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Wintry weather 'highlights importance of travel insurance'

Tue, 3 Feb 2009 12:54:24 GMT

The recent bad weather has served as a reminder of just how important travel insurance can be, it has been suggested.

According to the Association of British Insurers (ABI), people with cover should receive compensation if they have been delayed at snowbound airports.

The organisation explained providers usually pay out if a customer has been held up for a certain period of time - usually eight or twelve hours.

It stated policy holders generally receive around £50 for every additional eight or 12 hour delay, up to a set maximum.

People who are unsure if they are entitled to a pay-out were advised to contact their provider.

Nick Starling, ABI's director of general insurance and health, commented: "Severe weather conditions cause great disruption and inconveniences - and insurance is there to help soften the blow."

Meanwhile, the industry body recently urged people buying travel insurance consider a variety of factors when choosing a policy, rather than just price.

First-time buyers 'should avoid raffles'

Tue, 3 Feb 2009 12:53:10 GMT

First-time buyers would probably be better off avoiding property raffles and concentrating on saving a deposit for their mortgage, it has been claimed.

According to FirstRungNow.com, people with money to spare may want to take their chances on a raffle - if they are sure it is legitimate.

However, the company stated first-time buyers should not risk cash that could be better used to take advantage of low interest rates on borrowing.

Managing director Helen Adams said: "My advice is for people to save as much money as they can at the moment - rather than gambling it - and to start saving towards a deposit."

The website winmybungalow.com is currently offering a detached chalet valued at £570,000 for the winner of their raffle.

A maximum of 28,000 tickets are on offer at £25 each until April 16th 2009.

FirstRungNow.com is a company which helps people purchase their first home.

Brits 'travelling further afield'

Mon, 2 Feb 2009 12:13:47 GMT

The number of people from the UK looking to take out travel insurance for trips to long-haul destinations could be on the rise, if the comments of one industry body are anything to go by.

According to Abta – The Travel Association, more Brits are heading to far-off locations because the cost of flying has fallen "dramatically" over the course of the last 40 years.

It stated long-haul destinations are no longer the preserve of the wealthy.

Spokesperson Sean Tipton pointed out the fact holidaymakers were keen to try different things has also contributed to the popularity of travelling to countries in other continents.

"People like to try out new destinations and increasingly that means long-haul destinations out of Europe and further afield," he concluded.

Meanwhile, a report from Kuoni published last month revealed the Maldives was the number one selling long-haul destination in 2008, followed by Thailand and Egypt.

New Zealand and St Lucia also entered the top 20 most popular far-off holiday spots among Brits last year.

Comparison websites 'should give meaningful information'

Mon, 2 Feb 2009 12:12:32 GMT

Price comparison websites can be useful for people looking to buy insurance, providing they include comprehensive information, it has been suggested.

According to the Association of British Insurers, for this type of online resource to be useful it needs to offer "meaningful" data which allows customers to make the best possible choice.

Media relations officer Malcolm Tarling said: "It is important when anyone buys insurance from one of these sites that they are given very clear guidance and helped to understand what exactly it is that they are buying."

In related news, Mintel recently reported 19 million people in the UK – or two in every five – have made use of a price comparison website to look for, compare or purchase financial products.

The study also found such online resources are more popular with men – 41 per cent of whom have used this type of website compared with 36 per cent of women.

Of those people who have used a price comparison site, 65 per cent have been looking for motor insurance, 26 per cent have been searching for home insurance and 24 per cent have been comparing travel insurance.

Book inoculations ASAP, says travel group

Fri, 30 Jan 2009 17:24:52 GMT

As soon as you know where you are going on holiday you should book any necessary vaccinations, an expert in the travel insurance and holiday sector has said.

Sean Tipton is a spokesperson for Abta - The Travel Association. He said not only should consumers book their getaway as early as they can - "that way you will get the best deals" - but inoculations are "very important" and should be sorted ASAP.

He explained this was usually something people needed to look into if they were jetting off to a long-haul destination.

Mr Tipton's comments follow recent research published at the beginning of 2009, which found the Maldives to be the bestselling far-flung location for holidaymakers in 2008.

The Kuoni Longhaul Report also discovered that runners-up were Thailand and Egypt, with new Zealand and St Lucia as new entrants for this year into the top 20.

The Abta spokesperson also suggested booking a package holiday rather than an independently organised option.

A competitively priced house can sell quickly, says expert

Fri, 30 Jan 2009 17:24:33 GMT

Despite the current economic climate, a house priced "competitively" could sell quickly, an expert in the property industry said today.

Michael O'Flynn is the content editor of FindaProperty.com and said compared to last year, home sales are taking 45 per cent more time to complete.

The market may be slower but those who price their house wisely could have a deal.

He said an adviser to the company recently priced a two-bedroom home competitively in a two-week marketing period. After 50 viewings and ten offers, the house sold for ten per cent more than its asking price and contracts were swapped in two days.

Recent statistics from Nationwide showed a 16.6 per cent drop recorded in January 2009 since the same month in 2008. The average house price was found to be £150,501.

Meanwhile, Hometrack also found this month that the average percentage of an asking price being obtained by sellers was 88.3 per cent, compared to 88.6 per cent at the end of last year.

Prepaid credit cards could be useful, Equifax says

Thu, 29 Jan 2009 17:55:21 GMT

Prepaid credit cards could be really useful for some consumers in the current financial climate, credit reporting agency Equifax has stated.

Although this method of payment has "come and gone" in recent years, it may be a good alternative for those who cannot obtain a standard credit card, said the organisations' external affairs director Neil Munroe.

Not only can it avoid incurring more debt, it could also help some borrowers to re-establish their credit rating if the information is shared with other bureaux, he added.

"The prepaid card may allow them to still maintain a credit card, as obviously credit cards still have certain benefits like some of the protection they give you on purchases and so on," Mr Munroe stated.

According to UK payments association Apacs, recent research showed that the most likely social group to own credit and debit cards is adults in East Anglia, while adults in the north-east make the most cash withdrawals in the country.

Credit card fraudsters getting more creative, says expert

Thu, 29 Jan 2009 17:54:54 GMT

Credit card criminals are becoming more creative in their endeavours to fraudulently obtain money, an expert in the financial industry suggested today.

Kerry D'Souza of solutions business CPP commented after it revealed new research that discovered 26 per cent of Brits have fallen victim to credit card fraudsters.

It was also found that 21 per cent of cases were due to a card being cloned from a chip and pin reader or cashpoint.

Ms D'Souza said this was evidence of criminals turning to "more desperate measures" due to the ongoing economic slowdown and added that online fraud was another area where illegal activity had increased over the last year.

She explained that it is both domestic and international thieves carrying out these crimes.

"They tend to be based overseas and are using credit cards based in the UK. It is obviously a lot easier for overseas gangs to use cards online on UK websites," the expert stated.

Interest rates heading towards zero, says economist

Thu, 29 Jan 2009 14:05:20 GMT

A senior economist has said the interest rate is heading towards zero due to the "full-on recession" happening at the moment.

Charles Davis from the Centre for Economics and Business Research (CEBR) suggested that while it was not clear whether the base rate would fall below 0.25 per cent, "it could well go down to as low as they are willing to go".

He added that regardless of the level it drops to, it is likely to stay there for a long time - at least until the end of 2009.

One of the reasons for this is the threat of deflationary pressures, Mr Davis explained.

Deflation - the term used to describe a persistent fall in prices for goods and services to an inflationary rate of below zero - would be a "real, major risk" for the UK, he said.

If the base rate falls, this can affect consumers with money stored in savings accounts as the amount of interest they earn on the sum may be less.

Pedigrees can cause higher pet insurance, says ABI

Thu, 29 Jan 2009 14:05:06 GMT

Those who own pedigrees are likely to face higher pet insurance premiums, an expert in the industry has suggested.

A spokesperson for the Association of British Insurers (ABI) discussed what factors might impact the costs of cover for a pet.

She said no matter what animal one owns, it is "wise" to buy pet insurance, although pedigrees may cost more due to their tendency to have genetic and hereditary conditions that may require veterinary care.

In addition, those with exotic pets may face more expensive premiums, purely because the animal is pricier than a regular household dog or cat.

"There are different types of policies ... some policies will, say, treat a condition up to a set amount of money, some will treat conditions up to a certain amount of money per year," she added.

The spokesperson concluded by saying cover was available at various prices.

Representing the collective interest of the insurance sector is one of the ABI's main focuses.

Lenders 'more willing' to help people in debt

Wed, 28 Jan 2009 17:17:41 GMT

Lenders are becoming more willing to work together with consumers to help them consolidate or reduce their debts, a money advice co-ordinator has asserted.

According to Ian Boden-Smyth of the UK Insolvency Helpline, banks and lenders are becoming "more open to debt management and consolidation than ever before".

He explained that the current economic crisis has encouraged lenders to adopt a "complete opposite" strategy then they have employed in the past.

"They are now more interested in getting cash in and entering into negotiations with debtors rather than using aggressive or threatening tactics to make collections - it's the complete opposite now," he said.

Research from uSwitch.com has indicated that borrowers could save a collective £20 billion by consolidating unsecured credit card, loan and overdraft debts into a lower-cost form of credit.

The research found that currently, borrowers are paying a combined annual total of £98 billion in interest.

Single premium PPI 'should be banned by Competition Commission'

Wed, 28 Jan 2009 17:16:08 GMT

The sale of single premium payment protection insurance (PPI) should be banned by the Competition Commission, according to a consumer group representative.

Lucy Widenka, personal finance campaigner at Which?, said that while a total of five banks have already banned the sale of single premium PPI, other firms have not voluntarily taken this initiative.

As a result, she said the Competition Commission should get involved by issuing a blanket ban on sales of single premium PPI.

Ms Widenka also explained that consumers who currently hold a single premium PPI policy who feel that they have been mis-sold the product should look into the terms of their policy to see if they can reclaim their money.

Research from Which? indicates that one-third of all consumers with a PPI policy may never be able to claim on it, as they are not eligible for the cover.

Some people over the age of 65, people with pre-existing medical conditions, those who are self-employed or people who have a fixed-term job contract are often not covered by such policies.

CCCS: Credit unions may not work for everyone

Wed, 28 Jan 2009 17:09:40 GMT

While there have been a number of "helpful initiatives" undertaken by credit unions in recent times, they may not be a realistic alternative to payday loans for some people, according to a spokesperson for the Consumer Credit Counselling Service (CCCS).

Frances Walker said that while new changes to credit unions - including the addition of current accounts and the ability for people to borrow money without having to save first - have been positive, they may not "plug the gap for everybody".

"The problem is there have been various initiatives over the years to try and get credit unions really off the ground and I don't know if it is ever really going to happen," she explained.

Parliament heard the first reading of a new private members' bill that is set to update credit union and co-operative legislation last week.

Championed by Malcolm Wicks and supported by the Association of British Credit Unions, the legislation is said to allow credit unions and co-operatives to compete on a more even level with other financial firms.

A romantic gift for car insurance customers?

Tue, 27 Jan 2009 17:03:56 GMT

People looking for the perfect gift to give a car insurance policyholder on Valentine's Day may want to extend their search to the DVLA's Personalised Registrations website.

While most people will think along the lines of flowers or a candlelit dinner when planning to treat their loved one on February 14th, DVLA has other ideas.

It claims that a personalised registration number is the ideal romantic gift and that it experiences a surge in buyer interest during the build-up to each Valentine's Day.

This year it has set up a special feature on its website to help people pick out and purchase the ideal number plate.

DVLA Personalised Registrations' marketing manager Damian Lawson predicted that the service would prove popular, adding: "While the regular plates featuring Xs and K155 are there to be had, the new search system ensures that extra personal touch - in a flash."

Anyone planning to surprise their partner with a personalised plate should be prepared to dig deep into their wallet. Last year, the registration S1 sold for almost £400,000.

Hostelling 'great for price and social aspect'

Tue, 27 Jan 2009 16:16:16 GMT

Staying in a hostel instead of a hotel can be beneficial to the wallet as well as providing an enhanced social aspect to a holiday.

This is the opinion of Johan Kruger, who is head of communication and PR at Hostelling International.

Because there are lots of communal areas in hostels, it can be easier to meet other like-minded travellers, he explained.

Most of the time hostels offer a cheaper type of accommodation so they are also potentially ideal for budget-conscious holidaymakers, Mr Kruger added.

"It depends what you're looking for," he said, going on to note that hostels are often in great locations - from cities to the countryside.

"The top destinations where hostels have been booked are France, USA and England and Wales."

Those who opt to stay in a hostel may still want to take out travel insurance regardless of where they spend their getaway, as many policies cover common aspects such as luggage recovery and medical costs.

Mortgage overpayments 'can help protect equity'

Tue, 27 Jan 2009 12:10:30 GMT

Taking advantage of the low base rate and overpaying a mortgage can help to secure the equity in a property, it was suggested this week.

Council of Mortgage Lenders (CML) spokesperson Bernard Clarke explained that falling house prices may well have an effect on equity.

And during the next couple of years, overpaying could protect equity that would otherwise decline due to the current financial climate, he said.

Mr Clarke also said overpaying a mortgage can help unlock better choices for the homeowner.

"It is also an opportunity for interest-only borrowers to consider switching to a capital repayment model which will help them in the longer term," he remarked.

According to the CML, the number of outstanding mortgages in the third quarter of 2008 was 11.69 million, compared to 11.74 million in quarter two and 11.77 million in the first one.

Now may be a good time for people to benefit from the low rate of interest, which was reduced at the beginning of this month to 1.5 per cent.

Youngsters do save into pensions, says NAPF

Tue, 27 Jan 2009 12:10:11 GMT

Young adults are putting money aside for their retirement because many of them are aware of how important this is, it has been stated.

According to the National Association of Pension Funds (NAPF), there is a misguided belief that this demographic is not saving, but they are doing so despite how far off their old age may be.

Mark Brookes is a spokesperson for the NAPF. He said of even greater importance than saving is the need for younger people to have as much information as possible available to them about different types of pension scheme.

This will help them make "informed decisions", he added.

"It is a myth that young people don't save into workplace pensions because they do," Mr Brookes remarked.

The NAPF aims to provide representation and other services for the pensions industry.

In December 2008 it discovered that confidence in workplace pensions had fallen by one per cent.

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.

Credit card charges 'present over Christmas'

Tue, 11 Dec 2007 12:09:49 GMT

People who are celebrating Christmas in a foreign country this year should double-check that they will not be charged hidden fees for using their credit card abroad, it has been claimed.

According to research from the Post Office, most companies will charge an average of 2.75 per cent on overseas transactions, which could prove costly for the 2.4 million leaving the country for the season.

It added that concerned revellers should make sure they avoid such problems this Christmas.

"Regardless of where people are travelling to this Christmas we are urging holidaymakers to ensure the only baggage they return with is the luggage they are carrying and not unnecessary card charges," commented Gary Fitton, Post Office director of lending.

Meanwhile, research from MoneyExpert.com has found that children in the UK will pick up some £2.4 billion in cash gifts over the course of the Christmas period.

Stressed-out Britons hit net for Xmas shopping

Mon, 10 Dec 2007 16:35:36 GMT

People in the UK are using the internet in order to reduce the tension of high street shopping over the Christmas period, new research claims.

According to Abbey, 45 per cent of people complain about the stress of Christmas whether it be through organising family get-togethers or filling stockings for loved ones.

It added that the most stressed-out demographic are the 25 to 34-year-olds, but that this group is also the most likely to hit the internet shops.

Roger Lovering, managing director of Abbey Credit Cards, commented that companies are now doing their best to accommodate consumers fed up with the busy season.

"Reducing tension is paramount and consequently we're seeing retailers such as supermarkets making it easier to buy everything from puddings to presents under one roof or website," he said.

Shoppers may not welcome the fact that there are 14 shopping days left until Christmas.

Price increase in energy 'expected next year'

Tue, 4 Dec 2007 15:45:55 GMT

The price of energy is expected to rise sharply in the new year, according to a consumer switching company.

SimplySwitch.com believes that companies will begin to up charges at some point before the end of February 2008.

The company has commented that even a ten per cent hike could prove too much for homeowners, pushing them into what it has termed "fuel poverty".

But firm representative Karen Darby has commented that there are some policies on the market which allow a lot more flexibility for consumers.

"In the past, capped deals were expensive, with customers paying way over the odds for their added peace of mind. Now, however, some capped tariffs are nearly as cheap as the UK’s best non-capped deals," she said.

An increase in energy bills may prove costly to those recovering from Christmas spending early next year.

Indeed, money charity Credit Action has stated that personal debt in the UK has now exceeded £1.3 trillion.

It pays to be smart this Christmas, says Citizens Advice

Mon, 3 Dec 2007 15:32:45 GMT

Shoppers have been given tips on how to make the most of their finances this Christmas.

Citizens Advice has commented that those who plan in advance will leave themselves fewer problems to deal with in the new year.

In addition, shopping around on the high street and online can see people save money, although unauthorised traders and lenders are not advised.

Furthermore, the body stated that the paying of everyday bills such as rent should not be forgotten in the run-up to the big day.

According to Teresa Perchard, policy director for the group, it is "easy to get carried away" over the festive season.

"With a little forward planning, Christmas panic buying can be avoided. We hope that these top tips will help people take control of their money as Christmas approaches," she said.

Those who have yet to finish their shopping for the period may be panic-stricken to discover that 21 days remain until Christmas.

Consumer credit activity 'tight over Christmas'

Thu, 29 Nov 2007 15:32:04 GMT

This year's activity in the financial market will influence Britons to spend less this Christmas, a new survey has found.

Research from Cornhill Direct shows that 30 per cent of consumers are planning to spend less over the festive period.

Simon Coughlin from the firm commented that home insurance companies are also worried that an increase in burglaries will also put people out of pocket over Christmas.

He said: "The concern for insurers is the potential for crime over the Christmas period. Official recorded crime statistics reveal an increase in domestic burglaries during the coldest and darkest months of the year."

Over the past year, the Bank of England has seen fit to increase the base rate on a number of occasions, with it currently being 5.75 per cent.

As a result, the cost of credit card repayment plans and mortgage deals have gone up.

'Christmas shopping most popular in November'

Wed, 28 Nov 2007 15:43:36 GMT

The most popular month for consumers to begin Christmas shopping is November rather than December, new research has found.

According to Abbey, 32 per cent of people start hitting the high streets for festive gifts one month before the big day arrives.

October is the second most popular month, followed by December and then September, it added.

The company also commented that 2.9 million shoppers began to fill their stockings back in January - perhaps taking advantage of some new year bargains.

But a spokesperson for Abbey commented that homeowners may not be taking this early activity into account when purchasing home insurance.

"There is a risk that many people are unwittingly without the appropriate cover for the gifts they have been buying," said the source.

A number of Britons may be alarmed to read that there are 26 shopping days remaining until Christmas.

Over a quarter of Brits 'unhappy with net speed'

Tue, 27 Nov 2007 16:31:48 GMT

More than one in every four UK broadband users is unhappy with the speed at which they can surf the internet, according to new research.

A study from uSwitch.com found that close to four million consumers are unsatisfied with the coverage offered by their provider.

In terms of broadband speed, the UK ranks 17th in the world - 23 times slower than traffic in Japan.

Steve Weller, head of communications at the firm, commented that Ofcom should get involved and "force" firms to be more honest about the issue.

"It's like selling a Porsche that will only go as fast as a Reliant Robin," said the expert.

Mr Weller added that firms should not be advertising speeds that their service cannot match.

This comes as a study from US firm Nemertes Research has revealed that the internet may choke and slow down by 2010 due to the high levels of video content and interactivity.

Males 'should foot first date bill'

Mon, 26 Nov 2007 15:29:02 GMT

The battle of the sexes still wages on when it comes to who pays for what, new research has revealed.

According to Cater Allen Private Bank, 54 per cent of people think that men should pay for proceedings on a first date.

It added that people starting their relationships in the north are the mostly like to split the cost of an initial night out.

Sally Ann Watts, the company's head of marketing, commented that "communication is the key" to the issue.

"With over 44 per cent of couples arguing over the issue of finance; communication and setting simple ground rules and boundaries early on can help avoid pitfalls later in a relationship," she said.

Those who do end up paying for a first date may want to make sure they do not spend to much and end up in debt trying to impress a partner.

Research from money charity Credit Action shows that people in Britain are currently in a total of £1.3 trillion in arrears.

UK homes 'possess £74 billion in gadgets'

Thu, 22 Nov 2007 16:16:25 GMT

Homeowners in the UK keep 400 million pieces of gadgetry in their properties, totaling approximately £74 billion.

Research from HSBC group first direct shows that televisions are the most common electronic items for people to buy, with Britons spending £29 bn on sets each year.

Laptop and home computers ring up a £10 bn at checkouts and online per annum, it added, with mp3 and DVD players also popular.

It may be that homes with a large amount of expensive technology inside face larger home insurance bills, or risk more by not taking out a policy.

"This research indicates just how much the UK population relies on technology," said Chris Pilling, chief executive at the firm.

One of the must-have items for technology lovers this Christmas went on sale earlier this month.

The iPhone from Apple will set consumers back £269.99 and is only available in the UK on a contract with O2.

Bank of Grandparents 'saves mum and dad £900 annually'

Wed, 21 Nov 2007 16:05:53 GMT

Financial assistance from their own parents means that mums and dads in the UK save around £900 per year raising their children, it has been reported.

According to Birmingham Midshires, an average of £75 per month is spent by grandparents on toys, gifts and meals for the youngest generation of the family,

Director of savings operations at the group Jason Robinson commented that grandmas and grandpas are "reaping the benefits" of taking out a long-term savings plan.

He said: "Grandparents are contributing significant amounts of time, money and assistance to their offspring at the same time as adjusting to huge changes in their own lifestyle and income."

Earlier this month, Liverpool Victoria reported that the cost of raising a child totalled close to £166,000.

This factored in the time from when a baby is born to when they reach the age of 21.

Worth of inherited items tops £50m

Tue, 20 Nov 2007 16:09:13 GMT

People in the UK currently have £50 m worth of items inherited that they have stored away, according to a high street bank.

Abbey has reported that ornaments make up the bulk of the unwanted knick-knacks, followed by furniture, memorabilia and jewellery.

In addition, the money institution stated that 36 per cent dare not part with the possessions as they would feel guilty, while 52 per cent attach sentimental value to them.

According to head of insurance marketing at Abbey Prasad Shastri, some homeowners are unwilling to include the hand-me-downs in home insurance policies.

She said: "However, should something happen to your home and you only have a limited sum policy you may end up not recovering the full value of the items in your home."

This comes as research from money charity Credit Action has revealed that the UK currently harbours a personal debt mountain of £1.3 trillion.

Which? reveals charity card swindle

Mon, 19 Nov 2007 16:45:20 GMT

The British public may be being misled by the amount they donate when they purchase a charity Christmas card, according to a consumer company.

Which? has commented on research by the Charities Advisory Trust which found that between 4 and 50 per cent of the cost of the greeting actually goes to the designated fund.

It added that most people in the UK (84 per cent) think that more than 40 per cent should be donated.

The retailer and not the charity is picking up the proceeds, commented Which? editor Neil Fowler.

"If you really want to make a difference, buy directly from the charity or its own shops - or if you do buy from another retailer, make sure you check the small print," he said.

Meanwhile, shoppers late off the mark may be discouraged to hear that there are only 35 days left in which to pick up Christmas presents.

Third of Britons think 'financial chat is rude'

Fri, 16 Nov 2007 15:47:12 GMT

The majority of people in the UK believe that money is a personal subject that should not be discussed, new research shows.

According to The Motley Fool's Let's Talk About Money paper, Britons like to keep their mouths closed when it comes to their finances.

Some 16 per cent of people are embarrassed by their debt, while 13 per cent believe that they might be judged based on their level of wealth, the firm added.

Furthermore, 33 per cent of Britons feel uncomfortable when disclosing the size of their salary.

Head of Personal Finance at the company David Kuo commented that this is a "shame".

"Talking openly about money, especially with close friends and family has many benefits. Money matters can often spiral out of control if you don’t seek advice from others," said the expert.

Research from money charity Credit Action has revealed that the UK currently harbours a personal debt mountain of £1.3 trillion.

Christmas spending trends revealed by Apacs

Thu, 15 Nov 2007 15:52:44 GMT

Consumers are to spend a total of £53 billion over the festive period, it has been claimed.

According to payment firm Apacs, card use is on the rise and close to two-thirds of purchases will be put on plastic.

It added that card use is to reach £34.1 billion in December, 64.3 per cent of all money spent, up from the 61 per cent recorded a year earlier.

Cash and cheque purchases are expected to fall by 4.7 per cent this year from the £19.8 billion paid in 2006.

Sandra Quinn, Apacs director of communications, commented that more people are turning to plastic.

"Whether buying the turkey or stocking fillers, we're most likely to be using our debit card to pay for them this Christmas," she said.

This comes as research from money charity Credit Action has shown that the UK's combined personal debt mountain has reached more than £1.3 trillion.

A quarter of property owners 'not shopping around for insurance'

Tue, 13 Nov 2007 15:54:05 GMT

A proportion of homeowners in the UK could be missing out on home insurance savings as they are not shopping around for deals.

Research from Sainsbury's Bank has shown that 43 per cent of consumers choose to either renew or only look at one other provider each year.

Some 26 per cent did not even shop around for an additional quote when their existing deal expired.

Company spokesperson Steve Johnson commented that it is important that homeowners realise the importance of researching the market.

He said: "Although it may seem tempting to just stick with your renewal quote or the first quote you get, it really is essential to shop around."

"Products vary dramatically and there are some cracking deals out there."

Last Monday was Bonfire Night, one of the busiest times of the year for home insurance companies and policy holders seeking claims.

More students taking jobs

Mon, 12 Nov 2007 16:03:37 GMT

Young people in the UK are taking jobs to accompany their studies, according to new research.

The Royal Bank of Scotland has revealed that 37 per cent more students are turning to career-related jobs while at university than in 2004.

Areas the bank recorded as popular were museum curating, civil engineering and local government work, although traditional vocations such as working behind a bar and shop work are still popular.

Head of student banking for the firm Mark Worthington commented that young people are beginning to recognise the benefit of work experience.

"Taking on term-time jobs which are relevant to their future careers provides excellent experience as well as much needed extra money," he said.

Mr Worthington added that a term-time job "helps ease the financial pressure of being a student".

This comes as the Institute for International Education has revealed that the UK is the leading destination worldwide for people looking to study abroad.

Car clampdown sees rogue motorists caught

Thu, 8 Nov 2007 15:49:06 GMT

Police officers in Somerset have come down hard on drivers who continue to break the law on the roads, it has been reported.

According to the Somerset County Gazette, 84 cars were pulled up by officers as part of the Operation Utah initiative.

The local constabulary used automatic number plate technology in order to catch out those breaking the law, it added.

Such hardware involves the scanning of vehicles registrations which are then cross-checked against a police database.

It may now be that those convicted face higher car insurance policies as cover companies view them as a bigger threat on the roads.

"We have managed to stop a number of vehicles and we look to catch travelling criminals and cross-border criminals," commented a police official.

This comes as Hightown Infant and Junior School Travel Plan Committee has written to authorities in an effort to get them to employ a 20 mph limit on a busy road close to two schools.

Balance transfer fee 'rake in £459 million'

Tue, 6 Nov 2007 16:23:31 GMT

Credit card companies are set to gain millions from balance transfer fees from consumers, it has been reported.

According to research from uSwitch.com, firms will be raking in £459 million in charges this year.

This will not be the only source of income for the companies, as they also stand to net £71 million on charges from those who withdraw money on their cards.

Mike Naylor, personal finance expert for the firm, commented that people who switch their debt from card to card may find themselves in trouble in the new year.

"The credit crunch could well become a harsh reality in January when two million balance transfer customers try to carry out their next switch," he said.

Research from money charity Credit Action has revealed that the UK is currently habouring a total combined personal debt mountain of more than £1.3 trillion.

More assistance for first-time buyers

Tue, 30 Oct 2007 15:34:32 GMT

People are likely to increasingly rely on help from their families when looking to get onto the property ladder for the first time, it has been claimed.

