Brits turn to credit cards three weeks after getting paid

It has been claimed in a recent report that millions of Brits are able to manage for around three weeks or so after getting paid before they are forced to turn to their credit cards. The reliance of many Brits on credit cards has increased as a result of soaring living costs, spiralling bills, frozen wages and government cutbacks. All of this has led to people being unable to manage as well as they used to in terms of their finances.

Whereas in the past consumer wages may have lasted more people for the full four week before the next payday came around, many are now finding that it lasts for only three of the four weeks, leaving them with a week where there money has run dry. This is the point where millions of Brits are turning to their credit cards to fund their living costs for the final week before payday comes around.

The research showed that around a quarter of consumers in the UK turn to their credit cards once they have run out of cash in their current accounts. The majority tend to run out of cash around three weeks after getting paid, at which point they turn to their credit cards. However, around one tenth of those that have to subsidise their monthly spending with a credit card are only able to manage for fifteen days before having to turn to their cards.

An official involved in the research said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. If you’re the type of person who doesn’t pay off their card every month, you need to look at the steps you can take to reduce monthly expenditure before turning to credit products. Budgeting is crucial at the moment and people will be amazed at how much cash they can free up each month by simply sitting down and going through their finances.”

Tags: expenditure, budgeting, monthly spending, person, consumers, spiralling, type

Many paying for fuel with credit cards

For many people credit cards have provided a convenient and simple means of making payments instead of paying cash or using cheques. However, it appears that these days credit cards have become an essential tool to help people afford to fill up their cars so that they can get around. Many people have used their cards at petrol stations in the past simply because of the convenience that they provide. However, these days people are said to be using them out of necessity.

As all drivers will know the cost of petrol and diesel has rocketed over recent months, and the cost of filling up a tank has soared. As a result of this many people have had to resort to using their credit cards to pay for fuel at petrol stations because they cannot afford to do anything else, and this has sparked concerns about the knock on effect that this will have on consumer debt levels.

Daily living costs have soared in many areas recently, yet many people have seen their pay either frozen or reduced because of the recession and the financial climate, which has left most struggling to cope with the rise in the cost of living. Many people are not only paying for their fuel with their credit cards but are also now meeting other essential living costs with their cards. Many are unable to make much more than the minimum repayment after using their cards to this degree and will come to a point where they have maxed out their card and have massive debts to pay as well as still having to find a way to meet the cost of living.

One official said: “With inflation hitting 4.4 per cent last month, it’s not surprising that many families need to resort to using their credit cards for more and more living expenses. But we believe this does highlight just how important it is to keep on top of credit commitments overall.”

Tags: payments, credit, consumer debt levels, knock, Daily

OFT to look into credit card surcharges

Credit cards have undoubtedly made life easier for many people, enabling them to enjoy flexibility with their repayments, the security of not having to use cash, and the ability to make purchases with ease using the phone or the Internet. Many people use their credit and debit cards to make all sorts of purchases online these days, which means that they can enjoy the ease and convenience of browsing products and services from the comfort of their own homes, and making payments safely and securely on reputable websites.

However, one sting in the tail of using credit and debit cards to make payments online is that many retailers and companies charge administrative fees, and many of these are quite extortionate, pushing up the cost of the purchase enormously. Many cardholders have made a purchase only to realise at the last minute that they are going to be charged a hefty fee on top of the purchase price simply because they are using their credit or debit card.

An official from one travel site said: “Many travel providers are not only passing the bank charges to customers, they are actually increasing them to generate extra revenue. The fact that some holiday companies also charge for debit card payments is a worrying development.”

A super-complaint has been launched by the consumer campaign group Which? for the various surcharges and fees to be looked into. The Office of Fair Trading is now looking into these fees and could end up making companies reduce the fees that they charge by way of administration costs for credit and debit card use.

The UK Payment Association said: “The credit card costs are per transaction. If you are booking six tickets at once, or one ticket in one credit card booking, the processing costs would be the same. It’s hard to see how companies can charge per item.”

 

Tags: extortionate, sting in the tail, administration costs, online, purchase price, fee, consumer campaign group, various surcharges

Mixed feelings over store cards

When it comes to store cards there is a great deal of bad press, and these cards have earned a very bad reputation over the years, mainly because of the high rates of interest that they charge. Some store cards charge up to 30 percent APR, and this results in many people who make only the minimum repayment on their debt paying a fortune in interest and spending lengthy periods of time trying to clear their debt.

Many people are swayed into taking out a store card because retailers offer them incentives such as on the spot discounts for applying for and being accepted for a store card when they are shopping. This can tempt many people into taking out a card and getting into debt especially when the cards are promoted at times such as Christmas when people are looking for ways to fund their purchases.

