Monthly Archives: May 2011

Book Your Way To a Cheaper Summer Holiday With a Prepaid Mastercard

Pre-paid debit cards could help cut the cost of summer holidays.

With people struggling to cope with rising bills for everything from food to electricity, many will probably be thinking of having their holiday at home this summer. But getting away from it all can be very important, and if consumers play their (plastic) cards carefully, they might enjoy a holiday for less than they thought.

It’s possible to start saving with a MasterCard® prepaid debit card from the moment a flight is booked. For example, the Ryanair £5 each way booking fee can be avoided if a prepaid MasterCard is used to pay for the airfares. So straightaway there’s a saving of £40 for a family of four booking return tickets straight-away.

Some prepaid cards, such as the Cashplus Prepaid Gold MasterCard, even provide access to a Cashback site with some truly amazing offers – for example up to 25% Cashback on flights booked through TravelSpec.

Prepaid cards can also help travellers to avoid the risk involved with carrying large amounts of cash around. The customer just loads up a prepaid card before they leave the UK and then uses it at cash machines abroad to withdraw their money in the local currency. A traveller could use a prepaid card with a GBP account anywhere around the world that their card is accepted, or they could choose a card already in the currency of the country being visited. For example, Cashplus offer both a Euro currency card and a US Dollar card. These cards are linked to the cardholder’s GBP account, making it easy to move money to and from their currency card(s) online – at home or whilst abroad.

As well as saving money, prepaid cards can help prevent people from losing money. After all, if you lose cash it’s usually lost forever! But if a currency card is lost or stolen whilst abroad, the cardholder can just phone the card provider to cancel the card. As long as the card has been used sensibly, in line with the providers’ Terms and Conditions, the money on the card when it was lost can simply be transferred onto a new card, or into their GBP account.

Prepaid currency cards aren’t just a convenient way to carry travel money, they can also offer a good foreign exchange rate. Some currency cards, such as those offered under the Cashplus brand, can save you money by not charging a foreign exchange (FX) fee, and the card is even provided for free!

A prepaid card could also help travellers to stick to their budget by reducing the risk of overspending. Cardholders just top up their card with the amount that they can sensibly afford to spend whilst abroad – the cardholder can’t start spending money that they don’t have.

Finally, it’s worth considering that over the last couple of years, over 60 airlines and holiday companies have gone bust, leaving many people stranded or out of pocket*. But booking with certain prepaid cards can save an awful lot of money and worry as they can offer Free Purchase Protection, designed to help consumers get their money back if the worst happens – from holiday companies becoming bankrupt to buying something that turns out to be faulty. This type of protection is rarely offered with debit cards.

So people wanting to enjoy a cheaper holiday, with travel money at a great exchange rate and with protection from ailing airlines should give their wallet a break with prepaid cards.

If you’re looking for a pre-paid card to suit your needs why not compare pre-paid debit cards with Creditwindow.

*Source: www.themoneystop.co.uk/052010/are-you-protected-if-your-airline-goes-bust.html

Guest Author: MyCashPlus

A Quick Guide To Car Loans

Looking for a car loan but don’t know where to start?

It can be difficult finding the right car financing option to suit your individual needs.

Check out our quick car loan guide and learn some more about car financing…

Car Loans – What Are They?
How Much Do You Need To Borrow?
Applying For Your Car Loan

1.) Car Loans – What Are They?

Simply put – a car loan is basically a very specific personal loan for the purpose of buying a car or, in some cases, to pay for repairs to your vehicle.

To qualify for a car loan you need to be at least 18 years or older, however, some car finance lenders state that you should be at least 21 years old and you will need to hold a full UK driver’s licence.

As with any other personal loan, car loans essentially work in much the same way and the loan company agrees to lend you a set amount of money and you agree to pay that amount back plus interest over a set period of time. This can be anything from 1 to 5 years. Loan interest usually comes into effect from the date the loan is drawn down and the monthly loan repayments gradually repay the full amount you’ve borrowed, including any interest.

2.) How Much Do You Need To Borrow?

It can be tricky trying to work out exactly how much you need to borrow, however, there are a number of things you should consider when thinking about new or second-hand car loans, including whether you:

intend to buy a new or second-hand car – some car finance loans may not available for used cars
are looking to buy a specific manufacturers’ make and model
are considering purchasing a car privately
have a car you are looking to trade in
need the money to pay for vehicle repairs

Your financial circumstances can also determine the type of car loan best suited to you, e.g. do you:

own a home which could be used to secure a car loan against?
have a good credit history, which will be checked if you are looking for an unsecured loan?
have a deposit to put down on the vehicle or do you need to borrow the full amount?
have an existing unsecured loan or even mortgage that you could top-up to help buy the car you want?
have a fixed budget?

