Cubalaya Blog UK

Online Payment Methods

With Amazon starting its own full-blown online payment system, PayPal and its owner eBay have found a worthy competitor.  Although some people only look to Amazon as a place to get that out-of-print long-lost paperback, it has become a shopping giant for new and used items, the latter traditionally considered eBay's forte.  An online payment system makes life much easier for private merchants, allowing them to receive their payment without going through the fuss of working with the credit card companies.

But not just the merchants benefit from this kind of system- giving personal information online, especially a credit card number or an electronic check, has always been a bit risky.  Online security has improved substantially over the years, but the fear of electronic fraud has been one of the major factors in PayPal's success.  They act as the middleman between the customer and the merchant, and keep the fomer's financial data to themselves, offering a stronger sense of security, not to mention making purchases a quicker process.  In fact, eBay determined this idea so useful to its business model that it purchased PayPal in 2002. 

And then came Google Checkout.  Waiving all transaction fees through the end of 2007, Google is looking to expand its circle of merchants during the holiday season.  While still lacking many of PayPal's features, the Google has a wide range of online stores which accept Google Checkout, allows payments through a mobile phone (soon to be extended further with the GPhone?), and, unlike PayPal, has great customer service.  And looking at the recent upgrades to the Checkout service- it seems Google takes customer feedback to heart.

Cubalaya Launches Finance Category

The internet is a very powerful tool for consumers seeking financial products and services. For many years large financial institutions enjoyed the fact that many consumers could not get the right kind of information to make smart decisions with their money. The internet changed that forever, you can now easily research financial issues, compare financial products and services and ensure you spend and invest your money wisely. To celebrate the launch of the Cubalaya Finance Category here are my top 10 tips to save money today.

1. Mortgages. It is estimated that approximately 900 000 mortgages in the UK are about to finish their fixed rate period. With interest rates increasing steadily over the last year and the rate set to go over 6%, these estimated 900 000 mortgage customers are set for some fairly hefty monthly repayments. Many will immediately seek to get another fixed rate mortgage for a number of years but this isn’t always the best option. As always it will depend on what happens to the interest rate but if next year it started to come down these customers may end up paying a lot more than they needed to. However they do have the advantage of knowing exactly what they need to pay each month and are protected if rates continued to increase sharply. One type of mortgage worth consideration is the discounted mortgage. This will help you in the short term while rates are high and if they drop in a year or 2 you will benefit when you move into the variable rate period which forms part of these agreements.
2. Savings Accounts. The good news about increasing interest rates is that you start to see a healthier rate of return on any cash you have in your savings account. Now is a good time to check your current savings account and ensure you are on a competitive rate. It is possible to get exceptionally higher rates by ensuring you deposit a certain amount, not withdrawing money unless you give a long period of notice or by paying a guaranteed monthly amount into your savings account. What ever happens don’t leave free cash sitting in a basic current account where interest payments are usually very low.
3. ISA . If you haven’t invested in a ISA then get advice as this is one of the most effective ways to save money, earn interest and avoid tax. However there are different types of ISA’s and there are also fees involved to set them up.
4. Premium Bonds. This is a way to save money into an account which is owned by the government but with chances to win various cash prizes with the premium bonds you buy. You are allocated numbers that are entered into a monthly draw with prizes ranging from £50 to £1 million. The good news about this scheme is that it’s a little like entering the lottery except you can always take your initial investment back when ever you like.
5. Credit Cards. With many people now booking and paying for their summer holidays now might be a good time to consider seeking out a credit card deal offering 0% interest on any balance transfers. These deals are usually very good for consumers transferring large amounts but if you only have a small amount to transfer then balance this with the overall interest rate (shown as an APR%) you will get charged on any new credit you take. You may find your old card will save you more in the longer term. Also look carefully at any additional benefits a card may offer you such as protection on good purchased.
6. Home Insurance. Many consumers are guilty of leaving their home insurance with one provider year after year. There are usually some very good deals on offer in the market if you switch such as cash back or guarantees of a bonus payment if a provider can’t beat your existing premium. As always look carefully at the type of cover provided. Cheaper isn’t always better if your cover is significantly reduced or the support you receive if ever needed isn’t of the required standard.
7. Car Insurance. Much like all other forms of insurance consumers are often guilty of remaining with the same Insurance company year after year due to the hassle of changing provider. With the ease of finding a better deal online it is now much easier and financially usually very worthwhile to check and change every year if necessary.
8. Life Cover. Financial advisors believe this is one of the most neglected areas of peoples financial planning. Nobody likes to think that anything could happen to them but not planning for the worst could make matters even more tragic for those left behind. If you have a partner, large mortgage or family this is something worth investigating.
9. Loans. This is a great way to buy that something special like a new car or family holiday but also to consolidate all your debts to make it easier to control and clear them. When researching loans compare the APR (Annual Payment Rate) and ensure that you don’t include repayment protection to get like for like. A key area for consideration in taking any loan is whether it is secured or unsecured. Unsecured are usually available for lower amounts at a higher rate of interest and a secured loan is usually secured against your home. Therefore it is critical that you can meet the repayments or you risk losing your home.
10. Finally the best tip I can give you is to always do your research. Just by looking at several competitive offers you can save hundreds if not thousands of pounds. When agreeing to part with your money or sign up to a service always take time to understand the agreement. It’s cliché but reading the small print is the most important thing you can do when signing anything related to personal finance.

Enjoy the new Cubalaya Finance category with further useful content coming soon.

Cubalaya Shopper