news feed

Which says banks should pay PPI faster

22/2/2012

Banks should be paying the compensation that they owe people with regard to claims for payment protection insurance (PPI) much faster than they are at the moment, according to one consumer watchdog.

Which? has said that people are owed money from when they were mis-sold PPI policies which they either did not need, or were not eligible to hold, and that they should be paid their money now. The PPI scandal is thought to have affected some six million consumers.

Which? executive director, Richard Lloyd, said: " Too many people are still finding the claims process too lengthy, the banks must streamline the process to make it easier for people to claim."

He went on to say that complicating the process for making a claim for PPI means that there is an open door for claims management companies to manipulate customers and charge them a hefty fee for taking on the case.

Benefit from the use of a tax-free ISA

21/2/2012

Brits who have paid their money into an ISA account could be saving far more money than if they simply leave it sitting in a standard current account, it has been claimed.

According to MoneySupermarket, people who put the maximum value allowed into a cash ISA in 1999 will now find that they are £3,800 better off than they would have been if they had simply left the money in their current account for the same period of time.

The tax-free benefits mean that people putting money into an ISA in 1999 would have made £16,456.18 in interest over the 12-year period, with current account customers losing almost £4,000 as the result of taxes.

Kevin Mountford, head of banking at MoneySupermarket said: "All savers who pay income tax and don't use an ISA for their savings are throwing money to the tax man and could give their savings pot an additional boost."

It was discovered by the company recently that 47 per cent of people have had to cut down on what they are saving.

Brits are bargain hunting nation

21/2/2012

British people are increasingly turning towards bargains through coupons and vouchers as a method of making sure that they can save money, according to one expert.

Saving money through coupons and vouchers means that people can afford to put more money away for the future, a problem recently thanks to inflation, which MoneySupermarket has said led to 47 per cent of people reducing what they save.

Dr David Lewis, a neuropsychologist, said that the reason for people taking this route, is because it makes them feel happy and gives them a buzz if they find a bargain, "partly because it means you can make your disposable income go further".

He also said: "If you have got a really good bargain on something, you tell all your friends and neighbours, because in a sense it shows how clever you have been."

The expert added that sticking to shopping lists and taking time can be a good way to bag a bargain.

Spending power still squeezed

20/2/2012

The spending power in the UK for consumers is still being squeezed by the fact that many people do not have money left after they pay for their essentials.

According to the latest statistics released by Lloyds TSB, one in five Britons say that they have no money left to buy anything for themselves after they have paid for their essentials, such as food, tax and household bills.

In the year up to January 2011, income rose by only 2.6 per cent on average, while the cost of essentials went up by 4.9 per cent in the last year.

Patrick Foley, chief economist at Lloyds TSB, said: "The Spending Power Report shows that in January weakening income growth has outweighed the recent fall in inflation, ensuring that consumers are still being squeezed."

Last week, Andrew Hagger, spokesman for moneynet.co.uk, said that people were feeling the pinch so badly that they now feel scared into keeping money aside for a rainy day.

Brits cut down on saving

20/2/2012

The number of Brits who could be turning toward credit such as loans and credit cards could be on the increase thanks to the fact that many are having to cut down on their savings.

Latest statistics released by MoneySupermarket have shown that some 47 per cent of British consumers have had to reduce what they are saving in 2011, thanks to the squeeze on their income.

It also said that 19 per cent of all people in the UK had never even started saving in the first place.

Kevin Mountford, head of banking at MoneySupermarket, said: "It comes as no surprise that many people have reduced and even stopped saving completely at a time when cost of living is high against a backdrop of ongoing low interest rates."

However, better news could be on the horizon, with MoneySupermarket saying last week that 20 per cent more people are now intending to save thanks to rising interest rates.

Financial education is vital for children

17/2/2012

Parents should be teaching their kids about finances and loans in early life to ensure that they have a firm understanding of finances, which can stand them in good stead for the future and their own monetary dealings.

"I would say as soon as children are capable of understanding that once money is spent, it's not going to come back - then they can start with their financial education with pocket money and all the rest," said Andrew Watson, parenting expert and author.

He pushed that emphasising a relationship between working and earning could be important for parents to teach children, as it helps give money more of a value.
Mr Watson went on to say that not telling children about money is "self defeating."

The Chartered Institute for Securities and Investment (CISI) said recently that children at the age of 16 should be given mandatory bank accounts so that they can learn about the value of money as soon as possible.

Brits need to know how to maximise savings

17/2/2012

The average British person needs better knowledge of how to make the most of their savings, according to an expert.

Andrew Hagger, spokesman for moneynet.co.uk, said that most people in the UK are currently keeping the majority of their savings in a standard current account, unaware that there are much better ways to maximise what they can earn.

