PPI Claims News

Financial services complaints hit record levels

Mon, 06 Feb 2012 12:49:00 GMT

Payment protection insurance (PPI) complaints have driven a marked increase in overall complaints in the financial services sector in Scotland.

According to new figures obtained by the Scotsman from the Financial Ombudsman Service, there was a significant spike in PPI claims during the second half of last year.

Coupled with rising car insurance and credit card problems, complaints in the sector overall has hit record levels.

Another area that has affected the number of complaints is the steadily rising overdraft charges levied by banks, which have risen to 19.47 per cent of overdraft value according to This is Money.

When compared to figures from 2010, the number of complaints reached 17,007 - rising by 47 per cent year-on-year.

Speaking to the news provider, an FOS spokesperson said: "The ombudsman service helped to sort out a record number of complaints from consumers in Scotland in 2011 - and indications are that numbers will continue to increase in the year ahead."

They added that complaints often increase during difficult financial times and encouraged people to try and take control of their finances by seeking professional advice if they find themselves in trouble.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bonuses should be cut for execs responsible for PPI scandal

Mon, 06 Feb 2012 10:58:40 GMT

Financial services executives behind the current payment protection insurance (PPI) scandal should have their bonuses cut this year.

According to Richard Lloyd, executive director at Which?, the public anger surrounding the PPI debacle has resulted in a huge amount of political pressure building up on financial services firms embroiled in the scandal.

Coupled with the negative outlook for the economy, people are calling for bonuses at the top of the industry to be slashed.

Speaking to the Financial Times, Mr Lloyd said: "This is one of the clearest examples of unfair treatment of customers and reward for failure on an industrial scale."

However, he added that the government needs to act now if it is to appease voters - particularly as PPI claims are expected to rise further in the coming year.

"There has been a lot of rhetoric from the government and banks about linking performance to pay. This will be the test to see what that rhetoric means in practice," he added.

The Financial Services Authority has been calling on executives to forgo their bonuses in light of the economic and unemployment turmoil the UK is experiencing.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Financial services levy to rise thanks to PPI

Mon, 06 Feb 2012 09:55:50 GMT

Financial services firms will be hit by a higher than expected Financial Services Compensation Scheme (FSCS) levy in the coming year thanks to the rising cost of servicing payment protection insurance compensation claims.

According to the FSCS's Plan and Budget, PPI will be the "most significant" claim area in the 2012-13 financial year. In fact, PPI claims are expected to continue rising as more instances of misselling come to light.

Insurance firms will pick up more than half of the £221 million compensation levy in the coming year - paying £120 million of the total.

This is compared to last year's payment of just £69.5 million in the general insurance sector.

Mark Neale, chief executive of the FSCS, said: "Our accountability to our stakeholders and our commitment to keep costs to a minimum remains a key priority for us."

"A major focus for us in the coming year will be to pursue recoveries from major failures in order to reduce the costs on the industry," he added.

PPI has been blamed for falling profits at Santander recently, with just £993 million recorded this year - down 40 per cent on last year's figure.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim news: Britons worried about winter bills

Fri, 03 Feb 2012 15:45:15 GMT

The vast majority of Britons would welcome compensation from a payment protection insurance (PPI) mis-selling case, as concerns about the size of winter bills begin to mount.

According to uSwitch.com, 85 per cent of consumers are worried about their heating expenses for the winter quarter, even though temperatures have been milder than in previous years until this week's cold snap.

The comparison website revealed that eight in ten people have scaled down the amount of energy they use in order to reduce their outgoings.

Nearly three-quarters of the respondents said the reason behind their decision to turn down their central heating was solely financial.

"If Britain isn't to carry on freezing we need a helping hand and I would now urge the government to look at making our gas and electricity exempt from VAT," commented the website's director of consumer policy Ann Robinson.

Nationwide recently revealed that consumer confidence is near rock bottom throughout the UK, as many people have been hit hard by the rising cost of living.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Which? calls for action over PPI claims

Fri, 03 Feb 2012 11:57:03 GMT

Consumer group Which? is the latest organisation to call for banking leaders to reclaim the bonuses issued to staff that were involved in the mis-selling of payment protection insurance (PPI).

The company has sent a letter to the heads of the UK's five major banks, which urges them to claw back as much money as they can from employees who received substantial perks despite being involved in costly PPI cases, the Financial Times reports.

Leaders at the Financial Services Authority (FSA) have also implored executives to retrieve money that was paid to bankers.

UK banks have been forced to stump up a total of £6 billion to cover any potential PPI claims and the Financial Ombudsman Service recently revealed that it has had to deal with a soaring number of cases in recent months.

David Cameron is also keen to see the Royal Bank of Scotland reign in bonuses this year, despite initially stating that the government would not impose any restrictions on reward payments.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Record bank charges issued to Brits with overdrafts

Thu, 02 Feb 2012 16:40:21 GMT

Britons who have an authorised overdraft are being hit with record bank charges, it has been claimed.

The Bank of England has revealed that people who have got an overdraft are being charged 19.47 per cent for the privilege, This is Money reports.

In essence, if you have held an overdraft of £1,000 for 12 months, you will have been forced to pay out £200 before other charges are even added.

This has led to an increasing number of people having no choice but to take out a payday loan, which often leads to a slippery financial slope.

Leaders at saveoursavers.co.uk recently hit out at Bank of England chief Sir Mervyn King's claims that many Britons stopped borrowing money when the recession took hold.

They stated that Britons are more indebted than ever, with credit card arrears reaching £56.5 billion in November 2011. This is despite the fact that £13 billion of debt was written off between 2008 and 2011.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges news: Britons rush to pay off debts

Thu, 02 Feb 2012 10:57:52 GMT

Britons demonstrated their desire to avoid credit card charges, as record numbers paid off their debts in December 2011.

New figures released by the Bank of England showed that consumers repaid a total of £377 million during the month. This was the biggest decline in lending seen since records were first started in 1993.

Overdrafts and loans accounted for the biggest amount of refinancing, although a significant portion of the total was attributed to people clearing their credit card debts.

Economic adviser to the Ernst & Young ITEM Club Nida Ali said the statistics were a clear indication that Britons were tightening their purse strings.

"The fall in consumer credit reflects individuals' reluctance to take on more debt in a tough economic environment," the analyst commented.

According to Alliance Trust Savings, Britons' financial wellbeing actually looked more positive in the fourth quarter of 2011. However, despite the fact the company's index increased when compared with the third quarter, bosses warned that household budgets would still be under pressure in 2012.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Banks told to reclaim bonuses in light of PPI claims

Thu, 02 Feb 2012 09:59:06 GMT

Bank chiefs have been told they must do all they can to recoup bonus money that was paid to employees who were involved in the mis-selling of payment protection insurance (PPI)

The leaders of Britain's major banks were summoned to a meeting by the Financial Services Authority (FSA) yesterday (February 1st), Sky News reports.

According to the broadcaster's City editor Mark Kleinman, the banking bosses were told to "demonstrate urgent efforts to claw back bonuses".

Up to three million people are said to be eligible for a bank reclaim, after they were wrongly signed up to insurance policies that were effectively useless. Total compensation payouts are expected to cost banks up to £6 billion.

"I am told that the FSA has been incredibly robust in trying to force banks to disclose how far they have gone in trying to reclaim bonuses paid to executives," Mr Kleinman commented.

David Cameron recently backtracked on his decision not to interfere in the amount paid to bankers and urged the Royal Bank of Scotland chiefs to "show restraint" when dishing out bonuses.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

David Cameron urges RBS 'to show restraint'

Wed, 01 Feb 2012 11:49:39 GMT

Prime minister David Cameron has urged the Royal Bank of Scotland (RBS) to "show restraint" when issuing bonuses to senior employees.

Mr Cameron has reversed the UK's policy of non-intervention from the government over bonus payments, following an outcry over the huge package that was being offered to RBS leader Stephen Hester.

Downing Street had insisted at the start of the week (January 30th) that it would not force the company to rein in its perks this year, but it has now backtracked.

"They have got to have proper regard in terms of restraint when they have had so much money from the taxpayer and they have made so many mistakes in the past," Mr Cameron remarked.

His comments came after business secretary Vince Cable urged leaders of other banks to follow the lead of Mr Hester and turn down excessive bonus payments.

Labour leader Ed Miliband criticised Mr Cameron's original stance on the issue, labelling him "feeble" and "out of touch".

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Ex-RBS chief stripped of his knighthood

Wed, 01 Feb 2012 10:47:48 GMT

The former leader of the Royal Bank of Scotland (RBS) Fred Goodwin has been stripped of his knighthood.

Goodwin had been at the helm when the bank was forced to be bailed out by the government, which used taxpayers' money to keep the institution afloat.

He had the honour bestowed upon him by the Labour government in 2004, but his poor decisions caused outrage, as he took the bank to the brink of a major collapse.

It is a bold move by the Queen, who acted on the advice of Whitehall. Titles have only previously been revoked when a person has been convicted of a criminal offence or struck off by a professional body.

A spokesperson for the Cabinet Office said the failure of RBS played an important role in the overall financial crisis that hit the UK in 2008.

"The scale and severity of the impact of his actions as CEO of RBS made this an exceptional case," the spokesperson commented.

Goodwin's successor Stephen Hester turned down a bonus of nearly £1 million this week.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Santander blames PPI claims for falling profits

Wed, 01 Feb 2012 09:44:14 GMT

Santander has blamed the large number of payment protection insurance (PPI) claims it has received for its sliding profits in 2011.

The bank's UK division reported profits of £993 million for the year, which was down by around 40 per cent compared with 2010.

Bosses at the firm stated that it was forced to set aside £538 million to cover incoming PPI claims, which had a major impact on the business.

However, Santander chiefs also highlighted other reasons for the sharp decline, including low interest rates and higher funding costs.

Chief executive at Santander UK Ana Botin believes 2012 will also be another "tough year" for banks across Britain.

"Economic prospects have deteriorated markedly even in recent months, whilst increased regulatory burdens and funding costs will impact the results further," she remarked.

The Financial Services Authority recently called for bankers' bonuses to be scaled down to reflect the huge losses that have been made through PPI compensation.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan protection news: Mortgage holders are 'lacking awareness'

Tue, 31 Jan 2012 16:33:18 GMT

Many homeowners across the UK - some of whom may have a loan protection policy in place - are unaware of the terms of their mortgage.

According to new research published by first direct, 42 per cent of people are regularly putting money aside for a rainy day, but just 21 per cent overpay on their mortgages each month.

This could be a mistake, as paying off a home loan early is the best solution in the long run due to fluctuating interest rates.

Senior mortgage manager at the organisation Richard Tolchard said that many people lack awareness when it comes to the terms of their home loan.

Indeed, the study showed that 42 per cent did not know about the over payment limit on their deal, while nearly a third said they had no clue what interest they were paying on the mortgage.

A recent study conducted by YouGov on behalf of Shelter revealed that 22 per cent of people have cut their energy consumption in order to meet mortgage repayments.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

French bank charges 'could benefit the UK'

Tue, 31 Jan 2012 14:52:22 GMT

The introduction of new bank charges in France could ultimately benefit the UK, prime minister David Cameron has suggested.

French president Nicolas Sarkozy has pledged to introduce a Financial Transactions Tax (FTT) if he is re-elected in May, as he aims to stimulate growth in the country's economy, the Associated Press reports.

However, Mr Cameron believes that taking such a stance without the support of the rest of the EU is "mad".

He also stated that any French bankers that want to avoid the levy could move their business to Britain.

"If France goes for it, then the door will be open to many more banks from France, and we would welcome them to the UK," he was quoted as saying.

Mr Cameron has come under fire from a number of angles in the past week over his reluctance to block a potential bonus payment of nearly £1 million that was offered to Royal Bank of Scotland leader Stephen Hester. Mr Hester turned down the perks yesterday (January 30th).

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges news: Financial wellbeing grows, but not by much

Tue, 31 Jan 2012 12:49:06 GMT

UK consumers - many of whom may have been saddled with hefty bank charges in the past - saw their financial wellbeing grow slightly in the fourth quarter of 2011.

According to newly released figures from Alliance Trust Savings, the outlook for cash-strapped Britons was slightly brighter in the final three months of the year, following a record decline in the company's UK Financial Reality Index in the third quarter.

Indeed, the index rose from 56.7 to 62.1 between October and December, but this was still well below the critical point of 100.

Senior economic analyst at the organisation Linsey Thompson said that conditions would be tough once again in 2012.

"Household budgets continue to come under pressure from high inflation and muted wage growth, despite a rise in the index in Quarter Four," the analyst commented.

MoneySupermarket.com recently revealed that the rising cost of utility bills remain the biggest concern for the majority of hard-up Britons.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims news: Britons' earnings have taken a hit

Tue, 31 Jan 2012 11:03:50 GMT

More Britons could be hoping to secure compensation from a payment protection insurance (PPI) mis-selling case in order to give their bank accounts a much needed boost.

According to a new study conducted by the Trades Union Congress (TUC), a stagnation in wages has led to workers taking home £60 billion less than they did 30 years ago (allowing for inflation).

The report showed that, perhaps unsurprisingly, earnings took the biggest hit during the recession, when pay increases fell from 4.2 per cent in 2007 to just 1.7 per cent in 2009.

To make matters worse for the lowest-paid members of society, the gap between executive earnings and blue collar staff has widened.

Author of the report Stewart Lansley commented: "The falling real wage share over the last 30 years helped cause the recent crash by sucking demand out of the economy and making us more dependent on spiralling debt."

A recent report published by Skipton Building Society showed that Britons who spent frivolously on their credit cards last year are going to pay the price in the next few months.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims news: High petrol prices force drivers to change

Mon, 30 Jan 2012 10:55:22 GMT

More drivers in the UK could be in need of compensation from a payment protection insurance (PPI) claim just to stay on the road.

A new study conducted by Hastings Direct has highlighted the extent of the financial hardships that have been caused by sky high petrol prices.

The research showed that 78 per cent of motorists have been forced to change the way they drive and how often they get behind the wheel, as rocketing costs at the pumps have started to take their toll.

One in five of the survey respondents admitted that they would get rid of their vehicle altogether if petrol prices reach £2 a litre.

Managing director at the insurer Tobias van der Meer said that motorists "cannot and will not" continue to pay extortionate prices to run their cars.

Nationwide's latest Consumer Confidence Index showed that Britons hold a bleak outlook for their own finances in 2012, as the cost of living continues to grow at a faster rate than wage increases.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges news: RBS chief turns down bonus

Mon, 30 Jan 2012 10:02:37 GMT

Royal Bank of Scotland chief Stephen Hester has turned down his annual bonus which would have amounted to nearly £1 million, after he came under huge pressure from the public.

Mr Hester had been in line to receive 3.6 million shares in the bank, but news of his sizeable perks caused widespread outrage.

Many MPs had been angry that prime minister David Cameron was seemingly allowing the bonus to be paid, despite insisting recently that bankers would not be receiving disproportionate rewards this year.

Labour leader Ed Miliband believes that Mr Hester has "done the right thing", although he slammed Mr Cameron, calling him "feeble" and "out of touch".

"We need a government that will tax bankers' bonuses and bring responsibility to the boardroom," he added.

Last week, governor of the Bank of England Sir Mervyn King called for bankers' perks to be culled, as the UK's economy is facing a "long, arduous and uneven" road to economic recovery in 2012.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI payouts reach record levels in November

Fri, 27 Jan 2012 15:05:44 GMT

The high number of people claiming against mis-sold payment protection insurance (PPI) led to record payouts in November, new figures have suggested.

According to the Financial Services Authority (FSA), £379 million was awarded to Britons who had successfully lodged a claim during the month.

This represented a significant rise on October, when £278 was issued to those who had been unfairly signed up to PPI packages.

The information supplied to the FSA came from 16 firms that dealt with 92 per cent of all PPI cases in the UK.

It is likely that this figure will be surpassed in the near future, as the Financial Ombudsman Service reported earlier this month that it had received unprecedented amounts of complaints in the final three months of 2011 and there will be a backlog of cases to deal with in 2012.

Prime minister David Cameron and his deputy Nick Clegg have both called for bankers' bonuses to be reduced this year to reflect the huge sums that are being paid out to PPI claimants.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan protection news: Consumers reign in spending

Fri, 27 Jan 2012 12:18:17 GMT

Consumers - Many of whom may have been stung by loan protection charges issued by lenders - have been forced to reign in their spending on the high street.

According to the Confederation of British Industry (CBI), retailers experienced a 44 per cent slump in sales in the first two weeks of January compared with the same period last year.

Nearly a quarter of the storeowners who took part in the survey predicted that sales figures would fall even further in February, as many Britons have had little choice but to tighten their belts.

CBI's chief economic adviser Ian McCafferty said that consumers are holding off buying "big ticket items" such as fridges and washing machines in particular.

"Shoppers have reined-in spending across the board at the start of the New Year after taking advantage of early discounting last month, which boosted pre-Christmas sales," he remarked.

A recent study conducted by MoneySupermarket.com showed that Britons have stopped buying luxury items because they are increasingly worried about out-of-control utility bills.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Britons 'facing an uphill battle financially'

Fri, 27 Jan 2012 11:58:53 GMT

More Britons may be encouraged to claim against mis-sold payment protection insurance (PPI) in order to boost their coffers, as many will face an uphill financial battle in 2012.

This is according to Skipton Building Society, which has suggested that "reckless spending" on credit cards in 2011 has made for a bleak outlook this year, with many households predicted to struggle to pay off their debts.

A study conducted by the organisation indicated that the average Briton used their plastic 267 times last year, spending a huge £17,000.

It appears that people are no longer using their credit cards just to pay for luxury items, as the research discovered that many more are being forced to pay their utility bills with their cards.

Head of corporate communications at Skipton Tracy Fletcher believes credit should only be used for one-off purchases and in emergency situations.

"While it might seem like a quick fix in the short term, it can prove to be a nightmare later on," she remarked.

Bosses at saveoursavers.co.uk recently claimed that British households are in more debt than ever at the moment.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim news: Fury over RBS chief bonus

Fri, 27 Jan 2012 10:59:50 GMT

With banks forced to pay out huge sums to successful payment protection insurance (PPI) claimants, news that the leader of the Royal Bank of Scotland (RBS) is set to receive a near £1 million bonus payout has outraged many Britons.

Stephen Hester will receive 3.6 million shares in the bank, adding up to a total of £963,000, which is said to be 60 per cent of his entitlement.

The bank is currently majority owned by the government, after it was forced to use taxpayers' money to keep the institution afloat and news of Mr Hester's huge reward has not been well received.

Shadow business secretary Chuka Umunna told the BBC that he would not have given Mr Hester any bonus payout at all.

"People listening to this programme will be flabbergasted that nothing has been done about this," he was quoted as saying.

David Cameron and Nick Clegg had insisted recently that employees at state-owned banks would not receive excessive bonuses this year.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claim news: Clegg urges action on tax

Thu, 26 Jan 2012 16:13:59 GMT

People who have relied on a successful claim against mis-sold payment protection insurance (PPI) to boost their bank accounts could see significant changes made to the UK's tax system.

Speaking to BBC One's Breakfast show, deputy prime minister Nick Clegg suggested that the coalition must raise the tax threshold to £10,000.

By doing so, people who earn less than this on an annual basis would be exempt from taxation, which may give low earners some much needed respite at a time when the cost of living is spiralling upwards.

The tax threshold was raised by £1,000 by the government in 2010 to £7,475 and another increase is expected in the next Budget.

"Because things are very tough … I believe we should do this [raise the tax threshold] further and faster," Mr Clegg told the broadcaster.

The leader of the Liberal Democrats has also called for bankers' bonuses to be scaled down this week, as the country's economy is still in a precarious position.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Mortgage customers blighted by increasing bank charges

Thu, 26 Jan 2012 11:59:27 GMT

Mortgage customers across the UK are being badly affected by rising bank charges, a new study has found.

According to Moneyfacts, the average mortgage fee has risen by more than £600 in the past 12 months, which has piled more misery on those who are trying to get a foot onto the property ladder.

Now, the organisation found, the average home loan fee stands at £1,498 - up from just £889 a year ago.

The average charge for a 60 per cent loan-to-value mortgage has also risen by 42 per cent during the same timeframe.

Moneyfacts spokeswoman Sylvia Waycot said people need to do their homework before approaching a bank for a mortgage package.

"In the excitement of buying a house, it is easy to ignore arrangement fees but this could be a costly mistake, especially if the fee is added to the mortgage loan," she remarked.

The British Bankers' Association has revealed that mortgage lending was up by 12 per cent in December 2011 when compared with the same month in 2010.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claim news: British households 'more in debt than ever'

Thu, 26 Jan 2012 10:50:48 GMT

Britons are in desperate need of compensation from payment protection insurance (PPI) mis-selling cases, as households are in more debt than ever.

This is according to leaders at saveoursavers.co.uk, who have refuted Bank of England chief Sir Mervyn King's claims that consumers stopped borrowing money in 2008-09.

Indeed, representatives of the website said that this statement was "misleading" and "could not be further from the truth".

They added that credit card debts continue to spiral upwards, rising from £53.3 billion in November 2008 to £56.5 billion in the same month last year. A total of £13 billion of credit card debt was also written off during this period.

"British households are more indebted than ever. The only reason that headline totals have fallen is because of banks writing off bad debts," a spokesperson for the website noted.

Sir Mervyn recently urged banks to give their employees bonuses that are proportionate with the current economic climate.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank refunds news: King calls for bonus cull

Wed, 25 Jan 2012 12:25:54 GMT

The high number of bank refunds being dished out by major UK-based institutions and the shaky state of the economy in general should be enough to see bankers' bonuses curbed this year.

Governor of the Bank of England Sir Mervyn King has warned of a difficult year ahead and he is keen for banks to offer proportionate rewards to their employees.

He said that the biggest tragedy of the financial crisis is that the people who have borne the brunt of it are those who were in no way responsible for the economic crash.

Sir Mervyn insisted that 2012 would be a "long, arduous and uneven" road towards recovery.

"The legitimacy of a market economy will inevitably be challenged if rewards go disproportionately to a small elite," he commented.

Earlier this week, the Financial Services Authority suggested that bankers' bonuses should reflect the huge losses that banks have encountered through compensation for mis-sold payment protection insurance.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges news: 1 in 5 'to retire in debt'

Wed, 25 Jan 2012 10:47:34 GMT

Workers - many of whom may have been hit with credit card charges in the past - are increasingly falling into greater debt.

A new study conducted by Prudential has indicated that one in five people will be in arrears when they retire in 2012.

The research showed that half of this number still owe money on their mortgages or credit cards.

Levels of debt are threatening to spiral out of control, as the average amount owed has grown by £5,000 in just 12 months, with each person having to pay back £33,100 when they eventually end their career.

Retirement income expert at Prudential Vince Smith-Hughes said that many people retire with outstanding debts due to a lack of financial planning.

"It is important therefore for those still at work to save as much as possible as early as possible and to consult a financial adviser to help them plan for a comfortable retirement," he commented.

A study published today (January 25th) by Aviva has shown that the average household debt in the UK has grown by 48 per cent in the past year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Rising bills 'are Britain's biggest worry'

Wed, 25 Jan 2012 10:45:46 GMT

More Britons could be forced to see if they are eligible to file a claim against mis-sold payment protection insurance (PPI), as a growing number of people are concerned about the rising cost of living.

According to a new survey conducted by MoneySupermarket.com, consumers are ten-times more concerned about spiralling utility bills than they are about meeting mortgage repayments.

The research indicated that one in four UK households would be unable to survive for more than a week if their income suddenly dried up, which may explain why many people have been keen to secure income protection insurance in the past.

Just an extra £1,000 would relieve the financial stress of many people, the study also concluded.

"It is worrying that so many people would struggle should their financial situation change with a quarter of households saying they only had enough spare cash to last a week," commented the website's consumer finance expert Clare Francis.

Director of Chapters Financial Limited Keith Churchouse recently urged people to place between three and six months worth of wages into a savings account to act as a buffer should they lose their jobs.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Is RBS chief being unfairly targeted over PPI claims?

Tue, 24 Jan 2012 14:37:24 GMT

Chief executive at the Royal Bank of Scotland (RBS) Stephen Hester is being "unfairly targeted" by the Financial Services Authority (FSA), which has called for his bonus to be trimmed to account for losses made through payment protection insurance (PPI) mis-selling claims.

This is the view of head of the British Bankers' Association Angela Knight, who told the Daily Telegraph that Mr Hester - who was tasked with rejuvenating the troubled state-owned bank - has done a decent job in extremely difficult circumstances.

Her comments come after the FSA called for bankers' perks to be lowered, as many banks are being forced to pay out billions in compensation to people who have been incorrectly sold PPI cover.

Ms Knight feels that the people who should be punished for the banking errors have long gone and those who are trying to tidy up the mess are being held accountable.

"Much of the debate about pay is targeted at those who have come in to sort it out," she was quoted as saying.

Last week, prime minister David Cameron insisted that bankers' bonuses would be lower this year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims surge among Yorkshire consumers

Tue, 24 Jan 2012 10:57:42 GMT

The number of claims being made against mis-sold payment protection insurance (PPI) grew sharply in Yorkshire in 2011.

According to the Financial Ombudsman Service, the number of PPI cases being handled across the county reached 9,178 in the 2010-11 financial year, which was up from just 3,965 in the previous 12 months, the Yorkshire Post reports.

This formed part of the overall 104,597 claims that were made to the Ombudsman during the year, as many Britons realised that they had been mis-sold the cover.

In many instances, banks and insurers were signing customers who had taken out a loan or credit card up to policies that they either did not need, or would have been unable to claim against if they did actually lose their job.

Which? has warned that such is the size of the backlog of cases being dealt with, many claimants may not receive their compensation until 2014.

The Financial Services Authority has stated that bankers' bonuses should be scaled down to reflect the losses accrued through PPI payouts.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges news: More Britons carrying plastic

Tue, 24 Jan 2012 09:51:26 GMT

People who have been hit with credit card charges in the past appear to be undeterred about using plastic, as one in four Britons will carry a card in 2012.

A new study conducted by comparison website Gocompare.com has found that the rising cost of living has forced more people to rack up credit card debt.

Indeed, one in ten said they would be reliant on their plastic in order to make ends meet this year, a figure that the website's head of credit cards Jeremy Cryer labelled as "worrying".

He added that many consumers are resigned to the fact that their levels of debt will grow in 2012, but he urged them not to fall foul of high interest rates.

"If used carefully, plastic cards can be a useful budgeting tool, but when used to plug a gap in everyday spending, card debt can quickly spiral out of control," he commented.

Last week, a study conducted by YouGov on behalf of Shelter showed that more than one in five UK residents have purposefully reduced their electricity and gas consumption in order to meet mortgage payments.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claim news: Child benefits may be taken away from Britons

Mon, 23 Jan 2012 13:52:52 GMT

Up to 680,000 British families could be looking to see if they are eligible to claim compensation having been mis-sold payment protection insurance (PPI), as their child benefit payments may be taken away from them.

According to bosses at rural insurer NFU Mutual, changes to the way childcare benefits are issued are being lined up by the Treasury for 2013.

Around 180,000 of the overall number are families that only have one earning parent and those who have two children could be losing up to £1,750 a year.

Personal finances specialist at the company Sean McCann said that although nothing concrete has been announced by chancellor George Osborne as yet, proposed alterations could make a "big dent" in many people's household income.

"We know that change to the child benefit system is coming for families paying 40 per cent income tax," he remarked.

A successful PPI claim could give families a major financial boost and the Financial Ombudsman Service recently stated that the organisation received a huge surge in cases in the last quarter of 2011.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bankers' bonuses 'should reflect PPI claim losses'

Mon, 23 Jan 2012 10:49:53 GMT

Bankers' bonus payments should be reduced to account for the amount of money that institutions have lost through payment protection insurance (PPI) payouts.

This is the view of industry regulator the Financial Services Authority (FSA), which has called on bank directors to recoup some of the huge sums that have been lost as a direct result of mis-sold PPI cover.

A pot containing almost £6 billion has been set aside for the UK's biggest five banks to cover successful PPI claims and, although the FSA has no power over bankers' bonuses, it is increasing the pressure on shareholders.

Earlier this month, an FSA spokesperson commented: "We are vigorously engaging with the major UK banks to ensure they comply with the FPC's recommendation to retain capital by reducing distributions such as bonuses."

Last week, prime minister David Cameron insisted that the government was committed to ensuring bankers at companies that have been the subject of a taxpayer bail-out - such as Lloyds and the Royal Bank of Scotland - will not receive excessive bonuses this year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Insurer urges providers to be clear on PPI cover

Fri, 20 Jan 2012 13:31:44 GMT

A company has urged brokers to be extra careful when advising clients on payment protection insurance (PPI).

Leaders at Berkeley Alexander told myintroducer.com that with recent statistics suggesting that levels of unemployment are on the rise, banks and insurers need to be extra careful that they are not mis-advising clients.

Indeed, managing director Geoff Hall suggested that policy providers need to ensure that customers fully understand the differences between PPI and mortgage payment protection insurance (MPPI), which are two separate packages altogether.

Many banks and insurers have landed themselves in hot water recently because they have mis-sold such policies to customers who did not actually need them as they were protected by other cover plans.

