April 2009 Archive
Posted on April 30th, 2009 in Debt.
Customers are becoming increasingly disgruntled over the fees charged by airlines to use credit and debit cards, a consumer expert has argued.
Amanda Diamond, news and investigations journalist at Which? Holiday, says people want their airlines to be upfront, as opposed to being stung by charges later in the booking process.
"In the past, there was a flat credit card fee so people knew what they were paying but that has increased quite substantially recently," she continues.
The expert claims that airlines such as Ryanair are charging a fee per person, per booking, which she deems to be a "disproportionate charge".
Britons are needlessly paying out more than £9 billion pounds in credit card interest each year, according to research from Abbey.
It also suggested that those aged over 55 are most likely to own a credit card (77 per cent), compared to 71 per cent of those aged between 35 and 54.
Furthermore, only one in five Britons with credit card debt are planning to transfer their outstanding balance over the next few months to take advantage of a zero per cent deal.
Posted on April 30th, 2009 in Debt.
Many Britons are making cutbacks in their lives in a bid to beat the credit crunch, it is believed.
New research from Abbey shows that over half of Britons are adopting this lifestyle, with many resorting to cheaper products in the supermarkets.
"In today’s difficult economic climate, reviewing your monthly expenditure to find ways you can make your money go further is absolutely essential, which is why straightforward, good value products are the order of the day," comments Roger Lovering, managing director of Abbey Credit Cards.
Those who have made cutbacks and are still facing financial troubles, however, may want to consider taking advice from a debt management company.
The research shows that people under the age of 20 are most likely to buy no frills products, with 30 per cent of those questioned saying they have always bought such items.
In response to the latest Budget, Abbey welcomed plans to extend the stamp duty holiday, saying the move would help first-time buyers.
It did, however, express its disappointment that the move did not go a step further.
Posted on April 30th, 2009 in Debt.
Shoppers in the UK like using their credit cards due to the security they offer, it is believed.
Tim Pie, a spokesperson from HSBC, believes debit cards are also popular for the same reason, with people enjoying the convenience they offer.
"It is becoming increasingly common for people to buy a round of drinks with a debit card and other convenience goods as more and more retailers are now accepting cards," he reveals.
Cheque usage is in decline, however, with many businesses now refusing to accept them as a method of payment.
However, tradesmen are still accepting cheques, which Mr Pie believes is because "they have it in their in their hands rather than giving you their account details".
Latest figures from Apacs, the UK payments association, show that plastic cards accounted for 66 per cent of all UK retail spending last year, with debit cards accounting for two-thirds of all spending on cards.
During 2008, the growth of debit card spending at retailers remained strong with spending rising by 6.8 per cent, with electronic payments also continuing to rise.
Posted on April 29th, 2009 in Debt.
Older people are at risk of fraud, which may lead them to need the services of a debt management firm.
Editor-at-large of Saga Magazine Emma Soames says they are vulnerable and therefore liable to attack from fraudsters.
"Do not give away personal information such as bank details and pin numbers, reputable companies don’t ask for this information," she continues.
People also need to be aware of the signs of scams and need to take precautions against becoming victims, Ms Soames believes.
Those who are approached with such offers over the phone need to be given time to consider the deal, the expert advises, with people advised to ask for confirmation in writing to deter potential fraudsters.
A recent survey by the Financial Services Authority showed that 35 per cent of people targeted by share fraudsters in the last year were over 65 and 23 per cent of people over this age felt they could become victims of fraud in 2009.
Furthermore, 41 per cent of the people questioned who did not know that fraudsters could use personal details in passports, driving licences and mortgage applications to steal their identity, were aged over 65.
Posted on April 29th, 2009 in Debt.
Tackling debt head-on is one of the most effective ways of clearing financial difficulties.
Sam Barrett, writing for Moneywise, says those who are in debt are not alone, with the Bank of England predicting that the average adult in the UK owes around £30,435.
"We have had a 70 per cent increase in the number of people contacting us last year compared with 2007," Beccy Boden Wilks, a spokesperson for National Debtline tells the website.
He suggests to those who have racked-up thousands of pounds worth of debt that they arrange an individual voluntary arrangement, as this will enable them to pay some of the outstanding debt back to creditors over a five-year period.
People can also make cuts on their expenditure, with Frances Walker, a spokesperson for the Consumer Credit Counselling Service telling the website that drawing up a plan can make all the difference.
"Be realistic about your spending, but also about your income," he reveals.
Total UK personal debt at the end of February 2009 stood at £1,458 billion, according to Creditaction, with total secured lending on dwellings at the end of February 2009 standing at £1,227 billion.