Dominic Mansley, managing director of Key Financial Consultants, said that if property prices continue to increase but average salaries do not, then families are increasingly likely to provide assistance to first-time buyers.

Additionally, 100 per cent mortgages are growing in popularity as property prices become less affordable, Mr Mansley claimed.

"I'd always try to investigate a 100 per cent loan-to-value mortgage if savings aren't available," he commented.

According to statistics published by the Council of Mortgage Lenders for the second quarter of 2007, the average first-time buyer is aged 28 and on a salary of £35,000.

The organisation said that the average first-time buyer typically takes out a mortgage for 90 per cent of their chosen property's value.

Fraud cases 'on the up'

Fri, 26 Oct 2007 15:45:46 GMT

An increase in the number of fraud cases has been reported by a top industry body.

The Credit Industry Fraud Avoidance System (Cifas) has shown that there has been 23 per cent more cases of application fraud in 2007.

False insurance claims have also gone up by just under nine per cent over the course of the year, it added.

Cifas claimed that identity fraud was most prevalent in areas close to the M25, with 16 of the top 20 postcodes for the crime being located in the region.

Peter Hurst, Cifas chief executive, commented on this "worrying trend".

He said: "Fraudulent activity is at an all-time high. Fraudsters are becoming more sophisticated and fraud departments are working harder than ever to protect their organisations from the onslaught."

This comes as two brothers running a hotel in Newry have been fined over £2 million pounds for tax evasion.

According to the BBC, Patrick and John McParland picked up a £1.1 million penalty each.

First-time buyers 'prepared to pick up haunted house'

Wed, 24 Oct 2007 15:28:05 GMT

Most people looking to take a step onto the housing ladder would even buy a house said to be haunted, it has been claimed.

Research from Yorkshire Bank has found that more than half of first-time buyers would pick up a property despite it already having residents of a paranormal kind.

It added that two-fifths would try and get a smaller price for the property, while 30 per cent would prefer to take a house with skeletons in its closet.

However, it may be difficult for people to take out a home insurance policy by claiming that the house is haunted.

"It could prove a little trickier to spot a supernatural problem with your potential property. Doing your research in the local area can really pay off when it comes to negotiating a sale price," said Gary Lumby, head of retail for the bank.

Those with a love of all things spooky may be particularly excited at the moment as Halloween is now just one week away.

People 'more worried about burglary during winter'

Tue, 23 Oct 2007 16:18:14 GMT

Nearly half of the people in the UK believe that they are more likely to be burgled during the winter than at any other time of the year, it has been claimed.

Research from Abbey has found that 47 per cent of British adults prefer to stay in their houses rather than leave them empty and run the risk of being broken into.

Home Office statistics make their fears warranted, as 76,400 burglaries took place between October and December 2006 - an amount larger than those registered over the other quarters of the year.

As a result, home insurance companies may find that they receive a lot more claims during the winter months.

"There is a strong correlation between crime and the evenings getting darker," commented Abbey spokesman Prasad Shastri.

"We would ask people to stay on their guard," the source added.

The nights will get darker this weekend when the clocks go back on Saturday night.

Mortgage-paying families 'cutting back on borrowing'

Mon, 22 Oct 2007 16:25:22 GMT

Families in the UK with mortgages to pay are attempting to reduce the amount of money they are borrowing, according to a high street bank.

Alliance & Leicester has stated that this is down to the effect of recent rises in interest rates, which currently stands at 5.75 per cent.

The bank added that falling rates on unsecured loans over the last year have not been enough to "tempt" people into borrowing more.

Director of strategic planning at the firm Sean Murphy said that those with payments on their houses to make are being responsible with their income.

He said: "Families are cutting back on their borrowing and their saving to help ensure they can afford higher mortgage and other household bills."

Formerly a building society, Alliance & Leicester was founded in 1997.

Last year it saw an increased operating income of £585 million.

Aberdeenshire residents 'enjoy best quality of life in Scotland'

Wed, 17 Oct 2007 13:01:33 GMT

People who live in Aberdeenshire have a better quality of life than anyone else in Scotland, according to new research.

Bank of Scotland statistics show that they live in some of the most expensive houses in the country and have enjoyed a 29 per cent increase in property costs over the last year.

The money institution added that the area was followed by East Dunbartonshire and the Orkney Islands, although East Renfrewshire, which finished seventh overall, enjoyed the highest average house price.

"A strong, long economy, along with good schools and a low crime rate has helped Aberdeenshire to become the area with the best quality of life in Scotland in 2007," commented Tim Crawford, group economist for the firm.

In England, the average house price currently stands at £210,578, which marks an increase of 0.2 per cent over the last quarter.

Travellers 'waste £350m through poor packing'

Thu, 11 Oct 2007 12:48:20 GMT

Forgetful holidaymakers spent a combined total of £350 million on items they already have at home but had not packed, it has been found.

Research from Abbey shows that 9.6 million people contributed to this amount, meaning 35 per cent of those going away had to double-up at airports.

Toiletries made up the most forgotten items (45 per cent), followed by travel plugs (34 per cent) and sun tan lotion (25 per cent).

It may be that those who forget to take out travel insurance also find themselves out of pocket if they have an accident during their trip.

Abbey’s head of banking Steve Shore was astonished by the results.

He said: "It's amazing the total amount wasted repurchasing items travellers already own. It seems that a little more forward planning could save the nation a collective fortune."

Research from Credit Action has found the UK’s total combined personal debt to be £1.3 trillion.

Nearly half of Britons 'looking to buy abroad'

Wed, 10 Oct 2007 15:42:42 GMT

Close to half of people in Britain are considering buying property in sunnier climates, according to a financial institution.

Research from Yorkshire Bank has found that 43 per cent are thinking about buying outside on the UK, although 44 per cent fear being ripped off.

Sunnier weather is the big draw to leaving the British property market for most, the firm found, as 66 per cent wanted to purchase a place in a hotter environment.

It added that what people saw as a more relaxing pace of life abroad was also a big attraction for 55 per cent of respondents.

"Buying a house, let alone buying one in a foreign country, can be a challenging business. Despite this, Brits are still convinced that owning property in Spain is a financial decision worth pursuing," said director of retail banking at the firm Steve Reid.

Meanwhile, BuyAssociation has commented that it is easier to make money in European property than through purchasing in the UK.

Disposable income 'at lowest level since 1997'

Mon, 8 Oct 2007 15:58:52 GMT

The amount of money Britons have to spend on what they please has reached its lowest level in ten years, it has been reported.

According to research from uSwitch.com, this has been caused by increases in tax and social contributions, which have gone up by 85 per cent and 77 per cent respectively.

It added that essential household costs have gone up in price by 42 per cent while 73 per cent of people in UK towns and cities have less to spend than the average national disposable income of £16,262.

"Our pay cheques may be getting fatter, but the chunk that we have to hand over to pay taxes, bills and other living costs is growing even faster," said Mike Naylor, personal finance expert at the firm.

This comes as research from money charity Credit Action has revealed that UK's personal debt mountain to be in excess of £1.3 trillion.

"Spend more on us," say moaning partners

Fri, 5 Oct 2007 12:06:52 GMT

A proportion of boyfriends, girlfriends, husbands on wives in the UK are not spending enough on their significant others, new research has indicated.

Findings from Abbey Current Accounts show that 5.9 million people think that their partner does not spend enough on them.

This is a serious issue for the 792,000 people who have actually split up with someone over it - 40 per cent of these being between 18 and 24.

It also found that the amount being spent peaks at 60, when people are spending £1,858 on average on their partners.

Steve Shore, head of banking at Abbey, commented that "love does not come cheap".

He said: "It costs over £1,500 a year to be in a relationship and love keeps on getting more expensive as you get older."

Spending on relationships may stay as it is over the next month, as the Bank of England's monetary policy committee has decided to hold the base rate of interest at 5.75 per cent.

Fraud losses 'up over first half of 2007'

Thu, 4 Oct 2007 16:22:38 GMT

The amount being lost by consumers in the UK to fraud has gone up over the first six months of the year, it has been announced.

According to uSwitch.com, there was a 26 per cent increase in such cases over the period, with a 126 per cent rise in incidents of British cards being used for such purposes abroad.

It would seem that fraudsters have found "another loophole in the system" - using cloned cards in other countries, commented personal finance expert at the firm, Mike Naylor.

He said: "Going forward, the solution is completely out of the hands of the consumer but simple rules can be followed to minimise opportunities for fraudsters."

Fraud is something people in the UK may find particularly crippling, considering recent debt statistics from money charity Credit Action.

The firm has estimated that Britain has an arrears mountain of over £1.3 trillion.

Newborns lead to new debt, research indicates

Wed, 3 Oct 2007 16:20:10 GMT

People who have just had babies typically run up debts of over £1,000 in the year after birth, new research has shown.

According to MoneyExpert, this is the average amount, although seven per cent rack up £2,500-worth while two per cent owes more than £7,000 by the end of the time period.

The research added that 39 per cent of parents together lose earnings following a child's birth, as many reduced their hours in order to accommodate the baby.

Sean Gardner, MoneyExpert.com chief executive, commented that there is often a negative impact to be had from the arrival of a newborn.

"For most of us worries about money go out of the window with the joy of having a baby. It's hard enough coping with the sleepless nights and new responsibilities without thinking about budgets," he said.

This comes as money charity Credit Action has revealed that the amount of personal debt racked up by Britons totals £1.3 trillion.

Abbey issues warning to uninsured students

Tue, 2 Oct 2007 16:06:55 GMT

Close to one in three students are uninsured, according to a recent estimation.

Abbey has revealed that 30 per cent of people at university are expected to be without cover.

This comes despite the fact that one in ten has personal possessions worth more than £5,000, bringing around £3,324 with them from home.

A computer is the most common expensive item students own, followed by televisions, books and a stereo, it added.

People should be looking to insure such goods not as a option, but by necessity, according to Abbey head of insurance marketing Prasad Shastri.

"Over 60,000 students believe the value of their belongings does not justify buying insurance, but we find many people are shocked with how much their belongings are actually worth.," said the expert.

Meanwhile, research from Halifax has found that 71 per cent of people at university will need the help of a student loan to get by, according to Fair Investment.

Britons 'keep £49bn for special purchase'

Mon, 1 Oct 2007 16:32:50 GMT

People in the UK are saving up in order to have money ready for a special expensive purchase, it has been reported.

According to research from Abbey, 14 million savers have amassed around £3,500 each and £49 billion in total.

Holidays top the bill when it comes to what they want to spend it on, although home improvements and car purchase also ranked highly.

Similarly, weddings and cosmetic surgery were also listed, the company commented.

Reza Attar-Zadeh, Abbey's head of savings, commented that the results of the research were "heartening".

"Nothing beats that feeling of being able to splash out on something you have saved long and hard to own," according to the expert.

Despite this, money charity Credit Action has revealed that extent to which Britons are in arrears.

The company commented that the UK has a personal debt mountain of £1.3 trillion.

Apacs: 86% young people use plastic

Fri, 28 Sep 2007 16:48:16 GMT

Apacs, the UK payments association, has revealed that 86 per cent of those aged 18 to 24 hold a plastic card of some kind.

It has published research which reveals only 37 per cent of 18 to 24-year-olds hold a credit or charge card, which compares to a national average of 66 per cent of adults.

Those in that age group who do hold such cards have an average of 1.72, compared to 2.3 for all adults.

Sandra Quinn, director of communications at Apacs, said: "Being able to manage their personal finances is one of the most important life skills a young person can acquire."

Apacs is publishing a series of consumer advice guides aimed at simplifying finances.

Credit Action, a UK debt advice charity, reports that in any one day there are 24.5 million transactions worth a total of £1.4 billion made using plastic cards.

It reports the average amount of consumer borrowing via overdrafts, credit cards and loans stood at £4,515 per British adult at the end of July.

Cashback 'feature held most dear by consumers'

Wed, 26 Sep 2007 12:46:54 GMT

A cashback option has been named the most desirable feature for consumers taking out a credit card, according to new research.

Findings from Abbey have indicated that 20 per cent of card holders commented that they value this facility the most.

Next came low APR, something which 16 per cent of consumers looked for when taking out a card, it added.

However, there was considerably less interest in taking out a card with a charity affiliation as one per cent named it desirable.

According to Roger Lovering, managing director of Santander Cards, the feature may be particularly useful to those consolidating their cards.

"In the current climate, people are becoming more and more savvy about the impact numerous cards have on their credit rating and a significant number of cardholders are now looking to consolidate all their credit cards," he said.

Meanwhile, research from money charity Credit Action has indicated that the UK has a personal debt bill over £1.3 trillion.

East Midlands children 'get more spends'

Fri, 21 Sep 2007 16:03:32 GMT

New research has revealed the stingiest and most generous parents in the UK by region.

According to Engage Mutual Assurance, mums and dads in the East Midlands were most likely to give kids an allowance, with 55 per cent opening their wallets.

Next came the south-east and the north-east - tied with the north-west - 53 per cent and 52 per cent respectively giving their children something to spend.

However, bottom of the pile was London, where 33 per cent of people give their kids an allowance, although this may be for another reason, spokesman Karl Elliott has claimed.

"It is pleasing that so many parents are saving for their kid's future and those children in areas where parents are the tightest on pocket money will thank them in years to come," he said.

Children born after September 1st 2002 are automatically awarded a Child Trust Fund account, which parents can use to contribute to their future.

Close to fifth of drivers leave gadgets on display

Fri, 14 Sep 2007 16:04:02 GMT

Nearly twenty per cent of motorists in the UK are leaving devices on display in their vehicles, making them prone to opportunistic thieves, it has been claimed.

Accoding to Zurich, the average amount of stereos, satellite navigation systems and other valuables average £160 for each car.

In total across Britain, this is a combined risk being taken by motorists worth £4 billion.

According to Zurich head of underwriting Roy Seeds, this may be down to "time-poor" drivers simply not having the time to make sure nothing is on display when they leave the vehicle.

"It's now common for our cars to be filled with our possessions - not just in-car entertainment and driving gadgets," he said.

Statistics from the Home Office have shown that vehicle crime has dropped 51 per cent in the last ten years, although 1.6 million robberies were recorded over 2005 to 2006.

Britons will waste '£125m in CTFs in 2007'

Thu, 13 Sep 2007 15:46:28 GMT

People in Britain will not be taking advantage of over £100 million-worth of child trust funds (CTF) this year, it has been claimed.

According to Unbiased.co.uk, 71 per cent of parents have opened the accounts since the birth of their children, although £125 million will be wasted as some choose not to use them this year.

Chief executive of the company David Elms commented that the funds are a method of ensuring young people have a good financial standing in life.

"Our research has shown that parents are not making the most of this opportunity ... By not using their full funding allowance each year they may potentially be gifting the taxman more money than necessary," he said.

Child trust funds are savings accounts available to infants born on or after September 1st 2002.

Once they open an account, they receive a voucher for at least £250 from the government.

Personal finance classes given £11.5m boost

Mon, 10 Sep 2007 16:17:18 GMT

The government is to spend £11.5 million rolling out a new curriculum which teaches children about personal finance.

According to HM Treasury, children, schools and families secretary Ed Balls and treasury minister Kitty Ussher have announced the cash injection as a way to get children to think about the importance of managing money.

Mr Balls commented that it is important to give young people a head-start on monetary matters.

"It's never too early to encourage children to think about money and saving for the future," he said.

Ms Ussher added that such financial understanding represents a "key life skill".

Earlier this year, money charity Credit Action revealed that extent of the UK's personal debt mountain, made up of credit card bills, loans and other repayment programs.

The organisation claimed that Britain was in arrears by more than £3.1 trillion.

Some 6% of Brits happy to give back when wealthy

Fri, 7 Sep 2007 15:49:38 GMT

Only a handful of people in the UK would be willing to contribute something back to society in the event that their financial worries dry up, it has been reported.

According to the Motley Fool, six per cent have said that they would give money to charity and good causes if they were to become rich.

Nearly a third (31 per cent) of those surveyed would sooner travel, while 11 per cent would choose a quiet life instead.

Head of personal finance at the company David Kuo commented that for many, charity begins at home.

"This is not entirely unreasonable given that attaining financial objectives is never easy, especially if we set tough targets for ourselves. Consequently, there is nothing wrong with rewarding ourselves generously after we reach our financial targets," he said.

Back in reality, the UK's personal debt mountain is more than £3.1 trillion, according to Credit Action.

Nearly 4m Brits in debt denial

Thu, 6 Sep 2007 16:06:18 GMT

Close to four million people in the UK are denying that the debt in which they are living is a problem, it has been claimed.

Research from management specialist Chiltern has found that one in 16 Britons pays off their arrears using more than a quarter of their monthly wage packet.

The company added that people aged between 35 and 44 are the most indebted, with East Anglians the most common deniers.

Across the UK, one in 45 was found to be of the belief that their monetary situation was a problem or that their finances were being stretched.

"There are lots of people who are officially overindebted, but two-thirds of them don't think they have a problem," said Joanne Gill, spokesperson for the firm.

Nationwide there is a total combined personal debt mountain of over £1.3 trillion, according to money charity Credit Action.

Football fans 'may seek debt advice' after this season's live game

Wed, 5 Sep 2007 15:31:37 GMT

Around the UK, football fans are ready to give up going to see a live game in reaction to increasing ticket prices.

New research from Virgin Money has claimed that nine per cent of enthusiasts will give up the beautiful game for a more pleasing cash balance.

This may mean that those who simply cannot give up going end up in bad credit and seeking debt advice.

Chelsea fans were found to be the most apathetic by the firm, with close to a quarter admitting they will not be attending as many matches, while Blackburn Rovers' frozen ticket prices have had a positive result on fans.

"The ordinary football fan is up against it this year," said Virgin Money spokesman John Franklin.

"The overall cost of following your team continues to rise."

Meanwhile, money charity Credit Action has stated that the UK has a personal debt mountain of over £1.3 trillion.

Financial advice 'more valuable than pay-off'

Fri, 31 Aug 2007 11:55:50 GMT

Helping a person sort out their finances is more productive than paying the amount off for them, it has been claimed.

According to the Debt Advice Bureau (DAB), this may be the most effective way of ensuring people get to the root of their monetary worries.

This comes after research from DebtSmart.com claimed that under a third of the 59 per cent who lend cash to friends actually get it back.

When it comes to family, 70 per cent give cash but only 58 per cent reclaim it later on.

Stephen Rose, director of the DAB, stated that lending money is not a
solution to paying off debt.

"In no short space of time debts are being wracked up again. That can't go on ad infinitum, obviously the person getting in debt each time isn't learning anything from it," he said.

Meanwhile, Credit Action has estimated that the UK is in £1.3 trillion of personal debt.

Citizens Advice: Teach personal finance in schools

Thu, 30 Aug 2007 12:04:48 GMT

Children should be taught personal finance while they are at school, a consumer organisation has claimed.

According to Citizens Advice, the classes in economic wellbeing and financial capability announced in July 2007 are something which it supports.

The intention of the classes would be to help young people understand how to be responsible with their finances and avoid debt in the future.

A number of ways exist through which to get the message across, said a company spokesperson.

"There are a whole variety of ways of engaging young people of that age with the issues. There are many different methods, ranging from drama to a whole load of other things," the representative commented.

This comes as money charity Credit Action has claimed that the UK has now amassed a personal debt mountain of more than £1.3 trillion.

Most parents 'struggle with school costs'

Wed, 29 Aug 2007 15:17:54 GMT

Most parents find it difficult to pay for their children's school costs, according to new research.

Citizens Advice has stated that three out of every four families struggle to pay for school photographs, field trips and stationery in a survey which included over 1,000 people in June and July 2007.

Over half expected the cost of school uniforms to go up next term, whole 40 per cent were unaware of any financial assistance that may be available to them.

For a number of parents, basic education may be costly, stated David Harker, Citizens Advice chief executive.

"The government should take stronger action against schools to make uniform policies more realistic and affordable and should monitor schools to make sure they stick to the guidelines," he commented.

Meanwhile, research from the Sutton Trust has stated that boys are less likely to go on to higher education from school than girls.

'Number of advantages available' in offshore investment

Tue, 28 Aug 2007 16:25:22 GMT

A wide variety of options are available to those who put their money into offshore investments, new research has claimed.

ShelterOffshore stated that people who keep funding outside of the UK can take advantage of a broader fund manager base, the perks of different currency rates and deferring taxation.

For those living abroad, it may be that the opportunity to invest in alternative marketplaces comes with "maximum diversification" to them, the firm added.

According to company director Rhiannon Williamson, stronger regulation is also a benefit in some foreign countries.

"There are a whole range of superior offshore jurisdictions which are highly regarded within the financial industry and where regulation and investor protection is actually very high indeed," the expert commented.

In 2004, Ms Williamson founded ShelterOffshore, which has since gone on to become a top resource for expatriates and people looking to invest in property abroad.

Electricity firms 'still cashing in with regional rates'

Fri, 24 Aug 2007 15:13:15 GMT

Electricity companies are still making money out of the regional monopoly status they held in the past, it has been reported.

According to the uSwitch.com, suppliers are charging people in the areas in which they are based an extra ten per cent - £32 on average.

The price comparison site added that in nearly every region, competitors are cheaper than the local company.

Ann Robinson, director of consumer policy at uSwitch.com, criticised the firms guilty of doing this.

"Tactical regional pricing is a tax on loyalty. Electricity suppliers are treating local long-standing customers like cash cows, using them to subsidise the more competitive prices they are offering to new customers in other regions," she said.

Meanwhile, recent research from the company has suggested that electricity is not the only area in which consumers are missing out.

The firm has revealed that £1.8 billion in texts and calls are being left unused in contracts every year.

Interest rates slowing housing market

Thu, 23 Aug 2007 14:32:22 GMT

According to new figures from the National Association of Estate Agents (NAEA), interest rate hikes have finally slowed the housing market.

Numbers of registered buyers, properties on estate agents' books and sales per agent all fell during July and some figures were similar to those normally seen during the quiet Christmas period.

Fewer people are looking to buy a home, with numbers dropping by 2.5 per cent in the same period.

Estate agents reported that an average of 314 buyers registered, compared to the 322 recorded in June and 387 seen in July 2006.

They also said there were not as many properties for sale, with an average of 45, compared to 68 properties in June.

NAEA president Stewart Lilly described the figures as "dramatic" and worrying and said that the summer season and interest rates were to blame.

A recent study by GE Money showed that first-time buyers struggling to get on the property ladder were willing to compromise on space and other preferences in order to do so.

Proportion of people in the UK 'do not know their debt'

Tue, 21 Aug 2007 15:47:04 GMT

A number of Britons do not know exactly how much debt they are in, new research has indicated.

Unbiased.co.uk has reported that 2.5 million people in the UK cannot put a finger on the amount they owe.

Some 15.4 million cannot quantify the figure within £100, while less than half (41 per cent) of people between the ages of 18 and 24 years old would fail to get it within £500, it added.

In order to pay off their debts, one in five admitted that they would sell off their possessions.

The firm's chief executive David Elms stated that this was typical of a generation that seems unable to save.

"'Generation Spend' is allowing debt to dictate behaviour, rather than taking financial control and keeping a check on debts," he said.

Meanwhile, research from money charity Credit Action has found that the UK's total combined personal debt mountain is over £1.3 trillion.

People in debt 'have unrealistic pay-off date'

Mon, 20 Aug 2007 15:38:15 GMT

New research has shown that many of the people in debt have unrealistic expectations over when they will pay the amount off.

According to The Motley Fool, two thirds (66 per cent) will be paying back arrears for longer than they think.

The company stated that the average amount of debt without mortgages in the UK is £11,000 for each person and that 19 per cent cannot make payments at the moment.

Similarly, one in three responded that arrears account for a fifth of their pay packet every month.

David Kuo, head of personal finance at the company, claimed that these figures were "worrying".

"For many, borrowing money is as easy as walking through a doorway. But it's a good idea to ensure that you have a way out before the door slams shut," he said.

Money charity Credit Action has reported that the collective amount of debt in the UK currently stands at more than £1.3 trillion.

Apacs warning reminds consumers of pin threat

Fri, 17 Aug 2007 11:38:49 GMT

Consumers have been urged to ensure they are taking secure measures when using their pin numbers.

Apacs research has revealed that 20 per cent of cardholders do not shield their pin from fraudsters whenever they use a cash machine or make a purchase on their card.

It added that this can be particularly dangerous as criminals may look to copy their card and use it abroad, using the pin to withdraw money.

As a result, the organisation has released the Protect your Pin guide in order to raise awareness of the importance of taking care at the cash point.

"Simple measures such as shielding your pin with your free hand whenever you enter it into a keypad will significantly reduce your chances of becoming a victim of fraud," said Apacs director of communications Sandra Quinn.

The chip and pin method was introduced to the UK on February 14th 2006.

Buy-to-let property 'could see studying child save'

Thu, 16 Aug 2007 11:04:29 GMT

Investing in a buy-to-let property in order to allow a child to live there while at university may help young people save money, according to new research.

Britannia has pointed out that the average student runs up debts of around £14,000 while at university and much of that goes on the cost of accommodation.

However, if a parent were to invest in a property and then act as landlord to their child while they study, they could help them offset some of their arrears in the future.

"This is a great way of giving your child a solid financial start in life and a safe place to live while at university," said Neville Richardson, group chief executive at the firm.

Later today, A-level results will be posted at schools and colleges around the UK.

The outcome of the courses will decide which universities some students attend.

Student debt on the increase

Tue, 14 Aug 2007 09:31:39 GMT

Those enrolling at university in September 2007 can expect to leave with a debt exceeding £20,000, new research has indicated.

A Push study in association with Lloyds TSB has found that this has increased from the £17,000 in arrears estimated for last year's bunch of new starters.

Furthermore, it found that debt for students has increased nearly a quarter over the last term, costing nearly £4,000 for every 12 months a person spends in higher education.

But Lloyds TSB's Catherine McGrath commented that strong financial provision may help people cut down the bill.

"Good budgeting skills can really help students to start off on the right foot while they get to grips with managing their own money. A smart approach is to plan ahead and seek guidance now," she said.

College students around the UK will find out their university futures when A-level results are published later this week.

Retirees '£57m in debt'

Mon, 13 Aug 2007 14:47:17 GMT

A number of people in the UK have retired only to pick up a large collective bill of debt, it has been claimed.

Research from Scottish Widows found that the outstanding mortgage payment, loans and credit card arrears for older people now totals £57 billion.

Some 1.1 million have debts of £38,000 and for one in eight it is £50,000, the findings added.

Head of pensions market development at the company Ian Naismith said that such a financial burden may be too much for some.

"Our research shows that by the time they come to retire, a significant number of pensioners still have a mortgage outstanding on their property, adding financial pressure to their hard-earned retirement fund," he remarked.

And research from Credit Action has showed that debt is not just for the elderly.

The group has reported that the UK currently carries a £1.3 trillion personal arrears bill.

Bigger banking choice 'may exist at supermarkets'

Fri, 10 Aug 2007 13:39:47 GMT

A wider range of financial services may be provided at supermarkets than high street banks in the near future, it has been claimed.

New research from M&S Money found that some people might prefer the convenience of doing their banking while they shop.

It added that longer opening times, allowing consumers to do some last minute financial fine-tuning, would also prove an incentive for people to switch to supermarket banking.

"It is probably something they wouldn't go shopping to look for but while they are shopping they might think 'that's a good idea'. Then they don't have to make a separate trip to the bank," she said.

M&S Money was recently found to be the second favourite among consumers when it comes to changing foreign currency in a Motley Fool survey.

But while the firm does not charge commission and offers a Euro exchange rate of 1.4280, it was beaten to first place by Travelex.

Parents 'not making grade over university saving'

Thu, 9 Aug 2007 12:03:26 GMT

A number of parents in the UK are not coming up to scratch when it comes to saving the money to put their child through university.

Some 70 per cent have admitted that they have made no financial planning for the event, despite the fact that 51 per cent are aware that it costs close to £3,000 per year to put their offspring through higher education, according to F&C Investments.

And 89 per cent do not consider the stock market a viable method of investment for increasing capital.

F&C head of communications Jason Hollands added that equities may prove to be the most effective way of getting a child ahead.

"History overwhelmingly suggests that over long periods of time, such as 18 years, equities make much more sense," he said.

