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By Justin Schamotta
Staff Writer
4 December 2009
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Money News Roundup
If you only do one thing with your money this week...
Compare Balance Transfer credit cards and start clearing yout credit card debt for the new year.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (27 Nov 09)
A glance back at this week's personal finance news HSBC launch credit and debit card in one, couple caught trying to steal credit card details, Nationwide slumps, graduate gets £2,750 in store credit, and the ruling on bank charges.
Money News Roundup (20 Nov 09)
A glance back at this week's personal finance news HSBC keep quiet on fee loophole, CofE: God wants you to spend less, "FSA sees lenders as drug dealers" and suing banks will be easier.
Money News Roundup (13 Nov 09)
A glance back at this week's personal finance news: new refund rules, Brits more optimistic about economy, parents struggle without savings, credit card users slow to pay off debt, and precious plastic will be for the rich, say PwC.
Money News Roundup (06 Nov 09)
A glance back at this week's personal finance news: credit card borrowing falls to new low, consumer anger at new Halifax charges, lump sums demanded for sub-prime mortgages and new Lending Code launched.
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Brits misjudge monthly spend... a lot, consumers repaying more debt than ever, UK payments council: put pressure on your bank, ISA sales surge and A&L brings back switching bonus in this week's money news roundup.
Brits misjudge monthly spend... a lot
CONFUSED Brits are underestimating the amount they spend on monthly bills by as much as £964, a survey has found.
The Reality Gap Report, commissioned by insurers Bright Grey, also found that while the average person thinks they could survive for ten months if they lost their job, the fact is that their money would dwindle after only five.
Roger Edwards of Bright Grey said: "Not only are they grossly overestimating how long they could survive if they lost their income stream, but more worrying is they have no real concept of what they're spending each month, making it difficult to budget and plan effectively."
Consumers repaying more debt than ever
Cautious consumers are nursing their credit crunch hangovers by repaying record levels of unsecured loans and credit card debt, according to new figures.
Bank of England data shows that October saw households cutting their credit card, loan and overdraft debt by £579 million - the biggest reduction in unsecured lending since records began in 1993.
UK payments council: put pressure on your bank
Consumers are being urged to nag their banks to ensure that money transfers happen within a 24-hour window.
The UK Payments Council has said that even if a consumer's bank is not signed up to the Faster Payments system, they can demand that payments are re-routed via a bank that is a member - though they may be charged for this service.
The Faster Payments system was set up after bank customers became increasingly baffled as to why their money disappeared for a few days when they transferred it from account to account between banks.
According to the UK Payments Council, almost four out of 10 consumers are still not aware of the service.
ISA sales surge
There were more equity Isas opened in October than for any month in the past nine years according to new figures.
The Investment Managers Association say that the high numbers were due to investors flooding back into commercial property and also those making the most of the first month in which the over-50s could use their increased ISA allowance of £10,200.
Richard Saunders, chief executive of the IMA, said the figures point to renewed enthusiasm for the property market and also increased investor confidence in equities and bonds.
A&L brings back switching bonus
Cash-strapped consumers can earn a £100 bonus from Monday by applying online for the Alliance & Leicester (A&L) Premier current account.
The offer is only available until the 13th of December and to get the full benefits you must apply online, deposit at least £500 per month and use the bank's 'Account Transfer Service' to switch direct debits and standing orders over. The £100 payment will be made within 11 weeks of account opening.
Anyone who has had a current account during the past three months with Santander-owned Abbey, A&L, Cahoot or Cater Allen is ineligible for the £100 bonus.
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