Over the last few months we have seen the credit crunch, the Northern Rock debacle and a whole host of opinions and recommendations about the economy and the banking sector. 

Under the surface there have been some major changes in the credit card industry, but not all changes will be welcomed by the consumer. Are you sure that you have the best credit card deal for you?

Some of the major changes and announcements in the Credit Card industry include :-

· Increased charges.

· Minimum activity levels.

· Increased interest rates.

· A change in credit card limits.

· A change in credit card company policies, with more people actually being rejected now.

On top of the above changes we have also heard that UK credit card companies are set to push through a potential massive number of late payment fines, even though the majority of delays have been caused by the ongoing postal strike. 

Against this background of change and slight of hand, it can often be difficult to see what the best offers are, what the real cost of your card is.  Contrary to years gone by, it is become more and more apparent that when looking for a new credit card you need to consider so many more elements (as mentioned above). 

While everything is “in the small print” unless you actually ask about terms, penalty polices, etc they will not be spelled out to you.  As money continues to get tighter, it is vital that you get the best credit card deal for you, especially if you will not be paying off your balance at the end of each month.

Under pressure from the opposition, the Labour government have pushed through some last minute changes to the inheritance tax laws, which were announced in yesterdays budget speech.  New laws mean that married couples and civil partnerships can now claim a combined inheritance tax allowance of some £600,000, and this figure is set to rise to £700,000 by 2010.  So what does this really mean?

While the change has grabbed the headlines, there are many who are sceptical about what it actually means in practice.  Currently all assets lef to a spouse in a will are free of inheritance tax, so there would be no savings here, however, when the second partner dies (assuming the first used none of their inheritance tax allowance) they will be able to shelter the first £600,000 of their assets from the tax man.

When you consider that the average rice of a house in the UK is currently around the £200,000 mark, there are very few people who would actually use the combined £600,000 allowance.  However, it will offer comfort to those whose partner has passed away, as they will be able to claim the combined allowance on a backdated basis.  When you consider that Gordon Brown had 10 years as Chancellor to change the inheritance tax laws, many are scathing of his reasons for doing it now, i.e. the pressure exerted by the Tory party.

What was clear in this years budget was the fact that the UK economy is slowing and the business environment will become tighter over the next few years.  Gordon Brown has until at the latest 2010 to turn around the economy and announce an election, which he hopes will probably coincide with an up turn in the economy.  After 10 years of smash and grab, there are many privately thinking it is may be pay back time for the ex-Chancellor.

Having waited 10 years to be shoe horned into the role of Prime Minister, he may well experience a very difficult tenure - one which may well turn out to be his last.

Despite throwing billions of pounds and countless hours at the Tax Credit System, a report released today has criticised a system which has pushed in excess of 300,000 of the UK’s poorest families into further debt problems. There have been numerous reports of families being “hounded” for overpayments which the authorities have requested be paid back.  It seems that those families prepared to play by the book are being penalised, with those proving awkward or evasive often seeing their overpayments written of or moth balled.  So what next?

There is no doubt that the system, when working correctly, has brought much comfort and assistance to hundreds of thousands of families but there have been too many errors and too many “system” problems.  The Tax Credit system is a monster which is now out of control, and proving very difficult to reign in.  It seems as though the government have passed the point of no return, and are committed to throwing as much money as possible at the project, until it is running smoothly.

There have been many critical reports from families involved in the system, with the more common complaints being :-

· a lack of accessibility to advisers.  Phone lines are constantly engaged and emails are not being answered.

· confusing mailshots.  Many people have been sent different figures, under different cover on the same day.  How on earth are they supposed to know which is right?

· massive delays updating records.  This is a common complaint which has seen many families keep the authorities up to date with their lifestyle changes, but receive overpayment demands years later after finding that payments had not been recalculated.

· differing advice on whether overpayments need to be repaid.  Some say that overpayments of up to £10,000 are being written off, while some families are receiving demands for figures less than this.

All in all the system has shown some slight improvement of late, but there are just too many errors which are causing those who are already struggling financially, yet more heartache.  When the problems will be resolved is anyone’s guess!

