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.
Telephone scams see massive increase
02/12/2014 The amount of money fraudsters have gained by using telephone scams has risen to £23.9 million, three times as much as it was last year. Financial Fraud action has released a report, which showed a significant rise in the number of consumers who have been targeted by phone scammers over the last year. Now, an estimated 58% of people have received suspect calls, compared to 41% l...Read More
Do I need an overdraft?
The subject of overdrafts, and overdraft fees, has been in the financial press for many months now and will continue to grab the headlines for some time to come. However, there is no doubt that many people across the UK make good use of their overdrafts to give themselves a buffer between unexpected expenditure and everyday spending. But do you actually need an overdraft? For many people the ve...Read More
Silver Saver accounts could fall foul of equality laws
In a bizarre move it has been announced that UK "Silver Saver accounts" which are targeted at the over 50s in the UK, may fall foul of the recent equality Bill. These accounts, many run by UK building societies, often offer a preferential rate or preferential terms to the over 50s in exchange for depositing their funds. At the time when the UK government and the UK banking industry has promised to...Read More
UK interest rates set to fall to lowest level on record
With UK interest rates set to fall below 2% this week this will officially be the lowest base rate in the 300 year history of the Bank of England. This perfectly illustrates the serious nature of the downturn in the UK economy and the government has again insisted that rates need to fall, at least in the short term, to try and kick-start an economy which is literally falling to its knees once agai...Read More
MPs stick the boot in to the FSA
The FSA (Financial Services Authority) has had what you may call "a bad day at the office" today after receiving severe criticism from MPs regarding the handling of the Dunfermline building society collapse. Despite receiving the backing of Gordon Brown on numerous occasions, the FSA today took a battering from the Scottish affairs committee with serving MPs queueing up to criticise the whole affa...Read More