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: consumer debt levels, climate, credit, consumer, payments, credit commitments

Why you should be wary of low cost airlines

With the summer holiday season just around the corner there will be many people on the lookout for low cost flights and holidays so that they can get some time away without breaking the bank in the current climate. However, far too many people will be enticed by the remarkably low prices that are advertised by no frills budget airlines, little realising that once it comes to making the booking they could end up pay twice as much as they originally thought it would cost.

The problem with no frills airlines is that they appear to offer extremely good prices, which makes holidaymakers believe that they can get a really good deal. However, when you actually start making the booking you realise just how much more expensive it will be to travel compared to the amount you thought it would cost by the headline price. There are so many things that are added on as you go the cost can go up by double – in some cases even more.

This practice of adding on fees and charges as you go through the booking is known as price dripping and is a practice that no frills airlines are known for. Ryanair, for example, adds on all sorts of fees, from fees for checking in online, which you have to do anyway, to fees for baggage, priority boarding, and a hefty administration fee to top things off. What’s more these fees are all doubled because they are charged each way, so you could find that the price has suddenly shot up to two, three, five, or even ten times the amount you originally thought depending on what the original headline price was.

Many officials are concerned that these airlines are so shifty when it comes to the clarity of these charges. Whilst baggage and priority boarding are optional extras that the traveller can choose to add if they wish to do so other charges such as online check in fees and the administration fee is something that all customers will have to pay, so officials want to know why these charges are not just added onto the headline price. Many believe that these headline prices are misleading because they do not reflect other mandatory costs, which makes them look like they are a far better deal than they are.

One official said: “It’s ridiculous that a flight advertised at ten pounds can end up costing closer to a hundred. Even if the final cost represents a good deal, the customer still ends up feeling resentful when they come to hand their money over, especially when they’re charged again for the privilege of paying. Airlines shouldn’t be scared about being upfront with their prices.”

Tags: administration fee, realising, traveller, climate, upfront, dripping

Property prices end 2010 on low

It has been revealed by a major High Street lender that property prices in the UK ended last year on a low, having slid from the start of the year. The price of property in the UK was said to be around 1.6 percent lower at the end of 2010 than at the start of the year. The data was released by the banking giant Halifax, which said that property prices fell by 1.3 percent in December compared to the previous month.

It is thought that property prices have been driven down by a number of factors. One of these is that many homeowners are flocking to sell their homes whereas there is a distinct lack of interest from buyers. This is because many buyers are unable to get the mortgage finance that they need due to continued restrictions in the mortgage market, and many others simply don’t want to make a huge financial commitment in the current financial climate and with the uncertain future with regards to jobs.

A spokesperson from the Halifax said that if homeowners become more reluctant to sell this year the falling property price trend could be halted. He also said that it was unlikely that there would be much change in terms of movement in the property market over the course of this year, and this was because interest rates were unlikely to change.

The Halifax said: “Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand.”

Another mortgage expert added: “While there has been an easing down of prices, as supply has come through and demand has weakened, in certain towns and cities, not least the capital, the right type of property is still commanding the right sort of price.”

Tags: climate, Real estate, earnings growth, end, percent, mortgage, future, type

Loan sharks could become bigger problem because of Christmas

There are concerns amongst industry officials that problems relating to unlicensed and unregulated loan sharks could get worse as a result of the festive season and the current financial climate. Many people have struggled to get finance such as loans, credit cards, and overdraft, for the past couple of years due to the financial crisis, and with Christmas around the corner money will be tighter than ever leading to increased desperation for many.

 

The lack of finance availability for many people has resulted in many vulnerable consumers turning to other measures such as doorstep lenders and loan sharks, and this is something that has already been causing concern for officials. Whilst doorstep lenders charge a lot of interest they do not cause as much concern as loan sharks, as these are not even licensed lenders and have been known to swindle borrowers, resort to violence to get their money, and more.

 

Authorities are now continuing to urge consumers to steer clear of loan sharks no matter how desperate they get, as taking money through an illegal loan shark will not only financially crippling but could actually end up ruining the lives of people who get caught up with some loan sharks who will resort to anything to get their money.

 

Officials are also worried that with Christmas coming up more struggling consumers could end up turning to these sharks, and could put themselves in financial and physical danger as a result of this. Many people do not have any savings to spend on Christmas, and reports have shown that there are many consumers that are unable to raise even £200 to cover the cost of Christmas gifts and other purchases, which would increase the chances of them turning to less reputable lenders and illegal lenders.

Tags: credit, climate, measures, loan, finance availability, GBP, loan sharks, authorities

Half of young Brits think renting is a waste of money

It has been revealed in a recent survey that around half of young Brits believe that renting a property is a waste of money. However, despite this opinion many are being forced to rent because they are unable to get a mortgage in the current climate to get onto the property ladder and get a place of their own.

