Consumers Under ‘Needless’ Financial Pressure
Topics: consumers, causing, financial, problems, for, themselves, organise, finances, loans, credit, debts, banking
Many Britons are putting themselves under unnecessary financial pressure, new research indicates.
In a study conducted by the Motley Fool, the typical consumer is reported to have about two or three credit cards, with a fifth of these borrowers carrying over 1,137 pounds in debt each month. The findings also revealed that some Britons are leaving as much as 3,000 pounds unpaid on their cards. However, the financial services firm indicated that many people are placing themselves in preventable monetary strain with their cards due to money “sitting idle” in current accounts and savings schemes.
According to the Motley Fool, the average person has some 870 pounds in their current account ready for a ‘rainy day’, in addition to saving 300 pounds per month. In turn such money could help borrowers not only pay off credit card debts but also make repayments on utility bills, carry out home improvements or service secured personal loan costs.
Overall, an outstanding credit card balance of 1,100 pounds is reported to charge 15 per cent in interest. Yet, withholding the same money in a competitive savings account earns just six per cent interest. Consequently, the total 31 million credit cardholders in Britain are reported as paying some 3 billion pounds per year in unnecessary interest charges. As a result, this is a figure which could well have an effect on their ability to meet demands on other areas of their finances such as utility bills and mortgages. In addition, avoiding needless credit card repayments could help many people make payments on loans.
David Kuo, head of personal finance for the Motley Fool, said: “We are often told to put aside money for a rainy day because having a ready source of funds for emergencies is a sensible thing to do - and it is. But it makes little sense to have a stash of money earning interest at six per cent a year when a pile of debt is burning a hole in our finances at 15 per cent annually. Saving money before you have paid off your debts is like trying to fill a bath without putting the plug in first. It’s a pointless exercise that results in a waste of water, an empty bath and hefty water bills.”
Meanwhile, about one in six people who regularly have between 400 pounds and 500 pounds of debt on their credit cards each month have some 3,000 pounds put away for emergencies. Overall, those between the ages of 34 and 41 are most likely to have both credit card debt and money invested into savings accounts. Such people are about 1,000 pounds in the red via the form of plastic borrowing, yet also have 750 pounds put away for the future.
However for those who still find that they are struggling with managing their finances, applying for a loan to consolidate debts may be recommended. Such a low-cost loan could allow borrowers to pay off debts across a number of credit cards quickly, leaving them with a single monthly repayment. Taking out this type of loan could be advisable for many Britons after research conducted by Thomas Charles earlier this year showed that 8.2 million consumers have “serious” difficulties in managing their finances. Out of such people, about 2.1 million claim to be struggling paying back borrowing commitments such as plastic cards, secured loans and overdrafts.
Mark Dawson writes for the Loan Arrangers. Where visitors can compare loans online, and apply for the best rate UK secured loans and the cheapest debt consolidation loans available to them. Visit today www.loan-arrangers.co.uk
Previous Articles Highlighter:
How Do You Prevent Being Scammed On A Auto Loan (1)
Then you can take a check from the bank to cover the cost of the car without paying their sky high interest rates. Another scam that frequently occurs is when you trade in your old car that you still are making payments for.
Getting Adequate Financial Advice Is 'Vital' (2)
Features deemed to be of less importance include a firm handshake, a smart suit and a university degree. Commenting on the study, Tim Hague, managing director of mortgages for Birmingham Midshires, claimed that it is crucial that consumers seek out adequate financial guidance which is suitable for their needs.
How To Profit From Mobile Park Homes (3)
Mobile home parks are very popular these days. By picking up a park or some land, you can rent the space for owners to park their mobile homes. If you have a mobile home park, your tenants tend to be more secure because they can't legally move their home out of the park until it is paid for.
Modified Internal Rate Of Return For Larger Profits (4)
This is the figure that will determine how profitable an investment could be, and will ultimately decide whether you invest or not. The modified internal rate of return is the same concept as the internal rate of return.
How To Use A Business Credit Card (5)
Personal credit cards also carry several programs but these are most often designed for vacations or consumer type discounts. Business cards, on the other hand, will often promote discounts that are specifically designed to help business owners.
