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Wedding day 'can be paid for with loans'

Wed, 6 Aug 2008 15:44:10 GMT

Couples arranging their wedding day could find that a secured loan helps make their dream marriage come true, according to a personal finance website.

The Thrifty Scot has stated that borrowing money can be easy and that it is often working out how much is needed that can be difficult.

In order to make the process easier, the group has advised people to draw up a list of exactly what it is they require for their big day and then research the market for a good rate of repayment.

"For a secured loan you need to have some sort of collateral, such as a car or a home. You will have a better chance of obtaining a higher amount of loan if you have collateral," commented the Thrifty Scot.

The company earlier this week said that lenders are more likely to be granted attractive interest rates on loans should property be used as collateral.

Bank reports increase in home improvements loans

Mon, 4 Aug 2008 16:18:37 GMT

There has been a rise in the number of people taking out home improvements loans, according to a high street bank.

Research from Lloyds TSB Personal Loans has found a 19 per cent increase in homeowners taking out extra money to spruce up their house, with a new kitchen the biggest reason.

According to the institution, 79 per cent want an improved place to cook, 59 per cent a new bathroom and 47 per cent an extension to their property.

David Wishart, Lloyds TSB director of personal loans called the rise in loans a "significant increase".

He said: "For the last decade homeowners have been able to sit back and rely on rising property prices to increase the equity in their home but sadly this is no longer possible."

Meanwhile, consumer website Moneyfacts has revealed that 14 different lenders have upped loan rates since May.

Banks, government 'responsible for credit crunch'

Fri, 1 Aug 2008 16:32:19 GMT

Monetary institutions as well as the government can be partially blamed for the country's current financial situation, it has been claimed.

According to Fool.co.uk head of personal finance David Kuo, two in seven Britons believe that the banks are responsible for the credit crunch.

Mr Kuo stated that "for lulling people into believing that there would be no return to boom and bust", the government should also be blamed.

"Both the banks and the government have to take equal responsibility for the credit crunch," the expert commented.

The survey from the finance group also found that 23 per cent of people in the UK shoulders places the blame for their current monetary situation on themselves.

Spiralling interest rates as well as a drop in house prices have resulted in homeowners who have taken out secured loans feeling the pressure, according to a report from the Daily Mail.

Vehicle depreciation 'can be sped up by smoking'

Tue, 29 Jul 2008 15:17:59 GMT

Motorists who smoke in their vehicles could find that the value of their cars and vans falls because of their habit, it has been claimed.

According to research conducted by British Car Auctions (BCA), presentation plays a big part in how much a model costs when it is bought again.

The company remarked that the stains left by the activity as well as the smell can seriously affect its worth, car insurance customers may be interested to know.

BCA PR manager Tim Naylor commented that employers should try and stop workers from smoking as they drive as a result.

He said: "This will avoid the lingering smell of cigarettes hanging in the interior as well as eliminate the risk of discolouring and leaving scorch marks on the interior trim or upholstery."

Last year's public enclosed spaces smoking ban meant that it is illegal to light up in taxis and work vehicles.

Take a year off mortgage payments with Nationwide competition

Tue, 29 Jul 2008 15:17:34 GMT

Homeowners will be given the opportunity to go without paying their mortgage for a year should they win a new building society competition.

According to Nationwide, any customer who has a mortgage interview in a branch or over the phone between July 28th and September 30th will be entered in a prize draw.

Ten winners will then be picked randomly from the hat and given one year where they do not have to pay their mortgage.

It feels "great to be in a position to launch this prize draw", remarked Matthew Carter, Nationwide director of mortgages.

The official remarked: "If customers get a mortgage interview before the end of September, they stand a chance of being mortgage free for a year - an added incentive to find a new deal before their current one runs out."

Last year, Nationwide released Better Society 2007, its fifth sustainability report.

UK consumers 'living on the edge financially'

Fri, 25 Jul 2008 14:43:14 GMT

People in the UK are currently walking a financial tightrope, it has been claimed.

The average monthly outgoings in the UK currently stand at £1,445, while the typical amount of accessible savings accrued is £2,474, according to Yorkshire Building Society.

It added that the average Briton would only last around 52 days on their accessible savings.

Furthermore, the typical self-employed worker would last the least amount of time on money they have put away - 51 days - while a widow would last 120 days.

"The research reveals that both state benefits and savings are not viable options for the majority of consumers to rely upon for an adequate length of time," said Tanya Jackson, corporate affairs manager for the bank.

Meanwhile, money charity Credit Action has revealed that people in the UK currently have a combined personal debt mountain of £1.4 trillion.

Secured loans 'are an option for those in debt'

Wed, 23 Jul 2008 15:26:58 GMT

People in debt and looking for an option to alleviate such arrears could turn to a secured loan, according to a financial site.

Thinkmoney.com has claimed that a number of alternative debt solutions currently on the market are offering Britons ways in which to curtail what they owe.

A spokesperson for the financial solutions body stated that cost reductions are making it more difficult for companies to offer loans.

However, the expert stated that falling prices are providing enough equity to make a secured deal appeal to people.

The source said: "Talking to the right company can make all the difference between being offered credit at a competitive rate and being unable to avail a secured loan at all."

A new sourcing system was this week launched by BDS Secured Loans in Hampshire.

The procedure came into effect on Monday July 21st.

Graduates 'should not rush to pay debt'

Tue, 22 Jul 2008 11:34:47 GMT

People leaving university do not need to hurry when paying off their student debt, it has been claimed.

According to consumer website Moneyfacts.co.uk, the amount borrowed when studying does not have to be paid off straight away, as low interest rates apply and the debt can be paid off throughout working life.

The domain added that graduates need to make sure they get the best possible deal for them by shopping around the market.

"Searching for the best current account provider may be the last thing on many graduates' minds. But by taking the time to shop around, they could find an account that suits their circumstances," Moneyfacts.co.uk commented.

Meanwhile, figures released by money charity Credit Action show that the total amount of personal debt accrued by people in the UK stood at more than £1.4 trillion at the end of May 2008.

UK locations 'more popular after screen exposure'

Tue, 15 Jul 2008 14:48:02 GMT

Locations in Britain featured in films and television programmes have encouraged an increase in tourism, it has been claimed.

According to the Tourism Business, places in the UK featured in movies such as Pride & Prejudice, the Da Vinci Code and Gosford Park saw larger visitor figures last year.

This means that people could be looking to take out a travel insurance policy and heading to locations seen in British movies Adulthood and the new James Bond adventure Quantum of Solace, released later this year.

Screen time is making areas more popular, according to Martin Evans from the Tourism Business.

He said: "Villages like Goathland, in the North Yorkshire Moors and used in the Heartbeat TV series and attractions like Alnwick Castle in Harry Potter, have also seen visitor figures more than double as a direct result of being seen on screen."

A similar spike in tourism was recorded in Tunisia due to sets in the country being used to film the Stars Wars movies.

Holidays 'will not be cancelled in wake of credit crunch'

Mon, 14 Jul 2008 14:39:03 GMT

British holidaymakers will not be giving in to the credit crunch and cancelling trips away this summer, it has been claimed.

Research carried out by Luxury Travel Magazine found that vacations will not be sacrificed this year, adding that they were more likely to be cancelled due to low funds ten years ago.

Only 12 per cent of people in the 1,003-strong survey stated that they thought trips away were not a necessity, it added.

Luxury Travel Magazine editor Alyson Cook commented: "People are less inclined to give up their holiday", travel insurance customers may be interested to know.

"Particularly with the vagaries of the weather the holiday is becoming more sacrosanct in their budget. I also think it has a lot to do with the emphasis on family holidays now," she said.

Meanwhile, the Norwich Evening News has revealed that both David Cameron and Gordon Brown will be heading to holiday destinations in the UK this summer as a means of defying the credit crunch.

Bank of England 'disappointing 31 million people'

Fri, 11 Jul 2008 16:26:25 GMT

The Bank of England is disappointing 31 million British citizens, it has been claimed.

Earlier today, the Bank's monetary policy committee announced that it is to keep interest rates on hold, much to the disappointment of a number of Brits, according to Fool.co.uk.

Head of personal finance for the consumer website David Kuo remarked that people are feeling "increasingly stretched" due to greater fuel costs, household budgets and food bills.

Mr Kuo added that homeowners should save in order to make sure that they are comfortable in the event of more troubling times in the future.

He said: "Make yourself a cash-cushion now. It's the most comfortable thing to sit on in a recession and it beats sitting on your hands any day."

This comes as research from money charity Credit Action has revealed that people in the UK have built up a personal arrears mountain of over £1.4 trillion.

