Many fail to take out travel insurance cover

It has been reported that many people who are setting off on their travels do not bother to take out any form of travel insurance cover, putting themselves at risk of crippling financial costs in the event of accidents, illness, theft, loss or theft of belongings. Figures were released by the travel association ABTA, showing just how many people do not bother about taking out travel insurance.

The company claims that nearly 20 percent of travellers do not take out travel insurance cover, with nearly one in five British travellers said to have not bothered with this important cover. The company also said that many travellers have real misconceptions when it comes to travel insurance cover.

The travel firm carried out a survey and found that around 16 percent of those polled thought that in the event of a medical emergency the government would pick up the tab if there was no travel insurance cover in place. The results showed that 26 percent of younger travellers thought that any medical and related expenses would be funded by the Foreign Office if there was no medical cover in place.

The number of people failing to take out any insurance cover whilst holidaying in the UK was particularly high, coming in at 55 percent. The survey also found that 17 percent of consumers did not consider travel insurance to be important. However, officials have said that this sort of cover is vital for travellers, as it covers things such as medical expenses, treatment, replacement of lost cash, cancellations, delays, damage to belongings, theft, and a myriad of other things.

One industry official said: “It’s amazing how many people go off on their travels without taking any insurance out. However, it’s only when something bad happens that they realise just how expensive a mistake this can be, and how avoiding paying a few pounds for cover can end up potentially costing them hundreds or even thousands of pounds.”

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Avoiding credit card pitfalls

Credit cards have proven invaluable to consumers in the UK over the years, and with such a wide range of cards now available there is something to suit everyone, from those looking for interest free credit to those with poor credit who want a chance to try and rebuild their credit rating. Credit card offer many excellent benefits, including total ease and convenience, as well as the chance to take advantage of a range of rewards such as cash back, rewards, air miles and more. Many cards also offer benefits such as extended warranty on purchases, protection against loss or damage of purchases, emergency card replacement services, and more. Read more

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Credit card restrictions could increase debt for consumers

Credit card restrictions could lead to consumers taking on more expensive debt, one financial expert has claimed.

Moneywise magazine has said that consumers could be more likely to use their overdraft facility if credit cards are restricted, which could incur bank charges which would be a more expensive short term debt.

Rachel Lacey, editor of the magazine, said that credit conditions are going to be tight for the rest of the year.

“I think whether you’re a new borrower seeking a fresh sort of credit, like a new loan or a credit card, it’s going to be hard,” she continued.

The magazine also said that stricter lending criteria could come as “a bit of a shock” to a consumer culture accustomed to the idea of ’spend now, pay later’.

According to findings from uSwitch, the price comparison and switching website, almost one in four UK adults are finding debts unmanageable.

Up to 9.5 million have maxed out on one form of credit in the last six months and 38 per cent have had a credit card application rejected.

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