Best New Places To Live In Texas - The Master-Planned Community (6)
These communities differ from ordinary subdivisions in several important ways. Subdivisions are groups of houses, usually completed by one developer. Within a subdivision, the houses are built and sold first with the hope that the houses will attract businesses, recreational facilities and all the other features and amenities that are involved in establishing a community.
How To Use A One Time Credit Card (7)
In other words, the one time card can act as a buffer or filter between your regular card information and the information that you use for an online purchase. It is a very good to protect yourself.
What Is A Zero Percent Auto Loan? (8)
Also make sure that your loan payments are within your budget. Court helps people to learn about private student loans. You can read more of his work by visiting: whalehookloans.com.
Bad Credit Increases Insurance Cost (9)
Always keep your oldest credit card open. All insurers prefer to work with people who have well-established and long standing lines of credit. You may not know it, but sending in credit card applications can actually lower your score.
Are Bonds Really Risk Free? (10)
The reason why the current and future level of interest rates are important for bonds is because as interest rates go up, bond prices go down, and vice versa. If you are able to hold a bond until maturity, then interest rate movements do not really matter, because you will redeem the principal upon maturity.
The Benefits Of Life Insurance (11)
You may not have an individual agent assigned to your policy. If that is the case, call the customer service center for the insurance company, and they will be able to answer any questions you might have.
What Is Umbrella Insurance? (12)
More often than not, people are sued and have no extra protection to block the plaintiff from going after their personal assets in the lawsuit. To protect yourself from such a quandary, you need to have umbrella insurance.
What Is Your Investment Risk Tolerance? (13)
Besides, Social Security does not even pay enough to help senior citizens live comfortably. So, you need to invest your money wisely, perhaps aggressively, in order to grow your portfolio to a level that will adequately support you after you retire, and you need to start while you are still young.
Different Mortgage Types Match Your Finance Needs (14)
There are two variables to consider - mortgage type, and interest rates. These are the most important considerations when deciding on real estate, so it is essential that you have a basic understanding of what they are.
Making Your Own Investment Decisions (15)
If the earnings are growing significantly each year, then the price of the stock will rise accordingly. Since earnings growth is the real impetus behind an increase in the price of a stock, the PEG is probably the best tool for evaluating whether the stock has hit the wall or will continue to increase.
Tips So Taxi Driver Accounts Do Not Have To Be Taxing (16)
You may not claim mileage allowance and vehicle running costs. Should you choose to claim the mileage allowance then keep good records of mileage covered, purpose of journey. The DIY Accounting taxi accounting software automates this mileage allowance calculation.
Call Capture Marketing - 3 Tips For Success (17)
Topics: call capture marketing, real estate ad hotline The number of real estate agents using call capture systems continues to grow. Agents are seeing the benefits of its power to generate leads, track their advertising, and increase their efficiency.
The Stock Replacement Covered Call Strategy (18)
Topics: options trading, options trading strategies, stock options trading, stock trading Back in 2003, (October and November '03), the giant biotech Amgen (AMGN) came under some intense pressure, trading down about $12.00 before it found what appeared to be a decent level of support, and began to consolidate.
Investment Property Mortgage Loan Basics (19)
A commercial loan is needed when you are getting more than a handful of rental units, or an investment that supplies business needs like a warehouse, office or store. You can expect to pay back your loan through the money the business or businesses generate.
Top Self Employed Tax Questions That Save Money (20)
Vehicle running costs, and capital allowances on vehicles, are split between claimable costs and a disallowed cost depending on the proportion the vehicle is used for business and personal use.
Newer Articles Highlighter:
Residential Investment Property Loans - Crunching Numbers (1)
These are the Debt Coverage Ratio (DCR), the Loan-To-Value Ratio (LTV) and the Debt Ratio. You might also see the "Debt Coverage Ratio" as the "Debt Service Coverage Ratio," or DSCR, to add a little more to our alphabet soup!
Real Estate For Sale - Find Your Agent (2)
If there is a team, find out what each person is responsible for. It won't help to get confused or lost in the shuffle of forms, paperwork and finances.
Millions Of Homeowners To 'Suffer' Financially (3)
As many may not be able to absorb any increases in costs, we could see literally millions of people really start to suffer financially." Pointing to a "worst case scenario", Mr Clark suggested if homeowners are struggling to manage with an increase in mortgage costs they could well get into arrears, while they may also develop difficulties in making payments on other areas such as secured loans and credit cards, leading to their property being repossessed.