Bank of England 'disappointing 31 million people'

Thu, 10 Jul 2008 15:34:09 GMT

Citizens Advice 'welcomes' Financial Capability Action Plan

Wed, 9 Jul 2008 14:46:31 GMT

Citizens Advice has spoken out in favour of the government's new Financial Capability Action Plan.

The group has stated that it believes the plan, introduced by the Financial Services Authority, is necessary in order to meet demand for impartial monetary advice.

Furthermore, it commented that it is important that the service remains free of charge and that the national system could help the "UK economy as a whole".

It can also help reduce the risk of debt problems while ensuring that Britons save, the body said.

"Today more than ever before people need access to free, impartial financial information and advice so that they can plan for their and their family's future effectively," the company commented.

Citizens Advice's origins trace back to 1924, after a public assistance report concluded that advice centres should be set up for the public.

Some 200 bureaux were set up in 1939.

Seven million 'have not left the UK on vacation'

Tue, 1 Jul 2008 14:30:48 GMT

There are close to seven million people in the UK who have not left the region to go on holiday, it has been reported.

According to Sainsbury's Bank, 15 per cent have stayed within the British Isles for vacations, with almost one in four of these hailing from the east Midlands and Anglia.

But Neil Laird, travel insurance manager for the company, remarked that a holiday within the UK still requires a thorough insurance policy.

He said: "Many of the problems that you can encounter abroad can also happen here in the UK on holiday, so it is important to ensure that you have adequate cover."

This comes as a Boots poll has revealed that Benidorm is the holiday destination people in the UK would most likely not tell anybody they were visiting, according to News Guardian.

It added that Paris was the location people were most proud of going to.

Consumers 'turned to debit cards first in 2007'

Mon, 30 Jun 2008 15:58:17 GMT

Debit cards are still the number one choice for making payments, according to a new report.

The Way We Pay 2008 report from UK payments association Apacs found that the method came out on top among the British public for the seventh year running.

It added that 62 per cent of plastic card spending over the course of the year involved a debit card, with £221 billion the total amount splashed out.

Sandra Quinn, director of communications at Apacs, remarked that "there has been no sudden spike in credit card spending" in the wake of the credit crunch.

"In fact, credit card spending up until the end of May increased by only 1.2 per cent - below the rate of inflation," she said.

This comes as the Scotsman has reported that a crackdown against fraud abroad could result in hundreds of thousands of holidaymakers having their cards rejected over the summer.

Festival revellers 'should look to stretch their cash'

Fri, 27 Jun 2008 16:30:49 GMT

People heading to festivals over the summer have been advised to make their cash stretch as far as they can.

High street bank Alliance & Leicester has found that 24 per cent of women over the age of 50 attend gigs - more than the number of men heading to concerts.

Emma Walkley, current account manager with the firm, stated that the bank offers a product to people over 50 who still feel young at heart.

She said: "Our Premier 50 Current Account has been especially tailored for the go-getting age group of over 50s, offering a market leading rate of 8.5 per cent AER as well as bespoke lifestyle benefits."

This weekend the Glastonbury Festival kicks off. Among those performing are rap star Jay-Z, crooner Neil Diamond and Leonard Cohen.

Last year's event featured groups the Killers, Arctic Monkeys and Kasabian, along with Amy Winehouse and Liz Green.

New home insurance aggregator "unique"

Thu, 26 Jun 2008 16:12:50 GMT

A new home insurance comparison service recently launched is a "unique" way for people to pick up a good deal, it has been reported.

Confused.com has stated that there a competitive quote is only a few clicks away for people visiting their website.

In addition, it stated that the company is "committed to providing a first-class service" for those wishing to gain a deal for an overseas property.

Chief executive officer of Confused.com Carlton Hood remarked that the aim of the product is to give consumers "the most comprehensive and accessible service".

"The beauty of our new offering is that the consumer can now purchase insurance for their holiday homes from a UK broker, without any of the hassle of buying locally in a foreign language," he said.

Earlier this weeks, Confused.com advised Britons heading abroad to check their home insurance policies to ensure their properties are covered for all possible scenarios.

Smokers count cost of giving up

Wed, 25 Jun 2008 15:31:28 GMT

Quitting smoking has a number of financial benefits in addition to health bonuses, it has been reported.

According to Moneyfacts, NHS figures show that a smoker on 30 cigarettes per day can save around £250 per month by giving up.

The NHS added that 165,000 chose to kick the habit last year - up from 129,000 in 2006.

It also stated that life insurance companies offer more generous deals to those who do not smoke.

"On top of this most life assurance companies consider customers to be non-smokers if they have not smoked for 12 months. Anyone who gave up when the smoking ban came into force would now fall into this category," commented the firm.

The ban on smoking in public places indoors came into effect on June 1st 2007.

It was introduced after Scotland and Ireland brought in bans.

Summer spenders to pick up £7.89bn bill

Tue, 24 Jun 2008 14:54:25 GMT

People in the UK will not have their spending curtailed by the credit crunch this summer and will part with around £7.89 billion, it has been claimed.

According to research from Sainsbury's Bank, 42 per cent of money being spent this summer will be put on credit cars, while 11 per cent of people will put more than half of their bill on plastic.

Consumers expect to spend an average of around £305.90 on purchases such as clothes and electrical appliances in the sales over the period, the research added.

"If you are going to use a credit card in the summer sales, it pays to use one that gives you attractive rewards that are not only easy to collect but also redeem so that you really are earning whilst you spend and getting a little back," commented Sainsbury's Finance head of cards Donald MacLeod.

Research from money charity Credit Action has found that the UK is in personal arrears of more than £1.3 trillion.

Banking online 'preferred over social networking'

Mon, 23 Jun 2008 15:56:41 GMT

Using the internet to keep up with finances is a more popular pursuit than staying in touch old friends through social networking, according to new research.

A study from online bank cahoot cited by Abbey shows that people in Britain spend more than three billion hours per year switching money between accounts on the internet.

This can be compared to the 2.7 billion hours Britons spend online annually on websites such as MySpace and Facebook, the company added.

Matthew Timms, cahoot director, remarked that online banking is currently the biggest draw of the internet.

He said: "We're flocking to internet banking, where we can instantly access and manage our finances at a time and location of our choice as well as pick up some of the best rates on the market."

This comes as comScore figures have revealed that Facebook has now overtaken MySpace as the internet's most popular social networking site.

Two in three 'fall out on holiday'

Fri, 20 Jun 2008 16:13:24 GMT

A summer holiday can often result in two out of three people falling out with friends or loved ones, it has been claimed.

The travellers cheques department of American Express has conducted research which shows that 65 per cent of holidaymakers argue even before the plane has left the ground.

Respondents indicated that what to pack was a big issue (48 per cent), as well as getting to the airport on time (40 per cent) and the quality of the accommodation (17 per cent).

According to Kirstie Bayley, director at American Express Travellers Cheques, "holidaymakers have a lot to think about when they go way", especially financially.

She said: "The last thing they are going to want to worry about is money. Sorting your travel money in advance of your holiday can alleviate this and buying travellers cheques can mean you have one less thing to worry about."

Summer officially begins on June 21st with the summer solstice.

Half of Britons 'have never taken financial advice'

Wed, 18 Jun 2008 15:31:03 GMT

More than half of the people in the UK have never taken out any type of financial advice, it has been reported.

According to research from Zurich, 57 per cent of adults have so far refrained from enlisting the services of a financial adviser.

This figure reaches 70 per cent among single people and 73 per cent for people who are in a relationship but live on their own.

Director of life marketing at Zurich Tony Solomon remarked that the research proved "troubling" reading.

He said: "The sheer number of people walking blind into their financial decision-making presents a disturbing trend in society and an alarming picture for the future."

At the end of April 2008, the total amount of personal debt in the UK stood at £1.436 billion, according to Credit Action research.

It added that in the UK the average amount of household debt is £57,683 including mortgages.

Traditional savings accounts 'still popular'

Tue, 17 Jun 2008 17:09:10 GMT

A survey has found that Britons continue to keep faith with banks, with the majority entrusting the institutions with their savings.

Despite economic uncertainty, savings accounts are still favoured by 55 per cent of consumers, according to the poll by MGM Advantage.

Of these, most were women, with 60 per cent expounding the security benefits of a bank compared with just 48 per cent of men.

Plymouth was identified as the area most likely to shy away from financial institutions, with confidence levels low since the onset of the credit crunch.

Across the whole nation, one in 20 would prefer to keep the money left over from household bills, mortgage repayments and home and car insurance premiums safe under their mattress rather than depositing it in a bank.

According to April figures from the British Bankers' Association (BBA), personal savings deposits are on the rise, with annual growth now standing at 6.2 per cent.

Consumers in debt 'have a range of options'

Thu, 5 Jun 2008 15:52:53 GMT

Consumers struggling to meet recent increases in mortgage repayments as well as rising energy and food bills should consider debt consolidation, according to an industry expert.

