Don't pay your children's tuition fees upfront
Many scrimping or saving to pay their kids' fees in one go could throw away £20,000+
The new up to £9,000-a-year fees for 2012 starters have sent chills down many spines. Many parents of students next year and beyond are fighting to protect their kids from huge debts. Yet as Martin's new Should I pay tuition fees? guide shows, it could be a mammoth error. Here's a summary:
 The girl who saved £30,000 is a role model for possible disaster. "We've a great role model. A girl's saved £30,000 so her parents needn't borrow for the £9,000-a-year tuition fees." Martin shivered with fear when a journalist wanted a comment on this.
While it's bravo for her savings habit, it's wrong on many other levels. Parents don't need to pay tuition fees, students do, but only if they're earning enough AFTER studies, so the thought of parents getting commercial debt to avoid fees is hellish. Worse...
- Pay upfront for an average graduate and you could waste £23,000. Many students won't repay close to the amount borrowed, as repayments are based on earnings and the debt is written off after 30 years. This means paying upfront can be worthless. There are many repayment scenarios in the guide - a few show paying upfront saves cash, most don't and perhaps the most shocking:
Over the 3 years £27,000 is paid upfront, and the student takes maintenance (living) loans totalling £16,500. Their first job pays a decent £25,000 salary, which then rises annually at 2% over inflation. Studentfinancecalc.com shows they repay £3,500 more over the 30 yrs (at today's prices) by borrowing the extra £27,000 compared to just repaying the maintenance loan - meaning they'd have thrown £23,500 away.
- This isn't 'don't save for your kids future'. For all but highly-paid graduates, using the money to pay fees upfront may not be the best use of that cash. One option is to put the money in a savings account while they are at uni and wait to judge likely earnings or keep it aside for future, costlier debts such as a mortgage or car loan.
If you're considering paying fees upfront (or know someone who is), read the full pros, cons and alternatives in the New Guide: Should I pay tuition fees upfront? Related: Student Loans 2012, Should I repay my student loan?
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MSE & Which? team up for PPI claims handler guidance
Scores of reclaim successes coming in daily | Many needlessly give £1,000s to claims handlers
Banks have set aside £6 billion+ to pay out mis-sold payment protection insurance claims. It's become a straightforward process, and we get scores of DIY success reports daily. This week alone, the biggest's £21,000. Yet those using claims firms can give away 30% for just filling in a couple of forms. This week we've teamed up with Which? to launch best-practice guidance we want claims companies to follow.
 Check now if you can reclaim £1,000s. If you've had a loan or credit card and were told PPI was compulsory, had it added without knowing, were self-employed, unemployed or retired, it's likely you were mis-sold and can get the money back even if the debt's repaid. Our PPI reclaiming guide includes free template letters.- Is it ever worth using a claims handler? Rarely, though those with mental health or literacy problems or claiming from a company that wasn't FSA regulated may sometimes find it worthwhile. To check, try our new Should you use a claims handler? tool.
- The MSE & Which? claims handler checklist. If you decide to use claims handlers, at least ensure they're decent. We've put our heads together with Which? to devise a checklist to ask a claims handler before using them. It includes checking they don't take money upfront, they don't break MoJ guidance by claiming to guarantee a better success rate and don't try to sell you other services. See our claims handler checklist for full info.
Full help: PPI Reclaiming and Credit Card PPI Reclaiming Related: Bank Charges, Credit Card Charges, Council Tax
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'Rebuild credit' card with 0% spending until Jan
Card helps those with poor histories boost their credit record - if used CAREFULLY
If you've a poor credit history, you'll struggle to get new credit cards offering top 0% deals. But there is a card that will help to build or rebuild your creditworthiness, which also has just extended its 0% offer...
 Top easier-to-get card. The Capital One* Classic card (Moneysup exclusive, link goes there) gives accepted new customers 0% spending till their Jan statement, so 3+ months. After that, it jumps to a monumentally high 34.9% representative APR. Even some with limited CCJs/defaults may be accepted (not bankruptcy).- How to safely use it to build credit score. It's all about 'behavioural predictions' based on past history. So get the card, then use it for, say, £50/month of normal spending, ensuring you FULLY repay by direct debit so there's no interest. After a year or so it should help boost your credit score, making mortgages etc easier to get. More options in the full Boost Credit Ratings guide.
- Is it worth using the 0%? The super-organised can take advantage, but always make at least min repayments & ensure it's fully cleared BY JAN. Eg, those facing repeated bank charges, which are far costlier than interest, can spend on it rather than from their bank account to help get under the overdraft limit (but keep to a tight budget). Of course, it could also be used to spread Christmas's cost, yet if you've a bad credit history, is it worth the risk?
FULL step-by-step info and more card options in the Updated Guide: Top Credit Rebuild Cards, Official APR examples
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