Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

BBA Highlights Credit Card Changes

Governor Mervyn King refused to relax the Bank of England's system for money-market lending, rejecting calls to provide commercial banks with more longer- term cash to reduce borrowing costs amid a global increase in the cost of credit.

However, a careful look into the nation’s spending trends reveals a few misconceptions about the UK’s debt mountain. Credit card spending declined at a rate of £284 million a month for the last six months of 2006, according to the British Banker’s Association (BBA).

Part of this is due to the pinch. Many consumers were managing their debts before the Bank of England hit the country with a new interest rate hike every couple of months. Many consumers are paying a couple hundred pounds more, each month, on interest alone.

“Lower mortgage demand, weaker deposit growth, and little change in personal loans or credit card borrowing all point to people paying more attention to their finances,” said David Dooks, the BBA’s director of statistics.

Credit card spending fluctuates as the Bank of England continues to increase interest rates to tackle the inflation rate problem.

The unsecured loan lending companies are fighting back by making changes to credit card fees. Many now include fees for 'not' using credit cards. These including losing the 90 day interest free period if a certain level of new purchases are not made, a fee if the card is not used within a specified period, and stricter fees for late payments.

These strong-arming tactics by credit card companies, and interest rates that have breached the 30% per annum level, have made many consumers think twice before using their card.

At one time consumers would pay for large appliances, vacations, home renovations, and events like weddings with a credit card. Now, many are turning to secured loans and other loan products to take advantage of the ‘fair’ treatment and lower interest rates.

Published on September 19, 2007

Darling's Budget Report Highlights

Chancellor Alistair Darling delivers his first Budget Report yesterday. Highlighted in this article are some of the main points... Read More
March 13, 2008

Lending Falls Again Says CML

The amounts borrowed by first-time buyers and home movers continue to drop as the credit crunch takes further grip on the UK mortgage market. Remortgage activity is on the increase as many switch from fixed-rate deals to tracker mortgages in anticipation of further base rate decreases from the Bank of England... Read More
March 12, 2008

10 Tips To Improve Your Credit

Now more than ever our credit rating affects our ability to borrow credit. Here are 10 tips to help you improve your credit score... Read More
March 7, 2008

Interest Rates Kept At 5.25%

Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008