Debt conscious Brits opt for staycations

According to a recent report a rising number of people in the UK who are conscious about falling into debt and want to avoid the pitfalls of any further debt are now opting for staycations when it comes to holidays, as they believe that this will be the cheapest option for them in the current climate. Nearly one in four Brits stated in a recent survey that they would be trying to spend less on their holiday this year.

For many people, going abroad on holiday has become increasingly difficult as a result of their financial situations. Many have found that the cost of flights and accommodation have become too much for them to manage on their more limited budgets, and those with families are finding it increasingly difficult to afford to take the whole family on an overseas holiday, as this can run into many hundreds or even thousands of pounds.

The survey was carried out by the Insolvency trade body, R3, which said that of those that were trying to save money on their holidays nearly 60 percent had decided to holiday at home. Those that decided that they still wanted to holiday abroad looked at other ways to save money, with over 70 percent reducing the cost of accommodation, 66 percent choosing cheaper travel, and 60 percent deciding to spend less money whilst they were on their holiday.

An official from the firm said: “People choosing not to have a holiday this year is likely to have grown out of necessity rather than choice. UK households will either simply not have the money to go on holiday as result of cuts to their disposable income or have decided to save their money in preparation for the difficult times ahead. R3’s latest personal debt snapshot revealed only a quarter (25%) of consumers believe their financial situation will improve over the next six months. The money saved from spending less or not having a holiday at all will provide individuals with a financial ‘buffer’ in case they fall on hard times.”

Tags: financial situation, Brits, choice uk, cheapest option, holiday, spain, choosing

Consumers need to ‘understand the whole product’ when buying a credit card

Spenders need to know what they are getting when they shop for a credit card, one financial advisor has claimed.

Credit Action said consumers need to take some time and effort when choosing a credit card, just as when choosing a car.

Chris Tapp, director of Credit Action, stated that people need to understand the principle behind cards, which is to make sure that the amount borrowed on it can be paid off the following month.

“That is the way to avoid getting hit with all kinds of charges, to make sure you are only borrowing as much as you can pay back,” he said.

He added that the main thing to look for is the headline rate and to compare this rate of the interest between card providers to ensure the best deal is found.

Meanwhile, MoneyExpert.com research released at the beginning of the month shows that 3.2 million spenders own five or more credit cards and 28 per cent of us applied for more plastic last year.

Tags: Credit Action, choosing, credit, Credit card, interest rates, headline rate, rate, financial advisor

International medical insurance growing

Demand for international medical insurance is strengthening, according to the private healthcare company Bupa.

With more and more Brits flush with cash from selling their houses in the current UK house price boom and choosing to retire abroad, private healthcare can prove an affordable option for many.

Coupled with the growing number of “internationally mobile” employees working for businesses relocating to the strengthening economies of Russia and India, for example, the market is expanding.

Bupa spokesperson Thomas Flygare said: “We have done research that shows that the number of internationally mobile employees will continue to grow over the next five years. Add to this an extra 2.3 million Brits who are set to retire abroad and by 2020, one in five older people who will be living outside the UK.

“So, naturally the number of companies providing international medical insurance has increased.”

He also advised that customers research the market place to find the insurance that best meets their needs.

“Experience has shown that peace of mind wins when choosing a provider”, Mr Flygare concluded.

Tags: Russia, finance, choosing, next five years, affordable option, cash, demand, house

Just 96 mins to choose a house

Home buyers are being warned to take more time over choosing the home of their dreams.

New research shows that many buyers spend just 96 minutes viewing a property before taking out a mortgage on it.

This period of time is vastly smaller than how long we spend deciding where we will take our annual holiday, with the average person spending 139 minutes choosing a destination.

In light of these figures, Abbey Mortgages is warning buyers that they should take more time when deciding on a new home or they may be stung by unexpected problems in the future.

“It really is crucial that home-buyers do as much research as possible before making an offer on a new property. Moving is stressful enough, without having to worry about nasty surprises when you arrive at your new home,” commented Nici Audhlam-Gardiner, head of mortgages at Abbey.

According to the mortgage lender, many homeowners have looked back at the buying process that they went through and have regrets.

Of those surveyed, 21 per cent said that they found the decor in the house had been fitted poorly, 14 per cent suffered from nasty neighbours and six per cent had difficulty finding a parking space.

Abbey is offering a mortgage which covers all upfront costs, meaning new homeowners do not have to worry about any nasty surprises.

This deal may benefit many buyers but anyone considering purchasing a property should ensure that they shop around to find the best deal for them and must not allow themselves to be rushed into a decision.

Tags: house, choosing, Financial Services Authority, abbey mortgages, upfront costs, average person spending