Related Credit Card Article

"Report shows families under financial strain"

By admin | July 30th, 2008 | General

A recent study that was conducted by the Centre for Policy Studies has shown that many families in the UK are still under considerable financial strain. Taxes, bills, and living costs have risen far more quickly than wages, and this has made it difficult for consumers to stretch their monthly income as far as it needs to go. The study showed that the average family is now paying around £8000 more in taxes than they were ten years ago around the time Labour first came back into power.

The report from the Centre for Policy Studies is aptly titled ‘Why Do We Feel So Broke?’. According to the data in the report consumers have had to put up with an array of rising costs since 2005, including mortgage repayments, energy price increases, higher food costs, increasing petrol costs, etc. However, in the same period increases on wages have stopped for many consumers, or have risen far more slowly than inflation on living costs.

Household finances have been put under immense strain over the past couple of years. The series of five interest rate hikes have resulted in some homeowners being unable to meet mortgage repayments, and this saw the level of repossession rocket by over 20% last year. Even when interest rates did start to fall, with one 0.25% cut in December, and a further one in February, other costs started to rise, such as the cost of energy usage.

The strain on household finances has affected both consumer confidence and consumer spending, and this has had a knock on effect on the economy over recent month. It is hoped that further interest rate cuts will help to ease financial problems and boost the economy, and a number of further rate cuts are expected for this year.

Recenet Additions:

• Banks hassling struggling consumers
• More people spend more money on their credit cards on Saturdays
• Credit card costs still spiralling says expert
• Consumers not careful enough over plastic card security
• Rise in insolvency levels fuelled by various factors

Tags: mortgage rpayments, energy price, interest rate

Related Articles:

• Credit card rates soar despite base rate

  For nearly two years the Bank of England base rate has been at an all time low level of just 0.5 percent, which is the lowest it has been in the history of the central bank, which spans over three centuries. However, despite this rock bottom base interest rate the cost of borrowing on credit...

• Two interest rate cuts predicted for 2008

  The base rate cut that took place in December came as welcome news for many homeowners across the UK who had been struggling to keep up with repayments on their mortgage. The base rate was cut by 0.25% for the first time in two year, after a series of five interest rate rises between August...

• Credit card borrowing much higher than in 2006

  Over the past few years the interest rate has been fluctuating a lot, with five interest rate hikes of 0.25% each between August 2006 and July 2007, and then three interest rate cuts of 0.25% each between December 2007 and April of this year. However, in a recent report industry officials pointed out that the...

• Many Brits do not worry about credit crunch

  A recent report has suggested that many Brits may not be all that worried about the ongoing global credit crunch, with many stating that the credit crunch is unlikely to affect them or their lifestyles. A survey was carried out by insurance company Zurich, and showed that around 36% of Brits were not concerned as...

• Credit card borrowing rockets due to credit crunch

  According to a recent report borrowing on credit cards has rocketed over recent months as a result of households struggling to keep on top of their finances, and the problems caused by tighter credit conditions stemming from the global credit crunch. Figures for March showed that the level of unsecured debt in the UK had...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More