Recent surveys of over 2000 households have suggested that people are still struggling on stretched budgets.
The Bank of England's annual poll has concluded that over 50% of households struggled to meet credit card debts and other unsecured credit payments.
Almost a quarter of those surveyed said that they had cut back on spending because it was so hard to borrow or that they had concerns about over extending and then not being able to get the credit to service their needs.
The vast proportion of the survey, over 90%, felt that they would be hit by Government financial measures.
The UK government is apparently on the verge of announcing a limit on credit card interest rates to try and protect those in the UK who have fallen into financial difficulties. The idea is that the FSA, or some other regulatory body, would be able to compare credit card interest rates against base rates and money market rates to see if they are "fair and just". However, if we limit credit card interest rates where does it all end?
Sainsbury's Finance have launched a new product in the UK credit card market which the company claims is the first of its kind. The company's Gold Credit Card has been designed to offer an array of benefits, reduced charges and discounted interest rates. So what can you expect from your new Sainsbury's Gold Credit Card?
A report by the Bank of England confirmed that £3.5 billion was written off by UK banks and building societies between April and June 2010 with a massive £2.1 billion of this write-off directly associated with credit card debt. So are credit cards dangerous?
Bank of America has this week launched what could prove to be a very attractive and very interesting offer for many struggling in the UK. The banking giant has issued a new MBNA credit card deal which will allow not only credit card balances from other card operators in the UK to be transferred but also other borrowings such as overdrafts. As long as the transfers are carried out within 90 days of opening your new MBNA credit card account the funds in question will attract a 1.9% interest rate for the first 12 months.
Despite the fact that UK credit card rates are still in excess of 20%, we have seen a number of "special offers" hit the market over the last few weeks. The average interest free period on offer for those looking to switch credit cards has grown to around 12.2 months which is a longer period than that seen at the height of the last credit card boom. So what does this mean for the future?
Tesco has launched a new attack on the UK financial arena with the release of a credit card which carries 0% interest on purchases for the first 13 months as well as a nine-month interest-free balance transfer deal. This is by far and away the most attractive credit card on the market at the moment and that is before considering the deal on Tesco club card points!
If there is one area of personal finance which has caused hardship for millions in the UK, aside from mortgages, it has to be the credit card industry. In the boom times many consumers in the UK used their plastic friends to increase their spending capacity with the idea that they would pay off any outstanding balance at the end of the month or else gradually pay off their short-term debt without adding further. So what went wrong?
Halifax has brought out a new credit card by the name of the Halifax clarity credit card which is aimed as the no nonsense markets and is said to cut the cost of travel for UK holidaymakers. It is a simple credit card with no usage fees, no foreign exchange fees and no additional charges when withdrawing cash overseas. The basic interest rate is just 12.9% against the market average of 18.4%, so what are the drawbacks of this new credit card?
In a move which will be welcomed by consumers up and down the country, Virgin Money has announced plans to introduce a whole new credit card payment system from 1 September. Currently any payments made to your credit card will go towards your cheapest debt first, which for many people is the 0% transfer deal, as opposed to purchases/payments and cash withdrawals - all of which attract a significantly higher rate of interest.
