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: family, matter, mainstream capabilities, buying, InternetAnother 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.’
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: customer base, debt, Rates (tax), credit card, level, 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: bill payments, Finance, Money, basic essentials, Card, creditHe 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: Personal finance, long wait, households, Many people, official, consumersAn 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.”
Consumers expected to spend more this Christmas
December 16, 2010
It has been claimed in a report from the credit card and banking giant Barclays that credit card spending is set to increase this Christmas. Although many people are still experiencing difficulties due to financial and economic problems it is thought that collectively consumers in the UK will spend tens of billions on credit and debit cards over the holiday period.
According to the figures from Barclays consumers in the UK will spend around £50 billion between them over the holiday period, and this will reflect an increase of 8 percent compared to last year. Many are still suffering when it comes to their finances but this does not seem to stop many people from dusting off their plastic cards and getting online to make purchases such as gifts and clothes.
The High Streets have suffered over recent weeks because of the bad weather, and whilst High Street retailers have taken the hit because of the weather conditions online retailers have enjoyed huge profits, with consumers choosing to shop from the comfort and privacy of their own homes using their credit cards and debit cards rather than brave the freezing temperatures and head out to the shops.
However, in the lull between spates of bad weather consumers have also been hitting the High Street with their credit and debit cards, which has resulted in further spending.
Tags: hit, December, Christmas and holiday season, debit, economic problems, BusinessOne official from Barclays stated: “The early snow falls this month meant that the start of December was a little quieter on the high street than expected.” He went on to state: “This is likely to put even greater pressure on retailers as we draw to the end of the Christmas countdown, with customers being forced to do their shopping at the last minute.”
Consumers make everyday purchases with credit cards
December 2, 2010
An industry official has pointed out how people are now using credit cards to make everyday purchases rather than reserving them for one off purchases, luxury items, or more expensive items. In the past many people that had credit cards only used them in emergencies or if they were buying something that they could not afford to pay for in one go.
However, these days more and more people are using their credit cards to make everyday purchases, from paying for groceries and travel to paying for drink and lunch in the pub. The convenience and ease of credit cards has made them very popular amongst consumers that don’t want to be carrying cash around everywhere. They have also proven to be a financial lifeline for many people that have suffered financial struggles due to the credit crisis and recession.
Richard Sorsky, who works for the UK Insolvency Helpline, said that credit cards were no longer seen as a luxury, and rather than being used by wealthier people, as they once were, they were now tools that were used by the average consumer to pay for many different items both online and on the High Street, as well as by phone.
He said that more people were now spending instead of saving, and this was because it was impossible to save any significant amount of money for some people due to the high cost of living. There is also the fact that most people are not getting any return on their savings due to low rates of interest from banks.
Another recent report has also highlighted how popular credit cards are becoming, but industry experts want to ensure that consumers are being sensible with their credit cards as well as enjoying the convenience and ease that they offer.
Tags: consumer, consumers, Credit Cards, recession, buying, Richard SorskyThe Rise Of Contactless Credit Cards
December 10, 2009
Contactless credit cards allow the consumer to make purchases under £ 10.00 without even having to swipe or input a pin number, with customers only occasionally asked to input a pin for extra security measures. Read more
Tags: consumer, payment, Credit Cards, barclays, pin, contactless, barclaycardSafe Online Shopping This Christmas
December 1, 2009
With over 32 million people using the credit cards on the web to do their shopping, the U.K. Payments Administration have advised the everyone of us should be doing what we can in order to prevent fraud happening. Read more
Tags: uk cards association, Credit card fraud, fraud, Credit Cards, credit card holders, uk payments associationAre You Using Your Credit Card For Christmas This Year?
November 30, 2009
Recent research, by moneysupermarket.com, has shown that 66 % of Brits have not saved enough money for Christmas this year. 18 % have saved enough, 34 % are on target to have saved enough and 17 % said they are turning to a credit card, resulting in many getting themselves into debt in order of being able to provide a perfect Christmas for the family. Read more
Tags: zero per cent, 0% interest, financially, credit card, debtNew Rewards Card From The AA
November 17, 2009
There is good news for car owners looking for a new credit card as the AA is putting a new reward card into the card market that will ease the “financial pain” drivers face in the current climate. Read more
Tags: reward card, interest free, financial, credit card, cash back