He said that many people see things such as ISAs as complex, and products for which they need a lot of money in the first place, which he said is just not the case.

"You can have an ISA savings account that pretty much acts as a normal deposit account. You have a limit on what you can pay in each year, but apart from that you can access your cash, it's just so the tax man doesn't take a slice of the interest."

Mr Hagger also said that fixed rate bonds can be beneficial to those who are looking to make the most of their savings.

It was recently reported by HSBC that mid-income families are finding it hardest to save because of essential spending rises.

Falling inflation will see a rise in saving

16/2/2012

The number of people who are able to save will be on the increase, as inflation rates fall again.

It was announced earlier this month that the rate of inflation had fallen for the fourth month in a row, and to a 14-month low of 3.6 per cent.

This will increase Brits' confidence in their finances, and lead more to save as a result. A poll from MoneySupermarket found that 20 per cent of people intend to start putting money into a bank account.

Ten per cent said that the falling inflation made them want to save, but they are not sure how to make the most of their money, and what accounts will give them the best sort of returns.

Kevin Mountford, head of banking, at MoneySupermarket.com, said: "The continuing fall in inflation is great news for hard pressed saver, and this should really help encourage people to start saving again."

Consumer confidence shows slight recovery

16/2/2012

Consumer confidence amongst the British consumer has shown slight signs of recovery at the start of 2012, after ending last year on a record low.

In January, it was reported by Nationwide that the main consumer confidence index rose by nine points to 47. It says that this figure is still 29 points below the long run average of 76, but is an improvement on the record low in December.

Consumers were spending more in January, with household goods being a main driver.

Earlier this week, inflation rates fell to a 14-month low of 3.6 per cent, which could aid further spending among Britons through the year.

Robert Gardner, Nationwide's chief economist, warned though: "With the UK economy contracting in the final quarter of 2012 and the unemployment rate rising to its highest level since 1995 in recent months, the improvement may prove to be little more than a temporary bounce."

Brits scared into putting money aside

16/2/2012

British consumers are being scared into putting money aside for a rainy day thanks to a number of different factors, according to one expert.

Andrew Hagger, spokesman for moneynet.co.uk, said that problems such as the continuing inflation rates, even though these have recently dropped, and the level of unemployment was causing Britons to be more cautious.

The Trades Union Congress reported earlier this week that a third of unemployed people have now been out of work for over a year.

"I think inflationary pressures have hurt them. People are also scared as well. They are concerned about their employment prospects. Unemployment is the highest it has been for years," said Mr Hagger.

He went on to add that things such as improvements to cars and homes are now put on hold more frequently than in the past, as more Brits decide to put money in the bank in case they should need it at some point.

First-time buyers see substantial savings on stamp duty

15/2/2012

First-time buyers have managed to make substantial savings over the past two years when purchasing a house through the stamp duty holiday.

Under the rule, those buying a house for less than £250,000 are exempt from paying the one per cent tax on their purchase until March 24th of this year.

In this time, Santander has reported that £319 million has been saved by 170,000 homeowners, while HSBC said earlier this week that 89 per cent of first-time buyers have been exempt from paying stamp duty over the past two years.

Once the holiday ends on March 24th, those who buya house that costs over £125,000 will be required to pay one per cent of its value in tax, joining those purchasing houses over the value of £250,000, who pay three per cent.

Phil Cliff, director of Santander Mortgages, commented: "Despite the availability of some very affordable mortgage deals, that extra £2,500 can make a huge difference to a financially stretched first time home buyer."

Retirement delay for 1-in-10 workers

15/2/2012

One out of every ten people who are eligible to retire over the next year will delay the process so that they can accrue more funds before going onto their pension scheme.

According to the latest figures released by Prudential, of those who had planned to retire, but have now changed their minds, 32 per cent claim they are doing so because they want to stay working and do not want to retire quite yet.

However, a majority of 68 per cent of those who have cancelled a planned retirement have said they have done so because they simply cannot afford to retire at the current time.

Vince Smith-Hughes, Prudential's retirement income expert, said: "People are living longer, and for many, the very real prospect of a thirty year retirement is either unpalatable or unaffordable, hence the decision by many to continue to work."

It has also been announced this week by Alliance Trust that inflation continues to hit the elderly hardest, with over-75s facing inflation rates, although falling, of 4.3 per cent compared to just 3.7 per cent for those under the age of 49.

Lack of knowledge leading to a loss in energy savings

14/2/2012

Many people across the country are losing out on energy savings by not paying attention to the benefits of being energy efficient.

According to a new survey, conducted by uSwitch, there are some 43 per cent of households across the UK which are losing out on savings by not making energy saving changes to their house, paying £530 more than they have to every year.

It was recently revealed by uSwitch that 85 per cent of the country are worried about being able to afford to pay their energy bills.

