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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.

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.

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.

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.

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.

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.

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.

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.

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 '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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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".

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.

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.

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.

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.

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."

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.

OFT says bank fees ruling not applied to overdrafts

Thu, 18 May 2006 17:52:48 GMT

The Office of Fair Trading (OFT) has said that it will not apply its landmark ruling that bank fees must be slashed to overdraft charges.

Many had hoped that the OFT decision, which said that bank penalty fees above £12 were "excessive" would be applied to all financial products.

The OFT has said that its review will not include current account overdrafts, however.

"There will be a sigh of relief from the banks, but current account consumers will hardly be pleased that the oppressive fees applied to unauthorised overdrafts have apparently won a stay of execution," said Stuart Glendinning, of Moneysupermarket.

The OFT has not ruled out any future action, said head of the agency John Fingleton.

"We expect credit card issuers to adjust their default fee levels quickly. We have not ruled out future legal action if the market does not respond positively."

Banking complaints double

Tue, 2 May 2006 17:04:26 GMT

More people than ever before are complaining about the service that they receive from their banks, with the number of complaints up 50 per cent over 2005.

The Banking Code Standards Board (BCSB) said that complaints had doubled to 3,500 and that it suspects this could just be "the tip of an iceberg".

The industry watchdog said that it had met with the Financial Services Authority and the banks themselves to remind them of their duties to customers.

The greatest single cause of unhappiness was penalty fees, which can be as high as £30 for a single infraction.

Payment systems, including issues such as bank handling errors, long cheque clearing times and the way banks handle complaints also all featured highly on the hate list.

The Office of Fair Trading has recently stepped into the debate about penalty fees, warning banks that any charge above £12 cannot be considered legally fair.

Tax men warn same-sex couples of rule change

Thu, 27 Apr 2006 16:59:06 GMT

The Chartered Institute of Taxation has warned that same-sex couples in the UK could have inadvertently run up as much as £1,600 in unpaid tax following changes to the law.

Following the introduction of civil partnerships in December last year, tax rules now treat same-sex couples as partners - whether civil registered or not.

"Previously same-sex couples were treated as single people for the tax credit system," said Anne Redston of the Chartered Institute of Taxation.

"So two women who live together as a couple with one child each, would each have been treated as single parents.

"From December 5th onwards these couples' tax credits may go down - perhaps by as much as £98 a week."

HM Revenue and Customs warned about the changes last year but the institute says that it is concerned that the message may have been lost amid the celebrations.

OFT rules bank charges "unlawful"

Wed, 5 Apr 2006 16:22:12 GMT

The Office of Fair Trading (OFT) has ruled that the fees charged by banks and building cards in the UK are "legally unfair" and challenged providers to slash their charges.

Credit card holders in the UK are charged around £300 million in "unlawful penalty charges" every year, the OFT has estimated, with average charges of around £25.

These frequently rise to £35 however. The OFT has ruled that anything above £12 should be considered excessive, although it added that even this should be justified.

"Our statement of principles provides practical guidance to banks which increases their incentives to compete vigorously while protecting consumers from being charged unfair amounts," said OFT chief executive John Fingleton.

"Our threshold approach is a spur to changes in market practice. We expect credit card issuers to adjust their default fee levels quickly. We have not ruled out future legal action if the market does not respond positively."

The National Consumer Council (NCC) welcomed the ruling. "NCC is delighted to see an end to rip-off bank charges which have been a penalty and a punishment for thousands," said its deputy director of policy officer Claire Whyley.

"We welcome the OFT's move to limit fees to £12 and applaud its decision to base the charges on costs incurred by the banks.

"Arbitrary penalties imposed by banks on consumers have caused stress and misery and were not acceptable. The new limit helps to protect vulnerable consumers most likely to go overdrawn that get hit the hardest," she added.

A third of all current account holders permanently in their overdrafts

Fri, 31 Mar 2006 17:08:01 GMT

A third of all adults with bank accounts in the UK rely on their overdrafts just to get by, new research has revealed.

Of the 28 million adults in the UK with access to an overdraft, 14 million are dependant on the safety net it can provide, or 35 per cent of the total.

More worryingly a quarter of current account owners are stuck in perma-debt on their overdraft, only skating a little closer to the wrong side of zero when they are paid.

The average male overdraft is worth -£867, while the average female debt is -£515.

"Overdrafts are now an everyday part of life, but we are concerned about the increasing reliance that people are placing on them," said Nick White at uSwitch.

"They are no longer seen as a short-term borrowing facility - and for the 3.5 million people in this country who are permanently overdrawn, they are an absolute necessity."

Analysts warn on savings accounts cuts

Wed, 29 Mar 2006 18:09:17 GMT

Financial analysts have warned that savers should be prepared to regularly review their savings accounts as rates tumble across the board.

