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: recent report, cheque, rate, consumers, sums of money

Drivers ‘failing to check cover for Europe’

More than 4.3 million Britons plan to drive their vehicles to Europe this summer but many fail to inform their insurer, a report has revealed.

Research published by car insurance supplier Sheila’s Wheels shows almost half of motorists now take their cars when holidaying in Europe, rather than choosing to catch an aeroplane.

Furthermore, 15 per cent of drivers admit simply assuming they are covered for driving overseas and would take their cars to Europe without checking.

It discovered that 18 per cent of people would check their documents before taking their cars abroad and only ten per cent would phone their insurance providers to check their cover was valid.

Jacky Brown at Sheila’s Wheels car insurance said: “When planning to take a car to Europe, it is crucial for motorists to call their insurer and tell them that they want to extend their level of cover for driving abroad.”

Sainsbury’s Bank also published research this week suggesting that 17 per cent of people plan to take their motors abroad during the next year.

Tags: Automobile, britons, published research, Insurance, checking, europe, plan, planning

Online banking ‘improves personal finance’

Eight out of ten consumers who regularly use online banking say it makes them better at managing their finances, according to research.

The survey from internet bank cahoot has found that 38 million Britons have used online banking.

People now spend more time conducting their financial affairs online than they spend on internet social networking sites, the study suggests.

Matthew Timms, cahoot’s managing director, said the credit crunch is making Britons take greater control of their finances.

He commented: “We’re flocking to internet banking, where we can instantly access and manage our finances at a time and location of our choice as well as pick up some of the best rates on the market.”

Last week, separate research suggested that one in five British men believes he is “careful” with his money.

In the survey, commissioned by Scottish Widows, more men said they identified with thrifty businessman Ian Beale from EastEnders than with any other soap character.

Tags: business, Grupo Santander, investment, britons, bank

1 in 10 clueless about their debt

Britain is a nation “in the dark” about its finances, a new report has suggested.

A report published by CreditExpert has revealed that just one in four people can accurately say how much they have left to repay on their loans.

Furthermore, one in ten people are unsure as to their actually level of debt, the study revealed.

The research also highlighted that many Britons are not confident about applying for loans, with more than one in five believing they would be refused credit of £1,000.

Furthermore, four out of ten would not expect to be authorised to borrow £10,000 and 66 per cent of people believe they could not take out a loan of £30,000.

The research follows a further recent study, conducted by Alliance & Leicester which showed that Britons are trying to cut back on their spending and save money in order to improve their financial health as the cost of living rises.

Tags: alliance & leicester, CreditExpert, recent study, order, britons, debt, loan, research

Singles ’spending more than couples’

Singletons are flashing more cash than those in relationships, a new study has revealed.

Research conducted by Legal & General has shown that six per cent more Britons managed to make some savings during April than was the case in the same month 2007.

However, six out of ten of the people still in the mood to spend their hard-earned cash on entertainment and fun are single, which Legal & General suggests is not surprising.

Julia Clayworth, the organisation’s wealth management head of marketing, commented that the findings show it is not “all gloom and doom” for Britons.

“It is reassuring that people’s saving habits are gradually changing despite the reported economic downturn and that they are still managing to have some fun as well,” she added.

A recent study by egg warned that just half of all workers in the UK could manage for four months on their existing savings, despite this being the average length of time people are out of work following redundancy.

Tags: Relationships, britons, Legal & General, April, General, surprising.julia clayworth, average length

Housewives ‘need life insurance too’

Housewives are equally as likely to need life insurance as men, a report claims.

Industry experts have said that the insurance needed for a housewife can be estimated by compiling the costs incurred through her absence, according to the Economic Times.

Debashis Sarkar, director of marketing at Max New York Life Insurance, told the newspaper: “Life insurance is all about replacement of financial loss on the death or disability of an individual, so that the life can go on as earlier in financial terms.

“Housewives may not be working but they do take up multiple responsibilities that can be translated into financial value.”

The Economic Times claims that nearly 60 per cent of married women are spending all their time attending to mothering duties and housework, but many assume that by being in the house, they are not putting themselves at risk.

Legal and General recently released research revealing that more Britons insure their possessions than their own life.

While 66 per cent of those asked in a survey said they had house insurance, just 44 per cent had taken out life cover.

Tags: Max New York Life, financial terms, term life insurance, value."the economic times, New York Life Insurance Company, Debashis Sarkar

Wrong insurance costs Brits £750 million

Having the wrong insurance cost Britons £750 million in the last year, according to new research.

The figure is the sum total of the value of claims people who had lost cars, holidays and other possessions which they thought were insured, but which turned out not to be covered by their policies.

