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By Mark Lewin
Staff Writer
11 September 2009
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Money News Roundup
If you only do one thing with your money this week...Compare 0% Balance Transfer Credit Cards
The deals may be shrinking but they're still there. Check out our comparison table.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
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A glance back at this week's personal finance news AMEX announces £20 fine, energy companies withhold savings from customers and cheap loans are few and far between despite improvements in the housing market.
Money News Roundup (28 Aug 09)
A glance back at this week's personal finance news the biggest ever credit card fraud case, luxuries we won't go without in the recession and Cockney bank machines.
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Money News Roundup (14 Aug 09)
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HSBC starts a mortgage war, Brown says 'no' to City bonuses and Brits finally start to pay off their debts in this week's money news roundup.
Cash Machine Crime on the Rise
CASH machine crime is on the increase, according to an EU watchdog. Organised gangs across Europe are using a mixture of hi-tech 'skimming' and low-tech 'smash and grab' techniques to target ATMs.
ATM crime in Europe rose to an unprecedented £423m in 2008 - a 149% rise on the previous year. Gangs are using sophisticated Bluetooth technology to transmit card and PIN details to nearby laptops - a process known as 'skimming'
However, for the less technical among them, the 'old favourites' such as ram raiding and the use of rotary saws, diamond drills and blowtorches are still effective.
ENISA, the European Network and Information Security Agency blames the rises on an influx of gangs from Eastern Europe.
The End of Big Bonuses?
GORDON Brown has spoken against the 'telephone number' bonus culture of the banks. He has offered his support to the G20, which in April promised to pass "tough new principles on pay and compensation".
The prime minister said that bonuses should more clearly reflect profitability to protect against the threat of collapse that was so prevalent last year.
Most nations appear to be in agreement but are undecided about what approach to take.
So far in the UK, the most decisive action has been taken by the Financial Services Authority (FSA). From January, bonuses at banks will not be guaranteed for more than a year and senior employees must have their bonuses spread over three years.
The G20 meeting in Pittsburgh later this month will undoubtedly raise the issue again.
Balance Transfer Deals Halve
THE number of 0% balance transfer credit card deals has nearly halved during the past four years, according to recent research by Moneynet.co.uk.
Only 52 providers currently offer this deal to customers transferring existing debt to them, compared to 90 in August 2005.
Interestingly, though, the duration of these deals has increased, from an average of 6.48 months in 2005 to 9.7 months in 2009, although this is down from 10 in 2008.
The average rate credit cardholders are charged on purchases has risen only slightly during the same period to 17.32%, up from 15.15%. But the interest on cash advances has soared from an average of 19.04% in 2005 to 26.01% now.
Mortgage Overpayments on the Rise
AFTER years of being among Europe's most in debt, saddled with credit cards and super-sized mortgages, British consumers are now leading the way in paying it back.
Bank of England data issued this week shows that, for the first time since records began in 1993, homeowners are paying back more on their mortgages than homebuyers are borrowing.
Last month, mortgage-holders paid back £418m more than was taken out in new loans. The overall rate of unsecured debt fell too as consumers paid off credit cards and bank overdrafts and avoided new debt.
Of course, the current financial crisis has made it harder to get credit and this is no doubt reflected in the figures. But low interest rates have given many people a bit more breathing space and they are using this to reduce their overall debt.
Has HSBC Started a Mortgage War?
HSBC raised a few eyebrows recently when it launched its super-low 1.99% mortgage deal and leapt instantly to the top of the mortgage charts.
Some wondered whether this would breathe life into a dying market and perhaps even start a 'mortgage war' among the high street lenders.
However, with its 40% minimum deposit and substantial £1,199 booking fee, only a lucky few will be able to take advantage of HSBC's deal.
It does suggest, however, that things are beginning to pick up in the mortgage market. The August housing market report from the National Association of Estate Agents revealed that although the number of sales decreased, there was a sharp increase in the number of first-time buyers from 22 per cent in July, to 63 per cent in August.
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