James Jones, the consumer education manager at Experian, claimed that such a move could help prevent finances from spiralling "out of control".

He said: "People should regularly evaluate their finances. I would recommend regular evaluation, monthly or quarterly.

"Debt consolidation is one of a range of options. I would encourage people to always speak to their lenders if they are struggling to make payments and if they feel the situation is getting out of control."

Recent research by CreditExpert.co.uk found that just 26 per cent of consumers are aware of the amount they need to repay on their loans, while one in ten respondents were clueless on the total debt they have currently accumulated.

Meanwhile, just 20 per cent admit to planning finances once every six months or less.

Inheritance 'makes some purchases possible'

Fri, 30 May 2008 15:24:17 GMT

Paying off the mortgage is an option only possible in the event of a big inheritance, according to new research.

Engage Mutual Insurance has reported that 23 per cent of people believe that fully paying off a mortgage is only possible with a lump sum.

Some 21 per cent of people would use a large inheritance to buy either a holiday home or a second home, while 19 per cent would take the lump sum and travel around the world.

A further 17 per cent would use the opportunity to buy a new car, while 12 per cent would retire if the legacy was hefty enough.

But Karl Elliot, speaking on behalf of Engage Mutual, said that it is "worrying" how many are relying on inheritance.

He said: "Whilst inheritance can be a great financial help it is not something we can control. We encourage people to take control of their families' futures and save little and often."

Earlier this month, Mr Elliot urged people with financial worries to seek help.

Consumers 'tempted into debt by cars'

Thu, 29 May 2008 16:28:14 GMT

People are most likely to get into debt buying a car that they cannot afford, according to new research.

Global information services company Experian has found that flash vehicles are the top reason why consumers end up in debt.

The group believes that this is down to image, stating a third of UK adults admit that how other people perceive them influences their purchases.

Kirk Fletcher, managing director of Experian's automotive division, commented that the impact of the credit crunch on consumer confidence is "significant".

"This survey highlights the fact that the consumer's desire for a car that projects the right image remains as strong as ever," said the official

This comes as research from money charity Credit Action shows that people in the UK have amassed a total personal debt mountain of more than £1.3 trillion.

'More than £4bn per year spent on digital TV'

Wed, 28 May 2008 15:19:19 GMT

People in the UK spend more than £4.2 billion each year on digital television, according to new research.

A study from uSwitch.com also found that one in four users is not happy with the service they received.

It stated that Virgin Media has the smallest proportion of satisfied customers (32 per cent), while 76 per cent of those with Sky were happy.

Communications expert at uSwitch.com Steve Weller remarked that both firms still have catching up to do when it comes to customer service.

"Sky and Virgin will have quite a challenge on their hands convincing customers to part with their hard-earned cash whilst expecting them to accept the current levels of customer service on offer," he said.

Meanwhile, This is Wiltshire has reported that an increasing amount of people in the region are changing their television service to a digital one.

This comes ahead of the official digital switchover in 2010.

Tips for football fans headed to Moscow

Fri, 16 May 2008 16:37:15 GMT

Football fans making the trip to Moscow for the Champions League final have been issued a number of tips to make sure their journey runs smoothly.

People headed abroad for the all-England final between Manchester United and Chelsea have been told by M&S Money to place an order for their Russian currency as soon as possible - as it is not always available.

In addition, the company added that withdrawing from an ATM machine in the country could also result in large fees.

Fraser Millar, head of M&S Travel Money, commented that the firm is expecting big demand for rubles.

He added: "If fans have trouble getting Russian currency we recommend they take US dollars or euros which they can change in at banks or exchange offices in Moscow."

Yesterday, police in Moscow warned that it will not tolerate the same behaviour at the game from British football fans as was seen in Manchester for this week's Uefa Cup final between Rangers and Zenit.

Half of Brits 'would shun repairs'

Tue, 13 May 2008 16:21:11 GMT

A significant amount of people in the UK would choose not to attempt to repair an electrical device if it stopped working, according to new research.

Legal & General found in its Changing Face of British Homes report that a stereo, DVD or mp3 player would simply be binned and replaced if it was broken.

The findings show that 25 to 34-year-olds are the most wasteful, with 91 per cent choosing to ditch rather than fix, while people in the south of England were also found to nix repairs (88 per cent).

"With environmental issues increasingly on the public agenda, it is surprising that such a large number of us, 86 per cent, are still choosing to replace our household goods and possessions rather than try to repair them," said Ruth Wilkins, head of communications at the company.

Cost could be one reason why Britons do choose to repair rather than replace.

Money charity Credit Action has reported that the amount of personal debt in the UK currently surpasses £1.3 trillion.

M&S Money offers Champions League tips

Fri, 2 May 2008 16:28:42 GMT

Finance group M&S Money has given a series of tips to Manchester United and Chelsea fans heading to Moscow for this month's Champion's League final.

According to the body, the average price they can expect to pay for a hotel room is £236, although huge demand is expected of the 35,000 hotel rooms in the city.

It added that it is a good idea to shop around when exchanging pounds into rubles before heading to Moscow and to avoid withdrawing money from foreign cash machines.

Fraser Millar, head of M&S Travel Money, commented that the group is expecting an increase in demand for the currency.

He said: "If fans have trouble getting Russian currency we recommend they take US dollars or euros which they can change in at banks or exchange offices in Moscow."

Manchester United and Chelsea booked their place in the final this week after defeating Barcelona and Liverpool respectively.

Most couples 'want to separate their money'

Wed, 30 Apr 2008 15:04:12 GMT

A new poll has found that most couples would separate their money from their partner's if they could.

Research from money transfer company PayPal has found that 17 per cent do not want to be responsible for their partner's spending, while 12 per cent say they do not want to argue with their other half over finances.

Indeed, more than half of couples had their first argument about money while they were dating, with 27 per cent adding that it came post-nupitals.

Cristina Hoole, spokesperson for PayPal UK commented that there is a growing trend of people keeping their finances separate.

She said: "It also appears that arguments over money are most frequent after people have been in a relationship for a while, perhaps people wait until they feel settled with their partner before bringing up the sticky subject of finances."

This comes as Ernest Harburg, professor emeritus with the U-M School of Public Health and the Psychology Department, has stated that arguing with one's spouse can be healthy.

Stop-start system 'appeals to drivers'

Tue, 29 Apr 2008 15:32:09 GMT

Motorists in the UK are becoming increasingly interested in technology which cuts out the engine when it is not in use, it has been reported.

Research from car supermarket Motorpoint found that 75 per cent of drivers would like their vehicle to do this, but limited choice means that they cannot pick up a car with the feature, Channel 4 has stated.

The news source added that such technology could see motorists save eight per cent on fuel costs in congested areas.

According to Motorpoint operations director Paul Winfield, the feature should be incorporated more fully across the industry.

He said: "In these days of increasing fuel prices and demands for lower CO2 emissions, it's surprising that this tried-and-tested technology isn't already more widespread."

Motorpoint recently found that 18 million drivers are against the 20 mph city speed limit suggested by London mayor Ken Livingstone.

Consumer site warns over pet insurance

Tue, 29 Apr 2008 15:31:45 GMT

People in the UK looking to own a pet should consider the financial implications of the move before picking one up, it has been claimed.

According to Sainsbury's Finance, it costs just under £9,000 to own a dog in today's climate - factoring in food, equipment and pet insurance policies.

In addition, it could be that a pet has an effect on a home insurance policy, with any damage caused by them potentially leading to a claim.

Head of pet insurance Steve Johnson remarked that it is "important" for consumers to consider their finances before taking on a pet.

"The good news is that owners can help alleviate some of the financial burden and cost of veterinary bills by purchasing pet insurance at the point of buying their pet. Pet insurance need not be expensive," said the official.

This comes as the Swindon Advertiser has reported that a community centre in Spire recently raised funds for repairs at Wroughton Parish Hall by offering sponsored dog walks.

10 per cent 'think money is safest under the mattress'

Mon, 28 Apr 2008 14:55:15 GMT

One in ten people in Britain believes that their money would be safest stowed under their mattress, according to new research.

Newcastle Building Society has found that this is up almost 300 per cent in light of the recent credit crunch, reaching a high of 15 per cent in the midlands and Wales.

Confidence in banks has gone down some five per cent over the last year, the body added, while 19 per cent would opt against investing with financial institutions if they could.

According to Wendy Lee, commercial director at Newcastle Building Society, the results are a product of both the hype around the credit crunch and "a stark sign of the times".

"Some savers now have an exaggerated view that investing their money with a building society or bank can be a risky business, which is not the case," said the official.