However, some industry officials have said that although these cards do receive bad press and are slated for a number of reasons they can actually prove very useful for consumers. They can provide a convenient means of shopping, and like credit cards balanced can be paid off within interest free periods so that no interest is charged on the debt.

One consumer campaign group official said: ‘With APRs of around 30%, store cards are never good value for borrowing. Our investigation into the market found it was too easy to get hold of credit and that too many retailers were offering cards either without telling the customer that they’d be credit checked, or, worse still, without credit checking them at all. That’s not to mention the lack of privacy in reading out your personal details in a busy high street store.’

However, the Finance Leasing Association said: ‘There is no evidence of consumers being unable to manage their spending on cards. Customers are already able to change their mind about taking out a credit card. New EU regulation bought in February this year provides customers with an opportunity to change their mind within 14 days of taking out the card.’

Tags: high street store, free periods, campaign group, market, business

A third of cardholders hit by fraudsters

According to recent figures one third of cardholders have been hit by card fraud in the past five years. The figures show that around fifteen million Brits have fallen victim to card fraud over the past five years, which reflects a sharp increase on the figure eighteen months ago, where the number of cardholders hit by card fraud stood at 27 percent.

According to ACI Worldwide a greater number of Brits have been defrauded on their cards than in any other major country apart from China. However, despite this there was a greater level of consumer satisfaction amongst British consumers with regards to how banks dealt with their claims than there was in other countries.

Around 80 percent of customers said that they were satisfied with how their fraud case had been dealt with by their bank, and this compared to 75 percent in 2009. Around 40 percent of these said that the main reason for this high level of satisfaction was the speed at which they received their money back after falling victim to card fraud.

It is estimated that card fraud in the UK costs the economy around £30 billion a year, and with fraudsters using a range of sophisticated methods and hunting grounds to commit their crimes this is a figure that could easily increase.

David Divitt, from ACI Worldwide, said: ‘Fraud is constantly changing and, looking forward, the industry will need to increase focus on identifying identity theft and assisting victims to maintain this improvement in customer experience.’

However, the UK Cards Association has stated: ‘The most recent card fraud figures for the UK, which are based on actual losses and not on research, show that card fraud is falling – a 28% fall in 2009 and a further 20% fall in the first half of last year.’

Tags: money, focus, greater number, aci worldwide, satisfaction, GBP, show, increase

Consumers try to avoid High Street debt

In the current difficult climate there are many people that are looking for ways to cut back on their outgoings. For many this has meant cutting back on their spending and reducing their debt levels. His desperation to avoid debt was reflected in recent figures that showed there had been a drop in High Street store card borrowing and High Street finance for the month of November.

November is normally a busy time when it comes to spending on store cards and store finance, as many people are purchasing gifts for their loved ones for Christmas. Whilst in the past people may have signed up for store cards or taken out store finance to purchases these goods, a shift in attitude brought about by the challenging financial climate has resulted in fewer people spending on store cards or taking out store finance to make purchases.

Figures have shown that during the month of November last year the level of lending on store cards plummeted by 25 percent compared to the same period in the previous year. Just £202 was advanced on store cards during the month. Instore instalment finance levels also fell, with an 11 percent drop in the level of store finance compared to the same period a year earlier.

However, whilst store borrowing definitely took a big hit in the month of November there was an increase in the number of personal loans that were taken out by consumers. The figures were released by the Finance and Leasing Association, and showed that borrowing through personal loans increased by around 34 percent over the course of the month.

The report also showed that the largest source of advances was credit cards, which came as no surprise to most people. Whilst credit card lending for November remained was flat in November year in year it was still the source of £2.71 billion worth of lending.

Tags: christmas, drop, card, consumers, period, shift, Unsecured debt, financial climate

New rules set to come in for credit card companies

The start of 2011 will see new rules come into force for credit card providers, which will means that changes will have to be implemented with regards to minimum repayments on credit cards as well as on how repayments are allocated to the debt that is outstanding on credit cards.

It is thought that the changes that are brought in from this weekend coming will have a positive effect on millions of credit card users, as it means that they will pay off their credit card debt more quickly as a result of changes made to the minimum repayments, and also that they will save money on interest because card provider will have to allocate repayments to the most expensive debt first rather than the cheapest debt, as many do at present.

However, whilst the changes will come as good news for many consumers industry officials are warning that credit card firms could be sneaky in their tactics to try and recoup money. This could see some credit card firms hiking up interest rates to make more money from customers, and some may add on sneaky charges and fees.

The biggest change, and the one that will most benefit consumers, is the fact that credit card firms will have to allocate repayments to higher interest debt first before the cheaper debt. This could make a huge difference to the amount of interest that is paid by consumers.

One industry official said: “The new regulations and changes that have been brought in will be highly beneficial to credit card users, and could make a big difference to the amount of interest that they pay. However, it will also make credit card firms sit back and think about how they can make back their losses, so consumer need to remain vigilant.”

