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By Julia Kukiewicz Staff Writer
Friday, 9 May 2008
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Money News Roundup
If you only do one thing with your money this week...
See if you could borrow safely and interest free with a 0% credit card.
You’ll need a good credit history, be able to pay off your debts within a year and be on the ball enough to change cards quickly when you know your low interest deal’s going to run out.
But, if that’s you changing or transferring existing credit card debts to a card is well worth doing.
Check out the 0% credit card deals the top-rated deals from Egg, Virgin Money and The Post Office on our 0% credit card comparison tables.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (02 May 08)
A glance back at this week's personal finance news, including why retirees could be the credit crunch winners and how to save on broadband.
Money News Roundup (25 Apr 08)
Rounding up the week's personal finance news and featuring news of the bank charges ruling, a warning about phishing and amazingly it appears that drivers lie to their insurers.
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WE can only conclude that it’s been national Shoddy Customer Service week. The raw deals have poured in. Find out about mortgage rates, irresponsible lending and the financial life of single ladies. Plus, how to borrow safely with 0% credit card deals.
More bad news on Mortgages
THERE’S been even more bad news on mortgages this week as banks continue to raise interest rates despite the Bank of England base rate holding steady.
From today, Alliance & Leicester’s mortgage deals for new customers will rise by up to 0.75%. This follows similar moves by Nationwide and Halifax.
Those who have small-average sized deposits will be hardest hit as those who with the biggest deposits grab the best rates.
Meanwhile, the chairman of the Building Societies Association has been warning consumers not to expect improvements in the market for at least two years.
Proof, if more were needed, that the credit crunch is not a blip…
NatWest Loses it
AND as homeowners struggle to get loans The Guardian reported on an opposite problem.
18 year-old Roma Shears, a single mother on benefits, was lent £5000 from her local NatWest to buy… a new nose.
The 10.8% interest loan, with monthly repayments around £33 a week, tied Roma into paying just over £3500 in interest over a five year period for her dream nose.
More incredibly, when she, inevitably, started to have trouble making repayments the bank lent her another £1000.
So who’s at fault? The bank for lending irresponsibly or Miss Shears, as NatWest later claimed?
Obviously the new bank code that NatWest signed up just a few months ago, at the end of March, has already slipped their mind. Under section 2 of the code: “we will lend responsibly.”
Singles get a raw deal
IT’S an obvious truth that it can be more expensive to be single but for the Burden sisters from Wiltshire the problem amounts to more than the rising price of Pinot Grigio and ice-cream.
This week, the European Court refused their request to be treated in the same way as married couples or civil partners in order to avoid inheritance tax on their jointly-owned house.
Spouses and civil partners are able to transfer property at any time, including at death, without having to pay inheritance tax.
As a result of the decision the surviving sister will have to pay a massive 40% inheritance tax on the value of her half of their properties above the £312,000 threshold.
Lord Davies of Oldham, speaking on behalf of the government, said that “the line had to be drawn somewhere.”
And finally, if you only do one thing this week…
AND finally, if you only do one thing this week see if you could borrow safely and interest free with a 0% credit card.
You’ll need a good credit history, be able to pay off your debts within a year and be on the ball enough to change cards quickly when you know your low interest deal’s going to run out.
But, if that’s you changing or transferring existing credit card debts to a card is well worth doing.
Check out the 0% credit card deals the top-rated deals from Egg, Virgin Money and The Post Office on our 0% credit card comparison tables.
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