"MPPI and IP are essential products for a large sector of the UK population, and when sold properly will provide real peace of mind to clients," Mr Hall was quoted as saying.

Defaqto's banking specialist David Black recently told This is Money that many banks have been selling "useless" insurance packages to unsuspecting customers in recent years.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges news: Government to reign in bonuses

Fri, 20 Jan 2012 09:54:32 GMT

People who have been hit with excessive bank charges in the past have learned that the UK government is planning to reign in the bonuses received by fat cat bankers.

Prime minister David Cameron revealed yesterday (January 19th) that banks that are part-owned by the state as a result of bail-out efforts would be limited in the amount of perks they can offer to their senior staff.

Mr Cameron stated that cash bonuses at the Royal Bank of Scotland and Lloyds Banking Group would be restricted to £2,000.

This move comes shortly before bonus payments for 2011 are set to be announced and many fed-up taxpayers will be watching closely to see how much bankers receive.

"If there is a bonus [at RBS] it will be a lot less than it was last year," the prime minister insisted.

In his New Year address earlier this month, Mr Cameron pledged to curb the excessive bonus culture that has caused so much resentment towards the financial services sector.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges news: Britons sacrifice heating to pay mortgages

Thu, 19 Jan 2012 15:49:47 GMT

Many households are sacrificing heating in order to cut down on energy bills so they have more cash free to avoid bank charges for late mortgage payments.

According to new research conducted by YouGov on behalf of Shelter, 22 per cent of people have trimmed their electricity and gas consumption so they can afford to pay for their accommodation.

This is in addition to the 34 per cent who admitted to spending less on food so that they did not fall behind on repayments.

Chief executive at the charity Campbell Robb labelled the findings as "staggering".

"It demonstrates the tough choices families are now having to make, between heating their home, putting a decent meal on the table or paying for the roof over their head," he commented.

A recent survey undertaken by the Money Advice Trust indicated that 20 per cent of the UK's adult population are facing a constant battle to manage their debt, with 1.54 million people seeking professional financial advice from the firm in 2011.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

People should save compensation from PPI claims, expert says

Thu, 19 Jan 2012 14:43:48 GMT

People who receive a lump sum - such as compensation from a payment protection insurance (PPI) claim - should put the money away for a rainy day.

This is the view of director of Chapters Financial Limited Keith Churchouse, who suggested that having a nest egg to fall back on could be vital as the cost of living continues to rise.

He stated that in an ideal world Britons should be saving between three and six months worth of wages in a bank account in case unexpected bills need to be paid.

However, the financial expert accepted that this is increasingly difficult considering recent pay freezes at many companies and the high rate of inflation.

"If they [UK citizens] are in a fortunate position to be in receipt of some money from somewhere, then think very carefully about saving this," Mr Churchouse commented.

This comes shortly after the Citizens Advice Bureau revealed that nearly half of Britons are worried about the rising cost of energy bills, with many suggesting they may struggle to pay their next bill.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Consumer confidence 'at a low ebb'

Thu, 19 Jan 2012 10:39:29 GMT

More and more Britons are in great need of compensation from a payment protection insurance (PPI) claim, as a new study has revealed that consumer confidence is near rock bottom.

Nationwide's Consumer Confidence Index recorded its second lowest ever reading in December 2011, as many UK residents continue to struggle financially.

Chief economist at the building society Robert Gardner said that although the figures were disappointing, they were hardly surprising.

He added that rates of unemployment grew to their highest level for 15 years in the third quarter of last year and the ongoing uncertainty throughout the eurozone is not helping matters either.

"The cost of living continued to rise at more than twice the rate of underlying wage growth, putting further pressure on household budgets and bearing down on sentiment," he remarked.

A recent study by Bright Grey showed that one in three British workers have no disposable income whatsoever and more people are struggling to cover their bills with their monthly wages.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claims news: Insurers offering 'useless packages'

Wed, 18 Jan 2012 15:23:32 GMT

More consumers could be looking for bank refunds in the near future, as institutions are said to be pushing "useless" insurance packages onto customers.

According to analysts at Defaqto, there is a growing number of banks and insurers who are offering expensive cover that is not required.

Indeed, the organisation's banking specialist David Black told This is Money that Britons need to be careful what they sign up for when they take out a loan, credit card or mortgage.

"There is a huge appetite in banks for selling these kinds of products to existing customers - banks like to call it 'deepening the relationship'," he was quoted as saying.

In many cases, insurers are encouraging vulnerable customers to take out a policy for electronic goods that are already protected by existing home contents cover.

The Financial Ombudsman Service revealed yesterday (January 17th) that the number of payment protection insurance claims it has been forced to deal with has grown sharply in the past year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim news: Accountholders 'unwilling to switch'

Wed, 18 Jan 2012 11:39:38 GMT

Many people who have filed a bank claim in the past are still reluctant to switch their account provider, new research has suggested.

According to a study conducted by Halifax, one in ten Britons still use the bank account that they opened when they were under the age of 15.

Further to this, one in three adults have continued to keep their cash in the account that they first set up between the ages of 16 and 24.

Other figures reiterate many people's reluctance to update their bank package, as more than one in four have held their existing account for over 26 years.

Around 17 per cent stated that their parents' choice of bank had the biggest influence on their own selection.

Nearly a third of the survey respondents said that nothing would persuade them to join another bank, although the majority indicated that financial incentives would eventually sway them.

Earlier this week, consumer magazine Which? called for action to be taken to prevent banks charging excessive amounts when customers exceed their overdraft limit.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card claim news: Consumers unhappy with plastic providers

Wed, 18 Jan 2012 10:51:32 GMT

Many consumers - some of whom will have taken out credit card payment protection insurance - are generally unhappy with the service provided by their bank.

A new survey published today (January 18th) by uSwitch.com has found that satisfaction levels among credit card users continue to deteriorate and are currently at an all-time low.

The research indicated that 25 per cent of surveyed Britons have three or more credit cards, which is down from 30 per cent at the same point last year.

Personal finance expert at the comparison website Michael Ossei suggested that although people are unhappy with the standard of customer service offered by their card provider, many have little choice but to use their cards because they are in so much debt already.

"[With] high street banks still providing some of the worst service, consumers should look around further afield at new providers for the best credit card for them," he remarked.

Research firm Defaqto recently declared that some banks are offering increasingly attractive rates on credit cards in order to gain more customers during these austere times.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Number of PPI claims soars in 2011

Tue, 17 Jan 2012 16:17:04 GMT

The number of payment protection insurance (PPI) claims handled by the Financial Ombudsman Service (FOS) grew by ten per cent in the last three months of 2011, it has been revealed.

Senior members of the organisation suggested that it processed 55,907 complaints during the last quarter of the year.

The bank or insurance companies alleged to have mis-sold PPI cover were found guilty in more than half of the cases that it was forced to deal with.

Banks and insurers who throw out claims made by their customers often find that the grievances are taken up by the FOS and leaders have indicated that PPI issues are now accounting for a major proportion of the body's workload.

Many people have been left out of pocket because firms have sold them insurance policies on top of mortgages, credit cards or loans that essentially protect them if they lose their job for whatever reason.

Earlier this month, the Press Association reported that up to 130,000 PPI claims would be processed in 2012-13.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claims news: 1 in 3 Britons 'have nothing left from wages'

Tue, 17 Jan 2012 15:25:53 GMT

One in three Britons could be in desperate need of a payout from a payment protection insurance (PPI) claim, as they have nothing left for themselves once they have paid their bills each month.

A new survey conducted by Bright Grey showed than more than 16 million Britons have no disposable income whatsoever.

In addition to this, ten per cent of the population stated they spend more than their salary and have started to see their debt levels grow as a result.

Proposition director at the firm Roger Edwards believes 2012 will continue to be a bleak year for UK consumers.

"The fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in," he commented.

Research conducted by uSwitch.com has discovered that two-thirds of Britons have experienced a pay freeze in the past 12 months, with many saying they will have to significantly reign in their spending in order to cope.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Which? seeks action over 'exorbitant' bank charges

Tue, 17 Jan 2012 11:29:23 GMT

Consumer magazine Which? has called for action to be taken to cut down on complicated bank charges that are issued when people use unauthorised overdrafts.

Most institutions penalise customers who have drifted into the red or have exceeded their agreed overdraft limit by hitting them with hefty fines.

Which? has argued that bank customers are finding it increasingly difficult to calculate how much they might be charged for surpassing their credit limit and has asked for more transparency throughout the sector.

Chief executive at the publication Peter Vicary-Smith believes that legislative changes made by the government to tackle these fees have not gone far enough.

"It's extremely disappointing to find that bank charges are still too high, too complex and impossible to compare," he remarked.

Last month, the government introduced a new ruling that prohibits companies from issuing credit card charges to consumers who choose to pay for goods using their plastic.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges news: Consumers 'should visit IFAs'

Mon, 16 Jan 2012 14:16:03 GMT

Consumers who have felt hard done by when being issued with excessive bank charges in the past have been urged to shun major institutions in favour of independent financial advisers (IFAs) when seeking expert guidance.

Leaders at Which? suggested that people looking for financial advice will be better off visiting IFAs rather than banks themselves.

However, the consumer magazine also noted that finding the most cost-effective IFAs can be difficult, as there is no set structure in place to limit how much they charge for their services.

Indeed, a study conducted by the publication showed that one IFA in the north-west of England quoted £2,000 more to set up a protection policy on an investment than an adviser in Scotland.

"Financial advisers should be much more transparent in their pricing, providing details of all their charges upfront," commented Which? chief executive Peter Vicary-Smith.

Many people have become disillusioned with the banking system, after City estimates compiled by Reuters showed the top five banks will each earn an average of £137 million a day throughout the year.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claim news: Nearly half of Britons worried about fuel bills

Mon, 16 Jan 2012 13:02:10 GMT

Nearly half of British consumers are concerned that they will not be able to afford their next fuel bill, which could lead to more people seeing if they are eligible to file a payment protection insurance (PPI) claim.

According to the Citizen's Advice Bureau, 43 per cent of survey respondents feel they may struggle to pay their next energy bill, as prices have risen sharply in recent months.

One in two also said that the cost of heating their homes would have a big impact on their finances during 2012.

In November 2011, eight-times more people contacted the Bureau with concerns over power rates when compared with the same month in 2010.

"Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers," commented energy and climate change secretary Chris Huhne.

Despite this, EDF Energy, Scottish and Southern Energy and British Gas all announced cuts to their rates last week.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

easyJet 'will still issue credit card charges'

Mon, 16 Jan 2012 12:17:52 GMT

Budget airline easyJet has moved to increase the transparency surrounding its booking fees, but it will continue to issue credit card charges.

The government had recently called for airlines to issue fewer hidden fees that only appear once a customer has already been lured into purchasing a flight with the promise of cheap rates.

Previously, passengers who wished to pay for flights online with their debit card were forced to pay an additional booking surcharge.

In order to appease the government, easyJet bosses have introduced an administration fee of £9 that will be added to the overall cost of a flight much earlier in the buying process.

However, bosses also revealed that credit card holders will still be hit with a fee that will cover handling costs.

"These changes have been made in order to address the concerns raised by consumer bodies and regulators across the European Union," an easyJet statement read.

Last week, easyJet launched a discount sale on up to 25 million seats on some of its services in 2012.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claims news: Action needed to protect consumers

Fri, 13 Jan 2012 12:23:04 GMT

Consumers who have been forced to file a payment protection insurance (PPI) claim in the past should have been safeguarded far better by financial regulatory organisations, according to the Treasury Select Committee.

In its new report into the Financial Conduct Authority, the body suggested that a fresh approach to legislation is required in the UK.

Chairman Andrew Tyrie believes that the Financial Services Authority (FSA) has become too expensive to run and has been ineffective in preventing banks from issuing unfair charges to customers.

"The plain fact is that the FSA did not succeed in protecting consumers from spectacular regulatory failures. The mis-selling of PPI and endowment mortgages are just two examples," he remarked.

Bosses at Consumer Focus have also welcomed the committee's report, with the group's director of financial services Sarah Brooks agreeing that stronger provisions are needed to safeguard Britons from excessive bank charges.

She believes that confidence is currently low among consumers because of the sheer number of PPI claim cases that have arisen recently.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim news: More energy firms cut prices

Fri, 13 Jan 2012 10:50:17 GMT

Struggling households who may have filed a payment protection insurance (PPI) claim have been boosted by the news that two more energy companies have reduced their rates.

Following in the footsteps of EDF Energy - which cut its gas bills by five per cent earlier this week (January 11th) - British Gas and Scottish and Southern Energy (SSE) have now reduced their prices.

Director of consumer policy at comparison website uSwitch.com Ann Robinson stated that the UK's "big six" suppliers were now "falling like dominoes".

However, she said it is disappointing that none of the firms have sanctioned reductions to both gas and electricity rates.

The news has also received a lukewarm reception from Friends of the Earth's energy campaigner Paul Steedman, who suggested the adjustments are not substantial enough to restore people's faith in the energy sector.

"Tinkering in the margins of massive price hikes won't fix our broken energy system - the big six are making billions in profits from their addiction to fossil fuels," he commented.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges being waived to entice new customers

Thu, 12 Jan 2012 16:48:46 GMT

British consumers will find more bank charges being waived by the major institutions, as the competition for customers begins to hot up.

According to banking analyst at data firm Defaqto David Black, banks are now "putting their heads above the parapet", This is Money reports.

Some providers are offering zero per cent deals on overdrafts, while others are offering free PPI cover.

Mr Black said that the emergence of some potentially heavyweight players in the industry such as Tesco - which is rumoured to be considering the introduction of current account services - has forced established organisations to make their products more appealing.

"It's quite difficult to lure people away from their current account and these deals are aimed at switchers," Mr Black told the news provider.

Richard Branson's Virgin Money brand could be one company that shakes the banking sector up the most, after the firm assumed control of the failed Northern Rock at the start of the year.

He visited Newcastle-upon-Tyne this week, as part of his attempts to rebrand the organisation.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims news: 2 in 3 have suffered a pay freeze

Thu, 12 Jan 2012 12:16:52 GMT

More people could be looking to see if they are eligible to make a payment protection insurance (PPI) claim in order to boost their coffers, after a study by uSwitch.com showed that two-thirds of Britons have suffered a pay freeze in recent years.

The study indicated that a mere 30 per cent of workers are expecting a pay rise this year, although the average increase will stand at just 2.1 per cent - half the current rate of inflation.

More than half of the survey respondents who have seen their wages stagnate said they would have to severely reign in their spending in order to cope.

This news could hardly come at a worse time for many UK workers, as fuel prices remain high, rail fares have increased and energy bills have also spiralled upwards recently.

Bosses at the Debt Advice Foundation recently revealed that the number of calls it receives from cash-strapped people will double in January, as many will have overspent over the Christmas period.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: More people use equity to reduce debts

Thu, 12 Jan 2012 11:12:59 GMT

More people could be hoping that a payment protection insurance (PPI) claim will result in compensation, as many Britons are being forced to look for new ways to tackle their mounting debts.

According to director general at the Safe Home Income Plans Andrea Rozario, a growing number of homeowners are seeing equity release as a viable option for reducing their arrears.

She stated that this is particularly evident among those who are heading towards retirement.

Ms Rozario believes there are a number of reasons for ageing UK workers to boost their income, as life expectancy has generally increased, while healthcare costs are rising.

"I think it is more and more likely that people will start to consider equity release as a logical option," she commented.

A recent study by the Money Advice Trust showed that one in five Britons are struggling to cope with their debts, with 1.54 million people seeking free financial guidance from an expert adviser in 2011 - up from 1.4 million in 2010.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card PPI news: Spending on plastic 'in decline'

Wed, 11 Jan 2012 14:26:06 GMT

Britons who may have filed a credit card payment protection insurance (PPI) claim in the past have started to cut the amount of money they spend on goods.

According to a new study released today (January 11th) by Santander, credit card spending has fallen by four per cent in the past 12 months.

This is despite the fact that the use of credit cards actually increased by one per cent during the same period, which suggests that the average value of each transaction has declined.

The research also indicated that spending on toys and sports equipment took the biggest hit, with a 24 per cent reduction being recorded in the past year.

Managing director at Santander Cards Callum Gibson said the figures are unsurprising, as many people are struggling financially.

"During times of austerity, you'd expect cut-backs to hit non-essential items like holidays and clothes, and our customer data supports this," he commented.

Moneysupermarket.com recently discovered that more banks are offering attractive periods of low interest in order to encourage more people to take out a credit card.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claim news: Consumers unhappy with energy firms

Wed, 11 Jan 2012 13:09:14 GMT

More homeowners may be looking to see if they are eligible to file a payment protection insurance (PPI) claim, as many are increasingly disillusioned with the huge amount they have to fork out for energy bills.

A new study conducted by Which? showed that most British consumers are dissatisfied with the services provided by the "big six" power companies.

This, Friends of the Earth's energy campaigner Paul Steedman said, is unsurprising given recent changes to tariffs.

He believes the big six - which includes E. ON, EDF Energy, Scottish Power, British Gas, npower and Scottish and Southern Energy - have too much of a stranglehold on the industry.

"Ministers must take urgent action to protect cash-strapped families and fix our broken electricity system by investing in clean, home-grown power we can all afford," he remarked.

However, there are signs of hope for struggling Britons, as EDF Energy has announced a five per cent drop in its prices today (January 11th), with bosses suggesting that wholesale gas rates have fallen, which has enabled the firm to pass the savings on to customers.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Credit cards can be handy if used correctly

Wed, 11 Jan 2012 11:47:46 GMT

Although some credit card users may be in the middle of a payment protection insurance (PPI) claim having been mis-sold the cover, an expert has suggested that having plastic to fall back on can be advantageous.

Editor of CashQuestions.com Annie Shaw believes there are many benefits to having a credit card, but consumers must use them responsibly.

Indeed, she noted that paying for goods with a credit card gives people more protection if the company they are buying from goes bust before they receive their items.

However, Ms Shaw added that Britons who use their plastic because they do not have enough cash in their bank are playing a dangerous game.

"It becomes very worrying if people are using it because they actually don't have enough money and then they are not paying off that bill every month," she commented.

A recent study conducted by the Post Office showed that more than one-third of credit card holders will rely on borrowed money to make everyday purchases in January.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Richard Branson defends stance over bank charges

Tue, 10 Jan 2012 13:53:55 GMT

Richard Branson has defended his stance over potential bank charges that could be levied on new Virgin Money customers.

The famous entrepreneur's company took over Northern Rock at the start of the month and reports suggested that under the terms of the firm's rebranding, people opening new accounts would be forced to pay £60 a year for the privilege.

However, he told the Financial Times that the point of introducing the charges was to increase transparency and prevent customers from being hit by hidden fees that are often issued by banks.

He hinted that "free banking" would be available and that new clients would have a number of choices when opening an account.

Mr Branson spoke out during a visit to the main Northern Rock branch in Newcastle-upon-Tyne. He insisted that rebranding the organisation was crucial because of the tarnished reputation of the old name.

Virgin Money's acquisition of the failed institution was first reported in November 2011 and the deal was said to be worth £747 million.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI refunds news: One in five struggling with debts

Tue, 10 Jan 2012 11:47:13 GMT

A large number of Britons appear to be in desperate need of a payment protection insurance (PPI) refund, as new figures have shown that one in five are struggling to manage their debt.

According to the Money Advice Trust, around 20 per cent of the UK's adult population are facing a constant battle to keep their arrears under control.

The organisation stated that 1.54 million people sought help from free expert debt advisers in 2011 - up from 1.4 million in 2010.

However, bosses believe this figure will rise sharply again in the first few months of 2012 as up to 2.5 million individuals are said to be in the red.

Chief executive of the Money Advice Trust Joanna Elson said that increased unemployment coupled with rising living costs suggest the outlook for the near future is bleak.

"2011 was a tough financial year for many families across the UK; unfortunately more people are likely to struggle in 2012," she remarked.

The Debt Advice Foundation recently indicated that the number of calls it receives tends to double in January.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Payment protection 'is essential for the self-employed'

Tue, 10 Jan 2012 10:51:29 GMT

Payment protection insurance (PPI) is essential for people who are self-employed, it has been claimed.

Jonathan Davis - managing director of Jonathan Davis Wealth Management - believes that Britons who work for themselves need to take out cover that safeguards their income as a matter of urgency.

He stated that many families are reliant on the money that is brought in by contractors and there could be severe repercussions if the main breadwinner becomes ill or injured.

"If they can't work, they can't earn - that to me is an immediate essential," Mr Davis commented.

"So [those who are] self-employed have to have income protection," he added.

Mr Davis also highlighted the importance of life assurance, as some families may need to be looked after financially if a self-employed person suddenly dies.

Although PPI cover can be important to freelance workers, it has proven to be a contentious issue, with many banks mis-selling income protection covers to customers who have taken out home loans or credit cards.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges news: Youngsters are committed to saving

Mon, 09 Jan 2012 16:37:18 GMT

Young Britons who are hoping to receive compensation having been handed unfair bank charges are still keen to use the UK's various institutions in order to save money.

A new study conducted by NS&I has indicated that 39 per cent of young men aged between 16 and 34 have outlined a specific saving goal in 2012.

People aged between 25 and 34 were found to be putting aside £104 per month, which was well above the national average of just £88.

Nearly half said they were saving specifically to get on to the property ladder as soon as possible, while 23 per cent suggested they were attempting to build a nest egg for their future.

NS&I savings spokesperson John Prout was "delighted" with the findings, which he believes showed a great deal of maturity among the younger generation.

"If you're struggling with your finances, January is a great chance to start afresh and set achievable goals to work towards over the coming year," he remarked.

Skipton Building Society chiefs recently stated that 40 per cent of Britons will attempt to improve their financial situation this year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Providers offer more credit card deals

Mon, 09 Jan 2012 11:28:37 GMT

People who have been mis-sold payment protection insurance (PPI) on their credit cards in the past are among those being targeted by new promotional deals offered by providers.

According to a new study by financial comparison website moneysupermatket.com, lenders are attempting to lure potential credit card customers with promises of extended low interest periods.

Although the average APR has risen to 18.41 per cent in recent weeks, the website's head of banking Kevin Mountford suggested that the average length of promotional rates offered by banks is at a record high.

The average length of zero per cent balance transfers has reached 22.4 months - a significant increase on the figure of 16.2 months in January 2011.

"There is no doubt that the appetite for lenders to attract new customers has increased," commented Mr Mountford.

A recent survey conducted by the Post Office showed that more than 12 million credit cardholders will rely on their plastic to pay for utility bills and other essential household payments this month.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claims news: Debt advice hotlines receiving more calls

Fri, 06 Jan 2012 15:59:40 GMT

Many people may wish to check if they are eligible to make a payment protection insurance (PPI) claim, as plenty of Britons have left themselves in a financial mess having overspent at Christmas.

According to managing director of the Debt Advice Foundation David Rodger, the number of calls received by the organisation doubles in January each year.

He said that in some cases, consumers are forced to borrow more money in order to cover their living expenses in the new year - a trend that he labelled "particularly worrying".

Indeed, Mr Rodger stated that taking out credit cards or payday loans in order to keep up with utility bills or rent payments is "not tackling the underlying problem".

"Every year, enquiries to the charity's debt advice helpline double in January, as the reality of overspending at Christmas hits home," he commented.

Homeless charity Shelter revealed this week that nearly one million homeowners and renters have been forced to take out payday loans in the past year in order to meet monthly mortgage and rent payments.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: Energy bills set to fall?

Fri, 06 Jan 2012 12:47:19 GMT

Many people who have made a successful payment protection insurance (PPI) claim may have been forced to spend some of their compensation on energy bills, as the price of gas and electricity has increased sharply recently.

However, there could be a glimmer of hope for hard-up homeowners, as one power supplier - OVO Energy - has announced a reduction to its rates today (January 6th).

The firm has slashed its prices by five per cent, following in the footsteps of Co-operative Energy, which lowered its own rates by three per cent last month.

Energy expert at uSwitch.com Tom Lyon said the fact that smaller firms are passing on savings to consumers is encouraging and the major energy providers should take note.

This is a view shared by director of energy at Consumer Focus Audrey Gallacher, who feels that the pressure is on the "Big Six" providers to make bills more affordable for customers.

"The further the wholesale price falls the greater will be the clamour for others to follow OVO's lead," she remarked.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims 'must be sorted this year'

Fri, 06 Jan 2012 10:49:19 GMT

A record number of payment protection insurance (PPI) claims will be processed in the next financial year, it has been confirmed.

Leaders at the Financial Ombudsman Service (FOS) have stated that up to 130,000 PPI claims would be resolved in 2012-13, the Press Association reports.

This is a sharp rise on the 109,500 cases that have been handled this year and more than double the 60,000 payouts that were made in 2010-11.

Principal ombudsman at the FOS Tony Boorman said the organisation was disappointed with the length of time that some banks and insurers were taking to settle disputes.

"The delays and inconvenience that this causes consumers means the ombudsman now has to gear up for unprecedented demand and volatility in our workload," he commented.

Mike Walker of Darwin Matthews Solicitors recently told Shropshire Live that people in the area should check to see if they are eligible to make a PPI claim, as many bank customers may be unaware that they were paying for the cover when taking out a loan or credit card.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claim news: Britons struggle to pay mortgages

Thu, 05 Jan 2012 16:11:28 GMT

A large number of Britons are in urgent need of a payout from a payment protection insurance (PPI) claim, as many are struggling to meet rent and mortgage payments.

According to a new study conducted by Shelter, nearly one million UK citizens have taken out a payday loan in order to ensure their accommodation costs were covered in the past 12 months.

The organisation also revealed that as many as seven million people are reliant on some other form of help such as a credit card.

Shelter's chief executive Campbell Robb labelled the findings as "shocking" and insisted that using payday loans - where workers borrow money before their monthly wage goes into their bank - to cover mortgage costs is "totally unsustainable".

"It can quickly lead to debts snowballing out of control and can lead to eviction or repossession and ultimately homelessness," he commented.

Bernard Clarke, communications manager at the Council of Mortgage Lenders, has also urged struggling homeowners to seek professional advice if they cannot cover their monthly repayments.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: More Britons reliant on credit cards

Thu, 05 Jan 2012 13:06:17 GMT

More than 12 million credit card holders - some of whom may be eligible to make a payment protection insurance (PPI) claim - will rely on their plastic to pay for everyday items this month.

A new survey conducted by the Post Office has indicated that one in three people who hold a credit card will be forced to use it more often than they might wish in January, as money continues to be tight for many households.

Over two million respondents stated they would spend more this month than they had done in January 2011.

Around one in ten will use their plastic to pay off outstanding debts from Christmas, while seven per cent will add energy bills to their cards.

"Whilst it is good to see so many people intending to manage their credit card purchases and repayments sensibly, there are still too many people who aren't thinking of the consequences," commented head of credit cards at the Post Office Az Alibhai.

Payment protection insurance was added to many credit card plans, but it has since emerged that customers were often mis-sold the cover, which has led to a flurry of compensation claims.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Solicitor urges Britons to make PPI claims

Thu, 05 Jan 2012 11:48:27 GMT

A Shropshire-based solicitor has urged people in the area to check if they are eligible to make a payment protection insurance (PPI) claim.

Mike Walker of Darwin Matthews Solicitors told Shropshire Live that some credit card and loan customers may not have been aware that their bank was charging them for PPI.

He said that due to the high interest rates on the policies, many bank customers could be entitled to claim back thousands of pounds.

"Some people may have been paying for the insurance for quite a while and then asked the Bank what it was and then cancelled it," he told the news provider.

Following a recent High Court ruling, UK banks have been forced to set aside £7 billion, which will be used to settle future PPI claim cases.

More than £1 billion was paid out to PPI claimants in the first ten months of 2011 alone, according to the Financial Services Authority.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges news: Huge profits expected in 2012

Wed, 04 Jan 2012 13:10:08 GMT

People who have been affected by sizeable bank charges will see the UK's five main institutions claw in profits of £35 billion this year.

According to City estimates compiled by Reuters, the top five banks will each earn an average of £137 million a day throughout the year.

HSBC is expected to be one of the strongest performers, with economists suggesting the bank will amass profits of £15.4 billion over the next 12 months.

This news has upset hard-up consumers and business owners who have struggled to obtain loans to help their enterprise grow.

Phil McCabe of the Forum of Private Business told the Daily Mail that the findings reiterate the UK's desperate need for greater competition in the banking sector.

"These expected profit figures show that the banks are adept at making money in fair weather and foul," he remarked.

Prime minister David Cameron recently stated that the government would do all it could to ensure bankers do not earn disproportionate bonuses while the rest of the UK is left to struggle financially.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claim news: One in three confident over finances

Wed, 04 Jan 2012 11:58:45 GMT

One in three UK citizens - some of whom may have outstanding payment protection insurance (PPI) claims - are confident they can meet their savings targets this year.

A new study conducted by Skipton Building Society has found that 40 per cent of people have made a New Year's resolution to improve their finances.

Around 66 per cent of this number believe they will be able to stick to their plans, while 14 per cent are "very confident" of doing so.

Younger workers appear to have the most determination, as 72 per cent claimed they would meet their targets.

