MoneyEverything

What a bunch of Bankers

Tue, 12 Aug 2008 09:50:00 --0100

Another rate cut from the Bank of England indicates the extent of the problems that the UK is suffering from at the moment. The lowest rate in 57 years could even be seen as a desperate attempt to inject life back into the economy to help bring it back from the brink. Despite other measures introduced like raising the stamp duty threshold and the more recent reduction in VAT (both short sighted and ineffective measures that demonstrate once again how out of touch the current Government is with the 'man on the street') this could really help. Without exploring all the reason as to why, one of the most important things that needs to happen is boosting consumer confidence. As that happens and the population feels more comfortable spending their money the economy will start to right itself. All good news really, except for one thing - the banks. They are not all guilty of this but to not pass on the interest rate cuts, in whole, to their customers gives an insight to the greed, endemic to the banking culture that contributed to the mess the world economy finds itself in. This the BBC ran a story 'Banks face pressure on rate cut' on Friday (05/12/2008) in which Shane O'Riordain, of HBOS defends this policy saying: "I think it is worth remembering the government has said it expects our bank to be run on commercial lines, and that's exactly what we're doing. "All we are simply doing is seeking to achieve a decent margin like any other business, nothing more and nothing less." Well let's look at that. Yes, the Government has said that it should be run along commercial lines but that doesn't mean making as much as possible from customers who are facing some of the toughest times they can remember. And, if truly following Government advice, HBOS have also been told to 'pass the cut on' but for some strange reason that bit of advice doesn't apply. There's also nothing "simple" about it. Every business needs to make a "decent margin", that's a fair point. The trouble is a huge number are struggling to make any margin at all and are trying everything they can think of to attract custom to keep them solvent. The banks though, having made monumental mistakes driven by greed, seem to think that rather than shouldering their part of the blame and acting responsibly it's an opportunity to maximise profitability at the expense of their customers. No one is arguing that the banks should not operate as businesses and turn a profit but no one likes to feel that they are being held over a barrel which is what is happening. Ultimately the blame lies with the banking institutions. It is wrong that in these changing times, short sighted leadership and greed is driving decisions that are solely focussed on rebuilding cash reserves rather than the future of this country. The who's who of rate cuts

Northern Rock In the News

Mon, 21 Jan 2008 08:49:00 --0100

Once again Northern Rock hits the headlines with proposed way forward for the struggling bank. Rather than a complete nationalisation by the government it looks like there will be a combination of that and privatisation. The existing debt will be converted to government bond and sold of in smaller parts over a five year period which effectively splits the risk between private shareholders and the government.

Free cash - if you play your cards right

Fri, 12 Oct 2007 22:56:00 --0100

'Free cash - if you play your cards right' is the catching headline of an article on FT.com this week exploring the benefits of cash back credit cards.

The article explains how while a cash back card can seem like an opportunity to pocket a few extra quid, a 0 per cent purchase card can offer higher financial rewards.

The idea is that by making your purchases on a 0% card and only making the minimum payment, the remaining payment can be invested in a high interest saving account which will, in turn, earn more than could be achieved with cachback deals.

While it's an interesting proposal, it would require a far greater degree of self discipline to save the money than it would to simply make use of the benefits offered by the cash back cards. A worthwhile read though if you have confidence in your financial management skills and want to make a buck or two out of the credit card companies!

Personal loan, mortgages and saving rates are on the up

Wed, 10 Oct 2007 22:52:00 --0100

The FT reports personal loan, mortgages and saving rates are now moving independently of the Bank of England base rate.

This means, despite the Bank of England holding the base rate at 5.75%, rates that are usually tied to this figure are still changing. Many lenders have increased interest repayment rates on personal loans and mortgages while decreasing rates paid on savings accounts.

Holding the base rate indicates the Bank of England have yet to see enough evidence of change to make adjustments but the lenders independent actions show their concern over the current state of the market. In the wake of the Northern Rock troubles it's hardly a surprising reaction.

While the changes certainly aren't in the customers favour, the held base rate is a good indication of the Bank of England's confidence in the economy.

Credit card charges slammed again

Wed, 29 Aug 2007 13:07:00 --0100

Consumer interest publication Which published today a scathing report on credit card charges.

