Are those 20p cans of baked beans really just a "loss leader" for the supermarkets...

...or are they the only reasonable diet if you're trying to live on Jobseekers' Allowance?

It's not just an idle thought. Unemployment figures have risen again; figures released by the Office of National Statistics show that in July alone, 24,900 new Jobseeker’s Allowance claims were made, and many of those claimants might be thinking the same.

To those who have lost a full time income, switching to Jobseeker's Allowance can be a bit of a shock as it really doesn't provide you with very much to live off.  Whilst the actual amount of benefit each applicant receives will vary - depending on income, age, living arrangements and several other measures - a glance at the benefits qualification table shows that most single adult applicants will receive £60.50 a week.
Even if you might assume a certain amount of additional benefit help towards your council tax and your rent or mortgage, those payments might not arrive straight away, leaving you to live off Jobseekers Allowance alone.  Bear in mind that in a 2007 survey of household spending, the average weekly food and drink grocery purchases per household amounted to £48.

Can living on £60.50 a week really add up?

We don't want to make light of a serious topic, but we're wondering if this wouldn't involve a radical change of lifestyle...

Here are six ingenious suggestions for how you could meet that challenge!

1. Live off your garden...

… and flatten that food spend out of the equation!  Self-sufficiency was the premise for an entire BBC comedy series (The Good Life) and we’re sure you could pick up some still-relevant tips from Tom & Barbara. After getting established with your first few cows and laying hens, you’ll be wondering why you ever needed Asda. Even if your garden’s tiny, there’s still plenty you can pick for free in the fields and forests: mushrooms, blueberries… nettles…

2. Become a loyalty-card stalker…

It’s not as bad as it sounds - but it is a bit audacious.  Lurk by the till and offer your Nectar card, Clubcard (or similar) to other shoppers who don’t produce one.  You’ll amass dozens of vouchers in no time and you’ll soon be stocking up your cupboard at zero cost!

3. Fall in love with canned food...

It’s not only those 20p beans that could become your shopping bag’s best friend.  Don’t forget cheap school dinner favourites like pilchards and Alphabetti Spaghetti.  What’s more, when you come across a cheap glut of fruit or vegetables at market, you can even can your own (in practice, that means boiling inside a sealed jar and hoping nothing explodes...)

4. Be a prolific party-marketer...

Gather commission as you host sales parties in your home.  Tupperware in the morning, Virgin Vie cosmetics in the afternoon and... Ann Summers by evening? Don't forget to leave some time for job interviews too...

5. Rent out everything you've got!

Letting spare rooms in your house is the obvious way to lighten your household running costs, but why stop there?  You can rent out your car (Rentnotbuy lets you list it for free), your driveway (as a parking space), your golf clubs… Even your ironing board could be rented out as a landing strip to the local aerodrome.  OK maybe that’s a step too far…

6. Or you could try living without money entirely

…like Daniel Suelo, the American modern-day cave-dweller.  His income is zero, his diet includes grasshoppers, mustard leaves and wild onions, and he’s absolutely convinced of the philosophical benefits of a cash-free lifestyle: “When I lived with money, I was always lacking”.

All right, so on a more serious note...

We realise that gardening and cave-dwelling lifestyle changes aside, it's going to be pretty difficult to subsist on Jobseeker's Allowance for long.  When a main income disappears, most single people couldn't make those sums add up for more than a couple of months.

Have you ever done the sums on how you'd cope with a loss of ear?  If you're looking at the above and realising that budget just wouldn't work for you, have a think about protecting your income.

Income protection policies come in two flavours - protecting up to 75% of your regular income, and protecting just your mortgage payment to make sure you keep the roof over your head.  The costs for a policy are variable, but can be as little as £2 per £100 of cover that you require.

Get a FREE income protection insurance quote >>

Whatever happens in the economy, we're sure of one thing: having something more than £60 to live off would definitely be our choice...

...unless those beans are really, really appealing!

Could you live off £60.50 per week? Let us know in the poll below.

The price of used cars seems to be rising as old vehicles are scrapped to make way for new. At the same time, stocks of nearly new cars are falling – a knock on effect of the drop in new car sales in recent years.

Pendragon, Britain's biggest car dealer, recently reported it had seen a 20% increase in the average price of vehicles since January. The era of very cheap used motors seems to have passed, and it seems clear that prices will continue to climb and will remain high for a few years until the current short stocks of nearly-new cars return, following the recent return to growth in new sales.

