Monthly Archives: November 2010

Online Credit Card Spenders Grow To 25 Million

Recent research has suggested that credit cards are being used on a regular basis by over 25 million consumers around the UK.

The report went on to show that a whopping £6.4 bilion is being spent on the internet using credit cards every month. The study suggests that music and movies are the most popular purchases by consumers, followed closely by books, fashion items and holidays.

The head of cards at sainsbury’s Finance, Stuart McKeggie, stated:

“The growth of online shopping in such a short time is staggering. Our research found that only seven per cent of credit card holders do not use their cards online.”

Mr McKeggie added that people who use the internet for their shopping should ensure that their computers are properly protected with security software such as Antivirus and SpyWare. He also stated that consumers should only use secure connections when making any purchases.

The organisation is urging consumers to only use reliable and trustworthy websites in the run-up to Christmas.

OFT Imposes New Credit Card Rules To Protect Borrowers

New credit card rules introduced by the Office of Fair Trading (OFT) are due to come into force from Janurary 2011, ensuring that credit card providers are no longer able to select the order that card debt is repaid.

Common practice for lenders is to allocate payment made by borrowers to the cheapest debt first. The OFT has suggested that this practice is unfair as it leaves the more expensive debt incurring interest over a lengthier period of time. This adds significantly to the amount of money that consumers have to repay.

The prospect of facing an expensive Christmas could be daunting and many people will be using credit cards to pay for much of their Christmas shopping. Credit card borrowers will welcome this news since they are likely to be confronted by sizeable bills after the seasonal period.

Experts in the financial services industry have stated that changing the order in which credit card debt is repaid “will save consumers a small fortune in interest charges.”

In spite of this news many credit card lenders already have these changes in place and CreditWindow suggests looking into all terms and conditions and comparing credit cards before applying for a new card.

Related articles:

Credit cards set to pay for Christmas

UK credit card companies dedicated to reducing fraud

Credit cards set to pay for Christmas

A recent study by ConsumerIntelligence.com shows that over half of British consumers are planning to use credit cards to meet the costs that Christmas throws at them.

A massive 55% of people have said that they plan to use their credit card to fund the Christmas period, whilst, more worryingly, a further 3% are planning to take out loans.

In contrast, only 24% of respondents are expecting to use savings to cover Christmas costs to ensure they stay in credit.

The number of people relying on credit cards or personal loans to pay for Christmas is disturbingly up on the 14% of consumers who borrowed money last year, 34% of which are still attempting to clear 2009 Christmas debt.

The Managing Director of ConsumerIntelligence.com, Ian Hughes, commented:

“Christmas is only one day in the year but the financial effects appear to last all year for a substantial number of adults.”

Mr Hughes added:

“Around 14% of adults got into debt as a result of Christmas spending last year and many are still paying for that.”

What are the pros and cons of credit cards?

Credit Cards frequently prove to be a secure and convenient way of paying for goods and services as well as being a flexible form of borrowing.

When you pay for items using a Credit Card the card issuer or bank is effectively lending you money. But with any form of borrowing there are pros and cons to credit cards, but just what are they? Financial news website, http://www.creditwindow.co.uk reveals all:

Pros of Credit Cards

1. Credit cards are a free short-term form of borrowing – as long as ou are able to pay off your balance in full by the due date.

2. Credit cards are a secure and convenient form of payment in the UK as well as on holiday, abroad, especially when buying on the internet or over the phone.

3. Both card issuers and retailers take responsibility for faulty purchases, if you pay for an item with a credit card, that turns out to be faulty or you don’t receive the item(s) for whatever reason.

4. Fraud protection – you won’t have to pay if you are the victim of fraud and a criminal uses your card.

5. Incentives such as cashback and loyalty points when you use your credit card.

6. Credit cards can be used almost anywhere in the World as they are accepted on a global scale.

Cons of Credit Cards

1. You will incur interest if you are unable to pay off the full balance of your credit card at the end of the month and this could prove costly, depending on the rate of interest.