The report shows how, following last years Office of Fair Trading (OFT) ruling that credit card companies must cut their penalty fees to a £12 maximum, the companies are recouping their losses by introducing new charges and raising existing ones. Given the nature of these companies and their need to continually increase profits, it's unlikely the OFT ruling has had an impact on their financial well being or that of the consumer.

The report highlights trends in annual, low usage and balance transfer fees amongst other charges. The BBC summary includes information on changes made by the leading high street names HBOS, LLoyds TSB and Barclaycard.

Like any business, the credit card companies objective is to make a profit which is why choosing the right card is so important. The same deal that was attractive a few months ago may no longer be the best option.

Barclaycard Launches Breathe

Tue, 03 Jul 2007 15:12:00 --0100

Barclaycard launched it's much talked about 'Breathe' credit card this week. They have committed to donating half their profits generated by the card to climate change solutions The launch follows a series of high profile campaigns by some of the leading financial institutions looking to boost their 'green credentials'. Many of these initiatives have been openly criticised as 'jumping on the green band wagon' but is this really a bad thing? Sure, profits are generated by people building a balance on their credit cards which they pay interest on and those who pay their balance every month will not be making the green contribution but as we all know, credit card companies are ALL very profitable and the more there is available to address climate change the better. After all it's usually the consumer who ends up paying for solutions - either themselves or through additional taxation and in a funny way they still are using this card but they could very easily use a different credit card which did nothing towards helping climate change. It may not be the cheapest credit card to run (currently charging 14.9% on purchases) and even if it is using climate change as it's hook to lure consumers it's still a great idea and means that inadvertently you're still doing your bit.

Secured Loans Repayments Suffer as Interest Rates Continue to Rise

Thu, 21 Jun 2007 09:41:00 --0100

As interest rates continue to rise the inevitable seems to be happening. UK consumers who have borrowed unwisely without planning for change in their financial circumstances at starting to find it difficult to meet their monthly secured loan repayments. Recent research has shown that more that 7,700 loan repayments are being missed every day and the most recent round of interest rate rises start to bite. This means that in the last 6 months a staggering 1.4 million repayments have been missed and the pressure is set to continue as economists predict another .5% increase by the end of 2007 taking the base rate from 5.5% to 6%. Unfortunately it seems that many consumers are adopting the Ostrich approach and choosing to bury their heads in the sand. Being faced with a stark choice of trying to make mortgage payments or loan repayments is not pleasant but ignoring the problem won't help and consumers should contact their lenders to discuss repayment options rather than face potentially damaging and costly court appearances. With some excellent rates available for secured loans, currently around 6.5%, lenders are usually willing to help. After all, it's in their interest to ensure you can keep making the payments so they can recover the value of the loan they have made. Your house maybe secured against the loan but this is a last resort for lenders and it's far more cost effective for them to recover the secured loans through you rather than incur additional costs via property repossession.

Fixed Rate Mortgages Becoming More Popular

Thu, 31 May 2007 09:34:00 --0100

Research from the mortgage trust has shown that more people are opting to take out fixed rate mortgages. It's likely this is in response to the 5 interest rate rises imposed by the Bank of England so far this year. Landlords who are investors who usually understand the financial risks associated with borrowing seem to be among the growing numbers of fixed rate mortgage applicants. More often than not landlords are opting for short term deals 2 to 3 year deals to protect their financial positions. John Heron commented: "Our research also shows that an even higher proportion of landlords have been taking out fixed-rate loans. 78% of landlords have been opting for fixed-rate mortgages in recent months." He continued: "Landlords clearly have their doubts about short term interest rates, with most expecting a further increase. However, their long term expectations are more optimistic, with the majority of landlords looking to benefit from improved variable rates in two years' time. Most landlords are astute investors and will position themselves appropriately to ride out any potential disruptions in the financial market." It will be interesting to see how the market changes with the next round of interest rate rises imminent. More fixed term deals are likely to be on offer increasing competition and choice.

