Apply Now For Your FREE Loan Quote!
Wed 28th Feb, 2007
Posted in Banking, UK Finance, Consumer debt, Financial products, Financial news, Personal debt, Bank charges, Debt management at 11:11 am by admin
Despite the fact that banks are set to report record profits this week, they are preparing to add a user fee to their current accounts. Financial authorities are claiming that it is only a matter of time before free banking is a thing of the past.
The Evening Standard reported record profits of £337 billion for banks in 2006. There have been hints from iva.co.uk that banks will stop free accounts. To date, no bank has refuted the claims or denied that a decision is likely.
The people who will be bear the brunt of the decision will be the poor, debt burdened, and financially uneducated.
Alison Melville, spokesperson for Iva.co.uk said:
“The people who it is going to penalise are the poor … It’s crazy because it’s asking for money from the people who don’t have it,” she said.
Ms Melville concluded by stating that banks are trying to remove their “dead wood” – the people who cannot afford to pay. This is paramount to denying affordable banking to society’s poorest.
This is offset by calls from inside the industry for financial providers to improve their customer service.
Ed Mayo, chief executive of the National Consumer Council, stated that banks should provide better services for those that rely on them, the elderly, people with disabilities and those on low income. Mr. Mayo argued that many “fail” to tailor these products to people’s needs.
“It’s high time that the banks’ world-class profits came with world-class customer service,” he claimed.
Charging a fee for accounts is a step away from customer service.
Permalink
Posted in Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Financial products, Spending, Borrowing at 11:09 am by admin
If you are looking to apply for a new credit card, you will find that you are now able to do so online. By applying online you will find many advantages, as well as disadvantages to applying for a card online. If you are careful and research to find the best card you will be able to find a card that is right for you.
Almost all of the major credit card issuers allow you to apply for one of their cards through their website. The card company will instantly receive you application and the processing of the application will be quick. The company will run a few checks on your credit background to determine the interest rate for your account, and also to make sure you are creditworthy. This may take some time, however you will receive a response much quicker than the traditional application method. Typically the waiting period is about a week or less.
By applying online, you will be able to research and find the best credit card offers. You will be able to compare the many offers that are available and find a card that will suit your spending habits. You should carefully research and look around the market and look at sites that will give you a listing of all the current cards and their rates and offers, so that you will be able to compare several cards at one time. Never go for the first deal that is offered to you, you need to shop around and ensure you are getting a good deal.
When you have found a card that is suitable for you, then you will have to go to their website and apply for a card. When you click on the ‘Apply Now’ button, you will be redirected to a secure site where they will ask for your details, such as your mailing address birthdate and other relevant information. When you sign on, you must make sure that the site you are entering your information on is secure before proceeding. Once the information is complete you will then submit the application and wait to hear back from the company.
Permalink
Tue 27th Feb, 2007
Posted in Bad Credit, UK Finance, Consumer debt, Card fraud, Identity theft, Financial news, Personal debt, Fraud at 11:53 am by admin
Mike Haley, head of Scambusters at the Office of Fair Trading (OFT), said:
“Scams affect not only individual victims, but also their families and communities, and can lead to debt, depression and health problems. Though anybody can be conned, it is always the most vulnerable who end up suffering the most.”
The OFT offers Scambuster’ booklet for concerned individuals.
There are many scams. The most popular include emails and phone calls where someone is dying and wants to donate money to charity, but their families will contest their wills. These people offer to donate the money through a victim, for a share, and in turn offer a reward.
Another common scam involves an email where someone has millions of dollars that they need to get out of the country and want a victim to help them and are willing to reward the person handsomely.
The most damaging is Phishing. This involves emails and web sites that ask consumers to enter their banking information.
Once fraudsters copied the HMRC logo onto emails that offered recipients a tax refund of £170. The victim clicked on a link to a bogus HMRC website and completed a form that asked for their bank details.
A Metropolitan Police spokesman said: “We are aware of these types of phishing frauds. We work with partners in the industry to actively investigate the bigger picture leading to them and many are on our Fraud Alert site on met.police.uk. We would be grateful if emails could be forwarded to us for possible inclusion on the website and to enable us to close down the server involved.
“Our advice is that if you receive something that appears to be too good to be true, then it generally it is.
“We advise anyone to forward suspicious correspondence to fraud.alert@met.police.uk and report to their local police station any money they have lost through such a scam.”
Permalink
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Spending, Balance transfer, Borrowing, Personal debt, Debt management, Zero percent cards at 11:50 am by admin
If you are switching to a new credit card, there are some things you should consider if you want to get the best type of credit card that suits you and your spending habits. By paying attention to the way you spend and the way you pay off your credit card balance you will be able to find a card that is right for you.
