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By Julia Kukiewicz Staff Writer
Friday, 24 April 2009
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Money News Roundup
If you only do one thing with your money this week...
Compare credit cards and make sure you are getting the best interest rate you can.
If you have current debts, look to compare 0% balance transfer credit cards.
If you use a credit card for day-to-day purchases, and usually, but not always repay your balance each month, look to compare low purchase rate credit cards.
If you use a credit card for day-to-day purchases, and always repay your balance in full each month, look to compare cash back credit cards.
If you have a bad credit rating or a poor credit history and need to rebuild your credit score, look to compare poor credit history credit cards.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (17 APR 09)
Find out why Swansea's Citizen's Advice Bureau is linked to crime, why PR firms are doing well in the recession and how much kids cost in this week's money news with Julia Kukiewicz.
Money News Roundup (10 APR 09)
Find out why many Brits fear that they won't be able to pay their fuel bills this year, just how bad the sexist City really is and how to spend abroad this Easter in this week's money news with Julia Kukiewicz.
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YOUR budget week news roundup.
Darling Buds of April
THERE weren't any good news stories in this week's budget in any real sense - the economy is in far too deep for that - but for those of us with an eye on the super-rich there was that headline 50% tax.
The move will create around £7bn for the Treasury, still comparatively small fry when you remember that they have £175bn still unaccounted for, but not bad considering that the tax band will consist of just 350,000 people.
In, you have to feel, not entirely un-related news HM Revenue & Customs launched a new campaign to crack down on offshore bank accounts on budget day.
The HMRC has been investigating about 300 rich Britons who have failed to pay an estimated £300m in tax on more than £1bn in Liechtenstein bank accounts.
Darling Deflated
Amongst the talk of "proceeding to recovery" in the budget was the nagging feeling that the recession's death was being greatly exaggerated.
I'm thinking in particular of the fact that the Retail Price Index dipped between 0% last month.
The RPI should be differentiated from the CPI (Consumer Price Index) which has been on the rise. The RPI is a measure of product prices and mortgage repayments while the CPI just covers product prices.
Although there is some short-term good news from a period of deflation - particularly for those who have debt linked to the RPI, graduates, pensioners and those on benefits - in general it spells more doom and gloom for the economy.
Which? Credit Card?
In budget week, failing to pay attention to the Bank of England is a cardinal sin, as credit card companies learnt this week.
Consumer watchdog which? claimed this week that credit card providers have "lost touch with reality", as they push up charges and interest rates whilst the country cuts the cost of borrowing.
The watchdog said it found 28 providers of widely held credit cards had increased interest rates or other charges in the last year, with the biggest pushing the biggest rises.
The defence that credit card companies put up also sticks in the throat: they claim that they have to keep interest rates high to protect against bad debt. In other words, make people get into more debt on the expectation that they won't be able to manage their debt. Under these conditions, comparing credit cards has become all the more vital.
The story also prompted my favourite quote of the week from Liberal Democrat Treasury spokesperson, Lord Oakeshott: "The new bosses at RBS are fast learners in the Fred Goodwin school of greed. These taxpayer-owned banks must stop spanking their credit card customers. Paying these extortionate interest rates in the high teens destroys your financial health just like 50 cigarettes a day or 50 drinks a week."
Choose says: stop the spanking.
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