Despite this, bosses at Skipton believe May 6th will be the date when most people will have given up on their resolutions.

A new survey undertaken by first direct has discovered that more than 50 per cent of Britons made financial decisions in 2011 that they later regretted. Indeed, one in three said they wished they had done more to settle some of their arrears throughout the year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims news: Energy bill hikes to impact finances

Tue, 03 Jan 2012 16:36:17 GMT

Homeowners who have lodged payment protection insurance (PPI) claims could be in desperate need of a speedy payout, as energy bills are set to cripple many people's finances in 2012.

According to moneysupermarket.com, 40 per cent of all annual power consumption is used in the winter months, which may leave many households counting the cost when their next quarterly bill arrives.

Gas prices recently went up by 17.4 per cent and electricity rates increased by 10.8 per cent at the same time. As well as this, three fixed rate tariffs offered by E. ON, British Gas and Scottish Power are all due to end soon, which could provide a nasty surprise for some customers.

"The start of a new year is an expensive time as consumers deal with a festive financial hangover - a huge energy bill will come as an additional nasty shock," commented utilities manager at the website Scott Byrom.

A recent study by uSwitch.com showed that 13 per cent of Britons will have no disposable income whatsoever once they have shelled out for energy bills in 2012.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim news: PM aims to end 'excessive banker bonuses'

Tue, 03 Jan 2012 16:06:33 GMT

Consumers who have filed a payment protection insurance (PPI) claim in recent months have been reassured by the prime minister that poor performing bankers will not receive excessive rewards.

In his New Year address, David Cameron insisted that more will be done to ensure high fliers in the financial sector will not receive disproportionate bonus payments while other members of society struggle to make ends meet.

He said the government was committed to ending "excess in the city" and that Britain would get through the tough economic climate expected in 2012.

"While a few at the top get rewards that seem to have nothing to do with the risks they take or the effort they put in, many others are stuck on benefits," Mr Cameron commented.

The Association of British Insurers was expected to stage meetings between investors and bosses at the UK's top five banks in order to discuss ways to curb "out-of-control" bonus perks, the Daily Telegraph reports.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim news: Britons regret financial decisions

Tue, 03 Jan 2012 14:52:18 GMT

Many Britons who have received a payout from a payment protection insurance (PPI) claim regret not saving the money or using it to pay off their debts.

A new survey conducted by first direct has indicated that more than half of respondents were angry with themselves for not putting enough money aside.

One in three said they regretted not settling more of their arrears throughout the year, while 13 per cent wished they had paid more into their pension.

Head of savings at first direct Bruno Genovese believes it is vital that people get their finances in order sooner rather than later.

"Ensuring that you plan your long-term spending is extremely important as good organisation can help you pay off debts more quickly," he remarked.

A recent study by Gocompare.com suggested that 49 per cent of UK citizens want to ease their money troubles as a matter of urgency in January, with 40 per cent saying they wanted to reduce their expenditure.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank reclaim news: Bankers could sue over low bonuses

Tue, 03 Jan 2012 11:51:29 GMT

People who have been involved in a bank reclaim case have heard that some City bankers are planning to launch legal proceedings over their bonus payments.

According to lawyers at Kingsley Napley, a growing number of bankers have been seeking legal advice with a view to suing their bosses over what they perceive to be low bonus perks.

One claim, believed to be in the region of £1.5 million, was lodged in 2011 and more are expected to follow this year, the Daily Telegraph reports.

Employment partner at the law firm Richard Fox told the news provider that bankers are now calculating how much they should be owed based on their company's profits.

"We're seeing an increase in bankers seeking advice on their options. There are people [who will be] disgruntled they are getting less bonuses so why wouldn't they?" he was quoted as saying.

Last month, Nick Clegg vowed to narrow the gap between rich and poor in the UK by clamping down on the "bonus culture" in the banking sector.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Many try to save money on New Year's Eve

Fri, 30 Dec 2011 10:09:55 GMT

Payment protection insurance (PPI) claims and credit card refunds could give people the financial boost they need to have enough spare cash to celebrate.

New research from the Post Office shows that many individuals are worried about the impact that a big night out may have on their finances.

The report revealed that 36 million people plan on counting down to 2012 while staying in this year, with 14 per cent stating they were doing so in an effort to save money.

In total, 27 per cent want to spend less on New Year's Eve than they did last year.

PPI claims could even be useful for those who will host extravagant parties as Gerry Barrett, the group's head of home insurance, said sometimes it can be more expensive to stay in as people try to impress their friends.

Recent research from MoneySupermart.com found that budgets will continue to be stretched next year, with many opting not to renew their gym membership in order to save money.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Many expect incomes to be stretched in 2012

Thu, 29 Dec 2011 07:42:10 GMT

Those looking for ways to make their incomes stretch in the new year could check to see if they are eligible to make a payment protection insurance (PPI) claim or seek a credit card refund.

According to a new survey conducted by uSwitch.com, many people are worried about how their salaries will cope with the high cost of living, which is set to continue in the UK.

Over a quarter of Brits feel that financial circumstances will remain difficult next year, while 13 per cent believe they will have no disposable income available to them after they have dealt with everyday expenditure such as gas and electricity bills.

"With disposable income being squeezed, the New Year is a great time to get household finances in order to try to start the next year in the best financial shape possible," said the group's personal finance expert Michael Ossei.

Earlier this month, the Office for National Statistics announced that the consumer price index inflation in November was 4.8 per cent.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: People aim to make financial changes in 2012

Wed, 28 Dec 2011 12:53:02 GMT

Many people in the UK could be checking to see if they are eligible to seek a payment protection insurance (PPI) claim in the new year, as they make a concerted effort to give their finances a thorough overhaul.

New research from Gocompare.com has found that 26 million British consumers will make New Year's resolutions and fiscal concerns are people's number one priority.

The report found that 49 per cent of people in the UK want to ease their money concerns in January - three percentage points higher than the common resolution of participating in more exercise.

Of those who wanted to make financial improvements, 40 per cent stated they would like to reduce their expenditure, while 35 per cent hoped to lower the amount they owed.

"Unlike some of the health and lifestyle resolutions, there are several easy, practical steps people can take to make a real change to their finances in 2012," said the site's business development director John Miles.

Recent research from uSwitch.com found that Christmas spending will leave a quarter of British consumers in debt.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: First-time buyers 'still struggling with deposit requirements'

Wed, 28 Dec 2011 09:13:05 GMT

Payment protection insurance (PPI) claims and credit card refunds could provide the financial lump sum many people looking to buy a property require.

A new report from Halifax has revealed mixed results for first-time buyers in the UK. Houses are now more affordable than at any time in the last eight years, but many people still cannot afford to take advantage of this.

The study found that only 187,000 people took their first step on to the property ladder in 2011, as many banks required large deposits to be paid before they finalised any mortgage deals.

Martin Ellis, housing economist at Halifax, said that these favourable conditions were created by the collapse of the property market and the subsequent drop in houses prices since 2007.

"Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market," he added.

Recent research from Santander found that 28 per cent of would-be homeowners need to take a second job to help save for a deposit.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit Card Claim: Surcharges to be outlawed

Fri, 23 Dec 2011 14:45:28 GMT

People who use credit cards to pay for goods and services will not experience misleading and confusing payment surcharges in the future.

New government proposals will be implemented by the end of next year to prevent businesses charging excessive amounts to customers who do not pay in cash.

Organisations will still be able to pass the cost of the transaction on to customers, but cannot charge any more than is necessary.

Consumer minister Edward Davey said that the Consumer Rights Directive will take further consultation into account to protect the customer from high credit card charges.

Financial secretary to the Treasury Mark Hoben stated: "[Consumers] have a right to understand the charges they may incur up front and not be hit through a hidden last minute payment surcharge."

Commenting on the announcement, Which? said it was a substantial victory for UK card users and businesses should make the required changes as soon as possible.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank Claim: Consumers 'should be mindful of interest rates'

Fri, 23 Dec 2011 10:23:08 GMT

Those people who have used credit cards to fund their festive purchases this year may want to check to see if they are eligible to make a payment protection insurance (PPI) claim or seek loan refunds.

Rachel Springall, spokeswoman for Moneyfacts.co.uk, said plastic purchases have the potential to make a person's financial situation worse and consumers should always be aware of how much their loan provider charges them in interest.

She said that consumers should avoid those lenders with high interest rates and find options more suitable to their needs.

Ms Springall also advised individuals not to rely on their overdraft for too long.

"Customers need to be aware of interest rates or daily charges, which can soon mount up if you stay in your overdraft for an extended period of time," she stated.

This comes after Consumer Focus warned that many people were being priced out of the banking system by high charges.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claims could help over-50s cover Christmas

Fri, 23 Dec 2011 09:31:35 GMT

Payment protection insurance (PPI) claims and loan refunds could provide the financial boost many older people in the UK need to allow their finances to recuperate after Christmas.

A new report from Saga has found that the majority of families rely on their older relatives to provide much of the festive cheer.

More than half of the nation's over-50s will pay for all their children's and grandchildren's festive food and drink this year, spending almost a collective £900 million, according to the research.

Of the 9.2 million over-50s who will be providing the refreshments this year, 37 per cent state they are simply following family tradition.

The director-general of the company Dr Ros Altmann said many older people are already facing high living costs and Christmas can be one of the most expensive times of the year.

Recent research by the group found that pensioners were being severely affected by inflation, with their consumer spending power falling by more than 20 per cent since the onset of the banking crisis.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: High inflation to affect Christmas dinner

Thu, 22 Dec 2011 16:15:35 GMT

Payment protection insurance (PPI) claims and credit card refunds could be just in time to help people enjoy the full extent of their Christmas meal without having to worry about the financial implications.

According to new figures from the Office for National Statistics, the prices of many products in the average Christmas food shopping basket have increased when compared to last year's values.

The biggest rise is in the price of cream crackers, which has gone up by 50.9 per cent. Many families will see their finances stretched by the traditional Christmas turkey, as the report found prices had increased from £7.85 per kg in 2010 to £8.15 per kg.

Anyone finishing off their feast with a warm drink will pay 20.9 per cent more than last year for their ground filter coffee.

This comes after a recent report from MoneySupermarket.com found that high inflation will mean 20 per cent of the UK population will be left with debt problems by the start of the new year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Consumers increase cash withdrawals

Thu, 22 Dec 2011 14:18:48 GMT

Those people who are finding they are constantly withdrawing money from their bank accounts this Christmas could check to see if they are eligible to make a payment protection insurance (PPI) claim, or seek loan refunds.

PPI claims could provide the boost they need this year, as new research from Sainsbury's Finance has demonstrated that people in the UK are withdrawing more money than they were last Christmas.

Consumers will take out £11 billion from ATMs this year – a substantial increase from the £10.3 billion withdrawn last year.

This means that every minute during December, £246,000 will be dispensed by the UK's cash machines.

Alex Blake, head of ATMs at the company, said: "This party season make sure you don't leave getting your cash to the last minute."

PPI claims could particularly be suitable for the over-50s, as recent research from Saga found they spend more than £900 million on Christmas food and drink for their families.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Families have 'extra Christmas parties'

Thu, 22 Dec 2011 13:37:15 GMT

Payment protection insurance (PPI) claims and credit card refunds could help people cover the costs of multiple festive celebrations this year.

New research from American Express found that the traditional Christmas family party is changing, with more households opting to celebrate with separate parties with different members of the family and social circles.

This year, 30 per cent of Brits will move between celebrations hosted by family, in-laws and friends on December 25th, while 49 per cent will accommodate their loved ones by attending more than one party during the festive season.

The report also revealed that 27 per cent of hosts expect their guests to make a contribution to the fun by bringing some food or drink.

"Asking for financial contributions from a guest can be a tricky subject to raise," said the firm's head of Platinum Cashback Card Julie Hay.

According to MoneySupermarket.com, ten million people will be in debt as a result of their Christmas spending.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims could boost income levels for unemployed

Wed, 21 Dec 2011 17:11:44 GMT

Payment protection insurance (PPI) claims and loan refunds could help provide a financial boost for those families who are being affected by long-term unemployment.

The latest figures from the Trades Union Congress (TUC) show that up to 300,000 families may have been relying on Jobseeker's Allowance as their only source of income for the past 12 months.

According to the union's figures, the number of people without a job for a year has increased by 35,000 since Christmas 2010.

Areas most affected this year have been Scotland and London.

TUC general secretary Brendan Barber said: "As people gear up for the festive break, there won't be much cheer for the quarter of a million people who are spending their second successive Christmas on the dole."
This comes after recent research conducted for the Bank of England found that the majority of households in the UK had experienced an income squeeze during the last year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Interest rates 'will continue to be low in 2012'

Wed, 21 Dec 2011 10:08:50 GMT

Payment protection insurance (PPI) claims and credit card refunds could be used to offset the poor financial gains that many savers will experience next year.

High inflation rates and the Bank of England's refusal to move the base rate of interest higher than its current record-low level of 0.5 per cent have seen savers suffer this year and the trend is set to continue into 2012, states Moneysupermarket.com.

Kevin Mountford, the site's head of banking, said that the gloomy economic outlook suggests that it may be 2013 until interest rates begin to rise once more.

Subsequently, PPI claims could be useful as he added: "As increased winter fuel bills and the rising cost of living kick in, many more households will be hitting their financial tipping point so it is imperative that we try and fight back."

The latest statistics from Credit Action revealed the nature of the UK's personal finance problems.

According to the group, Citizens Advice deals with 8,910 new debt problems each day, while the average family now owes £55,808.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Many 'worried about Christmas spending'

Wed, 21 Dec 2011 10:07:09 GMT

Those worrying about the financial implications of Christmas and the added expenditure it brings could check to see if they are eligible to make a payment protection insurance (PPI) claim.

New research from uSwitch.com has revealed that 48 per cent of British consumers are more concerned about money this Christmas than they were in 2010, as the same amount believe they have less spare cash to spend.

PPI claims could provide the extra financial boost many need as 42 per cent will resort to using credit, while ten per cent state they do not know where they will get the money from.

The site's head of personal finance Michael Ossei said colon "Cash-strapped consumers will be feeling a little short of Christmas cheer after another tough financial year."

He explained that frozen pay and rising living costs had meant many household budgets are now under severe strain.

A recent survey by Gocompare.com found that one-third of Brits will reduce the number of people they buy gifts for this year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Consumers 'seeking cash flow boost'

Tue, 20 Dec 2011 16:47:36 GMT

Those people who are relying on credit cards and loans to add to their cash flow may find it more financially prudent to check to see if they can make a payment protection insurance (PPI) claim or seek a loan refund.

According to the Finance & Leasing Association (FLA), the amount of consumer lending in the UK in October was five per cent higher than in the same month in 2010, with the amount on both store cards and credit cards rising over the past year.

PPI claims could allow consumers to keep ahead of their finances as the FLA said many consumers will find themselves with large bills on the doorstep in January.

Fiona Hoyle, chief executive of the group, said it was vital families planned ahead and advised those who will turn to credit to ensure they could afford the repayments.

The latest figures from Credit Action reveal that each day in the UK £174 million is paid in personal interest.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims could lift financial spirits

Tue, 20 Dec 2011 16:42:53 GMT

Payment protection insurance (PPI) claims and credit card refunds could give people the financial lump sum they require to make their outlook for 2012 more optimistic.

A new report from Nationwide has found that consumer confidence in the UK in November was lower than it was in the corresponding month last year and substantially lower than long-term levels.

The figures show that after five consecutive months where the index fell, a four point rise last month had little impact, as the measure is still 37 points below its long-term average.

Nationwide's chief economist Robert Gardner suggested that the small rise may only be fleeting as the reaction to the troubles in the eurozone will have a significant impact on the measure for December.

Baigrie Davies recently recommended that consumers should make an appointment to see a financial planner in the new year to assess all the fiscal options available to them.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank Claim: Holidaymakers must be given more information

Tue, 20 Dec 2011 14:23:25 GMT

Banks, lenders and travel money providers have been told that they must make information regarding their currency products more clear and ensure their customers are aware of all the options and implications.

The Office of Fair Trading (OFT) has acted on a super-complaint from Consumer Focus about what the group deemed was often misleading and confusing information.

Lloyds, Barclays, RBS, Santander and the Co-operative Bank have all agreed to scrap the debit card charges made while consumers were abroad. The banking groups previously charged their account holders between 1.5 per cent and two per cent of the value of the transaction for the service.

"Companies should be earning profits by competing to provide the best value products and services, not through charges that are hard for customers to identify or interpret," said John Fingleton, chief executive of the OFT.

Consumer Focus stated that it welcomed the announcement and customers should have the right to know exactly what charges they will be subjected to while on holiday.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claims: Budgets are forgotten at Christmas

Mon, 19 Dec 2011 16:58:27 GMT

Payment protection insurance (PPI) claims and credit card refunds could be useful for those people who do not think they will be able to stick to their shopping budgets this Christmas.

A new report from Barclaycard revealed that despite the tough economic conditions that many people face this year, consumers are still looking to spend the same – if not more – than they did 12 months ago.

This could be bad news for household budgets, as the research found that 12 months ago, despite shoppers planning to spend £362 on gifts, the average person actually paid out £65 extra.

"It's clear from our research that Brits lose track of their finances the closer to Christmas it gets, which puts them under increased pressure once the festivities are over," said David Chan, chief executive of Barclaycard Consumer Europe.

A recent survey by Moneysupermarket.com found that 20 per cent of British consumers will end the festive period owing more money than they previously did.

PPI Claims: Property ladder progression 'hardest in 25 years'

Mon, 19 Dec 2011 15:54:56 GMT

Those who have taken out a mortgage and are now looking to move on to their second home may want to check to see if they are eligible to make a payment protection insurance (PPI) claim or seek a loan refund.

This is because new research from Lloyds TSB has found that it is now more difficult to progress up the property ladder than it is to secure a first home.

According to the group, the home affordability for these second steppers is at its lowest level in 25 years.

Lloyds TSB calculated that the difference between the price of a second home and current equity was around 5.2 times higher than average annual salaries.

"This reflects the impact of the decline in house prices since 2007 on the amount of equity those who bought for the first time at the peak of the market have in their homes," said Suren Thiru, housing economist at the firm.

Halifax recently stated that financial indictors suggest that house prices would remain fairly flat over the next 12 months.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: Consumer spending 'at lowest level during November'

Mon, 19 Dec 2011 12:07:32 GMT

Payment protection insurance (PPI) claims and loan refunds may help people to feel more secure in their financial situation and give them the extra cash they require to start spending.

Despite the proximity to Christmas, consumer spending in November was the lowest it had been all year as people's incomes are not rising at the same rate as inflation, a new report from Lloyds TSB found.

The research revealed that during the month, incomes grew by an average of 1.9 per cent, compared with a 3.9 per cent increase in the cost of everyday essentials.

PPI claims could be particularly timely as two-thirds of the UK population stated they will need to cut back on Christmas spending this year, while one-third will use a credit card to cover the cost of gifts.

The British Retail Consortium has said that recent Office for National Statistics figures which show an annual growth in sales are at odds with its own research, which found that if inflation was taken into account, sales volumes this November were lower than in the corresponding month in 2010.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Consumers 'still have debt concerns'

Fri, 16 Dec 2011 16:47:28 GMT

Payment protection insurance claims or credit card refunds could serve the dual purpose of giving people extra money to spend in stores as well as helping to alleviate their debt problems.

Frances Coulson, president of the insolvency trade body R3, said that statistics showing a rise in consumer spending were often misleading.

She explained that high inflation in the UK has meant that incomes were 3.6 per cent less valuable than the same amounts were one year ago, so people had to spend more money to maintain the same standard of living.

Ms Coulson added that 60 per cent of consumers in the UK were still anxious about their debts.

Her warning came after consumers were told that the financial situation could become worse in 2012.

Legal & General Investment Management's economist Tim Drayson stated that many fiscal indicators were suggesting that the UK economy would slip into recession next year.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claims could help women save for retirement

Fri, 16 Dec 2011 15:40:30 GMT

Women approaching retirement age may want to check to see if they can boost their income by making a payment protection insurance (PPI) claim, as it seems they are less likely to have adequate pension provisions in place than men.

New research from Friends Life has found 59 per cent of women are not saving for their retirement, compared to 52 per cent of men.

Furthermore, the study suggests that women do not understand the range of different options available to them as well as their male counterparts.

Martin Palmer, head of corporate benefits marketing at the firm, said women were "failing to grasp" the financial uncertainties which could manifest once they retire.

He explained that this could be due to the breaks in their career, less flexible working arrangements or "simply because they find them confusing".

This comes after Defaqto told financial advisors not to recommend a one-size-fits-all approach to retirement saving.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Christmas could 'break many budgets'

Fri, 16 Dec 2011 13:08:30 GMT

Payment protection insurance (PPI) refunds and credit card claims could provide the extra resources many will need in the new year.

According to Kevin Mountford, head of banking at MoneySupermarket.com, consumers in the UK have seen their incomes stretched during the course of the last 12 months by high inflation and rising energy bills.

He stated that with Christmas fast approaching, some household budgets will fail to cope and he pointed out that a fifth of British families will owe more money by the start of January.

"It is imperative that consumers try and fight back and do as much as they can to sort out their finances by setting resolutions for themselves as we head into 2012," Mr Mountford said.

According to recent research from Skipton Financial Services, wage incomes are struggling to cope with the cost of living. The study found households in the UK now need to earn £32,702 before they have any surplus cash.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI refunds may be more effective than payday loans

Thu, 15 Dec 2011 16:43:38 GMT

Payment protection insurance (PPI) claims may be a better option for those who are looking to use a payday loan to boost their finances.

Commenting after a recent Office of Fair Trading (OFT) investigation into the short-term, high interest loans, Joanna Elson, chief executive of the Money Advice Trust, said many people were being exploited.

"We are pleased to see the OFT tackling poor practice in an industry that has been allowed too much free rein up to now," she stated.

Many unscrupulous companies were taking advantage of families and individuals who were finding it hard to make their money stretch between salary payments, commented Ms Elson.

She added that many consumers find that payday loans make their finances worse and are often missold to people who have no way of paying them back on time.

Recent figures from R3 show that 3.5 million adults are considering taking a payday loan next year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI refunds may be more effective than payday loans

Thu, 15 Dec 2011 16:43:38 GMT

PPI Claims: Families need an extra £1.6k

Thu, 15 Dec 2011 13:02:38 GMT

Payment protection insurance (PPI) claims or credit card refunds could help provide many British consumers with the extra cash they need to help them maintain their current standard of living.

Despite a small fall in the consumer prices index recently, inflation is still causing financial problems for households in the UK, new research from MGM Advantage has found.

The group estimates that in order to enjoy the same living standards as 12 months ago, families would need to find an extra £1,679 a year.

PPI claims could be particularly useful for pensioners or those on a fixed income who cannot bolster their finances by other means.

"We are seeing more interest in alternative retirement income solutions that can provide some protection against inflation and the rising cost of living," said Aston Goodley, the sales and marketing director at the company.

A recent report from the Alliance Trust found that people over the age of 75 would be most affected by inflation.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims could provide extra Christmas finances

Thu, 15 Dec 2011 12:31:01 GMT

Payment protection insurance (PPI) claims could help to give families the extra security they need to not be worried about the effect Christmas spending will have on their finances in January.

Andrew Hagger, Moneynet.co.uk's spokesperson, stated that this year had been an extremely hard one for households to keep on top of their money issues, as many everyday items such as energy, car fuel and food had increased in price.

"People are trying to be more careful because they don't want to be left with huge credit card bills come January when they won't have the money to repay them," he said.

Speaking about recent research from Halifax , which found that the average British consumer plans to spend around £319 on gifts this year, Mr Hagger said people should make their own decisions.

He explained that the exact amount would depend on their circumstances and how large a family people had.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims could help people avoid 'financial disaster'

Thu, 15 Dec 2011 10:17:24 GMT

Payment protection insurance (PPI) refunds and credit card claims could provide much needed income for those people who have been made redundant.

The Office for National Statistics recently announced that more people were now unemployed than at any point in the last 17 years and the Money Advice Trust (MAT) believes many now face financial ruin.

According to the figures, 2.64 million people in the UK are now without a job – a figure that represents 8.3 per cent of the total economically active population.

Commenting on the figures, Joanna Elson, chief executive of the MAT, said that even families who were previously managing to keep their budgets in order via careful spending will be drastically affected if their incomes were substantially reduced by a redundancy.

"Unemployment is all too often the first step on the road to personal financial disaster," she stated.

Ms Elson added that people with money worries should be aware of all the financial options available to them.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims could provide extra income to the unemployed

Wed, 14 Dec 2011 17:13:35 GMT

Payment protection insurance (PPI) claims and credit card refunds could be used to provide an extra amount of income to those people who have been made redundant and cannot find a new job.

The Office for National Statistics (ONS) has released its labour figures for the financial quarter and they reveal that 2.64 million people are currently unemployed in the UK – a figure which is the highest seen in the country since 1994.

PPI claims could also have wider implications as the ONS revealed that both public and private sector pay experienced slower growth since September, while inflation had remained high.

Even before today's announcement, many people in the UK were finding it hard to cope with the dual threat of unemployment and high inflation.

A recent survey by MoneySupermarket.com revealed that 20 per cent of people in the UK expect to be in more debt than they already are by the start of 2012.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Recession 'could be imminent'

Wed, 14 Dec 2011 16:38:27 GMT

More people could be checking to see if they are eligible to make a payment protection insurance claim next year as the fiscal windfall it provides could be a significant help to finances which are likely to be stretched.

Tim Drayson, Legal & General Investment Management's economist, stated that European and global economic problems in 2012 were likely to affect many British households and the UK faced the very real prospect of another recession.

"The euro area problems don't just affect Europe. Europe is a major trading area for … the UK. European banks have been major providers of credit to the global economy," he said.

He believes that the Office for Budget Responsibility's targets for economic growth are too optimistic and will not be reached.

Trevor Greetham, portfolio manager at Fidelity, recently stated that a recession in Europe will make the financial crisis in peripheral economies much worse.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: FSA to make compensation amounts more visible

Wed, 14 Dec 2011 15:19:48 GMT

The Financial Services Authority (FSA) has announced that it will make changes to its rules to ensure that all banks, credit unions and building societies in the UK make consumers directly aware of how much compensation they could receive in the event of an insulation failure.

Consumers should be told of the amounts when they make a deposit, so in future the banks will need to display signs which state "your deposits are protected up to £85,000 by the Financial Services Compensation Scheme, the UK deposit protection scheme" in their branches and on their websites.

The proposals are part of a wider initiative to restore customer confidence in the sector.

Hector Sants, chief executive of the FSA, said it was "vitally important" that people began to trust banks and lenders once more.

This comes after the FSA entered a partnership with the Office of Fair Trading to help prevent many of the problems which were associated with the misselling of payment protection insurance reoccurring in new financial products.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Many children 'face poverty'

Wed, 14 Dec 2011 11:45:53 GMT

Payment protection insurance (PPI) claims and credit card refunds could be a simple way for cash-strapped families to improve their incomes and avoid slipping into poverty.

A new report into child poverty has found that the issue is having a serious effect on social mobility in the country.

The independent reviewer who led the study Alan Milburn said that state investment in childcare for the under-fives was a step in the right direction, but it should not replace the existing financial aid given to the most vulnerable families.

Commenting on the guidelines, chief executive of the Child Poverty Action Group Alison Garnham said that an all-encompassing approach was the correct course of action to tackle the money concerns of the poorest households.

A recent survey from Skipton Financial Services found that due to the continuous rise of the cost of living, the average British family now needs to earn £32,702 just to cover the cost of bills.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims could be more effective than over-50 plans

Wed, 14 Dec 2011 10:58:35 GMT

People who have invested in an over-50s plan may want to make a payment protection insurance (PPI) claim as new research suggests they may not be as financially lucrative as first thought.

A report by Which? has found that the savings option could leave some pensioners thousands of pounds out of pocket.

According to the research, a 60-year-old man paying £15 each month into the plan for 30 years would receive less than £3,000 and with current inflation levels, that money would be worth half of today's value by the time the lump sum is paid.

"For most people, over-50s plans are incredibly bad value. They're inflexible and for the majority of customers, they will pay out far less than you have paid in," said the group's chief executive Peter Vicary-Smith.

A recent report from Defaqto found that pensioners on fixed incomes will be particularly affected by the current high rate of inflation.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Inflation 'hits elderly hardest'

Wed, 14 Dec 2011 10:41:34 GMT

Payment protection insurance (PPI) claims and loan refunds could be handy for those consumers who are finding it hard to cope with the high cost of living in the UK.

A new report from the Alliance Trust found that the level of inflation experienced by people across the UK depends on their age group and the goods they purchase.

According to the research, pensioners will find their incomes are being stretched the most.

The 65 to 75-year old age group experienced a 5.5 per cent increase in the rate of inflation, while those aged 75 and above had the highest rate in the country – 5.6 per cent.

"In particular, it is the elderly households which continue to suffer the highest rates of inflation due to electricity and gas price increases impacting these households disproportionately," said Linsey Thomson, senior economic analyst at the organisation.

