Millions have a year or more of debt on their cards

It has been reported that millions of borrowers in the UK have outstanding credit card debts of a year or more, with many only managing minimum repayments on their debts in the current outstanding climate. According to the report more than six million people have had an outstanding balance on their credit cards for at least a year.

Research was carried out by moneysupermarket.com, and officials from the firm claim that almost 10 percent of people admitted to paying only the minimum amount off on their credit card debts each month. This has resulted in 14 percent of cardholders having debt on their credit cards for over five years, with the minimum repayments barely covering the interest on their debt.

Industry officials have warned that those paying off their debts with just the minimum repayment each month will not only spend years longer repaying the debt but will also pay a huge amount in interest over the term of the debt. However, in the current financial climate following the credit crisis and recession many cannot afford to pay any more than the minimum.

The average length of time that a balance is left outstanding on a credit card according to the survey results is twenty one months, and officials want to ensure that consumers understand the repayment structure and the consequences of minimum repayments.

An official from Moneysupermarket.com said: ‘Our research reveals credit cards are still playing an important role in the nation’s finances, but in the current climate, it’s more important than ever for consumers to understand the cheapest way to borrow on their cards and avoid getting stung by high interest rates. The most important thing is that consumers understand the implications of borrowing on a credit card and that paying back the minimum amount each month will dramatically increase the total amount they pay back in the long run.’

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Number of people driving with no insurance “extremely worrying”

Motorists driving without insurance should face stiffer penalties, states an expert website.

Statistics from Moneysupermarket.com revealed that up to one in seven motorists have driven their vehicles without any insurance coverage.

Further figures from the Motor Insurers’ Bureau (MIB) last year calculated that drivers without insurance were more likely to have been charged with drink driving by up to ten times.

Vehicles in the control of uninsured drivers were 6 times more likely to be deemed unsafe.

Deborah Williams, managing director of Confused.com, said the statistics were “extremely worrying”.

She is calling for more effective deterrents such as those introduced to combat mobile phone use while at the wheel.

“Perhaps more rigid penalties and greater education should be pursued for similarly dangerous offences such as speeding, driving without due care and attention, and for driving without insurance which is in essence, fraud,” added Mrs Williams.

Driving uninsured causes up to 160 deaths per year reveal MIB statistics.

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Sharp decline in first-time buyers

Britain has seen a steep decrease in the number of people investing in property for the first time.

The number of first-time buyers has gone down by 20 per cent since March this year, according to research by YouGov.

Partly blamed on mounting house prices and inflated interest rates, the reduction is also put down to a swelling of the buy-to-let market and a decrease in the properties available for purchase.

Head of mortgages at moneysupermarket.com, Louise Cuming, commented: “The past month has been fraught with uncertainty and lenders have begun acting independently of the Bank of England in terms of rate pricing.

“It’s not surprising some potential first-time buyers are getting cold feet and steering clear of home ownership.”

She added that figures from the Council of Mortgage Lenders shows the proportion of first-time buyers to have dipped six per cent against total borrowing in the first six months of this year compared to the same time-frame last year.

The website reported that a total of 56 per cent of homeowners have a fixed-rate mortgage whereas over a quarter choose to go for a fixed-rate of just three or five years.

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