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: Money, Card, credit, bill payments, Finance, basic essentialsHe 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.”
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: Money, Economics, coffee, special reader, barclaycard