The Financial Services Authority recently fined HSBC £10.5 million for misselling financial products to the elderly.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card claim: Gifts 'will leave many in debt'

Wed, 14 Dec 2011 10:01:46 GMT

People who are finding it hard to accumulate the extra finances they need to buy Christmas gifts could check to see if they can make a payment protection insurance (PPI) claim or loan refund.

One in three consumers in the UK state they will not buy the same amount of presents as last year, with 61 per cent of those attributing the cutback to a lack of money, according to new research from Gocompare.com.

The site found that Britons will still spend an average of £528 on Christmas presents this year, with one in five planning to use a credit card or overdraft to fund the purchases.

PPI claims could be a more financially prudent alternative than the high-interest options, as Jeremy Cryer, Gocompare.com's head of credit cards, said that significant debts can be accrued if people do not pay them off straight away.

Recent research from LV= found that parents will spend £178 on each child this Christmas.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claim: Parents worry about funding Christmas

Tue, 13 Dec 2011 16:01:48 GMT

Payment protection insurance (PPI) claims and loan refunds could be useful to cash-strapped parents this Christmas.

A new report from LV= suggests that the build-up to December 25th can be a stressful time for mothers and fathers who worry they do not have the financial means to purchase the gifts their children want.

The group found that parents will spend a cumulative £2.4 billion on presents for their kids this year. The figure equates to an average spend of £178 per child, which is a marginal increase on last year's average outlay of £168.

Mark Jones, head of protection at the firm, said many households will be "feeling the financial strain" and it was important that families assessed all the short and long-term options that were available to them.

Recent research by Gocompare.com found that many consumers will prioritise who they buy presents for this year, with seven per cent of in-laws missing out.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank Claim: Inflation 'affecting savings benefits'

Tue, 13 Dec 2011 14:29:09 GMT

People who are approaching retirement age may want to check to see if they are eligible to make a payment protection insurance (PPI) claim on any cover which was missold to them in the past, as other financial options look less appealing.

The Office for National Statistics has announced that inflation has remained high in the UK, dropping 0.2 per cent to 4.8 per cent and Defaqto stated this, in conjunction with a low base rate of interest, was bad news for savers.

According to the financial research company, people looking to increase their retirement fund by saving were particularly vulnerable as investments in bank accounts were not providing any real-term benefits.

David Black, the group's insight analyst for banking, said the figures will affect most savers in the UK.

A recent survey by the Post Office found that 93 per cent of British consumers were worried about the effects inflation will have on their finances.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Many 'still face money problems'

Tue, 13 Dec 2011 13:39:13 GMT

Payment protection insurance (PPI) claims and credit card refunds could provide the financial help that many people need to cope with the high cost of living in the UK.

The Bank of England has announced that the current rate of inflation in the UK is 4.8 per cent and despite that being a slight fall from last month's level of five per cent, experts argue that it is still high enough to cause money problems for many.

Kevin Mountford, the head of banking at MoneySupermarket.com, said that consumers in the UK had been struggling with an ever-increasing cost of living since the onset of the banking crisis and they should take all the steps available to them to avoid falling into debt.

He said: "It is imperative that households take the opportunity to bring their finances under control."

PPI claims may be more effective than savings accounts, as the Bank's Monetary Policy Committee recently voted to keep the base rate of interest at 0.5 per cent.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Many 'will slip into debt this Christmas'

Mon, 12 Dec 2011 14:54:19 GMT

Payment protection insurance claims could provide the financial lump sum many families need to avoid falling into debt problems during the Christmas period.

A new survey from MoneySupermarket.com has found that ten million people believe that the extra expenditure associated with Christmas gifts will stretch their budgets so much they will need to rely on credit.

PPI claims could be a less expensive option for many, as 69 per cent of those will use a credit card and 23 per cent will use their overdraft.

Tim Moss, the site's head of loans and debt, said that the figures were not surprising as financial conditions in the UK this year had been particularly hard, but people could lessen the effects if they planned ahead.

"There are a number of ways they can reduce the Christmas spending hangover by the new year and it is essential to use the right product to meet their needs," he added.

Recent statistics from Credit Action revealed that each day in the UK, people pay a combined total of £174 million in personal interest.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Low income workers 'most affected by unemployment'

Mon, 12 Dec 2011 14:51:14 GMT

Low paid workers may want to check to see if they are eligible to make a payment protection insurance claim or assess whether they can receive a loan refund, as they may find it difficult to gain re-employment.

A new report from the Trades Union Congress has found that former machine operators, cleaners and caterers who have recently lost their jobs will spend more time claiming benefits than their higher-paid counterparts.

Since the start of the banking crisis and the following recession, the number of people on the dole who have been out of work for more than six months has increased from 29 per cent to 40 per cent, with people from elementary positions and machine operators being the worst affected.

Last month, the Confederation of British Industry said tackling the record level of youth unemployment – which currently stands at 19.1 per cent nationally - should be politicians' main priority.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims could help festive shoppers avoid debt

Mon, 12 Dec 2011 09:32:37 GMT

Payment protection insurance (PPI) refunds and credit card claims could help people avoid falling into debt problems this Christmas.

According to a new report from Halifax, consumers in the UK are accessing all the financial options that are available to them to ensure they do not worsen their financial position as they increase their expenditure buying festive purchases.

The research found that 54 per cent stated they will use sales and promotions to help reduce their total spend.

PPI claims could be particularly useful for 18 to 24-year-olds as 63 per cent revealed they have resorted to making Christmas presents to help them save money.

Rob Wood, the organisation's head of savings, said that these options would allow consumers to help avoid the threat of debt this year.

This comes after a study by LV= revealed that parents plan on spending £178 on each of their children during the Christmas period.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit Card Claim: Debts will persist after death

Fri, 09 Dec 2011 12:10:33 GMT

People who heavily rely on credit cards could check to see if they are eligible to make a payment protection insurance claim on cover which was missold to them.

The financial lump sum could come in useful to help people reduce their level of debt as the arrears will still remain even if they die.

A new report from Gocompare.com has found that 18 per cent of British consumers think that if they pass away then so will their debts. The site stated that the debts will be taken from their estate, which could have financial implications for their families.

People should take action to sort their financial situation as best they can as they never know what could happen and nobody wants to burden their loved ones, said Jeremy Cryer from Gocompare.com.

Defaqto recently urged people to pay off credit card debts as soon as they can as these tend to be more expensive than other types of borrowings.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Payday loans 'are an expensive form of borrowing'

Fri, 09 Dec 2011 11:39:08 GMT

Payment protection insurance (PPI) claims or loan refunds may be a better option than payday loans for those people who are finding it hard to make their income cover their monthly expenditure.

Lyn Jones from National Debtline told the BBC Radio 4 Money Box podcast that the high-interest loans are causing a lot of concern among the British public.

She stated that the charity now gets around 1,200 calls a month about problems which have been attributed to payday loans.

"We are coming across situations where people just cannot afford to pay those loans back and they are very expensive if you have to keep paying to roll them over," Ms Jones added.

The expert explained that firms charge a roll over fee to consumers who cannot repay and it becomes a very costly form of borrowing.

Consumer Focus recently called for the industry to become better regulated to help prevent many of the issues associated with the loans.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Consumers 'consider gift purchases'

Fri, 09 Dec 2011 08:27:59 GMT

Payment protection insurance (PPI) refunds could provide the financial lump sum many households in the UK need to ensure they can purchase gifts for friends and family this year.

Many British families are finding their budgets cannot extend to accommodate the extra festive purchases, according to new research from uSwitch.com.

The study revealed that 26 per cent are considering not buying presents this year, with 39 per cent of those stating they did not have the extra cash.

PPI claims could be even more effective in January when products are reduced in the sales.

According to the report, 17 per cent will not buy gifts before Christmas as they can get them cheaper just a few days after.

Ann Robinson, the group's director of consumer policy, said most families would not mind if they were given their presents after Christmas day.

The poorest families could find buying gifts particularly hard as research by Family Action found many are denied access to conventional forms of credit.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Pensioners 'to be worse off in future'

Thu, 08 Dec 2011 17:08:49 GMT

Older couples who are approaching retirement could think about boosting their financial income by making a payment protection insurance (PPI) claim or seeing if they are eligible to receive a credit card refund.

New research from Age UK has found that in the future couples who have one partner receiving a pension and the other still working could be up to £100 a week worse off than they currently are.

The charity stated that the introduction of Universal Credit would mean it would be more financially viable for a couple to split up and live alone.

Michelle Mitchell, Age UK's charity director, said that the current regulations are just enough to keep a retired couple above the poverty line and even those couples who can still work will find it difficult to make up the deficit.

PPI claims could also be useful for the people who have not made any financial arrangements for retirement.

According to recent research from Aviva, 37 per cent of over-55s have yet to start saving.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: 'Consider all options before' pay day loans

Thu, 08 Dec 2011 15:03:39 GMT

Payment protection claims and credit card refunds could be a useful option for those families who are finding it hard to make their income cover their expenditure from one wage packet to the next.

The Money Advice Trust (MAT) stated that consumers should check all the financial options available to them before they resort to using a payday loan.

According to the group, many companies can charge up to 1,000 per cent APR for the credit and missing a payment can cause a household budget to come under severe strain.

"There are a wide range of borrowing options; consider them all before you make a borrowing decision, and make sure you choose the most suitable option for you," said a spokesperson for MAT.

Recent research from R3 stated that 45 per cent of the UK population are currently finding it difficult to make their wages last to payday; however, 60 per cent of consumers who have used a pay day loan regret the decision.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Shoppers 'forced to cut back'

Thu, 08 Dec 2011 11:32:38 GMT

Payment protection insurance claims and loan refunds could be useful for the British consumers who will not be able to spend as much on Christmas gifts this year as they did in 2010.

New figures from Churchill Home Insurance revealed that 25 per cent plan to make cutbacks and of those, 73 per cent stated the decision was to save money.

The average person will buy presents for nine people totalling £379, according to Churchill.

Matt Owen, the firm's spokesperson, said that even though some people plan to reduce their festive budgets this year, the average price of a gift will still be £40.

A recent study by MoneySupermarket.com found that if people rely on credit cards to cover their Christmas expenditure they could worsen their financial situation.

The site calculated if a person spent £437 on a typical credit card and only paid off the minimum monthly amount, they would still be paying for the purchases in nearly 13 years time.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank Claim: Cash machine charges 'disgraceful'

Thu, 08 Dec 2011 07:42:59 GMT

Which? has criticised the move by a number of high street banks to implement policies which will see some of their customers charged to withdraw their own money from various cash machines.

The group's executive director Richard Lloyd said it was a particular "disgrace" that RBS was one of those banks, as it is owned by the British tax-payer.

More than a million current account holders will not have free access to their cash and they will experiences extra charges and inconvenience, stated Mr Lloyd.

"These changes could force them to stop using their account and go back to managing all of their money in cash - imposing extra costs at a time when they can least afford it," he added.

He called on RBS and all banks to reverse their intentions and make cash machines freely available.

Chairman of the Treasury Select Committee Andrew Tyrie also recently asked Lloyds TSB and RBS to reconsider.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Tough year 'affects festive cheer'

Thu, 08 Dec 2011 07:41:40 GMT

Payment protection insurance (PPI) claims or loan refunds could provide the added financial security that many individuals in the UK lack this Christmas.

A new survey from MoneySupermarket.com has found that 12 per cent of people cannot afford to lend £50 to a friend, while five per cent said they would loan the money, but it would affect their own festive budget.

"It comes as no surprise that a number of people are not in the position to be able to lend even £50 to a friend this festive season," said Kevin Mountford, head of banking at the site.

He explained that many households have had to make austere financial cutbacks since the onset of the banking crisis and this year had been particularly tough for them.

PPI claims could be particularly useful for pensioners or those on a fixed income.

Recent research from Aviva found nearly half of the over-55 age group find it difficult to pay for Christmas.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims could be alternative to payday loans

Thu, 08 Dec 2011 07:40:32 GMT

People who are considering taking out a payday loan may discover it is more financially prudent to make a payment protection insurance (PPI) claim.

Recent research from R3 found that 45 per cent of British consumers are finding it hard to make their incomes last between monthly pay checks and that has resulted in 3.5 million thinking about using a payday loan.

The study found that 60 per cent of individuals who have already used the high interest form of credit regret the decision, while 48 per cent believe that payday loans have made their financial position worse.

"Payday loans are not the best way to resolve debt struggles. We know that many who take them out find them to be a negative experience, often escalating financial troubles," stated Frances Coulson, president of the group.

Consumer Focus' director of financial services Sarah Brooks said that the regulation of the payday loans sector needs to improve.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claims could help retirement savings

Wed, 07 Dec 2011 16:41:41 GMT

Young homeowners and consumers could check to see if they are eligible to make a payment protection insurance (PPI) claim or seek a loan refund.

The compensation provided could help people begin saving for their retirement, as Annie Shaw, founder of Cashquestions.com, stated by the time this current generation of young workers reaches retirement age, there may not be much state aid available.

She recommended that consumers should start to accumulate funds as soon as they can and said auto-enrolment was a good way of doing this.

PPI claims could be used to supplement a person's income so that the pension contributions do not affect their budgets too drastically.

"Auto-enrolment is a good first step, but since there is a possibility to opt out, it is going to be down to the individual whether they stick with it," Ms Shaw added.

Many people approaching retirement could also benefit from loan refunds, as recent research from Aviva found that more than third of over-55s have yet to make arrangements for their retirement.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Consumers 'still want to spend'

Wed, 07 Dec 2011 13:55:30 GMT

Those people still to do their Christmas shopping may find that they could avoid making tough choices about who gets gifts if they have an extra financial boost available to them.

Payment protection insurance claims and credit card refunds could allow consumers to buy products for all their friends and families.

Children's presents are currently the number one priority for British families, with most parents spending £104 on each child, a new report from MORE TH>N has found.

There is also a gender bias when it comes to buying gifts, as the research revealed that consumers will spend more on mothers, sisters, grandmothers and mother-in-laws than the male equivalents.

Despite the tough economic conditions experienced by many this year, people are still looking to spend money on their loved ones, said Matt Pernett, Head of MORE TH>N home insurance.

PPI claims could be particularly timely for some British households, as a recent survey by Citizens Advice found two in five have not saved throughout the year for Christmas.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Kids gifts 'a priority'

Wed, 07 Dec 2011 11:12:00 GMT

Payment protection insurance (PPI) claims and loan refunds could help families who are making cutbacks to ensure their children get the gifts they want this Christmas.

A new survey from LV= has found that 29 per cent of parents in the UK will make sacrifices to their budget to make more money available to purchase presents for their offspring, while 31 per cent admit to feeling more financial pressure this year.

The research revealed that each child in the UK will have more than £178 spent on them by their parents and some mothers and fathers have already told their children they will not get all the presents they have asked for.

Mark Jones, the firm's head of protection, said "Many families will be feeling the financial strain of keeping their kids happy this Christmas."

He added that families will find it hard to cope financially if they experience even a small fall in income.

Recent research from MoneySupermarket.com found that if families paid with a typical credit card for their total Christmas spend, they could be charged £70.20 in interest during the next 12 months.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Pensions 'will be hit'

Tue, 06 Dec 2011 17:00:14 GMT

Payment protection claims or loan refunds could help many people in the UK supplement their retirement fund, as pension payments are set to be reduced.

Speaking about the decision to change the indexing of pensions from the retail prices index to the consumer prices index, Brendan Barber, the general secretary of the Trades Union Congress, said everybody who has a retirement scheme would be affected by the government's decision.

"Ministers keep saying that they are cutting public sector pensions for the benefit of private sector workers, but this move hits both," Mr Barber added.

The decision went to a judicial review where the court found the choice was not made solely to improve the lives of pensioners, but to help reduce the national deficit accrued since the banking crisis.

Dave Prentis, general secretary of Unison, commented that the move will cost British pensioners thousands of pounds and could force many into poverty.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit Card Claim: Plastic purchases 'higher than ever'

Tue, 06 Dec 2011 15:49:44 GMT

People are using their credit cards more than ever before and many could check to see if they are eligible to receive a financial windfall in the form of a credit card refund.

Prime minister David Cameron recently urged British consumers to deal with their debts, but new figures from Save Our Savers have revealed that the UK population is not heeding his advice, as high volumes of purchases continue to be made on plastic.

Mortgages are also causing many families to have financial problems, with £2.5 million being paid every month on interest on the borrowings, which now total £1.24 trillion, according to the research.

The group believes that people are not prepared for the inevitable rise in interest rates and those with the biggest issues may have no other option other than to seek insolvency.

Incomes are struggling to cope with high inflation in the UK; a recent study by Skipton Building Society found that the average household in the UK needs to earn £25,000 a year, after tax, to pay essential bills.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: Energy price rises 'leading to fuel poverty'

Tue, 06 Dec 2011 15:38:31 GMT

Families who are finding the high cost of energy bills is affecting their finances could check to see if they can increase their income by making a payment protection insurance (PPI) claim or seeking a loan refund.

The average price of gas and electricity has risen by 96 per cent in just over five years, which means that households now need to boost their income by £633 to cope, revealed new research from uSwitch.com.

According to the report, 27 per cent of families in the UK are now living in fuel poverty, with regions of the country seeing annual energy bills of more than £1,300.

PPI claims could also be used to pay for energy efficiency measures that could help reduce the price of future bills.

Ann Robinson, director of consumer policy at the group, said that loft insulation and cavity walls are effective options available to homeowners.

Earlier research by the company revealed that 48 per cent of bill payers could not afford the energy efficiency measures.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Consumers 'should be wary of credit cards'

Mon, 05 Dec 2011 15:48:16 GMT

Payment protection insurance (PPI) claims may allow people to avoid getting themselves into financial difficulties this Christmas.

The Finance and Leasing Association has urged people who are struggling to find the extra money they require to buy gifts to avoid worsening their financial situation by taking out expensive credit cards or loans.

It is important consumers remember that bills will come in January and their finances should be able to cope with the added expenditure, it stated.

The group advised that individuals who need to use a credit card should look for the schemes which offer zero per cent rates.

"With many families keeping a careful eye on their Christmas spending, up-front planning is essential," said Fiona Hoyle, FLA head of consumer finance.

According to MoneySupermarket.com, some people who use a typical credit card to buy their Christmas gifts this year could still be paying for them in nearly 13 years' time.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: UK Consumers 'faced with high levels of debt'

Mon, 05 Dec 2011 13:23:43 GMT

People faced with a high level of debt or those who have money concerns could make a payment protection insurance (PPI) claim to alleviate some of their financial burden.

The average British household now owes £55,808 and every 14.28 minutes a home in the UK is repossessed by creditors, according to new figures released by Credit Action.

Consumers are making frequent use of store and credit cards. The study states that every day through September 2011 £1.28 billion was spent on plastic payments, which contribute to the £174 million that is paid on personal interest each day by British consumers

PPI claims could also help people retain some sort of income if they have been made unemployed, as the charity states that each day 1,611 individuals are made redundant.

The Money Advice Trust recently announced that it expects 16,600 people who have become recently unemployed to suffer substantial debt problems at some point next year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank Claim: ATM charges 'are damaging'

Fri, 02 Dec 2011 17:01:30 GMT

Some high street banks have been criticised for not allowing their customers to have access to their accounts from every cash machine.

The chairman of the Treasury Select Committee Andrew Tyrie asked the Royal Bank of Scotland (RBS) and Lloyds TSB to re-evaluate their decision to charge basic bank account holders for withdrawing money from cash machines other than their own.

Mr Tyrie stated that banks are under pressure to find ways to reduce costs but this is not the best method of doing so.

"The decision to restrict access to cash machines has major implications for universal banking services and appears to target those vulnerable consumers who are most at risk of financial exclusion," he added.

RBS responded by saying that aspects of the retail banking sector need to change.

On November 23rd the Treasury Select Committee also questioned the chief executives of HSBC and Santander on the issue.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: Deficit cuts 'are unfair'

Thu, 01 Dec 2011 15:34:23 GMT

Many public sector workers will need to reassess their finances as their living standards fall and they could check to see if they are eligible to make a payment protection insurance (PPI) claim.

Speaking yesterday (November 30th) on a day when 30 unions across the country united in a day of industrial action, Trades Union Congress general secretary Brendan Barber said that it was a hard decision to strike and lose a day's pay, especially when living costs are so high, but financial conditions in the UK are currently unfair.

He criticised the government for scrapping a bankers' bonus tax and said it is public sector workers who are being made to pay for the huge deficit built-up in the wake of the banking crisis.

Last month, Mr Barber stated that the total cuts would account to a 16 per cent reduction in some public workers' pay by 2015.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim: Offspring 'will always need money help'

Thu, 01 Dec 2011 14:10:52 GMT

Payment protection insurance (PPI) refunds and credit card claims could provide the extra financial help many people with children need.

New research from Legal & General revealed that 27 per cent of parents in the UK believe that due to the tough economic circumstances many have experienced since the banking crisis they will never be able to stop supporting their child.

According to the study, only 21 per cent now believe that their offspring will be financially independent when they become 18.

Simon Ellis, the managing director of the firm's investments department, said that high inflation means the costs of raising a child are becoming higher, but these results were still shocking.

"This trend significantly increases the strain on parental finances and will no doubt change the way future parents save for their children," he added.

PPI claims could be very timely as recent research from Aviva found 46 per cent of over-55s will be face budgetary pressures this Christmas.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Elderly 'worried about Christmas costs'

Wed, 30 Nov 2011 15:56:50 GMT

Payment protection claims or loan refunds could provide the extra cash many retirees need to be able to afford to buy Christmas presents this year.

New research from Aviva found that 46 per cent of people aged over 55 in the UK believe their budgets become stretched during the festive period, while two in five believe these financial concerns will affect their enjoyment of Christmas this year.

Grandparents still feel it is their duty to buy gifts despite many being on a small fixed income and more then half will spend more than £30 on each of their grandchildren this year.

"Despite the current economic uncertainty, planning ahead and saving during the year can help ease the financial burden of Christmas for retirees," said Clive Bolton, at retirement director at the company.

Trades Union Congress general secretary Brendan Barber recently said the government had damaged the pension possibilities of many public sector workers.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Consumers 'should not borrow money at Christmas'

Wed, 30 Nov 2011 08:33:42 GMT

People who are finding it hard to accumulate the extra money they need to fund their Christmas shopping this year could check to see if they are eligible to make a payment protection insurance (PPI) claim.

Dave Penny, managing director of Invest Southwest, has warned cash-strapped consumers the worst option available to them is to take out a high-interest loan.

He said that the banking crisis and the following recession have created some of the toughest economic conditions in a long time and households need to realise they cannot afford to rely on loans as they are the "road to ruin".

Families should also set aside time to create a budget and assess if they have enough disposable income to be able to buy presents and attend parties, Mr Penny added.

Recent research from Skipton Financial Services found that to have any surplus income households need to earn £32,702 a year to cover the cost of everyday bills and services.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card claim: Christmas to increase debt woe

Tue, 29 Nov 2011 17:01:33 GMT

Credit card claims could give consumers the financial boost they require to still enjoy their Christmas without worrying about the implications of their spending in the new year.

The average British consumer will spend £437 on gifts and other festivities and people who choose to go into debt to fund the extra shopping may find themselves paying £70.20 purely in interest by the end of 2012, according to new research from MoneySupermarket.com.

Shoppers who will rely on a credit card (11 per cent) could still be paying off debts in 12 years' time. The site calculated that if an individual pays the minimum they are required to each month on a £437 balance on an average credit card they would still be paying for this year's gifts in 2023.

"Using the wrong credit card could end up costing far more than they bargained for," said Kevin Mountford, head of banking at the organisation.

The latest figures from Credit Action reveal that consumers in the UK pay £174 million in interest each day.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: Money concerns 'affect Christmas celebrations'

Mon, 28 Nov 2011 17:24:03 GMT

Shoppers who are struggling to find the cash to enjoy Christmas this year could check to see if they are eligible to make a credit card claim or receive a payment protection insurance (PPI) refund as the financial windfall may allow them to avoid cutting back their festive budget.

A new study from uSwitch.com found that due to the current tough economic climate many are facing since the onset of the banking crisis, consumers will forgo some Christmas cheer this year.

According to the research, 32 per cent will spend less on gifts for friends and family than 12 months ago, while 59 per cent will be making their savings on Christmas cards.

The traditional dinner is also under threat, as 17 per cent will opt for cheaper meat and 12 per cent will not have a Christmas pudding.

A recent report form Legal & General found that 1.5 million households will struggle to manage their money over the festive period.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Christmas 'causes debt for young consumers'

Mon, 28 Nov 2011 14:40:13 GMT

Payment protection insurance (PPI) claims and loan refunds could alleviate some of the financial pressure on young consumers who have found themselves in debt problems.

As people try to find the cash they need to cope with the extra expenditure of Christmas, almost one in ten individuals admit they have already borrowed finances to help pay for gifts, new research from the Association of Business Recovery Professionals has revealed.

PPI claims could be particularly useful for the younger generation as nearly a fifth of 16 to 24-year-olds are in debt due to their festive purchases.

Frances Coulson, the organisation's president, said the poor money management skills of young people were a concern.

"With unemployment figures up, we can only expect to see more people saying they are struggling to afford the demands of the festive season," she added.

Some consumers who are worried about their finances are cutting back their gift purchases. New research from Which? found that 42 per cent of individuals will spend less this Christmas.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Financial uncertainty increasing

Fri, 25 Nov 2011 15:11:10 GMT

Payment protection insurance refunds and credit card claims could provide the financial stability some consumers need as economic conditions are set to remain uncertain.

The Institute of Financial Planning found that 30 per cent of British consumers do not have any confidence that their current incomes and savings will be enough to cope in 2012. The group stated that high inflation, low interest rates and negative impacts from the eurozone were all contributing to the concerns.

"When money is tight, it is all the more important to think ahead about finances in order to keep wider plans for the future on track," said John Prout, NS&I's retail customer director.

The president of the IFP Marlene Shalton stated that the uncertainty was unsurprising, but added financial planning could put consumers in a safer position.

Recent research from Moneysupermarket.com found that high inflation and widespread pay freezes were causing a quarter of British households to spend a quarter of their salaries on bills.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Public workers 'facing retirement crisis'

Fri, 25 Nov 2011 13:43:14 GMT

Women approaching retirement could need payment protection insurance claims to help add to their income as the pensions industry is currently facing a crisis.

Unison general secretary Dave Prentis said that females employed in the public sector will find it difficult to enjoy retirement if their current financial circumstances do not change.

Pay freezes and rising unemployment has meant that many women are being forced to work past their retirement age and for less money, stated Mr Prentis.

"The majority of public sector workers are women, who are struggling to pay their bills and feed their families in the face of a pay freeze and rising inflation," he added.

Unison is currently running an advertising campaign to raise awareness of the funding crisis many people approaching retirement are facing.

Recent research from LV= found that 4.3 million people in the UK have retired and then gone back to work.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Christmas 'costs are worrying'

Fri, 25 Nov 2011 12:12:43 GMT

Those worried about the cost of Christmas could check to see if they can make a payment protection claim or ascertain if they are eligible for a loan refund.

Half of British consumers state they are anxious about the financial implications of the festive period this year, according to a new study from Which?

Richard Lloyd, the executive director of the group, said people will need to make some cutbacks on their spending due to the prevailing economic climate which has led to increased living costs.

The research found that one in four individuals will save money by buying fewer people presents this year, while one-tenth of consumers will invest in an artificial Christmas tree so they can reuse it in the future.

Recent research from Skipton Financial Services revealed that families in the UK need to earn £32,702 just to cover essential annual costs such as housing and energy bills.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Incomes 'struggling to break even'

Thu, 24 Nov 2011 16:58:36 GMT

Payment protection claims and credit card refunds may be needed as a large part of people's incomes is now spent on everyday items such as bills and food.

The average British family spends £24,600 a year on items which could be deemed non-luxury, new research from Skipton Financial Services has revealed.

Topping the list of monthly expenditure was mortgage payments, as households are currently paying an average of £4,730 each year back to their creditor.

"It is not surprising that mortgage interest is the number one spend, even though interest rates are at rock bottom levels," said Andrew Barker, the firm's managing director.

He explained that just to break even a basic tax payer would need to earn £32,702 a year and with many people currently experiencing pay freezes some would find it difficult.

Recent research from MoneySupermarket.com found that one in five families now have no money left from their wages after they have paid for non-essential expenditure.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Annuities 'worth less due to quantitative easing'

Thu, 24 Nov 2011 12:07:18 GMT

Payment protection insurance refunds and credit card claims may be needed by those people who are approaching retirement as the value of annuities and gilts has decreased.

Dr Ros Altmann, the director general of Saga, believes that the Bank of England's quantitative easing programme has left individuals with significantly worse financial options available to them when they decide to cease working.

She told a Financial Times podcast: "There is no doubt in my mind that quantitative easing has directly, negatively impacted the annuity market."

By buying gilts the quantitative easing initiative is artificially lowering their value, which means that any person who wants to purchase an annuity has found that their earnings accumulated over their working life are now worth less due to no fault of their own, she explained.

The members of the Monetary Policy Committee recently voted unanimously in favour of the governor's proposition to continue with the £275 billion quantitative easing plans.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank Claim: Executive pay 'out of control'

Thu, 24 Nov 2011 09:45:19 GMT

The pay of many executives of the top financial companies and big businesses has become "out of control".

