Chip and PIN celebrated on Valentine’s Day
February 16, 2011
February 14th 2011 was St Valentine’s Day, with many couples celebrating the occasion with romantic outings and gifts. However, there was also another celebration going on this year – it was the five year anniversary of Chip and PIN technology, which was celebrated by the credit card industry.
It was February 14th 2006 when the official changeover to the secure Ship and PIN system took place in the UK, and now there are over 140 million credit and debit cards using this technology in the UK. It is thought that Chip and PIN technology has helped to reduce credit card and debit card fraud, providing consumers with a convenient, simple, and more secure way of making plastic card transactions.
The UK is said to be the first place to roll out the global version of this technology, and these days many people use the Chip and PIN technology to make all sorts or purchases. The roll out of the technology in other countries, which is now increasing, has also helped to cut down on debit card and credit card fraud for UK consumers using their cards abroad according to the UK Cards Association. This is very comforting for people given the concerns that many have about becoming victims of this sort of crime.
Tags: #anniversary, Cards, global version, Technology, #chipandpin, #creditcardsOne industry official said: “The UK was the first country in the world to fully rollout this global version of chip and pin, demonstrating our commitment to embrace innovation for the benefit of our customers. Five years on and cards continue to be an increasingly popular way to pay, whether at home or abroad, which is no surprise given the fact that they allow us to pay for things safely, easily and conveniently.”
Credit card rates soar despite base rate
February 8, 2011
For nearly two years the base interest rate in the UK has stood at just 0.5 percent, which is the lowest level it has ever been at in the history of the Bank of England, which spans over three centuries. However, throughout the period over which the base rate was falling credit card interest rates continued to increase.
At present the base rate still stands at 0.5 percent. However, despite this credit card interest rates have continued to soar, with the average credit card interest rate now coming in at a whopping 18.9 percent. This is thirty five times higher than the Bank of England base rate and is the highest it has been in thirteen years. Some officials believe that this stems from providers being cautious due to the increased risk of bad debt because of job losses and the state of the economy.
Credit card providers that are offering lower rate deals are becoming increasingly cautious over who they offer these deals to, which means that the majority of consumers have reduced choice when it comes to finding a credit card. This means that many end up having to go for the higher rate cards, and with interest rates going up and up this can equate to a huge amount of debt and interest.
Tags: Rates (tax), debt, credit card, customer base, bank of englandOne official said: “During the financial crisis many credit card companies assessed their existing customer base and many customers have seen large increases in the rate they are charged. Customers who would previously have switched to another provider are now finding it’s not so easy to do so. Competitive deals for balance transfers and introductory purchases remain on offer but card providers are selective over exactly who they select for these deals.”
January debts lead to missed bills
February 2, 2011
It has been reported that many people have been missing important bill payments in the month of January, as they struggle to make payments on their higher than usual January debts. Over the Christmas and New Year period many people turned to finance such as their credit cards in order to fund purchases that they were making over the festive season. This has now resulted in the financial hangover that comes along every January, where consumers have to deal with the headache of starting repayments on their debt.
For many people the arrival of their credit card statements has resulted in them having to juggle their finances in order to budget for the repayment. Many have not had the disposable income to do this without making cutbacks elsewhere, and in some cases this has meant having to reduce the payments that they are paying on their bills.
According to some officials many households are in such a mess with their debt repayments following the costly festive season that they are having to miss bill payments and cut back on buying basic essentials. Many of the people that find themselves in this situation may end up seeking financial advice about their debts, as they realise how difficult it has become to cope with both debts and bill payments. An official from the Debt Advice Foundation said that January was not a time of year when people borrowed money in order to pay essential bills, and in fact it was quite the reverse.
Tags: Card, bill payments, credit, basic essentials, Finance, MoneyHe said: “It’s really the other way around, the debt tends to be racked up in November and December when people borrow money using credit cards, store cards, overdrafts and personal loans, to pay for a Christmas they can’t really afford.”
Millions set to increase credit card spending
February 1, 2011
It has been claimed that millions of people could increase their credit card spending over the course of this year. Figures have been released as part of the Consumer Credit Report from the Post Office, and the data suggests that around 2.4 million people could be putting more on their credit cards this year.
The figures also suggested that for around 52 percent of credit card users in the UK the level of spending would remain the same this year as it was last year. Research was carried out to determine consumer intentions with regards to credit card spending for 2011. The figures showed that in around 17 percent of cases consumers were expecting to increase their credit card spending by around £200 a month.
A further 32 percent of those that were polled said that their credit card spending was likely to increase by around £100 a month. Many people struggled last year in terms of their finances, and ended up having to turn to credit cards and other forms of finance to fund their spending. Officials believe that this year is set to be as difficult if not more difficult for many households, and this could contribute to the increase in spending on credit cards. For many, this could lead to spiralling levels of debt, and could result in some people being pushed over the edge financially because they cannot afford the repayments on their credit card debt.
Tags: consumers, Many people, households, long wait, official, Personal financeAn official from the Post Office said: “January has been a tight month for many of us, especially with the long wait until pay day, and we can see that many people are falling back on credit cards to ease the costs of day to day living.”