‘General Finance’ News
Banks respond to interest rate cut
Posted 2007-12-18
With The Bank of England cutting the rate of interest on December the 6th, two further mortgages providers have reacted, lowering the rate of selected products. From January 2008 Standard Life will decrease the rate of its Freestyle standard variable...
Read Banks respond to interest rate cut
-
Delicious -
Digg -
Reddit -
Facebook -
Stumbleupon
Cash withdrawals increase.
Posted 2007-12-12
Christmas shoppers are using more cash this year, potentially at the expense of credit cards. Cash machine operator Link has reported that ATM withdrawals are up 7.1% for the first ten days of December compared to November. In the previous 4 years, this figure has been around 5%. In November, the payments association APAC predicted a fall in cash spending of 5% over the Christmas period compared to 2006 and a predicted retail spend of £53billion. This predicted spending would be a rise of 4% compared to 2006 which APAC said would be fuelled by credit card spending. However, it appears that worries about the ongoing credit crunch have led consumers to rein in credit card spending and use cash. According to retail spending figures from credit card company MasterCard weak sales were reported in November, slowing the annual retail sales growth rate down to 4% from 4.5%. ...
Read Cash withdrawals increase.
Britons facing financial capability problems
Posted 2007-12-11
Just 1% of Britons have complete control over their finances and the vast majority of people show irresponsible behaviour with regards to their credit cards, banking and shopping around for the best financial deal. This is according to a survey by Abbey which sought to find out “financial fitness” on a percentage scale, with 0 being a “financially fit machine” and 100 being “financial obese”. The survey showed that 46% of women and 41% of men were “financially overweight”. People in Wales and the South-West were the fittest financially (42% overweight) whereas people in the North of England were the most overweight financially (46% overweight). Sue Hayes, Director at Abbey said: “We would encourage people to review the financial products they hold and shop around to ensure that they are getting the most competitive deal available. Like exercise, a financial workout can take a bit of effort but for most people the rewards are well worth the exertion.” ...
Read Britons facing financial capability problems
Credit companies authorised to discriminate against age
Posted 2007-12-10
High Street banks will be allowed to discriminate in their provision of credit, dependent on age. Currently older people find it more difficult to obtain credit due to doubts that they will live long enough to pay off the loan....
Read Credit companies authorised to discriminate against age
Bank of England under pressure to cut interest rates
Posted 2007-12-6
The Bank of England’s Monetary Policy Committee is under pressure to cut interest rates today. Interest rates rose five times since August 2006, but have been unchanged since July. However, analysts expect the cost of borrowing to drop to 5.5% from 5.75%. Global Insights Howard Archer said: “[the December 2007 rate decision] is one of the tightest calls ever”. A key factor in a rate cut is the growth in the Libor rate, the rate at which banks lend to one another. This has led to the “credit crunch” that consumers and banks alike have suffered in the second half of 2007. ...
Read Bank of England under pressure to cut interest rates
Start financial detox early
Posted 2007-12-3
High interest rates, rising prices and slowing wage growth will make this January’s debt hangover particularly difficult. January is the most common time for Citizens Advice to receive enquiries for loan arrears, debt arrears, credit card bills and overdrafts. Citizens...
Read Start financial detox early
Tightening consumer credit hits festive spending
Posted 2007-11-26
According to a report from accountants PricewaterhouseCoopers (PWC) UK consumers are facing a cut in the credit available to them. PWC’s Precious Plastic 2008 report states that credit card companies are suffering from falling profits due to customers defaulting on payments as well as an increasingly competitive environment. Credit companies have lost around £4 billion due to customers not being able to me repayments, according to PWC his has led to “thousands” of credit card applications being rejected over the Christmas period. Richard Thompson of PWC said: “Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies. Many consumers will find it increasingly difficult to obtain credit this Christmas.” PWC also show that UK consumer debt is increasing, with the average British adult having £33,000 of unsecured debt, double the 2000 figure. ...
Read Tightening consumer credit hits festive spending
Cuts in credit limits follow credit crunch
Posted 2007-11-20
Borrowing limits on credit cards are being cut following the global financial crisis. Even customers with good repayment records are finding that card companies are lowering their credit limits. Credit card provider Goldfish said that it had cut limits for a “small amount” of customers. The global financial crisis began with the collapse of the US sub-prime mortgage as many sub-prime customers defaulted on their mortgage payments. In turn, it materialised that many financial institutions had purchased these sub-prime debts on the money markets and were facing huge losses with the sector’s collapse. This led to an increase in the Interbank rate, the rate at which banks lend to one another. The situation has been called a “credit crunch” and has now trickled down to High Street level. More credit problems are anticipated as big losses are predicted for global financial institutions exposed to the US sub-prime market. ...
Read Cuts in credit limits follow credit crunch
House of Lords rules against credit companies
Posted 2007-11-1
The House of Lords has ruled that consumers who use their cards abroad will be covered under Section 75 of the Consumer Credit Act. The ruling was made following appeals against the Act by Lloyds TSB and Tesco Personal finance were dismissed. This means that credit card purchases between £100 and £30,000 made abroad will be insured by credit card companies. Mike Naylor, Personal Finance expert at uSwitch said: “This landmark decision has finally laid to rest the issue for overseas transactions which has been rumbling on with credit card suppliers for several years. The decision to uphold it means that wherever in the world consumers use their credit card; they can enjoy the same protection as they do in the UK. This is especially important with the growth if Internet shopping where goods are often shipped to the UK from sites based overseas.” In 2006 UK consumers spent £16.4billion overseas using credit and debit cards. ...
Read House of Lords rules against credit companies
So lets talk money!
Posted 2007-10-6
Most people bury their heads in the sands of debt and don’t ever really grasp how a good understanding of their personal finances can be the path to a debt free life. Come with us on a journey into time and cash as we educate our readers as to the state of the financial world and how you can enjoy more money, more of the time. ...