During a Guardian Business podcast, Deborah Hargreaves, the head of the High Pay Commission, said that the majority (79 per cent) of the public believe bonuses and pay have become excessive.

She explained that the inequality between the average salaries and executive salaries will soon be at Victorian levels.

Since the 1980s, when executives received a salary around 13 times the national average, the pay of the highest earners has now increased to 88 times the wage of most people, stated Ms Hargreaves.

The High Pay Commission has launched a 12-point plan to control the pay and bonus culture, which is based on accountability, transparency and fairness.

Prime minister David Cameron said that all individuals and businesses in the public and private sectors should be able to "justify the decisions they make about pay".

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Workers 'worried about retirement fund'

Wed, 23 Nov 2011 17:04:26 GMT

Payment protection claims and credit card refunds could be used by families who do not currently have enough money saved to enjoy their retirement.

New figures from Standard Life have revealed that 49 per cent of 45 to 65-year olds who have two children do not currently have any financial plans that could sustain their lifestyle when they stop working.

One in ten even believes that they will need to continue to work until they are 70 to have enough money to retire.

John Lawson, head of pensions policy at the group, said: "It isn't surprising that those with children living in the household have even more financial constraints than those without."

He added that it was never too late for individuals to begin their retirement fund and there are financial options available to people.

Money issues are a big concern for workers, as a recent survey from the Institute of Financial Planning revealed that only 19 per cent believe they have enough savings.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Families 'cannot afford energy price hikes'

Wed, 23 Nov 2011 16:41:55 GMT

Payment protection insurance refunds could provide families in the UK with the financial windfall they need to cope with increasing energy prices.

According to uSwitch.com, gas and electricity suppliers have increased their prices by 21 per cent this year – a figure which equates to the average household having to find an extra £224.

The site states that the average energy bill for British families is now £1,293 a year. Many people believe that £1,500 is the most they can afford.

More than three quarters (77 per cent) of households said that once their bills breach this limit they will begin to ration the amount of energy they use in their homes, while 36 per cent are planning to turn the heating off completely.

The general secretary of the Trades Union Congress Brendan Barber recently stated that high inflation caused by the energy rises could ruin Christmas for many families in the UK.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Consumers 'need to know their options'

Wed, 23 Nov 2011 16:20:11 GMT

People who are experiencing money concerns due to the high rate of inflation or growing unemployment could see if they qualify to make a payment protection claim or are eligible for a loan refund.

A new survey from Friends Life found that many British consumers realise they need a financial boost and are seeking advice from their parents and friends.

The figures revealed that 31 per cent of people would initially ask their parents for financial advice.

Andy Briggs, chief executive officer of Friends Life, stated money issues are affecting a lot of households in the UK and it was correct they were seeking advice, but they should not make any decisions until they have all the facts available to them.

Earlier this month, uSwitch.com found that some households were so concerned by their financial position they were planning to ration the amount of gas and electricity they were going to use this winter.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Payday loans 'must be last resort'

Tue, 22 Nov 2011 17:06:28 GMT

Consumers who have money worries and are thinking about taking out a payday loan could check to see if they are eligible to make a payment protection claim or receive a loan refund.

The financial lump sum they receive could potentially help them avoid slipping further into debt due to high interest rates charged by the providers.

Stuart Carmichael, director of the Debt Support Trust, said many people are experiencing financial difficulties due to circumstances which are often out of their control, but should explore other options before agreeing to take out a payday loan.

"Payday loans are the most expensive form of credit and they should be seen as a last case resort," he stated.

Mr Carmichael said the Debt Support Trust would never recommend the use of the high-interest credit.

In September, a Which? study found that the payday loan industry is poorly regulated, with many companies charging inflated rates of interest and some potentially breaching the Consumer Credit Act.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: Overdraft charges must stop

Tue, 22 Nov 2011 15:34:25 GMT

People no longer trust bank charges and will need to be persuaded about the proposed benefits of overdraft changes.

This is according to Richard Lloyd, the executive director of consumer watchdog Which?, who was commenting on the high street banks' plans to make the fees they charge consumers who are overdrawn fairer.

He stated that in some cases banks can charge up to 2,000 per cent APR and the government should continue to monitor overdraft charges in its analysis of high-cost credit.

Some lenders inform their savers when they are approaching their limit or have become overdrawn and Mr Lloyd believes these practices are a positive step. However, he urged banks not to charge people for these services.

Banks have also recently been criticised for the way they handle payment protection claims. The Financial Ombudsman Service found that 38 per cent of the complaints it received in July, August and September were related to PPI refunds.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims complaints increase

Tue, 22 Nov 2011 15:32:46 GMT

The Financial Ombudsman Service (FOS) has recorded a large increase in the number of complaints it has received about banks' handling of payment protection insurance claims.

According to the figures, the organisation now receives 3,000 grievances each week from people who are unhappy about the way banks and lending providers are dealing with the refund process after misselling PPI in the first place.

In the second quarter of the year, PPI claim complaints accounted for 38 per cent of the total number the service received.

Soon, the FOS expects to receive its 300,000th PPI complaint and it believes the situation is a cause for concern.

Sir Christopher Kelly, the FOS's chairman, said PPI claims will be a major challenge which the industry needs to overcome in the next few years.

In April this year, a court ruling rejected a legal challenge by the British Bankers' Association to the way the FOS and the Financial Services Authority dealt with claims.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: Loan rates 'too high'

Mon, 21 Nov 2011 16:10:57 GMT

People who are struggling to secure a loan that offers good value for money could see if they are eligible to make a credit card claim or a loan refund.

Many consumers who are finding it difficult to cope with the rising cost of living since the onset of the banking crisis are now being charged high lending prices, despite the base rate of interest being at an historic low of 0.5 per cent, new research from MoneySupermarket.com has found.

According to the study, the rates on loans of £3,000 or less are at a six-month high.

"Banks and building societies took the opportunity to decouple unsecured loans from base rate changes, leading to the rapid increase in the costs of borrowing," said the site's head of loans and debt Tim Moss.

Recent research from Defaqto found that only six per cent of current high street bank accounts give a return which is higher than the current level of inflation.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Many 'unprepared for Christmas'

Mon, 21 Nov 2011 16:09:53 GMT

Payment protection refunds and credit card claims could help more families enjoy Christmas this year without worrying about their ongoing financial difficulties.

According to new research from Legal & General, 31 per cent of the UK population are planning on spending less money on the festivities than they did last year.

The group found that 1.6 million families claim they cannot afford to buy presents, while a further 3.3 million believe they will need to rely on a credit card to cover the cost of Christmas shopping.

Mark Gregory, the company's executive director of savings, stated that the results are not a surprise as many households across the country are struggling to control their budgets.

Individuals in London and those in the West Midlands could find PPI claims particularly timely as these regions were the most financially ill-prepared for Christmas.

Last month, a study by Moneysupermarket.com found that people who use credit cards to pay for gifts worth £500 and then only paid the card's minimum monthly repayment could still be paying for them in more than 11 years time.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Money concerns will affect retirement

Mon, 21 Nov 2011 13:27:46 GMT

Payment protection claims and loan refunds could be just what some people need as many have no discernable plans for funding their retirement.

New research by the Institute of Financial Planning (IFP) has found that 47 per cent of the British population do not believe they have enough money or assets to enjoy retirement.

Money worries are a major concern for most people in the UK, as the study revealed two-thirds of women and 54 per cent of men are almost constantly anxious about their financial position.

"Our survey findings present a worrying picture for so many people who are facing an uncertain future, yet not taking appropriate steps to improve their financial situation," said the IFP's chief executive Nick Cann.

Paul Goodwin, director of workplace savings at Aviva, also believes that people are not focusing on retirement costs as many are struggling with the current economic circumstances.

Aviva found that pension contributions were suffering as individuals choose to help family members who have money difficulties.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Unemployment figures 'show change is needed'

Fri, 18 Nov 2011 17:15:40 GMT

Payment protection claims and credit card refunds could be used by many people who are facing long-term unemployment.

Office for National Statistics figures show 2.62 million individuals are now unemployed in the UK – a figure that grew by 129,000 in the three months prior to September.

John Cridland, the director general of the Confederation of British Industry, believes a whole generation is now in danger of being financially crippled due to being without a job for a long period of time.

"These figures underline why we need urgent action to help our young people take their first steps in the labour market," he stated.

Mr Cridland also wants the government to change the benefit system to make the financial benefits for people who work much more rewarding.

The Money Advice Trust has warned that unemployment may mean many people will face serious financial difficulties and some will find bills pile up and cause them debt problems.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking

PPI Claims: Property 'can provide income boost'

Fri, 18 Nov 2011 15:22:30 GMT

Homeowners who have a mortgage and are struggling to make financial payments could check to see if they are eligible to make a payment protection claim on insurance that was missold to them.

Another way for people to seek a financial lump sum from their property could be to release the equity that has accumulated in their home over the years, said Paul Rumbold, an independent financial adviser at Wayne Austin IFA.

He said that on average a person around the age of 60 could expect a windfall of between 15 to 30 per cent of the total value of their property.

Money from PPI claims or equity release could then be further invested to generate extra income.

Mr Rumbold's comments came after the Alliance Trust Research Centre found inflation rates of 5.8 per cent are cutting the amount of disposable income available to many people over the age of 65.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking

PPI Claims: Unemployment 'highest in 17 years'

Fri, 18 Nov 2011 10:19:51 GMT

More than 2.6 million people are now unemployed in the UK and some could offset their fall in income by claiming against payment protection insurance that they may have been missold with their mortgages or credit cards.

New figures released by the Office for National Statistics for July, August and September have revealed that 8.3 per cent of the population is currently looking for work, a level that represents the highest ratio of unemployment since 1996. The actual amount of people without jobs is the most since 1994.

The statistics also revealed that total pay was down by 0.4 per cent during the period.

PPI claims could be particularly relevant to individuals aged between 16 and 24 as they are currently experiencing record levels of unemployment.

Delroy Corinaldi, the director of external affairs at the Consumer Credit Counselling Service, said that many young people claiming Jobseeker's Allowance will experience debt problems if they do not look for help.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refunds could help people spend again

Thu, 17 Nov 2011 16:52:17 GMT

Payment protection refunds and credit card claims could provide families who feel they have no extra money to spend with the financial boost they need going into Christmas.

Many households' budgets are now so stretched individuals feel they can no longer spend money on the high street and this feeling has been confirmed by Nationwide's consumer confidence index reaching an all-time low.

The report found the index fell for the fifth month in a row in September and the organisation's chief economist Robert Gardner said he was not surprised by the findings.

"Pressures on household budgets have also intensified, with underlying wage growth running at less than half the rate of inflation," he added.

Mr Gardner believes that the wider economic circumstances in the UK and the eurozone were a factor.

The British Retail Consortium called on chancellor George Osborne to make tax changes to allow people to spend again, which could subsequently help stimulate growth in the economy.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank Claim: Payday loans 'becoming more common'

Thu, 17 Nov 2011 11:55:49 GMT

Consumers who need to rely on payday loans in between salary payments could see if they are eligible to make a payment protection claim or loan refund, which may help them avoid falling into a cycle of debt.

Stuart Carmichael, director of the Debt Support Trust, explained that many people believe the high-interest loans are their only form of support and that lots of consumers have multiple loans outstanding simultaneously.

"It's becoming a lifestyle product for many people. They're actually using their payday loans to supplement their living - it's not just a one-off purchase," Mr Carmichael said.

He attributed the rise of the popularity of payday loans to the reduction of credit available since the start of the banking crisis.

Many banks have reduced the overdrafts they offer to individuals and some consumers believe they have no other option, stated Mr Carmichael.

A recent report from Aviva revealed the average household debt was now nearly half its annual income.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit Card Claims: Spending 'hit by low incomes'

Wed, 16 Nov 2011 12:30:10 GMT

Credit card refunds and payment protection claims could be used to allow families to afford to buy non-essential products as income levels have remained relatively flat this year.

New research from Aviva shows that the average wage increase in the UK this year is £46. Since January, the cost of many monthly outgoings has increased by significantly more.

Energy bills have risen by 18.8 per cent, food prices by 6.9 per cent and an increase in the price of petrol and diesel has seen motoring and public transport costs grow by 8.7 and 8.5 per cent respectively.

The report also showed that over the last year, the average amount of savings has decreased from £982 to £967 per household.

Paul Goodwin, director of workplace savings at Aviva, said with such a low increase in incomes people are being forced to cut down on spending.

Further research from Aviva found that many consumers are spending two per cent of their income on helping their friends and families who are struggling with money problems.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: Incomes 'still affected by inflation'

Wed, 16 Nov 2011 11:04:05 GMT

Payment protection claims and loan refunds could be used to alleviate the pressure many households will face this winter caused by the high price of gas and electricity.

Brendan Barber, Trades Union Congress's general secretary, stated that although the Office for National Statistics yesterday announced a general decrease in the level of inflation, many families will still be concerned about their finances.

He said a "reduction in food price inflation will provide some help to household budgets," but many will still struggle with high electricity and gas prices as winter begins.

Households face a tough Christmas as inflation will still continue to affect how much their wages are worth in real terms, Mr Barber added.

He urged the government to adopt an alternative strategy to help stall the fall in living standards faced by many individuals.

According to the Office for National Statistics, the consumer price index has risen from 1.5 per cent in October 2009 to the current level of five per cent.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Savings 'cannot cope with inflation'

Wed, 16 Nov 2011 11:02:31 GMT

The recent small fall in inflation is not the end of financial difficulties many people have experienced since the start of the banking crisis, according to an expert.

PPI claims and credit card refunds could therefore still be very useful for people struggling with a deterioration in their standard of living.

Dr Ros Altmann, director general of Saga, highlighted that although the Office for National Statistics announced yesterday that the retail price index (RPI) had fallen by 0.2 percentage points to five per cent, the over-50 age group have experienced an 18.5 per cent increase in RPI since the collapse of Northern Rock.

"In only four years inflation for the over-50s has wiped out over 20 per cent of their money and pensioners in particular have no way of protecting themselves against this loss," Dr Altmann said.

Recent research from Defaqto found that only six savings accounts of the 1,999 on offer from high street banks currently represent a real-term investment.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: People on low incomes 'find it hard to cope with inflation'

Tue, 15 Nov 2011 17:02:44 GMT

Payment protection claims and credit card refunds may be useful for households who are struggling with financial problems caused by high inflation and stagnating incomes.

New research from MoneySupermarket.com has found that the average British family spends 27 per cent of its income paying monthly bills. Households who are classed as having a low income – those earning less than £12,000 a year – are faced with even greater difficulties, as bills account for half of their salaries.

People living in the south-east may also face money worries as they are paying £633 - the highest average amount for monthly utilities in the country.

Kevin Mountford, head of banking at the site, said inflation was still high despite a recent drop and this, coupled with incomes that have remained frozen for long periods, has meant that the portion of income spent on bills is increasing.

According to the Office for National Statistics, the cost of gas, electricity and clothing has meant inflation has remained high.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Economic prospects 'gloomy'

Tue, 15 Nov 2011 12:54:56 GMT

Many people could check to see if they are eligible to make a payment protection claim or credit card refund, which could provide a financial lump sum that may lift some of the constraints which are making many people feel pessimistic about their financial circumstances.

The majority of British consumers (56 per cent) now feel less optimistic about the UK economy than they did three months ago, according to a new report from the Chartered Institute for Securities & Investment.

Contributors were particularly concerned about the effect the collapse of the eurozone will have on the UK.

"Steeply rising inflation, no pay rises and job losses could push us towards civil unrest. People will actually struggle to feed themselves," one respondent stated.

Azad Zangana, European economist at Schroders, recently said that the continent faces a real prospect of another recession, as politicians have failed to halt the acceleration of the debt crisis.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI refunds 'offer better interest rates than savings accounts'

Tue, 15 Nov 2011 12:37:35 GMT

Thousands of people are realising that they can make payment protection insurance claims on policies that were mis-sold to them in the past and that the financial benefits of claiming could be very rewarding.

The amount people receive from PPI refunds depends on how long they have been paying the premiums as some claims can be made on policies taken out as far back as 2001.

Mike Warburton, tax director at Grant Thornton, told the BBC's Money Box podcast that the interest rate on the premiums was better than those currently found in many bank or savings accounts.

He said the eight per cent rate was "very good" for people and ensured that compensation was fair to them.

Mr Warburton also advised people to read the letter they get with their compensation payment, as it will explain whether the interest has been taxed or not.

According to Which?, more than £200 million has already been paid out by banks and providers to individuals who have made PPI claims this year.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Unemployment 'to get worse'

Tue, 15 Nov 2011 12:33:26 GMT

Payment protection claims and loan refunds could be used to help those who have recently been made unemployed steady their personal finances, as the chances of many people finding another job are seen by some as remote.

The general secretary of Unison Dave Prentis has stated that the employment forecast looks bleak for many people currently in work.

He said that the number of redundancies in the public sector is much higher than the Office for Budget Responsibility initially forecast and the government cannot expect the private sector to make up the shortfall.

"As unemployment and inflation figures look set to soar further, the chances of economic growth get slimmer by the second," he added.

Mr Prentis recently stated that local government workers are having their morale lowered by job cuts and pay freezes. He warned that the country will suffer if these individuals continue to feel this way, as the services public sector workers provide are vital to the country's communities.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Money worries 'grow'

Tue, 15 Nov 2011 09:38:16 GMT

Payment protection claims could be needed by consumers in the UK as many are experiencing worsening fiscal conditions.

New research from unbiased.co.uk found that 47 per cent of Brits believe their financial position has deteriorated over the last six months.

Most individuals were concerned with the amount of savings they possess, while many of the people who are coming to the end of their working lives are now anxious about their long-term care prospects.

Karen Barrett, the site's chief executive, said the UK's economic circumstances had pushed money concerns to the forefront of most consumers' minds.

She added that many households are faced with severe pressures on their budgets and people need to consider all the options available to them to help them cope in the future.

According to research conducted by Standard Life last month, people in the UK spend £317 every month on credit card purchases, while they only manage to save £140.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Homeowners 'cannot afford to move'

Mon, 14 Nov 2011 13:43:38 GMT

Payment protection claims could free up the cash many first-time buyers need to move to a new home.

According to new research from HSBC, 360,000 people cannot afford to move on from their current home. The bank states that people who bought their property while the market was experiencing high house prices in 2007 are now suffering as the financial crisis has meant many homes have lost their value.

Anyone who has not been saving will now find it very difficult to climb the housing ladder as house prices have dropped an average seven per cent since then, stated the firm.

"Making overpayments on the mortgage is one way that these movers can help build up their finances to take the next step up the property ladder," said Pete Dockar, head of mortgages at the bank.

According to the Consumer Credit Counselling Service, since 2001 house price rises have outstripped earnings and moving up the property ladder has had adverse financial implications for younger homeowners.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Brits 'to cap Christmas spending'

Mon, 14 Nov 2011 11:22:45 GMT

Payment protection claims and loan refunds could help consumers cover the cost of Christmas this year, as many households plan to keep a tight budget due to ongoing financial concerns.

A new report from American Express found, on average, Brits will spend £364 on gifts this year, with two-thirds of individuals stating they will put a cap on the amount of money they are willing to spend.

"People are looking to take a more savvy approach to buying presents this year, but the cost of Christmas is still higher than it has been in previous years," said Julie Hay, head of credit cards at the company.

According to the research, in a bid to save money, 23 per cent of consumers will give out homemade presents this year, while 48 per cent will require a gift list so they know they will not be wasting money on unwanted gifts.

PPI claims could also help people avoid getting into debt, as a study from MoneySupermarket.com found 11 per cent will use a credit card to pay for goods this Christmas.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Energy bills 'causing concern'

Mon, 14 Nov 2011 09:54:02 GMT

PPI refunds could give some British consumers the extra financial boost they require to pay their energy bills this winter.

Due to the tough economic climate created by the banking crisis and rising gas and electricity prices, 82 per cent of households in the UK are now worried about how they are going to be able to afford their fuel bills this winter, according to new research from Confused.com.

The study found that many people were making extreme alterations to their spending to cope, as 43 per cent are buying less food than they have in the past.

"As costs of everyday living are increasing, people must look at alternative ways to save money rather than cutting down on daily essentials or even those little luxuries," said Lisa Greenfield, energy expert at the comparison site.

A prior study from Confused.com revealed many people were already rationing the amount of gas and electricity they used, with some sharing bath water and eating by candlelight.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Unemployment 'to rise'

Fri, 11 Nov 2011 16:27:34 GMT

British households may need to use payment protection claims and credit card refunds to help them avoid further money concerns in the future.

Many families are already struggling with the high cost of living and low incomes that have been widespread since the banking crisis, but recent developments in the eurozone could see the UK's economic situation deteriorate further.

Recent troubles in Greece and Italy have caused the European Commission to reduce its economic growth forecast for the eurozone from 1.8 per cent to 0.5 per cent and there are fears the circumstances could become worse.

Consequently, unemployment in the UK could rise to 8.6 per cent, stated the commission's report.

"This forecast is in fact the last wake-up call. The recovery in the EU has come to a standstill and there is a risk of a new recession," said Olli Rehn, the European Union's economic and monetary affairs commissioner.

According to Credit Action, there are 867,000 people in the UK who have been out of work for more than a year.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Housing a second child could cost £60,000

Fri, 11 Nov 2011 15:05:16 GMT

Families thinking about having a second child should check to see if they are eligible for a payment protection claim or loan refund, as the costs involved may prove to be prohibitive.

New research from HSBC found the average cost of housing an additional child in the UK is £59,500.

The extra money was mainly attributed to the increase in price between a two-bedroom house and a three-bedroom property. HSBC revealed the upsizing could cost 1.6 times the average household salary.

Bruno Genovese, head of savings at the bank, said that there are always financial implications when deciding to have children.

"However, the second child seems to be [a] catalyst for many families moving to a larger home which is often the largest financial outlay they will ever undertake," he added.

Recent figures from the Council of Mortgage Lenders revealed that the total amount of money provided by loans to purchase property in September 2011 was £7.21 billion.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Weather 'will make elderly vulnerable'

Thu, 10 Nov 2011 17:03:27 GMT

Payment protection claims or credit card refunds could provide the financial confidence people need in order to keep the heating on this winter.

Dr Ros Altmann, director-general of Saga, said that with the government cutting the Winter Fuel Payment many households will feel the effects of the cold temperatures more than ever in the coming months.

"We are particularly concerned about the statistics showing that the UK has a higher winter death rate among older people than most other European countries," she said.

Dr Altmann believes this winter could be particularly tough due to fuel prices that have increased during the course of the year.

Saga is backing a scheme which could allow people who feel they do not need the reduced Winter Fuel Payment to pass on their entitlement to others.

According to the Department of Health, the cold weather is increasing the incidences of strokes, heart attacks and respiratory problems.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: Savers 'not seeing rewards'

Thu, 10 Nov 2011 16:56:27 GMT

UK consumers who are struggling to make their savings pay could consider making a payment protection claim or seeking a loan refund to provide the financial boost they need.

According to Save Our Savers, low interest rates mean keeping money in an account or Isa no longer produces worthwhile benefits.

The group found that if the current rate of inflation remains constant and the Bank of England chooses not to increase the base rate of interest, savers could end up losing a cumulative £43 billion during the next 12 months.

Bank of England policies have contributed to a 25 per cent drop in the value of sterling since 2007, stated Save Our Savers.

The Investment Management Association recently said that UK savers will also be hit by the Financial Transaction Tax.

Julie Patterson, the director of the group, said banks and financial institutions should be reprimanded for the fiscal crisis and not ordinary savers.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card claims: Young 'should try to save'

Thu, 10 Nov 2011 16:48:52 GMT

Credit card claims could provide young consumers with the initial financial boost they need to build up savings that could be useful in the future.

Due to the banking crisis and the resulting austerity measures, many young people are finding it difficult to pay for essential purchases and still have enough money left over at the end of the month to contribute to a savings account, said the editor of Cashquestions.com Annie Shaw.

She explained that many people in their 20s and 30s are out of work or are surviving on low wages, but if they could somehow find a way to start saving then it may help them avoid debt problems in the future.

"Young people should be aware of the power of compound interest and a long-term investment," she added.

Last month, Standard Life revealed the average UK consumer will spend £152,000 on credit cards during the next 40 years, but will only save £67,200 during the same period.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Brits 'use plastic plates to save money'

Thu, 10 Nov 2011 10:32:32 GMT

Payment protection refunds and credit card claims may be helpful for many families in the UK who are struggling to find the money to replace broken household items.

New research from swiftcover.com found one in six families try to repair domestic items goods as they cannot afford to replace them, while 1.2 million families across the country now use plastic crockery.

The survey also revealed 20 per cent of British households continue to use faulty items until they are totally unusable and that most domestic products are broken in the kitchen.

"There's clearly a growing acceptance that money is tight so getting the glue out or making do is now most definitely back," said the site's home insurance expert James Barclay.

Recent research from Barclays showed that 92 per cent of families in the UK are cutting back on the amount of money they spend each month, with many people spending up to three hours a month thinking about how they could reduce their outgoings.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Job losses 'could increase financial woe'

Wed, 09 Nov 2011 17:05:26 GMT

Payment protection claims and credit card refunds could provide people with extra financial support they may need if they have recently become unemployed.

The Office for National Statistics has released figures which reveal that 292,000 people in the UK have been made redundant since the start of 2011 and the Consumer Credit Counselling Service (CCCS) believes many of them will soon experience financial difficulties.

According to the charity, of the 418,000 people who needed its services last year, almost a quarter cited redundancy and unemployment as one of the major causes of their money concerns.

"Redundancy is a huge financial blow for those affected. While many will find new jobs, large numbers will not or will have a gap before they do," said Delroy Corinaldi, the CCCS's director of external affairs.

Recently, the TUC reported that 97 per cent of the local authorities in the UK had seen a rise in youth unemployment during the last year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Energy prices 'causing tensions'

Tue, 08 Nov 2011 17:10:16 GMT

Payment protection claims and loan refunds could be used to pay for the initial home improvements that could eventually see households' energy bills fall - and subsequently may reduce the number of disagreements associated with them.

As family budgets struggle to adjust to rising inflation, increasing unemployment and falling income levels, energy bills are becoming an increasing concern. New research from MoneySupermarket.com found the high gas and electricity prices are also causing tensions between family members.

Three-quarters of people in the UK state any arguments over turning the central heating on are derived from money worries.

Scott Byrom, energy expert at MoneySupermarket.com, said some consumers can expect to see bills of £514 during Christmas and New Year.

The site advises homeowners to invest in double glazing and draught excluders, which will lower prices for years to come.

EDF Energy consumers can expect to see their prices rise on November 10th,as the company has announced that it will increase the prices of gas by 15.4 per cent and electricity by 4.5 per cent.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Consumers 'at risk of insolvency'

Tue, 08 Nov 2011 16:57:36 GMT

People struggling with the threat of bankruptcy could make a payment protection claim to alleviate some of their financial troubles.

New research from the Money Advice Trust (MAT) shows nearly five million consumers in the UK are concerned by their current fiscal situation.

People could find that loan refunds are a more viable option than many of the current solutions they are using such as shopping on credit cards and selling assets or even pets.

British households are finding it increasingly difficult to put food on the table, buy petrol and pay for gas and electricity and consequently many are finding themselves in growing debt problems, said Joanna Elson, chief executive of the MAT.

The latest figures from the Insolvency Service show the number of people opting for insolvency is increasing, as 3,039 people chose to have a voluntary liquidation.

This equates to a 6.8 per cent rise compared to the third quarter of 2010.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Many 'people struggle to afford marriage'

Tue, 08 Nov 2011 16:55:18 GMT

Payment protection claims could provide people with enough financial flexibility to be able to afford to get married.

Many couples have found themselves with tight fiscal constraints and money worries since the banking collapse contributed to the UK's recession and new research from Churchill Home Insurance suggests that weddings are at the back of most people's minds.

Many individuals choose to spend any spare cash they have left after paying bills and food costs on starting a family or saving for a house deposit, the study revealed.

A fifth of unmarried couples in the UK reported their financial conditions have had a direct effect on their decision not to get married, while eight per cent said money concerns meant they were unlikely to ever get married.

"It appears that having a big wedding is now seen as a 'nice to have', but starting their own family is what's really important for many couples," said Matt Owen, a company spokesperson.

Prime minister David Cameron recently stressed the importance of marriage and said the government will seek to support the status in the tax system.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit cards charges: One in ten to use credit cards this Christmas

Mon, 07 Nov 2011 15:40:45 GMT

One in ten people will turn to their credit card or store card to pay for Christmas shopping this year - potentially increasing the number of credit card charges they are subjected to in 2012.

According to MoneySupermarket.com, the figure is a marked reduction in the number planning on using credit to pay for Christmas presents when compared to last year.

The price comparison website claims that the reason for the fall is that consumers are starting to get more savvy.

According to the website, 8.4 per cent of those surveyed about their Christmas spending habits claimed that they are already paying money into a regular saving scheme to cover the cost of gifts.

Just 4.4 per cent claimed they would use their overdraft, but a similar number said they were unsure how they were going to fund the increased expenditure.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "The golden rule of festive spending is to know how much you have available and then stick to your budget, or you could be left in the cold paying off Christmas well into the New Year."

