Brits turn to credit cards three weeks after getting paid

It has been claimed in a recent report that millions of Brits are able to manage for around three weeks or so after getting paid before they are forced to turn to their credit cards. The reliance of many Brits on credit cards has increased as a result of soaring living costs, spiralling bills, frozen wages and government cutbacks. All of this has led to people being unable to manage as well as they used to in terms of their finances.

Whereas in the past consumer wages may have lasted more people for the full four week before the next payday came around, many are now finding that it lasts for only three of the four weeks, leaving them with a week where there money has run dry. This is the point where millions of Brits are turning to their credit cards to fund their living costs for the final week before payday comes around.

The research showed that around a quarter of consumers in the UK turn to their credit cards once they have run out of cash in their current accounts. The majority tend to run out of cash around three weeks after getting paid, at which point they turn to their credit cards. However, around one tenth of those that have to subsidise their monthly spending with a credit card are only able to manage for fifteen days before having to turn to their cards.

An official involved in the research said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. If you’re the type of person who doesn’t pay off their card every month, you need to look at the steps you can take to reduce monthly expenditure before turning to credit products. Budgeting is crucial at the moment and people will be amazed at how much cash they can free up each month by simply sitting down and going through their finances.”

Tags: person, type, budgeting, consumers, monthly spending, spiralling

Property prices end 2010 on low

It has been revealed by a major High Street lender that property prices in the UK ended last year on a low, having slid from the start of the year. The price of property in the UK was said to be around 1.6 percent lower at the end of 2010 than at the start of the year. The data was released by the banking giant Halifax, which said that property prices fell by 1.3 percent in December compared to the previous month.

It is thought that property prices have been driven down by a number of factors. One of these is that many homeowners are flocking to sell their homes whereas there is a distinct lack of interest from buyers. This is because many buyers are unable to get the mortgage finance that they need due to continued restrictions in the mortgage market, and many others simply don’t want to make a huge financial commitment in the current financial climate and with the uncertain future with regards to jobs.

A spokesperson from the Halifax said that if homeowners become more reluctant to sell this year the falling property price trend could be halted. He also said that it was unlikely that there would be much change in terms of movement in the property market over the course of this year, and this was because interest rates were unlikely to change.

The Halifax said: “Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand.”

Another mortgage expert added: “While there has been an easing down of prices, as supply has come through and demand has weakened, in certain towns and cities, not least the capital, the right type of property is still commanding the right sort of price.”

Tags: climate, earnings growth, Real estate, percent, type, end, mortgage, future

Repayment and interest only mortgages

There are many different mortgages on the market these days, with something to suit most needs and circumstances, but all mortgages come under one of two umbrellas, which are repayment mortgages (also known as capital and interest mortgages) and interest only mortgages. When you are looking for a mortgage you need to decide whether you want to opt for a repayment mortgage, which is the most popular type of mortgage, or an interest only mortgage. Read more

Tags: repayment mortgages, UK mortgage terminology, taken out, interest mortgages, time buyers, interest only mortgages, mortgage term, type

‘Viligence’ advised to avoid identity theft

Consumers are advised to exercise “vigilance” in face of identity theft risk, rather than rushing to buy insurance.

An industry expert has said that after news that the personal information relating to 25 million people in the UK has been stolen, consumers must think about the options available to them for protection.

Peter Gerraud, head of insurance research at moneysupermarket.com, explained that while there are products on offer that cater specifically for this type of cover, “many of these products are dubious value for money”.

“Most will cover losses if fraudulent transactions take place. However, if consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course anyway,” he continued.

He added that consumers should be sure to check statements on a regular basis to avoid the “time, stress and effort” involved in resolving the problems identity theft can cause.

Tags: uk, identity theft, type, dubious value, identity theft risk, provider

Insurance By Age and Experience

Mature beyond your years

Just as young people get penalised for being young by the insurance companies there can be disadvantages to being old too. But there are also some advantages. How do the insurance companies treat drivers of more advanced years? Read more

Tags: insurer, motorists, Debits, type, heart, SAGA Driver, Clubs It, 14 days