However, this survey has found that, while 26 per cent have said the increase in the cost of living has made them more likely to go energy efficient, only ten per cent have actually made the changes.

Kevin Sears, energy efficiency expert at uSwitch.com, said: "With winter starting to bite, and recent energy price cuts not going far enough, becoming more energy efficient may be the lifeline cash-strapped consumers need."

Pet owners to splash the cash

14/2/2012

Pet owners around the country are set to splash the cash for Valentine's Day this year, with millions being spent, not on partners, but on their pets.

According to the Co-operative Home Insurance, Brits who love their furry friends and do not want them to feel left out will spend some £41 million on treats for their animal companions on Valentine's Day.

The average pet owner will spend £15.82 on treats for their animals, with the top gifts being flowers, clothing and new accessories and toys, such as collars and squeaky bones.

Lee Mooney, head of pet insurance at The Co-operative Insurance, said: "The survey has clearly shown that pets are going to be extremely spoiled this Valentine's Day and in some cases have more spent on them than their owner's significant other."

Last week, Teresa Fritz of MoneyVista stated that people looking to save money this year will turn increasingly to Valentine's Day vouchers.

Spending squeezes ability to save for mid-income families

13/2/2012

The ability of Britons to increase the money that they have stored away in their bank accounts is being squeezed by the rising spend on essentials.

According to a new report from HSBC, middle income families are suffering the worst through the current financial situation in the UK, with increased cost of living, the failure to see wage increases and the rise in unemployment meaning people are withdrawing more than they are saving.

The bank also reported that the number of people in the UK not saving any money at all now stands at 29 per cent.

Bruno Genovese, head of savings at HSBC, said: "Unfortunately, the high cost of living forced many families in the squeezed middle to dip into their savings pots, leaving them with less than they started with [in 2011]."

Last week, Lloyds TSB said that people in the UK are now only able to save seven per cent of their yearly wage.

Increase in PPI claims expected

13/2/2012

2012 could bring about a large increase in the number of consumers in the UK who are looking to make claims for mis-sold payment protection insurance (PPI).

According to the Financial Services Compensation Scheme (FSCS), it expects to deal with some 16,500 new claims for PPI which was wrongly sold over the course of 2012 and into next year.
The FSCS said that this shows a continuation of the trend for increasing levels of PPI claims in the UK.

Last year, PPI claims were particularly prominent in the UK, as the banks were told last April that they had no choice but to compensate those who had been given false information or sold useless PPI policies when taking out loans and mortgages.

Mark Neale, chief executive of the FSCS, said however that people should look to make their own claim as opposed to using a claims management company.

"Claims management companies take a significant part of the possible pay-out and are no more likely to make a successful claim than consumers can on their own. People can save thousands by submitting their claims directly to the FSCS."

More than a million retirees missing out on cash

10/2/2012

More than a million people in the UK who have retired should be checking to see what money they are entitled to, as many are missing out and leaving the money they should have unclaimed.

The Department for Work and Pensions (DWP) said that there is £2.3 billion in money for pensioners which goes unclaimed every year, with up to 1.6 million people entitled to a slice of this money.

Pensions minister Steve Webb said that with the cold weather due to continue, many could also be due extra payments to help with their heating bills.

"I am very concerned that over a million pensioners could be missing out on Pension Credit cash of up to £137.35 a week. During this cold snap it's even more important that people claim so they don't miss out on Cold Weather Payments," he added.

Earlier this week, pensioners were advised to make careful choices over annuity, after it was revealed by the National Association of Pension Funds that making the wrong decision could lead to them bringing in 24 per cent less retirement income.

House prices to fall in 2012

10/2/2012

UK house prices are likely to fall in 2012, as the average Brit finds themselves in further financial worry throughout the course of the year.

One property expert said that falling job numbers, and the fact that people across the country will be experiencing pay freezes means that there will be far lower demand for properties, meaning that prices will fall.

Paul Holmes, chief executive officer of Firstrung, disagreed with the survey from Halifax earlier this week which said that 29 per cent of the public expect to see prices rise throughout the year, with only 22 per cent foreseeing a fall.

"If we look at the amount of mortgages being given out, it is at lows not seen since 2003. House prices have been static so far this year," he said, going on to say that the most important factor is that there are less than half of homes being sold now than there were in 2006, the market's peak.

Budget loving Brits turn to Valentines vouchers

9/2/2012

British consumers looking for good gifts on a budget this year on Valentine's Day are preparing to turn to vouchers in times of financial uncertainty.

Teresa Fritz, consumer finance expert at MoneyVista has said that a rapid increase in the number of companies which now offer discounts and vouchers to consumers, with around 200 dedicated websites for these now operating in the UK, more people will now turn to these.