This is a timely reminder of the cost of higher education as A-level results are published next week.

Cutting up cards 'first step to debt recovery'

Wed, 8 Aug 2007 16:01:21 GMT

Making sure they cut up credit cards may be the first step for many towards complete debt recovery, it has been claimed.

According to Mint Financial Services, a person can only resolve not to accumulate further arrears once they have chopped up the plastic.

The firm pointed out that there were a number of long-term problems involved in having debt - including interest on top of the cost of the original purchase.

Debts can be far-reaching and have serious consequences on later life, stated company spokesperson Adrian Kidd.

"You can be penalised for applying for a lot of credit in the last 12 to 24 months. Sometimes you can actually be turned down for a mortgage based on that," he said.

Consumer credit lending totalled £214 billion in June 2007, according to Credit Action.

This marks a 5.2 per cent increase on the same month in 2006.

An uncharted past 'leads to future without credit'

Tue, 7 Aug 2007 14:14:46 GMT

New research has indicated that a person without a credit history may find it harder to borrow money or make particularly large purchases, it has been claimed.

According to Experian, those without a well-documented financial background are a problem for lenders as they do not know how reliable they are.

Usually, money institutions would rely on the electoral roll to assess such matters but, as less people are voting today, this method is not as useful as it once was, it added.

And James Jones, consumer affairs boss for the company, has stated that lenders act more favourably to those with a charted monetary past.

"Lenders do like that proven track record and it can be difficult to get going if you've just turned 18 or moved to the UK from overseas," said the expert.

This comes as Credit Action research shows that the UK has a £1.3 trillion personal debt mountain.

Fool: Loans can become millstones

Mon, 6 Aug 2007 14:56:30 GMT

Taking out a personal loan can turn into a millstone, a consumer finance website has warned.

According to The Motley Fool, people should look into a number of different options in order to reduce the chances of this happening.

Shorter-term deals are one idea it suggested, while variable rates can also help - so long as people take into account the worst-case scenario.

Borrowing the absolute minimum amount is one way to bring down the interest levels a person pays back - ensuring they do not end up biting off more than they can chew.

The company added that there has been a four per cent rise in insolvencies over the past year.

"Taking on debt may sometimes seem like an easy option, but a personal loan can quickly turn into a millstone around our necks, which can only be removed by drastic measures," commented David Kuo, head of personal finance for the firm.

Research from Credit Action has shown that the UK currently carries a £1.3 trillion personal debt.

Consumers 'should be careful in wake of base rate decision'

Fri, 3 Aug 2007 14:29:10 GMT

The base rate level of interest may have been held this week but consumers should still be careful when it comes to borrowing, it has been claimed.

Capital Cobalt has stated that despite the fact that it did not go up, there is enough reason to remain cautious that it will increase in the future.

Company partner Andrew Montlake commented that consumers should be extra careful as there is no way of knowing which way the level will go.

"Although the Bank's quarterly inflation report issued next week will give us the clearest idea of where rates are headed, my message to borrowers in the meantime is be on your guard," he said.

On Thursday August 2nd 2007, the Bank of England's monetary policy committee voted to hold the interest rate at 5.75 per cent - the highest it has been at in more than six years.

Happiness is £10,000 per year

Thu, 2 Aug 2007 15:19:19 GMT

New research from a high street bank has shown the price of happiness to be just over £10,000.

Abbey has worked out that each day people spend an average of £29 on pursuits which make them happy like holidays, beauty products, gadgets and socialising.

It added that this comes to £10,801 - close to half the average UK salary.

Steve Shore, head of banking at Abbey, commented that people are prepared to pay for pleasure, often taking out loans and signing up to credit cards in order to continue spending on the things they love.

"Happiness certainly doesn’t come cheap. With the average Brit spending almost half of their annual wage on pursuits that make them happy, we place a high value on our leisure time," he said.

But money charity Credit Action has showed that the UK currently carries a personal debt total of £1.3 trillion.

Average 50-year-old 'has £7,000 saved'

Wed, 1 Aug 2007 14:25:33 GMT

The average Briton has saved £7,179 by their 50th birthday, new research has indicated.

Abbey Savings has reported that this amount would only net them one-thirtieth of a typical house on the market today.

Yet the over-50s hold 91 per cent of savings assets, 43 per cent of Isa holdings and 33 per cent of stocks and shares, it added.

Alexia Kilby, head of savings at Abbey, commented that the amount will not suffice if people are expecting to use it to supplement their pension in years to come.

"Although the over-50s have been one of the most successful generations, many people need to save more to achieve a good retirement," she said.

However, it may be that some people are unable to spend their funds.

Recent Abbey research revealed that one in five easy access accounts have only one way people to get to their money.

Easy access accounts 'not doing what they claim'

Tue, 31 Jul 2007 13:27:02 GMT

A number of easy access bank accounts are not offering consumers what they claim to, according to new research.

Findings from Abbey Savings indicate that 21 per cent of Isa accounts can be accessed in one way, while 43 per cent can be in two ways.

This limited approach may not be enough for people who want to be able to get to their money at all times.

Further research found that 51 per cent of accounts offered people an online route to their cash, with 49 per cent being given postal access and 70 per cent having the more traditional branch method available.

Alexia Kilby of Abbey said: "The account has to offer a form of management that you are both comfortable and experienced with."

Abbey is the UK's sixth largest bank.

It was established in 1944 and its headquarters is located in London.

Consumers: No end in sight for rate rises

Mon, 30 Jul 2007 14:33:20 GMT

The base rate level of interest will continue to rise in the future, consumers believe.

Lloyds TSB Corporate Markets' Consumer Barometer for July has shown that 79 per cent of people expect the rates to be higher in a year's time, with five per cent believing they will be lower.

It also revealed that people believe that their job prospects are suffering because of this, as only 20 per cent stated that they think conditions will get better in the next 12 months.

Trevor Williams, chief economist for the group, claimed that July's quarter-point percentage increase did little to quell consumer fears.

"They widely seem to agree with the prevailing view in financial markets that at least one more hike is on the horizon," he said.

Last month, the Bank of England's monetary policy committee voted to increase the base rate level of interest to 5.75 per cent.

Students and parents alike 'underestimating university costs'

Fri, 27 Jul 2007 15:04:50 GMT

The financial price of going into higher education is underestimated by both students and parents, it has been reported.

According to the Association of Investment Companies (AIC), graduates finish their courses with £13,252, around £5,000 more than they had originally anticipated.

However, some students are looking to keep this figure down, with 31 per cent living at home to do so, while 93 per cent can expect to receive help from their parents, it added.

Daniel Godfrey, director general of the AIC, revealed that establishing a savings habit in their children would be the best parents could do.

"With some long-term financial planning and if it's at all possible, saving for your children from an early age can give them a financial head start in life," he said.

This comes as money charity Credit Action has claimed the UK's total personal debt mountain stands at £1.3 trillion.

University 'waste of money and time' for one in four

Thu, 26 Jul 2007 14:57:56 GMT

Close to a quarter of young Britons consider it a waste of time and money to go to university, it has been revealed.

Statistics from Engage Mutual suggest that the average £30,000 debt taken on to go into higher education is enough to turn off 24 per cent of people aged between 18 and 24 years-old.

And 26 per cent of parents aged between 45 and 54 agree, with 3GB spokesman for the firm Karl Elliot adding that young people need to be careful where they are putting their money.

"Increasing costs of university and housing mean that young adults will have to think carefully about how much they save and how they invest," he said.

It may be that this research influences those currently awaiting A-level results and considering going to university this year.

The scores will be published next month.

Redecorating 'higher priority than legal changes'

Wed, 25 Jul 2007 15:40:03 GMT

Over half of people in the UK look to redecorate before they consider anything else when buying a new home, according to new research.

Some 54 per cent of homeowners place painting their property as a higher priority over changing the locks, AA Legal Services has found.

In addition, 52 per cent see putting up new curtains as a more worthwhile task than adjusting their will.

Young people are particularly susceptible to this, with 77 per cent of 18 to 24 year-olds putting off tasks which could see them avoid debt in the future in order to redecorate.

"It is vital to get the legalities sorted out to save complications further down the line," said James Molloy, head of AA Legal Services.

Meanwhile, new research from high street bank Alliance & Leicester has revealed that UK residents now own a total of £5.1 trillion in equity and savings.

Warning over joint mortgages

Tue, 24 Jul 2007 14:19:21 GMT

People considering taking out a joint mortgage are being urged to ensure that they know the people they are choosing the product with.

Neil Johnson, PR policy manager at the Building Societies Association, said that there are a number of factors people should consider before taking out such a mortgage.

Although lenders tend to have different terms, providers usually stipulate that all parties are liable if the loan goes unpaid, Mr Johnson suggested.

"Hopefully people have a plan for what they would do should somebody decide to move, because the implications if you don't have that agreement in place can be quite severe for the people concerned," he remarked.

The Council of Mortgage Lenders recently reported that gross mortgage lending reached a new record of £34.2 billion last month, compared with £31.4 billion in May.

However, the organisation's director general Michael Coogan said that borrowers should be "thinking seriously" about the possibility of higher mortgage payments if interest rates rise again.

Consumers urged to consider overseas credit card charges

Fri, 20 Jul 2007 12:22:36 GMT

Many people planning to use their credit cards while on holiday abroad are unaware that they could be charged additional fees by the provider, according to a new report.

Research by the Post office found that 47 per cent of holidaymakers do not know that they will be charged an average of 2.75 per cent for each transaction they make overseas.

Additionally, 34 per cent of those surveyed thought their provider did not charge fees, despite only two cards available on the market that do not.

Gary Fitton, head of lending at the Post Office, said: "It's shocking not only to see how much people are being penalised to use their cards on holiday, but how few are aware of this."

Holidaymakers should check whether they'll be subject to fees with their card provider before they go away, he advised.

A spokesperson for the UK payments association Apacs recently suggested that more people were using credit cards abroad rather than travellers cheques because they are more convenient.

BBA: Consumers' appetite for borrowing falls

Thu, 19 Jul 2007 16:25:46 GMT

The level of unsecured borrowing in June remained at a similar level to the previous month, suggesting that consumer demand is slowing, a new report has revealed.

The latest figures published by the British Bankers' Association (BBA) found that unsecured personal borrowing was "virtually unchanged" in June, after falling by £.5 billion in May.

Additionally, net mortgage lending increased by £5.1 billion but remained below the figure recorded in May and the monthly average of £5.3 billion.

In contrast, personal deposits increased by £3 billion and remained close to the average monthly increase of £3.1 billion.

David Dooks, BBA director of statistics said: "Consumers' appetite for unsecured borrowing on cards, loans and overdrafts remains relatively flat and with personal deposits holding up, household budgets, though clearly tightening, seem to be in good shape."

Brian Morris, head of savings policy at the Buildings Societies Association, said that borrowers should be wary of "overstretching" their finances, while interest rates continue to rise.

Average house price reaches £211,056

Tue, 17 Jul 2007 14:19:30 GMT

The latest figures produced by the Department of Communities and Local Government have revealed that the average property price in the UK reached £211,056 in May.

According to the department, the UK's annual rate of house price inflation in May fell from 11.3 per cent in April to 10.9 per cent during the following month.

However, first-time buyers in London saw the rate of inflation reach 14.5 per cent – higher than the 14 per cent recorded in April.

Responding to the figures, David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, said that the report showed the UK's housing market was continuing to grow at a significant pace.

"House prices should show a further gradual slowing over the coming months but interest rate increases have produced a rapid deterioration in affordability and the prospect of six per cent interest rates by the end of the year will dampen confidence and activity further," he remarked.

Michael Coogan, director general of the Council of Mortgage Lenders, recently warned that many mortgage borrowers would be coming-off fixed-rate loans and could face higher repayments following recent rate rises.

Card firms recoup £50m in penalty fees

Mon, 16 Jul 2007 11:55:04 GMT

Revenue generated by credit card penalty fees for missed payments reached £50 million during the past six months, according to new research.

A study by MoneyExpert.com found that as many as 4.1 million monthly payments on credit cards were either missed or were late during the first half of the year, with many lenders charging £12 for each missed payment.

Sean Gardner, chief executive of the firm, said that if someone is already struggling to afford their regular bills, penalty charges create additional financial pressure.

"Anyone in trouble needs to take action now because the situation will only get worse if they bury their heads in the sand. They need to get their debts under control and cut their spending," he remarked.

The UK's payments association Apacs, recently reported that £321 billion was spent on plastic cards in 2006, with this form of payment now accounting for nearly a third of all consumer spending.

Equity release 'no longer a last resort'

Thu, 12 Jul 2007 17:03:38 GMT

Consumers' perceptions of equity release schemes have changed, according to one expert, who suggested that people no longer see it as a "last resort".

Glenn Osgood, partnership manager for Itune Group, a subsidiary of Help the Aged, said that many people are now choosing this kind of option to free up money in later life.

"We're finding that a lot of people are actually using equity release to fund a similar or better lifestyle through their retirement," Mr Osgood remarked.

In many cases, people choose equity release schemes because they have a great deal of assets but are relatively "cash-poor", he added.

Defaqto recently predicted that the UK's equity release market would pay an increasingly important role in retirement planning, but argued that consumer choice was still limited by the small number of "household names" offering products.

David Black, head of banking at the firm, said that equity release is a "genuine way" a number of people to finance their retirement.

Stamp duty 'a barrier for FTBs'

Wed, 11 Jul 2007 17:20:08 GMT

Rising interest rates and house prices means that affordability is becoming increasingly stretched for potential first-time buyers (FTBs), according to a new report that suggests stamp duty is creating further pressure.

Research by Bradford & Bingley reveals that 68 per cent of FTBs have already paid stamp duty or will be liable to do so for their property purchase.

Andy Wiggans, director of mortgages for the firm, said that the average FTB is now expected to pay £1,000 in stamp duty, when most are "struggling" to save for a deposit.

"Stamp duty was never designed to be a tax on first-time buyers, yet it now affects a vast proportion of them and is seriously hampering their ability to get a foothold on the property ladder," he remarked.

Earlier in the month, the Council of Mortgage Lenders stated that it had been urging the government to introduce a graduated stamp duty system, under which the tax would be applied to the proportion of the property value above the thresholds.

CML: Fixed-rates continue to be popular

Tue, 10 Jul 2007 17:33:55 GMT

New figures have shown that short-term fixed-rate mortgage deals continue to be popular with first-time buyers (FTBs) and people moving home.

A report by the Council of Mortgage Lenders (CML) found that 89 per cent of FTBs chose fixed-rate mortgages in May, compared with 88 per cent in April.

Similarly, the number of home movers choosing to take out fixed-rate deals increased from 72 per cent to 73 per cent during the same period.

CML director general Michael Coogan said: "Taking out short-term fixed-rate mortgages may provide some reassurance, but eventually the loans will revert to a variable rate and the risk of a payment shock is real."

Householders ought to plan ahead to ensure they are able to cope with higher borrowing costs further down the line, he added.

Commenting on the CML's findings, Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors, said that the stamp duty threshold ought to be raised to help ease affordability pressures for FTBs.

Using credit cards abroad is 'more financially secure'

Mon, 9 Jul 2007 17:04:11 GMT

While many people find credit cards more convenient than travellers cheques when making purchases abroad, one expert has claimed that using a card is much safer as well.

A spokesperson for the UK payments association Apacs said that in many countries the only way to cash travellers cheques is by queuing at a bank, whereas credit cards are accepted in most places.

The use of the chip and pin system in UK means that most card users are becoming far more aware of the need for security, but a number of countries have yet to employ the same technology meaning the risk of fraud is higher, the spokesperson suggested.

"The good news is that if you're the victim, your bank will give the money back," she said.

"I think that's another reason why people use cards – because they know they don't lose out financially."

Earlier in the month, Apacs reported that £321 billion was spent on plastic cards in the UK last year, meaning cards now account for nearly a third of all consumer spending.

Mortgage woes 'to increase with interest rates'

Fri, 6 Jul 2007 15:32:23 GMT

The Bank of England's fifth interest rate increase in a year will hit people with fixed-rate mortgages hard, it has been claimed.

According to Paul Niven at the F&C, the bank's decision to put the base rate up could see some homeowners pay up to 40 per cent more.

Mr Niven added that the level of interest could hit 6.25 per cent by the end of the year, with the knock-on effects hitting consumer spending as a result.

The official commented: "Interestingly, the statement accompanying the hike does not make explicit reference to the consumer, which has shown some tentative signs of moderation and instead focuses on a lack of spare capacity in the economy and upside pressures to inflation."

Since August 2006, the bank has increased the base rate in November, January, May and July.

It currently stands at 5.75 per cent.

Price of Downing Street living revealed

Thu, 5 Jul 2007 16:37:39 GMT

The price of living on Downing Street has been calculated by a consumer finance website.

According to Motley Fool, buying the prime minister's house would cost £2.75 million, with the stamp duty setting a buyer back £110,000.

The increase in house prices over the last four years has been highlighted by the firm, who pointed out that if Tony Blair would have owned the property, he would have made £755,000 during his last term.

As a result, Gordon Brown should be relieved that he is only picking up the keys to the London landmark - not the mortgage, commented the company's head of personal finance David Kuo.

"Mr. Brown can be thankful that No 10 Downing Street comes with the job because his mortgage payments would devour four-fifths of his salary," he said.

Last week, Gordon Brown became prime minister of Great Britain following 11 years as chancellor of the exchequer.

Britons hold £13.6 billion in idle cash

Wed, 4 Jul 2007 15:27:29 GMT

People in the UK have £13.6 billion lying dormant in current accounts, it has been claimed.

Research from Sainsbury's Bank showed that if Britons were to put this money into high-earnings savings accounts, they could net £801 million in interest with an account offering a six per cent rate.

It added that 2.87 million people regularly have between £501 and £1,000 sitting in their account, with 1.78 million Britons having from £1,001 to £2,000 - an amount which could earn them an extra £88.50 each year.

"It is sensible to keep a surplus amount in your current account to ensure you do not go overdrawn but many people have significant sums that they are not drawing upon," said Peter Wood, head of savings for the company.

Meanwhile, money charity Credit Action has reported the UK's personal debt total reached £1.325 trillion in April 2007.

Festival lovers 'need to consider rucksack contents insurance'

Tue, 3 Jul 2007 15:16:25 GMT

Music-lovers looking to see their favourite acts at festivals this summer should think about purchasing contents insurance, it has been claimed.

According to Allianz Schemes, those spending the warmer months of the year watching music in fields across the UK might find it best to protect themselves against theft - particularly if they are to take personal music players, wallets and mobile phones with them.

The British Crime Survey recorded 800,000 victims of phone theft every year, so it may be that cover is a good idea if they are to be away from home for a few days, it added.

"Retailers can show their customers that they understand their wider needs by offering them appropriate insurance at point of sale - while also generating a useful extra income," commented Andrew Cackett, strategic marketing manager for Allianz Schemes.

This Saturday, one-day festival Live Earth will take place at multiple venues across the globe.

Madonna, Bon Jovi and The Police will be performing.

Debt 'a prerequisite of student life'

Mon, 2 Jul 2007 15:19:02 GMT

People looking to go to university should come to accept that they will be in debt by the end of their course, according to a consumer organisation.

The Consumer Credit Counselling Service (CCCS) has stated that building up arrears during a degree course is part and parcel of being in further education, with loans, credit cards and bank accounts with specific perks all a part of student life.

But it is important that such financial burdens do not turn young people away from going on to study at university, said Frances Walker, spokesman for the firm.

"You have to accept that going to university nowadays does involve debt … the whole thing is premised on the idea that you have a greater earning capacity when you leave university," she remarked.

Meanwhile, the UK currently has a £1.3 trillion personal debt, according to money charity Credit Action.

Cost of love - £744, says consumer site

Fri, 29 Jun 2007 13:45:42 GMT

The true price of love has been calculated to be £744 a year by a consumer website.

According to MoneyExpert.com, this means that people spend 3.5 per cent of their salary on presents for their loved ones.

Each month, this equates to £62 being put away each month in order to shower significant other halves with gifts.

It added that every year men spend an average of over £200 more than women on their partners - a larger amount that in the past, according to Sean Gardner, chief executive of the company.

"With Valentines Day, Christmas, anniversaries, birthdays and not to mention the month-to-month treats, we are coughing up more than ever before on gifts for partners."

Earlier this year, Elizabeth Hurley married millionaire Arun Nayar.

As a result, the actress may be expecting significantly more to be spent on gifts for her.

Cash machine celebrates 40th birthday

Wed, 27 Jun 2007 15:58:19 GMT

It has been forty years since the world's first cash machine began dispensing money, it has been reported.

Reg Varney, star of television's On the Buses, was the first person to use such a machine when they were first installed at a Barclays in Enfield, North London, according to the bank.

Initially designed only as a means to give people access to their cash around the clock, the holes in the wall have evolved by allowing consumers to pay their bills and top-up their mobile phones as well.

The bank added that by the end of 2006, 1.64 million of the machines had been put in place around the world.

"The cash machine, more than any other banking innovation, has had a major impact on the way we all conduct our lives, not just our banking," remarked John Warren, head of cash machines for Barclays.

Cash machines recently began dispensing the UK's new £20 note, which features economist Adam Smith.

The UK's fashion habits 'cost £6K'

Tue, 26 Jun 2007 15:47:17 GMT

Over the course of a lifetime, Britons spend more than £6,000 on clothes and shoes they do not even want, it has been claimed.

Scottish Widows research shows that people lie about the cost of their threads, too, with 60 per cent claiming to have been economical with the truth over the matter.

Women are more prone to this than males, with 70 per cent admitting to it.

However, 57 per cent of men claimed to have also done this, it added.

And these figures may imcrease as the summer holiday season approaches and people feel the need to buy new outfits and shoes, causing Scottish Widows customer and brand marketing manager Mike Hoban to issue a warning to shoppers.

"Shopping may be fun but, as this study shows, a large proportion of the money we spend on clothes and shoes is going to waste in our wardrobes instead of staying in our wallets."

Credit Action has revealed that the amount of personal debt in the UK stands at over £1.3 trillion.

Credit cards 'picked by brand'

Mon, 25 Jun 2007 15:46:11 GMT

A person is more likely to take out a credit card if they are impressed by the brand behind it, it has been reported.

Some eight out of ten are likely to put company recognition before any other factor when picking up new plastic, according to a Motley Fool reported.

While brand awareness may seem like a superficial attraction to taking out a card, two out of five are happy with the service they get from the credit providers they pick.

But David Kuo, the Motley Fool's head of personal finance, has warned the industry that it must take care of its customers.

"It must stop talking of introducing annual fees for low-usage customers, which sends out the wrong message to sensible consumers," he said.

This news comes as research from money charity Credit Action shows that the UK has amassed a personal debt mountain of £1.3 trillion.

Youth 'choosing housing over uni'

Fri, 22 Jun 2007 16:03:01 GMT

Young people are choosing to save up to buy a house rather than go to university, it has been reported.

According to the Lloyds TSB mortgages Next Generation of Homeowners Report, one in ten 18 to 24 year-olds look to purchasing property rather than enhance their reputation.

It added that a further one in five has decided to give up on their first choice career for a better paid job which will help them onto the housing ladder.

And Alison Burns, mortgage sales director at Lloyds TSB, has stated that buying a house has now become a very important issue for people of all ages.

"The fact people are willing to forgo their education highlights the importance of homeownership to the younger generation," she said.

Meanwhile, new figures released by the Council of Mortgage Lenders have shown that mortgage lending went down in May 2007.

'Enormous amount' spent by the young

Thu, 21 Jun 2007 16:09:52 GMT

An enormous amount of money is being spent by young people in Britain each year, it has been reported.

The UK's seven to 19-year-olds tot up a bill of £13.9 billion every 12 months, usually on computer games, clothes and going out, according to new research from Mintel.

However, it may be that less responsible spending in the future leads to debt in later life and problems when it comes to picking up a mortgage or other credit purchases.

And Paul Burton, consumer education authority at the Office of Fair Trading, commented that they should therefore be more cautious with their cash.

'The amount spent by young people is enormous Having a skilled group of consumers shopping around and aware of their rights benefits us all," he said.

Research from money charity Credit Action has showed that the UK currently has a £1.3 trillion personal debt bill.

More free cash points from banks

Wed, 20 Jun 2007 14:51:31 GMT

Banking institutions in the UK are to offer more free cash points, it has been claimed.

This comes as part of the British Bankers' Association's plans to incorporate full final inclusion for millions of customers.

Money institutions are "determined" to give millions more people free access to their cash and will look to place more holes in the wall where those in poor areas can benefit, it added.

And Angela Knight CBE, speaking on behalf of the organisation, outlined the proposals.

"Banks have driven a campaign to put machines into some of the UK's poorest areas," she said.

"We are working hard to ensure banking services are open to everyone."

The news of more free cash machines may be criticised in some corners as a move to encourage people to spend more money.

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

City goals 'hit fans in pocket'

Tue, 19 Jun 2007 16:12:12 GMT

Seeing Manchester City score at home last season cost fans an average close to £50, it has been reported.

Research from The Motley Fool found that the Eastlands outfit - who finished 14th in last season's league competition - scored a record-low ten home premiership goals.

By comparison, the Manchester club's Lancashire rivals Blackburn Rovers pay an average of £11.25 for a goal, it added.

This comes despite City's relatively low season ticket prices - although some fans may have had to take out loans in order to pay for them.

"Many of us get a kick out of football, but paying as much as £500 to watch your team put just ten goals in the onion bag at home is enough to bring a tear to even the most dedicated fan's eyes," said the company's head of personal finance, David Kuo.

Lifelong Manchester City fan Bernard Manning died in a North Manchester hospital yesterday aged 76.

Cost of a dad calculated

Mon, 18 Jun 2007 14:49:46 GMT

The price of having a father around the house has been summated in a new piece of research.

Friends Provident has calculated the money having dad around saves around £12,914.

In terms of playing the handyman, fathers can save the family close to £5,378.50 and is a far cheaper alternative to hiring a professional.

When it comes to household chores, the company revealed that dad can save £4,161.16 with an extra £546.78 to be taken into account if the patriarch likes to use his green fingers around the garden.

Similarly, fathers doubling up as taxi drivers can save around £4,164.16 annually - a sum their children would realise if he could no longer do it.

"If dad were unable to work a family would soon realise that money doesn't grow on trees," said Mark Jones, protection and actuarial manager at Friends Provident.

The first Father's Day was held in Fairmont, West Virginia on July 5th 1908.

Britons living a 'financial fantasy'

Fri, 15 Jun 2007 15:12:27 GMT

People in Britain are fantasists when it comes to planning their finances for the future, with many counting on money they believe they will earn in future, it has been reported.

According to the NS&I Quarterly Savings Survey for spring 2007, 33 per cent of UK citizens believe their wage will increase in order to accommodate their spending, without making detailed money plans in the process.

While 24 per cent revealed that they were expecting a larger packet, 11 per cent still have not worked out a detailed money plan, it added.

And this may see people end up in debt - a "real concern".

"There's never any guarantee that people will earn more as they get older so it's really important that people start their financial planning and start saving as early as possible," said Dax Harkins, senior savings strategist at NS&I.

Meanwhile, money charity Credit Action has revealed that the UK's personal debt mountain currently stands at £1.3 trillion.

Overdraft charges 'total £52 million'

Thu, 14 Jun 2007 15:19:51 GMT

The increase in the interest rate in recent months has been accompanied by banks hiking up overdraft charges, it has been reported.

According to uSwitch.com research, an average 0.93 per cent rise in rates has been recorded across nine banks at the same time the base level has gone up by 0.5 per cent.

This could have a serious effect on the 52 million Britons who rely on their overdraft to get by, the company added.

In total, these people will pay £52 million in charges to the banks - a move that has been called under-handed by Mike Naylor, personal finance expert at uSwitch.com.

"These banks have been very sneaky by just increasing overdraft rates and not the in-credit rates and we are pretty certain that the other banks will follow this trend by the end of the year," he said.

This news may not help the UK's personal debt mountain, estimated by money charity Credit Action to total £1.3 trillion.

Best energy deals 'received by few'

Wed, 13 Jun 2007 15:44:52 GMT

The majority of people receiving energy bills in the UK are not getting the best deals, it has been reported.

