How many people will switch to save this year?

Many people will be hoping that this year is going to be a little more financially stable than last year, as many people experienced huge difficulties in 2010 due to the difficult financial climate and job losses. However, with the start of a fresh new year there will be a huge number of households that will be planning to try and trim their outgoings in order to stabilise their finances, and this will mean going through their finances carefully to try and make cutbacks.

Switching services and utilities has become increasingly easy for people over recent years, largely because of their ability to do this via the Internet from the comfort and privacy of their own homes. With such a wide choice of deals and providers available online many people have been able to save money on their utilities and services, and with increased access and improved knowledge on how to make the most of the Internet for saving money a rising number of consumers are now putting in the time to research and compare different services and provider rather than just putting up with what they have.

It has already been revealed in a recent survey that around a third of broadband users are planning to switch their broadband provider over the course of this year, with many planning to do so within the first few months of the year. Whilst cost will often play a large part in this decision many also base it on other factors such as customer service levels, billing, and quality of service.

It is not just broadband customers that are planning to take action when it comes to finding a better, cheaper, and more suitable service. As most people know the cost of energy usage has soared once again, and some of the big energy giants have increased their prices by more than others. This is certain to encourage a rising number of energy customers to take action and look around for a more affordable provider so that they do not end up paying a fortune for their gas and electricity usage.

For those that do want to make savings spending just a couple of hours online can make a big difference, as it could give you the chance to switch all sorts of services from utilities and broadband to insurance and financial services.

Tags: quality of service, Technology Internet, fresh, fortune, stabilise, number of households, action, months of the year

Consumers advised to focus on debts for New Year

Industry experts are advising consumers to focus on their debt issues once the New Year comes around in order to avoid having to spend another year struggling with their finances, particularly given that the economy and job situation is still very challenging and fragile. Many people will have been struggling with debt for some time, whereas others may accrue temporary debt over the Christmas period. Either way, experts are suggesting that they tackle their debt problems head on once 2011 hits.

For many people in debt it is all too easy to bury their heads in the sand and try and forget about their debts until they spiral out of control to the extent that action has to be taken either by the borrower or their creditors. Many people are using, or have already used, their credit cards to fund their purchases over the festive season this year, and this could lead to spiralling debt levels for many people.

Tackling debt can be difficult but officials believe that by kicking the New Year off in the way that they mean to go on consumers are able to tackle their debt issues more effectively by streamlining their finances and getting things into order. Some are advising consumers to go through their budget with a fine toothcomb and go through their income and outgoings to see where they can make cutbacks to save on the amount that they pay out each month and avoid further debt.

One official said: “Another option for consumers when the New Year comes around is to consider taking out a consolidation loan and wrapping all of their various debts into one lower interest one, as this could save them money and the hassle of dealing with different creditors.”

Tags: Business Finance, job situation, festive season, month, job

Watchdog makes pledge over bank charges

The UK consumer watchdog, the Office of Fair Trading, has recently promised the no matter what the outcome of the ongoing battle against the banks in relation to bank charges it will still continue to pursue these charges as unfair. Read more

Tags: bank charges, office of fair trading, overdraft charge claims, senior official, initial rulings, bank accounts, cheque, action

Savings rates continue to tumble

The base interest cuts that have been applied by the Bank of England over the past few months have been welcomed by many borrowers and industries, and for many homeowners and borrowers the base rate cuts have left them with far more money in their pocket each month as a result in a drop in repayments. Read more

Tags: building society, ISA, action, bank of england, account

Will you get through the recession?

With the recession underway in the UK many people are worried with regards to whether they will stay afloat financially. With living costs having rocketed over the past year, and the effects of the global credit crunch still affecting households, many people have been unable to put aside money in savings to try and get them through these difficult times, which is a fact that has caused grave concern amongst many. However, there are some tips and hints that could help you to get through this period. Read more

Tags: recession, price, staffing, tide, cheaper provider, while, action, best account

Discounts hit the High Streets in a bid to increase spending

Officials have said that consumers in the UK can look forward to a season of huge discounts as Christmas approaches, with many High Street retailers slashing the cost of goods by huge amounts in a bid to increase spending levels and try and boost profits. This comes at a time when many consumers are having to tighten their belts when it comes to spending, even through the Christmas period, in order to escape overstretching themselves financially. Read more

Tags: bargain basement, Christmas spending, order, bank of england, discounts, retail supplier, High Street retailers, action

Pay and bills could further affect consumer finances

The Governor of the Bank of England, Mervyn King, has recently warned consumers that their financial situations could become increasingly strained due to rising bills and below inflation pay rises. With inflation levels soaring and the cost of energy, food, and petrol continuing to rise many households could find themselves running into severe financial problems towards the end of the year, especially with wages set to rise at levels below inflation. Read more

Tags: think, pay, action, challenging year, wage increases, bank, inflation levels, Monetary Policy Committee

UreLife promotes “earn before you spend” mentality

Consumers should be careful with their finances and manage their money sensibly during the current credit crisis, advises UreLife.

