Money Magic

National Lottery bosses have said they are “thrilled” after cash from the game helped propel Britain to a glittering performance at the Olympics.

Camelot Group, which holds the licence for the Lottery, passes on cash raised by ticket sales to sport funding groups.

Much of the money which helps to train Britain’s athletes therefore comes from the Lottery, and officials are delighted after the medal haul in Beijing.

The UK Team GB finished fourth in the overall medals table, its best performance in a century.

Quoted by the Daily Telegraph, Dianne Thompson, chief executive of Camelot, said the success and feedback since has been “absolutely wonderful”.

Following a poor showing at the Atlanta Games in 1996, when the UK won only one gold medal, money has been ploughed into Olympic sports.

Millions of pounds of this has come via the Lottery, which will also be the source of billions in funding for the London 2012 games.

Ms Thompson was also quoted by the paper as saying the story of where Camelot’s sporting cash goes has been told for the first time, thanks to the recent success.

More funding is now expected for a wider variety sports after Britain excelled in a small cluster of events including cycling and water-related sports.

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Mobile phone giant Nokia has boosted its share of the world handset market but has seen falling profits in recent months.

The group said its net profit dropped 61 per cent in the second quarter of 2008 while device sales increased to 13.15 billion Euros (£10.47 billion).

Bosses from the company said they remained “optimistic” over sales prospects.

The firm is now estimated to dominate 40 per cent of the global handset market, up on 39 per cent during the first quarter of this year.

Chief executive Olli-Pekka Kallasvuo said Nokia believed that “devices linked with services” will drive “the next wave of growth.”

The group said it sold 27.1 million devices in Europe, 36.4 million units in Asia-Pacific, 17.6 million units in China and 21.1 million units in the Middle East and Africa.

Other figures also show the average selling prices of handsets produced by the company are decreasing, backing up predictions that the global handset market will grow seven to ten per cent in the next 12 months.

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Evidence collected from a recent survey by British lender Abbey indicates that a large majority of Britons are “financially overweight.”  The study indicates that a mere 1 percent are in top form when it comes to how they manage their personal finances. 

According to Abbey, a substantial number manage their banking affairs and credit card debt in an irresponsible, slack manner and do not take time to comparison shop. 

The results of the survey were ranked according to a “financial fitness” scale, with extreme financial fitness at 0 and “financial obesity” at 100. 

While only 1 percent scored under 10, the results showed an alarming 46 percent of women and 41 percent of men overweight. 

Sue Hayes, Director at Abbey, encourages people to review their financial portfolio before they begin to pack on the additional weight of holiday expenditures.  She recommends that consumers shop around to find the most advantageous rates and deals.

She points out that, just like a physical work-out, the benefits of financial toning are well worth the effort. 

Abbey’s results indicate that Wales and the southwest are the least financially flabby (42 percent overweight), while the north of England had the highest level of financial weight trouble (46 percent).

A report released yesterday by online banking giant Egg suggests that again this year, million of Britons will leave their holiday shopping until the last minute.  Their delay will cause them to overspend by an estimated £594 million. 

Nearly 4 million consumers will fritter away cash and credit needlessly, waiting until the week before Christmas to make gifting decisions.  The toughest 800,000 among them will shop on Christmas Eve. 

The research indicates that these procrastinating shoppers have set themselves up to go over budget by an average of 39 percent, or approximately £150 each. 

Egg’s Chief Marketing Officer, Alison Wright, recommends that shoppers consider ways to reduce the cost of the holidays.  In particular, she warns that anxious last-minute treks, coupled with the lack of purchasing options in the final days before the holiday, drive up spending levels. She reminds us that, “Each year we get 12 months advance warning that Christmas is coming.” 

 The study also revealed that women are just as likely as men to put off their holiday shopping, contrary to popular stereotypes.

The Monetary Policy Committee will hold its regular monthly meeting today and experts predict the cost of borrowing will drop from the current level of 5.75 percent to 5.5 percent.

The Bank of England has been under increasing pressure to cut rates, which have risen five times since August 2006. Since July of this year, rates have held steady.

The LIBOR, the base lending rate that banks charge each other, has gone up dramatically, a factor which may influence any decision to cut rates. The increase in LIBOR is adding to the current difficulty in the credit market.

The MPC must determine how to balance a slowing economy with rising prices, so the decision could go either way, according to Reuters.

This month’s decision whether to cut the rate is “one of the tightest calls ever,” according to Howard Archer of Global Insight.

Many Britons will endure the headaches of holiday spending after the new year, according to Citizens Advice. Slowing wage growth, rising interest rates and high prices will contribute to their maladies. 

Citizens Advice is a free service that offers confidential advising to people facing financial and legal problems. The firm is encouraging Brits to plan carefully and be more thoughtful when making holiday purchases. 

The service answered many questions related to credit card debt, bank overdrafts and late payments following last Christmas. 

Teresa Perchard, director of policy at Citizens Advice, warns that people who get caught up in the moment often overspend. The service sees a huge increase in consumer debt right after the holidays. 

This does not need to be the case, according to Perchard.  People who go into the holiday spending season with a plan are more likely to avoid high levels of debt afterwards.  She urges people to consider the following tips, offered by Citizens Advice and Barclaycard, to help people contain spending during the festive season. 

Plan for Christmas spending in advance.

Make a budget, determine what to spend for each person, and be firm. 

Keep in mind daily living expenses.

You must continue to pay your rent, mortgage payments, money for food, money for utilities, taxes and other regular expenses. There can be serious consequences for missing payments. 

Do not bank on an overdraft.

If you must spend on an overdraft, speak with your bank first. Unauthorized overdrafts can be costly. 

Stay away from shop credit offers.

“Buy now, pay later,” offers can be costly, so avoid them unless you know they are cheap. In most cases, you will be better to pay with cash, cheque or debit card. 

Make certain you understand all the terms of any credit offer to determine if you can afford the minimum payments in your budget. Credit at zero percent interest seems attractive, but it can be very expensive if you do not pay it off entirely on time. 

Comparison shop.

Several price comparison websites let you shop for the best deals. Many shops will be cutting prices during the holiday season, so shop around before you buy. 

Do not jump into an extended warranty.

According to Citizens Advice, you can sometimes repair or replace the item at less than the cost of the warranty. And consumers have protections when they purchase faulty items.