Archives for August 2007
Credit cards ‘worse bad debt risk’
Credit cards put the consumer at greater risk of developing bad debt than store cards, it has been advised.
A spokesperson for the Competition Commission notes that while store cards may carry higher interest rates, they typically have a lower maximum lending limit.
Because of this, Rory Taylor argues that the overall likelihood of entering a bad […]
Fixed-rate mortgages ‘offer debt relief’
Fixed-rate mortgages may offer debt relief for homeowners with affordability concerns, it has been claimed.
The Council of Mortgage Lenders (CML) suggests that fixing monthly repayments is a good means of budgeting over the long-term.
Spokesperson Christopher Dean adds that this could be especially helpful for first-time buyers who are at the limit of affordability when arranging […]
Britons ‘unaware of debt problem’
A significant number of Britons are unaware of the level of their personal debt problem, it has been revealed.
Figures from Independent Financial Adviser (IFA) Promotion show that 2.5 million consumers do not know how much they owe in personal debt.
And a further 15 million cannot state their debt problem to within £100 of the actual […]
Store cards ‘may lead to bad debt’
Store cards can result in the development of a bad debt problem if not wisely used, it has been warned.
Chris Tapp, deputy director of Credit Action, suggests that consumers should be aware of cheaper forms of borrowing which are also available.
While traditional credit cards are likely to be cheaper, he states that an overdraft or […]
Lifetime balance transfers ‘offer debt relief’
Lifetime credit card balance transfers offer a reliable form of debt relief, it has been claimed.
Sainsbury’s Bank head of credit cards Donald MacLeod suggests that the product could be useful for consumers looking to consolidate their debts.
And he adds that there is no reason to presume that obtaining such a credit card is a precursor […]
Women pensioners ‘need debt help’
Immediate debt help is needed for women pensioners, it has been suggested.
According to elderly people’s charity Age Concern, £4.2 billion of financial assistance remains unclaimed by those who are entitled to it.
Elderly women are a key group who could benefit from advice, the charity states.
Spokesperson Samuel Heath adds that up to 500,000 UK pensioners could […]
Personal debt levels ‘to damage economy’
The level of personal debt in the UK is likely to result in a weaker national economy in the near future, it has been warned.
F&C UK Growth & Income Fund manager Ted Scott makes the claims in light of a ten per cent fall in the All Shares Index since mid-July.
“The consumer, pumped up on […]
Lifetime balance transfers ‘flexible debt solution’
Lifetime balance transfers offer a flexible debt solution for credit card users, it has been suggested.
Heather Scott, head of corporate communications at Intelligent Finance, notes that the deals have a number of benefits over alternatives.
But she adds that consumers should be certain that they offer the most appropriate debt solution before signing up for a […]
Balance transfers ‘no longer debt consolidation solution’
Interest-free balance transfers are no longer the best solution for consumers looking into debt consolidation, it has been advised.
According to Equifax, lenders are decreasingly willing to allow customers to switch to interest-free balance transfer offers when their current deal runs out.
The financial intelligence service suggests that the habit has become “a popular juggling act among […]
‘Small sacrifices useful’ for debt management
Debt management efforts may be assisted by “small sacrifices”, it has been advised.
Julie Hedge of independent financial adviser Christie Scott’s suggests that debt management need not unduly harm an individual’s social life.
She states that a fund equivalent to about three months’ salary could be enough to lead many Britons to a more secure financial situation.
“People […]