Since the beginning of the year, 32 finance providers have cut their rates on savings, warns a report by Moneyfacts.

Some of fallen harder than others and there will be some seeking to capitalise on the market however, and savers have been told that they do not need to accept lower rates.

Savings accounts market leaders who have cut rates include the AA, Northern Rock and Halifax, which has just announced a 0.15 fall in its rates.

"A small savings cut of, say, 0.05 per cent may go unnoticed by many consumers and will cause minimal customer loss, but can prove a very considerable saving when applied to the collective sum of consumers deposits, potentially a huge pot of money!" said Rachell Thrussel of Moneyfacts.

"With over a third of these providers cutting rates across the board, and some imposing rate reductions as large as 0.45 per cent, consumers would have almost certainly noticed a significant change to their interest returns, especially with average instant access rates around two to three per cent."

18 to 40-year-olds lacking in financial savvy

Tue, 28 Mar 2006 16:56:28 GMT

In launching a programme to help more than ten million people over the next five years, the Financial Services Authority (FSA) said the financial skills of the UK's 18-40 year olds is essential if they are to meet the greater demands placed on them and avoid problems in the future.

In a report published to coincide with the announcement the FSA discovered that even after lower incomes and limited experience are taken into account, those in the 18-40 age group are less financially capable than their elders.

"Yet it is this group that today faces greater individual financial responsibilities," the FSA said.

John Tiner, chief executive of the FSA said: "There is an urgent need to help the young. The ability to manage money grows with age and experience. But rapidly changing economic and social trends mean that today's 18-40 year olds are faced with greater challenges than were faced by their parents.

"They have greater access to credit and are becoming consumers at an earlier age. On top of that, the costs of higher education and of retirement are being increasingly borne by individuals rather than the state or employers.

"This combination of pressures means that the cost of not having the necessary skills to make sound financial decisions is becoming increasingly significant."

Basic bank accounts provide financial confidence

Mon, 13 Mar 2006 17:09:41 GMT

Over three quarters of basic bank account users say it has given them for financial confidence, according to a survey commissioned by the British Bankers Association (BBA).

The research, which looked at 1,000 people who had opened a basic bank account in the last year, found that nine in ten are happy that the account meets their needs, while a similar figure said the opening procedure was straightforward.

Over 1.6 million basic bank accounts have been opened since banks began to offer the service, with most able to access their accounts through local post offices. In the last three months of 2005 121,000 accounts were opened.

Ian Mullen, chief executive of the BBA, said: "Access to banking services is the lynch pin to financial inclusion and this research clearly shows that the features of the basic bank account closely match peoples' needs.

"As customers become more confident with their finances, a change to an account with fuller features may be appropriate."

The survey also found that 87 per cent of basic account customers are happy with the functions that it provides, while 91 per cent had nothing bad to say about the way the account was dealt with.

UK embraces online banking says survey

Wed, 8 Mar 2006 17:05:08 GMT

More than half of the UK (59 per cent) now regularly takes advantage of online banking, says new research.

Almost two thirds of people in the UK now says that they use online banking "much more" than they did two years ago.

Overall, 14 million people now take advantage of their bank's online banking facilities said Alliance and Leicester, which commissioned the research.

Managing current accounts remains the most popular use for online banking, with 30 per cent saying that they mostly log on to check their balance.

Over the counter face-to-face contact remains most popular for more complex transactions. Almost 30 per cent say that they do not use online banking because of security concerns, however.

"The pressures of modern life mean that internet banking is the best option for many UK banking customers," said Andy Muddimer of Alliance & Leicester.

"As ever, security is a very real issue and at Alliance & Leicester we are always looking at ways we can develop and increase security for our online banking customers. The FSA, too, has recognised this, with its Financial Risk Outlook 2005."

Law student takes on UK banks over charges

Mon, 20 Feb 2006 17:28:45 GMT

A law student who has previously humiliated a high street bank over the charges it makes is to bring a court action today against the biggest high street providers.

Stephen Hone, 29, is seeking a declaration from the High Court that the penalty charges made by UK banks for unauthorised overdrafts and bounced cheques are unlawful.

Banks named in the suit include Barclays, HSBC, Lloyds TSB and NatWest.

Mr Hone has previously taken on Abbey National over it charges. The Bank declined to argue its case and settled out of court for £5,000.

"I am seeking a legal declaration from the courts that the contractual terms and conditions which the UK banks use to justify these penalties are unfair under the unfair terms in consumer contracts regulations 1999," Mr Hone told the Guardian.

"Customers have taken banks to the small claims court over penalties, generally winning because the banks settle on the courtroom steps. Instead, rather than all these piecemeal actions, I want the courts to settle the legal basis of this once and for all.

"This case is not about reclaiming money," he added.

Mr Hone believes that he has a compelling case as the charges that the banks make are unrelated to the costs imposed on them.