Tags: Money Management, repayments, consumer, Stoozing, Debt settlement, result, positive effect, The start

Credit card spending to soar this week

As Christmas Day fast approaches many people are rushing around trying to sort out their last minute Christmas shopping, and many will be doing this using their credit cards. Research has been carried out and the results indicate that many people will be spending on their credit cards this week in the run up to Christmas. The research was carried out by Sainsbury’s Finance.

Many people that have already done their Christmas shopping will have given their credit cards a good airing, but it appears that the consumer assault on credit cards is not over yet, as many are still hitting the shops brandishing their plastic as they rush around to try and get their last minute gifts or try and pick up a bargain in the last few shopping days before the big day.

Officials from Sainsbury’s Finance are now claiming that consumers will spend almost £2 billion on their credit cards in the week leading up to Christmas Day. In total around £6.7 billion is expected to be spent in the run up to Christmas, and just under one third of this will be on credit cards.

The big freeze that has been seen over the past couple of weeks has put people off from hitting the High Streets in the usual way, but has not put people off from shopping. Many will be getting their credit cards at the ready and getting online to order goods from the comfort and warmth of their own homes using their credit cards.

However, those that are planning to make purchases online in time for Christmas need to be conscious of the effect that the weather conditions are having on deliveries, which could result in some deliveries being delayed until after Christmas.

Tags: christmas, minute christmas, High Streets, finance, deliveries

Warning for women over store cards

Christmas is fast approaching and many High Street retailers will have geared up to try and get women to take out store cards when they go into the shop to buy an outfit for the festive season. Many women every year take out store cards, as shop sales staff make them sound enticing by offering customers money off their purchase right away.

Many of the popular High Street retailers have a big push on store cards at this time of the year, but these cards come with very high rates of interest, with some charging almost 30 percent interest. This means that a debt as small as £500 could take over a decade to repay if the cardholder only pays the minimum repayment each month, as the bulk of the repayment will be swallowed up in interest.

Store cards are said to be one of the most expensive forms of borrowing, but despite this there are around 12.9 million of them in circulation, with around £2.2 billion spent on them. The number of single women struggling to repay store card debt is three times higher than the number of single men, and women are now being urged to think twice before taking out and spending on a store card this year.

An official from the Citizen’s Advice Bureau said: ‘There is a problem with the way store cards are sold. Targeting young women at the till means customers are usually more focused on the discount for their purchase than the terms and conditions of the credit.’

Another finance industry official added: ‘Customers who repay only the minimum amount on store cards could end up paying twice the price and still be repaying the debt in a decade’s time. Do not touch store cards unless you can afford to pay off the balance in full every month.’

Tags: finance industry official, Debit card, advice, repayment, way, single men, sales, expensive forms

Android phones could replace credit cards

Many people use their credit cards and debit cards to pay for purchases when they go shopping, and this is partly because of the convenience and ease that this method of payment offers. However, according to officials from Google, smart phones with the next version of the Google Android Operating System could end up replacing credit cards as a method of payment in High street stores, coffee shops, and other retail establishments.

More and more people are opting for smart phones these days, and the next version of the Google Android smart phone Operating System called Gingerbread, is set to have a Tap and Pay feature on built into it. This feature will allow users to pay for things by simply tapping their smart phone against a specialist reader thus eliminating the need to use a credit card.

The technology was demonstrated recently in San Francisco by the CEO of Google, Eric Schmidt, who said that he was working on an unannounced device that would incorporate Near Field Communications (NFC) technology, which is the technology that makes Tap and Pay possible. The technology ensures that credit card details are passed securely between smart phone and reader when the two are tapped together. It is the same technology that is used in existing tap and pay cards that do not require a PIN or signature.

One official said that the uptake of tap and pay enabled smart phones might be slow to start with because people would be a little cautious about using the new technology, but he said that it would most likely pick up quickly.

He stated: “Adoption of NFC smartphones could be slow at first because some people will naturally be hesitant about this revolutionary new way of paying for everyday goods.”

Tags: enabled smart phones, likely pick, device, system, specialist reader, street, Technology, version

Older people likely to cut back on spending before younger consumers

It has been claimed that older people in the UK are more likely to curb their spending on things such as credit cards and current accounts than younger consumers. With many people struggling financially, and with rising living costs, increasing VAT levels, and rising unemployment levels likely to further affect spending power amongst consumers, cutting back has become a necessity for many people.

An official from Lovemoney.com claims that it is the older members of society that are likely to react to economic changes before younger ones, and older people are more likely to reduce their spending on credit cards and via their current accounts. Older people are also more likely to start putting money aside in savings than younger people.