One million people had claims rejected, with an average value of £736, the research from Tesco Personal Finance found.

The company also found that 55 per cent of insurance buyers only skim read the terms of their policies.

Peter Dingle, managing director at TescoCompare.com, said: “It is worrying that so many of us have made mistakes in the past twelve months. With the pace of modern life, many perhaps simply do not have the time to make sure they understand what they are buying.”

Mr Dingle’s comments are borne out by other findings in the research.

Four and a half million shoppers were found to have bought an item of clothing in the last 12 months only to find out later that it was dry-clean only.

Tags: 12 months, cost, research, Financial economics, life, britons, Brits, possessions

Credit card holders ‘wasting money’ on withdrawals

Consumers in the UK who use their credit cards in order to make cash withdrawals could find they are paying way over the odds in order to do so.

According to research from Moneysupermarket, Britons withdraw £8.3 billion using their credit cards annually – but they could be paying 27p per pound in interest and charges over the year.

The average amount paid across the major providers on one £20 withdrawal a month over the course of 12 months is 15 per cent, or £36.

“At a cost of up to 27p for every pound taken out, this is an exceptionally expensive way to spend,” said the price comparison site’s head of credit cards Rob Kenley.

“Wherever possible you should only withdraw cash from your current account, but we realise sometimes people face unexpected emergencies.”

A separate study from Abbey found recently that 23 per cent of credit card holders intend to consolidate different credit cards using one that offers a good value deal.

Tags: britons, cent, card, 12 months, wasting, moneysupermarket, unexpected emergencies, wasting money

Bedroom most insurable area of the home

As new research reveals that Britons consider the bedroom the most important room in the home, experts have urged consumers to ensure their contents are properly insured.

Figures from a recent Abbey study claim that 25 per cent of domestic residents think that the bedroom is the most crucial room in the house.

And with the average bedroom containing £4,000 worth of goods, it has been argued, that the need for full cover has never been greater.

Prasad Shastri, head of insurance marketing at Abbey, said: “We spend almost one-third of our lives in our bedrooms so it makes sense that Britons are prepared to fork out to create a comfortable and relaxing space.

“Sometimes it is hard to gauge the replacement cost of the contents you have in the home, but if you think carefully about every item it quickly adds up.

“One of the simplest ways to help avoid under-insurance is to make sure that your policy has an unlimited sum insured.”

According to the research 1.26 million people claim that the bedroom contents is worth more than £10,000.

Tags: britons, replacement cost, simplest ways, Financial economics, Shastri, new research, need, head of insurance marketing

Car owners leaving ‘paradise’ on display

One in five British drivers are leaving their cars unattended with valuables on display worth more than £200, it has emerged.

Zurich research has discovered that 85 per cent of car owners are leaving belongings in their cars with an average value of £145, representing a total of £3.9 billion worth of gadgets on display to potential thieves.

The study also found that younger drivers between 18 and 24 years old are the worst offenders for leaving their possessions visible to thieves, while popular items left include car stereos, polling 51 per cent, and CD collections, which were left by 44 per cent of drivers.

With many Britons not taking adequate precautions to protect their vehicles from thieves with 18 per cent of having no security measures in place, Zurich has commented that UK cars are a “thief’s paradise”.

“Harried, time-poor drivers often fail to realise just how valuable the possessions they leave in their cars are and are not taking the right precautions,” Zurich Insurance head of motor underwriting Roy Seeds said.

A Direct Line spokesperson has recently advised younger drivers that taking part in the government’s Pass Plus training initiative, at a cost of about £100, could help to reduce the cost of their insurance premium by up to 35 per cent.

Tags: potential thieves, Business Finance, britons, premium, security, poor drivers, uk, value

Customer service top for bank customers

Consumers rate good customer service as the most important requirement for their current account, according to a new study.

Research carried out by Defaqto found that a third of account-holders think customer care is key to their satisfaction, more so than being free when in credit and a good interest rate.

“The research findings send a clear message to the banks that what customers really want is a high quality of service,” David Black from Defaqto said.

“This suggests that good service has a value that exceeds the monetary advantages of having an account which is free to operate or which pays a good rate of interest.”

Other factors that respondents cited as important were benefits like insurance and low penalty fees.

A separate report from Alliance & Leicester revealed that while 3.4 million Britons regard money as their biggest concern, 45 per cent of bank customers have never switched.

Tags: Financial services, britons, biggest concern, rate."The research findings, new study.Research, account-holders think customer, concern

UK in debt denial

Some four million people are considered ‘overindebted’, but the majority are in denial about their finances and therefore do not seek advice assistance.