Bank officials have privately conceded that the charges are needed to "discipline customers who would otherwise have free rein".

Six million savings accounts to switch in '06, says survey

Mon, 6 Feb 2006 17:03:11 GMT

In a fresh sign of competition in what was until recently considered an unexciting market, almost six million savings account holders are planning to switch in 2006.

Many banks, such as NatWest, Halifax, Woolwich and ING, to give just a small taste, have all recently decided to cut their rates.

The market movement is despite the Bank of England holding base rates steady at 4.5 per cent since the late summer.

"There are plenty of good savings accounts out there but too often people just leave their money in an old account earning little interest and forget about it," said Sean Gardner, MoneyExpert.com's chief executive.

"Some organisations take advantage of this apathy by launching market-leading accounts, then gradually cutting back the rates over time. Savers should not let them get away with it."

Finding a decent savings account rate is not simple with many lenders hedging their high payments with many terms and conditions.

Savers will commonly have to commit to regularly pay a set sum into their savings account, and to agree to leave it invested for a fixed term - typically a year - to earn the best rates.

Resolutions prove brittle in the chill January days

Wed, 25 Jan 2006 14:56:54 GMT

It seems that as the hangovers and the party memories fade so does the will power.

A new report reveals that three million (39 per cent) of the British adults who began 2006 with a New Year's resolution will have already succumbed to temptation and got back to their old ways.

Of the seven million who made resolutions one in ten aimed to give up smoking and one in five hoped to lose weight, but a massive 50 per cent made resolutions aimed to improve their financial situation.

Saving and budgeting were the most popular ways in which people hoped to improve their finances, with 53 per cent and 55 per cent respectively hoping to pick up these habits for the new year.

Almost a quarter (1.5 million) hoped 2006 would be the year they paid their own mortgage and not the landlord's, and wanted to get on the property ladder.

Karen Barrett, marketing director of IFA Promotion, which carried out the research, said: "It is very encouraging to see so many people starting the year with resolutions - especially financial.

"However, it can be easy to let these good intentions fall by the wayside. An IFA could encourage you to persevere with your resolutions and improve your finances."

Financial health-check recommended

Mon, 23 Jan 2006 16:54:52 GMT

UK consumers are being advised to carry out a "financial health-check" at least once a year, in order to keep pace with their "hectic lifestyles and future ambitions".

The Co-operative Insurance Society (CIS) points out that getting married, having a baby, buying a house, or even starting up a small business are all life-changing events and can have a major impact on finances.

It points out that the average house price has almost doubled in the last six years meaning homeowners need to be aware that life protection and home insurance should also reflect these changes.

Charles McKeown, CIS Insurance sales director, said: "The start of a New Year is the ideal time to take stock of your short and longer term financial needs. Too often we are ill equipped to cope financially when changes occur and by then it is often too late to put the necessary provision in place".

Money worries making us sick

Fri, 20 Jan 2006 15:05:46 GMT

Financial stresses and strains are becoming so bad that they are making us ill, according to a survey from AXA.

Money Sickness Syndrome, diagnosed by mental health expert Dr Roger Henderson, occurs within people who have a poor understanding or control of their financial situation. Symptoms include headaches, shortness of breath, palpitations, nausea and mood swings.

AXA found that 48 per cent of people it interviewed claimed to suffer from the symptoms that Dr Henderson describes. Another 3.8 million admitted that money worries had gotten so bad that they had been forced to take time off from work.

"Money worries can cause significant problems in relationships, and people who suffer as a result are often in worse health than those who are in control of their finances," Dr Henderson said.

On sufferer, Ben Cox, said that money problems were seriously affecting his life: "My relationships suffer as I am short tempered and irritable, and my sleep is often interrupted. I admit I drink a little more than usual when I'm worrying about my finances."

Dr Henderson added: "The worry and anxiety caused by the feeling of having a total lack of control over your finances can put great stress on your health and well-being. People like Ben need to learn to overcome the feeling of helplessness by taking control".

Almost half of child trust funds unclaimed says survey

Tue, 17 Jan 2006 17:16:41 GMT

Almost 50 per cent of the Child Trust Fund (CTF) vouchers launched a year ago have yet to be claimed, says a survey of the funds by Nationwide.

The £250 funds - or twice that for children of low income families - were opened by the government to ensure every child born after August 31st 2002 has a savings account for when they reach adulthood.

Parents were given 12 months to make their choice of investment in either a tax-free savings account, a stakeholder account partially invested in the stock market or a pure stock market fund.

Almost half of all parents have not claimed the vouchers however, meaning that the government will now make a decision on how to invest the funds on their behalf.

They will also have already missed out on a year' s savings account interest payments. Financial advisor Rachel Thrussel says that parents will still be able to switch the funds to a saving account of their choice at a later date.

