Possible lower debts with store cards
September 25, 2007
Store cards are traditionally associated with high interest rates, and many consumers are urged to avoid spending on these cards.
However, one recent report has suggested that when used properly store cards could actually help some consumers to avoid the same level of debt that can be easily run up on a standard credit card. According to officials there are a number of ways in which store cards can help to reduce the risk of heightened debt, including the reduced credit limit offered on these cards and the reduced number of places in which the cards can be used. Read more
Interest rate stays on hold for now
September 25, 2007
Homeowners across the UK breathed a sigh of relief last week after the Bank of England announced that Monetary Policy Committee members had voted to keep interest rates on hold following September’s meeting.
Interest rates have already shot op over the past year, with five 0.25% rises taking the base rate from 4.5% last August to 5.75% by this July. Many experts had previously stated that another interest rate rise of 0.25% was likely this year, which would have taken the base rate to 6%. However, this is an outlook that has changes for various reasons, which were reflected in a statement issued by the Bank of England when the announcement about the interest rate was made. Read more
Could supermarkets soon take over current accounts market?
September 21, 2007
There was a time when supermarkets were only used for the purchase of groceries and household goods, but all of this has changed over recent years.
Many leading supermarkets in the UK have really branched out over recent years, and have started offering an array of financial products and services, such as insurance services, loans, and credit cards, amongst others. Many offer savings accounts as well as banking services, providing the consumer with far more choice when it comes to finding the best financial products and services. Read more
Avoid loaning money to family and friends
September 21, 2007
According to a debt advice agency in the UK it could be detrimental to both the borrower and the lender in cases where people are lending money to friends and family members in order to get them out of financial hot water.
Officials from the Debt Advice Bureau claim that it is far better for consumers to offer sound advice to their friends and family with regards to their financial situation than to actually bail them out financially, as this could result in financial losses for the person lending the money and fails to teach the borrower any lessons with regards to staying out of debt and managing their finances. Read more
The importance of good financial management for future buyers
September 21, 2007
With the sub-prime mortgage markets in the UK now feeling the effects of the sub-prime crisis in the United States, those planning to purchase a property in the near future could find things very difficult – and expensive – if they have a badly damaged credit rating.This is why experts are now urging anyone that is planning to purchase a property in the next year or so to make sure that they get their credit sorted out, or if they have decent credit to make sure that it stays that way in order to avoid difficulties when it comes to getting a mortgage. Read more
Many consumers worried about interest rates
September 21, 2007
A recent report has highlighted just how many consumers are still concerned over UK interest rates, with over 40% still worried about future interest rate rises, which could further impact upon repayments for those on variable rate mortgages.
After five interest rate rises of 0.25% each over the past year, which has taken the base rate from 4.5% last August to 5.75% by this August, many homeowners in the UK have already had to cope with rising repayments, and the level of repossession in the UK has rocketed over the first half of this year as a result of this. Read more
First time buyers decide to wait it out
September 20, 2007
First time buyers decide to wait it out
According to recent reports many first time buyers in the UK are deciding to play it safe when it comes to purchasing a property.
Soaring property prices and rising interest rates have made many first time buyers think twice about rushing into property purchase, although many have sunk themselves deep into debt and borrowed off family members in order to get onto the property ladder. However, it seems that more and more first time buyers have decided that their best bet is to wait it out and see what happens with both interest rates and property prices. Read more
Bankruptcy could be the right answer for some borrowers
September 20, 2007
The level of consumer debt and bad debt in the UK continues to rise, and many consumers have found themselves in huge levels of debt, which for some will prove impossible to pay off.
A recent report has suggested that for those that have little or no hope of every repaying their debts bankruptcy could prove an effective option, despite the stigma and repercussions associated with this course of action. The statement was made by a debt charity in the UK, Credit Action. Read more
Customers don’t want to pay monthly fees on bank accounts
September 19, 2007
According to the results of a recent survey, consumers in the UK would prefer not to have monthly fees applied to their current account, even if this puts an end to penalty charges that are currently charged by banks if the consumer exceeds their overdraft limit, and for returned cheques and direct debits.
There has been much controversy over bank charges over the past year, and many consumers have reclaimed these charges going back up to six years. Read more
Another interest rate rise in the pipeline
September 19, 2007
Although the Bank of England has decided to leave interest rates on hold at 5.75% for the month of August, there are strong indications that at least one more interest rate rise will need to be applied this year in order to try and bring inflation under control.
Analysts and economists have already predicted that there will be another interest rate rise this year, taking the base rate to at least 6%, and indications of a further rise have also been picked up from the Bank of England’s quarterly inflation report. Read more