The Urelife card, which combines prepay Visa debit with proof of age and a colour photo of the cardholder, encourages an “earn before you spend” mentality, according to Mark Dalton, a spokesperson for the company.

Since the market is moving away from credit facilities, consumers should be looking to set a monthly budget which they do not exceed.

“Increasingly, people have been maxing out their credit cards and the prepay debit card is the ideal product for people who want to take full responsibility for their finances,” Mr Dalton comments.

Credit Action recently said that although credit card spending is still a “very popular” form of borrowing, the growth rate has slowed over the past year.

This is partly due to banks tightening their lending criteria, however it also suggested that consumers are becoming more aware of the importance of managing their finances in a sensible way.

Tags: age, credit facilities, Debit cards, borrowing, money, action

Graduates ’shouldn’t have any trouble getting credit’ despite economic turmoil

Despite tighter lending conditions created by the global credit crunch, graduates should not have any trouble in getting credit, one financial expert has claimed.

Moneyfacts said that lenders consider different factors when dealing with graduates as they are viewed as customers worth attracting despite the debt they will have taken on at university.

Because of this, graduates typically enjoy low rates and high borrowing on their loans, which is unlikely to change this year, she advised.

Samantha Owens, head of credit cards and loans at Moneyfacts, said: “We don’t see any market contraction for graduates, and they shouldn’t be concerned about ridiculously high rates, or trouble getting any credit.”

She added that as a graduate is seen as a “good prospect in the long run”, these accounts are to remain static.

According to debt charity Credit Action, average graduate debt in the UK has dropped for the first time in six years.

Graduates who leave university with debt now owe on average £12,363, a decrease of £889 (six per cent) on 2006.

Tags: prospect, trouble, graduate, financial expert, cent, action, average graduate debt

More financial education needed says CCCS

Britons need to be better educated on their financial management, an expert has warned.

According to Consumer Credit Counselling Service (CCCS) spokesperson James Ketchell, many people lack sufficient knowledge when it comes to using credit and assessing whether they can afford it.

Commenting that there needs to be more financial education among young people, he highlighted the difference between managing credit in comparison to a student loan, which provides cheap credit and is automatically deducted out of a borrower’s wage packet.

Mr Ketchell said that it is currently very easy for people in employment to be offered to take on more credit, adding: ” As prices have gone up and wages have stagnated and mortgages have gone up, people have to use a bit more common sense in their financial dealings.”

His warnings come after Credit Action recently stated its assertion that young people in Britain, amidst rising figures of debt saddled by today’s graduates, have been “educated into debt but not about debt”.

Tags: difference, wages, Knowledge, personal finance, action, Britain, borrower's wage packet, packet

Credit card balance transfer fees rise

The cost of transferring balances across credit cards has been steadily rising in the past year, research from MoneyExpert.com has found.

Since being forced by the Office of Fair Trading to cut their charges, credit card providers have raised transfer fees from on average half a per cent to 2.67 per cent.

This tactic has been seen by some as a strategy to earn back some of the money the credit card providers lost when they were forced to cut their charges.

Sean Gardner, chief executive of MoneyExpert.com, said: “What goes down must go up seems to be the experience in the credit card industry.

“Card firms have lost out since they were forced to cut so-called default charges so now customers are losing out as balance transfer fees increase.”

However, though balance transfers are increasing, consumers should still be on the look out for better rates and be willing to switch, Mr Gardner said.

Meanwhile, the overall amount of personal debt in the UK now exceeds one trillion pounds, according to the debt organisation Credit Action.

Tags: Credit Action, past year, credit, default, amount

ABI survey urges insurers to “come clean” on customer comments

An independent panel has urged insurers to give “warts and all” accounts of their performance, as they publish results from Britain’s first nationwide insurers’ survey.

Run by the Association of British Insurers (ABI), the Customer Impact study – currently in its first year – asked 18,000 insurance holders to rate their provider on products, sales and service.

Many major insurers have already published their first reports on how customers have rated them.

The Consumer Impact Panel, however, has expressed concern as to whether results have been especially selected to cast the insurer in as favourable a light as possible.