A survey conducted by debt management firm Chiltern found that one in 16 Britons spends over a quarter of their income on repaying debt but just one in 45 admit to struggling financially.
“There are lots of people who are officially overindebted, but two-thirds of them don’t think they have a problem,” said Joanne Gill from Chiltern.

“Unfortunately debts don’t go away, they need to be repaid and ignoring them will just make the situation worse. Anyone who is paying a quarter of their income to service unsecured debts should get help to put those repayments on a sustainable footing before the situation gets worse.”

The research found that people aged between 35 and 44 were the most heavily in debt, with East Anglia proving to be the most indebted region.

Whether they admit it or not, it seems that money is still on the brain for many people in the UK. A recent study from Alliance & Leicester revealed that 3.4 million Britons consider money to be the biggest concern in life, with 18 per cent worrying about it every day.

Tags: majority, income, debt, Chiltern, britons, survey

Brits are fretting about their finances

People in the UK are deeply concerned about their finances, a new study has shown.

Research from Alliance & Leicester indicates that 3.4 million Britons consider their finances to be their biggest worry – with 18 per cent fretting about cash on a daily basis.

Despite this, around half of those questioned admitted that they had not thought about whether changing their bank would provide them with a better deal.

Perhaps unsurprisingly, the study revealed that Brits tend to worry more about their cash at certain times of the year. Half said Christmas was a stressful time financially and 40 per cent admitted to thinking about their finances before a holiday.

“Money is obviously a topic at the forefront of most people’s minds,” explained Andy Bayes, head of current accounts at Alliance & Leicester.

“Regardless of whether money worries stem from managing day to day finances or finding the money in the run up to special times of the year, it’s crucial people check that their bank account is working hard for them.

“Considering the time people spend worrying about money, and the lengths some will go to find more, it’s surprising to see that so many customers still remain faithful to the same bank they have been with for years, which pays very little in credit interest.”

Research from Lloyds TSB indicates that 36 per cent of people from the UK plan to sort their finances out this autumn.

Tags: biggest worry, half, christmas, plan, britons, credit interest

“Rain drain” takes affect as Brits move abroad

The number of Britons keen to buy homes abroad has doubled in the past year, it was claimed today.

According to figures released by Barclays Buying Abroad, the “rain drain” caused by the cold, wet summer has been a major factor in the rise, along with the usual suspects of long work hours, rising UK house prices and the high crime rate.

Enquiries to the service – which helps fed-up Brits to relocate – have risen to 18,000 from 9,000 in the equivalent period last year.

Director of Barclays Buying Abroad Richard Exton said: “Brits are familiar with the idea that we only have two seasons: the winter and July.

“It seems that this year, with the terrible weather we have experienced in July and throughout the summer many people are not prepared to sit through a year-long winter and are looking for a getaway to sunnier climates.”

This summer’s rainfall has been the highest since records began almost 250 years ago.

Widespread flooding hit southern England in June and July and has cost approximately £2.5 billion in claims, according to recent figures from the Association of British Insurers.

Tags: britons, Barclays Buying Abroad Richard Exton, past year, June, YouTube, rain, long winter, Widespread

Eight million Britons have five-figure debts

Britain’s debt crisis is worsening, new figures released today show.

According to debt consultancy firm Thomas Charles, eight million Britons – one fifth of the entire adult population – hold debts of over £10,000.

The firm largely blamed heavily advertised store cards and credit cards for the growth of the problem.

Director of Thomas Charles, James Falla, said that the figures show a “sharp increase” in debt holders over the last year.

“These high levels of debt are linked to the rise in interest rates over the year”, he added.

The Bank of England’s monetary policy committee has also announced today that it will not be increasing interest rates for August.

Rates had been raised five times in the previous twelve months to 5.75 per cent, putting the squeeze still further on indebted Britons.

The chief economist at the Institute of Directors, Graeme Leach, termed the decision “a pause for thought”, and said that a further rate rise to six per cent would likely come in the autumn.

Tags: cent, Britain, britons, interest, fifth

Savings gulf opens up in UK

New research from Alliance & Leicester, released today, shows that Britons hold six times more in savings and investments than they do in debt.

Property was totted up as being worth £4.3 trillion, savings at £820 billion, with other assets including pensions totalling £1.8 trillion. Total borrowings came to £1.3 trillion.

This impressive ratio – gleaned from figures from the Bank of England, the Council of Mortgage Lenders and the government by the pollster YouGov – hides a financial gulf splitting the populace.

While richer households enjoy the property boom and the strong economy, lower income households are saving less as belts are tightened.

