The government recently decided to cut part of the child benefit to families with one parent with a taxable income of more than £50,000. However, if one parent is earning above £60,000, they will see the entire amount withdrawn.
It has been reported that failure to opt-out of the system, those that fall into the category will see their benefit being recovered through a tax charge. This has spurred on a late surge or around 80,000 people opting out before the weekend deadline (as reported by the BBC.)
The entire process has angered many people as they believe the set-up is unfair. Some families are finding out that their neighbours on slightly lower incomes are will not be hit with the cut. For instance; families on £50,000 will see their child benefit cut and those on £49,000 will not.
Child benefit is paid on a rate of £20.30 a week for the first child and £13.40 for the second. It lasts up and until the child is 16 or 18 if they are in full time education, according to the research by the BBC. It is estimated by the Institute of Fiscal Studies that families could see a loss of £1,300 a year.
It is evident that the government is seeking every avenue to obtain enough money to cover the economies debit ever since the recession. There are many arguments that criticize the process especially if billions are being spent on military means.
Most people are feeling the struggles of the recession, and different schemes assisting such people are propping up. One of these financial products is a Log book loan; other types include banks loans and payday loans.
The rise in log book loans is down to the criteria and affordability of the loan. Applicants can secure a log book loan that is set against their vehicle that is free of finance. The criterion accepts a majority of financial backgrounds even those with bad credit.
Similarly log book loans are up to 93% cheaper compared to Payday loans and more easily accessible. Banks for instance find it difficult to lend to those with a bad credit history, if even for low amounts.
Log book loans has provided applicants to get loans up to the value of their vehicle, and this could be up to £100,000.