Citizen’s Advice reports on rising debt issues

Officials from Citizen’s Advice Scotland have recently commented on the rising issues relating to debt amongst consumers that are contacting the service. Read more

Tags: Citizen Advice Bureau, relationship, biggest issue, day, business, credit

Bank accounts for students

Even as a student it is important to have certain banking facilities and services that enable you to manage your money and your debts effectively, and many banks in the UK now offer specialist bank accounts designed to meet the need to students. This is good news for students, as it means that not only can they benefit from having banking services available to them but they can also build a business relationship with a bank, which could prove invaluable in the future when it comes to setting up a regular bank account, setting up a savings account, and most importantly borrowing money for purchases such as a car or property. Read more

Tags: wide range, bank account, relationship, day, uk consumers bank, bank accounts, student accounts, cost overdraft facility

Up to £1.6bn to be spent on Valentines day

British spenders are expected to splash out up to £1.6 billion on Valentines day gifts for loved ones, according to a recent survey.

Findings from PayPal revealed that the average spend per gift is thought to be £71.25 with those in a relationship spending £69.90.

Cristina Hoole, spokeswoman for PayPal, said: “It would seem that romance is far from dead as almost half of Brits will be splashing out a massive £1.6 billion on their loved ones this week.”

She added that as millions are expected to hit shops, up to one in five will choose to shop online for a gift to avoid the crowds.

Further findings from PayPal showed that up to a quarter of UK men are more likely to conduct their shopping online and 36 per cent of Brits in a relationship do not plan to give any presents.

Meanwhile, research from APACS, the UK’s payment association, revealed that credit card spending over the festive period totalled £32.2 billion.

Tags: recent survey, facebook, card, quarter, relationship, day, romance, UK men

Men ‘take care of finances during move’

Nearly half of men in a relationship will manage the finances for moving compared with 34 per cent of women, according to a new survey.

The findings from Halifax show that 65 per cent of couples will make a joint decision when to move or sell their property while couples are less likely to consult with each other the older they get.

Up to 72 per cent of those aged between 16 and 24 consult each other while only 58 per cent of the over-65s will involve their spouse in a decision surrounding moving house.

Gordon Edwards, managing director, Halifax Estate Agents, said: “Buying a house is the biggest purchase most of us are likely to make.”

“If you are deciding to sell your home, purchase a new property or sorting the finances for a move, it’s important to involve your partner in the decision-making process,” he said.

Meanwhile, more research from Halifax shows that County Armagh has the fastest house price growth in the UK with a rise of 331 per cent over the past ten years.

Tags: cent, new property, director, finance, Estate agent, decision-making, house price, relationship

New project to get affordable credit to everyone

A new project has been launched with the intention of helping people on low incomes to find affordable credit.

Citizens Advice (CAB) has linked up with the Association of British Credit Unions Limited (ABCUL) to launch the Financial Inclusion Partnership Project.

It is hoped that the establishment of the project will lead to a greater working relationship between the CAB and credit unions and help to establish benefits for the clients and the agencies involved.

“This is an exciting new project which will help people who are financially excluded,” commented Teresa Perhard from the CAB.

“People on low incomes often struggle to find affordable credit and feel forced into taking out loans with sky-high interest rates, sometimes through unscrupulous loan sharks.

“Credit unions give them an affordable, safe and dependable alternative. We look forward to developing local partnerships through the scheme,” she added.

The project is being supported by Barclays Bank and the Abbey Charitable Trust, with the latter providing small grants to individual participating bureauxs.

If you are in financial difficulties it may be worth contacting the CAB for advice. You should not seek to borrow money from a loan shark who will charge you crippling rates of interest.

Tags: individual participating bureauxs, relationship, incomes, Barclays Bank, financial, exciting new project, Association of British Credit Unions Limited, agencies involved."This

Bank charge row

The British Bankers’ Association (BBA) has hit out angrily in retaliation to a Which? magazine report that claimed banks are trying to trick their customers.

The publication looked into bank charges and found that many banks are employing “underhand methods” to prevent consumers challenging the charges.

According to the report, those who attempt to challenge the banks can be threatened with account closure and having their details passed onto debt collectors.

“In an attempt to avoid paying consumers what they are due, we have found banks employing increasingly underhand methods,” said Doug Taylor from Which?

“It is important that the exposure of these tricks does not put people off reclaiming their charges, though, as that would be playing into the banks’ hands.”

In response to the claims made by Which?, BBA has launched a scathing counter attack, labelling the report “sensationalist” and “personally insulting”.

BBA says that it is perfectly reasonable for a bank to close a customer’s account when it is clear that the relationship has broken down.

Additionally, the organisation points out that a bank is acting within its rights if it chooses to use a debt collector if it has chased an individual a number of times.

“Which? is clearly trying to exploit its position as a consumer body by sensationalising what could be a useful piece of research,” said Angela Knight from BBA.

“The way in which Which? has approached this is not only sensationalist, it’s also personally insulting to the front line bank staff who do an excellent job serving their customers.”

Another report into bank charges, carried out by the Office of Fair Trading, is due to be published soon.

Tags: research, bank, relationship, office of fair trading, british, Bank charge, banks

Separation must be financial too

January is the peak month for couples splitting up and those who find themselves in this situation are being warned to remember that financial ties remain long after the love has gone.

Research shows that couples are most likely to go their separate ways during January as the pressures of the Christmas period act as the straw that breaks the camel’s back in a relationship which is failing.

However, many people forget that although they may no longer be in an emotional relationship with their former partner, they may still be in a financial one.

MyCallcredit is warning those who have split that they should break these ties, or risk their ex having an impact on their credit file and future creditworthiness.

“Any joint credit arrangements need to be transferred into single names and joint accounts closed before an individual can disassociate themselves from their former spouse,” said Melanie Mitchley from MyCallcredit.

“If people aren’t proactive they can find their own finances affected by their ex’s future partners. And that’s something to be avoided at all costs.”

The firm says it is important that any joint credit commitments are brought to an end, which may involve taking out a new loan to pay off a previous debt.

Once this is done, the credit reference agencies should be contacted and informed that there should be no more association between you and your former partner.

“Splitting up is always difficult but it pays to take the initiative and disassociate yourself from your ex and their borrowings as soon as possible – otherwise you could be in for a nasty surprise,” added Ms Mitchley.

Tags: January, relationship, joint credit arrangements, Financial services, commitments, straw, credit reference agencies, Separation