Recently released figures have shown how restrictions in the mortgage market are driving up the cost of renting, and whilst many non-homeowners believe that renting is a waste of money more and more are having to do this and pay more for the privilege. With so many would be first time buyers unable to get a mortgages the demand for rental properties is high, and this is driving property rental prices up further.

Recent research has shown that the amount that buyers are now expected to pay out by way of a deposit is unmanageable for many people, and whilst buyers may have no problem affording the repayments on a mortgage, especially with the base rate at an all time low, many simply cannot raise the deposit required by lenders, which is running into tens of thousands of pounds in some cases.

The level of deposit required in London has reached nearly £30,000 for first time buyers, which means that many are relegated to renting or living with friends and family. However, with the cost of rents having also rocketed some people in the London area would be looking at paying close to £1000 a month just for a one bedroom flat, with the average rent across the UK having now increased to nearly £700.

Tags: research, tens of thousands, Renting, property, first time buyer, london

Renting out your home short term could be made more difficult

For many people in the past being able to rent out their homes when they are away for a period of time has been a great way to raise a little extra cash as well as to save leaving their property empty. Read more

Tags: problems, mortgage, time, consent, Mortgage broker, property

How younger drivers can save money on car insurance

For younger drivers the cost of insuring a car can be high at the best of times, but in the current financial and economic climate, when money is tight for everyone including younger consumers, many may be hoping more than ever to try and save money on the cost of this expensive insurance cover. Read more

Tags: claim, younger drivers, car insurance, vehicle, consumers, Driving test, young drivers

40 percent bonus increase for FSA staff

In the midst of the ongoing financial crisis the UK’s financial regulator, the Financial Services Authority, has hiked up staff bonuses by a whopping 40 percent, according to recently released reports. Read more

Tags: bonus, climate, fsa, fsa bonuses, regulator

Banks leaving many high and dry by taking money from their accounts

A number of banks have been accused of taking money from consumers’ accounts by stealth, with officials stating that this practice is leaving many people high and dry, with no cash left with which to make essential payments such as pay bills, rent, and mortgage. Read more

Tags: british bankers association, climate, Business Finance, Citizen Advice Bureau, payment, advice bureau, banks, cash

Global financial job losses to be huge

According to recently released figures the number of jobs that are set to go within the global financial sector will be far greater than originally anticipated, and it is thought that around 350,000 jobs could be lost as a result of the turmoil that has wreaked havoc in the financial sector since the onset of the global credit crunch. Read more

Tags: Global, 1960s, credit crunch, Brian Sullivan, seismic shift, climate, economics, finance jobs

How Are Your Savings?

Most of us struggle to put aside as much money as we can into savings, especially in the current financial climate, and we all want to know that our savings are as safe as possible. However, with the financial turmoil being experienced by the UK and other major nations around the world consumers are becoming more and more jittery about just how safe their money really is. Read more

Tags: headline, savings accounts, net, savings, concern, northern, climate, Icelandic government

Government takes steps to help homeowners

The government has recently taken steps to try and help homeowners by changing court protocols in order to make it more difficult for lenders to take court action without taking other steps first in cases where homeowners have fallen behind with mortgage repayments.

It is hoped that this will help to reduce repossession levels, and lenders will be expected to follow guidelines and take a number of other steps before taking court action. The lenders will need to demonstrate that they have taken the necessary steps if the case does end up in the courts. Read more

Tags: case, value, Council, housing minister, mortgage help, government help

‘Incredible choice’ in ethical investments

The ethical investment market now offers savers an “incredible amount of choice”, according to F&C Asset Management.

According to the investment house, British investors can choose from more than 90 different funds, including a number of specialist environmental investments and climate change-focused ones.

Jason Hollands, head of group communications at F&C Asset Management, said that these types of funds have grown in popularity in recent years and now include ethical bond products as well as equity funds.

Despite the amount of choice available in the market, Mr Hollands said: “One of the dilemmas facing investors is how to understand the different options available out there and find the investment that is appropriate for them and their own requirements.”

The Co-operative Bank recently reported that ethical investments were worth £32.3 billion per year in 2006, an increase of nine per cent from the previous year.

Household spending on ethical products rose by 81 per cent from 2002 to 2006.

Tags: asset management, increase, british investors, jason hollands, climate

Tips on getting a loan with bad credit

It is nothing unusual these days to have damaged credit, and in fact and increasing number of us are finding out just how difficult life can be with poor credit. Read more

Tags: finance, bad credit loans, climate, legwork, Loans, personal loans, debt, major problems