Barclaycard acting irresponsibly

Credit card provider Barclaycard has been accused of acting irresponsibly after it was found that the financial giant had been contacting customers in order to try and encourage them to take money out on their credit cards. With many consumers strapped for cash in the current financial climate Barclaycard appears to have been taking advantage of the situation by trying to talk its credit card customers to use their cards in order to get their hands on instant cash. Read more

Tags: advance, card fraud barclaycard, worst periods, student, letter, bad advice, limit, recent additions

Student mortgages remain popular

Despite the imminence of a market cool down, students are still looking to invest in property in their university town.

According to recent research by Abbey mortgages found that as many as 66,000 students already at university want to get a mortgage on their own place.

Furthermore, it found, 14 per cent of the student population hope to buy a house in their university town. This represents an impressive total of 154,000 students.

Nici Audhlam Gardiner, head of mortgages at Abbey, commented: “Britain’s student population continues to be a source of income for buy-to-let property investors, many of whom are parents of the students or the students themselves.”

He added that the most important issue to think about is affordability, especially when getting a buy-to-let mortgage.

Many students (44,000) have parents who are thinking of investing in property in a university town. The same amount hopes to invest with friends whilst at university.

With increased concern to find “green” financial products, the Co-operative bank has advised that there are many different options in this field from lenders and borrowers must shop around to find an option that best suits their needs.

Tags: amount, town, Subprime mortgage crisis, property investors, imminence, Britain's student population, student, Nici Audhlam Gardiner

Students need to be more careful over getting into debt

According to a recent report the level of student debt in the UK is on the up, with many students graduating from university having racked up huge levels of debt along the way.

One credit reference agency is now urging students to think very carefully before getting themselves into debt, and to ensure that when they do take out credit cards and loans that they use the money sensibly and for necessities, and they make the repayments sensibly and on time.

Melanie Mitchley, an industry expert from the firm Call Credit has stated that students need to be mindful of the effects of getting into debt, and need to be careful about building up debt. She stated that new students need to manage their finance more sensibly, and need to keep on eye on their finances.

According to Barclay’s figures former students have been graduating with debts that are in excess of £13,000 on average. Another survey into student debt indicates that students could soon be graduating with average debts of around £20,000.

Ms Mitchley stated: “We are urging all students whether freshers or in their final year to be aware of the potential pitfalls if they don’t take control of their financial affairs. Our experience has shown that taking on credit needn’t be a problem if you manage your finances well and ensure you keep up your repayment.”

Another survey carried out by the Halifax showed that credit cards, overdrafts, and loan were amongst the most common forms of debts for students, with 43% of students surveyed having borrowed on credit cards, 73% using an overdraft facility, and 83% having taken out a loan.

One Halifax spokesperson stated: “These are significant sums for anyone, let alone someone who is not yet working full-time.”

Tom Smith
5th September 2007

Tags: debt, credit, cards, interest, owe, repayments, Loans

Students urged to cover contents

A significant number of the UK’s students could be starting the year’s learning with inadequate home contents insurance, putting them at risk of financial loss.

That is according to new research from Abbey, which found that around 30 per cent of undergraduates will probably start the academic year without protecting their belongings.

Despite the fact that 95 per cent own a computer, some 14 per cent of students have not thought about insuring their possessions or think they are not of a high enough value to warrant cover.

Some seven per cent said they would not afford the cost, while nine per cent didn’t get around to arranging it or spent the money for it on something else.

“Over 60,000 students believe the value of their belongings does not justify buying insurance, but we find many people are shocked with how much their belongings are actually worth,” said Abbey’s head of insurance marketing, Prasad Shastri.

The study also found that students will take around £3,300 on average worth of items with them to university this year.

A separate report from Cornhill Direct encouraged parents recently to check their own home insurance policies to ensure they cover student offspring’s belongings.

Tags: university, student, belongings, home, risk, Business and Economy, home insurance, money

Debt considered acceptable because of student loans

According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable.

According to the financial education charity Credit Action student loans have become such a norm that being in debt has become something of a fact of life. And according to officials from Credit Action these student loans have nothing to do with a need for money, but more to do with the easy access to student loans.

One official from Credit Action described student loans as ‘government endorsed debt on a massive scale’. Of course, students can find themselves in need of financial aid at some point during their education, but the easy access to student loans has resulted in many students just taking out loans for the sake of it rather than through real need, placing them on a downward debt spiral that could lead to problems later in life.

According to Chris Tapp from Credit Action there is not enough caution exercised with student loans, and the easy access to this type of finance has made debt appear to be acceptable even for the younger generation. With consumers levels in the UK at sky high levels this has raised concern amongst some charities and campaign groups, as those in their late teens and early twenties begin a debt ridden life before they have even completed their education.

According to Mr Tapp student loans enable students to live lifestyles that are beyond their means – something that they then become used to, and something that many have to continue funding through further finance, as their initial jobs after leaving college or university is unlikely to be a high paying one.

Tom Smith
17th June 2007

Tags: cheap, credit, cash, action, rate, education, Loans, money

Getting money advice from mum

The majority of people look to their mother as a financial role model and that seems to be a good thing.

A survey by Scottish Widows found that one in five of us try to follow the financial example set by mum – ahead of dad, our brothers and sisters and even bank managers.

In total, 38 per cent of us try to emulate the example set by our parents as a partnership and according to Scottish Widows this means we should all be financially stable in the future.

A huge 61 per cent of people over the age of 55 claim that they feel financially prepared, while 73 per cent of people aged between 18 and 24 fear for their future financially.

“It seems that when it comes to money, mum really is the word,” commented Mike Hoban, customer and brand marketing manager at Scottish Widows.

“We all need positive role models in life so it’s great that our mums are the people we look up to financially – but of course this shouldn’t replace professional advice.

“Getting a proper grip on our finances is crucial – not just to be able to fund day to day living, but also to prepare for our future financial dreams and ambitions,” he added.

Looking to our parents as financial role models can have positive effects on our banking, however, it might be worth considering that your parents may not have had to deal with credit cards and student loans.

Tags: ambitions, brand marketing, financial example, bank managers, Widows