland that were price-reduced following the most recent crash, vulture funds are seeing a hard time …

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What is Open Banking?

Open Banking is generally known as the practice of sharing personal financial information electronically, under secure conditions that are both approved by corporations and by the consumer. In doing so, Application programming interfaces (APIs) allow Third-Party Providers (TTP) to access financial information efficiently which results in smoother, faster, and easier financial processes.

Examples of how Open Banking has already started to become implemented would be budget tracking apps on your device, or even through your bank that could be connected to checking or savings accounts. Other instances where Open Banking has been used when you don’t even realize would be purchases of a home or monthly payments. Technology is becoming increasingly prominent in daily financial transactions, and understanding how this affects your life is essential.

What can Open Banking do for you though? Open Banking is a huge aspect for not only banks but also TPP’s and regulators. It offers more personability and customization to its consumers in managing and borrowing money as well as making payments.

App developers have recruited the use of APIs to create more streamlined and …

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Paying Off Mortgage During the Pandemic

Many people have found themselves struggling financially as the COVID pandemic drags on for longer than expected. In this, having to pay your mortgage may be one of the largest stressors for most. With that, there are some actions you can take to help deal with this.  

Always ensure effective communication with your lender. Speak with them if you are struggling to manage your finances and come up with a plan or budget system to repay your mortgage. If you are unable to repay, do not cancel or stop your direct debit without speaking and communicating with your lender first. On top of that, if you are unable to repay your mortgage in full every period, if you can repay it in a smaller amount than usual, then you should do that.

But even with everyone’s financial struggles during this period, the lender is not exempt from helping their clients. The lender may find that many of their clients are having issues with paying the mortgage in full and should be accommodating. But with that, the lender must also keep …

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Crack Down on Money Laundering

Everyone has heard of the term “Money Laundering”, but most fail to understand what exactly it is and how it affects not only our daily lives but also a county’s economy. Money Laundering is an illegal process that individuals can take advantage of to hide the origins of where money was obtained illegally. This is most often done by passing the money through a complex number of bank transfers to eventually erase and hide where the money originated. In the end, the money launderer receives the “clean” money.

Ireland has had a history of struggling with cracking down on money laundering, and in light of having to pay nearly 2 million Euro to the European Commission in July 2020 for failing to implement regulations, a new law has been passed in an attempt to begin intensifying legislation around anti-money laundering. The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2020, was signed on May 5th, 2020.

This Bill aims to: 1: Prevent the creation of anonymous safe-deposit boxes by credit and financial institutions 2: Continuously improve on the customer …

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The Growing Trend of Taking Longer Mortgages

According to a newly done study by the Nationwide Building Society; in the past year, nearly 70% of first-time buyers took out a mortgage beyond the traditional term of 25 years. This starkly compares to how less than a decade ago, that rate was less than 50%. There was a 45% rise in first-time buyers taking out an initial term of more than 25 years.

The longer the mortgage period, the higher the overall costs will be, even with a lower interest rate. The total significant costs for the mortgage can lead to the consumer paying for more than expected. It is calculated that taking a mortgage plan from 25 years to 35 years can have an increase in the total payment of the mortgage by nearly 40%.

While the market house prices continue to rise, the earnings of these first-time buyers have changed little. This creates a significant barrier for first-time buyers to make a deposit. A study shows that having a 20% home deposit nowadays is equal to 104% of the pre-tax income of an average full-time worker. …

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Quarantine Leading to a Rise in Property Prices

As the COVID quarantine still impacts our daily lives by forcing people to work from home and limit public interaction, the predicted property prices in Ireland are said to skyrocket as much as 6% this upcoming year. In the newly released annual review today by The Society of Chartered Surveyors Ireland (SCSI), out of their three agents, two of them predicted an increase in property rates in 2021.

While that 6% is said to be an average across Ireland, different areas are predicted to have slightly varying inflated rates. For example, Dublin, as the area with the highest current prices, is predicted to see an average increase of 3% in property prices. But for other areas such as Leinster and Munster, are predicted to have price increases of 4% and 5 % respectively. Some areas are predicted to see price increase reflecting this past year within the range of 1-3%, yet other areas are predicted to experience price increases that could even reach 8%.

According to SCSI’s vice president; TJ Cronin, many of these seen increases in prices are said …

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Saving During the Pandemic

Now is a great time to be investing in smart money saving techniques. The recent pandemic in 2020 has not treated many of us kindly, and money may be an issue even as we move into 2021. We’ve composed a shortlist of just a couple of ways you could help yourself financially to not only get back on your feet but also begin thinking of how to use your money wisely!

1: Begin Saving

Everyone should already always have an emergency fund at the ready, but why not go beyond that set a certain amount of your paycheck to be put into savings? According to Retail Analyst Mr. Kantar Worldpanel, nearly a quarter of Irish families regularly shop at either Aldi or Lidl. In that, nearly 75% of families rarely shop at discounter shops. These family-friendly stores could not only give you better, more local products but also be less of a burden on your wallet. Mr. Worldpanel also reports that of the families that shop at Aldi or Lidl, their weekly grocery bill is nearly 20% lower than those …

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Tips to Switching Your Mortgage

Changing your mortgage plan may very well be the best or worst decision you can ever make. If done well, it could relieve you of a lot of financial stress and help save you a large amount of money. This seems like such a big task, so we have broken it down and listed a few tips on how to get started!

First, understand your current situation. What are your scheduled payment amounts and how does that affect your budget? What type of mortgage do you have right now? Do you have an interest-only mortgage, a pension mortgage, an annuity mortgage, or a different type of mortgage? Most importantly would be the current interest rate you are paying. And all these factors can make a difference when changing mortgages and if that transition is for you. For example, with a standard variable rate (the rate you will be charged at the end of your fixed interest rate), switching can save a lot of money.

Second, make sure to do your own research and speak to multiple banks and mortgage brokers. …

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