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.
FCA could probe ‘teaser’ rates
The Financial Conduct Authority (FCA) has hinted that it could launch an investigation into ‘teaser’ rates which could lead to action being taken against companies who mislead consumers. Teaser rates are those that lure customers to a product, such as a cash Isa, with higher initial interest rates. However these are only introductory rates, sometimes containing a first year bonus, and will...Read More
Lloyds TSB launches 'Polish bank account'
Lloyds TSB has launched the first bank account in the UK aimed specifically at new arrivals to Britain.The bank says its Silver current account is "ideally suited" to economic migrants to the UK, especially the country's growing Polish community.The account's main selling point is a money transfer card that allows consumers to send money back home via a preloaded card that can then be used for cas...Read More
Is the government set to remutualise Northern Rock?
The Building Societies Association has today issued a report suggesting that the UK government should remutualise Northern Rock to prevent a repeat of the company's collapse in the future. There is also feeling that if this were to occur it would highlight the mutual sector again and potentially inject more confidence into a sector which has been battered by the recession and various financial dif...Read More
Am I at risk from identity theft?
Over the last few years the threat of ID theft in the UK and around the world has increased dramatically with more and more people now on the radar of the fraudsters and scammers. However, the vast majority of people who may be at risk from identity theft are still unaware of problems which may await them in the future. So are you at risk of identity theft? There is no doubt that the introducti...Read More