As my wife recently passed her driving test, we now need two cars, so I'm currently in the market for a used car. I've still not decided exactly what to get, but what I do know is that things aren't always what they seem and a deal isn't always a deal.

Here's what I've found so far...

What's in vogue

It's no surprise that in this financial climate people are looking for ‘safe' options that cost very little to run, even if they're not all that exciting. Diesels are particularly popular as they're generally quite efficient and tend to be cheaper on road tax.

The result though is that you're unlikely to be able to bag a bargain. A typical 3-year-old VW Golf 2.0 TDI or Ford Focus 1.8 TDCi will be no cheaper than £6,000 to £7,000, which isn't bad but if you take a few added running costs on the chin you can potentially save quite a lot off the sale price.

What might be a bargain

Petrol models of the Golf and Focus are on average £2,000 cheaper than their diesel equivalent, and you'd have to drive a lot of miles to make that back in the cost of fuel - so always consider the mileage you expect to clock up.

Larger cars are often a good bargain too. For example, ex-fleet cars such as Mondeos and Vauxhall Vectras are generally better value than their smaller counterparts, as they're generally better equipped (sat-nav, leather seats, climate control, leather seats etc).

Better yet – and here's an option that tempts me personally – find a car that may be unpopular for aesthetic reasons. If you can get over often dodgy styling, you can find a real bargain. I'm thinking along the lines of:

	Rover 75 (fantastic engines supplied by BMW, don't forget). Good mileage models from only £1,500 when I last checked!
	Jaguar X-Type (has the chassis from a Mondeo and shares the running costs and very good reliability). Surely you can't ignore the prospect of a reliable Jaguar for £3,000?
	Vauxhall Signum (looks like a mutant giant Astra hatchback but really based on the Vectra). This car was designed to compete with the BMW 3 series, but never really caught on. As a result a 5-year old with a good diesel engine and with fewer than 60,000 miles on the clock could be as little as £5,000 which is a bargain for a family-sized car.

Always consider insurance though – when you are looking for a car make sure find out which insurance group it's in and then shop around for a good insurance quote.

Finance it yourself – and make further savings

Fortunately it's easier than it was a year or so ago to get unsecured finance at decent rates, as long as you have a good credit history. Arranging finance on your own either through your bank or by speaking to an adviser enables you to get a cash price as well, saving you perhaps an extra 5-10%.

Have you recently bought a new car? How did it work out? Or are you currently still looking for one? Let us know in the comments below.

As summer draws to a close and the autumn chill begins to fill the air now’s a good time to start preparing your winter finances.

When the temperature drops it’s all too easy to turn on the heating and crank up the thermostat.

We all want to be warm and it needn’t mean a freeze on our finances as heating bills begin to rise.

There are plenty of ways to save money on domestic gas and electricity bills.

Switching provider has never been easier – check out our energy saving calculator here – and making sure you’re on the right tariff can help pile on the pounds in your bank account before the units begin to add up.

And there are plenty of pounds that can be saved – from changing how often and the way you pay your bills to changing supplier to simply putting a jumper on.

A single parent household in Liverpool paying £500 per year by cheque once per quarter for electricity only with British Gas on its standard tariff could save up to £116.07 by switching to EDF Energy and its Online Tariff Version 5.

But you don’t even have to switch provider to save money.

In this instance switching from the British Gas standard tariff to its WebSaver4 plan would save the household £87.11 per year.

And there are even easier ways to save money. Simply changing your payment method to direct debit can lead to instant savings too.

The same household switching to monthly direct debit and staying with British Gas would save an extra £36.23 per year and if they switched provider and paid by monthly direct debit they would save an extra £33.63.

But it’s not just looking at tariffs and switching providers. There are even easier ways to keep warm and save money at the same time.

Since last October, all homes put on the market for sale or rent have had to have an energy performance certificate (EPC), which rate the energy efficiency of a property, giving a rank form A to G.

As a starting point you can get your own EPC from as little as £65 but before you do take a look around your home and make sure it is as energy efficient as possible.

• Are there any noticeable draughts that can be blocked? A long pair of curtains over windows or fitting draught strips at the bottom of doors help to keep out the cold.
• Heat rises and loft insulation can cut this down and while expensive fitting double glazing will also cut heat loss and help keep bills to a minimum.
• You should also, where possible, program your heating to heat your bedrooms overnight or before you go to bed and before you get up in the morning.