While there have been many doom and gloom merchants on the TV and in the media, forecasting massive falls in stock markets, and a slowing of the worldwide economy, we have yet to see any confirmation, but is it on the way? Or has the financial world rode out the dangers of the credit crunch?

On the surface it seems as though worldwide markets are now over the worst, but is this really the case, or is there a storm brewing for the future? Historically we will not see the worst effects of the recent episode until the announcement of company results, with all eyes on the financial sector.  There is no doubt that holes have been blown open in balance sheets, and there is pressure on profitability, but is it really under control?

The price of gold has been rising steadily over the last few months, and is close to an all time high.  Seen by many as a safe haven in times of trouble, it has often moved in the opposite direction to worldwide stock markets.  Will the gold price fall back, or have markets remained a little too resilient after the recent episode? As we mentioned above, the full impact of recent events will not become apparent until company’s release their half year and full year profits, and more importantly forecasts for the immediate future. 

A prominent economic group have recently forecast that up to 6,500 jobs are at risk in the City of London’s financial district - a hangover from the credit crunch.  In the UK it seems as though the economy is set for a period of great turbulence, which was part of the reason why Gordon Brown even contemplated calling a snap election.  While the skies may be clearing, we are not out of the woods yet!

While there are up top 540,000 ladies over the age of 60 who do not receive any form of UK state pension, many are not aware that for a relatively small one off payment they will actually be able to fill the gaps in their national insurance contribution record.  This will then make them eligible to receive a minimum pension of 25% of the current state pension - amounting to some £1,000 a year.  So how can this be?

Unless a person in the UK has contributed 10 years of national insurance in total, they are not eligible for the state pension.  As there were many ladies in the past who initially worked, then married and left employment to bring up a family, some were not in a position to contribute for the full 10 years.  Little publicised government legislation allows those in retirement to cover the shortfall, and bring their record up to the 10 year minimum requirement  For those 65 years of age, or over, they will be able to claim back pension of approximately £1,000 a year, back to the year they turned 60.

Quite why this interesting information has not been more widely covered by the financial press or the government advisers remains to be seen, but it could prove priceless for many.  It will be interesting to see if the vast array of Independent Financial Advisers out there actually look to take this news on board.  As more and more pensioners struggle in later life, the £1,000 a year income could prove vital.

After weeks of speculation about the future of Northern Rock, and the supposed lose of the Northern Rock name, it now seems as though there may be a rescue package in the wings.  It has been reported that US financial powerhouse Citigroup Inc have put together a package worth up to £10 billion, which would allow the bank to fully fund itself, but would that be enough?

For many in the market place, the Northern Rock name is now damaged goods and it would take a great public relations campaign to put it back on the map.  While this would not be a takeover as such, Citigroup would effectively replace the current Bank of England rescue package, but on better terms.  This would give the bank a new line of finance and also allow Citigroup to make a profit on the loan, but can the bank attract new business?

Whatever happens it seems that time is running out for the north of England institution with the Bank of England loan having ballooned to some £10 billion.  There has been little mention of business figures over the last week or so, meaning that any forecasts at this moment are very sketchy.  However, the fact that the loan has increased would indicate that there is some business activity at the bank.

With little likelihood of an all out takeover, the Citigroup offer (if it is confirmed) may well be the only real option available.

While the clamour for a reduction in UK base rates has been growing over the last few days, it seems that the Bank of England are taking a firmer, longer term approach than their US and to a lesser extent European colleagues.  Despite massive pressure to reduce rates, they have held firm in the belief that a reduction now may be seen as fool hardy when the mist clears over the Northern Rock debacle.  So what are the prospects for the UK economy, and is a rate reduction inevitable?

At the moment the economic indicators are suggesting at best a softening of the UK economy, with spending under pressure and mixed signals from the housing market.  This all leads to the general opinion that the UK economy is slowing, a view which would seem sensible bearing in mind the recent credit crunch and the shock many consumers received  from the Northern Rock crisis.  But is a recession around the corner, or should a strengthening of the rate of inflation be our main worry?