According to uSwitch.com, seven out of eight consumers get true value for money on their utilities, with 12.5 million missing out on potential savings by sticking to their current contract.

If a customer were to change the way that they pay, for example, they could find themselves with an extra £204 in their pocket each year.

"Good energy deals do not come to those who wait, they come to those who take and people really do have to take action for themselves by choosing the deal that suits them best," said Geoff Slaughter, energy expert at the company.

Improved utilities pricing could see consumers reduce the amount of debt they owe.

In the UK, money charity Credit Action has calculated the debt mountain to be £1.3 trillion.

Rewards 'not being picked up by credit card customers'

Tue, 12 Jun 2007 15:35:21 GMT

People signing up for credit cards may not be taking advantage of the rewards being offered to them, it has been reported.

According to the Post Office, 60 per cent are not picking up the features originally packaged with their cards.

Of the deals that may be on offer, low interest rates and zero per cent on purchases and balance transfers were the most popular among those surveyed, it added.

But it found that cashback deals only yielded people an average of £37 and 49 per cent of customers did not pick up any reward at all - something they should investigate, according to managing director Alan Cook.

"We urge credit card holders to look at the long-term value offered by their credit card particularly as almost a third (32 per cent) credit card users have held their card over five years."

People looking to ease the pressure on their finances may look to a personal loan as an alternative to a credit card.

Get finances fit, urges BBA

Mon, 11 Jun 2007 15:30:55 GMT

Authorities in the banking industry have told people that they should look to get their finances into shape over the summer months, it has been reported.

The British Bankers' Association (BBA) has commented that people should treat their bank like they treat their gym and use to it improve their monetary matters.

In order to do this, it may be that Britons develop a scheme in the same vein as a fitness programme, according to BBA chief executive Angela Knight.

"The British Bankers' Association is recommending customers take a little time to plan their financial needs just as you would consider your physical health. That way you can ensure your finances are in good shape," she said.

Meanwhile, the monetary policy committee of the Bank of England last week convened to keep the interest rate on hold at 5.5 per cent until at least August 2007.

This follows last month's quarter-point increase from the 5.25 per cent level set in January.

Roaming charges to drop

Fri, 8 Jun 2007 13:38:33 GMT

Roaming charges for people using their mobile phones abroad are to be cut, it has been reported.

The European Telecoms Council's decision to cap rates could see those taking a break on the continent later this year save money.

However, SimplySwitch.com has pointed out that, as the legislation will not take effect until three months from July 2007, the changes may prove to be too late for those vacationing over the summer.

It may be that those escaping earlier will not avoid plummeting into debt due to using their mobile on their travels.

But Karen Darby, founder of the company, believes that the decision is ultimately positive.

"It's very encouraging to see the European Parliament take action so swiftly without entangling itself in red tape," she said.

Earlier this week, SimplySwitch.com reported that 855,000 mobile phones were lost down toilets in the UK last year.

In total, this generated a debt of £342 million.

Firms 'turning blind eye to sickness'

Thu, 7 Jun 2007 15:44:43 GMT

Many finance companies are not putting in place procedures to cut down on staff sickness, it has been reported.

According to healthplan provider HSA, nearly 50 per cent of firms in the industry have not taken measures to put in place a strategy in order to reduce employee absence.

It added that this comes as close to half of all sector workers have more than five days off work sick each, with 61 per cent of companies failing to acknowledge them - and the cost of the missing days - on the books.

"Those companies that do not have a strategy in place to reduce sickness are missing a trick. Sickness absence costs businesses huge sums of money each year in the form of lost productivity," said Amanda Wilkinson, editor of employee benefits for HSA.

It may be that sporting events like the World Cup, as well as popular movie releases, caused many unnecessary sick days in 2006.

More than £300m worth of phones down the toilet each year

Tue, 5 Jun 2007 15:41:01 GMT

Britons flush £348 million worth of mobile phones down the toilet each year, a consumer site has reported.

In total, 855,000 devices are lost in this way every 12 months, according to SimplySwitch.com - meaning close to a million people may end up having to pay for a new one.

Pubs, taxis and buses are also common places in which handsets are misplaced, while 58,000 are damaged by household pets.

Also on the domestic front, 116,000 went beyond repair after being put in the washing machine.

"With handsets now costing up to £400, and people often opting out of the insurance package, theres more reason than ever to look after your mobile," said Karen Darby of SimplySwitch.com.

A new handset may also be needed after a car accident - if people are illegally using their phones.

On February 27th 2007, a £60 fine and a licence point penalty accompanied such a conviction.

Most landlords 'keep the tenants' deposits'

Mon, 4 Jun 2007 15:22:40 GMT

Most landlords in the UK choose not to return a deposit once a tenant decides to leave their property, it has been reported.

According to Alliance & Leicester Mortgages, over half of property owners do not return the amount, often claiming damage-related reasons.

Some 26 per cent believe that the state of the property was not as it should be, while 15 per cent of landlords commented that tenants did not pay their bills.

Cleaning costs (22 per cent) was another factor, as was problems with the furniture and unpaid rent (25 per cent).

"Agreeing on an inventory, taking photos before tenants move in or employing a letting agency can minimise the risk of any arguments," said Jeremy Claridge, head of specialist mortgages at Alliance & Leicester.

A landlord in Blackpool will pay a £3,000 fine after he was found to be in breach of fire regulations - resulting in a blaze at his apartment block.

People 'are stashing £3.5 billion at home'

Fri, 1 Jun 2007 15:39:09 GMT

People in Britain are hiding away a total of £3.5 billion in cash within their homes, it has been reported.

Royal Holloway University carried out the research for Virgin Money and found that the equivalent of 1,000 police officers' salaries is stowed away by hoarding Britons.

This amount could have paid for the new Wembley stadium five times over, although there may be disadvantages in not using a bank.

Virgin claimed that this money could be making £174 million in interest each year - the total of 5,400 nurses in full-time employment.

"Keeping cash at home is not wise: the British are throwing away the opportunity to easily earn several hundreds of millions of pounds of interest over a few years," commented Dr Alexander Koch, who carried out the research at Royal Holloway University.

However, money charity Credit Action has claimed that the total amount of personal debt in the UK currently totals £1.3 trillion.

Pensions debt 'risked by the self-employed'

Thu, 31 May 2007 15:43:10 GMT

People in the UK who are self-employed are risking debt by not putting away enough for when they retire, a pensions authority has claimed.

As well as those who work for themselves, people who own small businesses may also see problems in the future if they do not consider what they are setting aside, according to the Pensions Advisory Service.

It may be that this is down to consumers being confused as to the investment options they have available to them, it added.

"Surveys that have been done in the past have shown that the self-employed are one of the more significant groups that are under-providing for retirement," said technical manager Tony Attubato.

Earlier this month, a study from the National Association of Pension Funds showed that two thirds of workers would choose to take a lower paid job in return for a guaranteed workplace pension policy.

Couples 'indebted in holy matrimony'

Tue, 29 May 2007 16:36:15 GMT

The happiest day in the lives of couples may also be the most expensive, it has been reported.

The average wedding costs around £18,000, according to the Daily Record, with close to a fifth of this amount being paid with the help of either a loan or a credit card.

But debt counsellors have claimed that they are seeing twice the amount of newlyweds than in the last few years, while money troubles may see marital bliss last only as long as the honeymoon.

Bev Budsworth of fianancial specialists The Debt Advisor has suggested that such a financial strain may lead to problems in the home.

"Their new lives together are blighted from the start by debt. The wedding itself causes cracks in the relationship," she said.

This new debt could add to the £1.3 trillion in personal arrears amassed in the UK reported by money charity Credit Action.

Banks 'need to be more innovative with online services'

Fri, 25 May 2007 18:50:41 GMT

Banks and financial companies have failed to make best use of the internet for banking services over the last decade, according to an online banking pioneer.

Jim Spowart of Peopleschampion.com, revealed that most banks have sought only to provide an online variant of existing traditional banking services, as opposed to offering completely new and revolutionary features.

He added that banks have been concentrating on profitability and as such have failed to change the nature of banking significantly.

"The poor old traditional bankers are still scratching their heads looking for ways of gaining customers, yet the whole game has changed," explained Mr Spowart.

"For example, indiscriminate mail shots to thousands of customers are a waste of time today it is about giving the customer choice and guiding them to the best deal," he concluded.

However, Apacs, the UK's payments association, commented that online banking has "totally changed" the way in which consumers manage their accounts.

Apacs marks tenth anniversary of online banking

Wed, 23 May 2007 14:42:34 GMT

It has been ten years since people began to use the internet as a method of managing their finances.

Research from Apacs to mark this milestone has shown that 18.1 million banked online during 2006, making it a more preferred way to monitor monetary matters than by doing so over the phone.

The payments organisation added that 84 per cent use their online services to pay bills and transfer money, with a further 90 per cent shopping online.

"Online banking has totally changed the way we manage our accounts, enabling us to keep a much closer eye on our finances outside of traditional banking hours," said Sandra Quinn, director of communications at the company.

But online banking may not have had an effect on debt in the UK.

Money charity Credit Action has estimated that the current amount of national arrears totals £1.3 trillion.

Research shows withdrawal patterns

Mon, 21 May 2007 15:47:22 GMT

A new study has looked into how people in the UK get hold of their cash.

Apacs' The Way We Pay 2007 report found that the proportion of money being taken out at a cash point has doubled to 65 per cent since 2006 against the 34 per cent recorded in 1996.

The research stated that the number of withdrawals was 1.6 billion in 1996, compared to 2.8 billion a decade on.

Similarly, card-based transactions such as cash back accounted for 12 per cent of cash demands in 2006.

"During 2006 we spent £274.3 billion in cash; it is interesting to look at the methods we use to acquire this cash and how our preferences have changed over the years," said Sandra Quinn, director of communications at Apacs.

In January, money charity Credit Action estimated that the total amount of personal debt accumulated throughout the UK was over £1.3 trillion.

Keep on reclaiming bank charges, says Which?

Fri, 18 May 2007 15:40:37 GMT

People should not give up in their quest to reclaim unauthorised bank charges, it has been stated.

Which? has told consumers to keep going despite a recent Birmingham court hearing on the matter which ruled against a campaigner.

"This news must not deter people from reclaiming their bank charges," said Emma Bandey, Which? personal finance representative.

The company has also offered a series of tips for those looking to get some of their money back - with the first one suggesting people do not pay straight away and instead query the bill.

Those looking to make a claim should use the Data Protection Act to view old records and work out exactly how much they have paid. Once this is done, complain to the bank.

From here, if nothing has been resolved, it added that the customer should get into contact the Financial Ombudsman Service.

The Financial Services Authority has also stated it is investigating the matter.

Rate of inflation for elderly 'too high'

Wed, 16 May 2007 12:10:32 GMT

Elderly people are facing inflation rates that are too high, it has been claimed.

According to the Alliance Trust Research Centre, people over 75 years of age heading households have faced a level of inflation over three per cent since May 2006.

The organisation's Age and Inflation alert has found that, at the moment, the rate stands at four per cent, a drop from 4.7 per cent and over the 2.8 per cent headline level of inflation.

And it is in food prices and utility costs that pensioners seem to be falling short, commented Shona Dobbie, head of the centre.

"The impact of higher prices for basic goods and services, such as heating and food, almost always falls most heavily on the elderly and those on low incomes," she said.

Homewise has recently found that one in ten pensioners lives without the most basic domestic appliances.

Cost of moving is £54,400 per lifetime

Tue, 15 May 2007 16:34:13 GMT

Over the course of a lifetime, the cost of moving house totals £54,400, it has been claimed.

According to Abbey, Britons spend £16,000 each time they move, estimating that the average person changes address three or four times during their life.

It added that in total, people in the UK spent £28 million on the act last year.

Abbey head of mortgages Nicci Audhlam-Gardiner remarked on the expense of moving house, which the company estimated to be worth two years salary.

"With over two years annual average salary just meeting the costs of professional fees and stamp duty of their three or four moves, homeowners clearly need all the help they can get," she said.

And the cost of buying a house has gone up, according to Rightmove.

In March, property values went up by £8,000 on average a 3.6 per cent increase.

British keep their finances 'secret'

Mon, 14 May 2007 16:12:07 GMT

People in the UK would sooner discuss relationship and health problems before they talk about money, it has been revealed.

A new survey from Scottish Widows has found that 90 per cent prefer to keep their salary a closely-guarded secret, admitting that they are twice as likely to discuss problems with their well-being or love life first.

Similarly, two out of three keep their financial status from their nearest and dearest, it added.

And financial secrecy may be a result of shame or uncertainty over money matters, with Scottish Widows' Mike Hoban citing it as a possible reason for a lack of financial preparation.

"It's no surprise that the nation is under-saving and under-preparing for the future when money is clearly such an uncomfortable subject," he said.

Money charity Credit Action did not keep its recent personal debt statistic secret.

It has claimed that the UK has amassed a total of £1.3 trillion in arrears.

Homeowners hit by interest rate rise 'should seek help'

Fri, 11 May 2007 15:55:04 GMT

People who think they may struggle as a result of the increase in the interest rate should look to get help, it has been claimed.

Yesterday, the Bank of England's monetary policy committee voted to raise the base rate to 5.5 per cent - the fourth time the level has gone up since August 2006.

And homeowners reeling in the wake of the decision should contact their mortgage provider as "a matter of urgency", according to the director-general of the Building Societies Association, Adrian Coles.

"Talking to your building society is particularly important as further rate rises are still a possibility," he said.

He added that those with a fixed-rate deal are unlikely to be affected, but those on a variable rate should seriously consider taking counsel or risk potentially losing their home.

The latest increase in the interest rate comes after January's shock hike to 5.25 per cent.

People in the UK 'quick at choosing dwelling'

Thu, 10 May 2007 16:20:17 GMT

When it comes to picking a place to live, Britons take an hour and a half, according to new research.

This is faster than the time it takes most to choose a holiday, Abbey Mortgages has stated.

People in the UK may be decisive, but 49 per cent of respondents to the survey reported an initial setback after buying the property - a problem that may have been addressed if they had taken more time.

Similarly, the report added that some people found other problems, such as the neighbours (14 per cent) or decor that was not to a particularly high standard (21 per cent).

"It really is crucial that home-buyers do as much research as possible before making an offer on a new property," said Abbey head of mortgages, Nicci Audhlam-Gardiner.

Meanwhile, today's interest rate decision could see one in seven homeowners struggle to make payments, according to a report from Firstrung.

Inheriting debt is 'a fear of the young'

Wed, 9 May 2007 14:56:06 GMT

The debt mountain left by a deceased parent is something most young Britons fear, it has been revealed.

A survey from AA Legal Services has found that 70 per cent are worried that they will end up with the arrears of their mums and dads.

Similarly, 86 per cent of respondents are concerned that they will receive nothing except debt when their parents pass on, with 31 per cent expecting sibling rivalry to be an issue when it comes to who gets what.

However, these people need not rely on this income if they start saving some money themselves, a spokesman for the company has claimed.

"As young families take on bigger and bigger debts to get a foot on the property ladder, few are banking on a future inheritance to help clear the mortgage," said James Malloy, head of AA Legal Services.

Meanwhile, money charity Credit Action has cited the UK's combined personal debt mountain to be £1.3 trillion.

First-time buyers affected by high interest rates

Tue, 8 May 2007 15:42:10 GMT

More income is being spent on mortgage payments by first-time buyers (FTBs) in the face of higher interest rates, it has been reported.

According to the Council of Mortgage Lenders (CML), FTBs spent an average of 18.3 per cent of their finances on mortgage interest payments in March 2007.

It added that this is an increase on figures from February 2007 (18 per cent) and February 2006 (16 per cent).

Income multiples have also increased for FTBs, up to 3.31 in March compared to 3.30 one month previous.

But many homeowners may have already protected themselves against such rises by picking up fixed-rate products.

"It is encouraging that those first-time buyers who are getting a foot on the property ladder are opting for fixed-rate products," said CML director general Michael Coogan.

A report from Rightmove last month found that house prices went up by £8,000 over March.

Increase in interest rates 'could see millions refinance'

Fri, 4 May 2007 15:42:11 GMT

Millions of homeowners may look to refinance if the interest rate goes up this month, it has been claimed.

If the last interest rate saw mortgage holders becoming stretched, a further one this month could see some selling or remortgaging, according to moneysupermarket.com.

A £100 increase in mortgage payments would make over seven million people look at remortgaging, it claimed, while 2.6 million would consider it in the event of a £50 rise.

"Anyone finding it difficult to make their mortgage repayments already (or who think they might after the next rate rise) should try to remortgage to a better deal before next Thursday," said Louise Cuming, head of mortgages for the consumer organisation.

On Thursday, the Bank of England's monetary policy committee will meet in order to decide on the appropriate base level of interest.

Currently, it stands at 5.25 - its highest value since July 2001.

Warning for homeowners looking to make improvements

Thu, 3 May 2007 15:18:49 GMT

Britons who are considering doing some DIY over the bank holiday weekend should make sure they do not end up destroying their houses, according to a financial services body.

Some 4.1 million homeowners attempt to make improvements to their property each year, Halifax has estimated, spending £670 million in the process.

And with 11 million people looking to completely overhaul their dwelling, the £153 billion bill they collectively pick up works out at around £13,800 for each project, it added.

"We'd advise anyone planning any major improvements to their home to employ qualified and reputable tradesmen, rather than going it alone," said Vicky Emmot, senior manager of underwriting at the company.

A person looking to carry out home improvements, like the installation of a new bathroom or kitchen, may consider taking out a personal loan in order to pay for it.

Providers 'fooling borrowers with PPI'

Wed, 2 May 2007 15:18:16 GMT

The consumer group Which? has stated that customers may be fooled into taking out payment protection insurance (PPI) when they apply for a loan.

Out of 41 service providers contacted by the body in a mystery-shopper exercise, 24 included PPI costs within the explanation of loan details.

The body claims that people may be unnecessarily being confused by quotes for PPI and being tricking into taking out unsuitable insurance.

Critics say that PPI is overpriced for what it offers; a 'backup' if a customer is unable to keep up repayments on a loan if they fall ill or are unable to work.

Editor of Which? Money, Martyn Hocking, said that the automatic addition of the service to a loan application is confusing the process for customers.

"PPI is not always suitable, yet our research shows that lenders are still extremely keen to sell it to us," he said.

"By adding PPI to loan quotes automatically, people could be tricked into buying it regardless of whether they need it or not."

Which? says that it campaigns on behalf of the consumer to point out and compare deals in a multitude of fields including technical equipment and money services.

Soft commodity costs 'have gone up'

Tue, 1 May 2007 14:54:47 GMT

The price of soft commodities has gone up over the past five years, according to reports.

Since April 2002, Clerical Medical states that corn costs have risen by 79 per cent along with a 58 per cent increase in raw sugar.

Wheat has also gone up by 58 per cent over the same period while the value soya oil has doubled due to a 109 per cent rise, it added.

"Soft commodities - wheat, corn, grain, sugar, palm oil and soya - have surged in value over the past few years," said Tim Crawford, group economist at Clerical Medical.

In the wake of this, people could now be paying more when it comes to their weekly shop, meaning some may find it difficult to keep up with monthly debt repayments or utility bills.

Research from Sainsbury's Bank has found that the average householder spends more than £11,000 per annum in order to maintain a home.

Two of the 'big six' see cuts

Mon, 30 Apr 2007 14:33:31 GMT

Of the biggest energy suppliers on the market, two have discounted their rates, according to a consumer switching company.

As a result of this, SimplySwitch.com has stated that consumers will save a combined total of £12 million on their gas and electricity bills.

The drop in costs is a positive step after the 80 per cent hike in prices over the last three years, it added.

However, the decision to time the move with the onset of summer - and the warmer weather - has been criticised by the company's founder, Karen Darby.

"It's a pity they only come into effect after most people have turned off their heating," remarked Karen Darby.

SimplySwitch.com recently teamed up with supermarket chain Asda in order to provide the 13 million members of the public with a new utility comparison and switching website, according to Checkout Magazine.

Discounted prices shake up energy market

Fri, 27 Apr 2007 16:22:42 GMT

The price of energy is to be discounted by a top utilities provider in order to shake up the market, it has been reported.

British Gas customers will receive a six per cent discount on their electricity bill, while those who the company provides gas for will benefit from a three per cent discount.

Furthermore, the organisation could still afford a total customer saving of up to £196, according to the consumer price website uSwitch.com

Reacting to the news, Geoff Slaughter, energy product manager at the company, described the announced price cut as "refreshing".

"The key thing now for consumers is not to become complacent about price cuts. We know that there is still scope for plenty more," he said.

Also in the market, French utility provider EDF Energy has claimed that it will be bringing in lower service prices in the near future.

People in the UK 'should be tight-lipped' instead of disclosing details

Thu, 26 Apr 2007 11:44:45 GMT

Sensitive information is being revealed to strangers by Britons regularly, according to new research.

Some 6.1 million people in the UK have admitted that they reveal personal problems to people they do not even know, according to online money service company PayPal.

The workplace is a common backdrop for this, it added, with 6.6 million claiming that they give out sensitive information to colleagues.

Furthermore, alcohol has been blamed by 6.1 million Britons for making them loose-lipped, even though 6.6 million know it is not a very clever idea.

"The research has revealed that people in Britain arent backwards in coming forwards, and seem to have a no holds barred policy when it comes to revealing information about themselves," said company spokesperson Christina Hoole.

Such carelessness can lead to identity theft, which could in turn plunge people into debt.

Financial body Cifas recently revealed that the number of reported cases of identity fraud rose 12 per cent during the first quarter of 2007, compared to the first three months of 2006.

Switching battle 'declared by consumers'

Wed, 25 Apr 2007 15:38:29 GMT

The number of people swapping their bank account between financial providers is part of a surge of switching activity within the industry, it has been claimed.

According to MoneyExpert, 2.29 million consumers have decided to change their monetary services provider in the last six months.

In addition, the number of broadband, mobile phone, gas and electric contracts changing hands stands at 211,000 per day over the same period.

This activity is an indication that consumers are now beginning to flex their muscles when it comes to looking for a suitable deal, commented the company's chief executive, Sean Gardner.

"Banks and building societies are feeling the pain as current account fees come under scrutiny. Customers are getting the message that you dont have to just sit there and take it," he said.

Yet despite the savings that may be available, price comparison site uSwitch.com has stated that women in the UK have a combined personal loan debt of £20 billion.

Cost of running a home 'totals £11,000'

Tue, 24 Apr 2007 16:01:30 GMT

The yearly price of maintaining a household has gone up by 12 per cent, it has been claimed.

On average, the cost of running a home now stands at £11,035, according to Sainsbury's Bank.

This represents an increase of £3.28 per day over 2004/05 and means that homeowners will need to fork out an extra £1,199 in 2007 in order to keep their households functional, it added.

And the right home insurance deal may help people cover any extra costs that may come up in the wake of an accident, commented spokesman Robert O'May.

"Its becoming more expensive to run a home, which makes it all the more important for homeowners to shop around to make sure they are getting the very best deals available," he said.

With British Summer Time now here, it may be a good idea for people to look to take out home cover in the event of a break-in or garden burglary.

It's grim up north, financially, says study

Mon, 23 Apr 2007 15:52:05 GMT

Britons who live in the northern areas of the UK are less likely to pay off outstanding credit card bills than their southern equivalents, according to a new report.

Data from the CDMS found that one in six people living in Liverpool prefer to simply pay the interest debited to their accounts, according to the Guardian.

This was also common in Manchester, Newcastle and Glasgow - all four cities ranking highly in the company's league table of bad repayers, it added.

By contrast, those in the south were found to be more responsible with their money - people in Norwich were the best savers in the country, their research showed - suggesting a financial polarisation in the UK.

"These indicators should be grasped by economists and policymakers as a sign that further regeneration efforts are needed away from London's sphere of influence," said Ian Hubbard of CDMS.

Personal debt may be a national epidemic, with money charity Credit Action estimating the UK's collective arrears amount totals more than £1.3 trillion.

Debt prevalent among the Friends generation

Fri, 20 Apr 2007 15:55:49 GMT

People aged around 30 carry the highest amount of debt, it has been claimed.

The demographic - dubbed the Friends generation in Alliance & Leicester's (A&L) research - has unsecured debts totalling £5,863, over a quarter higher than the national average.

A high mortgage exposure has also been reported as prevalent within the age group, with A&L adding that this may be the price of settling down.

Further results suggest that 66 per cent live with their partner and 63 per cent own their own homes.

"Some, particularly those not trying to get on the housing ladder, may find themselves in financial difficulty as a result of living beyond their means," said Chris Rhodes, the bank's director of retail banking.

Friends was a television sitcom from the US in which six urbanites mused on life and love.

It enjoyed ten successful seasons, where it was only beaten by Seinfeld in the ratings stateside.

Spring cleaning online 'could save finances'

Thu, 19 Apr 2007 14:16:07 GMT

People could be looking at making substantial savings if they were to shift their financial strategy online, it has been suggested.

Research from Find.co.uk has found that there are hundreds of mortgage deals, for instance, available on the internet that are below the variable 7.35 percentage rate some providers are offering.

Similarly, taking care when completing a tax return can save a person some money, with relief possible in the event that a consumer puts 22 per cent of their salary into a pension scheme, it added.

However, there may be some areas where people simply may not know how much they are spending.

For example, the company has claimed that cash withdrawal from a credit card account is a major contributor to unnecessary debt.

"With the wealth of easily accessible information available online, this should no longer be an excuse," said Kate Marsden, marketing director of Find.co.uk.

Money charity Credit Action has stated that the personal debt mountain in the UK reached £1.3 trillion in January.

The UK's furniture bill worth £13bn

Wed, 18 Apr 2007 14:13:31 GMT

People in the UK spent a total of £13.5 billion on home furnishings during 2005, according to new statistics.

Specifically, this equates to £531.50 in outgoings for each British household - £10.22 each week, Halifax Credit Cards has reported.

These figures are up by £6 billion on statistics from 1995, with an extra £200 for each home, it added.

But the expensive habit could leave people short, commented Ken Stannard, head of the company.

"When it comes to furnishings, we all love filling our homes with creature comforts but this shouldn't leave you with empty pockets or paying high interest for months afterwards," he said.

If a person is looking to refurnish their house, a personal loan may cover the cost of the purchases.

However, consumers are advised to look into updating their home insurance policies should a piece become damaged.

Interest rate rise hitting homeowner applicants

Tue, 17 Apr 2007 14:17:09 GMT

Nearly half a million people have been turned down when applying for a mortgage - largely due to increasing rates of interest, a consumer site has claimed.

Lending capital has been refused to 460,000 people over the last six months, when the Bank has seen fit to up the level of the base rate by three-quarters of a point, according to Moneyexpert.

This means that since the hikes began in August 2006, 77,000 people have been turned down each month, it added.

And with some experts predicting a further rate rise, first-time buyers may have to work harder to get on the property ladder's first step, according to the company's chief executive, Sean Gardner.

"Anyone taking their first step on to the property ladder needs to take advice and research the market before making an application," he said.

In January, the interest rate went up to 5.25 - the highest level the UK has seen since July 2001.

March house price increase 'massive'

Mon, 16 Apr 2007 16:06:14 GMT

The price of housing in England and Wales grew by a larger amount in March than at any other point over the last four years, according to a property expert.

Figures from Rightmove show that the cost of the average property went up by an average of £8,307 - 3.6 per cent - in the four weeks previous to April 7th 2007.

The company has claimed that this is the highest increase since April 2002.

Similarly, it added that the year-on-year increase is now 15 per cent - a four-year high - elevating the average asking price to £236,490.

"While a boost is expected around Easter, £8,000 in a month is the largest amount we have ever recorded," said Miles Shipside, Rightmove's commercial director.

Scotland's house price inflation has seen a similar hike, according to Glasgow Solicitor's Property Centre.

It has reported that inflation in the west central region of the country is now 10.7 per cent, according to the Herald.

Pet price £2.6 billion over last 5 years

Fri, 13 Apr 2007 15:33:09 GMT

People in the United Kingdom have paid £2.6 billion for their pets over the last five years, it has been reported.