Jonathan Burridge, managing director of London-based broker Quantum Money, says:

“The current price war between utility suppliers means that there has never been a better time to shop around and make sure you are on the right plan.

“Most households can make an instant saving just by changing their payment method and ditching expensive standard plans for one of the better online plans.

“We saved one client over £200 recently in doing such things, and with winter – and Christmas – fast approaching it’s a saving we could all do with making.”

Do you have any tips to save the amount of energy you use? Let us know in the comments below.

To see if you can save any money by changing your energy provider, have a look at our energy saving calculator.

Debt is a fact of life. We live in a society where being in debt is actively encouraged. From student loans, interest-free overdrafts, credit cards and car finance to taking out a mortgage to buy your first home and equity release deals for the older generation. After you leave school no matter what stage of life you’re in you simply can’t avoid debt.

But how we manage our finances and our attitude towards debt will determine what, if any, problems we’ll face in the future.

Back in 2007 one in every four mortgages was sub-prime – meaning one out of every four applicants had some level of adverse credit or bad debt, whether a missed telephone or credit card bill to more extreme cases of a growing debt mountain made up of arrears and other missed payments.

With lending to these types of people almost obliterated due to the credit crunch the situation has gone from bearable to bad and it’s only going to get worse.

Earlier this month new figures showed that the number of individuals filing for bankruptcy rose more than 20% in England and Wales – despite new government measures put in place in April this year to reduce the figure.

And the only good news to come out of the same set of figures was that while the number of personal insolvencies may be on the up, the number of companies going bust was going down – meaning fewer job losses.

The best way to stay out of debt is to avoid it altogether but for many of us that simply isn’t practical.

But how you manage the debt you are in will determine whether you sink or swim.

Different routes to consider

For those with struggling with too much unsecured debt a management plan, where all your debts are managed in one place by a specialist management company, could be the answer.

Danny Lovey, managing director and specialist adviser of Basildon-based The Mortgage Practioner, explains:

“Say for example you have five debts in total, three credit cards, a couple of unsecured loans, and it is costing you £500 per month to service the debt, but you can only afford £150 and the lenders agree then this could be the way to get monthly payments down.”

Often though it can be a multi-faceted problem. Maybe you are behind with the mortgage, second charge debts, unsecured debts and the like and maybe it is the second charge company taking you to court for repossession.

“This can make it awkward and you will likely have to strike some deal with them or risk the court granting repossession,” warns Lovey “It is the second charge bandits that are the most difficult to fend off. Some of the adverse lenders that have since closed down may have sold your loan to another third party which has absolutely no interest in treating customers fairly.”

Last resort

As a last resort there are also bankruptcy and IVA options.

Bankruptcy has long been the traditional way of escaping big debts and although ending after one year it comes with a high price to pay as you are likely to lose all your assets – including your home – to pay something to creditors.

The IVA or individual voluntary arrangement is a deal between you and your creditors, overseen by an insolvency practitioner.

There is less stigma attached to an IVA than bankruptcy, and also less chance of losing your home.

But there are also Debt Relief Orders. This is a new concept that was introduced in April this year and allows consumers with debts of less than £15,000 to write them off without going down the bankruptcy route.

“You have to look at all the available options before you go down the bankruptcy or IVA route as in my mind you should try exhaust every other opportunity first,” says Lovey.

“You can repair a dodgy payment profile but you can’t make the fact that you’ve been bankrupt or had an IVA disappear from your credit file and this could throw up a whole host of problems later in life.”

All cases will be different which is why seeking the advice of a professional adviser or the citizens advice bureau at an early stage is vital.

Ways to drive down debt

If you think you are struggling with debt then you’ve already taken the first step in getting to grips with your finances. The next is to talk to somebody about it – either an independent financial adviser or you can contact your local citizens advice bureau.

But before you do there are a couple of simple steps that you can take which will start to focus your mind and tackle the problem before you.

