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.

One 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.”

Many paying for fuel with credit cards is a post from: Credit Cards Bureau

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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.

Prevent missed and late payments on credit cards is a post from: Credit Cards Bureau

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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.

A 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.’

One fifth of singles use credit cards and loans to fund lifestyle is a post from: Credit Cards Bureau

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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.

One 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.”

Card debt to continue this year is a post from: Credit Cards Bureau

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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.’

Another 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.’

Barclay’s buying a different kind of egg this Easter is a post from: Credit Cards Bureau

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It was February 14^th 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.

One 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.”

Chip and PIN celebrated on Valentine’s Day is a post from: Credit Cards Bureau

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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.

One 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.”

Credit card rates soar despite base rate is a post from: Credit Cards Bureau

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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.

He 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.”

January debts lead to missed bills is a post from: Credit Cards Bureau

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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.

An 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.” 

Millions set to increase credit card spending is a post from: Credit Cards Bureau

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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.’

Some consumers forced to have contactless cards is a post from: Credit Cards Bureau

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