Ed Bowsher, the official from Lovemoney.com, said that with interest rates still at a record low younger people are more likely to continue spending in the short to medium term and less likely to think about reining their spending in or trying to save any money. However, he said that older people would not have that ‘feel good’ factor.

Bowsher’s prediction comes after the publication of a recent report, which showed that since the start of the recession around 75 percent of consumers in Britain had altered their spending habits, with many having to make huge changes to their spending levels because of the financial strains that have come about from the recession and the global financial crisis.

However, many people have turned to credit cards and overdrafts in order to keep up with their financial commitment or continue with a particular lifestyle, and this has led to rising debt levels amongst households in the UK.

Tags: overdrafts, debt levels, United Kingdom, factor, necessity, particular lifestyle, power, consumer

Figures show fall in credit card fraud

Recent figures have shown that the level of credit card fraud seen in the UK during the first half of this year fell. In fact, according to recently released figures the level of fraud fell to its lowest level in ten years. Officials believe that a number of factors have contributed to the drop in credit card fraud levels.

During the first six months of this year the value of losses caused by credit card fraud came to around £186.8 million. Compared to the first six months of last year this reflected an impressive drop of 20 percent. According to the UK Cards Association the drop in credit card fraud is down to a number of security initiatives.

Amongst the security initiatives that were highlighted by the UK Cards Association as being partly responsible for the drop in credit card fraud was the increased rollout of updated chip cards across the UK as well as raising awareness amongst retailers over how they could increase protection against fraud on their chip and pin machines.

Cardholders and retailers are also said to be signing up more for security measures such as Verified by Visa and MasterCard SecureCode, which helps to protect cardholders from fraudulent activity.

Further good news was that the level of online fraud had fallen, with more people now aware of things such as phishing scams and protecting accounts more effectively in terms of passwords. Online banking fraud losses are said to have enjoyed an impressive 36 percent fall in the first six months of this year compared to the first six months of last year.

Melanie Johnson, Chair of The UK Cards Association, said: “These figures are testament to the importance that the UK’s card companies place on driving down card fraud losses and reducing any inconvenience to customers.”

Tags: security measures, UK Cards Association, Credit Cards, Visa, credit card fraud

Millions have a year or more of debt on their cards

It has been reported that millions of borrowers in the UK have outstanding credit card debts of a year or more, with many only managing minimum repayments on their debts in the current outstanding climate. According to the report more than six million people have had an outstanding balance on their credit cards for at least a year.

Research was carried out by moneysupermarket.com, and officials from the firm claim that almost 10 percent of people admitted to paying only the minimum amount off on their credit card debts each month. This has resulted in 14 percent of cardholders having debt on their credit cards for over five years, with the minimum repayments barely covering the interest on their debt.

Industry officials have warned that those paying off their debts with just the minimum repayment each month will not only spend years longer repaying the debt but will also pay a huge amount in interest over the term of the debt. However, in the current financial climate following the credit crisis and recession many cannot afford to pay any more than the minimum.

The average length of time that a balance is left outstanding on a credit card according to the survey results is twenty one months, and officials want to ensure that consumers understand the repayment structure and the consequences of minimum repayments.

An official from Moneysupermarket.com said: ‘Our research reveals credit cards are still playing an important role in the nation’s finances, but in the current climate, it’s more important than ever for consumers to understand the cheapest way to borrow on their cards and avoid getting stung by high interest rates. The most important thing is that consumers understand the implications of borrowing on a credit card and that paying back the minimum amount each month will dramatically increase the total amount they pay back in the long run.’

Tags: Credit Cards, credit, outstanding credit card, debt, Moneysupermarket.com, high interest rates, cheapest way

Credit card debts soaring amongst pensioners

It has been reported recently that credit card debt amongst pensioners has been soaring, with struggling pensioners sitting on £1.1 billion worth of credit card debt. Financial problems amongst many pensioners have increased as a result of soaring inflation coupled with minimal rates of interest being paid on their life savings.

Figures were released recently by Gfk NOP and showed that pensioners were no spending a fortune collectively on their credit cards each month, with pensioners’ credit card spending values rising by 20 percent since the start of this year. June saw pensioners spend an average of £354 each on their credit cards. The last time this level of spending was reached was at the height of the credit crunch in October 2008.

The total outstanding debt level for June amongst credit card pensioners was £1.1 billion, and this reflect an increase from £900 million from six months earlier. With many pensioners being hit with the rise in the cost of living coupled with the drop in savings interest rates many have had to turn to their credit cards to fund their essential spending, and this has seen the level of credit card debt rocket amongst older people. Many also have additional debts to deal with such as loans and finance, and a recent survey showed that one fifth of those aged fifty five and over still had a mortgage to pay off.

Joanna Parsley, a spokesperson for the consumer group Credit Action, said that older people were in a very vulnerable position, stating: ‘The growing indebtedness of older people is scary. We are talking about a generation who are particularly vulnerable as the income from their savings has been devastated.’

