Thinking Money | Free Financial Advice and Tips

Weekend Spending Suggests Credit Card Use Is Rapidly Declining

Posted on 22. Dec, 2009.

Despite most people’s finances not being at their best, it is hard to resist the allure of the the holiday season.

Internet sales have increased by 18% since 2008. November the 29th, now dubbed ‘Cyber Sunday’, saw British consumers spend approximately £320million over in the internet to purchase holiday gifts (and the occasional personal treat). On the 30th, more tenuously called ‘Mega Monday’, VISA expects £2.4 million’s worth of purchases will take place. By Christmas Day itself, almost £4.6 billion is likely to be spent on the season of goodwill. Last year, Amazon’s busiest sales day saw almost 16 order per second – this year looks set to break this record. Internet trading group IMRG predicts the online sales totals to break £13 billion.

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Step by Step Process to Reduce your Credit Card Interest Rates

Posted on 27. Nov, 2009.

Are your credit card interest rates making it challenging to pay your minimum payments? If so, it is time to proactively work to reduce them. Contrary to what many consumers believe, there are proven methods that you can employ to reduce the interest rates you are currently paying on your credit cards.

1. 1.Call Your Credit Card Company - While this may seem like common sense, many consumers fail to take this important step. Ask for a customer service representative or department manager and let them know that you are currently shopping for lower credit card offers. Ask what their current, best interest rate offer for you is. Once they provide you with a number, let them know that you will be back in touch with them. You will often be surprised at how much lower your current credit card company will go with your interest rate just with a simple phone call.
2. 2. Shop Interest Rates - Now that you know what your current credit card companies are willing to offer you in terms of interest rates, begin to shop around with other companies to see what they will offer. Search for 0% introductory interest rate offers, begin to collect any promotional credit card offers in the mail and even speak with your current banking professional to see what kind of credit card interest rate offer they may be able to offer you. Compare the interest rate offers that you have collected to determine whether or not they are lower than what your current credit card companies are willing to offer you. But, before you make a switch, also consider a consolidation loan.
3. 3. Consider a Consolidation Loan - The next step in the process is to review your options for a consolidation loan. These loans are often offered through your current financial institution. Set aside some time to speak with your current bank officer and communicate your desire to consolidate your current credit cards into a single loan at a lower interest rate, in order to pay off the consumer debt off quicker.
4. 4. Compare and Contrast - Now that you have collected information about all of your available options, you can compare and contrast the interest rates and the offers. In addition to the interest rates, you also want to take time to review how long the promotional or lower interest rates are offered. Also review whether new purchases will qualify for the reduced interest rates or whether they only apply to balance transfers. With all of this information, you can make the best financial decision regarding your current credit card interest rates.

Working through these steps will not only help you to lower your current credit card interest rates, but will also lower your monthly minimum payment amounts and the total amount of time it takes you to repay your consumer debts.

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UK Banks to improve transparency in service charges

Posted on 20. Oct, 2009.

Banks in the UK have agreed to ensure that their charges on current accounts are more transparent and easier to understand. The objective is to make consumers better informed to make choices on what the type of accounts to operate and with what bank. (more…)

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New Credit Card Rewards

Posted on 30. Sep, 2009.

Traditionally, credit card company reward programs have featured airline mileage, gift certificates, and cash back for customers who spend more on their cards to get top ups. However, today card companies are offering new sets of incentives perhaps in response to the implementation of the first set of rules by credit card bill last week. (more…)

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Credit Card Reform have began with mixed response

Posted on 28. Sep, 2009.

Last Friday, Credit Card companies began adjusting to new ways of doing business. First new rule: they will now have to notify their customers not less than 45 days ahead of any interest rate increases unlike previously when only 25 days advance notice was all that was required. Customers who are not happy with any changes in the interest rate are free to close their accounts and pay their remaining balances based on the old interest rate. (more…)

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BOA to open new branches in China

Posted on 18. Sep, 2009.

Plans are far advanced for the Bank of America Corp, to establish its commercial and investment banking business in China – the world’s fastest-growing economy. (more…)

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Confusion over tax credit leaflet

Posted on 18. Sep, 2009.

A new leaflet explaining how tax credits would work was withdrawn by HM Revenue & Customs because of an error.

The HMRC leaflet published in April this year on its website on the causes of overpayments became an issue of confusion and criticism by the British public. (more…)

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Personal Inflation Calculator

Posted on 14. Jul, 2009.

So are prices going up or going down? Inflation as measured by the Retail Price Index has fallen to -1.6%, while the Consumer Price Index has fallen below the government’s target of 2% for the first time since September 2007. But how does this all affect you? Follow the link below to find out exactly how you’re affected.

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Helping Charities with Falling Incomes: 10 Ways to Donate at No Cost

Posted on 02. Jul, 2009.

In the present economy, charities are suffering because people don’t have enough extra money to donate. However, there are several ways you can donate to charities at no cost to your pocketbook:

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Ireland’s New Credit Card: Ryanair 0% Balance Transfer

Posted on 23. Jun, 2009.

Ryanair & MBNA Ireland, giants in their respective fields

Ryanair, Europe’s largest low fare airline, emerged in June 2009 as Europe’s biggest airline in terms of passenger numbers, having overtaken major rivals such as Air France, British Airways and Lufthansa.

Ryanair operates on more than 830 routes across 26 countries, connecting 148 destinations.

Thinking Money expects Ryanair to maintain its traffic growth by 15 percent to fly 67 million passengers during 2009/2010.

Thinking Money notes that MBNA Ireland is the Republic of Ireland’s third largest credit card provider, endorsed by almost 90 organisations as diverse as EBS Building Society, Irish Heart Foundation and Munster Rugby. Knowing the popularity of Ryan Air in Ireland, Thinking Money believes this will become one of the most popular affinity cards on the market.

Unbeatable fee-free period and appetising rewards

Ryanair/MBNA’s recent online credit card offer of 0% interest for the first 10 months on balance transfers is four months longer than any other credit card available in Ireland.

Thinking Money highlights the increasingly competitive credit card industry, where 0% balance transfers and reward credit cards are becoming the only way to compete. The surging growth of MBNA credit cards in the UK and Europe is a testament to such a theory.

Customers who use the card within 90 days of opening the account will receive a bonus return flight of their choice from a selection of top European destinations. Buying five return flights using the Ryanair/MBNA credit card will earn users an additional bonus return flight.

For every €2,000 spent on the Ryanair/MBNA credit card in a calendar quarter, users receive one bonus return flight, while €5,000 spent will earn users a pair of return flights.

Offer allows customers extra time to pay off balances

Stephen McNamara said the new offer was aimed at allowing customers extra time to pay off their credit or store card balances.

McNamara states that:

Those taking advantage of our latest offer can also jet away to a host of European destinations as a reward for taking the first step in reorganising their finances

Kevin Power, Head of Partnerships at MBNA Ireland, added that since the launch of the MBNA/Ryanair credit card in 2002, customers have benefited from earning bonus return flights offered on the Ryanair Credit Card.

Power states:

This benefit provides new customers with more choice when shopping around…

Thinking Money warns customers moving to Ireland of a hidden cost unrelated to credit card companies – the annual government stamp duty on credit cards is currently €30. In many instances though, customers can recoup this saving and more by carrying a credit card balance transfer. Although a relatively new product to the Irish credit cards market, balance transfers can certainly provide savings for consumers in these troubled times.

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