Payday loan repayment delays can lead to hefty charges

According to a recent report there are now many people who take out payday loans in order to bridge the gap between paydays. With the cost of living soaring, petrol prices having rocketed, bills going up, and food costing much more, many people are now struggling to make ends meet financially and their wages are simply not lasting for the whole month, leaving them short of cash part way through the month when the next payday is still a long way off.

As a result of this, more and more people have found themselves in a situation where they have had to borrow money in order to make ends meet and for some this is becoming a regular occurrence. Whilst some people are turning to family members and friends in order to secure this finance to tide them over others are turning to lenders, with many opting for payday loans because they are quick to process, require no credit checks, allow consumers to borrow modest amounts of money for short periods of time, and offer a fixed fee.

However, whilst some people have found these payday loans to be a financial lifeline in a very difficult climate, industry experts are warning that the cost of borrowing can increase even further with these payday loans if they are not repaid on time. The interest rates charges are already extortionate on these loans, although many customers do not realise this because they are borrowing the money for such a short period of time.

One financial industry professional said: “There is a real danger that customers could fall into a spiral of debt where they have to take out a loan each month just to make ends meets. The golden rule is not to borrow money unless it is absolutely necessary.”

Tags: customers, personal finance, short periods, credit checks, order, tide, result, Payday loan repayment

Record levels reached for rents

Over the past year getting a mortgage has remained difficult for the many non-homeowners who are desperate to get onto the property ladder. This has led to an increasing number of people that may normally have opted for a mortgage to buy their own place having no other option but to rent. The demand for rental homes has rocketed as a result of this, which has pushed up rental costs.

It has now been revealed that rents are at their highest level since they last reached record highs back in November of last year. The average rent being paid has now soared to £692 per month, reflecting an increase of 0.8 percent compared to the previous month and a rise of 4.4 percent compared to the same period last year.

The landlords of private rented properties are, on average, raking in around £30 per tenant more each month as a result of these increases. Whilst the rent increases are good news for landlords, as they have a huge demand for their properties, it is not so good for tenants who are already struggling financially and do not have to option in many cases of being able to invest in their own property because of the financial restrictions in the mortgage market.

There are concerns amongst landlords about increased levels of arrears and missed or late payments recently. One official said: “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent. Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”

Tags: result, top, mortgage, Renting, opportunity, landlord

Mortgage markets still look bleak

According to a leading industry group the mortgage market in the UK still looks bleak, with the lenders stating that it has become ’stuck in a rut’. Over the course of February it is claimed that the low levels of lending have continued. Officials have said that the level of lending for the month of February were nearly as low as they were for January, with around £9.5 billion of gross lending.

The Council of Mortgage Lenders released the figures, and they have stated that it is likely that this year will continue to be a challenging and difficult one when it comes to the mortgage and property sectors. Another survey has revealed how the cost of renting has shot up as a result of so many people being unable or unwilling to get a mortgage, which has resulted in a higher demand for rented property.

The Council of Mortgage Lenders has said that part of the problem stems from restrictions amongst lenders when it comes to granting mortgage finance. However, the group also said that there was a definite drop in consumer appetite for new borrowing, with many people too worried about their financial situations and their job security to risk taking on a huge mortgage.

One official also commented on the increase in rents and demand for rented property, stating: “The fierce competition among renters in many areas of the country has cut short the traditional lull we tend to see between December and February. The consistently constrained level of lending to home buyers has bolstered demand – and rents – in the private rental sector during what is typically a slower period. With the mortgage market even more sluggish since the start of 2011, this backlog of frustrated buyers has increased even further and rents have risen correspondingly.”

Tags: official, result, huge mortgage, job security, industry, drop, Mortgages

House prices still set to fall in 2011

According to recent figures the property market in the UK did edge up a little over the course of 2010, and the average property price in December was up by around 0.4 percent compared to the same month a year earlier. The figures were released by High Street lender, Nationwide, with officials from the building society stating that despite this year’s slight increase property prices were still set to drop in the first half of next year.

Nationwide said that property prices in 2010 had declined in the second half of the year compared to the first half, and that in the first half of 2011 prices would continue to fall. Nationwide said that demand for property remained weak, which would contribute to the slump in property prices. One economist from the building society said that there were two few buyers interested in property and too many properties available.

