Energy bills are expected to soar in the coming months as the high price of oil continues to set new records. Energyhelpline has carried out research that has revealed that gas bills are expected to rise by nearly 70%. Electricity bill costs are also expected to rise.

Energy suppliers Scottish and Southern Energy and British Gas have not denied that price increases are on the way.

The Government has launched a range of measures, which it believes will help to soften the blow of the imminent price rises. The new measures, which will focus on assisting the elderly and vulnerable to avoid the pitfalls associated with fuel poverty, include promoting the availability of Warm Front grants. The Government has also announced plans to help energy companies to identify consumers who will be unable to cope with the current fuel crisis.

A spokesperson for ,international charity, ‘Help the Aged’ has criticised the government for its lack of a cohesive strategy in tackling ,what some analysts consider to be, a fuel poverty catastrophe.

Comments(0)

A large number of UK consumers are finding that loans with average interest rates are becoming scarcer. According to current research almost half of all loan applicants in the UK will be rejected once lenders take into account factors such as employment history and credit rating. It is expected that even more borrowers will be turned away as financial companies incorporate policies that are designed to avoid consumers that are considered to be high risk.

In the current economic climate, any potential borrower that is classified as high risk faces the prospect of paying exorbitant interest rates on a personal loan.

Some lenders have decided that the safest course of action is to completely withdraw any type of personal loan service until there is a significant improvement in the economy. The credit crunch has ensured that these companies are adopting a safety first attitude in their lending criteria.

Consumers who feel they will not be able to cope without obtaining a loan are advised to thoroughly examine the interest rates and the terms and conditions that are linked to these financial products. The use of comparison websites can provide borrowers with a quick and easy way to assess the loans market.

Comments(0)

Financial institutions which specialise in credit based products are continuing to struggle under the weight of the credit crunch. Credit card holders are beginning to feel the impact from a series of belt tightening measures that are aimed at reducing risk. This has raised concerns amongst industry experts who believe that this will now help to fuel the current economic downturn. Additionally, credit card companies are now beginning to withdraw the popular O% transfer deal.

It appears that consumers are now finding that it is extremely difficult to obtain credit to support their everyday activities. However, this lack of available credit will have a detrimental impact on various areas of the economy. For instance, this highly volatile situation could lead to a steep rise in unemployment as industries find that their customer base is greatly reduced.

Retail analysts believe that if there is a substantial decline in consumer spending then talk of a UK recession will be hard to disprove.

A wide range of charities and agencies have reported record increases in the level of personal debt that is being accumulated by the UK’s population.

Comments(0)

The British Bankers Association has released figures that indicate more gloom in the housing sector. The association has revealed that ,on an annual basis, home repossessions have increased by 17%. These statistics were obtained from the records of court applications submitted by mortgage providers ,and it appears that the trend will continue.

UK house holders are finding it increasingly difficult to keep up with mortgage payments. Additional figures show that a substantial amount of those with mortgages were over 30 days in payment arrears and 10% of borrowers were over 90 days behind.

Housing analysts believe that increasing inflation and interest rates will force thousands of people into serious financial problems. It has not gone unnoticed that the current situation is similar to the economic conditions that preceded the current US housing market crisis. The effects of the credit crunch means that the UK housing sector is effectively coming to a standstill whilst the global economic crisis claims even more financial victims.

Comments(1)

Recent research has shown that financial institutions have handed out up to £20 billion worth of loans without ensuring that consumers have sufficient income to keep up with repayments. It is estimated that over 60% of unsecured loans were issued without the correct checks being in place.

In effect, this means that lenders records do not accurately reflect the financial details of their borrowers. Although many lenders write-off a significant number of personal loans, this type of relaxed approach to issuing financial products can only lead to a rise in the number of people defaulting on their payments and being pursued by credit agencies as the economic downturn shows no sign of abating.

Industry analysts have criticized this type of practice within the financial sector. The credit crunch is currently affecting large swathes of the UK’s population and some financial agencies are failing to impose the correct measures to control the flow of unsecured loans. This does nothing to assist consumers as borrowers will only experience the short-term benefits of obtaining a loan that ,ultimately,they cannot afford.

