Personal Finance Blog
Cash Withdrawals Rise
Posted 2007-12-13
It appears that fewer consumers are using credit cards to pay for their Christmas purchases this year, relying instead on cash. According to figures released yesterday by LINK, operator of the cash machine network in the UK, daily ATM withdrawals...
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Twenty Percent Will Pay for Christmas Next Summer
Posted 2007-12-12
A survey conducted by Your Money Matters Show reveals that twenty percent of Britons will still be paying for their Christmas purchases next June. Ten percent will continue to pay in September, and nearly four percent will be paying bill...
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Beware Hidden Card Charges Warns Post Office
Posted 2007-12-12
Travelers planning to celebrate the holidays abroad could find an unpleasant surprise awaiting them when they open next month’s bill-a hidden credit card charge. Most consumers are unaware that many credit card providers charge a 2.75 percent fee for overseas...
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Age Discrimination in Bank Loans to Continue
Posted 2007-12-10
Older Britons seeking credit from banks often encounter problems as banks weigh whether they will live long enough to repay the debt. The BBC reports that the right of banks to consider age in offering loans has been upheld. Earlier...
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Bank of England Move Difficult to Predict
Posted 2007-12-6
The Monetary Policy Committee will hold its regular monthly meeting today and experts predict the cost of borrowing will drop from the current level of 5.75 percent to 5.5 percent. The Bank of England has been under increasing pressure to cut rates, which have risen five times since August 2006. Since July of this year, rates have held steady. The LIBOR, the base lending rate that banks charge each other, has gone up dramatically, a factor which may influence any decision to cut rates. The increase in LIBOR is adding to the current difficulty in the credit market. The MPC must determine how to balance a slowing economy with rising prices, so the decision could go either way, according to Reuters. This month’s decision whether to cut the rate is “one of the tightest calls ever,” according to Howard Archer of Global Insight. ...
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Standards for Debt Management Put in Place
Posted 2007-12-5
Bankers and credit providers working together have developed a new set of standards to help people with high levels of debt. Individual Voluntary Arrangements (IVAs) will give them access to tools to help them manage their finances, according to the British Bankers’ Association (BBA). Providers that offer IVAs will be subject to industry-wide standards governing advertising, advice, information and documentation. The BBA explains that the standards, which should be in place by February 2008, will streamline the application process for IVAs. Angela Knight, Chief Executive of BBA, wants borrowers and creditors to understand that an IVA recommendation is the best way to resolve debt problems. The standards should give borrowers more confidence as they make decisions about their financial futures, according to Knight. The Government’s Insolvency Service reported 26,956 people in England and Wales were declared insolvent in the second quarter of 2007. ...
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Resist Urge to Overdo It
Posted 2007-12-3
Many Britons will endure the headaches of holiday spending after the new year, according to Citizens Advice. Slowing wage growth, rising interest rates and high prices will contribute to their maladies. Citizens Advice is a free service that offers confidential...
Funding for Personal Loans Drying Up
Posted 2007-11-30
Britons may find it impossible to secure a mortgage or personal loan after the holidays, reports Moneyfacts.co.uk. As the effects of the credit crisis become more widespread, loans are becoming harder to get. Ten percent of lenders have left the...
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Christmas Spenders May Feel Credit Crunch
Posted 2007-11-26
PriceWaterhouseCooper have released their “Precious Plastic 2008” report, and company accountants suggest a tightening of consumer credit in response to increasing debt loads and unrecoverable loans. The firm predicts that credit card providers will see a decline in profits as more and more borrowers find it impossible to make payments on their debt. Increased competition in the industry will compound the sector’s troubles. Credit companies have already lost nearly £4 billion, and PwC believes this will contribute to a substantial number of credit application rejections this season. The report indicates that the average adult owes approximately £33,000 in unsecured loans, double the amount in 2000. The rise in consumer debt is forcing banks to tighten their lending standards, according to Richard Thompson of PwC. He fears that many consumers will find it difficult to obtain credit in the months before Christmas. ...
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Credit Providers Reduce Borrowing Limits
Posted 2007-11-20
Many consumers, even those with a good record of repayment, are seeing a reduction on their credit card spending limits as companies respond to the current global financial crunch. The “Daily Telegraph” reports that spending limits are being “slashed.” Financial...