If you are a regular spender and always clear your balance in full each month then you should consider a credit card with an interest-free period of 59 days from the date of the transaction. This way you will be able to avoid paying interest on your card. A card that offers you a reward or cash back scheme will is another type of card that would be best for you, as you will benefit from the rewards as you will be paying off your balance in full and gaining a bit of a reward for keeping up your payments. However, be cautious of reward cards as they often have higher interest rates than most cards. You also want a card that does not charge an annual fee.
If you are a regular spender and usually clear your balance in full each month and occasionally carry a balance forward, a card with a low interest rate and no annual fee would be the best option. If however, you regularly use your credit card but rarely or never repay the debt in full, the best card for you would be a card with an introductory purchase rate of 0% or a low interest rate. By switching to a card with a 0% or low introductory rate you will then have a chance to catch up on your payments before the interest charges start. However, you will want to make sure that the interest rate is not too high as you may not benefit from the card after the introductory period is over.
By researching and finding a card that is best for you, you will be able to enjoy the privileges and conveniences of a credit card. Keeping a watchful eye on your spending will also help you to know what card is best for you.
Permalink
Fri 23rd Feb, 2007
Posted in Bad Credit, Consumer Credit, UK Finance, Credit Card, Consumer debt, Spending, Financial news, Borrowing, Personal debt, Fraud at 11:29 am by admin
The ruthlessness of fraudsters who operate massive scale scams was exposed this week in a report by consumer watchdogs.
Every year criminals rake in £3.5bn from UK consumers. Behind the statistics live the tragic stories of vulnerable people ruined by scammers who, repeatedly prey on the same victims until they are ruined. Many people who respond to a scam end up on ‘sucker’s lists’ that are shared by fraudsters.
The Office of Fair Trading published a report that reveals stories of people who lost their entire life savings.
Thisismoney.co.uk reports - In one case a woman wrote: ‘My 82-year-old mother was receiving up to 70 letters a day. I realised last year that she had gone through her entire life savings and was running up considerable debts in the belief that she had won a lot of money.
‘She had given out her personal details including her credit card number to a large number of companies and her credit card was hit repeatedly for small amounts of money which mounted up to £7,000 of debt in a very short space of time’
An MP who contacted the OFT on behalf of a constituent wrote: ‘The sheer volume of communications sent to one address beggars belief. The elderly gentleman was an ex-school head-teacher and clearly of the tradition that such letters should be answered. He spent over £4,000 in one month sending cheques which were demanded by scam letters.’
Recent research commissioned by the OFT involving 11,200 interviews found that every year about 1,388,000 UK consumers fall victim to prize draw and sweepstake scams, 400,000 to bogus holiday clubs, 330,000 to work at home scams, 200,000 to miracle health scams, 170,000 to clairvoyant and psychic scams, 110,000 to loan scams.
Permalink
Posted in Consumer Credit, UK Finance, Credit Card, Consumer debt, Financial products, Spending, Borrowing at 11:25 am by admin
If you are looking to take advantage of the convenience of a credit card without risking debt and avoid having to pay interest then you may want to look into getting a prepaid credit card. A prepaid credit card is just like any other credit card, and is backed by major credit card companies. The only difference between a prepaid credit card and a regular credit card is that the prepaid credit card is completely controlled by the user. The account of a prepaid credit card is opened with a deposit and the deposit is then used as the credit limit. The user of the credit card can deposit as much money as they desire, however only the only amount of money that is in the account can be spent. If the cardholder goes over the limit, the card will be denied.
There are many advantages of a prepaid credit card. One of the biggest advantages of a prepaid credit card is the convenience of it, and the fact that there is no way the cardholder can go into debt by using the card. Because the balance is limited by the amount in the account, you avoid spending more than you can afford. Prepaid credit cards also carry no interest charges. They can also help you to build credit, and they can be used wherever a traditional credit card is used. Many people choose to use prepaid credit cards if they are going on holiday, or during the holiday season when they run the risk of going into debt.
As with any product, there are a few things that you should be aware of when it comes to prepaid credit cards. Some companies may charge a fee for loading your credit card, as well as charge you for not loading your prepaid card. There may also be limits on the amount that you can put on the card, as some companies will not allow you to deposit more then a set limit. Prepaid credit card companies may also require you to keep a required amount on the card as well. If you shop around and compare what companies have to offer then you can benefit from the advantages of a prepaid credit card.
Permalink
Thu 22nd Feb, 2007
Posted in Consumer Credit, UK Finance, interest rates, Consumer debt, Spending, Financial news, Housing news, Borrowing, Personal debt at 10:48 am by admin
According to Andrew Buchanan, head of corporate recovery at law firm Halliwells, the retail industry will face some hard times ahead. This will have a direct impact on the UK economy’s level of default loans and ultimately, the level of debt.
The retail sector hits the economy harder than most due to the high level of employment, both self-employment and employment of individuals who have limited options.
He said: “Areas such as music and book shops, which face increasing pressure from online retailers, are under the most pressure.
“A tough year for retailers will have a knock on affect on businesses throughout the supply chain and a number of companies are currently strengthening their credit management procedures.”