Comments(0)

New York based finance corporation, American Express, has unveiled their latest credit card offering. The ‘Blue Sky Card’ is specifically designed for use by holidaymakers who will receive points when the card is used for travel reasons. The card also comes equipped with an automatic cashback scheme where those who manage to acquire 4000 points will be rewarded with a saving of £50 on travel goods.

Travellers who use the card are also insured against unexpected occurrences such as the loss of luggage and late flight departures. A company spokesman said that the card should prove to be extremely popular amongst those who frequently travel.

With family households having to cut back on expenses due to the current economic climate and the strong possibility of airlines having to increase their fares, there is no guarantee that the card will gain any great popularity in the UK.

The card can be used on holidays, cruises and a variety of other holiday package deals.

Comments(0)

Current research has shown that airline bankruptcies are on the rise due to the troubled global economy. The credit crunch has led to an increase in oil prices which now means that the days of cheap holiday flights are now over. Industry experts have warned holidaymakers to be prepared for a steep increase in fare prices.

Companies such as Ryanair and EasyJet have built their business around being able to undercut the fares of other major airline corporations but analysts are now speculating as to whether these budget carriers can survive if the credit crisis continues.

In response to the instability in the oil industry marketplace, EasyJet have now stated that they will increase their fares but insist they will still remain competitive. A company spokesman said that no business can continue if it is unable to cover the cost of its operations.

However, British Airways appears to be well prepared to see out the current economic situation and has no qualms about passing on costs to passengers.

Comments(0)

The UK population is continuing to feel the burden of the credit crunch as more credit card owners find themselves unable to control their financial circumstances. With finance companies tightening the criteria for card applications, consumers are beginning to find they are restricted in their choice of credit deals. The days of interest free card deals now appear to be ending as interest rates continue to soar.

Young people who have recently left education are one of the main groups that seem to be most affected by the current economic crisis. Unable to secure financially rewarding jobs and reeling from the additional burden of student loans youngsters find it far easier to use credit cards in their everyday life than to seek alternative financial arrangements. This over reliance on cards has led debt advice organizations to call for more support for the increasing number of young consumers who are unable to cope with the current economic situation.

Comments(1)

Car Insurers are charging ‘admin’ fees that amount to as much as £25 for completing simple paperwork. Some of the basic tasks that warrant a charge include a change of address for a car owner whilst they are still covered by an insurance policy. It is estimated that these hidden charges are affecting up to 14 million car owners each year.

It has been claimed that the main culprits in this administration charge practice are Budget Insurance and More Than.

A representative of AA claimed that his company does not impose fees for a change of address during the term of an insurance policy but customers can expect a charge of £25 for major changes such as the inclusion of an extra driver.

Budget Insurance insisted that potential charges are brought to its customers’ attention and this type of administrative charge is no different to other companies in the insurance field.

Industry experts have warned motorists to carry out a careful inspection of the terms and conditions associated with these policies.

Some motorists have expressed dismay at the imposition of what they consider to be a hefty charge for the writing of a few lines or the typing of data onto a computer screen.

Comments(0)

Finance company, ‘Pounds Till Payday’ which is based in Malta, is attempting to cash-in on the current credit crisis by offering UK residents an easy loan service via the internet. However, the Annual Percentage Rate (APR) works out at a whopping 2,255%.

The online credit business, offers to lend customers up to £1,000 over a 31 day period but anyone who takes out the loan can expect to pay an interest rate that will run into hundreds of pounds.

To qualify for the loan applicants must be over 18 years of age ,be a UK resident with a bank account and have a monthly wage of at least £335.00.

Credit watchdogs and charities are concerned with the exorbitant costs attached to this type of loan and have warned consumers to seek advice and fully exhaust every alternative before considering entering into this kind of financial commitment.

Pounds Till Payday is owned by Northway Broker Ltd which has established similar lending services in Europe and various areas of North America.

Comments(1)