When looking to borrow a loan you need to be sure you can afford to make the necessary repayments. Bear-in-mind that, depending on your personal circumstances, car loans can range from anything between £1,000 – £25,000 (possibly more in some instances).

3.) Applying For Your Car Loan

Once you have made a decision on which car financing option is the right one for you, it is now down to applying for the loan.

It’s very important that you have the right documents before you start the application. Many car loan firms will require you to provide:

a form of identification
proof of age
your driving licence
proof of your income/salary
proof of your UK home address (permanent residence)

It’s vital that you ensure that you have read and understood the car loan agreement before you sign it. Once you have signed the agreement you enter into a binding financial contract.

Once signed make sure you keep the car loans and finance agreements in a secure, safe place for future reference.

Should you get into financial difficulties and are unable to make a repayment then you should contact the car loan company as soon as possible. They can then advise you on what your options are as well as potentially avoid your car being re-possessed.

Get a car loan today:

Image: Ambro / FreeDigitalPhotos.net

Family Debt Deeply Troubling

A study by insurance firm, Aviva, has revealed that the average UK family are struggling financially as a result of the rising cost of living and significant credit card and personal loan debts.

The research suggested that the average family are now spending around 10% of their income on repaying credit card and unsecured debt, up from 8% at the begining of 2011.

Unfortunately UK familes have seen an increased level of debt repayments as well, with the amount owed on personal loans, overdrafts and credit cards increasing as well. Seeing a rise of almost £520 on average in January 2011.

In spite of this the report also showed that families are able to save more, with the typical household saving £32 a month, up by £10 in January.

The head of pensions marketing at Aviva, Paul Goodwin, commented:

“While it is great news that families are saving more, the fact that many have higher unsecured debts and have seen an almost blanket increase in day-to-day living costs is deeply concerning.”

Mr Goodwin went on to add that many “UK families are worried about the future, with almost two-thirds anxious about any increases in the cost of basic necessities over the next six months. This research really serves to highlight the precarious balancing act that many face today as they look to meet their financial obligations and provide their families with some type of financial security.”

British Consumer Credit Impacted By Rising Cost Of Energy

The rising costs of energy is severely impacting customer credit, with some experts suggesting that it could increase by 50% over the next 4 years.

Utility bills, including gas and electricity, are expected to increase by a whopping 50% over the next four years as gas and electricity suppliers look to offset rising wholesale costs. Further taking it’s toll on consumer bank accounts and credit cards.

This year alone we are expected to see an increase of 15% in energy prices, according to the Bank of England Governor, Mervyn King. However, it’s also been noted by Deutsche Bank that even higher bills are possible from 2013 should suppliers attempt to protect profit margins.

With the average household income dropping back to 2005 levels, high inflation levels and the ever increasing cost of living, many are concerned that this could further impact consumers throughout the UK. Some economists have even ventured that, should earnings and benefits fall further it could represent the most significant fall in “median incomes since 1981.”

Since many people around the UK are already suffering from significant from personal loan, credit card debts, unemployment and crippling taxes, it’s proving more and more urgent for changes to welfare reform and the availability of credit where it’s needed. The Work and Pensions Secretary,

Iain Duncan Smith, commented:

“This underlines the urgent need for our radical programme for Welfare Reform and especially Universal Credit which will make work pay and end the madness of generations living on benefits with no reason to aspire for more.”

Mr Duncan Smith went on to add that Government plans will help around 1 million people out of poverty and back into work. This is expected to end “the depressing spiral of a lifetime on benefits that blights too many of our towns and cities.”

In a positive move to controlling energy regulations and costs, Ofgem have been investigating the cost of gas and electricty suggested that energy companies respond very quickly in raising their prices when costs increase, however, they are a lot slower in responding when costs fall.

Hardly surprising is it? It’s all about profitability at the end of the day - it would just be nice to see an “ethical” energy company who responds to the needs of their customers – maybe it’s time for a shake-up, similar to the one the banks received when the British economy collapsed.

Image: graur codrin / FreeDigitalPhotos.net

Banks and building societies are offering even more competitive interest rates on loans and current accounts.

Good value personal loans with low interest repayment rates are being made more and more available as banks and building societies look to compete with payday loan companies and other short-term lenders.

Good news for consumers, Nationwide Building Society have announced a cut of 0.2% for both new customers and for new personal loans paid-out to existing customers.