"Discount vouchers for treats like a romantic weekend getaway, champagne brunch, or spa visit, represent some of the tempting offers for this Valentine's Day," she said.

However, she did warn people to look out to make sure that they know their consumer rights, due to the fact that many voucher schemes will require people to buy from a third party, and could affect their rights as a customer.

Despite the growth of voucher schemes and their massive popularity however, Groupon reported earlier this week that it had made a loss of £27 million last year.

Poor pension choices could mean longer at work

9/2/2012

People making poor choices when choosing a pension scheme could cost themselves a substantial amount of retirement income, which may lead to them having to work longer.

According to the National Association of Pension Funds (NAPF), making a bad decision on type of pension and the annuity might leave people looking at bringing in up to 24 per cent less money than they potentially could be in their latter years.

This could lead to those who make bad choices having to work extra years before retiring in order to make up for the shortfall.

Joanne Segars, NAPF chief executive, said: "People who don't get the best out of their pension could end up stuck at work for years longer than they planned. Getting a good deal on charges and annuities can mean the difference between enjoying retirement and spending years more at the desk."

In October, the government's opt out scheme for pensions, which means that all employees will be auto-enrolled into pension schemes unless they specifically ask not to be, will begin for companies with more than 250 employees.

Only 38 per cent accurately know their balance

8/2/2012

The majority of people in the UK are not aware of what they accurately have in their bank account at any time during the month, according to a new survey.

The study from the Halifax has discovered that only 38 per cent of the British public know to the nearest five pounds what is in their account at any given time.

Just under a quarter said that they know what they have in their bank to the nearest £20, while five per cent could only recall their balance to nearest £500.

Anthony Warrington, director of current accounts at Halifax, said that there are ways to make sure consumers have better knowledge of their bank balance.

"With mobile banking apps and internet banking, it's much easier to stay on top of spending and account activity whilst on the move."

A recent MoneySupermarket study found that there are eight million people in the UK who have fallen behind with bill payments in the last year.

More people in debt for essentials

8/2/2012

An increasing number of people are falling into a worrying kind of new debt which sees them building up a backlog of credit for essential purchases and expenditure.

According to figures from PricewaterhouseCoopers' Precious Plastic 2012 report released last week, the average UK household is now in debt to the tune of around £7,900.

However, the Money Advice Trust said that it is the level of debt accumulated on things such as food and utility bills which is causing concern.

Paul Crayston, media officer at the Money Advice Trust, said that the biggest problems leading to people falling into debt for their every day spend were unemployment, job losses and the fact that many people's wages will have been flat for the last couple of years.

"What's perhaps more likely to happen is that someone is taking out debt to cover day-to-day expenditure. If you're using a credit card or a loan to buy food, pay rent or pay utility bills, that's a pretty sure sign that you need some advice."

First-time buyers should turn to hybrids

7/2/2012

First-time buyers looking to take advantage of the last months of the government's stamp duty holiday in order to make the best use of their finances and save some money should turn to hybrid mortgages, according to an expert.

Catherine Hearnden, director at MyMortgageDirect, said that hybrid mortgages are a good way to save money while also staying financially secure in the years to come.

"I think that it will keep their costs down now, but it will stop them spiralling in a few years if rates do go up. It is an excellent option."

She said that it is likely that track and fix mortgages will become more popular in the future, thanks to the fact that banks will be looking to offer them to entice more first timers.

Those looking to save money have until March 24th to take advantage of the stamp duty holiday, at which point they will have to pay the tax on any home they buy costing over £125,000.

Parents feeling the pressure of supporting children

7/2/2012

Parents are increasingly feeling the pressure of supporting their children as they work their way through university, which could be a contributing factor to the fact that the number of people applying has dropped.

With tuition fees rising to £9,000 per year throughout the country, it was reported last week that the number of people applying was down by 8.7 per cent last year.

According to Georgina Earle, director of Women In Debt, many parents now feel the strain of supporting student children.

"Many parents will have had the intention to support their children through university and may have saved up allowing for this expenditure, however the financial pressure that parents are finding themselves under will make it difficult for them."

She went on to add that as a result, there is now a rise in the number of students who are having to take on an increased level of debt compared to what they normally would.

8 million behind on bill payments

7/2/2012

Eight million people in the UK are struggling so badly with their finances, that they are failing to keep up with their commitments, missing bill payments as a consequence.

Research released by MoneySupermarket has discovered that 17 per cent of consumers in the UK have missed a payment on at least one of their bills in the space of the last year.
The most common missed bill is for credit cards, while the next most neglected bill is for council tax.

Other popularly missed payments included mobile phones, personal loans and Sky TV subscriptions.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "Our research shows there's still a worrying amount of Brits potentially damaging their credit rating by failing to pay their bills on time."