Annually, this means that the upkeep of a cat or a dog has cost the nation £520 million since 2005, according to Halifax Pet Insurance.

A dog put its owner back £282 during this period, while a cat cost £92, it added.

But 59 per cent of people did not research veterinary prices or calculate the cost of pet food before buying - a large overlook, according to an expert.

"The cost of upkeep between different breeds can vary enormously both in terms of food required and susceptibility to ailments that necessitate expensive treatment," warned Vicky Watson of the company.

Pets may be a thing of the past in the classroom, according to the Times Education Supplement.

It found that the traditional schoolroom addition is under threat of becoming extinct.

Electricity charges 'shock loyal customers'

Thu, 12 Apr 2007 14:57:54 GMT

The price of the average electricity bill has risen, despite the arrival of various utility-switching sites, it has been reported.

From February 1999 to December 2006, costs have increased, regardless of the increased competition, according to SimplySwitch.com.

But it is loyal customers who are being stung more, the group has claimed, with customers who have stayed with a company for a while being overcharged.

Founder of SimplySwitch, Karen Darby, claimed people were simply not being rewarded for their loyalty.

"There are no prizes for loyalty and those who remain with their original electricity supplier will be paying more than they need to," she said.

Research from uSwitch.com last month found that the average UK water bill has risen in 2006 to £312 from £303.

Similarly, it added that some 23 out of 24 water utility groups in the industry are set to increase their prices in the near future.

Some 66,000 bankruptcies in last 12 months, says government

Tue, 10 Apr 2007 16:34:22 GMT

Around 66,000 people in the UK declared themselves bankrupt last year, according to new government statistics.

Some 15,416 people announced that they were financially insolvent during the last 12 months, while 12,228 came to an Individual Voluntary Agreement.

This is a 27 per cent increase compared to the year before, the Insolvency Service has claimed.

And figures from Citizen's Advice have indicated that they received 1.25 million enquiries into matters relating to debt last year.

In response, they have launched the Debt Alert campaign designed in order to help people keep their finances in better order.

"Helping people to manager their money is a key factor in helping to reduce the huge debt problems we have in the UK," a spokesperson said.

"The campaign is also designed to help people get the most out of what they do have."

Last year, money charity Credit Action revealed that the amount of personal debt in the UK reached £1.25 trillion in December.

Avoid impulse furniture buys, advises consumer group

Thu, 5 Apr 2007 13:30:56 GMT

People should be careful and take precautions if they end up buying furniture this weekend, according to a government advice service.

Some five per cent of the company's enquiries and complaints occur over the Easter period - accounting for 50,000 disgruntled customers, Consumer Direct has stated.

But it has claimed that this may be avoided if impulse buyers stopped to take a good look at what they were about to purchase.

Checking the measurements, sampling the fabric and assessing how to clean a piece of furniture may help with peace of mind as well as consumer rights, it commented.

"If you buy a sofa and then realise it won't fit through your front door you have no automatic right to a refund," said Carol Brady, operations manager for the company.

Homeowners may want to double-check the security of their home before taking a trip this Easter bank holiday - a spike in robberies could occur as a result of empty houses due to bad weather.

'A third would consider' banking fees

Wed, 4 Apr 2007 16:28:36 GMT

Fees for banking services would be accommodated by around a third of people in the UK, a financial body has claimed.

Some 25 per cent of Britons do not think that such an idea is particularly bad, according to MoneyExpert.com.

In addition to this, 34 per cent of people claimed that the imposition of such a fee would have a beneficial effect - helping them be more responsible with their money.

But banks would need to be aware of the risks involved - particularly in regards to customer loyalty - if they bring in the fees, according to MoneyExpert.com chief executive Sean Gardner.

"Banks will need to be careful about how they pitch any fee-based service," he said.

And customer loyalty may be a significant issue for money institutions, as a recent survey from Which? has found that 45 per cent of consumers were not satisfied with their bank's interest rate.

Operator travel insurance 'not a good idea'

Tue, 3 Apr 2007 16:46:39 GMT

People looking to go away this summer should avoid taking out a holiday insurance policy with their travel agent, according to an industry expert.

Specialist insurers work within the regulations of the Financial Services Authority (FSA) and as such offer holiday makers a much more comprehensive service, according to the British Insurance Brokers' Association.

As travel agents do not operate inside the FSA's remit, their policies may not cover existing medical conditions and key exclusions and requirements, it added.

And Graeme Trudgill, manager of technical services at the body, added that it is time they abided by FSA rules.

"Travel agents totally need to be regulated because we're seeing all the time consumers, when they buy a policy, they don't realise they have to disclose things like pre-existing medical conditions," he said.

With the Easter Bank Holiday season rapidly approaching, people looking to go away should consider taking out travel insurance in order to cover themselves against potentially expensive scenarios.

Wedding guests typically foot £300 bill

Mon, 2 Apr 2007 16:25:44 GMT

The average wedding guest at a UK service spends around £340 in total in order to attend the event, it has been claimed.

Research from Churchill Home Insurance estimated that this makes the combined amount of debt when viewing nuptials to be £13.8 billion.

Indeed, each wedding costs around £39,000 for the guests - including gifts, hen and stag parties, travel and accommodation, it added.

The stag and hen dos saw people spend the most - each racking up a £90 bill in total, while travel usually costs £82.50.

"The research shows that as a nation we like to make an effort at weddings. This is often reflected in the costs associated with the big day for example the gifts, hen and stag do's and even new outfits," said Abi Clark, spokesperson for Churchill.

Earlier this month, actress Liz Hurley married Indian businessman Arun Nayar in a lavish five-day ceremony - it is unknown how much the service cost.

Single parents face 'saving struggle'

Wed, 28 Mar 2007 14:59:31 GMT

Lone parents are finding it increasingly difficult to establish a sufficient amount of savings, research indicates.

Some 17 per cent of single mums and dads contribute to a holdings account for their child, compared to 42 per cent of couples, according to Engage Mutual.

Those who do save are setting aside less, the body states, with an average of £122 a month being deposited by sole guardians, whereas two-parent families find £189 to save.

A representative for the group commented that bringing up children alone can lead to monetary issues.

"Today's parents are feeling growing financial pressures in bringing up children. For lone parents, living on a single income, these pressures may be especially hard to deal with," said Karl Elliot, 3GB spokesperson for Engage Mutual.

Such financial troubles could lead a family into a substantial amount of arrears.

Last year, money charity Credit Action revealed that personal debt hit £1.25 trillion in December 2006.

Saving 'not considered by most spenders'

Tue, 27 Mar 2007 16:28:08 GMT

People are choosing not to save based more on their attitude than the amount of income they have, new findings have indicated.

The Building Societies Association (BSA) Individual's Saving Decision report has stated that around a third of Britons would not put something aside every month, regardless of their earnings.

Long-term assurance and peace of mind were cited by the body as good reasons to pick up the savings habit, it added.

But in claiming "I can't afford to save", consumers in the UK could be being irresponsible, according to BSA director general Adrian Coles.

"Saving is a very individual decision and whilst some people in one situation view saving as a rewarding priority, others in the same situation see it as little more than a costly sacrifice," he said

However, Unbiased.co.uk has claimed that Britons saved £136 billion during 2006, an increase of £25 billion on 2005.

Rate rises 'shake' home-buyers

Mon, 26 Mar 2007 16:13:56 GMT

The three interest rate increases that spanned August 2006 to January 2007 may have put off potential homeowners, it has been claimed.

In the wake of the hikes, The Motley Fool has reported that people are expecting further rises and as such as opting away from tracker mortgages and variable rate deals.

And whereas first-time buyers had always traditionally expressed caution over the base level of interest, this is concern is spreading to those looking to remortgage their property, it added.

Accordingly, the company has stated that eight out of ten remortgagers are choosing fixed-rate deals.

"Fixed-rate mortgages are the best way for homeowners to insulate themselves from rate rises. It's ideal for people who need to know where they stand financially from pay packet to pay packet," said David Kuo, the body's head of personal finance.

Meanwhile, it has been reported by Mform.co.uk that 87 per cent of buyers cannot afford a property without a mortgage.

Mood to save 'has lightened'

Fri, 23 Mar 2007 16:33:13 GMT

Over 50 per cent of people in the UK were ready to save in February, new findings have revealed.

The proportion of Britons looking to spend was 24 per cent last month, while the mood to save was apparent in 64 per cent - an eight per cent increase from the same month in 2005, according to Legal & General's MoneyMood survey.

And the onset of the new Isa season may be a contributing factor to the statistics, claimed Claire Stracey, director of customer marketing at the company.

"These latest figures show the 'MoneyMood' of the antion is firmly in 'save' mode as we enter the Isa market this year," the expert said.

But the amount of personal debt in the UK hit record levels last year, Credit Action has revealed.

The money charity released figures showing that the amount of personal debt nationwide reached a combined total of £1.25 trillion in December last year.

Showing restraint 'will cut credit card debt'

Thu, 22 Mar 2007 15:26:45 GMT

People who show restraint when paying off their credit cards will wash away their debt, according to a consumer finance organisation.

Moneyextra has claimed that simply stopping spending on plastic will see consumers have an immediate impact on their bills, while a zero per cent card can also make a large dent.

Budgeting is also a useful technique for those looking to clear their accounts, with a reasonable amount of money set aside for spending keeping people on track to wipe out debt, it added.

But those with savings and debt may be making a mistake, as the company suggested that money in such accounts could be used to pay off more than the minimum amount each month, thus further cutting costs.

Meanwhile, uSwitch.com has revealed that withdrawing cash on a credit card has high costs perhaps unknown to consumers.

Rates up to 27.06 per cent were reported.

Police: Spring into action to avoid garden burglary

Tue, 20 Mar 2007 14:18:24 GMT

Now that spring is approaching, police in the North Cotswolds have warned homeowners that their property may be at a greater risk from burglars.

The local constabulary has told residents that lighter nights may lead to an increase in crime - particularly in garden thefts, according to the Cotswold Journal.

Tool sheds and outside furniture could be at risk, they added, which may see some people in the area consider extending their home insurance policy to include the garden.

"Shed owners should make them more secure by investing in metal grilles for windows, reinforced hinges and strong locks and shed alarms," said acting sergeant and the Cotswolds' crime reduction officer, Mark Godsland.

Meanwhile, a local teenager has been prosecuted after stealing seven rabbits from hutches nearby, the same new provider has reported.

The 17-year-old is due to appear before local magistrates shortly.

Mothers may 'influence finance most'

Fri, 16 Mar 2007 11:56:21 GMT

Mums may hold the most influence when it comes to people's finances, new research has revealed.

According to Scottish Widows, more than a third (38 per cent) of people commented that their parents positively affect their money management, with a fifth naming their mother before their father, siblings and friends.

Bank managers and financial advisers followed, the statistics showed.

While more than four in five under 24-year-olds admitted to financially following others, over a third of those over 55 claimed no influence whatsoever.

And a further figure suggested that 73 per cent of the younger generation feared for their future financially.

"Getting a proper grip on our finances is crucial - not just to be able to fund day to day living, but also to prepare for our future financial dreams and ambitions," said Mike Holban, customer and brand marketing director of Scottish Widows.

This Sunday, Mothering Sunday will see parents around the UK celebreated by their children.

Parents 'want financial help from offspring in old age'

Thu, 15 Mar 2007 18:37:15 GMT

Despite recent reports of parents having to provide financial support for their children long into adulthood, it has emerged that many retirees are relying upon their offspring for money.

A survey conducted by Yorkshire Bank shows that more than 25 per cent of all parents hope that their children will help bankroll their retirement and only 13 per cent have adequate savings.

This suggests that many older people could be facing financial difficulty in their later years unless their children are prepared to provide support. In light of these findings experts at Yorkshire Bank argue that parents need to make the necessary provisions for their retirement.

"By not saving for the future, parents appear to be aware they're storing up hardship for themselves," stated Gary Lumby, Yorkshire Bank head of retail.

"The easiest solution is to start saving now."

Scottish Widows recently reported that a growing number of parents are having to financially support their grown up children due to poor money management among younger generations, with almost 40 per cent of mums and dads spending their savings on their kids.

Card fraud 'slashed' through chip and pin

Wed, 14 Mar 2007 18:55:26 GMT

The successful rollout of chip and pin technology has seen a dramatic reduction in card fraud, having improved the security of credit card transactions for consumers in the UK.

Figures from APACS highlight a steady decline in card fraud, believed to be the result of a wide uptake of chip and pin. In total, card fraud losses fell from £439.4 million in 2005 to £428 million last year while losses at retail outlets fell by 47 per cent.

Experts maintain that this is strong evidence of the success of chip and pin in reducing fraud, further supported by the fact that card-not-present credit card fraud has increased by 16 per cent. Sandra Quinn, director of communications at APACS, singles chip and pin as a key factor in tackling fraud.

"Chip and pin has had a hugely positive effect on fraud losses over the counter in UK shops and stores, but we are seeing more fraud on transactions that do not use chip and pin," she stated.

Chip and pin celebrated its first birthday last month, having been in operation for one year. Since then chip and pin credit cards have grown to represent 97 per cent of all payment cards in the UK.

Britons told to reclaim bank charges

Mon, 12 Mar 2007 18:15:12 GMT

Consumers are being urged to make the effort to reclaim bank charges amid concerns that they are subject to unfair extra costs as levied by banks.

Research conducted by uSwitch.com reveals that over 80 per cent of people are prepared to switch banks in the face of bank charges for current accounts and it is thought that as much as £2.12 billion is currently waiting to be reclaimed.

These reports follow announcements from the Office of Fair Trading last year calling on providers to revise their charges policies.

Figures in this regard are fairly encouraging, with nearly 50 per cent of people having had a bank charge refunded and 1.5 million people having written to a regulatory body to this end. However, over 85 per cent are unaware as to their entitlements if they decide to take legal action against their bank.

Nick White of uSwitch.com stated that banks are prepared to make refunds to avoid legal action.

"While the majority of banks are bending over backwards to refund bank charges to those consumers that take the initiative to fight back, this is not because the banks have gone soft," he explained.

"They would simply rather settle now than have to appear in court."

Most customers 'can't escape their bank'

Fri, 9 Mar 2007 11:27:30 GMT

More than half of consumers think that their relationship with their bank is inescapable, according to a new report.

The Motley Fool has claimed that two out of three people consider it virtually impossible to change who their deal with financially, with one in eight adding that it would require too much effort.

Figures also indicated that a quarter of customers think that all banks act and offer the same, while one in seven respondents believed that their debt level would hamper a potential switch.

But the company's head of personal finance, David Kuo, has revealed that such a belief is inaccurate.

"Perhaps the most distressing finding is that many people believe that being overdrawn prevents them from moving banks.

"These customers can benefit greatly from moving to banks with better deals," he said.

According to finance company Credit Suisse, £1.2 billion was made by banks from penalty charges to its customers in 2006.

Britons saving £1.1 billion by 'bundling'

Thu, 8 Mar 2007 11:37:31 GMT

People in the UK are making substantial savings by taking out combined service packages - or bundles, according to new research.

Finance comparison company moneysupermarket.com added that the deals are becoming more popular, with more than a quarter of consumers considering combining their broadband, phone and digital television bills.

Those who have already taken out such services save around £124 a year, whereas the average annual cost of singly-billed products is £468, the research suggested.

"The reality of modern life is that most people now need and use more than one telecommunications service. Bundles are a good solution and can provide fantastic value and convenience," according to Steve Weller, head of communications at the company.

In related news, there was an average of 166 bills delivered to households in 2005, an increase of seven since 2000, according to The Way We Pay report from UK payments association Apacs.

Loans under 6% becoming 'extinct'

Wed, 7 Mar 2007 13:27:43 GMT

Loan interest rates less than six per cent are close to extinction, a consumer organisation has stated.

Michelle Slade, personal finance analyst at Moneyfacts.co.uk, has commented that the increasing number of individual voluntary agreements made over the last two years has seen lenders become more cautious.

As a result, there is a lack of loans between £5,000 and £15,000 given with an interest rate below six per cent, she added.

The rise of the zero percent credit card has also contributed to the decline of traditional personal loans, the expert remarked, but that does not mean that good deals are no longer available to those who shop around.

"Make sure you do your homework before signing up. Remember it does not always pay to remain loyal to your current account provider," she said.

According to money charity Credit Action, there is a combined total of more than £1.25 trillion in personal debt in the UK.

Zodiac reveals 'money personalities'

Tue, 6 Mar 2007 11:48:26 GMT

A study on the financial habits of 1,700 consumers has revealed that a person's star sign may be indicative of their money worries.

Virgoans manage money best, with surveyors CreditExpert.co.uk labelling them meticulous and responsible.

Pisceans and Taureans are also good with their finances and have the most confidence in their credit rating, results showed.

However, Aquarians believe their credit rating has been ruined by past debt - something which Leos accumulate the most of.

The study indicated that Scorpios will argue about money with their partners more, followed by Librans and Sagittarians, while Geminis are generally laid back about financial issues.

Furthermore, Cancerians are the most likely to lie when it comes to money worries, while Capricorns and Arians are honest about them.

"Regardless of whether you take astrology seriously, the survey shows that there are a lot of people with great concerns about their spending and borrowing," said Jim Hodgkins, managing director of CreditExpert.co.uk.

According to money charity Credit Action, there is currently around £1.25 trillion worth of personal debt in the UK.

Young Britons 'putting pensions first'

Fri, 2 Mar 2007 13:59:14 GMT

Planning for retirement is a more pressing priority for young Britons than purchasing property, according to reports.

People in the UK are starting to put away as much as ten per cent of their incomes from the age of 28, according to Axa's finance division.

This makes Britons the most forward-thinking savers in the world, ahead of North Americans who begin at 30 and Germans, Italians and the French, who start at 31.

But the body has stated that a third of those surveyed expected their future property to finance their retirement, something that head of pensions and savings Steve Folkard has commented on.

"By the time they retire, people are often loathed to move away from their friends and family or rob their children of their inheritance by handing over their home to an equity release company," he said.

Additionally, reforms in the sector may be on the way, according to This is Money.

Under government proposals, the age at which a person can take out a pension will be raised to 68 by 2046.

Consumers 'may not know' their mobile plan

Wed, 28 Feb 2007 12:09:12 GMT

Many UK mobile phone customers are unaware which tariff they are on or how much they are actually spending on their service, according to a consumer switching company.

Of the 1,000-plus people questioned by SimplySwitch.com, 36 per cent admitted they were unaware of the details of their call plan and 61 per cent do not know how much they will be billed for calls outside it.

Similarly, around a third do not take a close look at their phone statement, while 83 per cent think the amounts charged to them are always accurate, it added.

"It seems like common sense to find out how much youre paying and whats included in your call plan. Someone on an unsuitable tariff could save a small fortune by switching to a better deal," said Karen Darby, spokesperson for the organisation.

Apacs this week reported that 166 bills were received on average by UK households in 2005, an increase of seven from 2000.

Women in the UK 'gripped by shopaholicism'

Tue, 27 Feb 2007 12:58:57 GMT

There are more than three-quarters of a million women in the UK addicted to shopping, new findings have indicated.

Consumer utility adviser uSwitch has claimed that there are 765,642 British women shopping more then they should, spending around £100 more than the average amount.

Birmingham is the home of the shopaholics, the company added, with shoppers spending £1,813.56 per year.

Furthermore, it emerged that 500,000 women have managed to buy items on their partner's credit card without them noticing.

Ann Robinson, the body's director of consumer policy, commented that the figures may be a product of the increasing availability of credit.

Indebtedness because of shopaholicism is the result of easy accessibility to loans, credit cards, and store cards and highlights the need for consumers to take some personal responsibility for managing their own financial situation," she said.

Money charity Credit Action last year revealed that personal debt in the UK reached £1.25 trillion in December 2006.

Winter spending sees savings stretched

Mon, 26 Feb 2007 12:55:26 GMT

The savings of UK consumers were used to indulge shoppers spending habits over the winter months, according to new findings.

Luxury items, gifts and impulse purchases were financed by the savings accounts of 12 per cent of shoppers, Birmingham Midshire's Saving Britain study has found.

Younger people were responsible for around 13 per cent of the activity, while 10 per cent was attributed to 30 to 50-year-olds, it added.

And seasonal spending during the period as well as poor financial planning were thought to be the main causes behind the figures, commented Jason Robinson, director of savings for the organisation.

"Setting aside a smaller amount of money each month and leaving it untouched is much better than saving more than what is practical and being forced to raid," he said.

The total amount of personal debt in the UK is reportedly around £1.25 trillion, according to money charity Credit Action.

Base rate rise 'doesn't always mean bank generosity'

Thu, 22 Feb 2007 17:21:34 GMT

Some savings providers were less generous than others after January's base rate rise from the Bank of England, a financial organisation has suggested.

Furthermore, savers should not always assume they will benefit in the wake of an interest increase, according to research from moneyfacts.co.uk.

Now, in the aftermath of last month's shock hike, the company has revealed that 20 per cent of accounts offer rates higher than the 5.25 per cent base level, while 79 per cent are giving less than 4.2 per cent.

And moneyfacts.co.uk's head of savings Rachel Thrussell has indicated that a more active consumer stance against the money institutions would lead to changes being made.

"Your savings should benefit you as the loyal saver, not be used to increase the profits for the banks and their shareholders," she said.

Last month's base rate rise to 5.25 per cent marks the highest level it the Bank of England has set since July 2001.

Give up spending for lent, says expert

Wed, 21 Feb 2007 16:56:21 GMT

Britons should give up non-essential spending for lent and start a saving habit instead, a consumer finance site has claimed.

An average of £15 per week is spent by consumers on unnecessary items such as coffees, cigarettes and magazines, moneysupermarket.com has revealed.

If this amount was to be saved over the 40 days and 40 nights of lent, people could save £86 a month, a habit which the organisation stated could finance the purchase of a BMW Z4 coupe if kept up over a person's working life.

Additionally, putting £86 away this month would see a collective saving in the UK of £22.6 billion over the period.

"There's no time like the present and those serious about saving should seriously think about cutting down on non-essential purchases," said Stuart Glendinning, managing director of the consumer company.

Meanwhile, the total amount of personal debt in the UK reached £1.25 trillion in December 2006, according to money charity Credit Action.

Halifax to reunite customers with £44 million 'lost accounts'

Tue, 20 Feb 2007 16:54:14 GMT

Approximately £44 million has been left in 110,000 old and unused Halifax Bank of Scotland (HBOS) accounts, the bank has reported.

And although some 75 per cent of the lost accounts contain less than £100, the majority of the holdings are savings, HBOS added.

The group also pointed out that the amount represents 0.03 per cent of the £133 billion in retail banking they possess and that the majority of the dormant accounts originate from London (24 per cent), where consumers have cut themselves adrift from £15.5 million.

Now HBOS is looking to reconcile people with their money in a campaign which will see them appealing to the public to claim their funds.

"Our job is to reunite as many of our customers as is possible with their cash. We are using every means at our disposal to do so," said Mike Regnier, head of savings at HBOS.

Last year, the money charity Credit Action announced that the total amount of personal debt in the UK will reach £1.25 trillion in December 2006.

50% parents not paying pocket money

Mon, 19 Feb 2007 16:48:03 GMT

Around half of British parents are not giving their children weekly pocket money, but saving for the future instead, a financial group has found.

Some 41 per cent are depositing funds into a savings account, with 48 per cent doing so while not giving their offspring a weekly spending amount, according to Engage Mutual Assurance.

The organisation's statistics also revealed that mothers and fathers in the north-east are the most generous, with 65 per cent giving their children money to spend, compared to 39 per cent in the West Country.

However, a further 34 per cent of parents did both - something Karl Elliot, spokesman for the body, claimed was a positive thing.

"Giving younger children pocket money not only helps to educate them about the value of money, but also teaches them important life skills such as saving and budgeting," he said.

In December 2006, the amount of personal debt in the UK reached £1.25 trillion, according to the money charity Credit Action.

Debt is affecting teenagers, say experts

Thu, 15 Feb 2007 17:07:08 GMT

Debt is affecting people as young as 14, according to new research.

Around 50 per cent of teenagers have owed money at some point, with around 66 per cent of teenagers having daily money issues, the Personal Finance Education Group (PFEG) has revealed.

Furthermore, the Times has reported that PFEG figures have indicated that by the time some children reach 17, they are already in debt.

Additionally, the PFEG told the news organisation that people are borrowing from friends and family, rather than waiting until they are 18 and can legally receive credit.

"The research displays a worryingly laid back attitude towards debt and spending among teenagers that could end up costing them dearly in adult life," said Wendy van den Hende, the PFEG's chief executive.

In December 2006, the amount of personal debt in the UK reached a combined total of £1.25 trillion, according to money charity Credit Action.

Chip and PIN celebrates first anniversary

Wed, 14 Feb 2007 16:42:00 GMT

It has been a year since chip and pin was introduced as the primary way in which to pay using a card, a trading body has announced.

Some 97 per cent of the cards used in the UK employ the technology, up by 30 million over the last 18 months, according to Apacs.

Now, there are 185 occurrences of the activity each second and more than 99.9 per cent of chip and pin card transactions are verified by pin.

Additionally, the number of fraud losses in 2005 was down on the previous year, with suggestions from the group that the same will happen when figures for 2006 are released.

And Sandra Quinn, the company's director of communications, called the implementation of the system a success.

"It is now safer than ever to use your card when shopping and far more difficult for fraudsters to get access to your money," she said.

Every 3.85 minutes, the amount of personal debt in the UK increases by £1 million, according to money charity Credit Action.

Expert: Valentine's could cost more than your heart

Mon, 12 Feb 2007 16:53:22 GMT

Elaborate Valentine's day proposals may end up cost around half as much as the actual wedding, according to new findings.

Price comparison site BeatThatQuote.com has totalled up the combined amount of Cupid's shopping basket and found that a five-star romantic weekend break, with hired limousines, VIP theatre tickets, red roses and champagne could cost as much as £9,700.

It also estimated that a standard engagement ring is priced at four times a man's average wage per week, although they add that jewellers' believe the ring's value should equate to three month's earnings.

The product director at the site, Sophie Neary, warned that spending such a large amount of money could lead to an unpaid debt for years to come.

"A £10,000 ring, for example, would set the borrower back £198 per month if he were to take a five year loan at seven per cent APR," she said.

Money charity Credit Action revealed last year that the average amount of debt in UK households totals £27,455.

Base rate freeze 'a relief for borrowers'

Fri, 9 Feb 2007 19:02:47 GMT

Mortgage borrowers could be breathing a collective sigh of relief following the Bank of England's recent decision to freeze interest rates at 5.25 per cent.
It had previously been speculated that the bank's monetary policy committee would vote for another base rate increase, following the surprise increase that took place last month.

Some commentators argue that the MPC is holding back on another base rate increase in order to assess the impact of the last increase.

However, concerns over consumer inflation could lead to further base rate increases in the coming months, as speculated by many experts.

"Having surprised financial markets and commentators by raising rates to a five-year high in January, it seems likely that the members of the MPC might have wanted to pause to see what effects their pre-emptive strike had," explained Barry Naisbitt of Abbey.

Though the base rate remains frozen for the time being some mortgage lenders have decided to increase fees on their fixed-rate deals, according to MoneyExpert.

uSwitch: Shop around for better phone and net-only rates

Wed, 7 Feb 2007 16:47:33 GMT

Telephone and internet-only current accounts could be making customers more money if they looked around for the best in-credit rates on the market, a consumer site has suggested.

Those using such an account receive an average rate at 3.04 per cent per annum - a figure which has dropped by 0.24 per cent over the last two years, according to uSwitch.com.

Meanwhile, on the high street, in-credit levels have risen 2.5 per cent to 5.31 in the same amount of time, the group added.

And a company spokesperson commented that almost half of internet users had an online account.

"However, it seems that people banking with online-only operations are actually getting a worse deal as far as in-credit rates are concerned," said Nick White, director of financial services at the group.

uSwitch.com was in the news earlier this year when it claimed that the credit checks carried out by some financers were inefficient.

Expert: 1.38m switching accounts

Tue, 6 Feb 2007 17:13:48 GMT

Over the next six months, around 1.38 million people will change their current account for others offering better services, according to new findings.