The lender also said that although property prices had edged up in December, prices had fallen in four of the last six months and were likely to continue doing so. Property prices have been falling as a result of lack of mortgage availability, increased caution from potential buyers who are steering clear of the market at present, and an over-supply of properties for sale.

An official from Nationwide said: ‘At the moment, there are probably still too few buyers chasing too many properties. As a result, the slow drift down in house prices is likely to persist in 2011, at least for the first half of the year. Whether it continues into the second half will depend on the flow of new property on to the market.’

He added: ‘Despite December’s increase, house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures.’

Tags: result, economics, mortgage, Business and Economy, Irish property bubble, building society, slump, Mortgage loan

New rules set to come in for credit card companies

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.

One 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.”

Tags: result, Debt settlement, positive effect, Money Management, The start

Northern Rock cuts its repossession numbers

The nationalized mortgage lender Northern Rock has recently announced that it has managed to cut its mortgage repossession numbers as a result of the housing boom seen over the summer period. The bank has also seen stabilisation of the number of mortgage customers on its books that are in arrears with their mortgage repayments. Read more

Tags: northern rock, lender, temptation, result, northern rock repossessions, repossessions, general election, taxpayer

Why you need to shop around for car insurance

It has always been important for drivers to ensure that they shopped around for their car insurance. With so many insurance companies saturating the market competition in the vehicle insurance industry has always been very stiff, and for consumes this has meant that there are some very affordable deals available from insurance firms that are looking to provide the best deals in order to gain increased custom. Read more

Tags: cheap car insurance, company, compare car insurance, car insurance quotes, car insurance

Further limit reductions on credit cards could be in the pipeline

It has been claimed in a recent report that a growing number of credit card customers in the UK could see their credit limits reduced as credit card providers do their best to shore up their finances and claw back some revenue. Read more

Tags: interest, mention, result, credit card limits, Credit Cards, credit

Many pensioners set to lose their home care facilities

According to a recent report many pensioners in the UK are set to lose their home care facilities such as meals on wheels and help with shopping, washing, and household chores, and this is as a result of government cutbacks. Read more

Tags: Business Finance, old age, Household, pensioner home care, pensioners, sector, home care, result

Warning issued over HMRC message

Over the past couple of weeks authorities have had to issue warnings over a new email scam that was doing the rounds claiming to be from Her Majesty’s Revenue and Customs. Read more

Tags: Business Finance, fair, email scams, Fair Trading, scam, customs, hmrc email scam, result

Car scrapping scheme could run dry of funds early

It has been announced that the car scrapping scheme that the government put into place after the budget could run out of money six months earlier than anticipated. Read more

Tags: scrapping, car, advantage, car scrapping, scrap cars, result, cars

Air travel plummets in popularity due to credit crunch

According to a recent report the popularity of air travel amongst UK consumers has taken a real hit as a result of the global credit crunch, with fewer and fewer people able to manage holidays abroad. Read more

Tags: result, overseas property ownership, credit crunch, number, recession, difficult financial climate, air travel

Deposit free mortgages were a bad idea

City Minister, Lord Myners, has recently stated that the 100 percent and 125 percent mortgages that many lenders used to offer to borrowers in the UK were a bad idea. Myners described these mortgages as ‘foolish’, adding that banks should never have offered these mega mortgages. Read more

Tags: free mortgages, deposit free mortgages, huge deposit, accountability, Banking, Britain, uk, result

Rising mortgage arrears in Scotland

Recently released figures have shown that the level of mortgage arrears amongst homeowners in Scotland has been rising. An increasing number of homeowners are struggling to keep on top of their mortgage repayments. Read more

Tags: result, mortgage arrears, Mortgages, scotland mortgages, housing, homeowners, Arrears, debt expert

Energy bills need to fall in line with oil prices

Officials from a consumer watchdog group have become involved in a row over energy prices, after insisting that the price of energy usage needs to be falling in line with crude oil prices. Since the summer the price of a barrel of crude oil has plummeted by around 50%, but energy prices have gone up twice this year and not come back down. Energy giants have said that the price of wholesale energy is still high, hence the price of usage has not come down. Read more