Recently, Lovemoney.co.uk claimed that high interest rates - and other credit card charges - could be behind a fall in credit card use this Christmas.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claim: Bank 'dodges outstanding tax bill'

Mon, 07 Nov 2011 15:35:59 GMT

Investment bank Goldman Sachs has managed to dodge an outstanding tax liability bank claim after striking a deal with HM Revenue & Customs (HMRC), it has been claimed.

The taxman waived the £10 million interest bill because there were concerns that failing to do so would reopen a £30 million legal dispute over bonuses, reports the Financial Times.

A tax official at the HMRC, Dave Harnett, denies that a lucrative deal was struck and said there was a legal impediment to collecting the money.

Goldman Sachs denies there was a legal impediment and goes further, saying that it does not owe HMRC anything.

The case revolves around using offshore employee benefits trusts, which allowed the institution to avoid National Insurance contributions on bankers' bonuses.

Goldman Sachs settled with HMRC out of court following a protracted legal battle.

Recently, the European Commission claimed that it would force the UK to cut bankers' bonuses - a move that the City of London claims will cause many employees to move to Asia and the US.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank refunds: RBS bankers to get £500m in bonuses

Mon, 07 Nov 2011 15:30:15 GMT

Bankers at the Royal Bank of Scotland will get around £500 million in bonuses this year despite a marked decline in investment profits - news which could annoy bank refunds claimants trying to make ends meet.

Many of the company's investment specialists are expected to be paid in excess of £1 million in spite of calls from ministers and the public for financial institutions shored up by taxpayers' money to rein in their bonus payments.

Profit at RBS's investment operation fell from £589 million last year to just £112 million in the third quarter of this year.

Liberal Democrat peer Lord Oakeshott said: "I don't want my taxes going to pay for hundreds of RBS investment bankers taking home millions in bonuses as their profits tumble.

"We should buy 100 per cent of RBS now and focus it on the real banking that Britain's businesses need."

RBS is currently 83 per cent owned by the taxpayer, but the institution's share price is too low for the government to recoup the money it injected in the bank during the height of the financial crisis.

Earlier this year, business secretary Vince Cable called on the government to change the way it supports banks so unnecessary risks are not taken.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank Claim: Rental costs 'being driven up'

Fri, 04 Nov 2011 12:22:38 GMT

Payment protection insurance claims may free up enough spare cash for tenants to cope with rent prices that are historically high.

Tenants in London are seeing their monthly rates increase as demand in the rental market continues to grow, said director of Ludlowthompson.com Stephen Ludlow.

He attributed the increase in rental popularity to the fact that many potential first-time buyers can no longer afford the deposit that is required by banks to secure a mortgage deal to buy a property.

New homes cannot be built to alleviate the problem as banks are "unwilling to lend to property developers", Mr Ludlow added.

The expert believes the financial situations tenants find themselves in will only get worse as rental rates are set to increase in the future.

Homeowners are also feeling the effects of the economic climate, as new research from Shelter shows between now and Christmas 35,000 people could be threatened by home repossession.

Credit card charge: £174m daily interest in UK

Thu, 03 Nov 2011 17:05:54 GMT

Consumers may want to see if they are eligible to make a credit card payment protection insurance claim to help them cope with the rising levels of debt in the UK.

British consumers make interest payments of £174 million daily and the total amount of money spent on the nation's credit card bills each day is now £1.278 billion, according to new research from Credit Action.

The group also revealed that a home is repossessed every 14.6 minutes and 867,000 people have been unemployed for over a year.

"While the Bank of England shows no signs of raising the base rate in the near future, consumers still need to be careful about the rates of interest they pay," said Keith Tondeur, Credit Action's president.

He said it was particularly important that consumers reduced the amount of money they spend on credit due to other constraints such as unemployment and high inflation.

With the consumer price index measure of inflation now at 5.2 per cent, MGM Advantage estimates UK households will need to find an extra £46 million to enjoy the same standard of living as they did a year ago.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers

PPI Claims: Households 'struggling with energy bills'

Thu, 03 Nov 2011 15:49:37 GMT

Payment protection refunds could provide the financial assistance consumers in the UK may need to be able to afford to keep their heating on this winter.

An average increase of £224 in the cost of people's energy bills this year has meant more people in the UK now worry about the price of their gas and electricity consumption than the costs of their mortgage, according to new research from uSwitch.com.

The anxiety has meant 89 per cent of the UK population will ration the amount of fuel they use this winter.

Ann Robinson, the site's director of consumer policy, said the notion that seven million people in the UK living in fuel poverty was alarming.

She stated the "impact on health and quality of life could not be underestimated".

Recent research from Friends of the Earth found that 90 per cent of people would welcome an inquiry into the business practices of energy firms.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Incomes 'must rise'

Thu, 03 Nov 2011 15:46:33 GMT

Payment protection claims could be useful for many workers in the UK who may find themselves struggling with stagnating incomes and rising inflation.

Dave Prentis, the general secretary of Unison, said that the national minimum wage (NMW) would need to be set at £8 per hour by the end of 2012 to adequately reflect the increase of the price of goods and services in the UK since the banking crisis began.

The union leader explained that the NMW was in place to stop workers being taken advantage of and boosting it would be an effective way of initiating growth in the country's economy.

Social care workers were particularly at risk due to employers cutting their wages to rearrange budgets because of a decrease in funding, he added.

This comes after Linsey Thomson, senior economic analyst at the Alliance Trust, said high inflation rates coupled with rising unemployment was seriously stretching household budgets.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims have led to FSA 'intervention'

Thu, 03 Nov 2011 12:31:23 GMT

The large amount of mortgage and loans holders who were mis-sold payment protection insurance (PPI) has led to the Financial Services Authority (FSA) intervening to impose restrictions on future financial products.

Many consumers have been able to make PPI claims since it was revealed the packages were unfair and the FSA has released guidelines to prevent future banking products from misleading customers in the same way.

"Firms must learn the lessons of the past and make sure they have consumers' needs at the heart of new product development," said the FSA's managing director Margaret Cole.

Since the PPI scandal, banks have modified the products they provide but they are still a cause of concern for the FSA.

In September, Richard Lloyd, the executive director of the consumer watchdog Which?, said banks are still failing to deal with PPI refunds fairly and the FSA must take further action if the situation does not improve.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card claims: Consumers 'will reduce spending'

Wed, 02 Nov 2011 17:20:01 GMT

The high rate of interest associated with some credit cards could trigger a reduction in the amount people use them this Christmas and in the future.

This is according to Lovemoney.co.uk's head of consumer finance Ed Bowsher, who stated the financial crisis – brought about by the banking collapse – is starting to have a "big impact".

Mr Bowsher said consumers are beginning to realise that debt is very prohibitive to people's quality of life and some individuals may take years to repay what they currently owe to banks and credit providers.

People can reduce the amount they spend by only purchasing products that are essential, the expert added, and he told people to plan what they need to buy before they embark on a shopping trip as this could mean they are less likely to waste money on unneeded items.

Recent research from MoneySupermarket.com found that if people spend £500 on a typical credit card this Christmas they could still be repaying it in 2023.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claims: Young 'struggling to cope'

Wed, 02 Nov 2011 17:14:19 GMT

Payment protection claims could offer a financial respite to the UK's younger generation, who are experiencing major money worries and are faced with harsh economic prospects.

New research from the Consumer Credit Counselling Service (CCCS) found that nearly three-quarters of 18 to 39-year-olds have unsecured debts.

The problem was widespread with over a million households in the age group finding the current financial situation meant they were having difficulties staying financially viable.

Loan refunds could be a more effective financial measure than debt management schemes for these young people with money troubles.

"It is … essential they are protected from the aggressive practices of commercial debt management companies who will only add to their debt burden," said Wilf Stevenson, CCCS's chairman.

According to Credit Action, average consumer debt including unsecured loans in the UK now stands at £15,432, and the sum rises to £55,795 if mortgages are taken into consideration.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: People 'need to keep warm this winter'

Wed, 02 Nov 2011 12:08:53 GMT

Making a payment protection claim or seeking a loan refund could provide households with the financial lump sum they need to be confident of staying warm this winter, despite the increasing costs of gas and electricity.

Michelle Mitchell, charity director at Age UK, believes that cold weather combined with fuel poverty causes many adverse health impacts on people who are in a vulnerable position, such as the elderly.

She was commenting after the Department of Health (DoH) issued its proposals to make people aware of the financial options available to them during the winter.

Met Office figures show that December 2010 was the coldest in 100 years and winter 2008-9 saw average temperatures at their lowest since 1978.

Over the last 12 months, energy bill payers have struggled to cope with an average increase in fuel prices of 14.2 per cent, as 27 per cent of the UK population is now in fuel poverty, according to research from Confused.com.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Slow growth will cause more problems

Tue, 01 Nov 2011 17:11:21 GMT

Payment protection claims could help people offset the potentially damaging affects of slow economic growth.

The general secretary of Unison Dave Prentis has said that the 0.5 per cent growth in the economy during the three months leading up to September was evidence that the government's plan was not working.

He believes that people all across the UK are struggling with increased VAT, high inflation and cuts to tax benefits and many have not had a pay rise to help them cope with these costs.

Loan refunds could be particularly useful for people nearing retirement, as Mr Prentis said a proposed pensions hike could mean that budgets are under even more strain.

Fellow union leader Brendan Barber, the general secretary of the Trades Union Congress, stated that this has been the slowest economic recovery in nearly a century and the government must now adopt a different fiscal strategy to implement growth.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Consumers 'want to pay off debts'

Tue, 01 Nov 2011 17:09:21 GMT

PPI claims may provide a large financial boost that could be used by people to pay off their debts.

The difficult economic climate - which has seen low interest rates and high inflation - has meant many consumers have prioritised reducing their debts, according to Andrew Hagger, Moneynet.co.uk's spokesperson.

It was a sensible course of action in the circumstances, he said, as the interest people will be paying on debts will be much higher than any return in savings.

Mr Hagger believes the increase to the cost of living is also affecting the amount people are spending on credit cards.

The price of lots of everyday essentials has increased and household budgets can only stretch so far, so they are reducing the amount of money they borrow, the expert added.

Recent research from LV= found although many consumers were struggling with money issues, 77 per cent were reluctant to give up lifestyle essentials such as eating out and travelling abroad.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Spending will rise over Christmas

Tue, 01 Nov 2011 14:23:28 GMT

Payment Protection Claims could help consumers in the UK have enough disposable money to enjoy the festive period without worrying about large debt repayments next year.

As people stretch their budgets to incorporate gifts and expensive food and drinks, the amount of money some consumers owe is inevitably going to rise, said Andrew Haggar, a spokesperson for Moneynet.co.uk.

The loan claims could be useful as the expert states there is little time left for consumers to save enough money to cope with the increased expenditure.

Individuals will always pay out more in December but this year the economic situation has resulted in some people curbing their spending more than in previous years, Mr Haggar added.

Recent research from M&S Money found 39 per cent of shoppers will not budget their spending this Christmas and 46 per cent of people who do will not adhere to it.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: VAT 'affects poor more'

Mon, 31 Oct 2011 18:18:24 GMT

Payment protection claims could be useful for many consumers in the UK who are seeing VAT cut into their household budgets.

New figures from the Office for National Statistics show the lowest-earning families in the country are paying a higher proportion of VAT than the equivalent low-earning families did in 1986.

The research also found that they are paying a higher amount of VAT per income than the highest earning households.

Much of the discrepancy between the two dates can be attributed to the five per cent VAT that was added to fuel in April 1994 but consumer spending habits have altered too.

In 2009-10, the lowest socio-economic groups are spending a much higher amount on goods that come with value added tax levels, such as cars, holidays and televisions, concluded the report.

British Retail Consortium director general, Stephen Robertson said the government's recent VAT increase had slowed consumer spending.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Financial struggles are country-wide

Mon, 31 Oct 2011 16:55:21 GMT

Payment protection refunds could help people in every corner of the country cope with increasingly stretched household finances.

Consumers in all areas of the UK have become more negative about their fiscal situation since January this year, according to new research from Lloyds TSB.

People in the north-east were most affected during this period, as they reported an 11 per cent increase in levels of pessimism, but large numbers of consumers in the West Midlands and London were also affected.

In addition, the bank carried out research to ascertain which age groups were affected by the economic circumstances.

Younger consumers were the most concerned since the start of the year, with both the under-30 and the 30-44 age groups reporting a rise of eight per cent in anxiety levels.

The bank recently revealed that consumers are pessimistic about their employment prospects and are reducing their spending as a result.

Inflation was also a major cause of apprehension as it is now rising quicker than the average wage rise cut.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Insulation 'is a must this winter'

Mon, 31 Oct 2011 16:51:47 GMT

Payment protection refunds could help people who are experiencing financial pressures this Christmas ensure they have enough money to avoid potential household disasters.

The money from a loan claim could be used to pay for insulation that could prevent water pipes bursting as the temperatures fall.

"Last winter was hard for us all but for many it was made much worse by having to deal with frozen and burst water pipes," said the chair of the Consumer Council for Water Dame Yve Buckland.

Homeowners leaving their house uninhabited for a few days should also ensure they set their heating to automatically turn itself on to help prevent the water in the pipes turning into ice.

The group was established in 2005 and has since helped water customers claim for more than £13 million in refunds and compensation from providers.

Recent research from MoneySupermarket.com found one in four households stated they could not afford to switch their heating on.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Council workers 'at risk of poverty'

Mon, 31 Oct 2011 15:59:57 GMT

Public sector workers could offset their frozen income levels with a loan refund.

According to Unison, more than one million low-paid government workers have not had a pay rise for two years. During this time the cost of living has continued to climb and incomes are worth increasingly less.

Helen Wakefield, the union's head of local government, said that if the wages remain the same for a third consecutive year then a large amount of families will slip into poverty.

"Council workers are already suffering from cuts to jobs and services, their terms and conditions are under attack at local level and the government plans to change their pensions," she added.

Unison has collaborated with Unite and GMB to lodge a pay claim on behalf of the workers.

Brendan Barber, general secretary of the Trades Union Congress, recently called for the national minimum wage to be increased by more than the rate of inflation.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Households 'struggling in Q3'

Mon, 31 Oct 2011 15:59:06 GMT

Payment protection refunds may help many consumers in the UK who have just experienced some of the toughest financial conditions in recent times.

A high rate of inflation - which is consequently reducing the amount of spending power available to households - was one of the major contributors to a record fall in the Alliance Trust UK Financial Reality Index.

The measure dropped to 56.7 in the third quarter of this year, revealing financial conditions are the worst they have been for individuals in the UK since the culmination of 2008.

Alliance Trust sets its index's long-term average at 100 and it has been an accurate measure of future spending patterns in the past.

The consumer prices index rate of inflation is now at 5.2 per cent and this means households in the UK will need to find a combined £46 billion to continue to enjoy the same standard of living they were experiencing a year ago, according to MGM Advantage.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: Inflation 'outstrips earnings and savings'

Mon, 31 Oct 2011 14:29:14 GMT

Payment protection refunds could be a timely boost to consumers' income levels as the average wage rise is now much less than the rate the cost of living is increasing at.

Private sector pay rises rose by a median average of 2.6 per cent during the three months leading up to August, while their public sector counterparts' pay did not changed at all, new figures from Incomes Data Services (IDS) showed.

Some workers in the private sector received small protection payments of £250 to guard against rising living costs. However, according to the IDS, this equates to much less than the rate of inflation.

The Bank of England recently announced that the current consumer price index is 5.2 per cent and MoneySupermarket.com stated people who pay the lowest level of income tax now need to find a savings account that offers a 6.51 per cent rate of interest to gain any real-term benefit.

"For savers, the low number of products which currently offer a return above inflation, means keeping a closer eye on their interest rates," said Kevin Mountford, head of banking at the comparison site.

PPI claims could provide lump sum for retirement plans

Mon, 31 Oct 2011 12:22:21 GMT

Payment protection refunds could provide people approaching retirement age with the added financial security they need to be confident they can cease working.

More than one in five 45 to 65-year-olds in the UK now feel their current investments will not be sufficient to allow them to retire, a new report from Standard Life found.

According to the data, only 16 per cent of this age group feel they have enough savings and provisions to feel confident about retiring.

The savings and investments company urged individuals to reassess their budgets.

Recently, figures from the Financial Services Authority (FSA) revealed that £215 million in PPI refunds were paid out by banks and lenders between January and June this year.

"We remain 100 per cent committed to ensuring that where consumers were mis-sold PPI they will receive the appropriate redress from firms, and we are monitoring firms' progress to ensure this is done," said Margaret Cole, the FSA's conduct business unit's interim managing director.

PPI Claim: People 'face debt due to mortgages'

Mon, 31 Oct 2011 11:56:44 GMT

Homeowners who took the option of an interest only mortgage could try to offset a potential "time bomb" of debt by making a payment protection claim.

Many people who purchased their homes while the housing market was healthy and experiencing growth chose the option of buying their property with an interest only mortgage, according to Paul Holmes, Firstrung's chief executive.

He said there had been a stagflation in the property market that was causing people to be faced with huge debt problems.

Mr Holmes explained that homeowners took out the interest only option believing their house would rise in value by the time they had paid the mortgage off. Unfortunately the banking crisis and the subsequent crash in property prices will see many people face debt issues.

Recent figures from Alliance Trust Savings show that its financial reality index fell by a record amount in the third quarter of the year, indicating financial conditions were already difficult for most people.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Parents 'to make fee sacrifices'

Fri, 28 Oct 2011 11:58:52 GMT

Parents who are feeling under pressure to help pay their children's tuition fees could consider making a payment protection claim to help their financial situation.

Many mothers and fathers will reassess their budget to help find the extra money needed to cope with education charges that will be £9,000 annually from the start of the 2012 academic year, according to a new report from uSwitch.com.

The research shows that ten per cent will reduce the amount they spend on everyday items, 34 per cent will use their savings and 15 per cent will take out a loan. Only five per cent of parents whose children are currently studying have felt the need to take out the credit option.

Many parents are already struggling with their household finances "in the face of the rising cost of living, job losses and pay freezes", said the site's personal finance expert Michael Ossei.

Credit Action stated the rise in fees has brought unavoidable uncertainty among potential students.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: House prices 'set to fall'

Fri, 28 Oct 2011 11:52:12 GMT

People who purchased a home when the housing market was at its peak in 2007 could use payment protection claims to help them if they are currently experiencing negative equity.

Knight Frank recently predicted it could take until 2028 before some houses return to the price they were valued at before the onset of the banking crisis.

By 2015 the real-term average fall in house prices since 2007 will be 29 per cent, according to the organisation's figures.

Commenting on the data, Jane Marr, company director at the Little House Company, said the housing market has been significantly affected by the lack of a "feel good factor".

The current financial climate means many homeowners are being notably influenced by anxieties about their jobs, bills and rising inflation, she commented.

Ms Marr added that demand in the property market will fall, resulting in even lower house prices.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking

FSA 'right to act to avoid PPI claim-style scandal'

Thu, 27 Oct 2011 15:59:13 GMT

Consumer Focus has said the Financial Services Authority's (FSA) decision to investigate packaged bank accounts is the right course of action.

Banking customers need to be able to trust their financial provider, said Sarah Brooks, director of financial services at the charity.

"We have raised our concerns with the FSA that many consumers may have been mis-sold accounts, which mean they pay for extras they don't actually need or use," the expert added.

She expressed concerns that packaged bank accounts may have been mis-sold in a similar manner that led thousands of consumers to claim PPI refunds from their banks and credit card providers.

Ms Brooks stated that the FSA was right to propose action to make banks check customers are eligible for the insurance that is provided by many of the packaged bank accounts.

According to recent research from Defaqto, the number of these accounts available in the UK has doubled since 2006.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Credit Action concerned about rising costs

Thu, 27 Oct 2011 15:55:48 GMT

Payment protection claims may be needed by many homeowners who are already on the poverty line as energy prices are expected to increase.

Consumer Focus reported that energy company Ovo has increased the amount it will charge its customers.

Adam Scorer, the director of external affairs at the group, said the news was worrying for households.

"Ovo customers will be disappointed but not shocked by this announcement. An energy price rise is always unwelcome news, but this is lower and later than other suppliers' increases," he added.

The charity recently published its debt statistics for October. The figures revealed that the average household in the UK was £55,822 in debt and consumers in the UK are paying £175 million in interest every day.

People could also make a credit card claim if they were missold protection insurance.

Currently in the UK there is £1.278 billion on credit card balances, according to the charity's figures.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank Claim: People 'are wasting fees'

Thu, 27 Oct 2011 15:53:17 GMT

Many high street banks offer current accounts with added bonuses such as mobile breakdown cover and travel insurance, but new research has found that people are not using the services and are wasting the fees they pay to the bank each month.

Consumer watchdog Which? found a third of the people in the UK with these products never use the benefits of the account, a figure which equates to between £240 and £320 million in wasted bank fees every year.

According to the group, the Financial Services Authority (FSA) is about to discuss the scenario and Which? executive director Richard Lloyd said he was pleased by the FSA's decision.

"Banks have a responsibility to make packaged accounts more transparent by clearly explaining what each of the individual elements are worth, so customers can compare," he added.

Recent research from Defaqto has found that the number of such accounts in the UK has doubled during the last five years.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Solar panel installation 'could save money'

Thu, 27 Oct 2011 11:54:02 GMT

Payment protection refunds could help pay for the upfront costs of installing a solar panel, which could ultimately help people save money on their energy bills.

According to the Energy Saving Trust's energy doctor Jessica Forster, more than 90,000 consumers in the UK have chosen to install the low-carbon energy sources on their roof since last April to take advantage of Feed-in Tariffs (FIT).

The energy-saving expert said if anybody was thinking of doing this, now was the time to make the upfront investment to reap the rewards of the FIT scheme, as the rate of the tariff was now guaranteed for the next quarter of a century.

Energy bills are one of the country's major sources of financial stress.

Recent research from uSwitch.com found 28 per cent of UK households were struggling to pay their bills after an average price rise of more than £224 during the last year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank Claim: Bonuses 'should be taxed'

Wed, 26 Oct 2011 17:12:06 GMT

General secretary of the Trades Union Congress Brendan Barber believes fair taxation could help the country stimulate the economic growth it requires to reduce the national deficit and improve financial conditions for people in the UK.

"When city traders or hedge fund managers warn they will leave Britain if taxes rise, I say: let's call their bluff," said Mr Barber in a speech at the University of Liverpool.

He called for a tax on financial market transactions that could provide the Treasury with billions of pounds of revenue.

The banking industry needs to stop serving itself and provide for the British public, especially those banks bailed out by the taxpayer, added Mr Barber.

According to the Financial Times, some banks are setting aside up to 65 per cent of revenue to pay staff.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Incomes "need to be increased"

Wed, 26 Oct 2011 17:10:30 GMT

PPI claims could be an effective way for families to increase their spending power, which could subsequently improve the country's economic situation.

Consumer demand would receive a boost if people on low incomes received help, said Brendan Barber, the general secretary of the Trades Union Congress.

He outlined his alternative plan to tackle the UK's current financial crisis in a speech to the University of Liverpool, stating incomes are becoming less valuable.

"As wages have stagnated, debt has soared. As incomes are squeezed further, the Office for Budget Responsibility expects household debt in this country to reach over £2 trillion by 2015," said the general secretary.

Mr Barber also believes a new state bank needs to be created that could provide the finance for small and medium-sized business.

Recently, the union leader also voiced his concern about a new government report, which stated employers should be able to dismiss unproductive staff without explanation.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Refunds: Credit 'can make consumers pay'

Wed, 26 Oct 2011 12:21:14 GMT

Loan refunds may a good alternative to expensive credit for shoppers looking to find extra financial resources to help them enjoy a pleasant Christmas period.

According to new research from the comparison site Moneysupermarket.com, lots of consumers are worried about the expense of Christmas this year due to increasing inflation levels.

If people use credit cards to help pay for gifts and other festive products that total £500, they could still be paying for the purchases in more than 11 years time.

The site made the calculation surmising consumers used a typical credit card and made the minimum monthly payment.

"It can take a few weeks from application to receive your new card, so people should start doing their homework now and avoid last minute panic," said MoneySupermarket.com's head of banking Kevin Mountford.

An earlier study by the site revealed 60 per cent of people living in the UK were worried about funding Christmas this year – a figure that had increased by 15 per cent since 2010.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claim: Consumers 'pessimistic about income'

Wed, 26 Oct 2011 09:41:16 GMT

Payment protection refunds could be used to compensate for the decreasing levels of levels of income in the UK.

Markit's Household Finances Index survey found that households were finding it difficult to cope with rising inflation levels.

The research also showed that income fell for the 13th consecutive month in October and employed people in the UK believe their financial predicament will get worse, as 15 per cent anticipate a further decrease in income next year.

Households are expecting next year's wages to be worth less than they currently are as the cost of living continues to get higher, said Tim Moore, a senior economist at the firm.

Individuals employed within the public sector saw their wages drop by the biggest amount since March.

Joanna Elson, chief executive of The Money Advice Trust, said households were currently faced with a "gloomy financial picture".

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: Credit Suisse UK fined for SCARPS failings

Tue, 25 Oct 2011 16:00:28 GMT

The Financial Services Authority (FSA) has issued a fine of £5.95 million to the private banking firm Credit Suisse UK.

Many people who had invested in the company's structured capital at risk products (SCARPS) were not correctly assessed to ascertain their attitude towards the financial hazards associated with the purchase.

Credit Suisse UK was also charged with incorrectly advising its customers about the appropriateness of SCARPS.

Tracy McDermott, the FSA's acting director of enforcement and financial crime, said there were "significant and widespread failings" in the advisory process associated with the wealth management sector and that standards need to improve.

The firm agreed to pay its fine early and received a 30 per cent discount.

Credit Suisse UK has since made the required changes to its systems and will pay redress to customers who were misadvised.

As well as private banking, the financial organisation also provides investment banking and asset management services.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Refunds: Consumers 'afraid to switch lights on'

Mon, 24 Oct 2011 17:14:34 GMT

People who have had a successful payment protection claim may have the spare finances to avoid resorting to extreme methods of saving money on their energy bills this winter.

Bill payers are worried about the cost of gas and electricity and are rationing their usage, according to new research from Confused.com.

The figures revealed 72 per cent are trying to save as much money as possible and households in the UK are eating by candle light, sharing bath water and wearing extra layers.

Money from a successful PPI claim could be used to install many more sustainable changes around the home.

A new boiler could save up to £300 a year, loft insulation a further £145 and energy efficient light bulbs could yield a £3 saving each Confused.com said.

Audrey Gallacher, Consumer Focus' director of energy, said the latest fuel price increase had left nine million people in the UK living in fuel poverty.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refund: People 'worse off than during recession'

Mon, 24 Oct 2011 12:25:15 GMT

Loan refunds could be more important now than during the recession.

New research from the Money Advice Trust found that households are now feeling the effects of their financial constraints as circumstances become more restrictive than they were a few years ago.

"For the time being we may be technically out of recession, but the 'public's recession' has never gone away, in fact it's been getting steadily worse," said the trust's chief executive Joanna Elson.

Due to a higher cost of living and declining incomes people are becoming increasingly reliant on credit to ease their money worries, the research revealed.

The chief executive said people had been making unsustainable sacrifices such as cooking all their meals at the same time to lessen the cost of expensive fuel prices or selling their possessions.

Keith Wade, the chief economist at Schroders, recently predicted that economic growth in the near future would be "subdued".

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refunds: Alternative retirement plans 'are being made'

Mon, 24 Oct 2011 11:28:34 GMT

Payment protection refunds could be an effective way to supplement a person's retirement plans.

Many people have to find alternative investment strategies as their pensions are not yielding as much as they previously believed, Billy MacKay, marketing director at A J Bell, told the Financial Times.

Mr MacKay said people near retirement age are currently revising their income strategy or waiting until better fiscal conditions return.

"The challenge is a combination of a number of factors that have come together at a single time that has driven income levels down and the maximum income figure down," he stated.

Mr MacKay explained that the economic climate has reduced gilt yields to a new low and that was compounded by extremely volatile financial markets that made investing tricky.

Many people were seeing their potential pension earnings fall by up to 40 per cent, he added.

A J Bell has more than 55,000 clients and manages assets worth £15.1 million.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Homeowners 'cannot afford to move'

Mon, 24 Oct 2011 11:25:13 GMT

Payment protection refunds may provide the added boost to savings that next-time buyers who have been declined a mortgage may need to find a deal.

Nearly three-quarters of mortgage brokers said they were unable to provide a deal for at least one of their clients during the last few months, according to new research from the Intermediary Mortgage Lenders Association (IMLA).

Of the people who failed to find a mortgage, 31 per cent were individuals looking to buy their second house and many of them ended up moving into rented accommodation.

The study found that 14 per cent of mortgage intermediaries believed that financial conditions had led to a tougher housing industry.

"Our research highlights the continued tough conditions in the market when even they are struggling to secure finance for some customers," said the IMLA's executive director Peter Williams.

In the first half of 2011 banks and credit providers refunded £215 million, according to Financial Services Authority figures.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank Refunds: Consumers 'want luxury'

Fri, 21 Oct 2011 12:08:59 GMT

Bank refunds could help people continue to afford the luxury items they are hesitant to give up.