Tags: debt level, fifth, month, Credit Cards, Social Issues, finance

MBNA credit card can be activated online

The Internet has had a huge impact on the lives of most consumers, and being able to access goods and services online has improved convenience and ease for many people that prefer this channel to alternatives such as using the phone or having to go out to access various services.

It has now been revealed that credit card giant MBNA has tapped into the enthusiasm of consumers to be able to access services online wherever possible, and has taken action that will enable cardholders to activate their cards online, which will make things faster, easier, and more convenient for many people that have internet access.

This will be the first time that customers in UK and Ireland will have a choice of options when it comes to activating their MBNA credit cards even if they are new. Previously the cards could be activated online but only if they were replacement cards. However, this channel will now also be available to those that have new MBNA credit cards.

An official from the firm said that the majority of new accountholders actually applied for their credit cards online, and therefore it was only natural that these people would prefer to activate their cards online, access their accounts online, and manage their credit cards online.

Ian Craig, customer service and channel fulfilment executive for Bank of America Europe Card Services, said: “Our customers tell us they want more online options to service their accounts so it makes sense to open up online activation to everyone. The majority of our new accounts are applied for online; so, for many, it is the right channel to offer more. We’ve expanded the scope to activate our cards as it’s quite right that we offer them the freedom to service their account via their channel of choice.”

Tags: online activation, america, channel, online, accounts online, Credit Cards

Consumers can benefit from rewards based credit cards

One popular finance website has recently highlighted the benefits of rewards based credit cards, stating that many consumers could benefit from having these credit cards providing they use them properly. Officials from the site, Confused.com, said that in the current climate many people could benefit from effectively being able to get something for nothing.

With rewards based credit cards consumers are able to earn points, rewards, or cash back when they make purchases on the card, and there are various different rewards based credit cards to choose from offering a choice of different rewards. Some of the rewards available with these credit cards include air miles, points towards discounts, vouchers, and more, as well as cash back.

Those that use these credit cards need to ensure that they clear the balance in full each month otherwise the interest that they pay on their balance could by far outweigh the rewards that they earn for making purchases on the card. However, by repaying the balance in full each month no interest is charges and customers can effectively get something for nothing by earning their rewards.

The level of rewards offered on these cards can vary depending on the card and provider that you go through, and rewards can only be earned by making purchases on the card and not for cash transactions and withdrawals.

A Confused.com official said: “Using a reward based credit card can be a great way to earn incentives like cash back, flights and shopping vouchers.  Our findings show that it is still possible to get something for nothing and that savvy shoppers really can be rewarded for using a credit card, with incentives that all the family can benefit from.  Customers who are able to pay off their balance in full each month are likely to benefit the most from a reward card, otherwise the benefits could be outweighed by interest charges.  For customers who find it harder to do this, a zero percent purchase card may offer a more suitable and beneficial proposition.”

Tags: interest, Credit Cards, Credit card cashback, points, rewards

Rise in bank card fraud recorded

Britain’s fraud prevention agency, Cifas, has reported an increase in card fraud in the first three months of this year, with many cardholders finding themselves at the receiving end of identity theft. The agency claimed that it recorded around 27,000 victims of this type of fraud during the first quarter of the year, reflecting an increase of 6000 or 23 percent.

There has also been a 45 percent increase in the number of cases where the fraud has been highlighted when it too late and the fraudsters have already got away with the cash. Fraudsters are said to be using a range of tools and methods of getting hold of details of customers, including social networking sites such as Facebook in cases where consumers are careless with their personal information.

Consumer campaign group Which? said that many people were increasing the risk of becoming victims of card fraud by writing down their PIN because they cannot remember it. Some people have even given their PIN to other people that they feel they can trust, but this can also increase the risk of falling victim to this type of fraud.

In a poll nearly 10 percent of people that admitted to writing down their PIN said that they had a copy of it written down at their workplace. The campaign group said that if cardholders were found to have been careless with their PIN or personal details then there was no guarantee that they would be reimbursed if they fell victim to card fraud.

An official from Which? said: ‘The results show that too many consumers are putting their finances in jeopardy by not taking simple precautions. Writing down your Pin is like leaving your door open when you leave the house.’

Tags: credit card fraud, fraud, which, Cifas, identity theft

Consumers saving more and using credit cards less

Recent reports have shown that consumers are getting far savvier about their finances, with many now choosing to save money and shore up their finances rather than splashing the cash on large purchases or spending ruthlessly on their credit cards. This indicates that consumers have become more accustomed to the fact that they need to save money to help them through in the current climate and that they have to be more mindful about their spending.

Prior to the global credit crisis and the recession many of those that are now saving their money may not have thought twice about using the money to purchase big ticket items, splash out on luxuries, and spend on items that they didn’t really need. Likewise, many may not have given a second thought before going out armed with their credit card and treating themselves to pricey luxuries.