Tags: Minister Mike O'Brien, result, consumer, government, July

Compensation process begins for Icesave customers

Earlier this month there was widespread panic amongst consumers, charities, local authorities, and businesses when the Icelandic bank Landsbanki collapsed, leaving many people, firms, and agencies that had put money into high interest Icesave accounts wondering whether they had lost all of their money. The panic became worse after it was revealed that the Icelandic authorities were failing to honour obligations with regards to compensating UK consumers. Read more

Tags: BACS, result, linked accounts, banking crisis, Business Finance, uk, interest, icesave

Good news for those with Post Office savings accounts

Many people in the UK have Post Office savings accounts, with many preferring these accounts because they are part of a trusted name. According to recent reports those with Post Office savings accounts will now be able to enjoy greater peace of mind than ever, and this is as a result of changes to the banking system in Ireland. Read more

Tags: peace of mind, result, consumers, post office, greater safety net, savings, News, savings accounts

Mortgage lender offering some impressive rates on savings

According to a recent report a number of mortgage lenders have been offering some impressive interest rates on savings accounts in a bid to increase deposits from savers to aid funding. Many banks and lending institutions have experienced funding problems as a result of the credit crunch, which has swept across the country leaving a trail of turmoil in the financial markets. A number of high profile casualties, such as Northern Rock, have suffered terribly as a result of the problems in the financial sector, and mortgage lenders are desperate to avoid heading down the same route. Read more

Tags: interest, issue, impressive rates, high profile casualties, bank, result, mortgage, saving account

Mortgage approvals reach ‘record low’ in May

The number of mortgage approvals for house purchases reached a record low last month, according to an industry body.

Figures for May show that remortgaging levels held up, accounting for a record 53 per cent of all mortgages approved, reported the British Bankers’ Association (BBA).

It also found that consumers spent more on their credit cards last month but repayment levels on credit cards were lower.

BBA statistics director David Dooks suggested mortgage activity was lower in May as a result of tighter lending criteria and economic pressures on households.

He added: “Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders.”

Separate research released last week by the housing charity Shelter suggests that more than four million households used credit cards to help meet rent or mortgage costs in the past 12 months.

It also found that over two million households are spending in excess of half their income on rent or mortgage payments.

Tags: result, economic pressures, repayment, mortgage payments, number, lending, BBA, finance

Consumer increase care over their personal data

One of the major issues that have raised concern across the UK over recent months is that of personal data security, with many people concerned over the risk of identity theft and fraud. Read more

Tags: credit, personal data, bank account, Revenue, result, recent, increase, Financial institutions

Young drivers need to ’shop around’ for insurance

Young drivers have been advised to ’shop around’ for insurance after some providers have withdrawn cover for them, according to an insurance body.

The Association of British Insurers (ABI) said that there are some companies who do not offer young drivers cover as they fear they are more likely to have an accident.

Malcolm Tarling, spokesperson for the ABI, said: “They are more likely to claim and the claims cost a lot – I have never seen anything more expensive.”

He added that as a result young drivers should shop around to find the best deal for their insurance, as some companies are more competitive than others.

“Look into the pass plus; some companies now offer incentives for young drivers who have this,” he concluded.

According to reports in the Daily Telegraph, Axa, More Than, Swiftcover, Saga and HBOS brands such as Esure, Sheila’s Wheels and Halifax are among the growing number of insurance providers that automatically reject all applications from 17-year-old drivers.

Tags: Association of British Insurers, Pass Plus, Disaster Accident, Association, result

Nearly 2m pet insurance claims made by consumers

Up to 1.8 million pet insurance claims are made per year by owners according to research from Sainsbury’s Bank.

A further 18,000 claims are made for reasons including when a pet is lost or stolen.

Sainsbury’s warns that as many as 75 per cent of cats and dogs are not insured and as a result estimates that 5.5 million treatments are paid for by owners.

Claire Moyles, pet insurance manager at Sainsbury’s said: “The pet insurance industry not only deals with a huge volume of cat and dog claims every year, it deals with a staggering breadth of ailments and problems.”

She added that insurance can be more useful than expected as events when you need to claim could be “more common than you wish to consider”.

The estimated cost of owning a cat and a dog is £7,200 and £9,000 respectively while vet fees make up 19 per cent of the annual spend on dogs and 21 per cent for cats.

Meanwhile, Sainsbury’s Bank has also reported that the UK has seen an upsurge in the number of property damage claims in the wake of the recent bad weather.