Last week, it was reported by uSwitch that some 85 per cent of the UK public are still worrying about energy bills, despite recent drops from most of the big energy firms.

Do not rack up debit card roaming charges

7/2/2012

Romantics who are whisking their better half off for a quick city break on the continent for Valentine's Day this year have been told to make sure that they are not racking up roaming charges on their debit card through using them abroad.

Norwich & Peterborough (N&P) Building Society has said that more people are now using their debit cards overseas, thanks to a desire to save rather than spend more on credit cards, as reported recently by Santander when it said credit card spend dropped four per cent in 2011.

N&P says debit card use abroad doubled, and it offers free cash withdrawals, debit payments and conversions on its new Classic Gold Account.

Ewan Edwards, head of current accounts at N&P said: "The Gold Classic Current Account provides our customers with a number of extra benefits at no cost.It is particularly useful for those who travel abroad and want the flexibility and security of using their debit card instead of taking a large amount of local currency with them."

Young Brits not saving for the future

7/2/2012

Young consumers in Britain are increasingly risking their future by not putting money away to look after their income and lifestyle in their twilight years.

Figures released by Nationwide Bank have shown that a shocking 95 per cent of those aged under 35 are not saving anything towards their retirement funds at all.

Instead, a third are saving for the deposit so that they can get themselves onto the housing ladder, while a further 31 per cent are looking to put money aside in case they should lose their jobs.

Richard Marriott, Nationwide's head of savings said: "Encouraging young people to adopt a savings habit early on is vital. Just putting aside a small amount on a regular basis can make a huge difference."

And for those who do save, there appears to be a knowledge gap between the genders. While 65 per cent of men know what their pension is worth, according to Friends Life, only 50 per cent of women are aware of the same.

Finance savvy Brits set tax return record

6/2/2012

The British tax payer showed that they are becoming more savvy than ever before in the past financial year, as more self assessment tax returns were sent back in time than ever before, according to the latest figures.

HMRC has reported that the number of tax returns filled in on time amounted to 9.45 million, with 80.9 per cent of these completed online.

This means that some 90.4 per cent of the forms were returned to HMRC in the correct timescale in the past year, the highest figure since the inception of the governmental body.

David Gauke, exchequer secretary to the treasury, said: "HMRC have always been clear that they want returns not penalties, so it is good news that over 90 per cent of all returns were submitted on time."

Brits have shown last week that their finances are improving as well, as it was reported by Credit Action that the average debt in the UK actually fell in December, despite the stress of Christmas.

Brits have confidence that house prices will rise

6/2/2012

British consumers in general are showing that they now have greater confidence in the housing market than they have done previously, as more expect to see prices rise rather than fall in 2012, giving a boost to a flailing market.

According to the results of a new survey conducted by the Halifax, 29 per cent of those living in the UK expect to see house prices take an upturn in 2012.

In contrast, only 22 per cent say that they feel house prices will see any sort of significant fall over the same period.

Those living in rented accommodation fear the worst however, with 61 per cent saying that they expect rents to rise further over the course of this year.

It was reported last year by LSL Property Services that rental prices grew for nine consecutive months up until November.

Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies."

High street banks now facing more complaints

3/2/2012

Banks on the high street in the UK are now facing more complaints, as one consumer champion calls for banks to do more to offer better service to the British customer.

The latest Moneywise Consumer Opinion Survey found that consumer opinions put the UK's high street banks amongst the worst performing financial services in the country.

Santander, RBS, Lloyds, NatWest and Barclays were voted the worst performing, as all saw an increase in complaints between 2010 and 2011.

Johanna Gornitzki, editor of Moneywise, said: "The main high street banks need to start putting consumers at the heart of their business."

She added that it was vital that customers have faith in the banks so that they can have confidence in how their money is dealt with.

Much of the complaints for banks last year came from mis-sold PPI claims, with Lloyds alone having to pay out £3.2 billion in compensation, it reported in November.

Majority still concerned about energy bills

3/2/2012

Despite the fact that the country has had a reasonably mild winter up until now, the vast majority of consumers in the UK are still concerned about being able to afford their energy bills.

During 2011, energy prices in the UK rose by an average of 21 per cent, according to uSwitch, and this meant that 83 per cent of the British public have cut their energy spend to compensate.

Furthermore, 75 per cent have kept the house cold at some point in order that they do not overspend on heating costs.

Ann Robinson, director of consumer Policy at uSwitch.com, said: "The only saviour has been the exceptionally mild winter we have seen this year. This has allowed many to cut back, turn down or switch off without feeling the full brunt of winter cold. But what happens next year?"

Recently, many of the big energy companies have reduced their energy prices again, with EDF being the first of the Big Six to do so.

Brits saving nine times less than Chinese

3/2/2012

British consumers are saving considerably less than their counterparts in China, the results of a new study have discovered.