Evidence for this is found in savings figures: while the national average comes to £31,300, almost one third of households have no savings at all – pointing to a big split between the “haves” and the “have nots”.

Alliance and Leicester pointed out a general decrease in savings, with the bank’s head of savings and investments Ewan Edwards pointing out that on average just 2.1 per cent of disposable income is currently saved by Britons, when the figure averages out at 6 per cent over the last decade.

“Britons are increasingly losing the savings habit”, he concluded.

Tags: income, split, Council, bank of england, splitting, britons, belts, council of mortgage lenders

Base rate set to increase to 5.75 per cent?

The Bank of England’s monetary policy committee may be tempted to increase the base rate to 5.75 per cent at this week’s monthly meeting on Thursday, many commentators believe.

Howard Archer, chief economist at the Global Insight consultancy, claims that the committee will experience a “very tight vote again”.

At last month’s meeting, the governor of the Bank of England Mervyn King’s desire to increase rates for a fifth time since August 2006 was blocked by MPC members for the first time since the bank gained independence ten years ago.

Mr Archer said that only one of the five who voted to hold rates at 5.50 per cent last month would have to change their vote to effect a rate rise.

Last month, Mr King said that Britons should expect a further interest rate increase to cope with an over-heating economy and increasing inflationary pressures.

Despite UK inflation falling to 2.5 per cent in May, this was still some way below the government’s two per cent target.

Tags: bank, time, inflationary pressures, month, mr archer

Customers should enjoy ‘positive payments’ order

Nationwide is calling for credit card customers to enjoy a positive order of payments.

Research carried out by the group indicates that over two-thirds of consumers do not know which order their payments are allocated to their account.

Almost a fifth believe that the longest outstanding debt is paid off first, while over one in ten believe that that the highest interest items are paid off first.

Nationwide claims that less than a third of Britons know how their repayments are allocated; that is, with the lowest interest items being paid off first.

Although the group has welcomed government action which mean that from October next year all credit card providers will have to draw attention to the order of payments they use, it worries that the practice is not well understood by consumers.

Nationwide is calling upon the industry to make changes now and to treat their credit card customers fairly by adopting a positive approach to their order of payments.

Tags: Financial services, attention, Electronic commerce, interest, government action, britons, positive order, order

British savers are ‘fantasists’

Millions of Brits are failing to plan their banking properly and this could lead to problems in the future.

National Savings & Investments (NS&I) has slammed 33 per cent of Britons as financial fantasists.

Its research shows that many of us are expecting to see our wages increase or are hoping for an inheritance windfall to help us out.

The NS&I Quarterly Savings Survey showed that 24 per cent expect to see their wages increase, five per cent think they will be able to borrow whatever money they need and four per cent are hoping to receive some inheritance.

However, 55 per cent say that they do not have a financial plan in place and NS&I points out that it is folly to wait in hope for financial changes that may never arrive.

“It’s a real concern that such a high percentage of people haven’t made a financial plan for their future and even more worrying that a significant number are basing their financial security on their future earnings potential,” said Dax Harkins, senior savings strategist at NS&I.

“There’s never any guarantee that people will earn more as they get older so it’s really important that people start their financial planning and start saving as early as possible.”

Women are less likely than men to have a financial plan for the future in place.

Tags: NS&I Quarterly Savings, NS&I points, harkins, National Savings & Investments, britons, plan, business

Over one fifth of Brits do not save

Over twenty percent of Brits do not put aside any money in the form of savings according to a recent report. Research has shown that twenty one percent of Brits fail to put aside any money in savings.

The savings survey was carried out by Nationwide in a bid to try and determine how best to tempt consumers into opening and running a savings account. The survey also showed other facts and figures relating to Brits and the way that they save – if at all.

According to the survey, over one in five Brits saved nothing at all. However, the results also showed that thirty five percent of Brits do save money on a regular basis. In addition to this the survey revealed that nearly forty five percent of Brits tended to save on an ‘as and when’ basis, putting money aside into savings whenever they had some spare but otherwise using it for day to day cost of living.

Seventy seven percent of those interviewed as part of the survey stated that their most important consideration when it came to a savings account was a good, long term interest rate. Eight four percent also stated that the account needed to allow withdrawals without any form of penalty being imposed. Nearly sixty percent stated that they would only open a savings account with a well known provider.

Shockingly, the survey also showed that some people still use the most primitive methods of trying to save money, such as stashing their cash in various places around the home – including under the mattress. Those interested in savings accounts are advised to shop around and find an account that offers a good interest rate that reflects the rising interest rate in the UK.