LV= has released new statistics which revealed the average British household now spends £5,850 on 'lifestyle essentials', despite the financial restrictions imposed on some people after the banking crisis.

The most popular extravagance individuals parted with their money for was holidays, as a total of £81.5 billion was spent during the 12 months preceding August 2011.

Mark Jones, head of protection at LV= said: "The nation is clearly reluctant to give up what they class as 'lifestyle essentials'. And the increasing cost of these items and services is putting people under pressure financially."

He was referring to statistics that show more than three-quarters of people reduced their expenditure on basic items such as food to be able to afford the luxury items.

LV= recently revealed that homeowners nearing retirement have seen an average £24,651 house price decrease over the last three years.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Shoppers 'can save money now'

Thu, 20 Oct 2011 16:26:50 GMT

A timely payment protection claim may provide consumers with an added incentive to brave the high street this Christmas.

According to Stephen Robertson, director general of the British Retail Consortium cut, now is the best time for people to find a good deal at the stores.

He explained that the retail sector is looking at the festive period to generate an increase in revenue to offset poor sales figures from earlier this year and consumers can take advantage of this fierce competition.

The added income from a bank refund may be particularly useful as recent research from HSBC found more than half of UK consumers plan to reduce the amount of money they spend on Christmas as economic worries increase.

Bargains are a popular way of saving money, as 78 per cent of people will try to get the best value for money when buying gifts for their friends and family, states the research.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Refunds: Housing costs causing concern

Thu, 20 Oct 2011 12:15:16 GMT

Payment Protection refunds could help people reclaim their "right" to stay warm this winter.

New research from swiftcover.com has found that energy costs are people's main concern.

Rising fuel prices meant that 39 per cent of people named their energy bills as their biggest worry, while 23 per cent said they are anxious about mortgage payments.

"This is a problem that is as universal as it is troubling. Staying warm during winter should be a right, but with rising prices, it is increasingly becoming a privilege," said Amanda Edwards, senior marketing manager at swiftcover.com.

Christmas should be a time for celebration but these bills will cause people to be anxious over the festive season, she added.

The Money Advice Trust's chief executive Joanna Elson said the latest inflation figures meant "gloomy" prospects for households in the UK.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan Refunds: London 'is poverty capital'

Thu, 20 Oct 2011 12:11:42 GMT

People living in the capital could use loan refunds to help with increasing poverty rates.

More than 600,000 children in London are now living in the worst conditions in the country, said Child Poverty Action Group's chief executive Alison Garnham.

She is worried that the situation – brought about by increased costs of living and lower incomes – could affect children's future chances.

"We need real action to stop the ranks of London's working poor swelling even further," Ms Garnham stated, before calling on the government to increase the income of those on low wages.

Brendan Barber, the general secretary of the Trades Union Congress, recently said low incomes are crippling the country.

He explained that any economic recovery could not happen while people are struggling to pay for food and energy. Mr Barber agreed with Ms Garnham by stating the government must formulate a plan to increase the amount of jobs available.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Recession 'has altered spending habits'

Wed, 19 Oct 2011 17:27:26 GMT

Bank refunds could be used to help people purchase holidays and eat out more often.

New figures from the Institute for Fiscal Studies found there had been a decrease in the amount of money people were spending on these items, as they readjusted their finances to cope with the aftermath of the financial crisis.

During the 2008-09 recession, people reduced their spending by five per cent and individuals have continued with these frugal habits. The IFS statistics revealed during the first quarter of 2011 spending was still below that of previous recessions in the 1980s and 90s.

Cormac O'Dea, a senior research economist at the IFS, said the drop in household spending since 2008 is significant in both its duration and the amount it has decreased by.

The Monetary Policy Committee at the Bank of England stated the economic downturn was more serious than originally believed and the drop in consumer spending was a contributing factor.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Benefits change 'will hit millions'

Wed, 19 Oct 2011 15:43:16 GMT

PPI claims could help consumers reduce the effects of proposed new Council Tax Benefit (CTB) alterations.

Trades Union Congress general secretary Brendan Barber criticised the idea as it would cause a million families who are already living on the edge of poverty more financial problems.

"The planned reforms will force local authorities to push vulnerable families deeper into poverty and debt," he added.

Mr Barber stated families with children will be particularly affected as they could see a 16 per cent reduction in the amount of benefit they receive.

The changes are part of the government's plans to reduce the deficit following the banking crisis. It hopes to reduce its CTB spending by ten per cent by abolishing the scheme and authorising local councils to decide who is entitled to benefits.

Prime minister David Cameron recently told parliament that reducing spending was the most effective way to avoid soaring interest rates like those seen in Portugal and Greece.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Savings affected by inflation

Wed, 19 Oct 2011 12:22:35 GMT

Bank refunds may become more significant as the financial benefits gained from investing in savings accounts are becoming minimal.

The interest rates associated with savings accounts have been "decimated" by taxation, a low base rate and rising costs of living, stated Defaqto's insight analyst for banking David Black.

A worker paying the most basic rate of taxation in the UK now needs to find a savings account that offers seven per cent interest before they can see any real-term fiscal return, according to the firm's figures.

Mr Black believes people should invest in reducing the amount they owe to high interest creditors such as store cards, credit cards and unsecured loans.

His comments came after the Office for National Statistics announced the retail price index (RPI) rate of inflation is at its highest level since 1991.

The RPI increased 0.4 percentage points during September and now stands at 5.6 per cent.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Inflation 'will cause more poverty'

Wed, 19 Oct 2011 12:20:23 GMT

PPI refunds may offer a lifeline for families faced with difficult choices as they struggle to survive in the current tough economic climate.

Alison Garnham, the Child Poverty Action Group chief executive, said the increased cost of living combined with falls in the amount of income that is available to them is meaning many households now need to prioritise which basic costs they can afford.

Some families were already feeling immense financial pressures and had stretched their budgets as far as they could go and rising inflation may break them, she added.

Ms Garnham also highlighted that the current consumer price index will be used to gauge benefits for the coming year and as it is currently lower than the old measure, low-income families will be doubly affected.

The last time the retail price index (RPI) was this high was in 1991. However, in that year the Bank of England's base rate of interest was almost double the RPI at 11.6 per cent. The current Bank Rate is 0.5 per cent.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Incomes 'are worth less'

Tue, 18 Oct 2011 17:15:02 GMT

PPI refunds could help individuals in the UK boost their income to cope with the increasing cost of goods and services.

Inflation rates are now accelerating at three times the speed that people's incomes are growing, said Brendan Barber, the Trades Union Congress's general secretary.

He urged the government to change its policy on economic growth to aid job creation and increase incomes and blamed its current approach for contributing to the poverty that many UK households now find themselves in.

Incomes have been cut by the removal of tax credits and pensions in the private sector could be reduced almost 30 per cent over the next 30 years, stated Mr Barber.

The consumer price index of inflation reached a 5.2 per cent high in September 2011, while the retail prices index is now the highest it has been since 1991, as it currently stands at 5.6 per cent.

During the last 12 months, the Office for National Statistics found that food prices had increased by 6.4 per cent and the cost of housing bills rose by 8.6 per cent.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Incomes 'are to be stretched further'

Tue, 18 Oct 2011 17:11:27 GMT

Bank refunds could be used to increase incomes that are struggling to cope with the rising cost of living in the UK.

Many people in the country are becoming dependent on credit to pay for food and energy bills, said Joanna Elson, the chief executive of the Money Advice Trust.

Rising inflation levels mean that incomes cannot stretch as far as they once did and are initiating a reliance on credit and that is causing debt problems, she added.

Office for National Statistics figures show the rate of inflation is now 5.2 per cent and Ms Elson advised people to seek help if they are using credit to pay bills.

Alternatively, consumers looking to boost their income may be entitled to PPI refunds.

Figures from the Financial Services Authority show banks paid out more than £215 million in PPI refunds in the first six months of 2011.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Banks 'need to be more ethical'

Mon, 17 Oct 2011 14:17:07 GMT

The banking sector needs to be more aware of its role in the wider community.

That is the claim from Triodos Bank, which found that 75 per cent of people in the UK feel their bank can be more socially responsible.

People are also becoming more inquisitive of their savings provider; 85 per cent want more information about what happens to their money after they have deposited it, the report found.

The Independent Commission on Banking has recently stated there needs to be changes in the banking sector, but Triodos's managing director Charles Middleton feels none of these proposed reforms address people's ethical concerns.

"There is a real sense that consumers are looking at their banks, the very organisations who brought the economy to its knees, and demanding they take an active role in helping to build it back up again," he added.

In September 2011, the Financial Services Authority reported that there was a further increase in the amount of complaints made against banks for their handling of PPI claims during the last six months.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Credit ratings 'could affect fuel costs'

Mon, 17 Oct 2011 14:11:07 GMT

PPI claims may be needed to help people pay for existing credit purchases to avoid being penalised by energy companies.

Gas and electricity suppliers are increasingly making use of data from credit reference agencies, according to a new report from Consumer Focus.

The data determines whether the firms offer customers the best deals, as those with a poor rating are considered a higher risk and asked to pay more for their electricity.

Consumer Focus believes this is unfair, as many people with lower credit ratings may have no history of struggling to pay for essential items such as energy bills.

Dhara Vyas, energy expert at the consumer group, said energy is an essential service that people need for their health and wellbeing and it must not be treated the same way as other types of credit, like loans and credit cards.

Paul Lewis from Credit Confidential recently urged people to always make sure they repay at least the minimum monthly repayment on any credit commitments they may have.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claims: Consumers' 'pessimism continues'

Mon, 17 Oct 2011 13:58:47 GMT

Bank refunds could help reduce some of the pessimism that consumers in the UK are feeling at the moment.

Lloyds TSB research shows that 83 per cent of people have a negative view of the housing market, while 91 per cent said their employment prospects were looking gloomy.

Also, households saw their chances of adding to savings decrease as they struggled to cope with higher prices.

Jatin Patel, director of current accounts for Lloyds TSB, stated: "There has been a prevailing sense of negativity for several months, and last month was no different with an overwhelming majority feeling negative about the country’s financial situation."

He believes this pessimistic outlook is affecting people's behaviour and many will be using their savings to pay for items.

People looking for a boost to their income should know banks paid out more £215 million in PPI refunds in the first six months of 2011, according to figures from the Financial Services Authority.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: Poverty 'will become widespread'

Fri, 14 Oct 2011 16:47:21 GMT

PPI claims may become more prevalent in the future.

Tim Nichols, spokesperson for the Child Poverty Action Group, said middle-income families are beginning to be affected by the financial crisis.

These households were falling into poverty as incomes fell due to unemployment and the government's austerity measures, which meant families were no longer receiving any tax credits, he stated.

Mr Nichols explained that it was foolish to think that the era of boom and bust was over and now people are facing the consequences.

His comments came after an Institute for Fiscal Studies report revealed that median real-term income is expected to fall by seven per cent by 2012-13. This would be the country's biggest three-year decrease in 35 years.

The reduction would lead to increasing amounts of poverty in the UK, with 800,000 extra adults predicted to be living in absolute poverty when the government cutbacks come into effect.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refunds: Fuel industry 'causing concern'

Fri, 14 Oct 2011 15:39:33 GMT

Bank refunds may be needed to help people struggling with their finances as the cost and complication of utility bills is becoming prohibitive.

The Citizens Advice Bureau's chief executive Gillian Guy said the amount of consumers seeking advice from the charity about fuel costs had doubled recently.

She said the plethora of different option plans was causing people to become confused about how much they were meant to be paying for their gas and electricity.

Ofgem, the industry regulator, needed to make tariff choices easier, she stated.

"The biggest issue for consumers is the size of the bills landing on the doormat: the average dual fuel bill is now £1,345 and people have real concerns about whether they're being taken for a ride," Ms Guy added.

Alistair Buchanan, Ofgem's chief executive, recently said people must have complete confidence in the competitiveness of the industry and reforms were needed to ensure this.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: People 'can not afford rent'

Fri, 14 Oct 2011 10:17:31 GMT

PPI claims could be needed as the tough economic climate means housing costs are reducing the amount of money people can spend on other essentials.

Individuals are now aware that getting on the property ladder is very difficult but news that families are now finding rent unaffordable is even more worrying, said Campbell Robb, chief executive of Shelter.

"With no cheaper alternative, ordinary people are forced to cut their spending on essentials like food and heating," he added.

Mr Robb was speaking after his charity revealed that 55 per cent of employed families can not afford rent payments.

Between 1997 and 2007 rents have increased at 1.5 times the rate of the average income and now 38 per cent of tenants with children are reducing the amount they spend on food to pay for their housing, the study found.

Shelter wants the government to take "urgent action" to steady the market.

Credit Action recently stated that in the UK a house is repossessed every 14.6 minutes.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Banks 'need to be more transparent'

Fri, 14 Oct 2011 07:45:19 GMT

Savers have little idea what happens to their money once they have deposited it, according to a new study.

New research from Triodos Bank revealed that just three per cent of savers same phrase as source said banks are forthcoming with information on how their money is invested, while 85 per cent expressed the desire to know more about the financial activities of their savings provider.

More than half (54 per cent) stated they could possible change provider if their bank was not being totally ethical.

Savers are right to want to know what happens to their deposits and the industry must recognise that, said Charles Middleton, managing director at Triodos Bank.

"We therefore urge the major banks to make their business models transparent to customers, with clear reporting on all levels of business," he added.

Triodos classes itself as a sustainable bank that aims to provide social, cultural and environmental change. Its website highlights to savers the investment schemes it is associated with.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card charges 'need more transparency'

Thu, 13 Oct 2011 16:18:24 GMT

Banks and finance providers have been criticised for not being clear enough in their wording of credit agreements.

David Fox of the Word Centre said typical APR figures are given too much significance by consumers and providers are not being transparent about other financial information that can lead to mounting repayments.

"I think if people realised just how much they could end up paying in interest they would demand the sort of information I'm calling for," he added.

The latest figures from Credit Action revealed that £175 million is paid in personal interest by UK consumers each day.

Also, RBS and Lloyds have been criticised about their policy of ATM fees, according to the charity.

The banks have been called before the Treasury select committee to explain why their basic bank account customers are subject to charges at other bank's withdrawal points.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Claims: High unemployment 'will continue'

Thu, 13 Oct 2011 13:40:13 GMT

PPI claims could become important to people as financial difficulties continue to bite.

The Trades Union Congress (TUC) has said the latest unemployment figures show that the UK is now in a "state-sponsored" crisis.

Many areas of the country now have a situation where the number of jobseeker claimants far outweighs the number of jobs available, it stated.

Haringey is the worst affected by the crisis, as the borough now has 10,602 people unemployed, yet only 412 vacancies.

The TUC's general secretary Brendan Barber called the figures terrible and said the government's austerity measures must take the blame.

He stated the economic crisis is not just impacting on those out of work, as even people with jobs are being hit by wage rises that have shrunk to 1.8 per cent.

Katja Hall, chief policy director at the Confederation of British Industry, believes the unemployment statistics make "grim reading".

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: UK 'at risk of recession'

Thu, 13 Oct 2011 13:37:57 GMT

PPI refunds could come to people's aid as fiscal difficulties are expected to remain for the foreseeable future.

Legal & General Investment economist James Carrick has said that the economy is at risk of dropping into another recession.

Mr Carrick stated that people and businesses were experiencing the most emphatic austerity measures since the second world war and credit was hard to attain, but the situation may well get worse in the future as it was likely the UK's credit rating will soon be affected.

He argued these financial constraints meant it was unrealistic to expect the economy to grow.

"Unfortunately recent data have confirmed our fears with private sector activity stalling and unemployment rising," Mr Carrick added.

The economist was referring to figures from the Office for National Statistics which confirmed that unemployment in the UK was now at 8.1 per cent, with 2.57 million people officially unemployed.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Unemployment is leading to debts

Thu, 13 Oct 2011 10:00:56 GMT

PPI claims could be used to help prevent the escalation of money difficulties that more people are experiencing due to current levels of unemployment.

Chief executive of the Money Advice Trust (MAT) Joanna Elson said that in the three months prior to August, 114,000 people became newly unemployed and they were finding the prospects of paying bills frightening.

Increasing levels of unemployment will undoubtedly bring greater financial hardship to homes across the UK, she added.

According to the MAT, the problem goes further with nearly one million people aged between 16 and 24 now out of work and 185,000 people who are without a job finding it difficult to stay out of debt problems.

The Organisation for Economic Co-operation and Development recently stated that a change to employer tax regulations could help stimulate more employment opportunities.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: Christmas 'is worrying'

Thu, 13 Oct 2011 09:54:25 GMT

PPI claims could help many people save this Christmas.

An increasing amount of people in the UK are worried that they will not be able to afford to enjoy the festive period this year, according to new research from MoneySupermarket.com.

The study found that a third of British consumers were expecting to make cutbacks on saving as increases in the costs of living and stagnating incomes took their toll.

Kevin Mountford, the site's head of banking, said Christmas this year will be tough for most families but there are options available that mean it does not need to be a cause of worry.

"Consumers will … be amazed at how much cash they can free up by simply ensuring they are using the most efficient financial products and not shelling out unnecessarily on interest payments," he added.

Additional research from the site revealed people's shopping habits were already becoming thriftier and half will actively search for a bargain.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI refunds: Incomes 'to drop significantly'

Wed, 12 Oct 2011 16:53:04 GMT

PPI refunds could become important as average income levels are expected to fall in the UK.

Research from the Institute for Fiscal Studies found median income will decrease by seven per cent by 2012-13. This reduction will be the biggest three-year drop in 35 years.

The study focussed on accessing poverty rates in the UK based on economic forecasts and government proposals.

Absolute poverty, as defined by the Child Poverty Act 2010, is expected to affect 600,000 more children in addition to 800,000 adults of employment age.

"Even if there were an immense increase in the resources made available, it is hard to see how child poverty could fall by enough to hit this supposedly legally binding target," said James Brown, one of the study's authors.

Once the government introduces Universal Credit, these figures should fall slightly, but by 2020-21 23 per cent of children will be in absolute poverty, the research predicts – much higher than the objectives set out in the act.

This comes after the government was urged to return to previous child benefit policies and tax credits by Alison Garnham from the Child Poverty Action Group

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: QE 'could increase inflation'

Tue, 11 Oct 2011 16:02:24 GMT

PPI claims could be useful in what is expected to be a tough financial future.

Azad Zangana, European economist at Schroders, stated the Bank of England's decision to expand the Asset Purchase Scheme from £200 billion to £275 billion is an attempt to avoid a double-dip recession.

Mr Zangana is sceptical about the benefits of quantitative easing (QE). It will boost confidence and asset prices in the markets but will do little to create credit opportunities and therefore will not significantly improve the financial system, he said.

The economist believes that QE may affect sterling and this could lead to an increased demand for UK exports as the currency depreciates.

"However, this would also raise inflation for households, who are already struggling to make ends meet," he added.

The Bank of England predicted inflation will rise to more than five per cent soon as higher utility prices come into effect.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: People 'must help themselves'

Tue, 11 Oct 2011 15:46:13 GMT

PPI claims could be used as an alternative to credit by consumers who are finding it difficult to cope in the current economic climate.

Liz Dunscombe, director of project partnership and development at Credit Action, believes people should consider whether they really need to resort to credit.

She said that Credit Action promotes cautious preparation when using credit as debt repayments can lead to anxiety problems, particularly when people are facing financial difficulties.

Consumers should create a list of income and outgoings to see if there is a deficit, Ms Dunscombe advised. Individuals can then see where they can cut out non-essential expenditure.

"By doing everything possible to restrict the damage done by the current storm, the more rapid the recovery will be when the storm abates," she added.

Credit Action is a charity that aims to educate people facing money problems and it deals with 8,910 new cases each working day.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: Child poverty 'to rise'

Tue, 11 Oct 2011 15:25:09 GMT

PPI refunds could help families as child poverty is expected to rise in the UK.

Alison Garnham, the chief executive of Child Poverty Action Group, criticised the government for not doing enough to tackle poverty issues in the UK and believes ministers are in denial of the fact that their policies could lead to the worst "poverty records in a generation".

Politicians "risk damaging childhoods" children's futures and the country's economics, she stated.

The chief executive told the government that it "cannot fight poverty or improve life chances by making the poor poorer" and urged those in charge to return to investing in child benefits and tax credits, as well as help parents return to work by providing childcare aid and creating new jobs.

Ms Garnham's comments came after a report by the Institute for Fiscal Studies revealed the government's policies could result in 3.1 million children living in absolute poverty by 2020 - which equates to an increase of 800,000 more children.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: Economic climate 'could get worse'

Tue, 11 Oct 2011 15:07:11 GMT

PPI refunds could assist consumers as the harsh financial conditions are expected to get worse.

Ray Boulger of mortgage advisor John Charcol stated that the Bank of England's Monetary Policy Committee's (MPC) recent decisions could be bad news for consumers.

The committee's choice to increase quantitative easing to £275 billion over the next four months suggests it is even more pessimistic about the UK's fiscal prospects than most economists, Mr Boulger said.

He believes the Bank of England will have access to more fiscal information than most outsiders "so this move is not encouraging in that context".

The MPC expects inflation to rise above five per cent in the next month as higher energy costs are set to come into effect, but stated it is likely to fall below the two per cent target in the medium term.

However, Azad Zangana, an economist at Schroders, said the Bank's vote on quantitative easing could lead to households struggling with a higher rate of inflation in the future.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit Card Claim: People 'have secret cards'

Tue, 11 Oct 2011 11:36:12 GMT

Nearly one in five people do not share financial information about credit cards with their partners.

New research from MoneySupermarket.com found 17 per cent of individuals with a partner deliberately concealed card bills and statements from them.

The most common reason people gave was because they were fearful of their spouse finding out how much money they had spent.

Men were more likely to keep the costs of an expensive night out on their cards secret, while women hid expensive clothes purchases on theirs.

All the secrecy may lead to people forgetting about payments, said Kevin Mountford, head of banking at the comparison site.

Hiding statements may make the situation "harder to monitor", but consumers should not "forget this is one more thing to think about paying off at the end of the month", he added.

Figures published by Credit Action for October 2011 revealed credit cards are now used for purchases totalling £1.28 billion.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Refunds could alleviate financial pressure

Mon, 10 Oct 2011 16:42:20 GMT

PPI refunds could help UK families as they struggle to avoid falling into debt.

New research from Legal & General has found that around 11.5 million households – just more than half of the total number – are now precariously close to not being able to afford bill payments.

The figures revealed that one million households have less cash to spare after paying bills than they did a year ago.

"The continuing financial turmoil has created millions of households for whom just paying bills has become a real struggle," said Mark Gregory, Legal & General executive director of savings.

He added that some people are considering using savings to cope with increasing fuel prices and the rising cost of utility bills.

Aviva has reported families consider debt repayments to be important and are spending an average £217.83 on them each month.

PPI Claims: 7 million 'in fuel poverty'

Mon, 10 Oct 2011 16:29:31 GMT

PPI claims could help people facing fuel poverty in the UK.

A report by uSwitch.com found the average household energy bill is now £1,293 a year, just £207 from the point where the majority of consumers will begin rationing their fuel usage.

Energy prices have increased by £224 this year and now 28 per cent of bill payers are struggling to meet their gas and electricity costs, the research revealed.

Ann Robinson, director of consumer policy at uSwitch.com, believes the UK is now on the verge of an affordability crisis.

She said there are "almost seven million households living in fuel poverty, a third of people saying that energy is already unaffordable in the UK and over a quarter already struggling to afford their bills".

Executive director at Which? Richard Lloyd said that the majority of people see utility bills as their biggest financial worry and the government and suppliers need to do something to help people manage this winter.

Credit card charges 'cost £200m'

Fri, 07 Oct 2011 16:43:49 GMT

Holidaymakers could be hit by unnecessary credit card charges.

Research by the Post Office found that people who travelled abroad during the summer were charged a total of £200 million by card providers, just for using their plastic to pay for goods and services.

Some cards can charge up to 2.99 per cent every time an individual uses it – either at a cash point or to pay for a transaction.

According to the findings, a third of people were unsure what card fees applied to them while they were outside the UK.

Around eight million UK residents are expected to go on holiday this autumn and Az Alibhai, Post Office head of credit cards, said: "Many people will be packing their credit card, however, it's worrying that so many don't know if they have to pay to use it abroad."

The total value of all credit card purchases by UK residents is £1.28 billion, according to Credit Action.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI Refunds: More people 'worried about finances'

Fri, 07 Oct 2011 13:39:51 GMT

PPI refunds could alleviate some of the intense financial pressure many people are currently facing.

Andrew Hagger, a spokesman for Moneynet.co.uk, acknowledged that current economic conditions mean it is very tough for people to invest in any savings plans at the moment.

He stated the increasing anxiety is caused by the two-fold problem of frozen incomes and rising expenditure. The cost of essential purchases such as petrol and food have increased, while many people have not received pay rises or any additional income - which all equates to consumers having less spare money at the end of the month.

Even people who are budgeting only to spend cash on the essentials are finding it increasingly difficult to put any money away for savings, he added.

Mr Hagger was speaking after research from unbiased.co.uk found 72 per cent of people living in the UK are now worried about their financial situation.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: MPC vote 'disaster for savers'

Fri, 07 Oct 2011 13:03:32 GMT

PPI claims could be useful as people will find it difficult to save using conventional means in the near future.

Saga's director general Dr Ros Altmann said the Monetary Policy Committee's (MPC's) recent decisions will be a "Titanic disaster" for people looking to put money away.

The MPC voted to keep the base rate of inflation at 0.5 per cent for the 31st consecutive week yesterday (October 6th) but also chose to restart quantitative easing by expanding the Asset Purchase Scheme by £75 billion.

Dr Altmann explained that quantitative easing was like an electronic version of printing money and it would lead to higher rates of inflation and will keep interest rates low, meaning it was a double setback for savers and will do little to inspire growth in the economy.

She called for the authorities to notice these dangers and remedy them before it was too late.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: Austerity measures 'to continue'

Thu, 06 Oct 2011 15:58:42 GMT

PPI claims could be needed as the current economic difficulties look set to continue.

The director-general of the Confederation of British Industry, John Cridland, agrees with most of the chancellor's current ideas about the UK's deficit reduction.

Speaking to his party conference in Manchester, George Osborne said he would not borrow to ease the troubles and Mr Cridland agrees that creating stable financial markets is the best course of action.

However, the director-general stated the government must now propose some growth measures to kick-start the economy.

He believes with banks hindered by the eurozone crisis "credit easing to get money directly into the hands of smaller businesses could be just what the economy needs" and warned Mr Osborne to act swiftly to implicate these measures.

The chancellor's proposals were criticised by TUC general secretary Brendan Barber for not doing enough to help people struggling with unemployment, rising inflation rates and government cutbacks.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: UK 'spends more on credit than it saves'

Wed, 05 Oct 2011 16:04:55 GMT

PPI claims could help fill the savings void many people struggling with repayments in the UK are facing.

Research from Standard Life highlighted that the UK is spending more on credit card payments than it is managing to save each month.

If current trends continue the savings and investment company believes savers will set aside an average of £67,200 over the next 40 years but other people will spend more than double that on credit card repayments – a total of £152,000.

"It's always a challenge to set priorities and if money isn't managed well, then debts can easily mount up," said Standard Life's John Lawson.

The survey demonstrated that 51 per cent of UK adults make monthly credit card payments, but only 44 per cent of people make payments into savings and Isas.

This comes after a poll from MoneySupermarket.com showed people are spending more than 40 per cent of their income on repayments.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI refunds: Financial situation 'will not ease'

Wed, 05 Oct 2011 16:03:14 GMT

PPI refunds could help people ride out the tough financial environment that lies ahead.

TUC general secretary Brendan Barber cannot see chancellor George Osborne's economic proposals creating the set of circumstances required to ease people's fiscal worries and criticised him for not listening to alternative ideas.

Millions of people in the UK are living with financial adversity due to government cuts, rising inflation and subsequent job losses and the chancellor's plans, outlined at the Conservative Party conference, will not do much to assist them, said Mr Barber.

The speech was just "cheap lines for right-wing activists, a re-hash of old policy announcements and help for bad bosses to mistreat and sack staff on the cheap", he added.

Mr Osborne told party members he had not underestimated the UK's current financial difficulties, but he is mindful of making the situation worse. Borrowing is the cause of the country's problems and not the solution, he added.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: City house prices 'more expensive'

Tue, 04 Oct 2011 15:59:09 GMT

PPI refunds could help offset the escalating costs of living in the city.

New research from Halifax shows the average house price in the UK's cities has increased by 65 per cent over the last decade – at a rate of £131 per month – compared to a 56 per cent rise for the country as a whole.

The survey showed the discrepancy between urban and rural house prices in the same county is now the highest it has been since the bank started recording its figures in 1983.

Urban property prices have increased at a faster rate than income has over the last ten years and the research stated the typical city home is now 5.2 times the average gross annual earnings.

People living in the countryside and commuting to the cities are not exempt from financial pressures, as UK transport secretary Philip Hammond recently told MPs that rail prices are "eye-wateringly expensive".