This comes as Reuters reports that David Frost, director general of the British Chambers of Commerce, commented that the credit crunch is not specifically affecting people outside the City of London.

Dream home 'kept in mind by 60 per cent of Brits'

Fri, 25 Apr 2008 15:51:59 GMT

Buying a dream home is an ambition held by close to half of the people in the UK, according to new survey results.

The Home Sweet Home study conducted by Legal & General shows that a village is the top spot for an ideal property among Britons, which 25 per cent of people picking it.

A further 22 per cent would choose a property by the sea for their perfect house, while 20 per cent stated that the countryside would be good for them.

Cornwall, Devon, Greater London, Surrey and Yorkshire were found to be the most popular counties for such a property, the company added.

"The survey would indicate that people are still quite positive about the future housing market given the number of respondents who still wish to live in their dream home," said firm marketing director for general insurance Gary Skelton.

Meanwhile, figures from the British Bankers Association show that 46.2 per cent fewer mortgages were taken out last month compared to March 2007.

Money 'a worry for UK children'

Thu, 24 Apr 2008 16:28:14 GMT

A significant proportion of children in their early teens worry about money difficulties, according to new research.

Statistics from Abbey show that 21 per cent of 11 to 15-year-olds are concerned that they will get into debt and be poor when they are older, while a further nine per cent are anxious they will not be able to buy a house.

However, exam stress was found to be a much bigger worry for young people, with the prospect of failing a pressing matter for 32 per cent of those surveyed by the bank.

Director of Abbey Banking Steve Shore commented that "the news is fairly extreme".

He added: "Parents can calm their children's fears on issues such as house prices and concentrate on teaching their children good financial habits such as saving their pocket money."

Meanwhile, youth charity Rainer in collaboration with YouGov last year found that 80 per cent of young people in the UK find themselves in debt by the age of 21.

UK households 'owe energy suppliers'

Tue, 22 Apr 2008 16:19:00 GMT

More than a quarter of energy customers in the UK owe money their energy suppliers, according to new research.

Statistics from uSwitch.com show that 6.8 million households are currently in arrears, with the average debt owed to firms being around £114.

The company added that prices have gone up by a mean 15 per cent across the UK and that a number of direct debits are not being increased by firms in order to accommodate the change.

Director of consumer policy at uSwitch.com Ann Robinson has commented that "this issue has to be tackled now before it snowballs further".

"Consumers have to take a more active role in managing energy bills - don't just sit back and wait for your supplier to review your account," said the official.

This comes as uSwitch.com has launched a new life insurance comparison service in order to give people looking for policies the chance to shop around.

Credit card companies 'reject 18,000 applications daily'

Mon, 21 Apr 2008 16:23:09 GMT

The number of credit card applications rejected by companies across the UK has been revealed by a consumer organisation.

According to MoneyExpert, some 18,000 accounts are turned down every day, resulting in 3.24 million declined deals in the last six months.

This means that one in 14 people have been turned down when it comes to plastic over the same time period.

Chief executive of MoneyExpert Sean Gardner remarked that applicants should be confident in their attempts to get a card as a rejection could see them pick up black marks on their credit reports.

"For years borrowers have had the upper hand in the credit card game but the rules have now changed. People with debts who thought they could keep shuffling their cards to stay ahead are now running into trouble," he said.

Money charity Credit Action estimates that people in the UK are in more than £1.4 trillion of personal debt.

Britons 'would pay more for environmentally-friendly goods'

Thu, 17 Apr 2008 15:33:45 GMT

New research has found that people in Britain would be willing to fork out more for environmentally-friendly products.

According to cahoot, some 18.4 million people in the UK would be willing to support environmental concerns by picking up organic, recycled and energy-efficient goods.

The online bank added that close to three-quarters (71 per cent) of people buy fruit and veg grown in Britain, with women more likely to do so than men.

Director of cahoot Matthew Timms remarked that such environmental concerns among Britons are "great".

He said: "It's going to be difficult to keep buying more expensive environmentally sound products, but making the most of supermarket special offers and cash back deals will help those who wish to continue to help the environment."

This comes as environmentally-friendly cleaning company Living Clean, founded in 2002, has launched franchise opportunities for investors across the UK.

Elderly 'hit hardest by inflation'

Tue, 15 Apr 2008 16:12:20 GMT

People over 65 are being hit hardest by an increase in food and energy costs, it has been reported.

According to figures from Alliance Trust, people between the ages of 65 and 74 years old are currently having to cope with an inflation rate of 3.2 per cent, while those 75 and over are experiencing a 3.4 per cent rise.

The company added that there has been a six per cent hike in food costs compared to last year and utility prices have gone up by close to four per cent.

Head of the Alliance Trust Research Centre Shona Dobie commented that the statistics show that headline inflation and its actual impact can often be two different figures.

"This month we have found that the over 75s are once again the most exposed to the negative impact of high food and energy costs," she said.

Last week the Bank of England's monetary policy committee voted to reduce the base rate level of interest to 5.25 per cent.

Rate cut 'unlikely to make much difference'

Thu, 10 Apr 2008 14:56:00 GMT

The cut in the base rate level of interest is unlikely to make much difference to credit conditions in the UK, it has been claimed.

Earlier today, the Bank of England's monetary policy committee voted to reduce the current rate by a quarter of a percentage point to five per cent.

According to David Kuo, head of personal finance at Fool.co.uk, only those who are in the best positions financially will survive what he describes as the mortgage market "jungle".

Indeed, the body pointed out that the UK's biggest lenders offer an average standard variable rate of 7.2 per cent - more than two per cent higher than the base rate.

"If you can, you should use emergency savings to reduce the size of your loan. Others have to assume the worst which will mean tolerating unattractive and expensive mortgages until credit conditions improve," said the expert.

Motorists 'may miss out through lack of haggling'

Mon, 7 Apr 2008 15:34:09 GMT

Drivers who choose not to haggle when buying a new car could be missing out on significant savings, it has been reported.

According to Sainsbury's Bank, motorists could pocket £286 million if they are prepared to argue with dealers over the price of the vehicle.

In addition, the company stated that it is a good idea to also research the market for a car finance deal, if that is how drivers intend to pay for the vehicle.

According to Steven Baillie, head of Sainsbury's Loans, fewer people are currently buying new vehicles.

"Furthermore, those looking to finance their purchase through a loan need to make sure they shop around to find the best deal for them," he said.

This comes as statistics from the Society of Motor Manufacturers & Traders show that 2,355 more people bought new cars in March than experts had originally predicted.

Consumer group reveals best way to complain

Fri, 4 Apr 2008 15:50:56 GMT

People in the UK have been advised how to get what they want when they complain to companies, it has been reported.

According to Consumer Direct, it is essential that customers remain calm rather than be aggressive, while they should also be clear about how they want the problem to be resolved.

If a product or service has a fault it should be reported as soon as possibly, with any necessary paper proof of purchase photocopied.

Keeping a diary of how events unfold is also a good idea, as it will help people to jog their memories if the scenario becomes a long drawn-out process.

"If you stay calm and complain the right way you increase your chance of getting the refund, repair of replacement that you're entitled to," said Michele Shambrook, operations manager for Consumer Direct.

Consumer Direct is a government funded advice service.

February saw 'increased secured loan activity'

Wed, 2 Apr 2008 15:50:00 GMT

The number of secured homeowner loans as well as other forms of lending went up over the course of February, it has been claimed.

According to figures from the Bank of England, £7.4 million more in net lending was recorded over the course of the month than in January.

Lending to individuals has slowed to 8.9 per cent growth over the last 12 months, the body added, although there was an increase of 0.1 per cent in the three-month annualised rate, which is now 7.9 per cent.

House purchase lending was down in February against January, with 73,000 loans approved, while there were 110,000 applications for remortgages accepted.

But the Bank added that lending for reasons other than buying property went up against figures from January.

This comes as research from Sainsbury's Bank has found that a number of Britons transfer around £1.1 billion between credit cards in the UK every month.

£1.1 billion 'switched between credit cards each month'

Tue, 1 Apr 2008 15:49:27 GMT

People in the UK will attempt to transfer close to £1.1 billion across credit each month, it has been claimed.

According to statistics from Sainsbury's Bank, an estimated 280,833 people will be looking to switch up to £500 between cards, while those moving more than £5,000 total over 30,000.

The body revealed that the average amount transferred is around £1,555 with one in ten looking to switch more than £4,000.

Donald MacLeod, head of cards at the organisation, said that there are a number of tempting offers on the market for those looking to switch,

"There is a significant market for cards offering balance transfers as our research indicates that 40 per cent of card holders think it will take longer than one month to clear their current balance," commented the official.

Money charity Credit Action has estimated that the current amount of personal debt in the UK totals more than £1.3 trillion.