Britons spend over £150,000 on credit cards

Tue, 22 May 2007 16:00:00 --0100

Life assistance company CCP has discovered that over the course of a typical UK resident's life, they could spend over £150,000 on credit cards. It's estimated that the total combined amount that UK consumers will spend over their lifetimes on credit cards will top 5.25 trillion GBP which means a typical consumer will happily spend £157,530. There's some interesting trends within the data which shows on average people spend £3540 on nice things like holidays, cars, clothes, shopping using their credit cards. However, the figures also revealed that people use their cards for everyday purchases like lunch, petrol and food which also adds weight to the introduction of contactless credit card technology. "The results of this survey show how popular paying by credit card has become and that people now rely on their flexible friends to fund everyday life," explained Zoe Manton, head of card protection at the firm. Additional data published by the charity Credit Action has also revealed the 32% of people in the UK lie to their partners about how much they spend on their plastic, even though the British Bankers Association (BBA) has reported that borrowing on credit cards has fallen nationally by 0.1 billion GBP during March.

Contactless credit card technology

Wed, 16 May 2007 19:44:00 --0100

The UK banking industry has confirmed that from September this year they will be introducing a new type of credit card technology called contactless cards. The system is extremely easy to use and means that for all credit card purchases under 10GBP, card holder will only need to hold their cards up to a secure scanner to pay for the items. It offers a flexible alternative to cash building on the same secure chip and PIN technology.The new technology will be recognised by the ripple symbol. Although contactless technology means that credit card holders will not be required to input their pin number from time to time, users will be asked to input their pin number to verify authenticity. The launch will be focussed around on London (EC2, EC3, EC4, E1, E14, SE1, SE16). After the initial launch the upgrade will be introduced across London, followed by a gradual national upgrade in 2008. Initially the following organisations are expected to participate with all major card issuers to follow.

Bank of Scotland
Barclaycard
Citi
Euroconex Technologies Ltd
Halifax
HSBC
Lloyds TSB
The Royal Bank of Scotland Group

This is a global scheme that has already been introduced to the USA and many other countries across the world, making it easy to use your credit cards where ever you are. It's estimated that by the end of 2008 over 5 million contactless cards will have been issued being accepted at over 100,000 merchants in the UK.

Why you should plan for debt

Tue, 15 May 2007 10:36:00 --0100

UK residents seem to be the subject of more criticism when it comes to borrowing money. Borrowing money, like anything, can get you into trouble if you take an unrealistic approach to it. If you are sensible and plan ahead for unforeseen circumstances like an unexpected drop in your income or Bank of England interest rate hikes then you should be able to cover yourself against the debt tidal wave that effects so many. One of the more common types of borrowing that can cause problems without planning are secured loans. These are relatively easy to be approved for but a great number of people will choose to opt out of repayment insurance to keep monthly repayments low, but what if you become ill can no longer make those repayments on the secured loan? It maybe that you've already got some kind of income protection insurance in place but it's worth checking what it cover before committing to the loan. Similarly, you can fix the interest rate at which you borrow. By fixing the interest rate you may find that your monthly repayments are slightly higher but whatever effect inflation or monetary policy has on secured loans interest rates you know what you will be paying each month without any surprises, avoiding the risk of crippling debt. Of course the down side of fixing the rate is that if they go down, you don't see the benefit but if you've decided what you can afford to pay in the first place then don't let it concern you and be happy that you're not going to be caught out.

Apply for a business credit card

Thu, 15 Mar 2007 09:01:00 --0100

A business credit card is a versatile financial tool that you can use for your company to make payments instead of using cheques or cash, for a better financial management. In this article we discuss the advantages and the protections given by a business credit card, and the differences between a normal personal credit card and a business credit card. You can apply for a business credit card in two ways: you can seek for a charge card or for a credit card. You can charge your business purchases with both, but there is a main difference between them. A credit card allows you to pay your expenses in instalments, while the charge card must be regularly repaid in full every month. There are several offers on business credit cards in UK, each one reviewed and fully described on our website for your convenience. We update our website regularly to have a constant and complete overview on market offers. Each issuer offer different business credit cards, that you need to know if you want to make the best choice for your needs. With a business credit card you can track expenses made by your employees and have a better point of view on your outcomes. Moreover, business credit cards are easier to obtain than a normal line of credit, and it is easier for your employees to split personal and business expenses. You can track your expenses online with the majority of credit card issuers and this is a main advantage of using a business credit card rather than cheques. Furthermore several benefits are associated with business credit cards, such as discounts, special offers and insurances, all products that are strictly related to business travels thus resulting in productive advantages. To know more about business credit cards and submit your online application visit our website at www.moneyeverything.com .