However, over the past couple of years many people have realised how important it is to have money put aside to help them through in the event of a financial emergency or if they lose their jobs. With this in mind more and more people are putting money aside and avoiding spending unnecessarily. According to reports a rising number of people are also trying to pay off their debt so that they can be more financially secure in the future.

A spokesperson from ING Direct, which released the report, said that many people were now trying to get over the debt that they accrued over the Christmas period and were focussing on saving or repaying their debt.

He said: “We are also seeing a trend, which is getting stronger and stronger, that people start saving before they make big purchases and use their credit cards less and less.”

Tags: finance, saving, credit, debt, spending

Credit card fraud increases

The flexibility and ease that credit cards provide have made them hugely popular amongst consumers in the UK, and many people now have one or more credit cards, which they use for making purchases on the High Street, by phone, and online. However, whilst these cards do offer the ultimate in freedom and flexibility they can also pose a danger if users are not vigilant.

Credit card users are being warned that they need to be more vigilant when using their credit cards and with their credit card information. This is because figures have shown that the level of credit card fraud has increased, with 6.4 percent of plastic cardholder falling victim to fraud in the past twelve months compared to 4.7 percent in the previous year.

The figures were released as part of the British Crime Survey, and the rising level of card fraud has made many people concerned about falling victim to this type of activity. In a survey 53 percent of cardholders said that they were concerned about becoming a victim of plastic card fraud.

With fraudsters now using a range of sophisticated methods to conduct this type of criminal activity, cardholders are being urged to be extra vigilant when using their credit and debit cards. It is also advisable for cardholders to check their statements carefully and also check copies of their credit reports in order to look out or any suspicious transactions.

One credit card holder stated: “I used to do a lot of shopping online with my credit card, and I’ve never been a victim of fraud. However, these days I often think twice about shopping in this way because the level of card crime in the UK really worries me. I think it is vital that shoppers are really careful when they use their cards.”

Tags: flexibility, fraud, credit card holder, range, Credit Cards, plastic

Cards set to replace cash transactions

According to recent reports less than half of all transactions will be made by cash in five years’ time. A report from the UK Payments Council has suggested that at the moment 80 percent of cash transactions were low value transactions that were for less than £10. The Payments Council said that cash was taking over as the main method of payment for transactions, whereas cash and cheque use had fallen into decline.

In years gone by those making purchases used cash and cheques to make payments, with only a small percentage having access to or wishing to use plastic cards. However, over the past decade this has changed, with a rising number of people having access to plastic cards and many preferring the convenience and ease of paying by card.

In addition to this the use of cheques has really declined over recent years, and many retailers have stopped accepting cheque payments altogether. In fact, the banking industry has confirmed that it is planning to phase out cheques altogether over the next eight years, but this is something that is being opposed by many pensioners who have become accustomed to using cheques.

Based on trends over the past few years the UK payments Council developed a report with predictions relating to how consumers will be spending in the future. The report predicts that by 2018 only one in every fifty workers will be paid in cash, whereas in 1999 this figure stood at one in eight.

An official from the Payments Council said: “Although cash will not disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending. The noughties have been the decade of the debit card. Especially since chip and pin, which has speeded up transactions, it has become socially acceptable to buy small items by card now too, for example in a sandwich shop or a pub.”

Tags: plastic, cards, cheque, Banking, finance

Holidaymakers could benefit from credit cards

Many holidaymakers in the UK that head off on holiday each year use credit cards to make payments for purchases, and one recent report has suggested that this could prove to be an ideal solution for holidaymakers. Read more

Tags: cheque, rate, consumers, recent report, Debit card, sums of money, britons, Credit card

Credit card borrowing increased in December

Figures that have been released recently have shown that for the month of December the level of credit card borrowing increased, leading to an increase in overall consumer borrowing. Read more

Tags: consumer debt, bank of england, sector, Value added tax, end, small increase, consumer spending, Credit card

Cash back cards set to become scarce

Over the years many consumers in the UK have taken advantage of cash back credit cards, and these are a type of reward credit card that enable consumers to earn a set level of cash back on every pound that they spend on the card on purchases. Read more

Tags: personal finance, Credit Cards, pound, figures 25 percent, United Kingdom

Supermarkets offering better deals on credit cards than banks

A recent report has claimed that on average supermarkets tend to offer better deals on credit cards these days than banks, which means that consumers can often get a great deal on a credit card simply by heading to their local supermarket rather than trawling through the websites of the various High Street banks. Read more

Tags: cash gifts, personal finance, Spencer, loyalty points, report, local supermarket

