ABI wants to increase safety for young drivers

The Association of British Insurers has recently revealed a number of key priorities relating to car insurance, which is aimed at making a number of improvements including improving safety for young drivers. The organization said that it wanted to take steps to reduce young driver accidents and more importantly deaths as a matter of urgency.

Otto Thoresen, ABI’s director general, was speaking at the ABI Motor Conference recently and spoke about how all insurance companies were keen to be able to provide customers with competitive prices for their insurance cover. He said that one of the ways that would enable insurance firms to do this was to improve the safety of younger drivers .

Thoreson said that every day around eighteen young people were killed or seriously injured on the roads of Britain. He said that the ABI had called for measures to be taken some years ago to try and reduce these serious injuries and deaths and since then many young lives had been taken on the roads. The ABI wants the government to take steps to help tackle this issue, which will save lives and help to bring insurance costs down.

He said: ‘As a nation of car users with some of the busiest roads in the world, insurers are committed to providing the best possible deal for motorists. One of the key ways to achieve this has to be improving the safety of our young drivers, who continue to make up a disproportionate number of road casualties. Five years ago we called for measures, such as a minimum learning period, to tackle this tragic waste of life, yet every day 18 young people die or are seriously injured on our roads. Insurers are actively helping young drivers through the increasing use of telematic ‘black box’ systems that reward safer driving. But we cannot do this alone. So I reiterate our call to the Government to work with us to tackle this issue. The time has come to seriously consider tougher measures such as a zero tolerance drink-drive limit for drivers under 25, graduated licencing, and restrictions on driving at night and in the early hours.’

Tags: period, car users, time, reward, Association, ABI Motor Conference

Consumers try to avoid High Street debt

In the current difficult climate there are many people that are looking for ways to cut back on their outgoings. For many this has meant cutting back on their spending and reducing their debt levels. His desperation to avoid debt was reflected in recent figures that showed there had been a drop in High Street store card borrowing and High Street finance for the month of November.

November is normally a busy time when it comes to spending on store cards and store finance, as many people are purchasing gifts for their loved ones for Christmas. Whilst in the past people may have signed up for store cards or taken out store finance to purchases these goods, a shift in attitude brought about by the challenging financial climate has resulted in fewer people spending on store cards or taking out store finance to make purchases.

Figures have shown that during the month of November last year the level of lending on store cards plummeted by 25 percent compared to the same period in the previous year. Just £202 was advanced on store cards during the month. Instore instalment finance levels also fell, with an 11 percent drop in the level of store finance compared to the same period a year earlier.

However, whilst store borrowing definitely took a big hit in the month of November there was an increase in the number of personal loans that were taken out by consumers. The figures were released by the Finance and Leasing Association, and showed that borrowing through personal loans increased by around 34 percent over the course of the month.

The report also showed that the largest source of advances was credit cards, which came as no surprise to most people. Whilst credit card lending for November remained was flat in November year in year it was still the source of £2.71 billion worth of lending.

Tags: christmas, period, consumers, Unsecured debt, financial climate, shift, card, drop

Are you looking to consolidate your debt?

The start of the year is a time when many people decide to try and sort out their finances, and this is because they want to look forward to the rest of the year without the burden of financial constraints hanging around their necks. By sorting through their finances households are able to cut back on their outgoings, leaving them with more disposable income for other things. Reducing outgoings has become especially important given the increases in living costs and VAT, which are set to put further strain on the finances of many households across the UK.

Many of those that will be facing further pressure on their finances are people that already have a number of outstanding debts such as unsecured loans, credit cards, and store finance. These repayments can be crippling at the best of times due to the high rates of interest that are often charged on them, but with the added pressure of the VAT hike and cost of living it could tip some people over the edge financially.

This is why it may be worth considering consolidation if you do have a number of outstanding debts that you are repaying, especially if they are high interest debts, which credit cards and store finance often are. A low rate consolidation loan could enable you to repay all of these higher interest debts, and then benefit from just one lower interest debt instead.

Whilst this will not reduce the amount that you owe what it can do is reduce the amount that you pay out each month. By finding a consolidation loan with a lower interest rate, taking it out over a longer period, and borrowing just enough to pay off your exiting debts rather than borrowing extra, you could dramatically reduce the amount that you owe each month, which means that you could effectively have more disposable income.

It is important to look around for the best deal on a consolidation loan. A number of lenders have been reducing the rates on their loans of between £5000 and £15,000, so this could be a good time to take advantage of lower rates. Consolidation will also provide you with increased convenience, as it means that you will only have one repayment and one creditor to deal with rather than dealing with a range of different payments, saving you both time and money.

