“Bling-itis” pushing Brits towards bankruptcy, says expert

A personal finance expert has warned that young Brits are overspending to compete with their friends on items such as clothes, cosmetics and gadgets, leading many of them into financial difficulty, says personal finance writer Cliff D’Arcy.

Research conducted by the UK’s mobile banking network Monilink has shown that more than 25 per cent of people aged between 16 and 34 years old are spending to compete with others and one in five young people are now struggling to pay off their credit card debt.

The research has coined the phrase “Bling-itis” to explain “young people’s obsession with buying flashy goods for the sake of keeping up appearances,” says Mr D’Arcy.

According to the survey, 21 per cent of young people prefer to spend their money on “personal treats” rather than saving it.

Mr D’Arcy warned that buying luxury goods to “look good and feel good” can lead to debt.

Two-thirds of those surveyed say they are still trying to pay off credit card debts that they built up two years ago.

Tags: Fashion, young brits, Youth, gadgets, mobile banking, Money Management, flashy goods, banking network

BIBA: Students should take out contents insurance

Students are advised that they should get their valuables covered while living away from home.

The British Insurance Brokers’ Association (BIBA) said that many students are not covered by their parents’ household insurance.

It warned that this leaves their valuables at risk, and while most students do not prioritise getting insurance, it is a sensible thing to do.

Graeme Trudgill, technical services manager for BIBA, said that a quarter of all parents do not have home contents cover at all, meaning that many students could find themselves spending a lot on replacing lost items.

He added: “A lot of students these days have laptops, iPods, digital cameras, DVDs, mobiles, stereos… and that can add up to a lot of money.”

Recent Home Office figures show that people under the age of 24 are more likely to be burgled and that as many as one in three students becomes a victim of crime.

Furthermore, the London Student Housing Guide found that the average cost of a burglary to a student is £900.

Tags: Fashion, Household, Association, BIBA, GBP

Travel insurance shake-up receives backing

A proposed shake-up in the way that travel insurance is sold to holidaymakers is being backed by a large majority of us.

That is according to the British Insurance Brokers’ Association (Biba), which published a survey on the subject.

Government proposals to revolutionise the market will focus on protecting consumers from travel agents who fail to explain the full details of the policies they sell.

According to the survey, 72 per cent of travel insurance customers were not advised whether terrorism cover was included in their policy.

It is situations like this that have led to widespread support for the government’s plans, with 97 per cent of those asked saying that they agree completely with the proposed crackdown.

“It is essential that consumers are fully protected,” said Biba chief executive Eric Galbraith.

“Travel insurance is vital when we jet off on our holidays and it is the role of the provider to ensure that consumers are both fully covered and understand the limits of their policies.

“Biba brokers and the rest of the regulated industry have been fulfilling this commitment for years and the government’s proposals would ensure that travel agents and tour operators fall into line,” he added.

The research also found that 56 per cent of agents failed to inform customers of how to make a complaint, while only 47 per cent of customers said that they read the small print on their policies.

If you are taking out travel insurance make sure that you take the time to read the small print and ask for clarification on anything which you are unsure of.

Tags: executive, revolutionise, Financial economics, Eric Galbraith, british insurance, government, Travel insurance shake-up, Fashion

Biba encourages PPI

Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.

The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.

Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.

The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.

The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.

“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.

“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”

Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.

Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.

Tags: kind, rating, ppi, Fashion, barclays, Eric Galbraith, BIBA, non-broker channels