2. The amount spent on a credit card is always capped at a limit so you can’t pay more than you have available to you.

3. If you have a low or poor credit score you may be restricted to the types of credit cards you can borrow. For example, you may be restricted to taking out a credit card with a high interest rate and a low limit of credit.

CreditWindow.co.uk not only offers excellent financial news and advice but also a great selection of credit cards, guarantor loans, payday loans and more.

Media Contact Information

Name: CreditWindow
Website: http://www.creditwindow.co.uk
Email: info@creditwindow.co.uk

UK homeowners struggling to meet credit card and loan repayments

Debt management help may be needed by British consumers who are struggling to meet personal loan and credit card repayments, according to a survey by YouGov.

The report showed that around 1 in 6 households in the UK are experiencing difficulties with their mortgage.

A further 18% of british homeowners also reported that it is a constant struggle to meet monthly repayments on their mortgages. This is a significant rise from the 10% reported last year in 2009.

Even more worryingly, the report shows that the number of home reposessions actually represents the highest levels the UK has experienced since the mid-90s.

Campbell Robb, Chief Executive of Shelter, commented:

“Clearly this shows what a difficult year it has been for many homeowners, with thousands of people literally hanging on to their homes by the skin of their teeth.”

“With potential interest rate rises, higher unemployment and steep increases in food and fuel bills on the horizon, it seems unlikely things are about to get easier for homeowners any time soon.”

Mr Robb went on to urge the UK Government to ensure that support is offered and maintained for struggling homeowners and to ensure mortgage lenders are playing “their part too so that homeowners are not faced with the prospect of losing their homes.”

On another note, the Consumer Credit Counselling Service, have revealed that many people are turning to friend’s sofas as they have chosen to rent their property to meet their mortgage repayments.

Leading financial lender suggests Brits need to save more

Could payday loans and guarantor loans be the answer to many Brits who have little credit available to them? Recent research by Skipton Building Society suggests that, on average, a typical consumer scores around 4 out of 10 on the financial happiness scale.

The study also showed that the national level of savings most people would feel happy with would be around £194 per month. Unsurprisingly, the city of London came out as the main area where UK consumers needed to save the most amount of money to be happy, in fact as much as £60 more than anywhere else in the UK.

Kris Brewster, head of products at Skipton Building Society, commented:

“Financial worries can affect all of us, but it’s important to take control of your finances and do the most you can do to ensure your finances are in the best state you can achieve.”

In recent research by BBC Radio Three, around 50% of people believe that being given more money would be the major factor in increasing personal happiness.

Should you be stuck with impending bills at the end of the month and need a little more money to tide you over until the end of the money you could consider a payday loan or a guarantor loan.

UK credit card companies dedicated to reducing fraud

A recent report by the UK Cards Association has indicated that many industry experts are helping to reduce the risk of credit card fraud.

The study shows that in the first 2 quarters of 2010 there was a drop of around 20% in total fraud losses on UK credit cards. By the end of the second quarter, losses had fallen under £187 million, whivh is the lowest half-year total for a decade.

The Chairperson for the association, Melanie Johnson, stated that credit card companies are commited to supporting developments that are in the customer’s best interests.

Ms Johnson added:

“We are pleased that our evidence on unsolicited credit limit increases and the re-pricing of existing debt has conclusively shown that existing practices do not need to be overhauled. We believe that, overall, the outcome of the review is balanced and will give consumers the greater control and convenience that the industry and the Government wish to provide.”

Despite this ongoing commitment by industry leaders such as banks and credit card companies, the National Fraud Authority (NFA) have actually suggested that credit card fraud is relatively insignificant when compared to other forms of fraud. The NFA’s figures show that credit card and banking fraud only accounts for less than 2% of overall fraud activity throughout the UK.

Ms Johnson commented further:

“These figures are testament to the importance that the UK’s card companies place on driving down card fraud losses and reducing any inconvenience to customers. We are determined to make sure that customers feel as safe and secure as possible when they use their cards.”

Related Articles:

Security firm urges caution over online credit card spending

Credit checks urged to protect against identity fraud