Prevent missed and late payments on credit cards
March 29, 2011
There are many people these days that use their credit cards to make payments for all sorts of things, from one off payments and to buy luxury items through to funding every day purchases and even paying bills with their credit cards. Whilst some people tend to repay the balance on their credit cards in full each month, which enables them to avoid interest payments, there are also those that spread the repayments over a period of time, which means that they have to make smaller, monthly repayments on the amount that they owe on the card.
However, for one reason or another there are many people that mess up with their monthly repayments. Some make the payment late inadvertently whereas others sometimes forget to make the payment at all. In both cases this can results in fees and charges being applied by the credit card provider, which can bump up the amount owed on the card. In addition to this it can result in the cardholder’s credit file and credit score being adversely affected because the provider logs the fact that payment was made late or missed altogether.
With today’s busy pace of life many miss or make late payments because they simply forget to make the payment on or before the date required. There are others who do make a payment but fail to meet the minimum repayments because they do not realise how much they need to pay.
According to officials there is one way around this and that is to set up a direct debit to make repayments on the credit card. Doing this can help people to avoid missed or late payments and will ensure that each month at least the minimum repayment is met. This will help consumers to avoid the various charges that are applied by credit card providers and help to ensure that they keep their credit file in check.
Tags: score, mastercard, consumers, cardholder’s credit file, credit score, creditOne fifth of singles use credit cards and loans to fund lifestyle
March 22, 2011
Credit cards can come in useful for many things, from paying for everyday goods and then repaying the balance in order to earn rewards to providing a financial lifeline in the event of emergencies. However, it seems that there are many people that are determined to get themselves into debt on their credit cards simply to fund a certain lifestyle according to reports, with research showing that one fifth of single people regularly use their credit cards as well as loans to fund a lavish lifestyle.
The survey was carried out by Bright Grey and showed that one in five people living alone were using credit cards and loans to fund their lifestyles. Another one in six people living alone said that they were using their overdraft facility in order to keep up a particular lifestyle. In total around 17 percent of single people living alone said that they regularly overspent each month. Out of these 25 percent said that they overspent because they were paying out money to maintain an enjoyable lifestyle.
The average monthly take home pay for someone that lived alone was £1267 but singles have been saying that they need around 25 percent more than this to maintain their lifestyles, which would equate to an average £1594. The survey results showed that 35 percent of those polled felt that they had to spend money whilst 24 percent said that they did it because they enjoyed it.
Tags: useful, average salary, particular lifestyle, debt, emergencies, Credit historyA spokesperson for Bright Grey said: ‘There is a real concern that, for many people, high mortgage and rental prices can mean that spending choices are limited. Yet more worryingly, it seems that the average salary is far too short for some, who just can’t help but overspend in order to maintain their existing lifestyle.’
Card debt to continue this year
March 3, 2011
Over the course of this year many people will continue to experience the misery of credit card debt hanging over them according to a study carried out by the comparison site gocompare.com. Many people are struggling with credit card debt, having become more reliant on these cards over the past few years because of the global financial crisis and the recession.
Officials have said that many people that will be carrying credit card debt over the course of this year will still be paying off the debt that they accrued over the Christmas period in 2010. It is thought that around 22 percent of credit card holders will be carrying debt over the course of this year, and 7 percent will carry debt accrued last Christmas past June of this year.
The level of credit card debt in the country now stands at around £61 billion, with many people finding it difficult to repay high levels of credit card debt. There are also 10 percent of credit card users that have never changed their credit card provider according to research. Separate reports have shown that around 10 percent of Brits are in the red with their overdraft, and this is especially true of those aged between twenty and twenty nine.
For those that are struggling with their credit card debt it is advisable to switch the debt to a low interest or interest free credit card. This can help to reduce the amount of interest paid on the debt and increase the speed with which it is repaid.
Tags: way, level, free credit card, comparison site gocompare.com, com, high interest rateOne official said: “Transferring a balance from a card with a high interest rate could be an excellent way to kick start getting rid of your credit card debt for good.”
Barclay’s buying a different kind of egg this Easter
March 2, 2011
Whilst many people will be busy buying Easter eggs for friends and family over the Easter period the banking giant Barclay’s will be after a very different kind of egg – or more than a million of them to be more precise. It has been announced that the financial giant is set to buy the accounts of more than one million Egg credit card customers from the Internet banking giant Egg, which is part of Citigroup.
It is hoped that the deal will be completed within the first half of the year if regulatory approval is granted. Barclay’s wants to increase its portfolio according to reports and therefore purchased the assets for an undisclosed sum. However, whilst Barclay’s and Egg may be happy with the deal many customers who feel they may be affected are worried.
No indication has yet been given as to whether Barclay’s will change the terms and conditions of an Egg accountholders who are now switched to Barclays. It is thought that cash back levels will remain unchanged for those that switch to a Barclay’s card as part of the acquisition. However, naturally customers are keen to know whether there will be other changes but no details have been revealed by Barclay’s or Egg regarding this matter.
The finance director from Barclays, Chris Lucas, said: ‘The acquisition of Egg’s UK credit card accounts has been priced at a significant discount. Based on current projections, we expect the transaction to exceed the financial return targets set out at our recent results announcement.’
Tags: Internet, matter, family, mainstream capabilities, buying, barclayAnother Barclays spokesperson said: ‘Barclaycard has a long history of providing simple and innovative payment solutions for our customers since launching the first UK credit card 45 years ago. We are very pleased to welcome over a million Egg customers and to provide them with access to our mainstream capabilities in areas such as mobile and contactless payments, digital servicing and instant rewards.’