And it seems that it is not only retailers that are under pressure.
Mark Lund, at Turner Parkinson, said:
“Many businesses in the north west are currently suffering from the recent interest rate rises and, for those exporting to the United States in particular; the strength of sterling against the US dollar is making life very difficult for them to remain competitive in their markets.”
Nick Hancock, insolvency practitioner at UHY Hacker Young in Manchester, believes that the main cause of business failure is bad management.
Many owner managers were lulled into a false sense of security and failed to face the truth about business problems.
Analysts are watching the retail sector with grave interest. Tens of thousands of unemployed retail employees will effect everything from the housing market to impulse spending. The effects will be far reaching and immeasurable. It will be some time before economists can calculate exact cost to society and social services.
Permalink
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Spending, Borrowing, Debt management at 10:47 am by admin
There are many types of credit cards that are now available on the market. There is the traditional credit card, airline credit cards, and cashback credit cards. Because there are so many credit card companies on the market, it has become very competitive with companies offering lower interest rates, 0% balance transfers and many other incentives. A cashback credit card is one way that companies try to lure you into using their card.
The concept behind a cashback credit card is simple, although many companies offer different rates and amounts, most companies will give you a certain percentage of every pound that you spend. For instance, for every £100 that you spend, you might receive £1 back. You typically receive the cashback rewards annually.
As good as a cashback credit card sound, there are some drawbacks. Almost all cashback credit cards have high interest rates than other cards. This can be damaging to your finances if you do not pay your balance off in full every month. Although you will be rewarded annually, don’t expect it to pay off some of the balance on your card. If you know that you will find it hard to pay off the balance on the card every month, then you should consider other credit cards that have lower interest rates as they will be more beneficial for you.
If you choose to have a cashback credit card, it would be wise to shop around and to compare cards and the offers that are available. It is well worth shopping around, as you will find the best cashback credit card deals.
Permalink
Wed 21st Feb, 2007
Posted in Consumer Credit, UK Finance, interest rates, Savings, Student debt, Homeowners, Spending, Property, Financial news, Borrowing, Car ownership, Car finance, Personal debt at 1:27 pm by admin
The basic cost of living expands far beyond interest rates, council taxes, and increasing utility bills. The cost of living is impacted by life choices and decisions consumers make.
One group of consumers who are hit hardest is divorced and single parents. This consumer group needs to survive without a dual income, but they also need to absorb the cost of the divorce. Norwich Union’s “Cost of Divorce” survey reveals that couples spend £28,000 to divorce, twice that of 2003.
Another cost that has increased dramatically is the cost of driving. The average car now costs £5,539 a year to run, equivalent to £15 a day. This is spurred by an increase in fuel costs. However, it is also increased by consumer’s desire for better automobiles.
Several reports published last year stated that new graduates are discouraged at the cost of living. Many claim that they will not be able to afford to buy a home, or start a family, for at least a decade because of their student loans.
The cost of raising a child from birth to 21 years old is £180,137, or £23.50 per day. The cost of raising a child rose 9 per cent last year alone, according to research from Liverpool Victoria.
Not all increases in the cost of living are necessity based. Britons are now spending more on eating in restaurants, pubs and on takeaway meals than on buying fresh and processed food and drink products to have at home. This has increased their food bills substantially.
The average wedding will now cost £19,595.This is a major blow for the 45 per cent of couples, approximately 117,000, who claim they have no financial planning to pay for their wedding, according to stockbrokers Brewin Dolphin Securities’ research.
Permalink
Posted in Consumer Credit, UK Finance, Credit Card, interest rates, Financial products, Card fraud, Spending, Credit record, Borrowing, Debt management at 1:13 pm by admin
When people hear of a platinum credit card, some automatically associate platinum credit cards as a status symbol. However, today the rules and requirements on platinum credit cards have become more relaxed allowing these cards to be owned by an average person.
Platinum credit cards are typically offered to individuals who earn a certain amount per year. A platinum credit card has many benefits compared to a standard or gold card. If you frequently use your credit card for routine purchases and always pay the balance in full every month, then the platinum credit card would be a good choice.
These type of cards generally offer lower interest rates when compared to a standard or gold card. There may also be a low annual fee, or no annual fee on platinum cards. You also receive rewards such as air miles, reward points, discount points, and other offers. There are some platinum credit card companies that offer protection against accidental injury or involuntary unemployment. They also offer protection against credit card theft and loss, travel insurance, flexibility to share it with friends and family, and also online credit card fraud protection.
Platinum credit cards also offer high limits of credit, or sometimes no limit if you prove you have high earning power over a required amount. However, when you sign on for a platinum credit card you have to be aware of any hidden charges or fees. You also want to make sure that you will be able to keep up with the payments on such a high card. If you know that you will not be able to pay off the full balance monthly, then you should consider another card as platinum cards can have a negative effect on your credit history if you fall behind in payments.
Permalink
« Previous entries ·