Credit card industry speaks out against government proposals

The credit card industry in the UK has spoken out against one of the measures that has been proposed by the government to try and curb some of the practices used by credit card companies. One of the measures that the government has proposed in order to reduce problems relates to the credit limits that credit card providers offer, and the aim of the government was to try and get credit card companies to reduce these limits. Read more

Tags: Credit history, interest rates, Stoozing, personal finance, UK Cards Association, Credit card

Many don’t realise costs of using prepaid cards

According to a recent report many low income consumers in some of the poorest areas of the country are having benefits paid onto prepaid cards, but fail to realise the high costs that can be involved in doing this. Concern has been expressed by officials from the Department for Work and Pensions over the lack of awareness amongst consumers when it comes to the charges involved in using prepaid cards for such purposes. Read more

Tags: Payment systems, Credit card, Stored-value card, prepaid credit cards, Prepaid

Credit card companies to start targeting high earners again

Whilst there has been something of a credit boom in the UK over the past decade, prior to this boom it was not unusual for credit card firms to focus only on wealthy, higher earners, leaving those on lower incomes out in the cold when it came to getting credit. In fact, seeing someone open a purse or wallet with a string of credit cards suggested that the person was well off and earned good money. Read more

Tags: Sandra Quinn, Debit card, Payment systems, interest rates, Credit history, PricewaterhouseCoopers

False sense of security for consumers being asked for minimum repayments on credit cards

Experts have recently expressed concern that many credit card customers may be getting lulled into a false sense of security as a result of credit card companies asking for very low minimum repayments on their credit card balances. Read more

Tags: credit, Credit card, debt, Stoozing, Lloyds Banking Group PLC, lloyds tsb

Nationwide pleased about BIS decision

The credit card industry in the UK has been at the centre of a major crackdown recently, with government officials and regulators looking at ways to make things fairer for the consumer when it comes to credit card repayments. Recent proposals from the government were put forward to the Department for Business Innovation and Skills, and amongst the various suggestions that were put forward was an important issue relating to the allocation of repayments. Read more

Tags: nationwide, order, various suggestions, building, Business Innovation, BIS, credit card repayments, credit card debt

Shoppers need to look around for best credit card deals

Consumers in the UK are being advised by industry experts to make sure that they shop around for the best credit card deals, as many credit card providers are now offering a range of perks and benefits that could see consumers getting far better value for money on their spending. Read more

Tags: credit card offers, credit card deals, vouchers, business, Christmas period, personal finance, industry experts, Credit Cards

Consumers should shop around for Christmas credit cards

With the festive season almost upon us once again many people will be looking around at credit card deals so that they have the credit that they need to make their purchases for Christmas. Read more

Tags: consumer, Daskaloff credit card rating system, repayment, Credit Cards, borrowing, purchases, festive season, christmas credit cards

Credit card charges could be increased by banks

Over the past eight months the base interest rate in the UK has remained at an all time low of just 0.5 percent, with the Bank of England announcing only last week that the base rate was to remain at this record low for yet another month. Read more

Tags: credit card charges, record, credit card fees, card borrowers, Credit Cards, write-off

Christmas shoppers may be too nervous to get bargains online

A recent report has highlighted how, whilst many of the best bargains for Christmas may be available via the Internet, many consumers may be too nervous to take advantage of these offers because they are too nervous to use their credit cards online for fear of becoming a victim of credit card fraud. Read more

Tags: internet shopping, Christmas shoppers, online credit card fraud, credit card fraud, shopping online, vetting, online, shopping

Avoid late payment fees on credit cards with direct debits

As most people know the fees and charges that credit card firms impose for late and missed repayments can quickly add up, costing a small fortune. Whilst credit card companies have had to cap these fees at a maximum £12 for the last few years they fees can amount to a tidy sum over time.

Given that many people make late repayments from time to time or even miss repayments altogether credit card companies are able to make a fortune from these fees.

Industry officials are now advising consumers to try and avoid paying these fees by ensuring that their payment is made every month and in time.

Whilst this is not always easy given the fast pace of life that many of us have to cope with there are ways to ensure that your payment is never missed or late, thus avoiding the hefty fees that can otherwise be applied to your account.

Consumers who set up a standing order or direct debit to have their credit card repayments made each month do not run the risk of missing repayments or making late payments, and therefore do not have to worry about being charged because of this.

Customers are advised to set up a payment for at least the minimum amount to come out, although those that pay in full each month can make arrangements for the full bill to be paid each month.

One consumer stated: “I used to miss credit card repayments on a regular basis, and because of this I used to spend a fortune in charges alone, which was a complete waste of money. However, not that I have made arrangements with my bank I know the money will go our automatically and in time, so I have no need to worry now.”

