Many paying for fuel with credit cards
April 14, 2011
For many people credit cards have provided a convenient and simple means of making payments instead of paying cash or using cheques. However, it appears that these days credit cards have become an essential tool to help people afford to fill up their cars so that they can get around. Many people have used their cards at petrol stations in the past simply because of the convenience that they provide. However, these days people are said to be using them out of necessity.
As all drivers will know the cost of petrol and diesel has rocketed over recent months, and the cost of filling up a tank has soared. As a result of this many people have had to resort to using their credit cards to pay for fuel at petrol stations because they cannot afford to do anything else, and this has sparked concerns about the knock on effect that this will have on consumer debt levels.
Daily living costs have soared in many areas recently, yet many people have seen their pay either frozen or reduced because of the recession and the financial climate, which has left most struggling to cope with the rise in the cost of living. Many people are not only paying for their fuel with their credit cards but are also now meeting other essential living costs with their cards. Many are unable to make much more than the minimum repayment after using their cards to this degree and will come to a point where they have maxed out their card and have massive debts to pay as well as still having to find a way to meet the cost of living.
Tags: official, Money Management, recession, Card, pastOne official said: “With inflation hitting 4.4 per cent last month, it’s not surprising that many families need to resort to using their credit cards for more and more living expenses. But we believe this does highlight just how important it is to keep on top of credit commitments overall.”
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: mastercard, score, credit score, cardholder’s credit file, consumers, 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: particular lifestyle, useful, Credit history, emergencies, average salaryA 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.’
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, #chipandpin, Technology, global version, #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.”
Some consumers forced to have contactless cards
January 17, 2011
Over the past eighteen months or so more and more providers have been launching contactless payment cards. These cards are designed to cover the payment for small, low value purchases, such as buying lunch, getting a paper and coffee, even paying for a cab. Anything that costs under £10-£15 depending on the provider can be paid for with these contactless cards.
These cards do not require any signature for payment and no PIN is required. The card is simply tapped against a special reader, and payment is then automatically deducted from the cardholder’s account. Many believe that the cards offer increased convenience and ease, making things faster and easier for both the customer and for retailers, who can deal with small transactions quickly and cut down queues.
However, there are concerns that these contactless payment cards are now being pushed onto consumers, with some of the biggest providers in the country now forcing them onto their customers. It is thought that other providers will follow suit. Amongst the providers whose cards are now all contactless versions are Barclay’s, MBNA, and Virgin Money.
Some customers are concerned about security, because there is no need to proof of identity, signature, or PIN for transactions that are under £15. According to reports there is a safety procedure built into the card, which will only allow a number of transactions to be made within a certain period to a maximum of £50 before a PIN is requested. However, many consumers are far from convinced by this feature.
One customer who was not happy about her Barclaycard being changed to a contactless model said: ‘These cards make theft so much easier and card theft more attractive. I have objected strongly to Barclaycard, who say there is no alternative card but that I could pay a fee to protect my card.’
Tags: special reader, Money, Economics, barclaycard, coffee, paymentMillions pay mortgage and rent with credit card
January 8, 2011
It has been revealed in a recent report that millions of people had to turn to their credit cards last year in order to keep on top of repayments on their mortgages or to make rental payments on their rented properties. Around 2.6 million struggling households are thought to have used money from a credit card in order to keep a roof over their heads and pay the rent or mortgage on their properties.
The data comes from Shelter, the housing charity, and the group said that the situation was unsustainable and that households were facing a daily struggle in order to make ends meet and make payments on their properties, whether it was rent or mortgage repayments. The data from Shelter showed that there had been a 2 percent increase in the number of people that had used a credit card to make payments on mortgages and rent last year compared to the previous two years, with 4 percent doing this in 2088 and 2009 but 6 percent doing it in 2010.
However, officials are concerned that not only does this indicate that people are still struggling enormously when it comes to paying for their home, but also that they will end up paying a fortune for borrowing on a credit card in order to pay off another debt.
Tags: credit card, homelessness, Mortgage, cash, Economics, evictionOne finance industry official said: ‘Taking out cash on a credit card should be seen as a last resort. It is an expensive way to borrow. If you need cash, you could look at alternative forms of borrowing such as personal loans, which currently have cheaper rates than the majority of cash rates on credit cards.’
Shelter added: ‘This is a totally unsustainable situation. It is one we fear could see thousands more pushed into the spiral of debt, eviction or repossession and ultimately homelessness. Using credit cards to pay the rent or mortgage is simply robbing Peter to pay Paul. It is the worst possible course of action.’
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: clothes, High Street, rate of interest, Retailing, costly store cardsOne 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: huge number, financial effects, money figures, substantial number, day, christmas shoppingConsumerIntelligence 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: Christmas, Many people, common sense advice, corner, credit card, convenienceAn 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.”
The 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: payment, barclaycard, barclays, pin, Credit Cards