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'Buy now pay later' deals on the rise
The Finance and Leasing Association (FLA) have announced that the amount of in-store credit available in March this year was 24% higher when compared with March 2008. This means that more people can choose to pay for an item, such as a sofa or a television, over a period of months, and then after repaying the full amount, plus interest, the item becomes theirs.
However although this is an area which is growing in popularity during the credit crunch, it can be more costly in the long run. Credit Action has compiled a helpful table where you can compare the cost of buying an item on 'buy now pay later' credit, with buying the item in other ways.
As the table shows, 'buy now pay later' details are very expensive.
Here is a review of the other top money stories of the past week commencing the 25th May 2009.
However although this is an area which is growing in popularity during the credit crunch, it can be more costly in the long run. Credit Action has compiled a helpful table where you can compare the cost of buying an item on 'buy now pay later' credit, with buying the item in other ways.
As the table shows, 'buy now pay later' details are very expensive.
Here is a review of the other top money stories of the past week commencing the 25th May 2009.
Tuesday 26th May
Beware of loan sharks – A report released by the New Local Government Network (NLGN) has warned that due to the economic downturn there could be a rise in the number of illegal moneylenders. The NLGN say that 165,000 people in the UK have already used a loan shark, and they forecast that a further 35,000 could be at risk of using them as more traditional sources of credit dry up. The NLGN has called for local government to have a more involved role in preventing the rise of illegal money lenders, by setting up their own banks or to pump funds into regulated credit unions. Borrowing money from a loan shark is a dangerous and costly choice. If you are having money worries or feel weighed down by debt, contact the Consumer Credit Counselling Service (CCCS) on 0800 138 1111.
Young people will struggle to find jobs – A survey conducted by the Chartered Institute of Personnel and Development (CIPD) has revealed that young people will face challenging times when they try to find work this summer. CIPD surveyed 500 companies and only 1 in 5 reported that they would be employing 16 year-olds who planned to leave school this summer. Similarly a third of firms said that they would be reducing the number of graduates that they take on. Overall, just under half of the companies surveyed said that they would not be taking on school leavers or graduates. Unemployment so far this year has reached 2.2 million and in the UK more than 450,000 people under the age of 25 claim job seeker's allowance. It seems that young people will find it challenging to find jobs as they do not have the experience that many employers are looking for. Other research conducted by the Prince's Trust and Cass Business School has warned that young people in deprived areas would be hardest hit by the recession.
Beware of loan sharks – A report released by the New Local Government Network (NLGN) has warned that due to the economic downturn there could be a rise in the number of illegal moneylenders. The NLGN say that 165,000 people in the UK have already used a loan shark, and they forecast that a further 35,000 could be at risk of using them as more traditional sources of credit dry up. The NLGN has called for local government to have a more involved role in preventing the rise of illegal money lenders, by setting up their own banks or to pump funds into regulated credit unions. Borrowing money from a loan shark is a dangerous and costly choice. If you are having money worries or feel weighed down by debt, contact the Consumer Credit Counselling Service (CCCS) on 0800 138 1111.
Young people will struggle to find jobs – A survey conducted by the Chartered Institute of Personnel and Development (CIPD) has revealed that young people will face challenging times when they try to find work this summer. CIPD surveyed 500 companies and only 1 in 5 reported that they would be employing 16 year-olds who planned to leave school this summer. Similarly a third of firms said that they would be reducing the number of graduates that they take on. Overall, just under half of the companies surveyed said that they would not be taking on school leavers or graduates. Unemployment so far this year has reached 2.2 million and in the UK more than 450,000 people under the age of 25 claim job seeker's allowance. It seems that young people will find it challenging to find jobs as they do not have the experience that many employers are looking for. Other research conducted by the Prince's Trust and Cass Business School has warned that young people in deprived areas would be hardest hit by the recession.
Wednesday 27th May
Many adults are not saving for retirement – A recent survey commissioned by the BBC has found that 50% of UK adults aged between 20 and 60 are not putting any money aside into a pension. The survey questioned 1,358 people and the results were even more shocking when it came to the under 30s. The survey indicates that only 1 in 3 people under the age of 30 are putting money into a pension, but half of those surveyed felt confident that they would still be comfortable in retirement. Although retirement can feel a long way off when you are in your twenties or thirties it is important that if you are able to, put some of your income aside each month into a pension. moneybasics has some information on pensions and Moneymadeclear from the Financial Services Authority (FSA) also provides some great, clear information on pensions and retirement.
