Blog – McCarthy & Associates – Galway Talks, 28/08/2014

blogQuestion:  I am 50 years of age and recently I was refused a credit card because of online betting transactions that I had in my account with Paddy Power.  I was then told that I need to be clear of these transactions for 6 months before I can reapply.  What is your opinion?

Answer:  Having online betting transactions going through your bank account is a big problem when applying for credit. Whilst it may not be the case, they can make an assumption that you have some form of gambling problem and as a result they are highly likely to refuse you a credit facility.  I would recommend that you close your betting account and re-establish your credit worthiness for a further application in 9 months time.

Issue: Unemployment falls to a 5 year low.

Comment:  This is extremely good news, as these figures indicate that the numbers out of work are at a 5 year low and predictions are that it could fall below 10% by the end of next year.  Whilst some may assume that this is due to emigration, the figures for those who are entering into employment, contradict this. 

This news will have a positive affect for those who are currently unemployed, to get jobs over the next 18 months.

Question:  I can afford to save €300 per month; do you think it’s a good idea to put money into a long term savings plan with a life company?

Answer:  I am not a fan of long term savings plans with Life Assurance Companies.  Generally these plans need 7 years to produce any sort of decent returns and in my experience they often fail to do so. 

I would suggest that you place the monies in a savings account with your bank and once you have reached a level of circa €10,000, then you could use this money to invest in a Term Investment bond over a period of 5/6 years.  If you have a long term plan to continue to save, you could build up your own portfolio and manage your money in a far better way than a monthly savings plan .