Tags: VAT hike, finance, financial constraints, rest, interest, debt consolidation, period, convenience

Credit card firms try to woo back customers

Over the past couple of years credit card firms in the UK have been turning away an increasing number of clients, with the global credit crunch seriously affecting lending levels and leaving many people with little to no chance of getting credit. Read more

Tags: cash back credit cards, cash back rewards, pound, reward credit cards, Credit Cards, period, United States, interest

Dramatic fall in balance transfer card deals over recent years

Over recent years many consumers have benefited from using balance transfer credit cards, as these cards have allowed them to save money on their credit card debt interest. Read more

Tags: balance transfers, balance transfer credit card, Business Finance, period, balance transfer credit cards, credit card balance transfers

Ban on PPI by Competition Commission

For the past few years the insurance cover known as Payment Protection Insurance or PPI has been causing a great deal of controversy in the financial world. Read more

Tags: current economic downturn, meet repayments, selling, taken out, period, mortgage, payment protection insurance, Competition Commission

The collapse of the Icelandic banks – how it’s affected us

Earlier this month the already chaotic financial markets were thrown into even more turmoil with the Icelandic banking collapse. Consumers, businesses, and charities were horrified to learn about the collapse, and many feared that they would lose their money. In some cases it seems that they may have been right to think that. Over the past couple of years many businesses, authorities, charities, and consumers have been rushing to Icelandic banks to invest their savings, with accounts such as Icesave and Kaupthing Edge offering high interest rates on savings in order to attract new customers.

However, the joy of these savers, who thought that they were making huge returns on their money, was to be short lived. Read more

Tags: case, savings, period, The government, iceland banks, month

Majority of parking fine appeals won by consumers

The vast majority of consumers end up winning parking fine appeals, according to a recent report. The report indicates that a massive 94% of consumers win parking fine appeals, and this happens when they go through a public appeal against parking tickets. In six months just over 9500 Westminster issued fines were taken to an adjudicator, and over 8900, or 94%, were lost at appeal. Read more

Tags: appeal, year, period, resident, Additions

Reducing your credit card debts

Over recent years the UK has become a nation that has become more and more reliant on using plastic to pay for items. There are many reasons why people turn to credit cards for their purchases. Credit cards are far more convenience and far easier than having to carry cash around or deal with cheques. Credit cards also enable us to make purchases without having to pay up front, and we can even make purchases and spread the repayments, fuelling the buy now and pay later culture that has become so popular in the UK. Read more

Tags: rise prospect, control, repayments, period, buy

How you can benefit from a notice savings account

There are many different types of savings accounts available these days through the UK’s banks, with something to suit most needs and circumstances, and enabling consumers to save towards a special purchase, for the future, or simply towards a rainy day. One type of account that can prove invaluable is the notice account, which offers consumers a great way to save and helps them to resist the temptation to make impulse withdrawals. Read more

Tags: different notice accounts, personal finance, rate, rainy day, period, rate of interest

Consumer spending on cars set to decrease

The number of consumers expected to buy a car over the next six months is set to drop according to new statistics.

Findings from Sainsbury’s Bank show that 6.86 million people plan to purchase a vehicle between March and August 2008, almost one million less people than in the preceding six month period.

The research showed that £47.5 billion will be spent on purchasing cars over the next half year, a figure which represents a £11.1 billion decrease on the previous September 2007 to February 2008 findings.

Steven Baillie, head of loans with Sainsbury’s Finance, said: “Our findings would indicate that both the number of people who are looking to buy a car over the next six months and the total amount expected to be spent on car purchases are at their lowest levels since March 2005.”

The figures also show that up to 30 per cent of people who intend to buy a vehicle over the next six months finance at least some of their purchase with a loan.

Meanwhile, research from Sainsburys shows that over £1 billion worth of loans will be used to finance weddings during 2008.

Tags: figure, Sainsbury's Bank, head of loans with Finance, looking to buy a car, Sainsbury, purchase, period

Millions to be reliant on credit in 2007 say Post Office

New research from the Post Office has shown that one in four of credit card holders will be starting the New Year more dependent on credit than in 2007.

Up to 41 per cent of consumers are expected to be reliant upon their credit cards for day to day living costs.

Gary Fitton, Post Office director of lending, said: “Typically January is the time of year when people struggle with their money the most.”

“Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year,” he added.

The findings also revealed that half of card holders are intending to use their cards in the January sales while almost a third of respondents said they are expecting to make bigger purchases, such as holidays, using credit.

The Post Office is urging consumers to get their debts in control as up 53 per cent of card holders do not pay their card bills off in full each month.

Meanwhile, the Post Office has predicted that costs for holiday makers in Malta and Cyprus, the newest members of the Eurozone are set to increase next year.

Tags: New Year, time of year, office director, New, little choice, period, cyprus, director

Debt advisers expecting flood of enquiries

According to a recent report debt advisers across the UK are gearing themselves up for a flood of debt related enquiries as thousands of fixed rate mortgage deals come to an end. Many consumers across the UK took out fixed rate deals in 2005 for a two year period, with a low fixed rate of under 4.5% in many cases.
However, since that time interest rates have rocketed, with a series of five interest rate hikes in the space of a year, taking the rate up to 5.75%.

The credit crunch that was sparked in the United States sub-prime sectors has also had global repercussions, and has resulted in some lenders hiking up their mortgage rates even further. This means that the thousands of people that will be coming out of their fixed rate deals will not only face a huge rise in their interest rates and mortgage repayments, but will also find it increasingly difficult to remortgage to a more competitive deal.