Plastic-wielding Brits 'tend to snub cash'

Mon, 31 Mar 2008 14:07:05 GMT

People in the UK are choosing to use their credit cards in order to pay for everyday occurrences rather than cash, it has been reported.

According to Fool.co.uk, 32 per cent of Britons pick plastic over notes and coins, with 37 per cent of such purchases made on debit card accounts.

The study from the group also found that people are carrying less cash than in the past, with men typically having £40 on their person and woman just under £20.

Head of personal finance at Fool.co.uk David Kuo remarked that it is often all too easy to rely on credit.

"Relying on money we can't see is a reflection of how easy it has been to rely on credit in recent years," said the official.

Meanwhile, an investigation into alleged unauthorised spending by police has seen some 1,400 credit cards taking from UK officers.

People 'cannot save due to living costs'

Fri, 28 Mar 2008 15:08:17 GMT

The cost of living is preventing people in the UK from putting away a substantial amount of savings, it has been claimed.

According to figures from the Post Office, 43 per cent of people said that Christmas had an impact on their finances and the amount they saved during the period.

Indeed, 21 per cent of Britons commented that the cost of the holiday season means that they have not been able to put money away until this month.

Post Office director of savings Richard Norman advised people to "try and keep saving regularly".

He said: "Millions of people are missing out on earning interest on their savings and have to live without the security of having a 'savings safety net' if they ever found themselves in financial trouble."

Figures from money charity Credit Action show that the UK is currently in more than £1.3 trillion of personal debt.

Property 'key goal for under 30s'

Thu, 27 Mar 2008 14:50:50 GMT

More than half of Britons under 30 have identified owning a home as a major priority, according to a new study.

Alliance & Leicester research has found that 57 per cent of 18 to 29-year-olds believe buying a property is an achievable goal before they hit 30.

Getting married was another big priority picked out by close to half (49 per cent) of people in the demographic, the study found.

Richard Taylor, head of mortgage products at Alliance & Leicester, commented that Britons see 30 as a "landmark age".

He said that it is "a deadline for some major life events, like owning a property, getting married or starting a family".

This comes as the Bath Chronicle has reported that that it has teamed up with Find A Property to offer a comprehensive search facility for people looking to buy or rent a house.

Most property buyers 'would look abroad to purchase'

Tue, 25 Mar 2008 15:23:41 GMT

Buying property abroad is a likely option for an increasing number of people looking to get on the housing ladder, it has been reported.

According to statistics from National Savings and Investment cited by Fair Investment Company, 52 per cent of first-time buyers would either head overseas to pick up a property or already have.

James Caldwell, director at Fair Investment Company, stated that sunnier weather and economic conditions in the UK are partial factors in such activity.

"First-time buyers are being driven to sunnier climes for a route onto the property ladder as a result of the credit crisis, which has been shaking the foundations of the UK property market," said the official.

This comes as research from Rightmove has suggested that property prices in the UK will drop by half over the next 50 per cent if steps are not taken to keep them steady.

Credit card headline rate "most important thing"

Wed, 19 Mar 2008 16:08:59 GMT

The headline rate of a credit card has been described as the most important thing to consider when taking one out.

Money charity Credit Action has commented that the annual percentage rate should be the first aspect of a new card considered when people look for deals.

According to Chris Tapp, director of the firm, shopping around will take little longer, but it is a worthwhile thing to do.

"It is an action that will require a bit of time and effort, just as when you are buying a new car. You do not just compare one aspect of the car," said the official.

This comes as research from MoneyExpert.com has underlined the extent to which Britons rely on plastic.

According to the body, 3.2 million people have five or more credit cards.

Older people 'suffer higher inflation'

Tue, 18 Mar 2008 16:11:32 GMT

Britain's pensioners are dealing with a higher rate of inflation than any other age group in the UK, it has been claimed.

According to Alliance Trust's Research Centre figures, inflation increases introduced in February saw people over the age of 65 hit hardest.

It added that households comprising people between the ages of 65 and 74 experienced a higher rate than the headline figure, while those over 75 saw a figure 36 per cent higher.

Utilities account for the biggest increases, according to Alliance Trust Research Centre head Shona Dobie.

She said: "Unfortunately it is these basic items which have seen the highest price increases in recent months."

The current base rate level of interest currently stands at 5.25 per cent after the Bank of England's monetary policy committee voted to maintain the figure earlier this month.

Brits 'gave £1bn on cards last year'

Fri, 14 Mar 2008 16:26:57 GMT

People in the UK made £1 billion-worth of charitable donations through their credit cards over the course of 2007, it has been claimed.

According to payments association Apacs, this is a 23 per cent increase on the 18.5 million contributions made during 2006.

This week's Budget left gift aid at 22 per cent, but Apacs director of communication Sandra Quinn believes a lower rate in the future means Britons should continue to be as generous as possible.

She said: "Last year we donated a staggering £1 billion on our cards and it seems very likely that our increasing preference to pledge by plastic has been spurred on by all the growing opportunities to pay online or over the phone."

In 2006, rock star Bono launched Product Red - a brand which gave a share of its profits to the fight against Aids in Africa.

Britain's pensioners 'should pick up money owed promptly'

Wed, 12 Mar 2008 16:00:55 GMT

Older people in the UK need to act quickly in order to get the money they are owed in pension credit, it has been claimed.

According to statistics from Citizens Advice, four in ten pensioners are entitled to top-up credits in addition to the basic £87.50 per week.

The body added that the winter fuel payment is also being missed by some and if people are owed it they should check before March 31st.

Citizens Advice director of policy Teresa Perchard said that "red tape" is obstructing a number of people who are entitled to extra cash.

"Too many pensioners are missing out on money that is rightfully theirs. Many don't know about things like council tax benefit, or think they won't qualify for help. Others are put off claiming by red tape," said the official.

Currently men over the age of 65 and women over the age of 60 are allowed to claim basic pensions, although this will be equalised to 65 years of age by 2020.

Quitting smoking 'can save more than health'

Tue, 11 Mar 2008 15:23:22 GMT

Giving up smoking can see people in the UK save money as well as their health, according to new research.

Finance firm Fair Investment Company comments ahead of tomorrow's National No Smoking Day that £2,000 per year is spent by those who cannot kick the habit.

According to company director James Caldwell, deciding not to smoke can result in cheaper life insurance policies as well as an increase in the amount of money people can save.

"Giving up smoking can save you much more than just your health, with at least £2,000 saved per year, quitting means you can pay off credit card and mortgage repayments faster and become much more financially savvy," said the official.

This comes as the Norwich Evening News reports that officials in Norfolk are looking to get a record number of smokers to quit before May.

Authorities would like more than 4,032 registered quitters by the end of April as part of its Norfolk Big Quit campaign.

Consumers urged to consider Fairtrade options

Wed, 5 Mar 2008 15:58:50 GMT

People in the UK should consider choosing Fairtrade options when they can, it has been reported.

According to Fair Investment Company, ethical banking is an area more people should choose to explore if they can find the right providers.

Speaking on behalf of the firm, an official stated that while some institutions are looking to cash in on ethical concerns, there are some offers on the market with real integrity.

"Although banking habits are not always at the forefront of people's minds when Fair Trade is mentioned, some banks and building societies are looking to make a difference," said James Caldwell, director at the firm.

Environmental and ethical concerns have been highlighted in the media over the last year.

Last summer, former US vice-president Al Gore hosted the Live Earth concerts in order to promote environmentally-friendly practices, while the year before Bob Geldof reformed Live 8.

Base rate cut 'is not guaranteed'

Tue, 4 Mar 2008 16:32:11 GMT

Property owners should not assume that a cut in the base rate is on the way, according to a financial services provider.

Fair Investment Company is warning people that inflationary concerns may stop the Bank of England from implementing drops before the end of the year.

Close to 33 per cent of people believe the level will be at 4.75 per cent by the end of the year, while 27 per cent think it will be under 4.5 per cent, the firm added.

And this comes as the Financial Services Authority launches a guide advising people how best to avoid mortgage arrears.

People should be aware that the dramatic cuts in the interest rate seen in the US are not guaranteed in the UK, said Fair Investment Company director James Caldwell.

He said: "The monetary policy committee's decision is not as straightforward as people might think when it comes to setting the base rate. Inflation must be taken into consideration, as must the country's general economic condition."

Consumers waste two year 'worrying over debt'

Mon, 3 Mar 2008 16:13:06 GMT

The average Briton spends two years of their life worrying about their financial situation, according to new research.

Co-Operative Financial Services has found that 78 per cent of people in the north-west are stressed about debt, followed by 76 per cent of people in London.

Nationwide, 48 per cent of the 3,000 adults polled by the firm commented that they were concerned about their finances.