Chairman of the panel, former Scottish Widows boss Mike Ross, said: “Firms should present a balanced assessment of what customers think, with no cherry picking and should have a comparison of their performance against the industry average.

“Companies should be honest about their areas of weakness and show what action they are taking to address these weaknesses.”

Tags: consumer, mike ross, insurer, service.Many major insurers, economics, finance, widows boss mike

Take action against anti-social behaviour

Britons are being encouraged to take measures to counter the threat of anti-social behaviour in communities around the country.

Research by insurer Zurich estimates that £1 billion of damage has been caused to properties and possessions in the last five years, with 30 million adults having been affected by such incidents.

The study reveals that a fifth of respondents have reported cases of graffiti on their properties.

Over one in ten Britons also note that front doors or walls have been vandalised, with abandoned cars also being identified as problematic.

Zurich says that two-fifths of people say they feel powerless at the hands of vandals, while over a quarter say it has impacted upon their quality of life.

Martin Hall, head of personal lines underwriting at Zurich Insurance, said: “To help minimise the impact of anti-social behaviour, we believe there are some simple changes that homeowners can make to reduce the chances of falling victim to vandals.”

Installing an effective home and car alarm system might be a good idea as well as making sure garden gates and shed doors are securely locked.

Tags: action, damage, fifth, Martin Hall, Financial Services Authority, 1 billion, threat

Debt considered acceptable because of student loans

According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable.

According to the financial education charity Credit Action student loans have become such a norm that being in debt has become something of a fact of life. And according to officials from Credit Action these student loans have nothing to do with a need for money, but more to do with the easy access to student loans.

One official from Credit Action described student loans as ‘government endorsed debt on a massive scale’. Of course, students can find themselves in need of financial aid at some point during their education, but the easy access to student loans has resulted in many students just taking out loans for the sake of it rather than through real need, placing them on a downward debt spiral that could lead to problems later in life.

According to Chris Tapp from Credit Action there is not enough caution exercised with student loans, and the easy access to this type of finance has made debt appear to be acceptable even for the younger generation. With consumers levels in the UK at sky high levels this has raised concern amongst some charities and campaign groups, as those in their late teens and early twenties begin a debt ridden life before they have even completed their education.

According to Mr Tapp student loans enable students to live lifestyles that are beyond their means – something that they then become used to, and something that many have to continue funding through further finance, as their initial jobs after leaving college or university is unlikely to be a high paying one.

Tom Smith
17th June 2007

Tags: cash, debt, action, credit, Loans, rate, cheap, money, student

How to increase property value

Homeowners are wasting money by updating the wrong parts of their homes before making a sell.

That is according to research by GE Home Money Lending which says the majority of us wrongly believe that upgrading out kitchen will increase the value of our house.

The kitchen is followed by the bathroom and general redecoration in terms of what homeowners see as adding value to a property.

However, estate agents could not disagree more, with an upgraded kitchen being ranked as the fourth most recommended course of action.

A new bathroom was only ranked seventh, while general redecoration was put in the top eight.

Carrying out jobs such as a loft conversion, a new extension and building a conservatory were the most highly recommended by estate agents, who said that these jobs would add a lot of value to a property.

“At a time of year when many are planning to improve the value and desirability of their homes, it is important that consumers appreciate and establish DIY and renovation tasks which will add the most equity to their particular home,” commented Giacomo Gigantiello from GE Money Home Lending.

“In many cases homeowners automatically opt for a new kitchen or bathroom. Whilst these are valuable additions to any home, the findings from this research show that it is also important to consider improvements that will ultimately increase a property’s living area.”

Tags: action, Business Finance, property value, renovation tasks, estate agents, diy, action.A new bathroom, new extension

Banks extend credit card cash advance charges

Customers are being urged to be as savvy as possible when using their credit card, with many providers believed to have extended the remit of cash advances.

Such an action could be tough on consumers, with the interest rate on purchases such as gift vouchers and online betting often being double that of usual cash transactions.

Nick White, director of financial services at price comparison site uSwitch, has described the way in which cardholders are being “bamboozled” by the banks’ tactics.

“They don’t know whether they will be charged at the much higher cash withdrawal rates on a whole raft of credit card transactions unless they scour the small print in their terms and conditions,” he told This is Money.

The measures are believed to have been implemented by many financial providers to recoup finances as a result of an Office of Fair Trading decision last year, which compelled banks to cap penalty fees at £12.

According to the Association for Payment Clearing Services, cash withdrawals on credit cards in the UK totalled £8.22 billion last year.

Tags: action, Financial services, advance, Credit card, Association, uswitch, penalty, Clearing