Let's Talk Money
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.” ...
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Hidden credit card charges after Christmas abroad.
Posted 2007-12-11
The Post Office has warned the 2.4 million Britons heading overseas for Christmas this year that they could face “hidden” credit card charges in the New Year. Many card companies charge an extra 2.75% in commission for each overseas transaction, a fact many consumers are unaware of until the charge appears on their bill. Post Office Director of Lending Gary Fitton said: “Many people could be returning from their Christmas break with a lot more than ‘memories and mementoes’ due to unnecessary card charges.” According to the Post Office, 49% of festive holiday makers plan to use their credit cards whilst abroad. ...
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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....
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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. ...
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New standards for Individual Voluntary Arrangements
Posted 2007-12-5
The British Bankers Association (BBA) announced new standards for Individual Voluntary Arrangements (IVAs) to help indebted people through their financial problems. Credit providers worked together to agree industry standards for the marketing, advice and documentation associated with IVAS. The standards will be put in place by February 2008 and will make the IVA process more “streamlined”. Angela Knight, BBA Chief Executive said: “People in debt and their creditors need to know that when an IVA is proposed it is the most appropriate solution. The standards will give [people in debt] the reassurances they need in order to make the right choice for their financial futures”. According to Government statistics, 26,659 people were declared insolvent in England and Wales during the second quarter of 2007. ...
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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...
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Need a loan? Make a move before Christmas.
Posted 2007-11-30
Britons looking for a loan or mortgage should do so before Christmas, or potentially miss out. The impact of the credit crunch is being felt, with personal loans and mortgages becoming increasingly difficult to secure. One in ten lenders has...
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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. ...
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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. ...
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Brits to rein in credit card spending
Posted 2007-11-8
The ongoing credit crunch may lead to UK consumer s avoiding credit card expenditure over Christmas. The credit crunch has been caused by the slump in global financial markets following the collapse of the US sub-prime loans market, which led...