Those said to be most worried were undergraduates and recent graduates, who were found to spend close to two days every month attempting to balance the books.

Co-Operative Bank savings product manager Scott McPhail called the figures distressing.

"It is worryingly clear from the research that the vast majority of UK adults are deeply concerned about their finances, with rising levels of debt and inadequate saving provisions responsible for countless sleepless nights nationwide," he said.

Money charity Credit Action comments that people in the UK are currently in more than £1.3 trillion-worth of arrears.

Lovers 'often surprised by cost of nuptials'

Wed, 27 Feb 2008 15:49:24 GMT

Getting married in the UK costs more than engaged couples originally think, new research has found.

According to Alliance & Leicester, the average ceremony sets lovers back £3,500 more than they expected, costing some £19,400.

This 22 per cent difference in reckoning could see newlyweds fall into debt as soon as they tie the knot.

Head of personal loans at the firm Richard Al-Dabbagh states that "love is in the air, but so is inflation".

However, he adds that a personal loan could help out those looking to keep their cash in check on the big day.

"Getting the finances right is probably just as important as the choice of reception venue, entertainment or even the rings," says the official.

The world's most expensive wedding is thought to be the union of Vanisha Mittal and Amit Bhatia in June 2004.

Mittal's father spent $60 million (£30 million) on the ceremony.

Consumer body urges people to switch off

Tue, 26 Feb 2008 14:47:10 GMT

Consumers are being told to keep in mind energy-saving tactics for one day this month.

February 27th is to be E-Day, on which uSwitch.com is urging people to make sure they do not waste power.

The company estimates that 22 million mobile phones are charged needlessly everyday, with nine million consumers charging up gadgets as they sleep.

It added that switching off is a sound environmental decision, while it can also save people money in the long run.

According to Ann Robinson, consumer policy director at the company, E-day represents a "great opportunity".

She said "If we become more aware of the electricity we use we can work towards reducing our bills and our impact on the environment."

Earlier this month, the consumer site launched its own home insurance comparison area, where people can work out which cover deal represents the best option for their property.

Credit card transfers to hit £6.68bn in 6 months

Tue, 26 Feb 2008 14:46:45 GMT

Some £6.68 billion will be transferred between credit cards over the next six months, new research has found.

According to Sainsbury's Finance, the money, spread among 4.3m people, equates to £257.15m per week.

Over the next six months, the average amount people will switch is £1,555, while 181,000 consumers will transfer more than £5,000.

This activity is more prevalent in men, with 54.3 per cent of consumers switching funds being male, the company added.

This is "not surprising" according to Donald MacLeod, head of cards at Sainsbury's.

"Our research shows that there are an estimated five million people with outstanding balances who are not only incurring interest but also admit that it may take them longer than one month to clear their spend," he said.

Earlier this month, Sainsbury's Finance announced that it was to extend its interest-free period from ten months to twelve.

Capped balance transfer limits 'falling'

Mon, 25 Feb 2008 16:17:30 GMT

Capped balance transfer fees on credit cards are falling in frequency, according to new research.

MoneyExpert states that there are now currently only seven such offers on the market compared to 18 a year ago.

Of these, the average fee is 2.8 per cent of the money moved, meaning the typical cost of switching is around £74.65, the company adds.

Sean Gardner, chief executive of the firm, comments that "credit card switching is big business".

He states: "Consumers looking to move credit card provider will be in for a nasty shock if they don't choose a card with a capped balance transfer fee."

Mr Gardner adds that "switching may be entirely pointless" if there is a large fee involved.

This comes as research from money charity Credit Action has revealed the amount of debt people in the UK are currently in.

According to the firm, consumers currently have £1.3 trillion

Parents 'may be forced to cut spending on children'

Wed, 20 Feb 2008 15:47:39 GMT

Mums and dads across the UK are set to cut the amount of money they spend on their children as fears of a recession this year grow, according to new research.

Engage Mutual Assurance found that 38 per cent of families with children under the age of 18 will be spending less on holidays, while there will be fewer day trips for 29 per cent of people.

This may have already begun, as last week was half-term for a number of schools across the country.

In addition, toys and clothes for children will be cut back on by 26 per cent and 24 per cent of parents respectively and 15 per cent will give their kids less pocket money, the firm found.

Speaking on behalf of Engage Mutual Assurance, Karl Elliott stated that "saving little and often" is a good idea for parents looking to the future.

He said: "With the increased cost of food, fuel and mortgages taking effect, our research shows that many parents anticipate finding it increasingly difficult to make ends meet in the year ahead."

Debt 'worries one in three'

Mon, 18 Feb 2008 15:44:53 GMT

Debt is said to be a concern for one in three people in the UK, new research reveals.

According to MoneyExpert, 33 per cent of adults are worried about their level of arrears, with nine per cent said to be very concerned.

The firm added that 47 per cent of people now owe money on credit cards, while three months ago this figure was 41 per cent - something which may be down to Christmas spending.

According to Sean Gardner, chief executive of the company, this is distressing.

"The fact that one in three people who owe money are concerned or very concerned about their ability to manage their debts is worrying," he said.

Meanwhile, the Banking Times cites figures from the Ministry of Justice which show that more people voluntarily filed for bankruptcy last year.

It states that 53,114 people filed in 2007 compared to 52,717 in 2006.

OFT uses novel approach to get scam message across

Fri, 15 Feb 2008 15:37:31 GMT

The Office of Fair Trading (OFT) is to send out a text message to young people in an effort to make them understand the dangers of mobile phone scams.

An SMS which reads "Urgent! U may have won £1K cash with '2 Good 2 B True." precedes a second text in which the recipient is told that it was a hoax from the body.

Speaking on behalf of the organisation, director of consumer protection Mike Haley states that even the technology-literate are prone to beng tricked by scam artists.

'Young people can fall for exactly the same types of scam as anyone else ... We hope that our innovative approach of sending fake scam text messages will remind young consumers to be on their guard," he said.

This follows a scam warning from Citizens Advice, telling consumers to be careful of will writers offering cheap deals.

Surprise and weekend away most hoped-for Valentine's gift

Mon, 11 Feb 2008 16:17:06 GMT

People in the UK would like to receive a surprise gift on Valentine's Day more than anything else, new research has found.

A PayPal study ranks an unexpected present along with a weekend away as the number one wants for February 14th, with 27 per cent citing them.

Next was a romantic dinner with 11 per cent, while ten per cent of people would just like a card, the poll found.

According to Christina Hoole, spokesperson for PayPal, keeping it simple is often the best thing to do when it comes to presents on Valentine's Day.

"What we all want ... is to spend the evening with the person we love. To make this February 14th really special, wannabe romantics should heed the warning and make sure they spend time with the person they love," she said.

People are reminded to make sure that they do not go overboard and get into debt this Valentine's Day.

Money charity Credit Action states that the total amount of personal arrears in the UK is more than £1.3 trillion.

Don't use card abroad this Valentine's Day, says Nationwide

Fri, 8 Feb 2008 16:27:25 GMT

Couples looking to celebrate Valentine's Day abroad this year have been warned not to spend more than they need to by a high street bank.

According to Nationwide, using a credit card in a foreign country can carry an unwanted cost for consumers.

It explains that most lenders charge people around three per cent for using plastic abroad, with people in the UK paying around £27 million in charges last February.

Divisional director at the bank, Jeremy Wood, stated that people heading away for a romantic break should make sure that they are aware of the conditions that come with using their cards in advance.

"Couples who are planning to go abroad for a romantic getaway this Valentine's Day should be aware of the hidden charges that most card providers impose, which are both costly and unnecessary," he said.

Valentine's Day is the second most popular day on which to send a card, after Christmas.

Base rate cut by Bank of England

Thu, 7 Feb 2008 16:20:38 GMT

The Bank of England has today cut the base rate level of interest to 5.25 per cent.

Dropping the rate by a quarter of a point will have a positive effect on Britons looking to stay on top of their mortgage, credit card and loan repayments.

This is the first cut made by the Bank's monetary policy committee since December, when it incorporated a 25 basis point reduction.

According to the Bank, lower levels of consumer spending have influenced the decision.

Similarly, reduced household and business plans have controlled costs to such an extent that the current economic slowdown is likely to continue unabated, it added.

The Bank said: "These developments pose downside risks to the outlook for inflation."

The monetary policy committee was established in 1997 when Gordon Brown, in one of his first acts as Tony Blair's chancellor, handed over base rate responsibly from the government to the Bank of England.

Nearly two-thirds 'not bothered about a will'

Wed, 6 Feb 2008 15:52:28 GMT

The majority of people in the UK are not concerned about making a will, new research shows.

According to a study from Co-operative Financial Services, 72 per cent of people in the UK have not prioritised the act, with 40 per cent stating that they would have nothing to pass on.

