Do I really need an overdraft?
Many people in the UK will have access to "interest-free" overdrafts for which they may be charged a small administration fee on a monthly basis. However, do we really need an overdraft or is it simply a long-term extension of our own credit facilities?
The ideal of an overdraft should simply be access to emergency credit at very short notice. However, it can be very easy to fall into the trap of accumulating your overdraft facility with your income on a monthly basis to arrive at "accessible credit limits". This can often lead to situations where we fall into our overdraft facility earlier and earlier each month which can often lead to extended overdraft facilities which are often more expensive and attract higher interest rates.
Even an interest-free overdraft facility, although often very useful at the time, can be the first step towards more debt and more charges in the future. We all need to be vigilant and keep within our budgets and not automatically assume that our overdraft facilities are part of our "everyday budget". It is easy to suggest that a £100 overdraft is simple to pay back but this could become £200, £300, etc and the situation can easily get out of control.
HBOS reveals an £8 billion pound write-down
Today is the day that Lloyds TSB is likely to secure the merger of HBOS with its existing operations as HBOS shareholders get a chance to vote on the move. However, HBOS has come out with a warning that bad debt provisions for the current year will top around £8 billion which is nearly half of the £15.5 billion of emergency capital raised earlier this year.
This has sent a stark r...
Is There More To The Halifax 10% Interest Rate Account?
Next week will see the launch of a new Halifax account which we are told will pay 10% interest on savings, rising to a possible 12% if the funds remain untouched for at least 12 months. The headline grabbing deal has created much interest in the markets but it seems as though all may not be as it seems!
While the maximum amount which you can retain in the account is £6,000, togeth...
400,000 stranded without salary
The bank payments body Apacs is struggling today to address problems caused by a major technical hitch, which could mean that up to 400,000 people will not receive their end-of-the month salary.The data corruption issue, which came to light on Thursday night, may mean that customers are unable to withdraw cash from ATM machines, although they could still use branch counters for transactions.Despit...Read More
Is Debt Consolidation Really The Answer?
As we see more and more debt consolidation companies promoting their services and undergoing aggressive marketing campaigns, many are now starting to ask if debt consolidation is the answer, or is it just delaying the inevitable for those with financial worries?
While the IVA and Bankruptcy companies had a difficult time last year, as the banks decided to reduce the charges they wer...
Northern Rock shareholders lose their legal battle
A group of former Northern Rock shareholders have today been forced to admit defeat in their pursuit of the UK government and the "fair" compensation package for their shares. They argued that the fact the UK government had already placed a "value" on Northern Rock's value prior to nationalisation, infringing their human rights. The High Court judges who heard the case against the government ruled...Read More