Sort your budget out for 2010

Like many other people you may have experienced a great many difficulties in terms of your finances this year, and this is partly because many of us were not prepared for the onslaught of financial problems that were set to hit us, ranging from the recession and job losses through to increasingly difficult credit conditions. However, the last year should have taught most of us some valuable lessons in terms of finances, and one thing that many people will be planning to do for 2010 is try and sort out their finances. Read more

Tags: package, time, lenders, consolidation, store, difference unsecured debts, magazines

Is wedding insurance cover a good idea?

As a nation we Brits love to feel secure and safe with total peace of mind that we have done all we can to protect ourselves and our loved ones from a range of eventualities. This is why the insurance industry has become so huge, with Brits taking out all sorts of insurance policies to cover all sorts of circumstances. From travel insurance and home insurance to insurance for our pets, cars, mobile phones, health, and even our lives, insurance is something that gives us a sense of security – and often helps us to avoid the huge financial losses that we may otherwise have faced without it. Read more

Tags: peace of mind, specialist, store, whole lot, wedding insurance, outfits

‘Tis the season to avoid store cards

As Christmas continued to get nearer and nearer experts have been warning consumers across the UK to avoid the temptation as taking out a store card, as this could lead to high levels of debt and real financial difficulties once the festive season is over.

With December upon us millions of shoppers are hitting the high streets and shopping malls to get their gift, clothes, and other Christmas goodies, and many retail staff are just waiting to pounce and talk vulnerable consumers into taking out a store card.

Store cards are fine for those that will repay their balance in full each month, thus avoiding any interest charges, but many experts state that consumers would be far better off with a rewards based credit card, as you can still avoid paying interest by repaying the balance in full each month, you can still enjoy benefits in the form of rewards, and you have the luxury of choice, as you can use the card in any shop rather than only at a specific shop.

However, the real problem is with those that do not repay their balance in full, as store cards charge very high rates of interest, and the interest that you will pay on any outstanding balance will by far exceed any rewards and discounts that you receive. Therefore those that wish to spread repayments on their Christmas spending are strongly advised to opt for a 0% purchase credit card in order to avoid paying interest rather than an expensive and restrictive store card.

One industry official stated: ‘With storecards the advice is simple: Don’t use them, avoid the gimmicks, don’t be lured in. Invariably people forget about spending on their plastic, or they use credit precisely because they know they won’t be able to repay the debt immediately. Under those circumstances there is no more expensive form of borrowing than a storecard. The discounts can be attractive, and some storecards offer 0% deals if you spend a lot of money in-store. So if you’re adamant you need a storecard, ensure you make the most of it by keeping up to speed on all the incentives on offer.’

Tom Smith
1st December 2007

Tags: cost, interest, store, cards, high, incentives, uk

Store cards forced to admit they’re bad value

Millions of shoppers across the UK will soon be told by their store card provider that they could be getting a better deal elsewhere.

An inquiry by the Competition Commission into the Annual Percentage Rate (APR) charged by store cards carried out last year found that they were too high.

This has led to store cards with an APR above 25 per cent now being told that they must provide a warning to card holders informing them that they could be getting a better rate with another product.

These warnings will have to appear on the card statement and store card providers appear happy to comply.

“Of late, some providers have already moved their rates lower,” revealed a spokesman for the Finance and Leasing Association (FLA), which represents providers.

“Providers are getting on and implementing what the Competition Commission wants. No-one has any issues with incorporating this information on statements.”

During its inquiry, the Competition Commission calculated that the UK’s 11 million store card holders are overcharged by around £55 million every year.

Tags: George Osborne, United Kingdom, card statement, No-one, store, deal elsewhere.An inquiry, Credit card

TK hacked to the max

Millions of customers who shop at TK Maxx may potentially have been the victim of credit card fraud.

The store’s owner, US firm TJX, has revealed that a total of 45.7 million customers’ bank details have been stolen.

Information was taken from the computer systems in Watford, Hertfordshire and Massachusetts and the scam is being labelled the biggest case of card fraud ever.

A statement released by TJX said: “We suspect that customer data for payment card transactions at TK Maxx stores in the UK and Ireland has been stolen.”

“We suspect that these files contained payment card transaction data, some or all of which could have been unencrypted and unmasked.”

TJX has come in for criticism over the way it has handled the situation which it discovered in January.

At the time, the firm said the security breach had affected “substantially less than millions” of customers but today (March 30th) the true scale of the problem has been revealed.

Customers in the UK and Ireland are being told to look closely at bank and card statements to ensure that have not been targeted.

Tags: store's owner, TK Maxx, information, US, ireland, card statements, store, max

Borrowers paying too much interest

Britons are paying £9.3 billion too much interest through unsecured borrowing, leading to a worsening debt crisis.

That is according to Zopa, a marketplace for people to lend and borrow money from each other, which says that the majority of borrowers are being overcharged.

Zopa reveals that the end of 2006 saw every adult in the UK in debt to the tune of an average £4,611, with the money spread across credit cards, store cards, personal loans and overdrafts.

This is said to include £201, that the firm says is the average amount of interest which borrowers are being overcharged per year.

“The scale of personal debt in the UK is quite astonishing and the extent to which people are being ripped off by their banks, credit card and personal loan companies is simply outrageous,” said James Alexander, chief executive officer of Zopa.

“People in this country desperately need to start shopping around for a better deal. One of the best ways for people to take that important first step to getting their debt under control and managed properly is by taking advantage of the best interest rates available.”

Zopa claims to offer borrowers better deals by cutting out the banks in the whole lending process.

Those of you considering taking out a loan may find that borrowing in this way is attractive, however, the most important thing to do is to shop around for the best deal that suits your needs.

Tags: store, adult, debt, officer, Unsecured debt, GBP

Choose credit cards over store cards this Christmas

If you are planning to spread the cost of Christmas and the New Year there are a number of options available to you. For many people, particularly those lured into shops when the January sales come around, the temptation to take out a store card is irresistible, with retail employees throwing what sounds like offers in to encourage the consumers to apply for the store card. However, consumers should think carefully about whether a store card is worth it before making a commitment and spending money on such cards.

A store card can only be used in one shop or a certain chain of stores, and is therefore of no use to you if you want to pay for other items in other shops and stores. Store cards also typically have very high interest rates, so even though you might be offered a small discount on your purchases for using the store card you will more than make up for this in terms of the interest that you will pay for the privilege of using the card. With stores cards you don’t get special offers such as interest free periods, so you will be stuck with paying interest on any balance that you have on the card.

A more sensible solution for those planning to splurge out in the January sales is to get hold of a good credit card in plenty of time – one that offers an interest free period on purchases giving you time to repay the balance without having to pay interest. Even if you end up with a credit card that does not offer an interest free period, or where the interest free period expires before the balance has been repaid, you will still pay a lower interest rate than most store cards charge, and you have the added advantage of being able to use the card in other stores.

There are some advantages to taking out a store card, such as discounts on certain lines and products, but in order to really benefit from this type of deal you need to be the type of consumer that pays off the full balance on the store card each month, thus avoiding the extortionate interest charges that will otherwise be incurred. 

Tags: interest, rates, charge, purchases, cards, sales, credit, cost, store