Even those that switch to another fixed rate will have to fix at a far higher rate than they did in 2005, which means a huge rise in their monthly repayments.

It is thought that in the coming months around twelve thousand homeowners will see their fixed rate periods come to an end, and will face repayment rises of 40%. This means that many will have to find hundreds of pounds extra each month in order to continue with repayments on their mortgages, and this could send many households into the red, tipping them over the financial edge and leaving them facing repossession.

All homeowners that are due to come out of their fixed rate deals will face these problems, with many lenders having hiked up their standard variable rates to 8% or more. However, sub-prime borrowers will face severe affordability problems, as many sub-prime lenders have increased their rates to beyond 10% according to some experts.

It is thought that both the level of debt enquiries and the level of repossession will increase over the coming months as a result of this situation. The Consumer Credit Counselling Service has announced that it is opening a specialist repossession advice centre to deal with the severity of the situation.

Tom Smith
25th October 2007

Tags: rate, Mortgages, credit, introductory, fixed

Overseas credit card fraud increases

An increase in the amount lost as a result of credit card fraud has been driven by fraud on UK cards used abroad. Read more

Tags: uk, soil, debit, result, card details, period, UK cards

Happy couples warned over insurance

People in the UK are being urged to check their wedding insurance, as gifts they received on their happy day may not be covered after the cover period expires.

According to research by Abbey, 13 per cent of home contents insurance policies will not cover the value of wedding gifts temporarily.

And even if they do, this cover tends to only last a month – so the 28,000 happy couples married last month may need to move fast to ensure they are covered.

The report also revealed that many insurers limit their wedding cover. So, with the average amount spent on a present at £43, inviting more people could mean the limit is quickly exceeded.

“Sadly the amount of cover is often not enough to cover the number of gifts received by couples, and it only lasts for a month on average, potentially leaving newlyweds underinsured,” said Prasad Shastri from Abbey.

According to the study, newlyweds with temporary insurance of up to £1,000 would hit their limit after receiving gifts from on average 23 guests.

Tags: value, insurance policy, home contents insurance, limit, cent, period, amount

Consumers advised to save for Christmas

Despite the fact summer has just arrived, consumers are being urged to start thinking about Christmas and begin to save now.

While most people will be considering what summer clothes to add to their wardrobe, Fool.co.uk suggests that people should in fact already be putting money aside to provide themselves with a healthy spending pot by the time the festive season approaches.

We are now well into the second half of the year and there are only around 130 shopping days left before Christmas.

However, most consumers are not saving anything for the festive period despite the fact that we spend more at that time of year than at any other point in the calendar.

And it’s not just presents, with a host of celebratory events meaning we spend huge sums on food and drink, whether at home or at bars and restaurants, during the Christmas period.

As a result the New Year often sees a significant increase in people suffering debt problems, meaning it is important to begin saving now to avoid the post-Christmas blues being combined with hefty credit card bills.

Tags: festive season approaches, shopping, Opinions, huge sums, summer, period, anything, debt

Savers missing out on interest

The Bank of England yesterday (June 7th) froze interest rates at 5.5 per cent but many savers would not have seen any benefit if the rate had risen anyway.

Despite there having been four rate rises since August 2006, the Post Office says that many high street savings providers have not been passing on the benefits.

Interest rate rises are generally viewed as having a negative impact on most people, as those with a loan, mortgage or credit card see their repayments increase.

However, people with savings benefit from a rise in the base rate but only if the provider passes on the new rate.

“Banks and building societies are quick to raise mortgage rates in line with base rate increases, but less inclined to pass on the benefits to their savings customers,” said Richard Norman, head of savings at the Post Office.

“There have been four base rate rises in the last year and the majority of savers have missed out on the full benefit of these.

“Although the Bank of England decided to hold rates today, further rate rises are expected. To make the most of their money, savers need to ensure they check which accounts will consistently pass on rate rises and switch,” he added.

Much like a mortgage with a fixed-rate period, many savings providers offer customers a guarantee that the interest they earn will increase in line with inflation for a specified period of time.

Tags: interest rate, Financial institutions, money, Post Office."There, rate period, england, mortgage, period

Easter credit card warning for travelling Britons

Consumers planning on making a trip abroad over the Easter period are being encouraged to avoid the “unnecessary” charges that may be imposed upon them when making debit and credit card transactions.

Research carried out by Nationwide shows that the 15 million Britons who travelled abroad over the Easter period last year wasted nearly £16 million in charges imposed upon them by financial providers.

Jeremy Wood, divisional director at Nationwide, said: “People who are planning to go abroad this Easter should be aware of the hidden charges that most card providers impose which are both costly and unnecessary.”

“Anyone using a Nationwide debit or credit card will not be charged any foreign usage fees on purchases and will therefore have extra money to enjoy while on holiday,” he added.

With over 24 million Visa outlets around the globe, Nationwide also claims consumers will have no trouble accessing cash when they go abroad

Tags: credit, Easter, credit card transactions.Research, MasterCard, GBP, Nationwide debit, period, Visa