PPI Claims: High costs 'preventing people going green'

Mon, 03 Oct 2011 15:40:24 GMT

PPI refunds could help people who want to make environmentally-friendly changes to their energy consumption but do not think they can afford to do so.

A new survey from uSwitch.com reveals that 44 per cent of people in the UK think it is more important to save money on their energy bills than help protect the environment. Only 23 per cent prioritised the planet's resources above their financial expenditure.

The research shows average utility bills have increased by £224 over the last year and Kevin Sears, an energy efficiency expert at the site, believes consumers realise they need to be careful with the amount of energy they use.

"However, there is still a common fear that energy efficiency costs the earth and that the outlay will outstrip any savings," he added.

House of Lords members will debate the finer points of the energy bill on October 4th. The proposed legislation aims to advance the UK's low-carbon sources of energy as well as promote fair competition in the energy market.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claims: People need to be wary of debt management

Fri, 30 Sep 2011 19:40:24 GMT

PPI refunds could be an alternative to debt consolidation as increasing amounts of providers are having their licences cancelled.

People in financial difficulties and in need of help should speak to an independent organisation before signing up to debt management schemes, said David Rodger, managing director of Debt Advice Foundation.

"Registered debt charities such as ours provide free and impartial advice, so individuals can find out what their options are and decide the best course of action for their particular financial situation," Mr Rodger stated.

The Office of Fair Trading recently cancelled the licences of 62 debt management companies and some fee-charging firms have been accused of misleading customers about potential charges for the management.

Other companies had their licence revoked because they pretended to be a charity.

Consumers have already received more than £215 million in PPI refunds this year, according to the Financial Services Authority.

PPI Claims: Older workers 'no longer forced to retire'

Fri, 30 Sep 2011 19:30:24 GMT

PPI claims may be able to prevent people working after the age of 65.

A change to the employment laws means people will be able to able to work after their 65th birthday without fear of being fired.

Age UK noted the Default Retirement Age had effectively meant employers could sack people purely because of their age, but it is being abolished on October 1st.

"With an ageing population traditional rigid ideas about retirement are changing. Many people will want to work longer for personal or financial reasons and prejudice should not lock them out of the workplace," said the charity's Michelle Mitchell.

Ms Mitchell thinks UK employers are not hiring enough older staff and she is particularly worried about the number of people who have been out of work for more than two years.

Katja Hall, the Confederation of British Industry's chief policy director, said the regulatory changes are "simply counter-productive".

PPI Claim: Jobs 'continue to go'

Fri, 30 Sep 2011 19:00:15 GMT

The uncertain economic future and tough current circumstances are leading to a large amount of redundancies. People may be struggling for a source of income and PPI refunds could come in handy.

Monthly figures from Credit Action revealed 1,775 people are being made redundant each day in the UK. The study also showed 849,000 have now been out of work for over a year so this could mean those newly redundant will be out of work for some time.

BAE Systems has been affected by economic pressures and recently made some large scale redundancies - cutting nearly 3,000 in total, with the majority concentrated in Yorkshire and Lancashire.

"We understand that this is a time of uncertainty for our employees and we are committed to working with them and their representatives to explore ways of mitigating the potential job losses," said Ian King, chief executive of BAE Systems.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt

PPI Claims: People are 'finding more innovative ways to save'

Fri, 30 Sep 2011 18:58:58 GMT

PPI refunds could be useful as people look for innovative ways to find a bit of extra money.

Research from Saga has shown that huge numbers of people aged 50 and over will shun expensive restaurants or even cheaper pubs in favour of DIY meals that will allow them to save some cash.

Almost two-thirds of the people surveyed said that they were choosing home-cooked snacks to save money.

"At a time when the over-50s are feeling the squeeze, it's no surprise that people are seeking cost-effective solutions without compromising on quality," said Ros Altmann, Saga's director general.

She said people are becoming more inventive to save money and the idea of a packed lunched and flask of tea is a good way of doing that.

A recent survey from Family Investments demonstrated how the rising cost of living is affecting people's budgets, finding nearly 50 per cent of families in the UK will need to save an average of £386.76 less over the next year as they spend more to meet basic costs.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claims: Finances 'more important than ever'

Fri, 30 Sep 2011 15:33:22 GMT

PPI claims may be helpful as new figures reveal the extent of the UK's ongoing debt situation.

Including mortgage debt, the average UK household now owes £55,822 according to Credit Action. Its October survey, which follows monthly trends, found the UK pays £175 million in personal interest each day and the total cost of all credit card purchases is now £1,278 million.

The survey revealed the problem is more than just an issue of debt; 1,775 people are made redundant each day and every 14.6 minutes a property is repossessed.

"That the October debt statistics show some concerning indicators will come as no great surprise," said Liz Dunscombe, director of project and partnership development at Credit Action.

She warned that in such tough economic conditions the careful management of savings and assets is more important than ever.

UK business secretary Vince Cable stated recently that Britain is a poorer country as a result of the financial crash and people were struggling between pay days.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Financial crisis 'in part due to the credit system'

Fri, 30 Sep 2011 14:25:56 GMT

PPI Claims may help people who are struggling due to the current financial crisis.

Speaking at a European conference on banking and the economy at Southampton University, Lord Turner, chairman of the Financial Services Authority (FSA), said the right level of credit is crucial for financial stability.

He stated that to avoid any further financial disasters or disruptive swings in the economy the banking system must examine its core functions such as how much credit is extended to consumers and businesses

"The fundamental question which I have asked is: how confident can we be that the quantity of credit supplied and demanded will be socially optimal? The answer is not very confident," said Lord Turner.

He believes the failing of some major banks in the UK was because of malfunctions in old-fashioned banking practices, which remain just as important as new trading activities.

The FSA's figures state the total number of complaints to banks associated with PPI increased by 23 per cent to 531,667 during the first half of 2011.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Refunds: University fees 'may require extra savings'

Fri, 30 Sep 2011 12:05:57 GMT

PPI refunds may be important to people with children who intend on going to university next year.

Standard Life has launched a calculator that enables an independent financial adviser to ascertain just how much money parents need to save for children's tuition fees.

The calculator provides people with a total cost of university and then works back from the course's start date to demonstrate to parents how much they need to save each month to make the university education of their offspring a financial reality.

Savers need to input data such as annual tuition fees and living costs, course start date, length of study and inflation rates.

If there is a shortfall, an independent financial adviser can prescribe the best course of action for the saver.

"The calculator provides … a quick and easy solution to working out their client's university savings goals, allowing them to spend more time finding the best investment and savings solution for their clients," said Julie Hutchinson, head of technical solutions at Standard Life.

Banks have already paid out more than £215 million pounds in PPI refunds this year according to the Financial Services Authority.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Claim: 'More must be done' to help lowest earners

Thu, 29 Sep 2011 17:16:01 GMT

PPI refunds may help people who are struggling on the national minimum wage.

The hourly rate will rise by 15p to £6.08 for adults on October 1st and the Low Pay Commission (LPC) believes this 2.5 per cent increase will add £230 million to public finances.

Commenting on the increase, TUC general secretary Brendan Barber said the LPC "must be bolder".

These changes will help the people most affected by rising inflation and will give them more cash to spend, but they will not be enough to protect low earners from benefit and service cuts, he added.

All four categories of the minimum wage will be increased with the lowest rate of pay, the apprentice rate, rising from £2.50 to £2.60.

In August the governor of the Bank of England said the prospects of economic growth in the near future were bleak and he expects inflation to further rise in the autumn.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claims: UK has 'lowest standard of living in Europe'

Thu, 29 Sep 2011 16:44:50 GMT

PPI Claims could help offset the 'worst standard of living' in Europe.

New research from uSwitch.com has shown that despite Brits enjoying the fourth highest average income it is officially the worst place to live.

The quality of life index measured factors such as VAT, average working hours, retirement age and educational spending. The UK finished bottom below countries such as Poland – where the average household income is £8,759 - while France was found to have the highest quality of life.

People in the UK are living to work, according to Ann Robinson, the director of consumer policy at uSwitch.com.

"When coupled with many of the issues facing households in the UK today it's not surprising that one in ten of us (12 per cent) have contemplated starting a new life abroad," she added.

The Bank of England expects inflation in the UK to rise over the next few months, possibly to five per cent.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: People are 'struggling to meet payments'

Thu, 29 Sep 2011 16:01:15 GMT

PPI refunds could be significant as a new study has found more people in the UK are not able to pay their rent.

The research from the National Debtline charity revealed an 84 per cent increase in the number of calls it received from people finding themselves in rent arrears since the start of the financial crisis in 2007.

Joanna Elson, chief executive of the Money Advice Trust, which runs the helpline, said: "It is clear high rent costs are becoming more and more difficult for people to meet."

Ms Elson believes the economic situation is worsening as a few years ago many renters would be saving for their first home, but now they are finding it difficult to make rent payments.

According to the expert, the problem is more widespread because people are cutting back everywhere to ensure money for payments is found.

The Financial Services Authority revealed that PPI providers have paid out a total of £215 million this year in compensation to people who were mis-sold PPI.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refunds: People 'fear their bills'

Thu, 29 Sep 2011 15:10:27 GMT

PPI refunds may well help the increasing amount of the UK population living in fear of their bills.

New research by MoneySupermarket.com has revealed a quarter of UK adults get stressed before they open their bills and 20 per cent delay bill-opening because they are too afraid.

The study demonstrated that people are in a difficult financial situation; 31 per cent said they panicked because their outgoings were higher than their income each month.

"Consumers are battling with bill increases coupled with a fall in disposable income; it is understandable that a bill phobia has developed amongst almost 13 million UK adults," said Clare Francis, personal finance expert at the site.

She added that with the increased cost of energy bills it is hardly surprising people are scared of their bills.

Further research from MoneySupermarket.com found 71 per cent of bill payers do not have the required disposable income to cope with soaring utility prices.

Bank Claims: New tax 'unfair'

Thu, 29 Sep 2011 11:35:23 GMT

A new tax has been proposed by the European Commission, aimed at ensuring the banking sector contributes to stimulating economic growth and repays towards the cost of the financial crisis.

However, the Investment Management Association (IMA), whose members are responsible for over £3.9 trillion of assets, is concerned that the current proposals will disrupt the market.

Commenting on the announcement, Julie Patterson, director at the IMA, said: "We agree with the Commission's statements that if such a tax is introduced it is important to avoid distortions and to create incentives for the financial sector to make long-term investments."

But Ms Patterson is worried the legislation will create a distortion in the market unless the European Commission consults with the financial sector.

Many people are struggling with the high cost of living in the wake of the banking collapse, leading UK business secretary Vince Cable to recently call for banking reform.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

FSA figures show PPI complaints continue to rise

Thu, 29 Sep 2011 09:20:31 GMT

PPI claims have led to an increase in complaints made to the Financial Services Authority (FSA).

The organisation's figures show the total number of complaints about PPI rose by 23 per cent to 531,667 during the first half of 2011.

Commenting on the figures, Adam Scorer, director of external affairs at Consumer Focus, said: "This issue continues to dog the financial sector and is a big test of its commitment to treating consumers fairly."

All banks and providers involved must now deal with outstanding complaints and ensure all cases are treated efficiently and fairly, Mr Scorer added.

He advised consumers who have a grievance with the way their bank has handled their PPI claim to continue to complain until they are content with the resolution.

PPI providers have already paid out a total of £215 million in compensation for mis-selling PPI this year, according to earlier FSA research.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refunds: Consumers 'want money to stretch further'

Wed, 28 Sep 2011 17:10:26 GMT

PPI refunds may help consumers who have admitted they are struggling to cope in the current economic climate.

Yorkshire Building Society conducted research which found 96 per cent of people are seeking ways to improve their financial situation.

The study indicated 49 per cent of consumers acknowledged that they need to be more sensible in their purchases, while 39 per cent believe their salary does not stretch as far as it used to.

Discount vouchers, supermarket offers and more home cooking were the most common money-saving exploits in the building society's survey.

"Whilst it is impossible to predict what happens in the future, investors need to be aware of the spending power of their money," said Yorkshire employee Simon Broadley.

The Financial Services Authority last month revealed that banks and PPI providers have already paid out a total of £215 million in compensation for mis-selling PPI this year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI Refund: Interests rates 'to remain low'

Wed, 28 Sep 2011 12:58:12 GMT

PPI refunds could be useful for people looking to get a bit of extra financial help in this tough economic climate.

David Smith, economics editor at the Sunday Times, has voiced his concern about the UK's fiscal future. Speaking at the British Council of Shopping Centres Conference and Exhibition 2011, he stated interest rates are going to stay low for the foreseeable future.

"I think it will be some time before we can say that things are back to normal. Growth has been a bit disappointing at the moment," he added.

Mr Smith predicted that it will be the middle of 2013, when current governor of the Bank of England Mervyn King's term expires, before interest rates begin to rise again.

The Bank cut the base rate to an historically low 0.5 per cent in March 2009 and recently all voting members chose unanimously to keep the rate the same.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Parents 'will try not to cut child savings'

Wed, 28 Sep 2011 12:25:32 GMT

PPI claims could help parents who are trying to save up for their family's future.

People across the UK are struggling to invest in their children's savings accounts due to the rising cost of living and low interest rates.

Family Investments found that half of all UK families will save an average of £386.76 less over the next 12 months. The most common reason for the decrease was high energy prices as 77 per cent of the people surveyed struggled to cope with their utility bills.

"Undoubtedly it can be difficult to save when times are tight," said a spokesman for the organisation.

The next academic year will see a rise in the price of tuition fees so people are now more reticent to cut their investment in their offspring and will look to make budget cuts in other ways before they do so, he added.

Recently the Bank of England chose to keep the base rate of interest at 0.5 per cent.

Bank Claim: Parents have 'no money left for children's' savings'

Wed, 28 Sep 2011 10:36:37 GMT

People have no money left to save up for their children's future, new research has found.

A survey of UK parents concluded that the increasing cost of living associated with the financial crisis has led to 36 per cent of parents not being able to afford to put any money away for their children.

One-third of the people surveyed said the situation had worsened over the last 12 months and they are now saving less than a year ago.

The average amount saved for their children by UK parents is less than £10 a month.

"It's a tricky time for parents as they try to do their best for their child's future, while providing for them at a time when living costs are continually rising," said James Hillon, head of savings at The Co-operative Bank, which commissioned the research.

The findings follow Finance & Leasing Association figures which revealed people in the UK are concentrating their financial efforts on home improvements and debt payments.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank Claim: Financial services have 'direct impact on public'

Wed, 28 Sep 2011 09:08:05 GMT

Members of the banking industry must be seen to live up to the "highest standards of integrity".

This the opinion of alderman Alan Yarrow, chairman of the Chartered Institute for Securities and Investment (CISI) and sheriff of the City of London.

His views were published in CISI's latest publication on the day the institute debated whether or not the banking industry is an asset or a liability to the UK.

Mr Yarrow believes standards within the industry are high but acknowledges that they are not perfect and he recognised the banking sector is an industry where actions have a "direct and catastrophic impact upon our customers".

He said there is now an intense media and consumer focus on the financial services that ensures every misdemeanor is played out in the public eye.

Mr Yarrow was appointed chairman of CISI in September 2009 and is sheriff for the 2011-12 period. The role of sheriff dates back to the seventh century and is viewed as a springboard for Lord Mayor candidates.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Claim: Consumer credit falls

Tue, 27 Sep 2011 14:25:18 GMT

The amount of credit being borrowed by consumers has lowered after the financial crisis, according to new figures published by the Finance & Leasing Association (FLA).

Consumer credit lending fell by one per cent in July to £4,157 million for the month. The two biggest contributors were credit cards and personal loans, and car finance.

The government should be wary of this precarious situation and possibly shrinking the market further when drawing up any new regulatory measures, said Fiona Hoyle, head of consumer finance at the FLA.

Currently, the government is examining the regulation of the entire financial sector. The FLA warned that attributing risk entirely to the lender will prevent many small businesses from providing credit, leading to "serious consequences for the size and diversity of lenders".

"Consumers are cautious about spending on the high street," Ms Hoyle stated. They look to focus their financial outlay on their homes, cars and debts.

The FLA was established in 1992 and represents banks, building societies and credit-lending retailers.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Payment protection market 'needs reform'

Mon, 26 Sep 2011 14:49:18 GMT

Payment protection insurance (PPI) providers will have to be much clearer about the information they give to customers in the future.

On October 1st the results of the Competition Commission's inquiry into the PPI market come into effect.

Its guidelines state firms will need to clearly declare that PPI is optional and that other providers are available. Also, the provider will grant the client an annual review detailing what PPI costs and reminding the customer of their right to cancel the cover.

Ben Heffer, insight analyst for life and protection at Defaqto, welcomed these changes and said they may begin to address the well-documented problems within the market.

"A line needs to be drawn under PPI to restore consumer confidence in protection products as a whole," he added.

Figures from the Financial Services Authority show banks and providers paid out a total of £215 million between January and June 2011 in compensation for mis-selling PPI.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit Card Claim: Card users 'subjected to extra fees'

Mon, 26 Sep 2011 12:13:09 GMT

Shoppers who elect to pay for goods and services with credit and debit cards are being charged extra fees in some stores.

Candidmoney.com has advised customers to be aware of this practice. The consumer advice site said some "greedy businesses" issue card surcharges but customers do not have to pay them.

People looking to save money should shop elsewhere as not every business utilises these card fees, it stated.

If changing shops is not feasible consumers could ask to change their payment card as different cards have different charges, added a spokesperson for the site. Electron and some pre-paid cards might not have any surcharges associated with them.

The comments were issued after the British Bankers Association conducted a study which found consumers are increasingly interested in possible methods to save money.

Repayments on unsecured lending surpassed the amount allocated to new borrowing by £100 million in August, according to the research.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank Claim: Banks 'over pricing risk'

Fri, 23 Sep 2011 11:15:50 GMT

Banks and financial investors have "swung too far" to become seriously "risk adverse".

This is according to Sir Richard Lambert, former director general of the Confederation of British Industry. He stated that banks' under pricing of risk contributed to the economic downfall and now the over pricing of risk is stunting any economic growth.

Sir Richard believes all indicators say inflation will peak and then rapidly fall at the start of the next year because once the high energy prices and VAT increase are incorporated into the fiscal systems the level of inflation should remain settled.

"I don't think another burst of quantitative easing, a money injection, would pose an inflationary threat," he said.

The Bank of England recently voted unanimously to keep the base rate of interest at 0.5 per cent. At the meeting most members thought that it was increasingly probable that further quantitative easing to relieve economic conditions would be warranted at some point.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit Card Claim: Cards 'have ambiguous interest rates'

Thu, 22 Sep 2011 11:15:43 GMT

Ambiguous credit card fees could mean UK consumers are paying more interest on their purchases than they realise.

According to research from Moneysupermarket.com, all of the UK's major credit card providers are treating online gambling deposits as a cash advance. These transactions traditionally include ATM withdrawals and are charged at a higher rate of interest than other transactions.

More people are being exposed to these high interest rates due to the increased popularity of online gambling, said Kevin Mountford, head of banking at the price comparison website.

"It's perhaps not widely known that any kind or money transfer or travel money purchase made on a credit card is charged in the same way as a cash advance," he added.

Interest rates on cash advances in the UK are as high as 27.95 per cent.

This follows research from the site that found the average person in the UK pays off £322 of non-mortgaged debt each month.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank Claim: Banking reform is a must, says Vince Cable

Wed, 21 Sep 2011 10:06:39 GMT

Banks and financial institutions need to show more stability because the country is in an "economic equivalent of war".

This is according to secretary of state for business, skills and innovation Vince Cable, who was making a speech at the Liberal Democrats' autumn conference in Birmingham. He said that up until now banks have been offered a one-way bet; if they gamble and win the bonus pot fills up, but if they lose the taxpayer is left to pay the price.

"Massive potential instability is caused by UK-based global banks whose combined assets are over 400 per cent of GDP, by far the largest of any major country," said Mr Cable.

Referring to the recent arrest of Kweku Adoboli, the rogue UBS trader whose actions cost the Swiss banking organisation £1.3 billion, the MP said any doubts over radical banking reform should now be dispelled.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank Claim: Banks 'preventing' first-time buyers from getting on property ladder

Tue, 20 Sep 2011 17:10:44 GMT

Banks and mortgage lenders are causing a major obstacle for first-time buyers.

This is the opinion of Helen Adams, managing director of FirstRungNow.com, who sympathised with people trying to save up enough money to buy their first home.

She stated the current financial climate means it is very difficult for people seeking a mortgage to gather together the huge amount of financial resources now required for a deposit.

It is a "serious problem" that prevents many people from getting on the property ladder and the situation is unlikely to change in the near future, said Ms Adams, who believes people will be reliant on donations from friends and family to reach the total required for a deposit by current mortgage schemes.

She was speaking after a first direct report confirmed that the amount needed for a housing deposit has increased tenfold over the last 20 years as house prices soared to 6.3 times the average household income.

The report stated that during this time the average income has only doubled.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan Claim: Loan repayments 'consuming' income

Mon, 19 Sep 2011 16:34:01 GMT

Over 27 per cent of Britons now spend more than 40 per cent of their monthly income on loan repayments, a new survey has revealed.

The poll from MoneySupermarket.co.uk found that the average person in the UK is now spending £322 each month repaying non-mortgaged debt. The research also found that eight per cent of people are spending over 80 per cent of their wages repaying debt.

Tim Moss, head of loans and debt at MoneySupermarket.co.uk, said the cost of living is increasing and people are noticing it more than ever, but it is vital to keep up with repayments or extra charges could be incurred.

"Consumers are feeling the squeeze on their wallets more than ever. It's therefore worrying to see such a high number of people needing to use so much of their income just to service existing debt," he added.

Rising energy costs and import prices have led to a rise in the cost of living and the Bank of England expects inflation to mount further over the next few months.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Consumers tighten budgets amid financial worries

Fri, 16 Sep 2011 15:11:29 GMT

Debt worries are causing an increasing number of consumers to reduce their non-essential expenditure, a new survey shows.

According to research from Santander Credit Cards, spending on partners and spouses has dropped by 20 per cent from £1,103 to £879 per year.

Overall, consumers are cutting back their spending to the tune of £8 billion a year due to concerns about the rising cost of living and other financial worries.

The survey also found that one in five respondents (22 per cent) is looking to cheaper ways to eat out and celebrate birthdays and other red letter events.

Callum Gibson, managing director at Santander Cards, said: "Inflation and other economic concerns are having a real effect on people's expenditure. In this climate, people need to spend smarter by making sure they've got the best value for their money."

Charity Citizens Advice recently urged the Office for Fair Trading to adopt a tougher stance on debt management firms that flout industry regulations by charging vulnerable consumers exorbitant fees.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Banks 'could soon start charging customers'

Fri, 16 Sep 2011 15:09:38 GMT

The end of free banking services for consumers could occur in the foreseeable future, an expert has warned.

According to Keith Churchouse, director of Churchouse Financial Planning, new banking reform proposals from the

Independent Commission on Banking (ICB) such as ringfencing could result in some banks passing on the charges they incur onto their customers.

He explained that the only way retail banks will be able to cope with the cost of the proposed changes in regulation - which is estimated to be in the region of £1 billion - is to start charging customers for the services they offer.

"The charges will be phased in [and] people will need to be very careful as to how they choose their bank provider," Mr Churchouse said.

"We will see a lot more swapping of bank accounts as time goes along as people move to try and keep costs down."

Among the ICB's proposals are to separate a bank's investment operations from their retail divisions and to make it easier to customers to switch accounts.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Tougher action needed for debt management firms

Fri, 16 Sep 2011 15:08:36 GMT

Tougher action needs to be taken on debt management companies that charge unfair fees, consumer advocacy group Citizens Advice has said.

The charity pointed out that a large number of fee-charging debt management firms are exploiting vulnerable consumers and called on the regulator to impose stricter sanctions on companies that flout industry rules.

Citizens Advice welcomed new, tougher guidelines from the Office for Fair Trading (OFT), but urged the watchdog to ensure that it levies stringent sanctions on offending companies.

Gillian Guy, chief executive of Ctizens Advice, said: "In the past, debt management companies have routinely flouted the OFT's guidelines. The regulator must not be afraid to impose tough sanctions where the guidelines are ignored and to revoke the credit licenses of repeat offenders.

Ed Davey, minister for employment relations, consumer and postal affairs, was called to increase consumers' confidence in the OFT as the government reviews the future of consumer credit regulation.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank loans: Strugglign mortgage payers 'have options'

Thu, 15 Sep 2011 17:50:25 GMT

Homeowners may be struggling to pay their mortgages in the face of increased financial pressure and rising inflation, but there are certain options open to them.

According to What Mortgage, interest rates remaining at an historic low have helped to limit the damage of people struggling in the face of mounting debt.

But while repossessions may have been kept somewhat in check, rising interest rates could quickly put paid to that and leave people under increased strain.

Ben Wilkie, editor of the company, said: "If people are in trouble then there are options available to them. One of those options is to go interest-only, and an interest-only mortgage is costing you virtually nothing with a tracker or variable rate deal.

"I think that is one of the reasons why we haven't seen that many repossessions over the past couple of years despite the worsening economic climate."

According to the Financial Services Authority, there were 35,700 cases of new arrears.

PPI refunds: UK households 'need an extra £40 billion to maintain living standards'

Wed, 14 Sep 2011 14:58:04 GMT

PPI refunds could certainly come in handy to households in the UK, as new research has shown an additional £40 million is needed if our current standard of living is to be maintained.

MGM Advantage, which specialises in retirement income products, made this revelation in response to the latest consumer price index (CPI) inflation rate reaching 4.5 per cent.

It found that the average household expenditure is £35,533 per annum. This is an increase of £1,530 per year to maintain the standard of living enjoyed a year ago.

Aston Goodey, sales and marketing director of the company, said: "The latest CPI rate of 4.5 per cent will continue to hurt people financially in retirement. Given the fact that people are living longer with a shrinking retirement income pot, this means further retirement income uncertainty."

He added that more people are realising they need to protect themselves against rising inflation and falling annuity rates.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Two-fifths of Brits think banks do not act on their behalf, research finds

Wed, 14 Sep 2011 14:57:38 GMT

Consumers who have tried to make a bank claim may well be among the 42 per cent of people in Britain who think that banks or bank advisers do not act on their behalf.

Research by unbiased.co.uk also found that more people are concerned about what would happen if they lost their jobs, with 32 per cent of Brits saying they would struggle to cope financially if they lost their job, compared to 24 per cent saying the same last year.

Karen Barrett, chief executive of the financial advice website, said: "The state of the UK's financial climate is really beginning to hit home and our research shows that a lot of people would struggle if they were to lose their jobs.

"The continued low interest rate and increasing inflation are having a severe impact on returns on savings while the housing market remains volatile."

Findings from unbiased.co.uk also revealed that 26 per cent of people have learned property is not a completely safe investment.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: People 'don't have time to make a budget'

Tue, 13 Sep 2011 14:53:37 GMT

A number of consumers may experience bank charges because they do not have enough time to make a budget.

According to David Rodger, managing director of The Debt Advice Foundation, a provider of free and impartial debt advice, making a budget is the first thing people should do if a family is struggling financially.

He said: " “It sounds obvious, but all too often people struggle to find the time to create a budget plan, but it really is the first thing to do.

"Start by writing down what money you have coming in versus what you have going out and then think about what you have available to spend each week."

Mr Roger added that a budget can also help people to work out how they can pay for "big things", such as Christmas, birthdays and back to school items.

According to the Daily Telegraph, research by Quidco.com conducted last month found back to school kit would set parents back £200 per child.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Millions of Brits wasting money by leaving electrical items on standby

Tue, 13 Sep 2011 14:52:30 GMT

Homeowners who are currently paying loan charges may want to think about where they can cut back on energy use as a way of saving money.

One idea could be for them to make sure their electrical items are not left on standby overnight, as doing so could cut their electricity costs.

According to research by uSwitch, 30 million people in the UK leave electrical items on standby, with 59 per cent leaving set top boxes on and 49 per cent leaving their TV on standby.

Findings showed that 3.5 million people think if they are not using an item it is not using electricity, even if it is plugged in and turned on.

Kevin Sears, energy efficiency expert at the price comparison website, said: "In the face of rising energy bills and our increasing love affair with gadgets, consumers can no longer afford to throw money away by wasting energy.

"Being more energy efficient is a simple and painless way to cut your bills, which many will be worried about this winter."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges 'can quickly escalate out of control'

Tue, 13 Sep 2011 14:52:04 GMT

The current financial climate means that credit card charges that seemed manageable at first can spiral out of control, an expert has said.

David Rodger, managing director of The Debt Advice Foundation, explained that many people who are having trouble financially are turning to credit to pay for everyday items such as food shopping and phone bills.

He said: "As prices go up and wages remain static and worse still, people find themselves unemployed through no fault of their own, the problem of repaying borrowings becomes increasingly difficult for families.

"Loans, credit and store cards that once seemed manageable can all too quickly escalate out of control in the current financial climate."

According to a report released by the Institute for Fiscal Studies, the UK has experienced one of the worst decades for the changes in living standards since WWII.

It found that over the most recent financial year, earnings, state benefits and tax credits all dropped in real terms in the UK.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.