How would a normal person know how much interest they are being charged? Normally, everyone would just check the APR, which is not the best way to find out you charges.
Banks have a way charging interest in so many different ways that it is seemingly impossible to work out how much you are being charged and how to compare different card as they all have their own strategies, which also makes the APR meaningless as reported on msn money by Chris Gilchrist.
The good news is that the credit card companies have been reported and investigated by the office of fair trading to regulate the way cards charge and advertise interest charges to their customers. With the lending business being scrutinized heavily by the trading standards for unjust charges, the business is coming under increasing competition and costing them vital profit revenue. Whilst investigations are still undergoing into the unjust charges levied by these companies for late payments, this new investigation has come as yet bigger blow for lending businesses. (more…)
Over 60? Looking for travel insurance? Read this first.
Considering taking out travel insurance? Well here are a few tips to avoid the pit falls travel insurers have set for you. If unknown, you could be paying up to twice the amount you planned. With offers for around ten pounds for one way insurance, you need to be extra careful to avoid these pitfalls, or it could cost you a hell of a lot more.
Are you over 65 or nearing 65? Well travel insurance is probably going to cost you more, as reported by Damian Clarkson of Everyinvestor, who has revealed an astonishing revelation of age discrimination for the over 65’s. You are most likely to pay more than double the premium compared to someone younger.
When asked by the Association of British Insurers to comment on the age factor, their communications manager argued that it was more likely for someone over the age of 65 to make a claim, compared to younger people, and also the amount of claim is normally three times that of an average claim. (more…)
There has been warning in the news recently to be careful of spending via credit card while traveling abroad. Even though paying with credit cards may seem to be the easiest and the most convenient option of paying for goods and services abroad, but you may be in for a surprise when you receive your bank statement.
It is alleged that bank charges levied to your account when spending abroad would cost you dearly. With high bank charges for handling foreign currencies and the high rates of currency exchange which work in the banks favor could have you considerably out of pocket.
You could be paying up to 3-5pc more than what would have bargained for. In survey carried out by Sophie Butler from The Telegraph, her findings were that Nationwide and The post office were the cheapest to use to spend abroad as they did not incur a foreign exchange charge to their customers. However, the exchange rate changes all the time and it would hard to predict how much it would cost to use your card abroad. (more…)
Recently, the government has announced private schemes where people in serious debt can get a chance to write off 75% of their debt and become debt free in 5 years. These schemes are private agreements entered into between yourself and your creditors.
This agreement is called an IVA, Individual Voluntary Agreement, this agreement stands for 5 years where your creditors enter into an agreement with you on a certain fixed monthly installed of between 150-250 pounds against your debt for five years. After which your credit history shall be cleared and your credit history restored. (more…)
In a report lately released in The Herald on the 21st of May, states there are signs that insurance for young drivers is set to soar. The report predicted that car insurance premiums are all set to rise over £3000 within the next 10 years for young aged drivers.
Due to the high increase in the number of collisions young drivers are involved in are between 17 and 21 year olds, have made the insurers to have an increase in the car insurance premiums of up to 92% in the last ten year, and this trends is seemingly likely to continue for the next ten years.
The overall average insurance for drivers between 17 and 21 is currently £984 whereas for someone older than 21 the average shoots down to approximately £409, and in the case of just young men in the 17 to 21 range, are been charged £1181. (more…)
With another quarter percent increase in the Bank of England interest rates, home owners are becoming stretched further than ever before for over four years. According to market analysts, the property market has boomed and remains lucrative after great speculation of a property crash and a sudden decline in the property market. But this has ye to be seen, as lending is still above average as reported by the banks quarterly reports.
But the latest increase in the interest may star to prove some of the skeptics correct as these are testing times for home owners. With another increase in the pipeline within the next three months, it doesn’t look promising. With growth in the property market on a decline, the property market has certainly cooled down, and does not look to rise until the interest rates make a downwards move. (more…)
The BBC reported yesterday that Llyods TSB are the first bank to win its case against unfair bank penalty charges. There has been a debate within the press and media to whether the charges imposed by banks for over drawing and, late payment were actually legal.
But in this case District judge Cooke from Birmingham courts ruled that these were legitimate penalty fees. However it has been mentioned that because the ruling was from a district judge it does not hold any binding with other courts such as the high court.
Many other claimants have been successful, only because banks settled out of court to avoid publicity or any costs. This trend may now change with this ruling yesterday. More banks may now, take a chance and face the judge with these types of claims.
Mr Berwick the claimant was annoyed at the judgement and has said he may appeal against the decision.
This may also prevent other potential claimants from going through the process, in the worry they may lose their case.
With Capital One now offering a credit card that will give you interest free on any transfers up until July 2008 and 3 months interest free on purchases, you wonder just how far credit card companies are prepared to go to get their piece of plastic in your hands.
There was a time when using your credit card to buy purchases was the most expensive way to go, now with a bit of planning and a few cards, you can transfer your balances to and fro to get lower rates than a traditional bank loan.
Of course most don’t do this, too busy to understand the savings, yet the convenience makes buying decisions very easy. The reality is that if most people were to take advantage of the interest free offers around, these competitive rates would probably drop off the shelf, which suggests it is those too busy to check their interest payments who are paying for those who swap and change to get the best deal.
Many see the monthly interest rate as an affordable charge, but when put into an annual statement, many would be surprised how much they could save a year, if a bit more time was put into the decision of what card to use when and when to transfer,
Even a £50 a month interest charge equates to £600 a year, enough for a package holiday for 2 to most places in Europe, your car insurance, home insurance or whatever else fits in with your lifestyle.
Be wise shop around, and take advantage to the offers available.
Written 16th May 2007
(more…)
It was reported in the Mail on Sunday (May 6th 2007) that the insurance arm of the RBS (Royal Bank Scotland) may be for sale and certain buyers were being “lined” up for this potential £8bn purchase.
It was reported that investment banks had approached a number of potential buyers, with a view of presenting a bid to the RBS. (more…)
The Times newspaper has reported that the Royal Institute of Chartered Surveyors was seeking a review of the new HIP pack the government wants to enforce.
The HIP pack stands for House Information pack and will cost home sellers something between £150 to £300 s an estimate, to present to potential home buyers. The HIP pack will include certain land searches and an energy performance certificate, to aid in the purchase of that property.
The Times stated that the RICS had only been given 8 weeks consultation instead of 12 and the thousands of assessors did not require a criminal record check. (more…)