Managing director of the firm, Eddie Ryan, commented that the results show that making a will is not something that is important to Britons today.

He added that there are also misconceptions about the practice which keep people from drawing such a document up.

"At Co-operative Legal Services we strongly believe that having a valid and up to date will should be seen as a fundamental element of responsible financial planning," said the official.

Famous people from history who have died without a will include Martin Luther King Jr, Karl Marx and Abraham Lincoln.

Parents 'spend more time helping first-borns on ladder'

Mon, 4 Feb 2008 15:32:05 GMT

First-born children receive more help getting onto the housing ladder than their siblings, new research indicates.

According to Abbey Mortgages, 17 per cent of first-borns receive money for their initial purchase from their parents compared to 12 per cent of second-borns.

However, while older children have a higher likelihood of receiving such a handout, their siblings often get more money if their parents help them.

Nicci Audhlam-Gardiner, head of mortgages at Abbey, comments that this may be because mums and dads have more disposable income in later life, so the youngest child may get the best deal.

She said: "Most parents tend to think they are very fair when it comes to financial gifts to their children, but what’s fair in one circumstance may not be fair in another."

Meanwhile, the BBC reports that the Council of Mortgage Lenders has warned buyers against mortgage fraud in the wake of a slowing market.

House prices hold during January

Thu, 31 Jan 2008 15:32:42 GMT

The price of buying a house in the UK slowed over the month of January, according to a high street bank.

Statistics released by Nationwide show that there was a monthly change of - 0.1 per cent over the course of the month and a drop of 0.4 per cent from December 2007.

This means that the average house price in January 2008 was £180,473 compared to £182,080 last month.

Nationwide senior economist Martin Gahbauer commented that market conditions are in-line with the figures.

"The weakening trend in house prices during the last three months is consistent with the loosening in housing market conditions that has become increasingly evident in the data," said the official.

Nationwide Building Society has close to 13 million members and 20 million accounts.

The firm employs 19,000 people and was first founded in 1884.

Its headquarters can be found in Swindon.

Switching could see £1.25 bn savings

Fri, 25 Jan 2008 16:30:39 GMT

Consumers in the UK could save £1.25 billion on an £8,000 bill by switching providers half way through a term, it has been claimed.

According to research from uSwitch.com, changing the conditions of a repayment schedule in such a fashion is a cheap and easier way to cut costs, as many companies do not charge customers to do it.

It adds that the Bank of England's decision to cut the base rate level of interest by 0.25 per cent last month has already resulted in firms bringing down the switching prices.

Personal finance expert at uSwitch.com Mike Naylor states that loyalty should not be taken into consideration when it comes to financial products.

"In such a volatile unsecured personal loan market, five years is a long time to sick with the same provider as rates fluctuate constantly," he said.

Earlier this week uSwitch.com claimed that 4.8 million people in the UK spend more money than they earn.

Regular savers' £24K nest egg for children

Wed, 23 Jan 2008 16:08:31 GMT

Parents saving for the children's' futures are contributing to an average nest egg of £24,228, it has been reported.

A new study from Norwich and Peterborough Building Society has found that mums and dads put away close to £1,350 every year until their offspring reaches 18.

It adds that February, April and September were the months in which the least was deposited, not November and December, when people may be expected to be splashing out on Christmas gifts.

Group product manager at the firm Gary Lacey comments that parents could still be trying harder to give their children the best possible start to adult life.

"More needs to be done to highlight the benefits of regular monthly saving. The ability to actively put aside regular amounts each month instils a positive savings habit and can really add up in the long run," he said.

Since September 2002, government legislation means that each new child born receives a bond voucher of at least £250 in order to ensure they have some savings by the time they reach 18.

Consumers 'do not read refund policies'

Wed, 23 Jan 2008 16:08:04 GMT

Most consumers admit to not reading the return and refund policies they receive when they buy an item, it has been reported.

A swiftcover.com survey shows that seven out of ten do not know their rights when it comes to bringing back unwanted goods.

It adds that 26 per cent of people have struggled to return an unwanted item, while 47 per cent state that they have signed up for a service without looking around the market for a better deal.

Tina Shortle from the company commented that people in the UK have an impulse attitude when it comes to shopping.

"We've also dropped our guard when it comes to 'sensible' habits like shopping around and as a result we are getting stung by shops' returns policies," she said.

Money charity Credit Action has revealed that the UK's personal debt mountain currently stands at more than £1.3 trillion.

Britons 'spending more than they earn'

Tue, 22 Jan 2008 15:43:08 GMT

A number of people living in the UK may be living beyond their means, new research indicates.

The uSwitch.com study found that 4.8 million adults in Britain are spending more money than they earn.

It adds that the amount people throw away on non-essential items has gone up by 65 per cent in the last ten years, which is close to two-and-a-half-times the rate of inflation.

Ann Robinson, director of consumer policy at the price comparison site, comments "Britain is suffering from a bad case of affluenza".

She said: "We are caught in the grip of a spiral of conspicuous consumption where it's no longer enough to keep up with the Joneses, but instead we want to live like our favourite celebrities."

This comes as research from the Your Money Matters personal finance exhibition has shown that the average age at which men clear their debts in 52 years and three months.

The mean age at which women become free of arrears is 42 years and 11 months.

Skint homeowners 'missing mortgage payments'

Mon, 21 Jan 2008 15:39:17 GMT

Mortgage repayments have been missed by nearly half a million homeowners over the past six month, new research indicates.

According to MoneyExpert.com, 463,000 properties have gone unpaid for at least once since July 2007.

It added that those most likely to miss payments are people aged between 25 and 34 - typically those struggling to get their foot on the UK housing ladder.

MoneyExpert.com chief executive Sean Gardner commented that missing a payment is indicative of "real distress".

"If you are struggling to afford the repayments then now is not the time to stick your head in the sand. A phone call to your lender can ease the pressure enormously," he said.

This comes as research from the Council of Mortgage Lenders show that mortgage prices have fallen to a two-and-a-half year trough.

It states that 21 per cent less was borrowed by homeowners in December 2007.

Pension-less Brits 'still expecting retirement in early 60s'

Mon, 21 Jan 2008 15:38:53 GMT

People in Britain are expecting to retire before they are legally entitled to, despite the fact that they have no pensions provision in place, it has been reported.

According to Baring Asset Management, 33 per cent of Britons are looking to give up work between the ages of 60 and 65.

But it added that a quarter (24 per cent) of people making retirement plans are yet to make any provision.

Rob Lay, head of European sales at Barings, states that Britons need to think and take action if they want their pension plans to come to fruition.

"It is absolutely vital for people to start considering how best to build their pension fund from the day they start working. Unless they make the correct provisions now, that target age for retirement will slip further and further away," he said.

This comes as research from money charity Credit Action shows that the UK is currently in more than £1.3 trillion of personal debt.

Holidays more interesting to Brits than mortgages

Thu, 17 Jan 2008 16:00:29 GMT

Living elsewhere for a few days each year is more of an appeal than choosing a house to buy, if new research is to be believed.

Fool.co.uk comments that almost twice the amount of time taken to decide on a mortgage is spent picking the perfect holiday.

The poll of 2,000 people found that 36 per cent would spend ten hours or more researching a vacation, while 21 per cent would take the same amount picking a mortgage.

Head of personal finance at Fool.co.uk David Kuo believes that this is not something that people can be blamed for, but they should also keep an eye on their money.

"While a good holiday will recharge your energy levels for a few weeks, healthy finances can boost your bank balance for a lifetime," he said.

This comes as research from iknow-uk shows that holiday bookings to destinations in the UK have doubled over the last year.

Christmas expenditure 'expected to be cleared within a month'

Tue, 15 Jan 2008 13:13:34 GMT

Consumers in the UK believe that they will clear the debt they accumulated over the Christmas period within a month, it has been reported.

A survey from Sainsbury's Bank show that 61 per cent of people think this way, with 15 per cent stating that they will pay it off in two-to-three months.

The research also found that there are 438,000 people (one per cent) who expect the debt will take over a year to clear, while 12 per cent do not know when they will be free of it.

Sainsbury's head of cards Donald MacLeod commented that close to nine million people put their Christmas expenditure on plastic.

He said: "We estimate that around 18% of Christmas spending was placed on credit cards."

This comes as supermarket giant Tesco has reported that revenue over the Christmas period stalled against the previous quarter.

Providers 'get tougher' on mortgages

Mon, 14 Jan 2008 17:23:51 GMT

Mortgage lenders are getting tougher by cutting the maximum loan-to-values they offer, new research has indicated.

According to Moneyfacts.co.uk, this trend can be traced back to December 2007, when 11 providers decreased amounts.

