Consumers need to ‘understand the whole product’ when buying a credit card
March 21, 2008 by admin
Filed under News, News-Credit-Cards
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.
Consumers warned not to take rates ‘at face value’
February 12, 2008 by admin
Filed under News, News-Banking
Consumers looking for savings accounts need to be wary of taking the headline rate at face value, one financial expert has claimed.
According to the Halifax bank, the headline rate does not give you all the information you require as it does not tell the consumer how to access it and what the limits to the account are.
Jason Clarke, spokesperson for Halifax, said: “The highest rates are going to be the ones with quite a few limitations in there”, citing withdrawals not being allowed through ATMs or taking place over a certain amount of time.
He added that those consumers who are looking for a savings account should decide what it is they want from their savings before committing to an account.
According to findings from the Buildings Society Association (BSA), building societies attracted a record £16.1 billion of savings inflows in 2007, almost double the amount saved with them during 2006.
The BSA revealed that the previous record was in 1988, when £13.6 billion was deposited following in the wake of the stock market crash of October 1987.
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Rising inflation targets young and old
November 15, 2007 by admin
Filed under News, News-Banking
Inflation is rising, and it is hitting the oldest and the youngest hardest. 
In October, inflation rose above the predicted rate of 2.1 per cent – itself above the Bank of England’s 2.0 per cent target – but for over-75s and under-30s, the figure was even higher, at 2.5 per cent.
The breakdown of the impact of inflation on different age groups has been carried out by the Alliance Trust Research Centre.
Younger people have been hit by above-average increases in the price of food, rent and education, while older people have been especially vulnerable to changes in the cost of food, which constitutes a high proportion of their outgoings.
Although energy costs have dropped in recent months, this has been outweighed by rising prices in other areas.
Inflation in food prices this year stands at 5 per cent, while road fuel prices are rising by 12 per cent.
Shona Dobbie, head of the Alliance Trust Research Centre, said: “Throughout the course of our study, which started in 2003, the elderly have consistently suffered the highest levels of inflation. Now they are being matched by the young.
“More than four years of higher-than-average inflation has been eating into pensioners’ budgets and it looks like this situation is going to continue for some time. We are also concerned about the more recent trend of young adults also facing inflation which is significantly higher than the headline rate, largely due to higher rents and education costs, as well as the costs of basic goods.”