Lessening The Credit Crunch For Consumers (4)
On the front lines of the mortgage business, we are seeing the impact first-hand. 3) Raising FHA loan limits - Today the FHA won't insure loans above $362,790 for single-family homes, and even less in lower-cost areas.
Residential Investment Properties As Alternative Income (5)
The next major step is getting financed. Most people looking to invest in a rental property don't have the ready cash for a down payment. There are a multitude of means you can pursue to get financing.
Your Stock Trading Rules (6)
Topics: stock trading, stock rules, stock market One of the hardest things about stock trading is self-discipline. You have a set of rules you use for trading, whether you realize it or not.
Loan Options When Buying A Car (7)
On the other side banks are easier to work with and you have the convenience of having a car payment that you can pay locally. Get an Online Finance Auto Loan: This can be scary especially for those that are unfamiliar with an online loan.
Commercial Property Market Value Directs Investments (8)
Selling or managing commercial property can be a tricky business. Calculating your commercial property market values can be a difficult task. Consult KISCL for software that makes the process easier.
Zero-percent Car Financing - Fact Or Fiction? (9)
This method is recommended for car buyers with all types of credit ratings. It can certainly help people with poor credit ratings secure the loans that they need, but buyers with good credit can benefit from them as well.
The Property Business Is A Business Of Relationships (10)
Whenever I am looking for someone to join my team, I will always try to find someone based on referrals. I will ask family and friends if they know of anyone that could me help with my business.
Modified Internal Rate Of Return: Predicting Your Investment Profits (11)
The first step for any real estate investor is to pay back the property loans that funded the project in the first place. Very few people can start a career in real estate investment without first taking out a hefty loan, and you won't see the profits until afterward.
Winning The Game To Financial Freedom (12)
Round 8 repeats the process of tracking your expenses and rebalancing your investments. The market is changing all the time. The risks you were concerned about before may be different now.
Jumbo Mortgages VS. Regular Mortgages (13)
They will always know what their interest rate will be and give them security knowing that it will never raise on their mortgage. A jumbo mortgage is great for those buyers who are purchasing a home that costs more then the average home.
Investor Financing In This Crazy Real Estate Market (14)
35-45% is required for down payment. 4. Foreign Nationals: This is hot category because of the weak US dollar. Foreign investors can buy property at an immediate discount when they use Euros or the Canadian Dollar.
Getting Legal With Your Realtor (15)
Remember, the Realtor has a great deal of experience when it comes to negotiations, so it is in your best interest to put these skills to use. In addition to negotiating the price of the property, the Realtor can also negotiate factors such as: - The type of financing terms used to purchase the home - When you can take possession of the home - What repairs will and will not be made to the home before closing the deal - What furnishings or equipment will be left in the home and included in the negotiated price After these negotiations are complete, a purchase agreement can be created and you can move on to the next step of the buying process.
Do I Have To Pay My Mortgage With Closing Cost? (16)
-Private mortgage insurance A lot of lenders ask that you have insurance in case you default on your loan. This insurance is usually one-half of one percent of the cost of the mortgage.
Business And Banking: A Partnership Forged In Success (17)
It is important to identify how each of these aspects will affect your choice of business account as it could be the making or the breaking of your business. Remember that the offers bandied about by the banks may entice you and be extremely helpful for the first eighteen months, it is easy to get caught up with the offers and neglect how the bank's rates will affect you long term.
How To Finance A Spanish Property (18)
There are a number of companies such as procoal that will help you through the process. It is a good idea to make some preliminary enquiries before looking at properties so that you are aware of how much you can borrow and what you can afford.
Remortgaging When Your Credit Score Is Poor (19)
This is usually done with the help of a professional appraiser. You will then need to complete a loan application and supply it with your personal and financial details, including the amount you initially intend to borrow, the duration of time needed for your mortgage, and your current financial status.
Make The Time To Balance Your Checking Account (20)
Topics: current accounts, savings accounts, saving, uk, bonds, childrens, isa Having a checking account is a great way to keep track of your money and pay bills. Most Americans have a checking account, but many of these same people do not know how to balance their account.