People in the UK only save an average of seven per cent of their salary per year, with the median household having money put away amounting to just £5,009.

However, in China, the average working family is saving 47 per cent of its salary every year, credited to the fact that there is no pension or benefits system in place from the state in the far-east country.

This means that UK consumers are saving, on average, nine times less than people in China. The study also found those in Germany save ten per cent of their salary.

Greg Coughlan, head of savings at Lloyds TSB, said: "While these findings should perhaps not be surprising in view of the figures we have seen on savings ratios, they are still remarkable. Despite significantly higher income levels, today's British and German households are both being roundly beaten in the savings stakes by urban Chinese households. "

Earlier this week, First Direct reported that more people in the UK are now trying to save rather than reducing their debt.

Debt levels decrease in December 2011

2/2/2012

Christmas may be the one time of year when most people expect to see the average debt of consumers get higher, but according to new research, debt levels in the UK actually dropped in December last year, as the average person paid off debt rather than accumulating more.

Credit Action has conducted results which discovered that the rate at which the average debt level fell was also accelerating, as it increased by 50 per cent in the month alone.

This means that the average debt for people in the UK, as of December, was £7,948, a reduction from £7,972 the month before.

Michelle Highman, chief executive officer of Credit Action said: "I suspect that these figures in fact represent an increased level of caution and concern in your average household, which impacted confidence in putting Christmas on credit last year."

It was reported by Which? in December that 20 per cent of the UK might have to turn to credit for Christmas because of low funds.

Link and CAB look into how people access cash

2/2/2012

Cash machine provider Link and the Citizens Advice Bureau have teamed up to look at how people access their cash, and how much of a problem it would be for them if they could only access money through a machine provided by their own bank.

It will also look at any obstacles people might face when they are trying to gain access to their cash, such as fee charging machines.

Citizens Advice chief executive Gillian Guy said: "We want to understand more about how people get hold of their own money, whether there are any obstacles that stand in their way and, if so, what could be done to make it easier."

John Howells, chief executive officer of Link also stressed the importance of good access to cash, as he said many on low incomes rely on physical cash rather than credit or debit cards and need good access as a result.

In August last year, RBS was criticised for charging its basic account customers for using rivals' ATMs.

Water debts rise in 2011

1/2/2012

The number of people in England and Wales who were in debt with their water bills in 2011 showed a massive increase over the previous year.

This is particularly bad news, given that OFWAT announced earlier this week that water bills will be rising this year by 5.7 per cent, costing people an extra £20 per year over what they currently pay.

According to the Money Advice Trust, the number of people who were calling up for debt advice regarding water bills was 32 per cent higher than in 2010.

Overall, in the last five years, debts with regards water bills have risen by some 432 per cent.

Joanna Elson OBE, chief executive of the Money Advice Trust, said: "The sobering fact is that paying water bills is becoming increasingly difficult for many households across the country, and it doesn't seem to be a problem that will go away any time soon."

Teens believe debt is something everyone goes through

1/2/2012

Half of all teenagers in the UK believe that debt is something that everyone in the country will go through at some point in their life, according to a new survey.

In the questionnaire from the Chartered Insurance Institute (CII), it was discovered that the majority of teenagers in the UK have very little financial knowledge.

The results of the survey found that 51 per cent of respondents believe all people will go through debt at some point in their life.

It was also discovered that only 39 per cent received any financial education at school, while 19 per cent own a store card. However, 71 per cent admitted that they did not know what APR was.

David Thomson from the CII said: "Our research showed that even those teens who are learning some form of financial education could use additional support as many basic financial concepts seemed out of their grasp."

Recently, Skipton reported that January is the month when most Brits realise the extent of their debt problems.

Falling proportion of wage spend hurting UK workers

31/1/2012

The falling proportion of national output which is spent on wages on the UK means that British workers are taking home £60 billion less collectively than they did 30 years ago.

In a report released by the Trade Union Congress (TUC), it was said that wages in 1978 accounted for 58 per cent of the national GDP.

However, by 2008, this figure had dropped to 53.8 per cent, costing the British worker £60 billion per year.

In the same period, the TUC said that there has become an increasingly big gap between what employees are paid when compared to executives at the same firms.

TUC general secretary Brendan Barber said: "Over the last three decades workers have become more productive and yet they have been rewarded with an ever smaller share of the wealth they've created."

Earlier this month, uSwitch reported that two-thirds of the UK population are facing a wage freeze in 2012.

Brits save rather than reduce debt

31/1/2012

Twice as many people in the UK would rather save money for the future than pay off a larger chunk off their mortgage so that they can reduce the time it will take to get out of debt.

According to First Direct, 42 per cent of mortgage holders are currently saving money in a bank account, while only 21 per cent are making regular overpayments on their mortgages.

