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Archive for December, 2006

Britain’s Economic Forecast

Thursday, December 21st, 2006

The HM TREASURY News Release (PN01) issued by The Government News Network on 6 December 2006 reveals the new initiatives to tackle financial inclusion

Today the Government announced details of a number of measures being implemented as part of its wider strategy to promote financial inclusion. Key measures include the details of a £5.4 million campaign to assist financially excluded people to access mainstream banking and credit products.

It also includes new funding of £2.5 million to increase the number of new advisers, specialising in free face-to-face debt and money advice in areas of high financial exclusion, to over 500.

The public sector net debt remains low and stable over the forecast period, remaining below 39 per cent of GDP, below the 40 per cent ceiling set in the sustainable investment rule.

Ten years ago Britain was 7th in the G7, bottom of the league for national income per head. In the last two years Britain has been second only to the USA.

In no other decade has Britain’s personal wealth , up 60 per cent, grown so fast. Britain continues to combine recession free growth with a decade of employment and productivity growth.

This explains why the loan companies are pressuring government to combat the increase in IVAs. The pre budget reports, and current economic statistics, paints a different picture than the debt consolidation companies. Britain is not in a recession. Consumers do not need to panic.

UK consumers do not need to rush into any debt management scheme. Analysts predict that Britain’s economy will remain healthy for several years.

Posted in Borrowing, Consumer Credit, Consumer debt, Financial news, Personal debt, UK Finance | No Comments »

How easy is it to switch current accounts?

Thursday, December 21st, 2006

If you have been with the same bank for some years now and haven’t been looking at what is available from rival banks, then you could be in for a big surprise. The deals that are on offer on your typical bank account are drastically different today from what they were just a few years ago. Current accounts now offer everything from interest free overdrafts, to signing up gifts and gifts for referring friends, and they will even pay interest on your current account balance at rates that will match the best savings accounts.

So why are so many people sticking with their old under performing bank accounts? Well basically they are afraid of the hassle of changing bank accounts. Some people are also afraid of how it would appear on their credit score if they change bank accounts. While it may look suspicious to some lenders if you are constantly jumping from bank to bank without a reasonable explanation, switching bank accounts is a common practice that will not have a serious negative impact on most people’s credit rating.

Switching bank accounts can also be a lot easier than you might think. While it may have been difficult in the past, switching now is quick and simple, and banks can even adopt and continue all of your standing orders and direct debits so that you do not have to go through the process of setting these up again. The only thing you really have to do is make sure that you tell people who pay money into your account that you have switched. For most people this would really only be their employer and perhaps the Inland Revenue for receiving benefits and tax credits. That is a small price to pay for the benefits that can be gained from a better bank account.

Posted in Balance transfer, Banking, Consumer Credit, Credit record, Financial products, interest rates, Savings, UK Finance | No Comments »

Med students’ debt exceeds first year salary

Thursday, December 14th, 2006

Research from the British Medical Association (BMA) has found that the average debt of a final year medical student now exceeds £21,000, reports the Guardian. This is £1,000 more than the basic annual salary of a junior doctor. The BMA’s survey of almost 2,000 medical students showed that average debt levels has risen from £20,963 last year to £21,755 this year, with new doctors earning £20,741 in their first year.

The research showed that 13 per cent of those surveyed owed more than £25,000, with 100 owing over £30,000 and one student reported as owing £53,000. Medical students study for longer than students on other degree courses and may have to buy specialist equipment. Some 90 per cent of the students surveyed had student loans, with 60 per cent also having an overdraft and 17 per cent having a bank loan. More than 60 per cent of those polled were also carrying a £1,000 credit card debt.

The BMA says that debt levels were likely to rise in the wake of university top up fees, adding that this might stop people from poorer backgrounds from training for the medical profession. The Guardian quotes Emily Rigby, of the BMA’s medical students committee, as saying: ‘The government has said it wants to increase the number of UK doctors and to widen participation in medicine. It will fail in both of these aims unless it takes action to tackle the significant financial pressures facing medical students. Becoming a doctor should be about your commitment to medicine and patient care, not the amount of money you are prepared to borrow.’

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Financial news, Personal debt, Personal loans, Student debt, UK Finance, Unsecured loans | No Comments »

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