Credit cards benefits

Wed, 14 Mar 2007 15:04:00 --0100

Benefits of using credit cards are simple: you can rent a car when you are in holiday, you can face minor emergencies when in need of money, and much more. In fact, you can take advantage of all the benefits offered by credit cards such as rewards and travel insurances. Moreover, you are able to make purchases on the Internet without having to use cheques or wait for a bank transfer to be processed. Further benefits are fraud protection, and that you can save money on purchases using cashback credit cards, for instance. Usually a credit card hasn't got all the possible benefits: you can choose between credit cards with a low interest (balance transfer credit cards), or reward credit cards. It depends on how you use them and if you prefer to pay your monthly balance in full or making monthly instalments. Low interest rates are important if you want to pay with monthly instalments, since it means to save money, but this is important only if you want to carry a balance. Otherwise if you are looking to have part of your cash back or for special discounts then other kinds of credit cards are available in the UK market. Furthermore there are reward credit cards that let you to collect points and spend them in goodies such as free flight, free hotel accommodations and much more. However such cards usually feature higher interest rates thus you should use them only if you are willing to pay your monthly balance in full. To better know the characteristics of each credit card and make the right choice, by submitting your online application, you can check out our website at www.moneyeverything.com . Submitting your application online is the fastest way to have it processed and approved, moreover you are able to compare many credit cards offer and stay up to date with promotions and special offers in UK.

Adverse credit secured loans

Mon, 12 Mar 2007 14:00:00 --0100

If your application for an unsecured loan was rejected because of your low credit score, you still have a chance to have the money you need with an adverse credit secured loan. A secured loan is a form of loan that you can obtain if you provide a guarantee for repayment, that is a property that you secure against the loan. When you apply for a secured loan, credit history weight is sensibly lower thus you may be able to obtain the loan you need. In fact, the lender face less risk in providing you the cash since he can sell your property in case of payment default. Moreover, a lower risk means a lower interest rate that you need to pay: thus you will have a cheaper loan as result. You can find many lenders willing to offer you adverse secured loans: they know that you had problems in the past but that now you can make regular repayments, although you had C.C.J.'s in the past. The most common secured loan is the homeowner loan, that you obtain by providing your home as security for the loan. By applying for a homeowner loan you can borrow an higher amount of money than unsecured loans, as said with a lower interest rate. Even if you have an adverse credit score! You can compare loan terms and conditions by checking out our website at www.moneyeverything.com , in which loan offers are compared so to give you the best deal and value for your money. You can obtain quotes from several lenders, and make a wise choice submitting your application online. You don't need to tell the lender what will be the use you will make of the money: you are free to spend the money you borrow in any legal way, so for any need you have a powerful mean to face prompt expenses.

Homeowner loans for your home needs

Thu, 08 Mar 2007 11:05:00 --0100

Although you may have your own home already, you may want to change it or to buy a new home for you or for your sons. Home maintenance is important as well thus sometimes you may need to make repair works, that need money to be executed. Repairs are usually not foreseen, so you may run out of budget and need money, now. Thanks to homeowner loans you have the means to face such expenses and make your home a better place. Applying for a homeowner loan is straightforward. All you need to have is a good credit score, and to use your property as a guarantee for the loan. If you need to compare homeowner loans offers in UK, then moneyeverything.com is the right website for you. In our website loan offers are reviewed for a better understanding from you, even if you don't have a degree in economics. Homeowner loans can be used for any legal purpose. You don't need to justify the reason for which you take the money. You can use it for investment, to purchase a new home or to refurbish your existing home. It is up to you and noone will ask you the reason why you apply for a homeowner loan. You can even pay medical bills with a homeowner loan. Being a secured loan, interest rate will be lower than the ones that you would have applying for an unsecured loan: moreover the maximum amount you can borrow is sensibly higher and you have better terms in your loan contract. Usually you can take from £5000 to £75000, using your property as guarantee, to be repaid in a period of 5 to 25 years. Even if you have payment defaults or you are self-employed, you can look for a good homeowner loan offer checking out our website.