This could mean that a lot of people are reducing the amount of money they could be saving in the long run, as First Direct reported at the end of last year that overpayment on a mortgage could mean that consumers end up £42,909 better off than those who save.

Richard Tolchard, senior mortgage manager at first direct, said: "People continue to try to put some money to one side and mortgage holders are no different in also wanting to pay down their loan. However, as this study shows, more often than not they choose to feed extra money into a savings account."

Make your money work for you

30/1/2012

Full-time workers could be earning themselves a packet if they make their wages work for them, according to new advice.

MoneySupermarket.com has said that by putting just £1,500 into a market-leading current account, Brits could save themselves £450 from interest and cash back, representing almost a third of the money they put into the account in the first place.

It said that by putting £1,500 in an account and spending on a cash back credit card, people can save themselves substantial amount throughout the year, if they know what they are doing.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "Consumers can help boost the earning potential of their money by taking advantage of the various offers available on the market, sometimes to the tune of hundreds of pounds. However, in order to benefit from these deals you need to be disciplined."

Such advice could come as good news for many Brits, as it was reported last week by Skipton that January will be the month where most people realise the true extent of their debt.

January proves to be month of debt for Brits

27/1/2012

January proved to be a month full of realisation and depression for Brits who finally came to terms with what they had spent last year on their credit card purchasing.

The latest figures from Skipton Insurance has shown that the average Brit spent in the region of £17,000 last year on their plastic companions, as they made 267 transactions each. This comes in the same week as it was reported by Aviva that the average family debt increased by 48 per cent over the course of 2011.

The biggest spending points for consumers in 2011 were the petrol pumps and supermarkets, where people spent a collective £5,000 on credit cards.

Tracy Fletcher, head of corporate communications at Skipton, said: "People must not forget that any items bought on the card have to be paid for eventually. So, while it might seem like a quick fix in the short term, it can prove to be a nightmare later on."

Cost of raising a child rises again

26/1/2012

The cost of raising a child to the age of 18 in the UK has increased again, as food prices, and the cost of education, hit parents hard in the pocket.

According to the latest figures from LV, it now costs parents an average of £218,000 to bring up their child to the age of 18.

This is an increase of 3.3 per cent when compared to last year.

The research also showed that the number of people now having to cut back on their spending in order to provide for their families has reached 76 per cent, a worrying figure considering that Shelter recently reported that ten million Brits were having to slash food and utility bills to afford their rent.

A further 43 per cent of people have reduced what they can afford to put away for the future on a monthly basis while only 32 per cent have life cover.

Nearly a fifth will have debts before retiring this year

25/1/2012

Almost a fifth of people in the UK who are retiring this year will do so with a debt problem, according to a new survey conducted by Prudential.

The insurer found that 18 per cent of all of the people who plan to stop working this year are going to do so while owing money to someone.

The average amount which is owed by those heading for retirement is £38,200.

While there will be a smaller proportion of people retiring into debt this year, with the figure sitting at 20 per cent in 2011, each of those retiring owes more, with the average sitting five per cent higher than last year.

Vince Smith-Hughes, Prudential's retirement income expert, said: "Retiring with outstanding debts could be a sign of a lack of financial planning. It is important therefore for those still at work to save as much as possible as early as possible."

In further bad news, Prudential said last week that the average retirement income this year will be the lowest since 2007.

Finance is the biggest complication for families

25/1/2012

Financial worry is the biggest complication for families in the UK as more worry about their money issues than any other aspect of their lives.

A study from Admiral has found that 52 per cent of the British public believe that their lives are too complicated.

The biggest proportion say that this is because their finances are a worry, with 36 per cent believing their money issues are too complicated to deal with.

Other concerns include managing a work and life balance (25 per cent), while 24 per cent say that their family life is complicated.

Dave Halliday, Admiral acting managing director, said: "Unsurprisingly, managing money is at the top of the list as with a seemingly endless list of outgoings, it can be tricky to keep on top of everything."

Brits worrying about money is not surprising, as it was reported earlier this week by GoCompare that 26 per cent of consumers will carry credit debt through 2012.

Fifth of Christmas retail searches conducted on mobile

24/1/2012

The shift towards sales on mobile phones becoming the norm is growing, after it was confirmed that a fifth of pre-Christmas retail searches were conducted via smartphones and tablets this year.

In the final quarter of 2011, the number of retail searches overall online grew by 24 per cent. However, the biggest growth was seen with mobile devices, where the number of searches grew by 169 per cent.

The biggest day for online searching for retailers was December 4th, according to the British Retail Consortium.

Stephen Robertson, director general, British Retail Consortium, said: "For a fourth successive quarter, the number of retail searches from smartphones and tablets has nearly trebled compared with the previous year. During December, one in five retail searches came from a mobile device."