And banks are in turn increasing the benefits on offer to consumers, with some offering zero per cent interest on overdrafts as well as high credit interest rates, MoneyExpert reports.

The company also states that penalty charges stemming from overdraft spending - ranging from £10 to £39 among lenders - are a factor in the activity.

The news comes in stark contrast to previous switching activity, which the body commented was less likely than divorce.

"Customers have got the message that it is relatively straightforward to move bank and that there are a range of good value deals out there," said Sean Gardner, chief executive of the organisation.

Meanwhile, the money charity Credit Action announced last year that the total combined amount of personal debt in the UK was £1.25 trillion.

One in twenty break-up 'because of money'

Mon, 5 Feb 2007 17:01:03 GMT

Financial concerns could be a primary factor when couples decide to break up, according to findings from a consumer money organisation.

The Personal Credit Index from CreditExpert indicated that around 25 per cent of partnerships argue over cash flow problems, while five per cent cite it as the reason their relationship ended.

Additionally, the report stated that ten per cent of people lie to their other half over their finances and that younger couples are the most likely to find the issue contentious.

"It's hardly surprising that 18-34 year olds those most likely to be first-time buyers in the property market feel the pinch and argue the most. What is sad is the number of children affected," said Jim Hodgkins, Managing Director of CreditExpert.

According to the charity Credit Action, the total amount of personal debt in the UK stands at over £1.25 trillion.

Personal debt - Repossessions 'sign of the times'

Fri, 2 Feb 2007 16:31:24 GMT

Record levels of personal debt meant that households are more vulnerable than ever to harsh financial conditions, an official finance body has claimed.

The Financial Standards Authority has reported that the average amount of personal debt in the UK is now 140 per cent above income - two times the amount generated in the 1980s.

Additionally, the Council of Mortgage Lenders has revealed that mortgage repossessions have increased by 65 per cent over the last 12 months, with 17,000 people losing their homes.

And the FSA is anxious that consumers whose finances are not ready for a weaker economic climate will suffer.

"There is a risk that consumers could be unprepared for a weaker economic environment and hold an overconfident view about the future," it said in its Financial Risk Outlook for 2007.

Last November, the money charity Credit Action reported that the total amount of personal debt in the UK is £1.25 trillion.

Saving as simple as skipping a sandwich, says money group

Wed, 31 Jan 2007 12:44:00 GMT

Some seven out of ten people save five per cent of their salaries each month, or around £3.19 each day - the cost of an "up-market sandwich", according to Fool.co.uk.

Their research into saving habits, which encompassed 1,500 of the company's readership, found that one in seven reckoned their finances had "good money months" throughout the year.

And although December and January were revealed to be the most strenuous months for personal finance, 14 per cent of those questioned said their savings could deal with a 'bombshell' like Christmas.

"Unexpected events can stretch even the best-intentioned budget to breaking point. Consequently, it is vital for people to provide adequate slack in their budgets," said David Kuo, head of personal finance for the body.

Still, the amount of personal debt in the UK totalled £1.25 trillion in November 2006, statistics from charity Credit Action revealed.

Argument erupts over 'dirty bank tactics'

Tue, 30 Jan 2007 16:23:38 GMT

A study from a consumer group that claims banks employ "underhand methods" to deal with customers querying charges has been criticised by the British Bankers' Association (BBA).

According to Which?, some money depositories have threatened people with account closure, as well as charging large amounts if they exceed their overdraft limit.

"We've found that banks are employing increasingly underhand methods to avoid their responsibility to treat their customers fairly and refund the charges," said Doug Taylor of Which?.

However, the BBA has responded angrily to the claims, accusing the group of "sensationalising" the report.

While "it's human nature" to err, the charity organisation's comments were "personally insulting" to bank staff, said chief executive designate Angela Knight.

A report from Moneysupermarket.com last week revealed that the main cause of consumers switching to products with other providers was poor service, rather than higher rates.

Buyers 'will take risks' to set foot on ladder

Mon, 29 Jan 2007 16:35:54 GMT

More risks will be taken by first-time buyers in order to get themselves on the property ladder, new research has shown.

Findings from Yorkshire Bank indicate that approximately 80 per cent of purchasers would accept a mortgage that would take 25 years to pay off, with more than half taking on deals worth five times more than their salary.

Furthermore, the group has revealed that more than one infour initial investors will offer above the asking price with their first bid - an increase of 19 per cent compared to January 2006.

And Gary Lumby, Yorkshire Bank's head of retail, claimed such behaviour is risky and could cost buyers thousands of pounds - despite the rise in interest rates.

"Although house prices continued to rise following last year's two interest rate increases - January's rise was so unexpected it may take a while to see how the market reads," he said.

Last month's interest rate change to 5.25 per cent sees the figure at its highest level since July 2001.

'Loan rates steady' despite Bank rise

Fri, 26 Jan 2007 15:48:18 GMT

The interest rate increase at the beginning of this month has lead to a rise in mortgage rates, although personal loan rates have stayed the same, according to MoneyExtra.

While some competitive lenders have hiked their charges in accordance to the Bank of England's decision, borrowers are still likely to benefit if they shop around for a deal now, the group said.

And with many industry experts predicting another rise soon, Robin Amlot, the organisation's senior editor, has urged consumers to be quick if they are considering taking out some extra money.

"If you're looking for a loan - whatever the reason, be it a new car, holiday, home improvements or even debt consolidation - you should consider acting now to lock in an attractive interest rate," he commented.

The Bank of England's base interest rate currently stands at 5.25 per cent - it's highest level since July 2001 - but lower than its decade-spanning high of 7.50 per cent in July 1998.

23m 'switch to cut costs'

Thu, 25 Jan 2007 15:24:56 GMT

Britons are choosing to leave product providers if a better deal comes along, MoneyExpert says.

Some 212,000 contracts with providers were dropped per day in areas such as telecoms, mobile phones and internet over the second half of 2006, contributing to a total of 39.075 million, the group reveals.

This means that 23 million customers are taking an active stance to find a better deal, claims the company.

The figures equate to one in seven households swapping brands during the period, with the most popular areas being gas, electricity and internet deals, according to the body.

Activity like this marks a victory for the consumer, says MoneyExpert chief executive, Sean Gardner.

"No provider is safe from the axe if they don't have a competitive product or good customer service. Customers aren't shirking from moving on if they're not happy," he said.

Last year, money charity Credit Action suggested the average household debt stood at £8,765 excluding mortgages.

Morgan Stanley: Credit spending more clever

Wed, 24 Jan 2007 16:38:58 GMT

The amount of money being spent on credit cards from January to March this year will increase, according to Morgan Stanley.

Britons will spend an average of £1,228 on plastic in the first three months on the year, compared to £730 in 2006, the body states.

However, credit cards are now being used more for household spending and groceries, accounting for 59 per cent of transactions - with traditionally larger purchases such as holidays following behind, the group reported.

The global finance firm believes the increase is due to consumers becoming "increasingly clever" in managing their debt.

"The results of our research show an increased confidence in the use of credit cards as a financial aid. It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem," said Patrick Muir, Morgan Stanley marketing director.

In November 2006, consumer money charity Credit Action claimed the amount of personal debt in the UK is increasing by £1 million every four minutes.

Survey: Financial resolutions popular in 2007

Tue, 23 Jan 2007 16:49:02 GMT

Almost half of the new year's resolutions committed to in 2007 were finance-based, with more than a quarter being broken by the end of the month, according to IFA Promotion.

Some 43 per cent of the 16 million Britons making resolutions planned to spend less, with over a third of people planning to save money in order to make a big purchase such as a car, a holiday or a house, the group says.

Generally, the company states, around one-fifth planned to improve their financial state overall.

Additionally, the findings show that 26 per cent planned to lose weight or eat more healthily, while one in ten wanted to give up smoking.

"It is encouraging to see how many people intend to get their finances in order in 2007, however it is all too easy to let good intentions go to waste," said Karen Barrett, IFA Promotion marketing director.

It has been estimated by the consumer charity Credit Action that, including mortgages, the average adult owed around £27,180 in November, an increase of £210 from the month before.

Tax tips for returns

Mon, 22 Jan 2007 15:01:03 GMT

As the deadline for tax returns approaches, taxpayers have been given tips on how to save on their finances, as well as avoid the £100 fee for late submissions.

Returns can be filled in manually on paper or calculated automatically online - which some customers may find easier, according to the Sun.

Self-employed workers, the newspaper claims, can benefit if they reclaim expenses made while working.

For example, heating or lighting bills accrued during the hours of work, as well as any other work-related costs, could be reclaimed, the company says.

Also, employees whose bosses will not refund them for expenses should keep hold of receipts until it's time to fill in the return.

Leonie Kerswill, a tax partner at PricewaterhouseCoopers, says "preparation is key".

"Get your information together before you start and if you need help ask HM Revenue & Customs or a qualified tax adviser in good time," she adds.

Earlier this year, consumer charity Credit Action estimated personal debt to be at a total of £1.25 trillion in the UK.

4m Britons 'switch to cheaper energy'

Wed, 17 Jan 2007 15:57:30 GMT

Millions of Britons are switching to cheaper gas and electricity suppliers to save money, according to new figures.

Data from energy watchdog Ofgem revealed that during 2006, high fuel prices prompted four million people to switch to cheaper energy providers.

Figures from the regulator showed that those who moved saved an average of £150 each on their utility bills.

Alistair Buchanan, chief executive of Ofgem, stated that by moving to cheaper suppliers, energy customers have given expensive providers "the boot".

He commented: "While British Gas has already indicated that they will be cutting prices this year, Ofgem will be watching all energy suppliers to make sure they compete as wholesale prices fall as hard as they did when prices rose."

Ofgem stated that British Gas, a former monopoly supplier, reached a market share of less than 50 per cent for the first time.

The watchdog added that people could also save money by paying by direct debit and becoming more energy efficient.

Students 'need financial advice'

Tue, 16 Jan 2007 16:37:38 GMT

Students need to be given more advice on managing their money, according to a new study.

Research by accommodation provider Unite found that the average level of student debt has risen by nine per cent to £5,760, while university costs an average of £13,000 a year.

It warned that an increasing number of students owe various debts, such as government student loans, bank overdrafts, personal loans and credit cards.

The firm claimed that students are not receiving enough financial advice on managing their money, especially those from lower-income families.

In its report, Unite said: "With student debt increasing, Unite believes that students should be given far more financial planning guidance if we are to ensure that fewer drop out of university for financial reasons."

Recently, shadow chancellor George Osborne suggested that young people be taught personal finance skills as part of the national curriculum.

He described improving people's financial literacy as an "issue of social responsibility".

UK house price inflation continues

Mon, 15 Jan 2007 16:11:41 GMT

The rate of house price growth increased in November last year, new government figures have revealed.

According to the Department for Communities and Local Government, annual house price inflation in the UK rose from 8.6 per cent in October to 8.9 per cent the following month.

Prices rose at their fastest rate in Northern Ireland, going up by 36.6 per cent in the year up to November, more than four times the national average.

This means that the average house price in the UK in November 2006 stood at £199,467, up from £197,987 a month earlier.

Howard Archer, chief economist at Global Insight, said that the "ongoing buoyancy" of house prices was probably a contributory factor in the Bank of England's recent decision to raise interest rates to 5.25 per cent.

"If house prices continue to post sharp rises over the coming months, it will increase the chances of interest rates rising even higher," he added.

Parents 'expect to fund kids in later life'

Fri, 12 Jan 2007 16:40:28 GMT

Many parents are expecting to bankroll their children when they are in their 60s, according to new figures.

Research by engage Mutual Assurance found that 43 per cent of parents aged between 55 and 64 are still giving financial support to their children and expect to still be doing so when they are 67.

Meanwhile, almost half of parents with children aged over 25 were found to still be assisting them financially.

This has been attributed to the rising cost of living, with factors such as high property prices and university tuition fees making it difficult for young people to be financially independent.

Karl Elliot, from engage Mutual Assurance, commented: "As a result of this pressure on younger generations, parents are shouldering the financial burden, supporting their children for longer.

"It is likely that they will continue to support their kids financially for longer than they anticipate."

He added that it is essential for parents to get their children to save money from an early age and make them less financially dependent.

Recent research by Skipton Building Society found that a quarter of people aged between 20 and 35 are depending on their parents to help fund a deposit for their first property.

Interest rates go up to 5.25%

Thu, 11 Jan 2007 16:29:17 GMT

Interest rates in the UK have been raised to 5.25 per cent by the Bank of England (BoE) today.

In a move that has surprised many analysts, the BoE's monetary policy committee (MPC) elected to put up the cost of borrowing sooner than expected in an effort to curb inflation.

Although many financial observers had anticipated an interest rate rise in the next few months, it had been widely predicted that the MPC would delay any increase until next month.

Today's quarter point increase, which is the third interest rate rise in five months, is intended to help hold back inflationary pressures.

Consumer price inflation is currently at 2.7 per cent, while the cost of borrowing is at its highest level since April 2001.

Howard Archer, chief economist at Global Insight, commented: "This is a real surprise.

"Although we had expected interest rates to rise again, we thought the Bank of England would delay acting until at least February."

Mr Archer said that current levels of 5.25 per cent may represent a peak in interest rates for this year and that the BoE's early action could reduce the chances of further increases.

Women with expensive handbags 'vulnerable to crime'

Wed, 10 Jan 2007 16:34:19 GMT

Many British women risk falling victim to crime by carrying expensive items in their handbags, according to an insurance firm.

A study by Cornhill Direct found that one in five British women have either lost or had their handbag stolen, which often contains high-value possessions.

Figures from the firm showed that the average handbag is worth around £300, as women often opt for a designer label and carry items such as cash, a mobile phone and MP3 player.

Mark Bishop, spokesman for Cornhill Direct, urged those who carry handbags to be aware that they are a "prime target" for thieves.

He said: "Try not to carry around important documents and take sensible precautions to minimise the risk of theft, particularly in bars and restaurants."

Mr Bishop added that losing or having a bag stolen is not only extremely stressful but can also leave women open to identity theft, as they often contain personal details.

Cornhill also listed other items that can increase the value of the average handbag, such as a make-up bag and its contents, a purse, diary and an umbrella.

Fixed-rate mortgages 'may suit cautious borrowers'

Fri, 8 Dec 2006 16:55:12 GMT

A property expert has speculated that fixed-rate mortgages will suit more cautious borrowers on the grounds that they offer a guaranteed, predetermined return irrespective of base rate changes.

The Bank of England recently decided to leave interest rates unchanged at five per cent, following successive increases.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said that cautious borrowers will be suited to a fixed-rate mortgage deal that will not be affected by any further increases.

"Despite two recent rate rises, there are some competitive fixed rates and trackers available for borrowers," stated the expert.

"For the more cautious, opting for a fixed rate makes sense especially as a further base rate rise may be around the corner."

Recent reports from Mortgages Direct found that fixed rate mortgages account for 97 per cent of the mortgage market.

It was also reported that the number of borrowers choosing five-year fixed-rate deals jumped by 20 per cent last month compared to figures for October.

Pet priorities changing, insurer reveals

Wed, 6 Dec 2006 16:51:11 GMT

Pet insurance sales are being altered as a result of shifts in owners' social patterns, according to research.

More single person households and longer working hours are meaning that fewer Britons are able to look after a dog - creating growth opportunities in the cat insurance sector, figures from Defaqto have revealed.

The study also indicated that 17 per cent of cats and 32 per cent of UK dogs are currently insured, meaning that the total market could exceed £1 billion if all owners opted to insure their animals.

Brian Brown, head of Defaqto's insight team, said: "Despite the massive supply of insurance policies from all types of outlets, many owners, particularly of cats and non-pedigree dogs, have never experienced a large veterinary claim and therefore do not necessarily perceive a need for cover."

Mr Brown added that a number of owners have opted against insuring their furry friend - choosing to pay the bills if they occur.

According to UKPets, Datamonitor research has revealed that the pet insurance market could soon be brought into question, as insurers would need large premium increases in order to balance their books.

Lloyds TSB launches 'save-as-you-spend' debit card scheme

Tue, 5 Dec 2006 15:28:41 GMT

Lloyds TSB has announced the launch of a new savings scheme that will allow people to save their change every time a debit card is used.

Under the new scheme, every time a debit card is used to make a purchase, all transactions will be rounded-up to the nearest £1, with the additional spending automatically transferred into a savings account.

The new facility is to be introduced without a fee.

"We want to make it as easy as possible for people to get into the savings habit," remarked Terri Dial, group executive director of UK Retail Banking at Lloyds TSB.

"One in three British consumers say they want to save but it can be a real struggle," she added.

Research from the bank discovered that 23 per cent of Britons have no savings at all, while 34 per cent wish they were more disciplined when it came to putting away money.

And a benefit of the scheme could be that "it won't even feel like saving", said Ms Dial. "At the end of the year, customers will have a nice nest egg to build on for the future."

In addition to Save the Change, Lloyds TSB also offers a number of different savings and investment products.

No-swipe credit cards 'linked' with identity theft

Tue, 5 Dec 2006 15:28:12 GMT

The latest innovation in banking has the potential to make customers susceptible to identity theft, experts warn.

According to Charles Schumer, a US senator believes that credit cards equipped with RFID (Radio-frequency Identification) chips are not sufficiently and leave the consumer open to theft from criminals, without anything being physically stolen.

"All you need to be is within a couple of feet of the customer," said Senator Schumer.

"You may as well put your credit card information on a big sign on your back," he added.

So far, over ten million RFID-equipped credit cards have been issued, and manufacturers insist that encryption levels match those used on traditional magnetic strips.

However, the senator believes that thieves could steal data simply by arming themselves with mobile RFID readers.

RFID chips are currently used in a number of applications, including passports, transport payment systems and animal identification.

FSA fines loans company over PPI

Fri, 27 Oct 2006 16:00:21 GMT

The Financial Services Authority (FSA) has cracked down on an insurance firm for not treating its customers fairly when selling them Payment Protection Insurance (PPI).

Loans.co.uk was fined £455,000 by the regulatory watchdog for failing to gather and record adequate information to show that its policy recommendations were accurate.

The FSA found that around 14,000 customers were not being told the full story when they were offered PPI and so could have been short-changed by being pushed into an inappropriate deal.

Margaret Cole, the FSA director of enforcement, said: "Loans.co.uk failed to make sure adequate processes were in place to ensure the suitability of its PPI recommendations and treat its customers fairly.

She added: "We encourage consumers to ask straightforward questions of sales staff when PPI is mentioned to help them to identify whether the product is right for them."

Stephen Hayes, chief executive of the prosecuted firm, affirmed that the company would have relevant safeguards to prevent the same situation arising in the future.

"We co-operated fully with the FSA and undertook an internal audit review to ensure effective and timely resolution of the issues identified," he said.

"New practices have been in place for the past six months."

Parents failing kids on CTFs

Thu, 26 Oct 2006 16:18:20 GMT

Too many parents are failing their children by not getting the best returns out of their Child Trust Funds (CTFs), claims new research.

Although there has been a good uptake of CTFs, for which any child born after September 1st 2002 is eligible, 22 per cent are still opting for low-yield cash accounts, reports Family Investments.

Family's stakeholder funds over the past year amount to 10.4 per cent, a sum which is twice the average cash fund.

Although the research is based over a year, which is a short period of time in terms of returns on stocks and shares, it does suggest the potential benefits available to investment savvy parents.

The company's research shows that 36 per cent of parents underestimate the benefits of investing in stocks and shares and half are unaware that inflation gnaws away the value of cash savings.

John Reeve, chief executive of Family Investments, commented: "The natural instinct for some parents is to fear loss more than anticipate gain and as a result opt for cash.

"The fact is that when you lock money away in cash over 18 years, it is twice as likely that the buying power of your money will be lower than if you had invested the equivalent amount at outset."

The government is encouraging families to start saving for their children's future by giving them a £250 voucher when they open their fund.

No handouts for children of the future

Wed, 25 Oct 2006 17:07:39 GMT

In two generations' time, children will be expected to be financially autonomous from an early age, according to new research.

In a climate of rising house prices, interest rates and energy bills, parents are becoming more expectant of their offspring to provide for themselves when they reach their teenage years, reports Bradford & Bingley.

Over half of adults (55 per cent) in the survey said that children should start saving for the future before the age of ten and a third believe that their offspring should have amassed £2,000 by the time they are 18.

But there was found to be a stark difference between older and younger parents. Only 29 per cent of those aged 45 to 54 expect their kids to save for higher education or the deposit for their first house while this figure nearly doubles for those aged between 25 and 34.

Steve Potter, head of saving for Bradford & Bingley, said: "If this trend of parents expecting their children to save rather than parents bailing them out continues then the bank of Mum and Dad will be hanging up the 'closed' sign in two generations time.

"This makes it all the more important for parents to encourage their children to save from birth," he added.

Mr Potter believes that the discrepancy between the two groups of parents comes down to the elder providers feeling more secure due to the advent of final salary pension schemes and house price inflation and those in their younger years feeling the pinch from rising living costs.

But there is one thing they both agree on if a child wants their own car, they are going to have to fund it themselves.

Financial woes become 'last taboo'

Tue, 24 Oct 2006 17:03:21 GMT

Less than a quarter of Brits are willing to speak to their closest confidants about debt problems, as a new survey suggests that money worries have become the last taboo.

Although more than half of the nation is willing to chat about issues relating to their love lives or family problems and 40 per cent would discuss health or career concerns with friends, research from First Direct shows that we are a nation highly strung about the subject of money.

However, talking about our financial woes means that we are admitting we have a problem and this is the first stage to overcoming the burden, advises Mo Shapiro, one of the UK's leading relationship psychologists.

"Some people feel that they are defined by their financial situation it decides their social status. Admitting to money problems can feel like an admission of failure to run your life properly and not being in control," she said.

"But it also takes a lot of energy to hide problems and often just discussing them can makes them seem less frightening."

The survey also revealed stark regional variation; 87 per cent of respondents in East Anglia were happy discussing their financial worries with their partner but in Wales this figure drops to just 50 per cent.

Overall, men were found to be guiltier than women of bottling up, less than a fifth would be content to discuss their cash-flow problems with close friends.

Delaying pension payment 'cuts retirement fund by 50%'

Mon, 23 Oct 2006 16:47:55 GMT

Graduates disillusioned with pension funds could be risking halving their retirement fund if they delay making contributions until they hit 30, according to new research.

Nine out of ten 16 to 24-year-olds and 44 per cent of 25 to 34-year-olds are not paying into a pension fund and it is only when workers put their 20s behind them that they appear to start making plans for the future, reports HSBC.

The proportion of those making contributions jumps to 69 per cent in the 35 to 44 year-old age bracket, by which time savers could have irrevocably damaged their potential returns.

HSBC calculates that a 21-year-old paying £75 a month into a stakeholder pension would receive £12,700 a year once they reach retirement age but an employee who delays this contribution until they are 30 risks settling on just £6,470.

Ian Martin, head of pensions and retirement income at HSBC, said: "There has been a great deal of talk about pensions recently, and it appears that older workers are starting to hear the message about the importance of planning for their retirement."

The basic state pension is now £84.25 a week, or £4,381 a year.

Savers favour buy-to-let

Fri, 20 Oct 2006 17:18:22 GMT

Bricks and mortar is still Britons' favoured investment vehicle as new research shows that people are choosing to put their money into the rapidly growing property market for the best returns.

As expected, the survey by Standard Life said that the most popular savings medium is consumers' own homes but it also revealed that buy-to-let properties had crept up into second place.

Buy-to-let property has jumped in popularity by some 23 per cent in the last three months and as houses are increasing in value by around eight per cent a year, savers are making increasingly profitable returns on property.

But the research also reveals that people are becoming more inclined to take their financial affairs into their own hands.

Trevor Matthews, chief executive of Standard Life Assurance, said: "The index confirms that consumers are increasingly disillusioned with financial advisers with only 24 per cent of respondents stating they have an ongoing relationship with a professional financial adviser a decrease of four per cent and the lowest score to date.

"It is therefore not surprising that only 28 per cent of those questioned were satisfied with the amount they were saving for retirement."

Research from CML says that in 1998, there were only 28,000 buy-to-let loans taken out, whereas by 2004 this figure had swelled 24-fold to 701,900 and it appears that investor confidence is set to continue in the same vein.

PPI sellers 'failing consumers'

Thu, 19 Oct 2006 16:15:53 GMT

Firms selling payment protection insurance (PPI) are failing to treat their customers fairly, concludes a review by the Financial Services Authority (FSA).

Key findings of the review revealed that many firms are still not giving customers clear information during the sales conversation and it is not being made clear that PPI cover is optional.

Sales people were found to be advising customers to purchase single premium policies even though they may not have the best interests of the customer in mind.

"The bottom line is that customers should come away from the sale having been given the best possible chance of understanding that PPI is optional, what the policy will and will not cover and how much it costs," said Clive Briault, FSA managing director of retail markets.

"On the strength of our findings, the industry has further to go to demonstrate that customers really are being treated fairly in this market," he continued.

Nick White, head of personal finance at uSwitch.com, affirmed that his company's findings backed up those of the FSA.

"Our own investigations into PPI have highlighted that consumers could be paying an additional £4,736 in interest on a £10,000 loan over five years by opting to take PPI with a loan. This is a staggering 694 per cent more with a high street bank rather than with an independent broker," he said.

FSA to teach personal finance

Wed, 18 Oct 2006 17:09:02 GMT

The Financial Services Authority (FSA) has pledged 15 to 20 million pounds a year for the next four years in a bid to help ten million people organise their finances and plan for the future.

In March this year a Baseline survey identified what it believed to be real challenges ahead for those in the 18 to 40 year age group.

It flagged up a general weakness in planning ahead and in choosing the right financial products and as a result, the FSA has decided to help educate people in the ways of personal finance so as to address this skills deficit.

John Tiner, chief executive of the FSA, speaking at today's financial capability conference, said: "Despite being in the early days of delivery, we're helping thousands of people across the UK approach their finances with a new sense of confidence."

He added: "The broader challenge is to widen the availability of basic level money advice and we are forging alliances with trusted existing organisations."

The programmes will range from school participation to workplace seminars and will be delivered through a range of partnerships with private firms.

To date, 278 schools have signed up to the Learning Money Matters programme and 19 universities are helping to develop a Money Doctor tool kit. In workplaces, 43,000 information packs have been distributed and nearly 2,000 people have attended seminars.

Credit union services 'to be available in Post Offices'

Tue, 17 Oct 2006 17:06:50 GMT

Availability of credit union services should be increased by making them accessible through Post Offices, a Labour MP has claimed.

David Drew, MP for Stoud, argued for credit union opportunities to be linked to the savings network so that customers could access them whenever they take money out of their saver accounts.

"After people had drawn their cash by means of whatever follows the Post Office card account a similar arrangement, I hope they could save through credit unions."

He continued: "That would provide all the advantages that the socially excluded do not currently have and we ignore it at our peril."

The chief executive of the Association of British Credit Union said that it was "happy to explore potential ways of working together, especially if this would mean a dramatic increase in the accessibility of credit union services".

Concluding the debate, Jim Fitzpatrick, parliamentary under-secretary at the Department of Trade and Industry noted that the government is investing £36 million through the growth fund to help the development of credit unions.

Identity fraud hits new high

Mon, 16 Oct 2006 16:35:40 GMT

By the end of 2006 it is estimated that over 68,000 people will have fallen victim to identity fraud, according to CIFAS, the UK's fraud prevention service.

Identity fraud has reached record levels this year up from 22,520 just six years ago, an increase of over 200 per cent, having now claimed 282,297 victims since the millennium.

However, some headway is being made. During the first nine months of 2005, almost half of all identity frauds went undetected at the application stage, defined as when the criminal applies for a credit card for example, but this year, this figure has dropped to a third.

Peter Hurst, chief executive of CIFAS, emphasised the importance of catching the fraudsters at this early stage. If the deception is not spotted, the "financial and other institutions would bear any loss incurred as a result of the identity fraud".

He added that while the authorities attempt to be as vigilant as possible, it is "just as important that individuals do everything possible to protect themselves by taking various preventative measures".

Smile.co.uk today offered advice for those concerned by identity fraud. The list included checking for unauthorised activity on your credit file and being wary of telephone canvassers.

