HSBC to charge overdraft fees to new graduates
July 7, 2007
HSBC has announced that it will be scrapping an element of its free overdraft for students facility this year by adding an interest charge to the overdrafts of new graduates when they leave university later this year.
In the past HSBC, like other banks, has granted students a free overdraft facility whilst at university, and then granted them time to gradually pay off the overdraft after leaving university without charging any interest on the overdraft. Read more
The dangers of making minimum repayments
July 6, 2007
As a nation we are pretty reliant on credit cards because they provide us with increased convenience and flexibility.
However, in order to make the most of a credit card it needs to be used – and repaid – sensibly, and many people fail to do this. In many cases consumers are making only the minimum repayment on their credit cards, and this is leaving them in debt for years because their repayments are making very little impact on their actual debt, going instead towards paying interest that is added to the balance by the credit card companies. Read more
Study shows lack of trust in banks
July 6, 2007
Banks in the UK have been in the firing line over recent months, and have faced accusations over a wide range of issues, from extortionate penalty fees and charges, to breaches of security and poor customer service.
A recent study reflects the level of consumer confidence when it comes to UK banks, and the results indicated that around 75% of consumers did not have much trust in their bank. Read more
Significant increase in student loans
July 5, 2007
Most students and former students know what a financial struggle it can be to be in full time education, and this is reflected in the rising level of student loans and finance being taken out in the UK.
Recent figures have indicated that there has been a significant increase in the level of student loans over the last year across England, Scotland, Wales, and Northern Ireland. These finding were reported by the Students Loan Company, with officials confirming the rise in student borrowing over the past year. Read more
Repayments on mortgages reach fifteen year high
July 5, 2007
According to recent figures repayments on mortgages in the UK have reached a fifteen year high, as homeowners on variable rate mortgages struggle to cope with the inflated repayments resulting from four interest rate hikes over the past year.
Interest rates have gone from 4.5 percent in August of last year to 5.5 percent by May of this year. And it is widely predicted that the Monetary Policy Committee will be hiking up the interest rates again in July. Read more
Financial benefits of quitting
July 4, 2007
With the smoking ban now in force in the UK, many smokers have decided to try and kick the habit in order to become part of the new, smoke free Britain.
With smoking now banned in all public enclosed areas, going out for a drink and puffing on a cigarette has become a thing of the past, and for many smokers the ban has provided the ideal reason to give up. And experts are stating that smokers could boost their finances hugely with the money that they save by giving up. Read more
Borrowers on variable rates should be careful
July 4, 2007
Consumer debt levels in the UK have been a major concern for some years, and experts are now warning that consumers that have variable rate finance could soon find themselves struggling to keep up with repayments as interest rates continue to rise.
Since August last year interest rates have gone up four times by 0.25 percent each time, and the rate has gone from 4.5 percent to 5.5 percent during that time. Borrowers on variable rates have already seen their repayments rocket in some cases, and experts state that the situation is set to get worse before it gets better. Read more
Fewer free balance transfer deals available
July 3, 2007
Balance transfer credit cards have been providing those with high interest credit card balanced with an effective solution to avoiding interest charges for some years.
However, according to recent reports the number of credit cards that allow fee free balance transfers is rapidly dropping, which means that those wishing to benefit from transferring their balance onto a 0% interest card will have to pay for the privilege in the form of a fee. Read more
Second bank charges case victory to Lloyds
July 3, 2007
Lloyds TSB, one of the UK’s leading banks, has enjoyed yet another victory in a case relating to the refund of bank charges.
The banking giant already won one case, where a Birmingham ban tried to reclaim charges amounting to over £2500. However, the judge ruled in favour of the bank rather than the plaintiff.
That was a real victory for Lloyds, as it was the first bank to have won a case filed against it by a consumers looking to reclaim these charges. And now the bank is enjoying a second victory within a short space of time from the first. Read more
Savers urged to make the most of interest rate rises
July 2, 2007
The recent interest rates have really taken their toll on borrowers, and those with variable rate mortgages as well as first time buyers have found themselves facing significantly increased repayments on their mortgages.
Interest rates week hiked up by the Bank of England by 0.25 percent in August 2006, and again by the same amount in November 2006. In January of this year a further 0.25 percent was applied to the base rate, and another in May of this year. Read more