According to Nationwide, customers who take out the Nationwide FlexAccount with a view to using it as their main bank account will benefit from a massively competitive interest rate of 7% APR Typical. The new rate is applicable to personal loans of up to 5 years, between £7,500 – £14,999, and can be taken out over the phone, through the branch network or online.

Further good news has revealed that even people who do not have or plan to open a Nationwide FlexAccount are able to take advantage of their personal loan schemes with a competitive rate of 7.1% APR Typical.

The Nationwide’s head of banking, Richard Napier, commented:

“If you’re looking for a personal loan to help buy that new car, pay for a wedding, carry out home improvements or consolidate other debts, Nationwide’s new rate is definitely one to consider.”

This move by Nationwide suggests that British high-street banks and building societies are taking the needs of their customers more seriously and are looking to compete more aggressively with excellent value products emerging on to the market.

With these improvements to the way in which we bank could we soon be looking at another booming economic period… let’s hope so.

If you’re interested get a Nationwide FlexAccount today:

Banking Reform On The Cards For Tax Payers

The UK’s economy has felt the reverberating affects of the recession and many of the country’s banks were brought close to collapse.

As a result the Independent Commission on Banking (ICB) has released proposals to change the way in which banks operate. If the UK government gives the go-ahead on these proposals the British people could see major changes in banking security and competitiveness, improving both services and products.

Published earlier this week, the ICB’s report sets out their plans for a new and safer banking system that limits the risk to customers’ money as well as liability to the tax-payer if a bank should fail.

Key changes to the banking system:

1. Retail banking (mortgages, savings, credit cards and current accounts) will be kept seperate from far riskier investment banking (stocks and shares dealing). In addition to this the ICB have suggested:

• Banks are to put a “worst case scenario” plan into place that allows their retail banking to continue servicing the need of customers, even if the investment banking fails.

• Banks will have to set a limitation on the extent to which the retail section can bail out the investment side of the bank should it get into financial difficulty.

2. Banks are to make it a simpler process to switch bank accounts. Including:

• Introducing portable account numbers so that customers will not need to change direct debits and standing orders if they switch accounts.

• A seven day transfer period to be enforced to speed up the process of switching accounts from one bank to another.

3. Lending Criteria for financial products and services, such as personal loans, mortgages and credit cards should be make more flexible.

4. Larger banks such as Lloyds Banking Group should be made to sell off more retail branches as they currently provide up to 30% of all british current accounts. The ICB feel that this financial burden should be reduced.

It’s believed that, once the proposals have been scrutinised, the ICB will present their suggestions for banking reform to the British Government.

The final decision will lie with the Government to decide whether the benefits outweigh the risks to the tax-payers and whether further rules and restrictions will push the large banks off of British soil.

In spite of this it should be noted that the ICB began this investigation at the insistence of the Chancellor. This suggests that, if not all, then many of their recommendations are likely to be put in place.

Check out our great range of bank accounts to find the right one to suit your needs.

Rising Cost Of Food Impacts Consumer Spending

A recent report by the British Retail Consortium (BRC) has reported that food prices have started to creep back up again over the course of April, impacting our wallets and credit cards.

The report showed that the price of food in supermarkets increased by 1.2% between March and April, adding even more misery for cash-strapped customers and putting even more pressure on the Bank of England to drive-up the base interest rate.

The BRC have blamed the hike in price of food in shops on the cost of fresh fruit, dairy products, eggs and cooking oils.

In spite of food price inflation slowing in March due to retailers putting more special offers to attract cash-strapped consumers this appears to have had little to no affect on the longer-term implications. In fact it’s thought that this was one of the main reasons for the consumer price index falling by 0.4% in March from the previous month.

Economist with Barclays Capital, Chris Crowe, has suggested that the growing cost of food will help to push the CPI up by 0.2%.

The Bank of England’s Monetary Policy Committee are expected to announce whether it is to raise the base interest rate on Thursday from their record low of 0.5% in an attempt to curb the CPI, which is more than twice that of its 2% target.

The BRC director general, Stephen Robertson, suggested that retailers’ efforts to generate sales by heavily discounting goods over Easter “were key to holding back prices on non-food goods.”

Mr Robertson went on to add that “the upward pressures on food prices, which eased in March, bit back in April.” However, the consolation for consumers is that there is still a large number of offers to be had and the fact that 40% of the groceries being bought are on promotion clearly indicates that customers are still taking up those offers in a big way.

If you’re struggling with credit card debt check out our range of debt management guides on our blog or find a debt consolidation programme to suit your needs.

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