• If you’re having problems paying your mortgage talk to your lender and explain the problem as soon as possible.
• If you’ve got credit cards, cut them up. And depending on the level of debt you are in, look to switch the debt to a cheaper rate of interest with another card provider. If you do this, don’t use the new credit card.
• Write a list of your income and your expenses. What can you cut back on? This can be anything from buying supermarket branded goods as opposed to branded goods. Taking a packed lunch to work instead of buying food on the go can save up to a £1000 per year while kicking the morning cappuccino into touch can save over £500 per year.
• How do you pay your bills? Switching to direct debit can save you hundreds of pounds per year. This is especially true with credit cards as missing a payment can cost you dear.
• What else can you do to maximise your income? Are you claiming all the benefits you are entitled to, such as child tax credits? You can access a full list of benefits on the Department for Work and Pensions website: http://www.dwp.gov.uk/directgov.shtml
• Think about getting a part time job to top up your income, such as bar work or home work you can revolve around normal office hours.

Danny Lovey stresses the importance of taking appropriate advice.

“For those who do not have a financial adviser of any kind, the citizens advice bureau should be your first point of call - they are good at analysing your problems and often refer on to someone who is a specialist in the field who will not charge you and arm and a leg for an initial chat.”

If you are specifically looking for help with your unsecured debt that you know you can’t currently afford, talk to a debt adviser >>

Thousands of school children will be heading off to primary or secondary school next week. Whether it’s the first day at primary or secondary school for your child or not, the chances are there’ll be trips to stock up on a major restock going on in the last few days before they head back.

That makes this time of year a potentially expensive time – so we’ve done some research to find money-saving deals that can help you save some cash. And even if you’re not going to school at all, you could get a good deal if you need to stock up on new stationery or other education-related essentials.

Stationery

Rather than buying all of those essential items, from pens to pencils and maths equipment separately, a number of retailers are offering cheaper bundled packs. If you’re going to need most of the things in the bundle you’ll usually save money – and if you have more than one child, you may be able to equip them all from one bundle. Alternatively, why not get together with a friend to bulk-buy for moneysaving deals?

On Amazon – currently offering free next-day delivery on back-to-school essentials – educational supplier Helix is offering its maths set, pencils, sharpeners, pencil cases and more for £11.99 – in boys’ and girls’ versions.

View Back To School Bundle For Boys here >>

View Back To School Bundle For Girls here >>

Meanwhile, Ryman offers both larger and smaller options. Its larger bundle includes a scientific calculator, highlighter pens, ringbinder, dividers and plastic pockets for £24.99,  while a smaller set includes exercise books, pens, pencils, a pencil case, calculator and more for £9.99.

Uniform

In the days when school uniform had to be bought from a certain shop, kitting youngsters out with the right clothes could be a very expensive chore. In September 2007, the government published guidelines encouraging schools to keep the cost of their uniforms down. These days inexpensive school uniform ranges are now available from supermarkets and high street chains – and can be mixed and matched with official school items. M&S is offering free delivery for online ordering: its jumpers start at £2 and trousers at £3.50 and are designed to be non-iron and stain resistant. Recycled products are also included in the range.

Click here to visit M&S >>

Tesco’s school clothing range also includes value (£3.75 for a complete uniform) and Fairtrade options:

Click here to visit Tesco >>

Families on benefits or low income may be eligible for a grant towards the cost of uniforms. Find out more at the direct.gov school uniform page.

Name it

Once you’ve got them, remember to label them – especially the clothes that are likely to be taken off and forgotten. Many schools’ lost property boxes are filled with unnamed, identical jumpers that can’t be returned to their owner because they have no name on them. M&S is offering an innovative service that allows you to order iron-on name labels by text, at a cost of £5 for 50 labels – which could be enough to see you through several years.

Lunchbox

If your child has opted to take packed lunches to school, you can save plenty of money by making your own – or better still, encouraging them to do it themselves. A sturdy lunchbox or lunch bag will help them get their food there in good condition – and ensure that it’s still appetising when it comes to lunchtime. We found a variety of cool choices from Amazon: this lunch set from Thermos keeps food cool and includes a water bottle, while younger kids will be delighted to take this with them.

Have some last holiday fun

If you’ve managed to get your shopping done online, then the last day before school goes back doesn’t have to be spent trudging to the shops. A final family day out doesn’t have to cost money – take a picnic and games to a local park, maybe, or go for a country walk or bicycle ride – but it can help you all relax and forget the inevitable going-back-to-school nerves.

Get the picture

This won’t save you money – but once you’ve equipped your child and they’re heading off to school for the first time, why not take a first day photograph of them before they leave in the morning? Chances are they’ll never look this smart again.

What do you think? Do you have any moneysaving – or other – tips for everyone who is going back to school?