Tags: result, cat, sainsburys, United Kingdom, cent, Nectar loyalty card, insurance claims, annual spend

Increasing numbers of students preferring to save over travel

Increasing numbers of students are foregoing a gap year to go travelling, preferring to put money away for property, according to new statistics.

Findings from Abbey revealed that 42 per cent of respondents are opting to save towards a deposit on a first home.

This is twice the number of students saving up to go travelling or for a new car after they have graduated.

Nici Audhlam-Gardiner, head of Abbey Mortgages said: “House prices have brought in a harsh new reality for students.”

“They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get onto the property ladder,” he added.

A further 21 per cent of past graduates thought they could definitely have saved more money while at university, while 2.9 million (17 per cent) wished that they had worked harder and played less, according to the figures.

Recent research from Abbey showed that up to 15 million Brits suffered financially as a result of being unprepared for big life changes.

Tags: Mortgage loan, gap year, Nici Audhlam Gardiner, result, property ladder, Nici

Consumers “don’t take the time to read the small print”

When buying into financial products, such as critical illness cover and private medical insurance, “people tend to look at the top line and not the small print”, says financial experts.

Financial advisory firm Ashley Law said that those consumers who purchase products which are cheaper may find they have lesser benefits.

Jock Cassidy, director of Ashley Law, said: “If people don’t take the time to read the small print, and I doubt very much if they do because it’s not exactly the most interesting read, then they’ll go for the cheapest option.”

He added that when a person changes a provider of a financial product “it’s a guess on my part is that it’s [the decision] purely cost-driven”.

Meanwhile, David Elms, chief executive of Unbiased.co.uk, commented has said that record levels of business are being driven to independent financial advice through the company’s ‘Find an IFA’ service

As a result IFAs are converting the leads at a greater rate than before.

Tags: personal finance, financial advice, line, David Elms, result, business, time, firm

UK Life insurance market very competitive

A spokesperson for Libra Financial Planning has announced that while “the life insurance market in this country is very competitive” and that prices are falling.

He said that premiums can vary greatly in terms, price and all the extra add-ons available, but the marketplace is still very competitive.

“I would say the market is quite strong,” he added.

The cost of life insurance appears to be falling due to people living longer say the organisation.

The impacts of medical improvements and healthier lifestyles are having a significant on our population and as a result people are living longer, said the spokesman.

Figures from the Financial Services Authority have revealed that by 2031 the life expectancy for men will be 81 years and for women, 85.

According to Prudential, the UK life insurance market was the largest in Europe and the third largest in the world in 2004, with approximately £105 billion of net premiums written.

Tags: life insurance market, result people, United States, improvements, net premiums, life expectancy, result, europe

People advised not to rely on loans for Christmas

Consumers are advised not to take out elf”>loans in order to “make Christmas happen”, an industry expert has said.

According to Steven Baillie, head of loans at Sainsbury’s Bank, using a personal loan purely to fund Christmas is not recommendable, as it may take a few years to pay off.

“If you’ve got to carry that forward for another 12, 24, 36 months … Christmas comes round two or three times before you’ve paid off the first one. So it’s not something I would, as a responsible lending organisation, expect customers to do,” he said.

Research by MoneyExpert.com on Christmas spending reveals that over a million bills were neglected in January this year as a result of excessive spending over the festive season.

Meanwhile, Credit Action found that there were 669 million credit card transactions made in December 2006, up six per cent on the previous year and equating to 250 transactions per second throughout the month.

Tags: previous year, Sainsbury, organisation, result, head of loans, round

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

Financial benefits of quitting smoking

Smokers are being encouraged to kick the habit ahead of the June 1st ban on lighting up in public.

The health benefits of kicking the habit are clear but Alliance & Leicester is encouraging smokers to look at the financial benefits of stubbing out.

Around 24 per cent of people in England smoke and with the average 20-a-day smoker spending £1,909 each year on cigarettes, their banking situation is suffering as a result.

Alliance & Leicester points out that this money would be better invested in a high interest savings account which would see the saver earn up to £1,962.

“Kicking the habit isn’t an easy thing to do, but the benefits speak for themselves,” said Ross Dalzell, manager for savings at Alliance & Leicester.

