According to the Fair Investment Company, many Britons may discover that the expensive gifts that they received over the Christmas period may not be covered by their insurance policy.
As a consequence, homeowners could face financial difficulties should they be a victim of burglary if they do not take the time to amend their cover, which in turn may put pressure on various demands on their spending that they are facing at this time of year, such as loans and credit and store cards.
Indeed, getting adequate insurance could well be advisable as the firm pointed to research by Halifax revealing that the average consumer spent some 384 pounds on gifts over the festive season. In addition, the firm noted research by Cornhill Direct indicating that an extra 2,200 pounds 48 pence worth of goods are in consumers' homes after the Christmas period.
Meanwhile, out of the three million privately-rented homes across Britain, just under three-quarters (72 per cent) of people lack home contents cover. With such consumers having more than 50 billion pounds of items in their properties, should they find that they have been a victim of burglary, replacing the likes of laptops and plasma screen televisions may impact upon their ability to meet various demands on their finances such as personal loans and credit cards.
James Caldwell, director for the Fair Investment Company, said: "Christmas is meant to be a time of enjoyment and these days, the gifts we give are more expensive than ever before. However the good times can quickly go bad if there is a breakage or, worse still, a burglary. The amount of money lost can really mount up, especially if you don't have a policy that covers all your new purchases."
"Winter time brings with it all sorts of concerns whether you are a homeowner or renter. With bad weather forecast, if you live in a flood risk area, home contents insurance is simply a must. Likewise, the risk of fires over the Christmas period is 50 per cent higher than at any other time of the year," Mr Caldwell added. The director also claimed that it is important that people shop around for cover, to ensure they get the most suitable policy for their needs.
For those who do not have an adequate insurance policy, a homeowner loan could be an advisable way in which to finance paying for repairs and replacing goods. Following spending in such areas, consumers may find it appropriate to use money left over from their loan to purchase comprehensive insurance cover.
Taking out a homeowner loan in which to improve the security capabilities of a home after the festive season could be particularly advisable. Research conducted by Zurich revealed that some 78 per cent of former burglars believe that properties are at their most vulnerable during the Christmas and new year period because people usually spend a lot of time away from their home, as they socialise with friends and family. Meanwhile, laptops, digital cameras and games consoles were put forward as the most likely items to be stolen.
In a study released by the Post Office, it was revealed that a significant proportion of consumers feel that they are unable to put cash into savings accounts due to surges in the cost of living in recent months. At present it was claimed that 4.8 million adults are unable to save because of the impact of rising energy and council tax bills. Meanwhile, just under a fifth of all adults currently not putting any money away for the future claim that this is due to the fact that they have no disposable income left at the end of the month.
Findings from the firm showed that 43 per cent of respondents have either reduced their savings or stopped making such investments altogether in the run-up to the Christmas period. The study also revealed that half of those who have placed money into a savings account at the start of a month have been forced to withdraw it within four weeks.
Due to a lack of savings or continually dipping into an account, however, it may be possible that consumers find themselves unable to cope with various financial demands in later life. Such areas could well include making repayments on personal loans and meeting the cost of property repairs.
Commenting on the figures, Richard Norman, director of savings for the Post Office, said: "Our research shows that millions of people are missing out on earning interest on their savings and have to live without the security of having a 'savings safety net' if they ever found themselves in financial trouble. In times of economic uncertainty, it's more important than ever to try and put money away. Our advice is try and keep saving regularly - even if it's just a small amount - and consider saving less frequently such as every other month."
"Anyone who feels jittery about saving and wants peace of mind should look for a provider that offers them convenient and instant access to their money," Mr Norman added.
Research from the financial services firm also revealed that some consumers have concerns about the economic market as a whole. Just over one in ten (11 per cent) of those questioned are worried about taking out monetary products which are linked to the stock market, with ten per cent cautious of savings vehicles.
For those consumers worried about their ability to put cash into a savings account, making the decision to apply for a loan could be of assistance. In using a loan for the purposes of debt consolidation, borrowers could find that they can pay off numerous financial demands at once leaving them with more disposable income at the end of each month. This money could then be invested into a savings scheme. Furthermore, debt consolidation may help those struggling with costly household bills. Taking out a cheap loan to help with saving for the future could be recommended for a significant number of Britons after a recent study by Investec Private Bank revealed that in July 2007 the average consumer had put 284 pounds away, however by January this had dropped to 233 pounds.
Both Tom Dawson & Mark Dawson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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