Recently, Pew Internet reported that ownership of tablet devices had doubled in the last month from the start of December.

UK entrepreneurs consider returning to work

24/1/2012

An alarming number of business owners in the UK are considering abandoning their own businesses to return to work in the mainstream as finances continue to dictate a difficult economic situation for SMEs.

The survey from Aviva showed that a quarter (26 per cent) of business owners were considering giving up their enterprise, with a third citing the fact that they no longer have the enthusiasm as their main reason for thinking about it.

Finances also dictate this trend, with half saying they have had to reduce the amount they take out of their business for their own use in the last two years. The biggest victims of this decline were those in catering, as 73 per cent of those with businesses in this sector reported a decline in what they can withdraw.

Recently, commercial landlords were urged to switch from quarterly to monthly rental payments to protect the future of many small businesses across the nation.

More than a quarter of Brits to have credit debt this year

23/1/2012

Over a quarter of people in the UK will be carrying credit card debt into the New Year, which will last throughout 2012, according to a new survey.

In December, Which? reported that 20 million Brits could not afford to spend as much on Christmas as they normally do, meaning that many would have to turn to credit cards. Now it seems like these dates may come back to haunt them.

GoCompare has reported that 26 per cent of people in the UK will have credit card debt which will last for the full year, while nine per cent are relying on their credit card to get them by day-to-day.

Jeremy Cryer, Gocompare.com's head of credit cards commented, "The rising cost of living is placing a strain on many families and credit cards are being used to temporarily ease the pain."

For people looking to cut back to make savings in 2012, GoCompare said that food bills and transport will see the first slashes.

Spending on essentials squeezing budgets still

23/1/2012

The cost of living in the UK is causing an increasing number of people to not be able to spend much money due to their spending on essentials being so high.

According to the latest figures released by Lloyds TSB, the amount of money that is spent on essentials such as food, rent and utilities has risen by 4.6 per cent in the year up to the end of December 2011.

Utilities continue to be the biggest problem, with electricity costing 9.3 per cent more in December than it did in 2010.

Lloyds TSB said that as a result of these discrepancies, many people across the UK still have a decreased spending power, with consumer confidence in spending remaining low.

Recently, a number of energy companies have decided to cut the prices that they charge customers for their bills, but this still leaves them sitting significantly higher than they were for consumers before rises in late 2011.

Rural savers are the richest in Scotland

23/1/2012

Those living in rural areas of Scotland are far better at saving money than their urban dwelling counterparts, it has been discovered, as they have significantly more on average in their bank accounts.

According to latest figures released by the Halifax, people who live in rural areas of Scotland have an average bank balance of £8,805. When compared to the £6,846 average amount of savings kept by those who live in more urban areas, the difference is clear to see.

This discrepancy between the savings people living in different areas can have amounts to 29 per cent.

It also said that those in rural areas have 37 per cent of their salary in savings, compared to just 27 per cent on average for urban people.

Nitesh Patel, economist at Bank of Scotland, said: "Some of the rural areas of Scotland have an older population profile, many attracting relatively affluent retirees. These savers have had a long working life to build up their savings pot compared to younger savers."

Last week, Bright Grey reported that many cannot afford to save though, with 16 million Brits having nothing left at the end of the month.

Rise in number who cannot afford rent

20/1/2012

The number of people living in rental properties in the UK private sector who cannot afford to meet their monthly rental rates is on the increase, according to the latest figures.

It was reported by the Association of Residential Letting Agents (ARLA) that 39.2 per cent more tenants in private properties has accumulated arrears in the final quarter of 2011.

This figure showed a significant increase from the 36.7 per cent who were struggling to pay their rent in the quarter prior.

Recently, Shelter said that 10 million people in the UK have now had to cut what they spend on gas and electricity so that they can afford their rental costs to keep their home.

Tim Hyatt, president of ARLA, said: "With household income decreasing and job uncertainty prevailing, it could be that increasing rental arrears is a sign that the wider economic malaise is having a tangible impact on personal finance."

Santander looks to help overdraft customers

20/1/2012

Santander is changing its approach to how it charges customers for overdrawing on their account, by letting them have a grace period, as well as not charging for small overdrafts.

The bank has said that customers who overdraw on their account by £12 or less will not face a charge, in order to try to help people bring their finances back into line.

Also, anyone who does go over the £12 limit will now have until 4PM on the same day to credit their account to make sure that they avoid overdraft charges.

Liz Chang, director of banking at Santander, said: "We are committed to helping our customers manage their finances more closely and the clear and transparent changes we are making demonstrate this."

Moves like this may encourage people to change their bank account providers, after Halifax announced earlier this week that one in ten UK adults have had the same account since they were a child.