“The English population spends billions of pounds on cigarettes each year – money which could be going towards that new kitchen you’ve dreamed of, a two week holiday in the sun, or simply kept as a nest-egg for the future.”

Around 70 per cent of people who smoke say that they want to quit and there is hope for those who want to kick the habit.

Figures show that 21 per cent of women and 27 per cent of men are now ex-smokers.

The smoking ban is introduced in England from July 1st and will mean that lighting up is prohibited in all workplaces, including pubs, restaurants, airports and train stations.

Tags: result, ex-smokers.The smoking ban, england, English, billions

Pay rises make us worse off

That pay rise you have been pining for may make you worse off financially.

It may sound silly but, according to Prudential, many of us find that we actually suffer financially as a result of a pay rise or bonus.

The reason, says the financial services firm, is that many of us throw our good banking guides out of the window when we get a rise and start spending the money before we even have it.

Around 17 per cent of Britons are said to behave in this way, falling into a category dubbed by Prudential as ‘Money Illusionists’.

This is equivalent to 3.4 million people who spend their entire bonus or pay rise before they have received it, while nine per cent have even managed to get themselves into debt as a result.

“A pay rise or a bonus ought to be the trigger to get debt under control but too many of us simply see it as an excuse to spend more,” commented Angus Maciver, business insurance director at Prudential.

“It is particularly worrying that so many people appear focused on gaining pleasure now, spending increases and windfalls rather than saving.

“As Britain’s consumer debt levels continue to grow it is vital that people make provision for good times and bad,” he added.

Most people (19 per cent) admit to spending their pay rise or bonus on a holiday, while 13 per cent choose home improvements and 12 per cent on electronic gadgets.

On the other hand, only 23 per cent use the money to pay of debts and 15 per cent choose to save it.

Tags: business insurance, home improvements, Illusionists, bonus, prudential, result

Garden items may not be covered

As the Bank Holiday weekend approaches, Nationwide is warning homeowners to ensure that their home insurance covers the theft of garden contents.

Not all policies cover items which are kept in the garden and people need to be sure that they are covered.

The firm points to the fact that evenings are getting longer and many people will be spending more time in their gardens as a result.

This inevitably leads to lawnmowers and garden furniture being brought out and often left in the garden over night.

Nationwide warns that these products become easy pickings for thieves and says that simply being certain that your home insurance covers garden contents can save you a lot of money.

“As we move further into spring we begin to see an increase in the number of home insurance claims we receive for items being stolen from gardens or vandalised, with garden furniture being the most popular item claimed for,” said Robin Bailey, Nationwide’s insurance director.

“Unfortunately we cannot secure our gardens as easily as our homes but, by finding a provider which offers garden cover as standard, people can help protect themselves should they ever need to make a claim.”

According to the firm, the most popular claims received for items stolen or damaged in gardens include furniture, bicycles, ornaments and children’s toys.

Tags: result, spring, Nationwide's insurance, home insurance claims, provider, Insurance, director, home insurance covers

Chip and pin – one year on

It was more than a year ago that the UK was first introduced to the payment system of chip and pin.

February 14th 2006 was officially named Pin Day and consumers were told to brace themselves for one of the biggest changes ever seen to the way in which we paid for goods.

Of course it all went off without a hitch, despite scare mongering in some quarters that we would all suffer mental breakdowns as a result of having to remember our pin numbers.

To mark the anniversary of chip and pin, the UK payments association Apacs has released figures regarding the system and its implementation.

Apacs says that more than 185 chip and pin transactions take place every second, 138 million chip and pin cards have been issued and 98 per cent of all shop tills in the UK are chip and pin-friendly.

The association also points to credit card fraud figures, which fell in 2005 and are expected to do the same in 2006, while retailers have reported that transaction times have fallen after an initial bedding-in period.

“The rollout of chip and pin has been a tremendous success,” said Sandra Quinn from Apacs.

“Chip and pin cards now account for 97 per cent of all payment cards in circulation in the UK. As a result, it is now safer than ever to use your card when shopping, and far more difficult for fraudsters to get access to your money.”

Despite the positive figures, chip and pin technology was recently hacked into by researchers at Cambridge University as part of a project designed to test the system’s robustness.

Tags: pin technology, credit card fraud, hitch, pin numbers.To, result, part