Women urged to steer clear of store cards
November 30, 2010
Christmas is fast approaching and many people will be heading to the shops to buy gifts for friends and loved ones, and get clothes to wear over the festive season. This is something that High Street retailers are prepared for, and many are now in the throes of pushing costly store cards onto unsuspecting shoppers who may not realise the pitfalls of using these cards to fund their purchases.
Many High Street retail giants have a big push on store cards at this time of year, when people are buying for themselves and for others. Sales staff in the shops are given incentives to sell these cards, and they will try to entice shoppers by offering on the spot discounts on purchases that they are making.
However, officials are warning women to steer clear of store cards to make purchases over the festive season, as these cards charge an astonishing rate of interest with some charging close to 30 percent. This means that consumers with debt of just £500 who pay the minimum amount required each month would spend over ten years repaying the debt and would pay over £500 in interest.
Figures have shown that three times more single women struggle with store card debt than single men, and although store cards are a very expensive form of borrowing there are still nearly 13 million cards in circulation with over £2 billion spent on them in the last year alone.
Tags: rate of interest, Retailing, High Street, clothes, amountOne financial expert said: ‘Customers who repay only the minimum amount on store cards could end up paying twice the price and still be repaying the debt in a decade’s time. Do not touch store cards unless you can afford to pay off the balance in full every month.’
Many plan to use credit cards for Christmas
November 19, 2010
With Christmas almost upon on many people are now making plans to start their Christmas shopping, with consumers planning to buy gifts, food, clothes, and other items that they see necessary for the festive season. However, the past year has been a tough one in terms of finances for many people, and a huge number of people will be planning to pay for Christmas by borrowing money.
Figures that were released recently have suggested that more than 50 percent of consumers are planning to use their credit cards to pay for Christmas. However, worryingly many of those planning to use credit cards to fund Christmas have not even finished paying off the debt that they accrued last year, which means that they will simply be adding to their debt.
The figures showed that 55 percent of consumers were planning to use their credit cards to pay for Christmas, and a further 3 percent said that they would be taking out a loan to pay for their Christmas purchases. However, 24 percent of consumers said that they do not want to get into debt, and will therefore pay for Christmas by using their savings.
The survey was carried out by ConsumerIntelligence.com. Officials said that the number of people planning to put Christmas on credit had shot up from the 14 percent seen doing this last year, 34 percent of whom are still trying to clear this debt.
Tags: christmas shopping, day, financial effects, money figures, huge number, substantial numberConsumerIntelligence MD, Ian Hughes, said: “Christmas is only one day in the year but the financial effects appear to last all year for a substantial number of adults. Around 14% of adults got into debt as a result of Christmas spending last year and many are still paying for that.”
Be Card Smart Online campaign launched
November 13, 2010
With Christmas now just around the corner a rising number of people will be getting their credit cards at the ready to make a range of purchases online. Shopping online has become extremely popular, and many people use the Internet to do most or all of their Christmas shopping because of the convenience, ease, flexibility, choice, and value for money that is offered.
However, whilst shopping online with your credit card offers all of these benefits it can also result in increased risk of fraud for those that are not careful and vigilant when using their credit cards online. Many people that do not exercise adequate caution when making credit card purchases online become the victims of credit card fraud, and this is something that industry officials are hoping to cut back on this year.
The UK Cards Association has now decided to try and help consumers to be more careful online, and has launched its Be Card Smart Online campaign, which is aimed at helping people to stay safer when using their cards online through the provision of sound advice. Amongst the advice that the UK Cards Association is offer as part of the campaign is for consumers to ensure that they check that website are secure with the padlock symbol, to make sure that their anti-virus software is up to date, and to make sure that they use their browser to access websites rather than linking through an email.
Tags: credit card, convenience, Christmas, Many people, corner, common sense adviceAn official from the UK Cards Association said: “Our Be Card Smart Online campaign has definitely played its part in driving down online fraud losses and we urge anyone planning to shop online this Christmas to remind themselves of our common sense advice.”
Brits more prepared when it comes to credit cards
November 12, 2010
It has been revealed in a recent report that there has been an increase in the number of people that have been searching for a 0 percent balance transfer deal. Credit reference agency Experian claims that in October the number of people searching on 0 percent balance transfer credit cards increased by more than 35 percent compared to the same month last year. Officials claims that this means that consumers are better prepared this year, and are not waiting around for the bills from Christmas spending to start rolling in when January comes around.
Experts have said that the fact that more people are searching for interest free balance transfer credit cards can be viewed in two ways, one good and one bad. On the upside it means that consumers are no longer willing to put up with high interest credit card debt, and are willing to prepare themselves for the expense of the Christmas period and do their best to avoid having to pay unnecessary interest on their borrowing.
However, on the other hand officials say that it could mean that consumers are simply planning to spend, spend, spend over the festive season regardless of whether they can afford it, and are hoping that by putting all of their credit card debt onto an interest free balance transfer card they can reduce the stress of borrowing money that they cannot really afford.
Those that are searching for a 0 percent balance transfer credit card will find a number of deals on the market, and will be able to find the most suitable card by comparing the various deals available. Looking for a longer interest free period will enable consumers to spread the transferred balance out more and reduce their payments.
Tags: high interest, balance transfer, interest free balance transfer credit cards, debt, festive season, rolling