Many adults are not saving for retirement – A recent survey commissioned by the BBC has found that 50% of UK adults aged between 20 and 60 are not putting any money aside into a pension. The survey questioned 1,358 people and the results were even more shocking when it came to the under 30s. The survey indicates that only 1 in 3 people under the age of 30 are putting money into a pension, but half of those surveyed felt confident that they would still be comfortable in retirement. Although retirement can feel a long way off when you are in your twenties or thirties it is important that if you are able to, put some of your income aside each month into a pension. moneybasics has some information on pensions and Moneymadeclear from the Financial Services Authority (FSA) also provides some great, clear information on pensions and retirement.
Friday 29th May
House prices on the up - House prices in May have risen 1.2% according to the latest housing price index from the Nationwide. Nationwide reports that house prices are 1.2% higher than they were in April, as buyers have come back into the market. The average home in the UK now costs £154,016. Although this lowers the rate of annual decline in house prices from 15%, house prices are still 11.3% lower than they were a year ago. Nationwide have been clear to exercise caution and point out that although this is a positive sign in the housing market, Martin Gahbauer, Nationwide's chief economist, says "it is still too early to say that the market is turning definitively."
Car scrappage scheme seems to be working - At the start of this year the motor industry was being hard hit by the recession as sales of new cars plummeted. In the first four months of this year, sales were 28.5% less than what they had been in the first four months of 2008. Yet, figures released today have shown that 35,000 new cars have been ordered since the start of the government's scrappage scheme which was announced in April. This means that 1 in 5 new car buyers have taken advantage of the scheme, whereby the driver is given £2,000 discount when trading in a car over 10 years old. The government has hailed the scheme as a success, and although the motor industry says it needs more time before the true effects of the scheme will be felt, the £300 million pound scheme has definitely got off to a good start.
Mortgage Rescue scheme isn't off to a good start - Mortgage Rescue was introduced by the government four months ago to help those who were having difficulties in keeping up with the repayments on their mortgage. Yet, so far only two households have been helped by the £285 million scheme, even though 1,084 people approached their local authority in April to see if they were eligible for help. To be eligible for the scheme you have to be at risk of repossession and be elderly, disabled, pregnant or have dependent children. The government says that at the moment 376 applications for help from Mortgage Rescue are now under consideration.
House prices on the up - House prices in May have risen 1.2% according to the latest housing price index from the Nationwide. Nationwide reports that house prices are 1.2% higher than they were in April, as buyers have come back into the market. The average home in the UK now costs £154,016. Although this lowers the rate of annual decline in house prices from 15%, house prices are still 11.3% lower than they were a year ago. Nationwide have been clear to exercise caution and point out that although this is a positive sign in the housing market, Martin Gahbauer, Nationwide's chief economist, says "it is still too early to say that the market is turning definitively."
Car scrappage scheme seems to be working - At the start of this year the motor industry was being hard hit by the recession as sales of new cars plummeted. In the first four months of this year, sales were 28.5% less than what they had been in the first four months of 2008. Yet, figures released today have shown that 35,000 new cars have been ordered since the start of the government's scrappage scheme which was announced in April. This means that 1 in 5 new car buyers have taken advantage of the scheme, whereby the driver is given £2,000 discount when trading in a car over 10 years old. The government has hailed the scheme as a success, and although the motor industry says it needs more time before the true effects of the scheme will be felt, the £300 million pound scheme has definitely got off to a good start.
Mortgage Rescue scheme isn't off to a good start - Mortgage Rescue was introduced by the government four months ago to help those who were having difficulties in keeping up with the repayments on their mortgage. Yet, so far only two households have been helped by the £285 million scheme, even though 1,084 people approached their local authority in April to see if they were eligible for help. To be eligible for the scheme you have to be at risk of repossession and be elderly, disabled, pregnant or have dependent children. The government says that at the moment 376 applications for help from Mortgage Rescue are now under consideration.
