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.
The Bank Charge Saga Goes On
After losing what all parties had agreed would be a watershed case, it appears that the main banks of the UK are set to appeal the decision. Eight of the UKÃ¢â‚¬â„¢s main banks are seeking permission to appeal against the earlier verdict which affectively gave customers the right to claim back a variety of bank charges going back some years. However, the situation is currently on hol...Read More
Have you considered moving bank?
As we have covered on numerous occasions, the vast majority of people in the UK are likely to remain with the same banking institution for many years and in some cases decades. However, the fact is that not all bank institutions can be competitive in every area of the financial arena with some financial institutions more competitive in mortgages or loans for example. So should you consider moving...Read More
Now You Can Buy Bank Details On eBay!
The lax levels of security which some financial institutions in the UK currently have in place have culminated in the sale of a £35 PC on eBay which contained the details of over 1 million credit card applicants for Royal Bank of Scotland. While nobody was aware that the details had not been safely removed from the PC it seems as though record archiving group Graphic Data allowed one of its mach...Read More
What will the FSA investigation into the banking sector review?
As the UK banking sector readies itself for a full-blown investigation by the FSA there are concerns in some quarters as to exactly what will be unearthed. There have been rumours for some time about Royal Bank of Scotland in particular, with a court case pending suggesting that the company was technically insolvent prior to last year's rights issue. While there is no evidence in the public domain...Read More
Faulty cashpoint payments could be theft
As hundreds of people queued at a cash machine in Stratford on Thursday to collect double their money, a number of legal experts have come out suggesting that those involved could well be charged with theft. At the time and money has never been tighter, many people in the Stretford area took advantage of this short-term glitch, which has now been rectified, to double their money and take some pres...Read More