Many Britons are becoming more sensible with their money and working hard to reduce their debt levels, according to one financial expert.
Gail Goldie, product and marketing director at Santander Cards, said a large number of people have changed their attitude towards borrowing and become more focused on making their money “go further”.
“People are increasingly paying down debts and are looking to be a bit more focused on managing their finances,” she commented.
Ms Goldie suggested the current economic climate has made people think differently about credit card debt and other forms of borrowing.
According to the Precious Plastic 2012 report published by PricewaterhouseCoopers earlier this month, the average UK household has approximately £7,900 of debt.
Read full post…
Those with credit card debt may find they need extra help if they are unable to switch to a cheaper account.
With large balances having been built up by many ahead of Christmas, January is a time when a lot of consumers will seek to get their debts under control and MoneySupermarket.com has sated that those who switch to a zero per cent card can save hundreds of pounds.
Head of loans and debt at the site Tim Moss said: “Moving onto a zero per cent interest product is a no brainer – it allows you to pay off your existing balance over time without accruing additional interest.”
However, some who are in debt may find they are turned down for a card, not least if they have missed payments on their existing account and have thus harmed their credit rating.
In such instances, struggling consumers may find a debt management plan is the best way forward – or even an individual voluntary arrangement if the debt is over £15,000 and unmanageable.
According to Credit Actions latest figures, total UK personal debt stood at £1.451 trillion at the end of November 2011.
The Office of Fair Trading (OFT) has announced the launch of a new market study into motor insurance, which could be good news for people left with debt worries by the cost of running a car.
Evidence collected by the body indicates that UK insurance premiums increased by about 12 per cent between 2009 and 2010, with a further nine per cent rise recorded in the first three months of 2011.
According to the OFT, the study will look particularly closely at the provision of third-party vehicle repairs and credit hire replacement vehicles to claimants.
This is an area where the organisation believes features of the market are currently restricting and distorting competition.
“We suspect companies may be competing to extract money from each other rather than keeping premiums as low as possible and providing car owners with value for money,” said Sonya Branch, senior director of services, infrastructure and public markets at the OFT.
The Consumer Prices Index inflation rate fell to 4.8 per cent in November 2011, it was revealed yesterday, but this left the rise in the cost of living still at over twice the governments target rate, maintaining the pressure on indebted consumers.
There are many good reasons to consider credit card debt consolidation. While it may not be the best solution for anyone, many have benefited from such types of consolidation.
Depending on your circumstances, you could consider Debt Consolidation if:-
- You find it difficult to stick to existing debt repayments
- You find it difficult to pay for everyday expenses
- Your existing debts have high interest rates and you would prefer one, lower interest rate
- You want to reduce your regular payments to a new lower amount
- You want to spread your current debt repayment out over a longer period.
As long as you do not find yourself tempted to use the paid-off credit cards, this type of consolidation should work very well.
Read full post…
The cost of servicing debt looks likely to stay low as minutes of the latest Bank of England Monetary Policy Committee (MPC) meeting has revealed all of its members voted to maintain the status quo.
Quantitative easing was raised by £75 billion in October and there was no wish expressed by any member to increase that in November, or by anyone to raise the 0.5 per cent base rate.
In line with this months Quarterly Inflation Report, the MPC predicted inflation will fall swiftly in the next few months, something that would reduce any pressure for a higher base rate.
However, the exact rate at which it may fall – and the prospects for economic growth – were described as uncertain, with the eurozone crisis being cited as a major unknown factor.
Fear of what may happen in the single currency bloc is having a “chilling effect” on the British economy by reducing consumer and business confidence, prime minister David Cameron told the Confederation of British Industrys annual conference this week.