Tags: credit card late payments, Direct debit, late payment fees, standing, industry officials, fees, credit card charges

Card fraud goes down whilst banking fraud increases

Recently released figures have shown that whilst credit card fraud in the UK has been going down, which will come as a relief to the many cardholders that have been fearful about becoming victims of this sort of crime, the level of online banking fraud has been increasing. Read more

Tags: credit card fraud, losses, banking fraud, level, Credit card, pin technology

Store card customers to be penalised for being in credit

These days more and more people are wary of spending too much on credit, and this is why so many people have decided to cut back on spending on their credit and debit cards, which is a sensible decision given the mounting levels of personal debt in the UK. Read more

Tags: GBP, Credit Cards, mothercare, debts, house of fraser, end, plastic, store cards

Dormancy fees could affect customers trying not to use their credit cards

Whilst credit cards have certainly come in useful for many people in the current financial climate, overstretched finances and the threat of job losses has resulted in many consumers trying to avoid using their credit cards other than in dire emergencies, preferring instead to keep the card to one side and only use it if and when it is really needed. Read more

Tags: creditcard fees, credit card provider, consumers, thing, account, month, american express credit cards

Further limit reductions on credit cards could be in the pipeline

It has been claimed in a recent report that a growing number of credit card customers in the UK could see their credit limits reduced as credit card providers do their best to shore up their finances and claw back some revenue. Read more

Tags: result, mention, credit, credit card limits, interest

Dramatic fall in balance transfer card deals over recent years

Over recent years many consumers have benefited from using balance transfer credit cards, as these cards have allowed them to save money on their credit card debt interest. Read more

Tags: balance transfers, United Kingdom, balance transfer credit card, balance transfer credit cards, credit card balance transfers, period, interest, Business Finance

Cardholders should close old accounts

According to a recent report consumers in the UK need to take more care to close their old credit card accounts when they have disused cards that they no longer use. Read more

Tags: Credit Cards, Cardholders, close credit card accounts, dormant cards, MasterCard, credit card fraud, consumer, fraud

AMEX increases rates for late payers

Credit card giant American Express has recently announced that cardholders that make late repayments on their credit card, or those that miss repayments, will be penalised with higher interest rates. Read more

Tags: american express, payments, american express credit cards, interest rate, credit card charges, economics, Credit Cards, late payments

American Express encourages customers to spend more on cards

One major credit card provider has been encouraging its customers to spend more on their credit cards, according to a recent report. Despite the fact that there is a personal debt crisis in the UK card provider and financial giant American Express is said to be encouraging some of its platinum credit card holders to spend more than double their current spending by making changes to how they will qualify to claim cash back on their credit cards. Read more

Tags: giant american express, back scheme, Debit card, fact, addition

An early exit for cheque guarantee cards

It has been revealed that cheque guarantee cards in the UK are set to disappear from the system earlier than expected, with come customers from Abbey losing their cheque guarantee facility on debit cards from as early as next month. Read more

Tags: place, alternative measures, instance, finance, cheques, cheque guarantee cards, cheque cards, Payment Council

Ministers want BOGOFs to be scrapped

Over recent years many of the UK’s leading supermarkets have been launching special BOGOF – Buy One Get One Free – offers on a range of their products, from households goods to everyday grocery items. Read more

Tags: business, wake up call, buy one get one free, supermarket offers, bogof

Credit card rates will have to come down

In a recent report a leading consumer watchdog groups has said that credit card interest rates in the UK are going to have to come down. Read more

Tags: increase credit card rate, Credit Cards, year, interest rates, company

Some cardholders could spend more than a lifetime paying their credit card debt

Concerns have been expressed recently that some credit card holders who are customers of the credit card giant Barclaycard could end up spending more than their lifetime trying to repay their credit card balance, after the credit card company announced that it was planning to reduce the minimum level of repayment that it was asking from its customers each month. Read more

Tags: credit card debt, company, industry, bill, GBP

Government bans credit card cheques

The government has recently updated credit card regulations and put a ban on credit card cheques being sent out to consumers by credit card companies. Read more

Tags: card, credit card cheques, beginning, Revenue, cheque, industry officials, cash transaction

Egg charges monthly fee on new card

Internet financial giant Egg has recently announced that it will be charging a monthly fee of £1 on its new credit card, which is the Egg Money World Mastercard. Read more

Tags: mainstream products, Egg Money World, annual fees, Credit Cards, MasterCard, Electronic commerce

Card made available to allow children to shop via the Internet

A new card has been launched that could allow children aged just thirteen to make purchases via the Internet. Kids will be able to shop online as well as make cash withdrawals on the debit style card. Read more

Tags: make, new card, day, Automated teller machine, industry, Go card, natwest

Guide developed to help cardholders use cards effectively abroad

A new guide has been developed to help consumers learn more about using their credit cards abroad more effectively and sensibly. Read more

Tags: apacs, Credit Cards, new guide, The new guide, credit card fraud, credit cards abroad, year, fraud

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