Tom Smith
26th May 2007

Tags: bank, accounts, britons, uk, income, earn, interest, money, spend, cash

Dry weather causing subsidence threat

Climate change could have an effect on the number of home insurance claims made in Britain.

New research shows that the 80 per cent of garden centres in the country have seen an increase in people enquiring about subsidence of their property in the last year.

This is thought to be down to the hot weather which has led to soil drying out and tree roots moving to find water, leading to the ground beneath properties being destabilised.

“Last year’s water restrictions highlighted the threatening conditions for subsidence,” said Neil Curling from Halifax Home Insurance.

“With Britain having already experienced unprecedented high temperatures in 2007 and an extremely dry April, we are concerned that increasing numbers of properties could be affected and are urging householders to be vigilant to this threat.”

The Met Office is predicting above average temperatures for the summer ahead, which will only exacerbate the problem, but homeowners’ habits could also be having an effect.

Around 76 per cent of garden centre managers say that demand for exotic plants and trees has increased in the last 12 months but Halifax is warning buyers to do their research first.

“Green-fingered Britons planting new exotic species, should carefully research the impact they could have on their garden and their home,” continued Mr Curling.

“Britons may be unaware of the appropriate distance to plant an exotic species away from their property to ensure the tree or shrub’s root system does not cause subsidence later down the line as the roots take water out of the soil.”

Halifax says that something as simple as trimming a tree or shrub can keep protect a property from subsidence.

Tags: ground beneath properties, High-pressure area, number, office, Britain, Mr Curling

Brits: Debt below £15k is not a concern

Millions of Britons are unconcerned by their growing levels of debt despite recent interest rate rises.

According to the Personal Credit Index survey from CreditExpert.co.uk, six million people would remain unconcerned about their debts if they stayed below £15,000.

That figure does not include mortgages and a further 1.4 million Britons would be happy to rack up £50,000 in debt before becoming concerned.

This is all adds up to a growing level of confidence among Brits, with Experian, the firm behind CreditExpert and the survey, saying that consumer confidence is currently at an annual high.

“The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight but the credit-comfy generation seems to have become anaesthetised to the real implications of mounting debt,” commented Jim Hodgkins, managing director of CreditExpert.co.uk.

“With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiralling out of control.”

In spite of our apparent apathy towards debt, the survey showed that it remains something of a social taboo.

One in ten of those questioned claimed that their debt problem is their most socially embarrassing life event, putting it well above getting a divorce or being caught using illegal drugs.

Tags: life, debt, britons, real implications, Personal Credit, sight, firm

Buy-to-let is growing

The buy-to-let market is set to grow in 2007, with the latest figures showing that around one fifth of mortgages will be taken out on homes which will then be rented.

According to Birmingham Midshires, the UK’s biggest buy-to-let mortgage lender, the coming year is likely to see a surge in lending for buy-to-let properties.

The lender carried out a survey of around 2,000 Britons and found that people of all ages are now looking to buy a property as an investment.

It found that 40 per cent of people in their 20s want to invest in a buy-to-let property at some point during 2007, while a quarter of single parents also want to do the same.

“The buy-to-let market has grown consistently over the past decade. When you consider the returns available, in terms of both capital appreciation and rental yield, it’s easy to understand why property investment continues to grow in popularity,” said Tim Hague from Birmingham Midshires.

“A growing number of people see property as an important part of a balanced investment portfolio.”

The buy-to-let market has consistently out-performed other investment opportunities in recent years and, with weekly rents having increased by 1.3 times the rate of inflation in the past ten years, it is understandable why many people are choosing to buy in this way.

Tags: investment portfolio, buy-to-let market, investment, Birmingham, britons, Business Finance, mortgage lender

Lifetime mortgages popular among Brits

Lifetime mortgages and other equity release products are becoming more popular among Britons.

That is according to Safe Homes Income Plans (Ship), which says that a record-breaking £1.2 billion worth of lifetime mortgages were sold in 2006.

The firm has revealed that 2006 was a record year and, considering the way the market is growing, it expects to see that figure rise to £1.7 billion in 2007.

“The equity release market has come a long way over the past decade and has made very real strides in its attempt to rid itself from the scepticism that surrounded it in the early years,” said chief executive of Ship Jon King.

“Equity release has never been cheaper, more accessible or – with full regulation imminent in 2007 – safer.

“Modern drawdown products are a far cry from the inflexible, poor value products of the past,” he added.

A fall in the cost of lifetime mortgages due to increased competition is being touted as one of the main reasons behind their surge in popularity.

Tags: britons, Jon King, income, real strides, value, past decade