How does your future retirement look?

Most of us look forward to a comfortable retirement when we eventually reach out golden years, and we all want to be able to spend time travelling and seeing the world, spend quality time with loved ones, and do the things that you simply cannot do when you have work related commitments. However, many of us tend not to bother thinking about how we will fund our retirement when we are in our twenties and thirties – after all, retirement seems such a long way off at that stage. But the years soon catch up with you, and many people may find that they are suddenly thundering towards retirement age with no real plan in place to fund a comfortable retirement. Read more

Tags: ability, Generations and Age Groups, older people, pensions, retirement, savings, long way, help

Credit unions offer more controlled borrowing

Credit unions can offer a more controlled borrowing system compared with other financial institution claims the Church of England.

The institution said that many financial organisations are in place to make money and although some are more sympathetic than others, the main goal is to make a profit.

However, credit unions supposedly differ as they allow consumers to borrow in line with their ability to save which creates sensible boundaries within the borrowing system.

“A credit union is not just there to make a profit; it’s there to serve people, to help people borrow money…its more controlled,” said a spokesperson.

If a credit union does make any profit out of lending, then “quite often” it will re-distribute this amongst it’s membership.

Recently the Church has set up the life and debt matters section on their website which it speaks on the rising problem of debt and financial strain.

It was launched at the beginning of the year and offers a “post Christmas debt check” and “three action steps” to better finances.

Tags: boundaries, ability, Website, life and debt, beginning, Business Finance, money, borrowing system

Barclays Freedom credit card encourages frivolous spending

Barclay’s Bank has run into trouble once again, following accusations that it is encouraging consumers to spend more than they can afford, thus adding to the already mounting debt levels in the UK.

This is due to the the Freedom credit card which has been launched by the bank. The card offers consumers credit limits of up to £25,000, with an interest rate of 14.9% on the balance and an option to transfer the balance to a 6.6% loan if the customer wishes to do this.

On the advertisement for the Freedom credit card it stated: ‘If I see something I want, I need to be able to act quickly and not have to wait to arrange finance, or be stuck with a high rate of interest.’

However, concerned industry professionals and campaigners state that this card simply encourages frivolous spending, and increases the risk of consumers ending up in unmanageable levels of debt because of the high credit limits and the ability to switch to a loan. The loan can be paid between 3 months and 7 years with a fixed monthly repayment.

Barclays is trailing the card through a well known price comparison site, but has not confirmed how long the trial will last. However, experts have been quick to point out that the card could just be another way for the bank to make huge amounts of interest on super high balances from customers, or to increase its loan business through customers running up high balances and then transferring them to a loan with Barclays.

Credit cards are already known to be a major contributor to debt levels in the UK, and a card that offers such high credit limits could add ot the debt problems relating to credit cards significantly according to some experts.

Tags: industry professionals, business, concerned industry professionals, consumers credit limits, ability, way, Credit card balance transfer, card

Stamp duty ‘puts off’ first time buyers

Bradford & Bingley says that stamp duty, a charge which many buyers must pay on top of the fee for their new home, is putting off first time buyers (FTBs).

Terming stamp duty a ’stealth tax’ and ‘wholly unfair’, the mortgage lender points out that 68 per cent of FTBs currently either have paid or will pay the duty.

Using the monthly figures from the Council of Mortgage Lenders also released today, Bradford & Bingley’s report highlighted the finding that 11 per cent of FTBs had to reduce their deposit in order to cover stamp duty.

Andy Wiggans, director of mortgages for Bradford & Bingley, said that the tax “is seriously hampering [FTBs'] ability to get a foothold on the property ladder.

“The average first time buyer now has to find over £1,000 to pay this tax, at a time when most are struggling to even fund a deposit.”

He also drew attention to the finding that 11 per cent of FTBs had their stamp duty paid for by their parents.

Tags: GBP, percentage, tax, Council, buyer, parents, ability