David Knight, mortgage analyst at Moneyfacts.co.uk, commented that people may find the amount of options open to them limited in the future if this "conservative approach" continues.

In addition, putting away for a deposit will cut interest rates in the future, the company added.

"Anyone looking to take their first step onto the property ladder should carefully consider the risks of taking a high loan to value product. Plan and save for a deposit," he said.

Meanwhile, research from money charity Credit Action has revealed the total amount of debt the UK is currently in.

According to the finance group, national arrears have reached more than £1.3 trillion.

New credit cards for 2.6m in 2008

Mon, 7 Jan 2008 12:28:11 GMT

People in the UK will be ringing in the new year by switching their credit cards, a financial firm reports.

According to MoneyExpert.com, 2.6 million consumers will be moving their accumulated debt from Christmas to another financial provider.

The firm comments that people should make sure that they are familiar with all of the terms and conditions before switching as they may be charged expensive balance transfer fees.

Indeed, the company states that transferring a £2,000 debt to another card could set consumers back £60.

"The first step towards controlling debt is to cut borrowing costs. The next important step is then of course to pay the debt off but transferring a balance is at least a start," said MoneyExpert.com chief executive Sean Gardner.

Money charity Credit Action reports that the UK has amassed a personal debt mountain of more than £1.3 trillion.

Expats 'turning to the internet to bank'

Fri, 4 Jan 2008 16:32:32 GMT

People who have left the UK in order to live abroad are increasingly turning to the internet to manage their finances, according to new research.

An Alliance & Leicester study has revealed that 92 per cent of expatriates go online to manage their money.

But the research found that only 30 per cent are using an internet offshore account.

Simon Hull, managing director of the firm, commented that these customers may be missing out on some attractive ways in which to look after their money while abroad.

He said: "With internet access now so readily available, offshore consumers should take advantage of internet banking and saving."

Meanwhile, research from the Etnia publishing group shows that there are now 4.48 million foreign residents living in Spain - ten per cent of the country's population.

It added that close to 17 per cent are British nationals.

Review finances, consumers urged

Wed, 2 Jan 2008 15:11:25 GMT

Credit card customers should shop around for the best deal on their plastic in the new year, according to an industry expert.

Sainsbury's Bank head of cards Donald MacLeod said that reviewing one's finances is "the key thing" in order to manage money in 2008.

"Find where the best deal is for you and take advantage of those deals," he said.

According to Mr McLeod, consumers should compare their credit card deal to those that are available from other providers.

"That may well offer you an opportunity to reassess your costs," he said.

Payments organisation Apacs predicted that British consumers would spend some £53 billion over the festive period, with 64.3 per cent of that charged to credit cards.

In 2006 as a whole, British consumers spent £159.8 billion on plastic, with £61 billion of that going on credit cards and other charge cards.

Cheshire Building Society also urged Britons making New Year's resolutions to prioritise their personal finances.

The financial services provider said: "If you have a mortgage, it is always worth shopping around in case there is a better deal available."

Cardholders plan £9bn switch

Mon, 31 Dec 2007 15:10:29 GMT

Credit cardholders intend to move almost £9 billion worth of debt in the first quarter of 2008 by taking advantage of balance transfer deals, the findings of a new survey have revealed.

The study, commissioned by Abbey, discovered that more than three million borrowers plan to move credit card balances, with the average amount they want to transfer £2,666.

Roger Lovering, managing director of Abbey Credit Cards, said the figures were a positive sign that consumers are taking steps to get their finances in order and ensure they are paying less interest.

He added: "January credit card bills can often catch people by surprise, so we would encourage people to … plan ahead to ensure they aren't paying over the odds for their plastic."

Switching to a lower or zero per cent interest deal can help borrowers to save money, but Samantha Owens of personal finance website Moneyfacts.co.uk recently advised consumers to think carefully about the impact of balance transfer fees, as many lenders have increased them in recent times.

Money issues this Christmas

Fri, 21 Dec 2007 15:54:13 GMT

People are being reminded to keep an eye on their finances this Christmas by financial experts.

The festive period is a traditional one during which consumers spend money on presents and expensive nights in and out with friends and relatives.

As a result, it may be that people make themselves more vulnerable to crime. The UK's fraud prevention service Cifas has warned Britons to make sure they do not give away their personal details. For example, they should shield their pin numbers when at a cashpoint, while they should also keep wallets and handbags close to them at all times.

When going out, people should make sure that their homes are secure and important documents are locked away, the firm said. This can be done with a small safe, while papers no longer needed but which contain personal details can be shredded.

The company added that people should be especially careful when donating to collectors who may be taking advantage of people's good spirits over the festive season.

"Check whether they are truly who they claim to be before giving them any information. Be just as careful when taking telephone calls. Fraudsters may try to dupe you into believing they are from banks or other companies. If you give them your account and security details they could run up huge debts in your name."

Sainsbury's Bank has revealed that this month people in the UK are expected to withdraw more money from cashpoints than ever before.

Over the course of December 2007, people will take out some £348.1 million, compared to £233.8 million in 2003, it stated.

However, it may be that this means people are risking more if they are mugged.

Alex Blake, head of ATMs at Sainsbury's, commented that the money is withdrawn at a rapid rate this month.

"People are more reliant on ATMs than ever before and the peak time for cash withdrawals is December. This helps explain why there has been a 29 per cent increase in the number of ATMs between December 2003 and June 2007," said the expert.

This comes as money charity Credit Action has revealed that amount of debt accumulated by people in the UK.

According to the firm, the current size of the arrears mountain is more than £1.3 trillion.

Toddlers 'cause £122m of home damage each year'

Thu, 20 Dec 2007 16:01:20 GMT

Parents in the UK pick up a combined bill of £122 million each year due to damage caused by toddlers, it has been claimed.

Les enfants terrible spill drinks, graffiti walls and furniture and damage mobile phones, according to Halifax.

In this respect, a home insurance may be a good present for parents who have just welcomed a son or daughter into the world.

The research added that boys are 20 per cent more likely to damage properties than girls, with spillages and damage to carpets causing despair for 68 per cent of mums and dads.

"Parents can protect themselves from the costs of home repairs and damaged contents by ensuring their home insurance includes accidental damage cover," said Martyn Foulds, senior claims manager for Halifax.

With the festive season upon us, it may be a good idea for people to seek a policy now if they are hosting family gatherings including young children.

Britons make green new year resolution

Wed, 19 Dec 2007 16:19:48 GMT

A large proportion of people in the UK are planning to lead a more environmentally-friendly life in the new year, according to new research.

Friends Provident has found that 13 million are planning to become greener in 2008, with 22 per cent of the population looking to do so on a budget.

This attitude is particularly popular among young people, with a third of 31 to 35-year-olds pledging to do their bit, while 22 to 25-year-olds will also be trying to reduce their carbon footprint.

According to socially responsible investment marketing manager at Friends Provident Julia Dreblow, green issues will be forefronted "more than ever in 2008".

She added: "Many people plan to take an ethical approach to their finances too, by reviewing their investments to avoid investing in companies that are not socially responsible."

Over the summer, the issue of climate change was raised by former US president Al Gore's Live Earth concerts.

Last-minute spending habit revealed

Tue, 18 Dec 2007 16:34:12 GMT

Shoppers in the UK will be spending close to £12 billion in the last week before Christmas, it has been claimed.

Research from Sainsbury's has disclosed the amount, adding that it is £2.7 billion more than was identified by the company in research from 2006.

Some 1.4 million will be spending over £1,000 in the week before Christmas, with men spending the most - £325.48 compared to £231.63 by women.

According to David McLeod, head of cards at Sainsbury's, putting the purchases on plastic may be the best way to go for some.

He said: "Credit cards can be a safe and convenient way to do your Christmas shopping and some provide great rewards for using them. There are a number of credit cards to choose from all offering different terms and conditions."

Those who have yet to finish their shopping may not want to know that there are six days left before Christmas.

Top Christmas presents revealed

Wed, 12 Dec 2007 16:21:35 GMT

New research has revealed which Christmas presents are likely to be underneath the tree come the big day.

Electronic money transfer company PayPal states that food is a common choice among buyers, with 71 per cent choosing it, followed by CDs and DVDs - popular with 70 per cent.

Next on the list are alcohol, clothing and books, present beneath 65 per cent, 64 per cent and 63 per cent of Christmas trees respectively, it added.

PayPal shopping expert Cristina Hoole stated that shopping online is a great way to make sure people receive the presents they want come Christmas morning.

She said: "There are plenty of bargains to be had by shopping online compared to the high-street. If you're prepared to do some digging around on the internet you'll find fantastic and original ideas."

This comes as money charity Credit Action reveals that people in the UK have amassed a total personal debt of over £1.3 trillion.