Pension funds warned over bonds

Fri, 13 Oct 2006 15:22:50 GMT

Pension funds' focus on buying bonds in order to secure strong yields for their customers could prove to diminish the value of the asset in the long-term, warns a report by the Organisation of Economic Cooperation and Development (OECD).

As demand is inversely proportional to the bond's yield, the more that pension funds by into this method of investment, the lower the returns will be, leading to greater pension liabilities.

The OECD has said that this will create a risky "vicious circle" if not properly addressed.

Derek McLean, head of asset liability management and insurance at F&C Asset Management, said that this is "certainly a consideration" for pension firms at present.

"The current inversion of the yield curve in the UK is a feature that arises from the demand for long dated bonds," he said.

"The risk for schemes is that with a demand-driven spiral down in yields, the first movers into liability driven investment (LDI) strategies will benefit, having effectively locked in any existing benefits, but those schemes that adopt LDI hedging strategies at a later stage will be worse off because falling yields will cause their solvency to plummet."

But Mr McLean added that F&C do not regard this unwelcome outcome as a likely eventuality so long as pension funds consider LDI approaches.

The European commission recently warned that six EU states, Cyprus, the Czech Republic, Greece, Hungary, Portugal and Slovenia, are in high risk of suffering from a pension time bomb unless they readdress their public finances.

The UK was put in a medium risk group.

£20 for single parents looking for work

Thu, 12 Oct 2006 16:53:07 GMT

Single parents will receive a £20 bonus to their benefits if they prove that they have been taking steps towards taking on work, in a pilot scheme due to be introduced by the department for work and pensions next April.

The incentive will be available to single parents with parents aged 11 and over and is part of the Welfare to Work programme.

The Work Related Activity Premium (Wrap) is the latest effort by the government to try to help lone parents take the step from relying on handouts to the world of work.

Speaking at the Inclusion and Child Poverty Action Group conference, Jim Murphy, minister for employment and welfare reform, said: "Nine out of ten lone parents say they want to work, either now or in the future and work-focused interviews ensure they all know about the range of opportunities available to them."

He continued: "The introduction of the Wrap pilot will enable us to test if the extra financial assistance will encourage lone parents with older children to actively take steps to make the transition back into the work place."

The New Deal for Loan Parents has helped more than 458,000 participants make the leap into the workplace meaning that the total number of single parents in work now totals over a million.

70% of debtors owe over £10,000

Wed, 11 Oct 2006 16:42:04 GMT

Some 70 per cent of people with serious debt problems owe more than £10,000 and two thirds are struggling to pay back between £10,001 and £50,000, according to new research.

The survey found that the UK's population collectively owes £1.25 trillion and that the sum is growing by £1 million every four minutes.

The UK has a long history of personal debt going back to the 1980s when credit was freely available and the plethora of credit cards offering attractive short-term rates has done nothing to curb this problem.

John Porter of The Debt Councillors said: "We are seeing many cases where a large amount of money is owed."

It was also found that more than a tenth of those with debt troubles need to pay back loans of over £50,000 but Mr Porter affirmed that the lesser cases also had the potential of spiralling out of control.

"Even the smaller debts are a cause for concern because a change in personal circumstances, such as redundancy, illness or bereavement, an economic downturn or a rise in interest rates could make the problem much worse," he said.

He added that help was at hand: "The first, most important step for someone worried about their level of borrowing is to seek professional debt advice."

Consumers warned 'save wisely'

Tue, 10 Oct 2006 17:13:14 GMT

Savings account providers are increasingly attaching withdrawal terms and conditions to instant access savings accounts, warns a leading consumer welfare website.

As customers often make the decision to deposit their savings in the account that offers the highest rate of return, many are losing out through small print which limits when withdrawals can be made and at what cost, according to MoneyFacts.

Rachel Thrussel, head of savings at the MoneyFacts website, said that although consumers have little time to continually research the best finance products, they "should avoid choosing an account just based on its headline interest rate".

She continued: "It is much better to set out their needs first, whether it be the notice term, where the interest is payable or how the money can be accessed, then choose the best interest paying account from these."

But Ms Thrussel also warned that consumers should keep some cash readily available for unforeseen circumstances, saying that "a mix of accounts can often work well, offering varying liquidity and rates of interest."

Providers such as Alliance & Leicester, first direct and HSBC offer savings accounts that will not pay interest for a month during which a withdrawal has been made.

Banks' customers warned of current account cost

Mon, 9 Oct 2006 17:18:55 GMT

Customers signing up to packaged bank accounts are being charged almost £140 a year, according to new research.

Almost half of current account providers now offer packaged accounts which included extra features such as travel insurance, discount deals with leisure firms and breakdown insurance.

But the returns on these accounts are not as lucrative as many are led to believe, claims MoneyExpert, with the average interest paid being just 1.5 per cent and two-thirds of customers only gaining returns of less than a per cent.

Sean Gardner, chief executive of the MoneyExpert website, said: "Packaged accounts are proving popular with customers and banks and are likely to remain so. However, the average credit interest paid on accounts is not particularly impressive at 1.5 per cent so customers must really value the added extras."

Mr Gardner continued to explain that monthly fees can rise to up to £25 a month, equating to £300 a year and so advised: "Anyone considering taking out a packaged account needs to think carefully about what the special deals are, how much they would cost to buy on their own, how often you would use them and whether that is worth the monthly fee."

Such is the popularity of these accounts that they could spell the end of free banking, meaning that current accounts would require consumers to pay a monthly fee for even the most basic of services.

Benefits of cash back loan disputed

Fri, 6 Oct 2006 17:14:00 GMT

Financial experts have questioned the benefits to consumers of a novel cash back personal loan scheme.

Last week Nationwide joined Moneyback Bank as the only two loan providers to offer the money back option on their loans but there are concerns that it may not be beneficial in the longer term.

Michelle Slade, personal finance analyst at Moneyfacts' website, described the two companies' products as "similar" but she noted: "To qualify you must take the lender's payment protection insurance, not claim on the policy, miss any loan repayments and allow the loan to run its full term."

But she maintained that "the cash back calculations differ enormously".

This is shown by Nationwide's offer of 20 per cent of the customer's premium back compared with Moneyback, which offers a fixed yearly payment dependent on the size of the loan.

Ms Slade concluded: "While the prospect of a cash payment from your loan provider may sound attractive, over the term of the loan, better deals can be found."

House price growth but slowdown to come

Thu, 5 Oct 2006 08:05:21 GMT

UK house prices reported strong one per cent growth in September but are expected to ease by the end of the year, according to the Halifax house price index.

The UK's longest running monthly survey's results tally up with Hometrack's research published yesterday both with its evidence of strong and sustained growth and predictions of a slowdown to come in the near future.

The latest Royal Institute of Chartered Surveyors (Rics) report showed that in August, property sales marginally eased off after having stabilised for three month previous, suggesting that a dampening of the market is imminent.

In addtion, the Halifax survey says that the annual rate of house price inflation has slowed for the third successive month to eight per cent, the lowest since April 2006.

Martin Ellis, Halifax's chief economist, said: "We expect increased utility bills and higher interest rates to curb housing demand over the coming months, causing annual house price inflation to ease between now and the end of the year."

However the UK should avoid a housing market collapse, as is currently being seen in the US, due to it being underpinned by a strong economy of high employment.

Milan Khatri, Rics' chief economist, believes that the "buoyant picture" of the property market suggests that "the slowdown will be gradual" as we move into 2007.

Interest rates held

Thu, 5 Oct 2006 15:57:56 GMT

The Bank of England's monetary policy committee (MPC) has voted to keep interest rates at 4.75 per cent for October.

The City has been expecting rates to rise to five per cent this November for some time but a handful of commentators had warned that the hike could have been pushed forward to today (October 5th).

Borrowers were hit with a quarter of a per cent rise on August 3rd, after not having been raised for two years, but will have at least a month's respite before the MPC meets again.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "It comes as no surprise that rates remain on hold this month.

"However, given a buoyant economy and above target inflation, a rise in the base rate before the end of the year is anticipated and rates are likely to hit five per cent before the year is out."

But the recent stability of energy prices has assuaged inflationary pressures, a factor which could keep rates low in the longer term.

Steve Radley, chief economist at the manufacturers' organisation EEF, commented: "Whilst we are not out of the woods yet, there are some signs that the biggest drivers of the recent increase inflation are set to ease over the next year."

Phone bills 'to rise covertly'

Mon, 2 Oct 2006 17:43:35 GMT

Millions of Britons could be paying more for their phone bills, despite an advertising campaign claiming the opposite, according to new research.

BT has returned to per minute billing, a move which could increase the value of ten million customers' bills claims independent comparison and switching website uSwitch.

The main problem with per minute billing is that costs will be rounded up to the nearest minute rather than to the nearest second.

Furthermore, both BT and TalkTalk plan to introduce a 3p charge just to connect the call.

Chris Williams, telecommunications expert at uSwitch, said: "BTs recent high profile promotion of their cost reduction exercise is now a seemingly redundant and hollow gesture for their millions of customers.

He continued: "TalkTalk has stuck by its promise 'to be cheaper than BT' but it is disappointing that they have mirrored these increases."

uSwitch claims that while both companies say that the changes help to make it easier for customers to understand their call rates the reason for the change in billing is simply to increase revenue.

Package accounts 'not what they seem'

Thu, 28 Sep 2006 16:57:22 GMT

Customers are getting a poor deal from many packaged current accounts, according to new research.

Some 1.3 million customers believe that their current account has been automatically upgraded to a paid-for package account and a third bought into it purely on their bank's advice.

The new research from price comparison website uSwitch shows that eight million people in the UK are paying an average of £120 per annum for package current accounts that they are not actually benefiting from.

Nick White, head of personal finance at uSwitch, said: "In effect, packaged accounts are allowing banks to charge customers for the privilege of being sold additional financial products. Just because banks claim to offer customers a discount if they take out additional financial products it doesn't mean it's a best buy deal or the best option for the individual."

As a result of having a package account, over a third of customers say that they have opened a savings account and 28 per cent bought travel insurance. In addition, just over a fifth bought card protection and credit cards.

Mr White continued to warn that consumers must be aware of exactly what banks mean when they appear to be offering certain new deals: "Persuading customers to take out a packaged account is one thing, but if banks really are automatically upgrading people to a fee paying account it could be described as unethical."

Parents warned of non-stakeholder CTFs by experts

Wed, 27 Sep 2006 16:46:17 GMT

Experts have warned that parents buying into a non-stakeholder child trust fund may be charged high fees and find the process very complex.

It was revealed last week that during the first year of the Child Trust Fund (CTF) a quarter of parents and guardians receiving £250 vouchers from the government failed to invest them before the 12 month expiry date.

HM Revenue and Customs has revealed that parents forfeited at least £87 million of public money, funds which could have been generating tax free returns for children's future use.

Justin Modray, a financial advisor at Bestinvest, speaking on BBC Two's Working Lunch programme, said: "There's really two down sides. One is it can be a little bewildering. So when you've got the whole market to choose from, it's not necessarily an easy choice. The second is that the charges often can be quite high."

He continued to say that trading fees can even be up to five per cent not including the fund charges themselves.

The stakeholder option, although higher risk, offers higher returns as it is invested in stocks and shares.

All children born since September 1st 2002 are entitled to a £250 voucher towards a CTF.

Students still rely on parents

Tue, 26 Sep 2006 17:23:30 GMT

As the new academic year begins, new research reveals that despite bursaries, loans and employment, students all over the country are still relying on their parents for financial support.

With the implementation of top-up fees, students can be paying up to £3,000 a year for courses at the top universities and a new survey by the Royal Bank of Scotland (RBS) shows that there is a marked variation of the amount of help given to youngsters by their parents.

Students at Birmingham University were found to have the most generous parents, receiving £152 a week on average, while their peers at Liverpool only receive £43. Other lucky recipients go to London, Bristol and Leicester.

Paul Jeffrey, head of student banking at RBS, gave the following advice: "The key to managing your finances effectively is careful budgeting. We are encouraging more students to include financial planning in their university preparation."

He also recommended taking advantage of "really usable benefits such as discounts off books, CDs, DVDs and personal contents insurance".

The survey showed that students received these often considerable sums despite the fact that 45 per cent take on term-time jobs to offset their expenses.

Mortgage repayments 'will continue through to retirement'

Mon, 25 Sep 2006 17:38:53 GMT

Millions of homeowners could be forced to work into their retirement in order to pay off their mortgage, according to new research.

Over a third of people with mortgages looming over them predict that they will be at least 60 years of age before they own their home, reports a survey by mortgage provider the One Account.

Furthermore, 43 per cent of homeowners believe that their mortgage prevents them from saving for their later years and 17 per cent of 25 to 29-year-olds admitted that their mortgage repayments are preventing from starting a family.

Both of these factors exacerbate the already problematic pension 'time-bomb' that is threatening the major western European economies.

Debbie Milsom, spokesperson for the One Account, commented: "It is worrying that homeowners perceive that it will take them until they are in their 60s before they pay it off when they should be spending this time preparing financially for their futures.

"A mortgage is perceived by many to be a huge burden but there are ways that people can manage these payments in a flexible way - giving them the opportunity to pay off their mortgage early."

Prospective homeowners, concerned by the amount of debt they are to incur if they choose the wrong mortgage, should look online for the best deals.

Child Trust Fund confusion

Thu, 21 Sep 2006 16:50:25 GMT

During the first year of the Child Trust Fund (CTF) a quarter of parents and guardians receiving vouchers from the government failed to invest them before the 12 month expiry date.

HM Revenue and Customs has revealed that parents forfeited at least £87 million of public money, funds which could have been generating tax free returns for children's future use.

The sum will now be invested across stakeholder funds from 14 providers but it is feared that parents were not well enough informed about the proposal, with many investing in the lower returning cash option or choosing a provider that has excess charges.

Jason Holland, head of communications at F&C Asset Management said: "The most popular option, stakeholder, does have the merit of ensuring money is initially invested in stocks and shares but the downside is that most providers have chosen to take the maximum charges allowable."

He added: "Parents may assume that Stakeholder is the lower cost option because the charges are capped but in reality lower costs and more choice can be found elsewhere."

Many providers offering index tracker funds have been charging the maximum 1.5 per cent an annual fee under the stakeholder rules, a value which can be reduced by shopping around online.

Mortgage lending at record high

Wed, 20 Sep 2006 16:58:38 GMT

August's value of mortgage lending has broken the all-time record once again, as analysts praise the state of the housing market.

The Council of Mortgage Lenders (CML) reports that gross mortgage lending reached £32.7 billion, 7.2 per cent higher than July and 21 per cent above the amount leant in the same month in 2005.

It also became the tenth monthly record of the last year.

Michael Coogan, the CML director general, said: "With financial markets still expecting an increase in interest rates sometime between now and the middle of next year, we forecast that house price growth and strength of demand will moderate, as consumers anticipate higher rates."

However, he added: "This level of lending is sustainable and illustrates the market is in fundamentally robust shape."

The Royal Institute of Chartered Surveyors (Rics) re-enforced this positive outlook, saying that the surge in mortgage lending is "of little surprise coming on the back of a strong upturn in buyer enquiries" recorded by their own survey last month.

Value of pensions halve in a decade

Tue, 19 Sep 2006 16:39:26 GMT

Personal pension returns have plummeted over the last ten years leaving those coming to the end of their working life with concern for the future.

Figures from Moneyfacts.com show that an individual with a personal pension retiring today could be 50 per cent worse off than someone who made the same contributions but reached their retirement a decade ago.

A man retiring at 65 in 1996 having contributed £500 a year for 15 years would have built up a profits pension fund worth £25,840 whereas the same individual today would have a fund worth just £11,696.

Richard Eagling, editor of investment, life & pensions at Moneyfacts said: "Many pension savers may have enjoyed better returns over the last three years but it is vital that they do not become complacent."

He added: "These latest figures should serve as a powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision."

The additional factor that pensioners today are fit to enjoy a longer retirement accentuates the squeeze on their finances, already strained by rising fuel costs this winter.

Britons' grand familial financial outlay

Mon, 18 Sep 2006 17:14:07 GMT

The best things in life may be free, but children are certainly not as new research reveals that Britons spend almost £10,000 a year supporting their families.

Engage Mutual Assurance claims that the average breadwinning earner is spending £9,648 a year on supporting their loved ones, meaning that children are reducing their parents' personal spending by over a third.

Hard-working parents on average spend £804 a month, nine times more on their family than they do on themselves, reported the 3GB survey.

Despite moves to make gender discrimination a thing of the past, it is still evident that men are living up to their traditional role as provider, shelling out £907 on their dependents while women spend £709 of their earnings.

Parents aged 45 to 54 with children at university age spend the most on their offspring, just over a thousand pounds a month.

Karl Elliot, 3GB spokesperson for engage Mutual Assurance, said: "The changing needs of modern families means making major financial sacrifices which affect lifestyle expectations and often leave the breadwinner with just half of their monthly income."

He continued: "We can't stress enough the importance of planning well in advance for the future by saving little and often as early as possible - particularly when the costs associated with dependents of all ages are considered."

Debt: An old problem

Fri, 15 Sep 2006 16:11:19 GMT

Thousands of pensioners are racking up huge debts with no intention of paying them back, claims a new survey.

Financial experts Sesame found that just over a quarter of respondents to their debt survey were not even considering getting themselves back into the black.

It is thought that the newer retirees were the first generation of UK adults to experience the consumer credit card revolution of the 1960s and 1970s meaning that they are more comfortable with carrying debt.

Alastair Conway, head of customer propositions at Sesame, advised: "People have to take control of their finances in the lead up to retirement and beyond, if we are to avoid adding to the UKs mounting debt crisis."

He warned that the mounting problem "may force the government to consider moving towards a system more akin to that of Japan, where debt is passed to children on the death of the parent".

This phenomenon has been raised recently with the issue of the 'deathbed mortgage', where mortgage repayments would be passed onto the homeowners' offspring in the event of their death.

However, in the UK, such a mortgage can only be purchased with the consent of the children.

Energy customers face tough winter

Thu, 14 Sep 2006 17:26:54 GMT

Homeowners will be paying more for their energy this winter if they stick with the incumbent suppliers, according to experts.

With energy rises from British Gas, Powergen and npower it is becoming increasingly important for consumers to make sure that they do not become locked to an unsuitable deal.

Among the recent price hikes, British Gas raised remains 16 per cent more expensive on average than their competitors.

Customers who stay with the company without shopping around, could then be much worse off as the winter months approach.

Ann Robinson, director of consumer policy at uSwitch.com said: "It is time for action before the hefty bills start rolling in and it is in everybody's interest to review their energy costs on an annual basis, just as you would your home or motor insurance to make sure you are not paying too much."

Some ten million in the UK have never switched their electricity supplier and nearly eight million have always stuck with their gas supplier.

Hoards of Britons default on mortgages

Wed, 13 Sep 2006 16:00:12 GMT

Hundreds of thousands of British homeowners have missed their mortgage repayments in the last year, according to new research.

Citizens Advice says that some 770,000 households did not pay one or more of their mortgage payments as borrowers, especially the young, risk getting into serious debt by over-committing on mortgages and other loans.

The charity is urging people to think carefully about the amount of debt they can manage and is advising them to prioritise essential payments.

David Harker, chief executive of Citizens Advice, said: "These figures do not surprise us. Local Citizens Advice Bureaux helped people to deal with 1.25 million debt problems last year and see many people with mortgage and rent arrears."

Drew Wotherspoon of John Charcol mortgage adviser gave the following recommendation to those struggling with their finances: "Always let your lender know of any change straight away and do not try and borrow more money to pay off existing debts. More importantly, whatever you are faced with, do not just stop paying the mortgage as many lenders will be prepared to listen to your situation if you contact them early."

The startling figures come at a time when first-time buyers are putting themselves under increased pressure to get on the first rung of the housing ladder.

Students 'conned' by banks' free gifts

Tue, 12 Sep 2006 17:04:54 GMT

Many university freshers will be targeted in the next few weeks by banks offering £100 free gifts, but they may be lured into choosing the wrong bank account, new research claims.

It is estimated that the false economy offered to students by many banks could cost in excess of £630 claims the Halifax.

The benefits gained from the free gifts, such as iPod suffles or mp4 players are offset by smaller interest-free overdrafts, which all-too-often acts as a lifesaver for hard-up students.

Peter Jackson, managing director HBOS banking and savings, advised that when in debt, students must look "to borrow money as cheaply as possible".

He continued: "That is why it's important not to be taken in by the lure of free gifts and to concentrate instead on the interest free overdraft limits which are on offer."

Over the course of three years, students will be forced to borrow using credit cards or other personal loans if they slip into debt, and these usually more costly than having an larger interest free overdraft.

Clampdown on door-to-door sales

Mon, 11 Sep 2006 17:06:35 GMT

Consumers pressured into buying goods on their doorsteps will have a cooling off period during which they can return their items under new government proposals launched today.

Currently customers have the right to cancel their purchases within a week if a sales visit is uninvited, but a study by the Office of Fair Trading found that 94 per cent of consumers were ignorant of this rule.

Under the new proposals this legislation applies irrespective of whether sales people have been invited, making the law much clearer for consumers.

Jonathan May, director at the OFT said: "Extending protection in this way means that consumers shopping from home can be confident that they are protected from unscrupulous doorstep sellers."

The changes to the law complement the forthcoming Unfair Commercial Practices legislation which protects consumers from sales people who pressurise them into buying a product or service, outstay their welcome once inside people's homes or falsely claim that they need to sign up immediately to get a better deal.

Consumers looking to make purchases from the comfort of their own home without pressure from sales people should look online for the top bargains.

Britons unaware of IHT costs

Wed, 6 Sep 2006 16:10:10 GMT

Britons are not preparing themselves adequately for when they pass away, possibly leaving their loved ones with a huge inheritance tax bill, it has been claimed.

New research suggests that up to 3.6 million people's estates will be liable for inheritance tax (IHT) by 2009 yet only 27 per cent of people have a will and just one in four are aware that IHT is charged at 40 per cent.

IHT is a massive earner for the government, bringing in £3.6 billion a year and as more houses creep into the bracket at which the tax is charged, this figure is due to increase in the future.

Richard Wiseman, professor of psychology at the University of Hertfordshire, sought to expain the apathy:

"People are clearly not planning ahead and I suspect that there are several psychological factors at work. We become very anxious when we think about our own deaths, and so tend to avoid the topic. Also, most of us are natural optimists who like to think that somehow things will work out for the best."

The research, conducted online by 72 point, found that three out of four believed IHT to be unfair while only eight per cent thought it justified.

Christine Foyster, head of wealth management at Friends Provident, said: "This is no longer a tax on the rich. Ordinary people are being caught unawares by the IHT trap, mainly because property price gains have so completely outstripped any increases in the inheritance tax threshold."

Teenage dreams so hard to beat into reality

Mon, 4 Sep 2006 17:30:43 GMT

The vast majority of British teenagers believe that they will become homeowners in the future but the reality facing them is that millions of adults cannot afford to buy their own accommodation.

Some 83 per cent of teenagers are sure that they will own a property one day with over half hoping to make their first purchase between the ages of 23 and 27, according to new research by IFA Promotion.

However, contrary to this optimism, 5.8 million adults in the UK cannot even find their feet on the first rung of the property ladder.

Remarkably, only 21 per cent of young people think that owning a house will be a financial burden in spite of the recent press that has been documenting the troubles of first-time buyers.

Karen Barrett of IFA Promotion said: "The British obsession with owning your own home clearly starts young but the unrealistic expectations are coupled with a shocking lack of knowledge about the home buying process. 80 per cent know nothing, or little, about buying a property or mortgages. The need for advice is palpable and arguably it is the first time buyer who would benefit from independent financial advice the most."

The research shows that the average age of the first-time-buyer is 34, meaning that our teenagers will have to wait for longer than they expect to become kings of their own castles.

Credit card spending spikes in July

Thu, 31 Aug 2006 17:01:15 GMT

The amount of money spent on credit cards has risen sharply in July, despite the month's historical low credit borrowing, according to moneyextra.com.

Last month's average balance, at £2,933, is the highest figure recorded in six months and is a 10.6 per cent rise on the outstanding average credit car bill for June.

The Bank of England's latest figures say that lending as a whole increased by £0.2 billion compared with a £0.1 billion increase in June.

Consumer credit borrowing for July fell in both 2004 and 2005 but this year, possibly due to the record breaking scorching weather across the country, personal card debt actually increased.

Robin Amlot, of Moneyextra, said that the increase is likely to continue this month. "Outstanding credit card balances have risen by almost 20 per cent since April and they are set to rise further; with holiday costs, back to school costs and year-end festive spending to come.

He added: "It's more important than ever than people make sure they have the right credit card for their circumstances."

Prior to this summer, Brits had been reigning in their notoriously high credit spending as outstanding credit card balances fell from a peak of £3,527 in April 2005 to a low of £2,459 in April this year.

Cash machine fraud on the rise

Wed, 30 Aug 2006 16:15:37 GMT

Cash machine fraud has risen by an alarming average of 37 per cent a year between 1996 and 2005, according to Sainsbury's Bank.

Some £65.8 million was lost to card fraud in 2005 compared with just £21.2 million only five years ago.

Due to the growing problem, Sainsbury's Bank has announced that it is to invest an extra £3.5 million on security around its 885 cash machines. This money will be spent on extra CCTV cameras and anti-skimming devices, which are leading the fight against the growing practice of affixing a contraption onto the cash machine that copies the details of the customer's card without their knowledge.

But a spokesperson for APACS said that there are systems in place to cope with the onslaught of fraud.

"If we have huge instances of fraud in certain areas we have an intelligence system to alert banks. If they are developing systems they know what they are having to cope with," said Sandra Quinn.

She added that overseas transaction will continue to carry more risk than those at home, warning that "some foreign cash machines have not yet implemented chip and pin technology".

Customer are advised that they should be vigilant when taking out cash from and report anything that looks suspicious.

Cheque mate for bank payments

Fri, 25 Aug 2006 16:27:14 GMT

From October, new legislation arrives meaning people will no longer be able to write cheques made out to banks or building societies.

Extra details, such as the name of the beneficiary and their account number will have to be included under the new scheme, which is designed to ensure that there can be no confusion as to who the cheque is intended for.

It is hoped the changes will make it far harder for fraudsters to cash stolen cheques.

Ian Mullen, chief executive of the British Bankers' Association, commented: "Although the instances where fraud has occurred in these particular circumstances are fortunately few, it is crucial that the industry continues to make life for the criminal as difficult as possible."

He added that although the measures are simple, they provide additional security when a cheque is made payable to an institution such as a bank or building society and follow good practice guidance that is set out in the Banking Code.

The changes were initially unveiled last December and it is hoped that the general public has had enough time to adapt to the alterations.

'Perpetual' interest mortgage launched to help first time buyers

Thu, 24 Aug 2006 17:24:02 GMT

Kent Reliance yesterday (August 23rd) announced that it would be launching a new low-cost interest-only mortgage that would allow repayments to be passed on to the next generation, but borrowers have been warned to consult relatives before committing to the loan.

The Royal Institute of Chartered Surveyors (RICS) published its August 2006 housing forecast, which claimed that accessibility for first-time buyers was now at its lowest level since the 1980s, predicting that first-time buyers today would need to save for seven and a half years to afford the deposit for their first home.

Ray Boulger, spokesman for John Charcoal, said that mortgage lenders were adapting to the needs of first-time buyers, who could now afford a house without issuing much capital up front.

Praising the Kent Reliance's bold move, he said, "People look at the situation today and ignore the changes that have taken place. There are more people buying together and more people buying on two incomes you need to build all those demographic changes into the figures".

However, Mr Boulger warned that interest only mortgages were generally only suitable for those who were expecting their income to increase over time, so that they could eventually switch to a repayment loan:

"If a parent, while they're working, can only afford an interest-only mortgage, they are not going to be able to afford the interest payments at retirement," he said.

Meanwhile, Alexander Hall, Tony Cardiff sales director said: "It can only be aimed at people in the market who are approaching retirement and haven't yet bought a house."

Interest only loans could reduce first-time buyers' mortgage payments by £150 to £170 a month.

