Credit card spending to soar this week

As Christmas Day fast approaches many people are rushing around trying to sort out their last minute Christmas shopping, and many will be doing this using their credit cards. Research has been carried out and the results indicate that many people will be spending on their credit cards this week in the run up to Christmas. The research was carried out by Sainsbury’s Finance.

Many people that have already done their Christmas shopping will have given their credit cards a good airing, but it appears that the consumer assault on credit cards is not over yet, as many are still hitting the shops brandishing their plastic as they rush around to try and get their last minute gifts or try and pick up a bargain in the last few shopping days before the big day.

Officials from Sainsbury’s Finance are now claiming that consumers will spend almost £2 billion on their credit cards in the week leading up to Christmas Day. In total around £6.7 billion is expected to be spent in the run up to Christmas, and just under one third of this will be on credit cards.

The big freeze that has been seen over the past couple of weeks has put people off from hitting the High Streets in the usual way, but has not put people off from shopping. Many will be getting their credit cards at the ready and getting online to order goods from the comfort and warmth of their own homes using their credit cards.

However, those that are planning to make purchases online in time for Christmas need to be conscious of the effect that the weather conditions are having on deliveries, which could result in some deliveries being delayed until after Christmas.

Tags: effect, High Streets, minute christmas, christmas, Business Finance, Christmas Day

Food prices could go up again due to harvest

Over the past year consumers have had a lot of rising costs to cope with, ranging from bills and energy prices through to petrol and food. In fact, inflation on food as been one of the most marked rises that consumers have had to put up with, and many households – especially those that have children and larger families – have seen the cost of their weekly or monthly shop rocket. Read more

Tags: effect, harvest, inflation, small percentage, World food price crisis, Marketing, food prices, grocery

Greener cars mean lower tax and insurance, says expert

Drivers of greener vehicles can take advantage of lower tax and insurance costs, which may be especially beneficial under the current credit crisis, the British Insurance Brokers’ Association (BIBA) has said.

Since road tax is based on emissions, owners of green cars will save money compared to other car owners, particularly those who have four-wheel drives.

Insurance is based on risk-based pricing, which is made up of several factors, including a person’s age, experience, the type of car, and the value of the car.

According to Articlesbase, the recent budget introduced an increase in car tax and a 2p rise in fuel costs to come in effect from October 2008, although critics are unsure whether the tax cuts for greener cars will encourage drivers to consider cleaner transport.

However, Graeme Trudgill, technical and corporate affairs executive for BIBA, says: “People recognise that the large four-wheel drive vehicles aren’t so popular and therefore people are now thinking more about buying more environmentally friendly cars like the Toyota Prius.”

Tags: fuel costs, lower tax, effect, four-wheel drives.Insurance, insurance costs, executive, experience

Drivers not going hands-free

Many British drovers continue to use their mobile phones while driving, despite recent changes to make punishments harsher.

A survey, carried out by Which?, found that 33 per cent of drivers are still making and receiving calls while behind the wheel.

In addition, 32 per cent admit to sending or reading text messages while driving, running the risk of prosecution or, even worse, having an accident.

New laws introduced in February state that drivers can be hit with a £60 fine and three penalty points on their licence if they are caught on their phone while driving.

This can have a big effect on insurance premiums for drivers and the fact that they continue to talk and drive cannot be put down to ignorance of the laws.

In a separate Which? survey, it was found that 90 per cent were aware of the penalty changes.

“Although people seem to be aware of the higher penalties for mobile phone use behind the wheel, many either don’t understand or don’t obey the revised law,” commented Richard Headland, motoring editor at Which?.

“The penalties for using a handheld phone when driving are now stiffer, but to be effective the government must change driver behaviour through better education as well as enforcement.”

The survey also highlighted that only one in ten drivers are aware that it is still legal to call the emergency services while behind the wheel.

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House prices make Olympic gains

London’s successful bid for the 2012 Olympic Games has driven house prices up in parts of the city.

Since the announcement, three London postcodes, all of which are close to Olympic sites, have seen property prices rocket by around 15 per cent.

Leytonstone (E11) properties have risen in price by 23 per cent since mid-2004, while homes in Hackney (E8) are 21 per cent more expensive and Clapton (E5) has seen an 18 per cent rise.

The figures, which have been collated by Halifax, are inline with those seen in previous Olympic host cities. Barcelona, Atlanta, Sydney and Athens all saw house prices rise above the national average in the build-up to the games.

Although rising house prices may not make good reading for anyone looking to take out their first mortgage, Tim Crawford from Halifax says now is the time to invest in these parts of London.

“London’s winning Olympic bid has boosted regeneration spending in the East End and this has had a positive effect on local house prices,” he commented.

“There has been an increase in interest from first-time buyers and investors alike. The strongest recent gains have been in Leytonstone and Hackney.

“Despite recent rises, there are eight postal districts close to the Games site where house price are more than 25 per cent below the London average, which highlights the area’s still relatively affordable property prices,” added Mr Crawford.

First-time buyers may find that investing in a property close to an Olympic site will prove to be a good investment, with the average Olympic city seeing prices rise by 19 per cent.

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