Unless we see a drastic worsening of the credit crunch there seems little likelihood of the UK economy actually falling into a recession, although a slow down would seem a distinct possibility.  While the US and European banking authorities have signalled their intentions to reduce rates (with the US having already done so), many are seeing this as a panic reaction.  The Bank of England have always dealt with matters in a methodical fashion, and even in the worst days of the credit crunch there were no panic reactions. 

While some commend this type of strategy, there are many who are calling for the Bank to be more pro-active and reactionary - but this is the Bank of England we are talking about, a banking giant which has seen it all over the years.  The “Old Lady of Threadneedle Street” lives on……

As we approach what for many people can be a very stressful time of year, many people are now starting to panic about Christmas and where they will get the money from to pay for it! While this is an annual event for many, it is something which is becoming more and more difficult to finance, leading to people getting into more and more debt.  But what will happen this year?

For those families who maybe have a limited income coming into their home, or may have had financial problems in the recent past, the main stream finance industry may be beyond their reach.  The recent credit crunch has also focused the minds of the banks, many of whom have been turning away business over the last few weeks.  While some may see them as a life saver at this time of the year, we are set to see an increase in activity among the so called “door step” lenders.  Many will be offering cash on the day, but their interest rates even after the recent tightening of the laws will still be enormous.  So is there a real solution?

Unfortunately for those in a situation where income is minimal and they do not own their own home, the “door step” lenders are their last resort.  Many end up paying back their original loan amount many times over, but because of the pay back period they may feel it is the lesser of two evils - forgetting Christmas or getting into debt!

While there are some of these lenders who offer a very good and professional service, the history of the industry is littered with firms who have taken advantage of their customers situation, signing them up to loans they will take years to pay back - with massive interest payments.  If at all possible it is best to steer clear of these lenders, but for many at this time of the year that may be easier said than done!

A shocking new report on the taxation burden in the UK has uncovered the enormous amount of YOUR money which goes to the government via an ever changing array of up front taxes and stealth taxes.  The report was released by the Tax Payers Alliance who, using government released data, calculate the average household tax bill over a lifetime is a massive £630,000, with even the poorest households paying some £230,000!

While the figures are enormous and you may be wondering where you actually pay all of this tax, you will probably have guessed a large chunk is collected via so called “stealth” taxes.  Since Labour came to power in 1997 the tax burden on the UK population has doubled, and “stealth” taxes have been the secret mole burrowing into your income and savings.  So how do the authorities get away with it?

While there have been a  number of critical reports “buried” by the government, Gordon Brown has been warned by his overseas counter parts that he needs to operate a more transparent taxation system in the UK.  One which is up front and clear about exactly what you are paying, why you are paying, and where it all goes.  So will it get any better now Gordon Brown is PM?

In the short term, as we approach what many believe to be the next general election, we can no doubt expect a raft of delayed tax increases, hand outs and “better prospects”, but these are just sweeteners to secure your vote.  Whether the taxation system in the UK would be any better under an opposition government remains to be seen, but surely it could be no worse?

As the week progresses we are seeing more and more new policies and ideas emanating from the Conservative Party conference in Blackpool.  One issues which the Tories have highlighted is tax, and they have offered a number of concessions to the UK public should they be voted into power at the next general election.  However, even now there is some confusion as to whether the figures actually add up, so what exactly are these proposals ?

A number of the main proposals include :-

· The abolishment of inheritance tax. 
· An increase to tax beaks for married couples.
· The abolishment of stamp duty for first time home buyers.

These are just a number of new proposals coming from the Conservatives as they prepare for what many expect to be a snap election later this year, 

Unsurprisingly, the Labour Party have hit back at the calculations from the Conservative Treasury department, claiming that they just do not add up and they will leave a “black hole” in public spending.  They claim that this will lead to a reduction in spending on public services - something which the Tories refute strongly.

The truth is that all calculations, from all parties, at this stage are based on theory and not fact, although the Conservatives have used the most up to date figures available.  While they say a week is a long time in politics, it is even longer to the next general election!

Things can and regularly do change and as we all know, what the parties say now is not always what they actually deliver.  Over the next few weeks we will all be the subject of a “softening up” process ahead of a potential election - something which we are becoming more and more used to.  It is also something which gives politicians a bad name, highlighting the reason why so many are distrusted by the public!