Credit card holders ‘wasting money’ on withdrawals

Consumers in the UK who use their credit cards in order to make cash withdrawals could find they are paying way over the odds in order to do so.

According to research from Moneysupermarket, Britons withdraw £8.3 billion using their credit cards annually – but they could be paying 27p per pound in interest and charges over the year.

The average amount paid across the major providers on one £20 withdrawal a month over the course of 12 months is 15 per cent, or £36.

“At a cost of up to 27p for every pound taken out, this is an exceptionally expensive way to spend,” said the price comparison site’s head of credit cards Rob Kenley.

“Wherever possible you should only withdraw cash from your current account, but we realise sometimes people face unexpected emergencies.”

A separate study from Abbey found recently that 23 per cent of credit card holders intend to consolidate different credit cards using one that offers a good value deal.

Tags: card, britons, moneysupermarket, unexpected emergencies, wasting money, 12 months, cent, wasting

Hips to benefit new buyers

The controversial introduction of Home Information Packs (Hips) to the home-selling process is just days away and the row over them continues.

Hips are due to be introduced on June 1st but they face a last-ditch attempt at derailment in the House of Lords tomorrow (May 23rd).

In light of this, the Association of Home Information Pack Providers (Ahipp) has been singing their praises, particularly the help they will offer first-time buyers.

Ahipp points to the current process which sees first-time buyers forking out for surveys and other extras once a price has been agreed.

This can cost thousands of pounds and often highlights problems which force the buyers to withdraw their offer, essentially wasting much-needed cash.

Added to this, another buyer might come in for the same property afterwards and go through exactly the sae process.

Ahipp argues that with the introduction of Hips, this process will be eliminated, saving money for buyers and ensuring that there is a steady supply of first-time buyers.

“A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy,” said Paul Broadhead from Ahipp.

“The introduction of the Hip will greatly benefit this vulnerable group of soon to be home owners.

“As the vendor will be responsible for acquiring the Hip, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches,” he added.

Although Hips have been a hot topic for those with or considering getting a mortgage, it seems they mean nothing to some.

Property firm fish4homes recently carried out a survey which found that one in ten UK adults believe Hips is a sexually transmitted disease.

Tags: House of Lords, Information Pack Providers, wasting, survey, influx, tomorrow, Association