New rules set to come in for credit card companies
December 28, 2010 by Reno
Filed under News, News-Credit-Cards
The start of 2011 will see new rules come into force for credit card providers, which will means that changes will have to be implemented with regards to minimum repayments on credit cards as well as on how repayments are allocated to the debt that is outstanding on credit cards.
It is thought that the changes that are brought in from this weekend coming will have a positive effect on millions of credit card users, as it means that they will pay off their credit card debt more quickly as a result of changes made to the minimum repayments, and also that they will save money on interest because card provider will have to allocate repayments to the most expensive debt first rather than the cheapest debt, as many do at present.
However, whilst the changes will come as good news for many consumers industry officials are warning that credit card firms could be sneaky in their tactics to try and recoup money. This could see some credit card firms hiking up interest rates to make more money from customers, and some may add on sneaky charges and fees.
The biggest change, and the one that will most benefit consumers, is the fact that credit card firms will have to allocate repayments to higher interest debt first before the cheaper debt. This could make a huge difference to the amount of interest that is paid by consumers.
Tags: result, Money Management, The start, positive effect, Stoozing, repayments, consumer, Debt settlementOne industry official said: “The new regulations and changes that have been brought in will be highly beneficial to credit card users, and could make a big difference to the amount of interest that they pay. However, it will also make credit card firms sit back and think about how they can make back their losses, so consumer need to remain vigilant.”
“Bling-itis” pushing Brits towards bankruptcy, says expert
May 3, 2008 by admin
Filed under News, News-Credit-Cards
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.
National Debtline: Fewer balance transfer deals affects other personal finances
April 18, 2008 by admin
Filed under News, News-Loans
The drop in the availability of cheap interest-free balance transfers that have been popular in recent years could have a knock-on effect on other aspects of people’s personal finances, according to National Debtline.
Consumers are finding it increasingly difficult to find cheap balance transfer deals for their credit card debt, which is impacting the number of mortgage arrears as people stop paying their mortgage to counterbalance the problem.
In the past many borrowers would transfer their debt to another near-nought per cent deal, however such cheap, accessible credit is now harder to come by, although the organisation said that some reasonably good deals are still available for those with a clean credit rating.
Commenting on the future outlook for consumers, Beccy Boden-Wilks, a debt adviser and spokesperson for National Debtline, said: “Those cheap credit, nought per cent balance transfers are going to be very hard to come by, if not non-existent.”
Despite the current difficulty of managing large amounts of debt, around 716,600 people will try and transfer around £1.1 billion a month between credit cards this year, according to Sainsbury’s Finance.