Pensioners susceptible to inflation

Thu, 24 Aug 2006 16:34:58 GMT

Inflation is considered to be the biggest risk when buying a level conventional annuity by 90 per cent of advisors, according to new research by Prudential.

Annuities that guarantee a level income for life will continue to be popular but they ignore the effect that inflation could have on their retirement income.

Over the past year, pensioner inflation was 3.9 per cent, the highest for a decade, considerably above the average rate of 2.4 per cent.

Retirements lasting 20 years are fast becoming the norm, so even if the Bank of England does achieve its inflation target of 2 per cent, £1,000 today will be worth just £620 in 20 years' time.

Aston Goodey, Head of Retirement Income at Prudential, said: "Retirees don't realise the impact that even modest changes in levels of inflation will have on the purchasing power of their income, and therefore it is important to seek independent advice before choosing an annuity.

"One in four 65-year old men will live into their 90s, so securing a lifetime income in retirement is vital. Annuities can provide the security of an income for life and it is therefore important the right choice of annuity is made to suit individual circumstances."

The alternative to inflation-linked conventional annuities is the less stable profits annuities, which link the level of income to the performance of the with-profits fund. This fund has a mix of assets that grow over the long term and give returns as bonuses, which may vary from year to year.

Britons underestimate the cost of NHS treatment

Tue, 22 Aug 2006 17:22:19 GMT

Despite the vast majority of Britons relying on the NHS to cover the cost of their healthcare, they consistently underestimated the cost of the treatment they receive, according to new research by Legal and General.

In a survey that asked a representative sample of more than 5,000 people, common medical procedures were underestimated by 38 per cent.

This shows that most patients do not appreciate how much the NHS saves them, when compared with the costs of private health insurance.

Tessa Webster, customer services director at Legal & General HealthCare, said: "When you consider the amount of money Britons spend on staying healthy a year, over £1.25 billion on gym membership alone, you can see how highly we value our health. However, few are aware of the actual costs of treatment should they need an operation, which only the minority could afford if they were expected to pay it themselves."

As the UK population ages and the demands on our already creaking healthcare system take their toll it is likely that income tax will rise in the long term to pay for the shortfall, and more people may be forced to take out private health insurance to supplement the quality of government provided healthcare.

Currently, 82 per cent of British people do not hold private health insurance.

Small loans more expensive at big banks

Mon, 21 Aug 2006 17:37:19 GMT

Over half a million people who took out loans for less than £5,000 in the past year have, on average, been paying too much interest, according to uSwitch.com.

The best offer for a loan for under £5,000 is currently 5.9 per cent APR, but the 'big five' high street banks have been charging an exorbitant average of 15.4 per cent.

uSwitch's figures show that some people had been pay over three times the typical APR advertised by the same providers, and over four times the Bank of England's base rate.

This practice is known as using a 'tiered loan rate' system, where lenders offer lower interest rates for larger loans and higher ones for smaller sums and it is more expensive for small loans to be taken out over a longer period of time. Since one in six loans taken out over the last year was for less than £5,000, this is becoming a major headache for consumers.

Edwin White, head of personal finance at uSwitch.com commented: "Loans are undoubtedly the most cost effective option where a customer is looking to borrow large sums of money. However, with only a few exceptions the rates remain highly uncompetitive on small loan amounts. People really need to shop around when theyre looking to borrow less than £5k and make sure they are not enticed by headline grabbing rates that are only available on larger loans."

The most popular reasons for taking out these small loans are for car purchases, 36 per cent, debt consolidation, 30 per cent, and home improvements, ten per cent.

Millionaire aren't what they used to be

Thu, 17 Aug 2006 17:34:44 GMT

Although having millions of pounds stashed away in your bank has its benefits, it comes at a price, according to Abbey Premium Banking.

Over one third of people fear that as a millionaire, they would be hassled by gold-diggers and a quarter say that they would not know who to trust. Such attitudes would have catastrophic effects on a person's social life, with 12 per cent believing that their friends and family would be green with jealousy at their success.

Although the benefits of being a millionaire are obvious, only a surprising 11 per cent would give up their jobs for £1 million and a third of people would consider themselves 'wealthy' as opposed to 'very wealthy'.

Perhaps this is because being a millionaire is not what it used to be says Ewen Fleming, Abbey's Managing Director of Premium Banking: "there are now around 376,000 millionaires in Britain today compared to just 36 in 1953 A million pounds in todays money would have only have been worth around £60,000 in 1953. A million pounds in 1953 would be the equivalent of £16.6 million today."

With the news that if they became a millionaire, one in four would appoint their own bank manager, it is clear that people do not enjoy managing their own finances, not realizing that they can do so much more easily if they look online.

Cardiff the UK's most expensive city

Wed, 16 Aug 2006 17:32:44 GMT

London has been overtaken as the country's most expensive city by Cardiff and Edinburgh among others, reports Combined Insurance.

The average Londoner shells out 75 per cent of their monthly pay-packet on essential everyday living costs compared with people from Cardiff and Edinburgh forced to pay 97 and 93 per cent respectively of their earnings to meet their basic needs.

The survey asked a representative sample of 2,000 people how much of their monthly pay cheque they spent on living costs, classed as; mortgage or rent, utility bills, and debt repayments.

Although London's monetary cost of living is the highest, at £1,338, residents' gross monthly earnings are more than sufficient of matching the bill at £1,809. Dwellers in the Welsh capital by contrast are only left with three per cent of their earnings, or £29, for savings.

Nigel Brittle of Combined Insurance said: "These findings call into question the long-held belief that London is the UK's cost capital with an exorbitant cost of living. When monthly income is taken into account, and all monthly commitments are totted up - not just mortgages - it's clear there are residents in other parts of the UK that are living closer to the financial edge."

The major financial pressures facing UK residents at present are rising utility prices, especially gas bills, and ever increasing levels of personal debt.

Homeowners looking for cheaper house insurance to ease pressure on their utility costs are likely to find a better deal online.

British women miss out on pension benefits

Mon, 14 Aug 2006 17:32:21 GMT

Six in ten women are not contributing to a pension fund, potentially losing out on pension tax relief, according to new research by HSBC.

While the research shows that the level of understanding about pensions is on the rise, an alarming number of women mistakenly believe that they have to be working to pay into a pension.

Stakeholder pensions are available to anyone irrespective of their working status.

Ian Martin, head of pensions and retirement income at HSBC Life said: "Stakeholder pensions are a great solution for women who have opted to take a career break while raising their children.

"However, very few mums are taking advantage of the fact that they, their spouse or someone else can continue to pay into a stakeholder pension in their name even if they are not working."

He continued: "With the Inland Revenue adding £28 to every £100 invested, women around the country are missing a trick by not taking advantage of the pension options available to them."

HSBC calculated that the average woman, making a £100 per month pension contribution, had her first child at 27 and took a career break of up to five years, could stand to achieve a retirement fund 28 per cent less than if she had carried on contributing.

The introduction of the stakeholder pension marked it fifth anniversary this year, but the research shows that people are still failing to use them to their full potential.

Real cost of uni far higher than estimated

Fri, 11 Aug 2006 17:03:31 GMT

Both parents and soon-to-be students are underestimating the costs of higher education, new research from the Association of Investment Trust Companies (AITC) has warned.

Most teenagers waiting to get their results said that they expect to come out of university with £6,199 in student loans, while their parents estimated £7,080.

Both were a long way out of line of the actual student loan figure of £13,500, however in the children's' case, half of the real figure.

Both parents and children said that they were concerned with the financial burden of university, with student loans and other debt the biggest issue.

"Soon students up and down the country will be preparing to start their university courses in the autumn," said Annabel Brodie-Smith of the AITC.

"However, it's concerning that so few would-be students and their families really comprehend the financial implications of going to university.

"Many young people go to university to enjoy some of the best years of their life but on graduation will find themselves struggling to repay their debt."

More than a million heading toward bankruptcy says report

Thu, 3 Aug 2006 16:58:22 GMT

More than 1.1 million people are likely to seek bankruptcy protection or an Individual Voluntary Agreement (IVA) in the foreseeable future says new research.

The report found that 20 per cent of people with debts of £10,000 or more said that they were 'quite likely', 'very likely', or 'certain' to soon seek protection from their creditors.

The figure is up from 13 per cent in March when 13 per cent said that they were heading toward bankruptcy, said debt consultancy Thomas Charles.

"Our latest research shows that the problem is here to stay and is set to continue to grow," said Thomas Charles director James Falla.

"With eight million adults having unsecured debts of £10,000 and over, our research shows an enormous uptake of unsecured borrowing across all areas: credit cards, personal loans, student loans, hire purchase and overdrafts.

"This puts literally millions on the borderline."

The situation was compounded today with an increase in interest rates likely to push those at the most risk even deeper into the red.

Nationwide card users happiest, Barclaycard most vexed

Mon, 31 Jul 2006 17:05:31 GMT

Nationwide customers are the most satisfied with their credit cards while Barclaycard customers are the least content, new research has shown.

More than nine out of ten - 91 per cent - of Nationwide's customers say that they are happy with the service they receive, compared to two-thirds of Barclay customers.

Amex, Co-op, Goldfish, M&S Money, Morgan Stanley and Tesco all followed close behind Nationwide each receiving overall ratings of 88 per cent.

"It is no surprise to see Nationwide doing so well in a survey of this nature," said Nick White of uSwitch, who compiled the survey.

"For some time now they have positioned themselves as a champion of banking consumers' interests, campaigning on issues ranging from ATM fees to the order of repayments on credit cards, and fees for customers who use their credit card abroad.

"In keeping with the old adage of 'practising what they preach', this survey shows that Nationwide are doing a good job of looking after their own customers."

More than 10,000 card-holders were interviewed during the research. Lloyds, MBNA and Capital One all appeared low down on the poll alongside Barclaycard.

Lower minimum payments means twice the interest warns research

Fri, 28 Jul 2006 17:03:59 GMT

A widespread shift in the credit card industry towards lowering the minimum level that has to be paid back monthly may seem like a good thing at first glance.

But new research has warned that the reduction now down to as low as two per cent across 50 credit cards is extending our debt and the overall interest that we pay.

Paying just one per cent above the minimum level will slash the lifetime of a debt by 14 years, said Nick White of uSwitch, which conducted the research.

"Our investigation indicates that as credit card debt has gone up by £7 billion over the last two years and Britain's personal debt increases by £1 million every four minutes, lenders have simultaneously become less stringent about their repayment requirements," he said.

"By reducing the minimum repayments to a level that make credit cards seem more affordable and allowing customers to repay smaller amounts each month, borrowers are retaining their debt over a much longer time frame and paying more interest."

The total interest payable over the lifetime of the credit card balance can also be halved by just paying three per cent instead of the minimum two, said uSwitch.

Beware balance transfer credit card trap says survey

Thu, 27 Jul 2006 09:54:31 GMT

Balance transfer credit card users are paying on average ten per cent above the best rates available, to them claims a new survey.

Around 75 per cent of the credit card debt in the UK is subject to interest payments and many people find it more convenient to pay rather than chase zero per cent deals.

Excluding zero per cent offers, the market holds a massive variation in rates.

Moneyfacts says that the new Barclaycard FlexiRate credit card is the best balance transfer credit card for those who are tired of regularly switching providers.

"The new deal, tops the best buy charts offering 4.9 per cent PA until the balance is cleared for any balances under £5,000," said Andy Britchford of Moneyfacts.

"But beware, as with many cards, you will be required to pay a balance transfer fee, in this case 2.50 per cent. So on a balance of £5,000 this would cost you £125.

"However, with interest rates predicted by some, to rise later this year, it may well be worth paying the fee in the knowledge that you won't be charged any more than 4.9 per cent until your card balance is completely cleared."

Inheritance tax bill up estimated £400 million in '06

Mon, 24 Jul 2006 17:29:24 GMT

The UK's inheritance tax bill increased by £200 million during the first half of 2006, as rising property prices meant that more and more people became liable for the charge.

Overall, £1.7 billion in inheritance tax found its way to the Treasury during the first half of 2006, 13 per cent up on the same period of 2005.

Under current rates, 40 per cent of all estates worth more than £285,000 are subject to inheritance tax, with 1.5 million, or eight per cent, of all homes in the UK liable.

This number is predicted to climb to 4.2 million homes by 2020 if the tax continues to be increased by retail price inflation rather than house price inflation.

"Inheritance tax revenues are clearly on the rise and the £1.7 billion collected in the first half of this year matches the total inheritance tax take from the whole of the financial year in 1997/98," said Halifax group economist Tim Crawford.

"Inheritance tax revenues have risen because the threshold for the tax has failed to keep pace with the rise in property prices over the past ten years.

"We call on the government to raise the inheritance tax threshold to £430,000 to account for the increase in property prices over the past ten years."

June mortgage lending breaks records

Fri, 21 Jul 2006 17:16:26 GMT

June mortgage lending broke all previous records reaching £32.2 billion, new figures from the Council of Mortgage Lenders (CML) have revealed.

The previous monthly record, of £29.1 billion, was set in May. The figure is up from £25.7 billion during June 2005.

June is traditionally one of the most active months of the year for mortgage activity, with the 11 per cent increase around historical levels for the month.

"Record levels of lending have been achieved in nine of the past twelve months," said director general of the CML Michael Coogan.

"Today's figure reflects the seasonal rise in house buying, strong house price growth and high levels of remortgaging activity.

"The level of mortgage approvals shows that demand for houses and remortgages remains strong, so we expect to see continued robust lending during the summer."

The CML has warned that rapidly rising fuel prices and unexpectedly high house price growth could cause inflationary pressures however, leading to an interest rate rise.

A rise in the base rate of borrowing would deter first time buyers and cool the market towards the end of the year, it added.

"With inflation above the Bank of England's target, the risk of an interest rate rise seems more real than earlier in the year," said Mr Coogan.

"This may moderate lending and demand towards the end of the year."

Borrowers facing 110 fees says survey

Wed, 19 Jul 2006 17:07:20 GMT

The average UK consumer with just five standard financial products to their name faces 110 penalty fees, with even the smartest and most organised struggling to avoid them.

Simply by taking out a mortgage, current account, personal loan, savings account and credit you could face up to £295 in fees in the course of a month.

"It is unbelievable that five financial products alone can be the root of so much penalty pain," said Stuart Glendinning of Moneysupermarket, which conducted the survey.

"There is a huge number of default and penalty charges of which even the most astute consumer can fall foul.

"It is important to raise the flag of awareness on these penalties and blow the whistle on providers who do not make their penalty fees transparent to consumers from the outset."

Personal loans contain up to 11 forms of fees, including early repayment charges, late payment charges and unpaid direct debit charges of between £25 and £30.

Virgin balance transfer offer 1 year 0% interest

Mon, 17 Jul 2006 17:02:43 GMT

The Virgin Money balance transfer credit card will now offer 12-months interest free on all transfers, up from its previous offer of nine.

The balance transfer credit card will also supply three months zero per cent interest on all new purchases, rising to a standard variable rate of 15.9 per cent.

Virgin Money warned that the standard variable rate is subject to previous credit history and may be higher for some borrowers, however.

In addition to the zero per cent offers, card users will be able to earn Virgin Member Shop reward points, to be redeemed for goods and services with the Virgin Group.

Break-up linked to bankruptcy says report

Fri, 14 Jul 2006 17:00:39 GMT

A new survey has revealed a disturbing relationship between the UK's rising levels of debt and divorce.

The troubled finances of an ex-partner was found to be the underlying cause of unmanageable debt in 28 per cent of bankruptcy filings, said Debt Free Direct.

People going through a divorce were also a third more likely to file for bankruptcy than others.

"Typically, people in a relationship will take on debts in joint names, never believing that the relationship will end," said Debt Free Direct spokesman Derek Oakley.

"But when it does the effect of divorce or separation can seriously heighten the impact of the debt problem."

He added that the issue can be particularly distressing when an ex-partner is unaware of the debts and has taken no steps to minimise their exposure to the fall-out.

"For example, even after divorce, many couples still hold credit or store cards in joint names," said Mr Oakley.

"After separation it's important to advise the credit company to terminate the joint card.

"Unless you do this you could be pursued for payments on debt that your ex-partner has run up."

Women are more likely to be left with no option but filing for bankruptcy, with 14 per cent more women than men filing for insolvency protection.

Victims call for ID theft support

Wed, 12 Jul 2006 17:14:34 GMT

Victims of identity theft are calling for a "one-stop shop" to help individuals recover from the crime.

The National Consumer Council (NCC) said this week that victims of identity theft crimes are often left to fend for themselves, with companies holding the information stolen often identified as the "victim" in the eyes of the law - making it difficult to obtain a crime number.

Victims of such crimes, which can leave individuals liable for huge bills or unable to obtain credit, want a phone or web based system for dealing with the aftermath - helping them prove their identity and get a crime report.

"It's clear from our research that business must dedicate more time and resources into putting things right for victims of ID theft – or face calls for stronger consumer protection laws," said NCC chair Lord Whitty.

"So we are calling on business – banks, credit card, mobile phone, utility and mail order companies - to set up and finance a national ID theft support centre, similar to one that is working well in the US. Setting up such a centre would cost a fraction of the billions lost by industry to ID fraud."

ID theft is estimated to cost the UK economy £1.7 billion a year.

Half UK has no income protection insurance warns poll

Fri, 7 Jul 2006 17:29:36 GMT

Around half of the UK has no income protection insurance, Co-operative Insurance has warned.

The company warned that with a third of the UK expected to be diagnosed with cancer during the course of their lives, many are leaving their loved ones at risk.

Ideally, Co-operative Insurance estimates that people should have at least £150,000 cover for each of their dependents.

"The hard fact is that nearly half of the UK population do not have any form of life insurance cover in place," said Fiona Jackson, CIS head of protection.

"It is clear that people have the attitude that it will never happen to them which nowadays is a big gamble to take.

"Although people may think that a serious illness or injury will never happen to them, for what could amount to the price of a pint of milk a day.

"Critical illness or income protection policy will give families peace of mind and a tax free lump sum if the worst should happen."

The company estimates that the current protection gap stands at around £2.3 trillion.

Credit rating problem mortgage market expands

Wed, 5 Jul 2006 17:05:37 GMT

The number of mortgages tailored for people with credit rating problems has grown six times faster than the mainstream market in recent years say new figures.

The Council of Mortgage Lenders (CML) research showed that while just £1 billion was leant to people with county court judgements or other debt issues in 1996, this has now risen to £25 billion.

The number of deals open to those with credit rating problems has also vastly improved with a range of offers now rivalling the mainstream.

Maximum loan-to-value ratios have also increased and the punitive fees applied to "non-conforming" mortgages have declined.

Much of this is down to increased competition in the market, with the 30 specialist providers now operating more than twice the number in 2000.

The increased supply reflects growth in demand as personal debt increases and more people apply for county court judgements and bankruptcy.

Days of easy credit over claims research

Wed, 28 Jun 2006 17:52:43 GMT

Refusals for new credit cards and personal loans are soaring as banks attempt to stem rising levels of bad personal debt, research has claimed.

Around 3.5 million applications for credit cards, personal loans and mortgages have been turned down over the past year, said Money Expert.

Credit cards have proved most sensitive to risk, with 1.7 million applications refused, while 1.5 million personal loan applications were turned down.

"The days of easy credit are drawing to an end for many people," claimed Money Expert chief executive Sean Gardner.

Credit-hungry Britons refuse to be rebuffed so easily however, with three-fifths of respondents saying that they would apply again.

Mr Gardner said that it was important to understand your credit rating before making repeated applications.

"It is important to understand your credit profile and be realistic about the products that are suitable for you," he said.

"The risk of being declined when you apply for a credit card, loan or mortgage appears to be rising among those applying to the wrong type of lender.

"To avoid disappointment and gain the best deals, people need to apply to the right lenders."

Interest free will never die but it will fade away

Mon, 26 Jun 2006 17:48:33 GMT

Just six credit cards offering interest free periods on new purchases for longer than ten months are left on the market, claims Sainsbury's Bank.

Overall, 66 credit cards offer interest free periods on new purchases with an average term of 196 days, or six and a half months.

"There is a huge choice of cards offering interest-free periods on purchases, but the length of these varies a great deal," said Donald Macleod, credit cards manager at Sainsbury's Bank.

Six offer three months or less, 12 offer between four and five months interest-free and 14 offer a seven to nine month term without interest charges.

While balance transfer credit cards may offer longer periods on older balances, new purchases are slipping to as low as three months in some cases.

Balance transfer credit cards are also becoming more constrictive however, with two fifths of cards charging a fee of up to three per cent of the balance.

"Extreme" debt cases double says charity

Fri, 23 Jun 2006 17:00:43 GMT

The number of people in the classified as struggling with "extreme" debt has doubled in the course of a year, the Consumer Credit Counselling Service (CCCS) has warned.

The number of people approaching the charity owing £100,000 or more in unsecured lending doubled from 1.4 to 2.7 per cent over 2005, it said.

The biggest increases in debt were found among the over-60s, said the CCCS, with average debt increasing 25 per cent to £33,568.

People aged between 40 and 59 remained in the worst financial state, however, with average unsecured borrowing of £33,456.

Young people were in a none too great financial state either, with the number of 18 to 24 year olds seeking financial help from CCCS up five per cent in recent years.

Their average borrowing has increased from £11,934 in 2003 to £15,079 this year.

"It's no surprise that debt levels are rising and that increasing numbers of people are getting into difficulty, but it is disheartening to discover that it is the older age groups whose debt is rising the fastest," said Stuart Glendinning of Moneysupermarket.

"It is undoubtedly the case that many unsecured loan providers have tightened their acceptance criteria in the last couple of years and this is making it harder for younger people, especially those who are not homeowners, to access money."

The number of people seeking bankruptcy protection has doubled in recent years.

First time buyers face record debts

Mon, 19 Jun 2006 17:00:59 GMT

First time buyers now face greater mortgage debts than at any time since records began, new Council of Mortgage Lenders (CML) figures have shown.

New home owners can now look forward to an average mortgage of £106,400 when they take their first step on the property ladder, almost £12,000 up on the same time last year.

Annual salaries are now less than a third of the average mortgage – the widest income gap since figures were first gathered more than 30 years ago.

The CML warned that mortgage costs are now putting pressure on previous older homeowners, with the average mortgage now worth £123,350 another record figure.

"Consumers have been bingeing on cheap credit for several years," Simon Tyler of Chase de Vere Mortgage Management told the Daily Mail.

"But now they are being forced to think about how they will cope if rates rise."

While first time buyers and others are still able to bridge the gap due to the low cost of borrowing, rising interest rates could be bad news for many, said the CML.

Experian busts credit rating myths

Thu, 15 Jun 2006 17:04:35 GMT

Credit blacklists, popularly believed to dictate your chance of securing loans and credit, are actually a myth claims a new report from credit rating agency Experian.

Lenders do use credit rating information to decide whether an individual is liable to be a safe investment, however.

Experian also sought to puncture claims that the previous occupant of your home can affect your credit rating – lenders in fact rely on names and never addresses.

"There are a number of myths about the credit reference processes that have been perpetuated over the years, leaving many consumers baffled," said Jill Stevens, director of consumer affairs at Experian.

"Many of these myths have no basis in fact. It is important that everyone understands how credit works so they can have confidence that the system really does work for them."

Credit refusals will also never turn up on your credit rating, despite what some agencies claim, said Experian.

Inheritance assets tax plan scrapped

Tue, 13 Jun 2006 17:46:22 GMT

The chancellor has scrapped plans to tax assets left in trust in wills, the government has announced.

The Treasury said that spouses left money in trust will not have to pay inheritance tax on the death of a partner.

Lawyers had warned that millions of wills would have to be changed had the plan gone ahead. Only people who inherit between 18 and 25 years old will now be liable.

"Solicitors will welcome the fact that many millions of their clients will not now have to go through the expense and trouble of having their will reviewed," said Law Society president Kevin Martin.

"We are particularly pleased that spouse exemption will no longer be lost, something of concern to those in second marriages and those who wish to comply with Sharia law.

"The government is also taking a much more sensible line on will trusts vesting assets to children between the ages of 18 and 25."

£500m profit from balance transfer credit card deals says research

Fri, 9 Jun 2006 17:08:32 GMT

Credit card providers are running a profit margin of around £500 million every year on balance transfer credit card deals and other introductory offers, says Nationwide.

The fat-profits are due to the providers charging variable rates for different types of spending and almost inevitably paying off the cheapest form of credit first.

On balance transfer credit card deals for instance, the sum transferred would be left until any additional purchases – at a higher rate of interest – had been paid for.

This costs the average card user £100 every year in additional interest charges, Nationwide has estimated.

"Many credit card providers use low introductory rates to lure people into opening an account," said Nationwide executive director Stuart Bernau.

"These offers can look very appealing, but when you scratch beneath the surface you discover that credit card holders often don't receive the full benefit of these low rates.

"Most providers apply repayments to the cheapest debt first making it more expensive for you and more profitable for them.

"We call on the industry to play fair by consumers and apply repayments to the most expensive debt first."

Nationwide, alongside Saga and Liverpool Victoria, is one of the few card providers who pay off more expensive credit first.

UK puts pension's faith in celebrity relics

Wed, 7 Jun 2006 15:20:16 GMT

A growing number of people in the UK are considering funding their pensions with celebrity memorabilia, research for Aon Consulting has claimed.

The finding is part of a survey of alternative pensions investments, with 70 per cent of people prepared to consider unusual investments over traditional pension funds.

Celebrity relics were picked as a hot-tip investment by 29 per cent of respondents.

A more sensible 38 per cent said that they would consider art and antiques, while 34 per cent picked evergreen forest and a similar number would choose classic cars.

Almost a third are placing their faith in fine wines and whiskies, said Ian Dearnley of Aon Consulting.

"It's great that employees are thinking about alternative ways to fund their retirement as a diverse investment portfolio can help to minimise the risk of poor returns," he said.

"However, the average UK investor should be wary of directing too many funds towards the latest investment craze of buying signed photos of today's hottest celebrity, or relying on a dusty bottle of Bordeaux to appreciate in value, without initially seeking proper investment advice."

Affordability gap finally closing says A&L

Mon, 5 Jun 2006 17:42:00 GMT

The yawning affordability gap in the UK property market is finally beginning to close as cheaper mortgages and rising wages bridge the divide, claims Alliance & Leicester.

The discrepancy between income and property prices has led to a small industry of pricy 100 per cent mortgages and other products designed for out-priced first time buyers.

The changing affordability ratings have seen a small surge of first time buyers considering entering the market and of homeowners remortgaging for the best deals.

"We are seeing greater confidence in the mortgage market from consumers," said Chris Rhodes, managing director of Alliance & Leicester retail banking.

"It's particularly pleasing to see the increased confidence amongst the under-30s. Increased first-time buyer activity enables others to move up the ladder."

The number of under-30s considering entering the property market has increased by a third since the beginning of the year, to 16 per cent.

The number of homeowners planning to remortgage their homes or move has doubled since January to 15 per cent.

"Affordability remains good," said Mr Rhodes.

"While household incomes have grown modestly, interest rates are lower than a year ago. Overall the cost of servicing a mortgage has therefore fallen slightly, despite gently rising house prices," he added.

Big four high street banks fold over excessive penalty fees

Thu, 1 Jun 2006 18:13:25 GMT

Barclaycard, Lloyds TSB and HSBC have all said that they will not contest the Office of Fair Trading's (OFT) order that they must slash their credit card penalty fees.

The announcement means that the banks will now be limited to charging penalties of a maximum £12 for overdue payments or unauthorised credit card borrowing.

Consumer protection group Which? has said that the decision is a victory for card users.

"Which? is pleased that these providers have acknowledged that their credit card charges are too high," said Doug Taylor of Which?

"We welcome their decision to cut the charges and hope other banks and credit card providers follow suit.

"Earlier this year, the Office of Fair Trading said that the suggested £12 charge may not necessarily be fair, but that anything above £12 is likely to be unfair.

"So, we still do not know whether the £12 actually represents a fair charge and repeat our call to all providers to open their books to scrutiny and show the true costs involved."

Which? also warned that fees of up to £35 will still be applied to current accounts and asked people charged to keep up pressure on banks by challenging the charges.