"All that's needed is a quick phone call to the Revenue," she told This is Money. "They will make some simple checks to confirm that the original voucher has not been used and arrange for a duplicate to be issued."

Cahoot launches new savings rates

Thu, 5 Jan 2006 16:53:55 GMT

Online bank Cahoot has launched the first skirmish of a looming price war over UK savings accounts, with a 4.85 per cent saving rate offer for all customers.

The offer is widely assumed to be the first of several potential challenges for the title of best saving rate available, following ING's decision to cut its savings account rates down to 4.5 per cent.

The Cahoot savings account, only available online, will offer the rate on savings between £1 and £250,000.

Both the ING and Cahoot savings accounts are among a new wave of highly popular "straightforward" accounts paying consistent and decent rates of interest with no hidden charges or withdrawal fees.

"With this savings account, what you see is what you get. It's straightforward, good-value and gives a decent return on balances up to £250,000," managing director of Cahoot John Goddard told This is Money.

"People can put small amounts in each month or transfer a larger balance straight away. This is not a limited offer, there are no catches and no frills, just a really good rate."

Banks report rush of interest in 'dormant' savings accounts

Wed, 21 Dec 2005 17:21:18 GMT

Banks and building societies says that they have received a flood of enquiries from people wishing to track down old savings accounts.

The sudden wave of interest has been prompted by the Chancellor Gordon Brown's announcement that money in savings accounts defined as "dormant" will be claimed by the government and distributed to charities.

Accounts will be considered dormant if they have remained untouched for more than 15 years. It is estimated that around £15 billion is lying in dormant savings accounts.

The Building Societies Association has said that it has seen a sharp increase in the number of account tracking forms downloaded from its website since the announcement.

"I'd say there are a good number of people who will think very carefully about whether they have any money in old accounts," a British Bankers Association spokesman told This is Money.

When the Irish government announced similar measures to those planned by Gordon Brown, around one third of all accounts considered dormant were reactivated.

ING Direct cuts savings accounts rate but remains ahead

Mon, 19 Dec 2005 17:13:18 GMT

Savers with ING Direct online "basic" savings accounts could be forgiven for looking elsewhere, as the provider announces that it will be cutting its rate to 4.5 per cent in January.

The ING Direct has long been one of the best buys on the market but the cut means that the account is no longer in the first row of great savings accounts deals.

An ING spokesman seemed pretty calm about the situation, however.

"We may not be at the top of the table, but we're in the market to provide our customers with a good rate and we're not going to play the games that other providers play," he told This is Money.

By games, he meant something like the Alliance and Leicester Premier Direct savings accounts.

This will pay ten per cent, but will only accept up to £250 a month, cannot be changed during the first year and must be linked to an Alliance and Leicester current account.

This and a string of deals like it offer great rates but with many conditions attached - and invariably mean that you will be left starting the whole process again once the introduction is up.

In fact the class of "basic" savings accounts pioneered by ING Direct is now so popular that many price comparison websites are setting up comparison tables dedicated to them.

The basic accounts allow total freedom of withdrawal and deposit, with a constant rate and no fees or hidden charges. It is almost as accessible as a current account but with double the rate of interest.

"ING have obviously been extremely effective by using the 'easy access' marketing angle," said finance expert Rachel Thrusel.

"When ING say 'easy access, no charges and easy to understand products' this is exactly what they mean.

"There are no fees for early withdrawals, no requirement to hold a current account with the same provider, and no complicated bonus arrangement - basically a 'no strings approach'."

And in this hassle-free market it is still a winner, with a rate that beats or equals savings accounts offered by Egg and Intelligent Finance.

Cahoot offers 5.25 per cent for balances of over £15,000, and Halifax offers 4.65 per cent.

£1.5 billion lost every year to savings account 'apathy' says Capital One

Wed, 7 Dec 2005 19:32:00 GMT

Over £59 million is sitting in savings accounts in the UK earning their owners less than two per cent in interest every year, Capital One has revealed.

And £2 billion of that amount was deposited in savings accounts in the past year alone says Capital One, paying investors less than the interest accrued on many current accounts.

Overall, Capital One believes that savers are missing out on up to £1.5 billion a year by leaving their money in underperforming savings accounts.

Many savings accounts now pay 4.5 per cent or more in interest, says the online bank.

"Our research clearly demonstrates how millions of people may be receiving a very poor rate of interest on their savings accounts, many of whom have been with the same provider for over a decade," Katherine Carlson, head of savings accounts at Capital One told My Finances.

The figures should be a wake up call to those whose money could be earning them over £100 more every year if they roused themselves out of their "worryingly high level of apathy" towards earning the best savings accounts rate available, said Ms Carlson.

Capital One also recommended that an ISA would be the best savings account for those with less than £3,000 in savings, paying tax free rates of up to five per cent.