Preventing the Annoying Ring of Jingle Bells
According to the Commons Trade and Industry committee, many vulnerable populations, including the elderly and "non-elderly vulnerable groups, particularly disabled people, whose difficulties in relation to fuel poverty have been known for a long time," have been hit particularly hard by the recent spikes in UK gas prices.
Most of the major energy suppliers have recently raised prices by as much as 15% due to a shortage of gas supplies from Europe and declining North Sea production. Customers are worried that prices will go even higher if the UK has a cold winter.
As the report from the committee noted, "if fuel prices continue to rise it will be essential to provide further assistance to the elderly."
Research commissioned by Egg also suggests a gloomy outlook for many non-elderly or disabled individuals.
According to data compiled by the internet bank Egg, the typical British household spends £888 per month on bills, despite receiving a meager £1,953 in revenue per month. Egg determined that the typical Briton goes about 23 days a year essentially broke, relying only on credit and overdrafts, after all monthly expenses and bills have been paid. Four out of five respondents to a YouGov poll earlier this year admitted to not saving nearly enough for a comfortable retirement, with many citing high levels of personal debt as the main reason.
Egg claims that many customers are spending more than they should because they rely on credit cards and don't budget well. To make ends meet, these consumers are borrowing money at rates of 12.6% for legal current account overdrafts and 24.3% for unauthorized ones. To rub salt in the wound, over one-third of customers have been fined by their bank in the past year, with an average penalty of £27.
A recent warning from the financial comparison site Moneynet (http://www.moneynet.co.uk/) states that store cards and unsolicited checks sent by credit card issuers can be quite alluring "just to get through to next pay day" when funds are stretched to breaking point. Consumers should stay away from credit card checks at all costs, according to Moneynet CEO Richard Brown. These checks are not like the credit card individuals carry around with them; in fact, many people are unaware that they incur additional fees. It's completely careless and wrong.
For Mr. Brown, "Store card charging structures also need to be radically reformed" is another important issue. Government watchdogs should show their teeth and take action, as the worst violators are usually well-known names on the High Street.
After the holidays, if you don't know what you're doing financially and don't have good budgeting abilities, you can be in for a rough new year. With the proliferation of financial products and advice, consumers may feel overwhelmed and afraid to take action. Fortunately, there are organizations like the BBC that offer helpful resources, and in recent years, numerous financial assistance websites have emerged, such as http://Moneynet.co.uk and Fool (http://www.fool.co.uk/), to help consumers overcome their financial fears and easily compare rates for various financial services.
Customers should manage their own money until consumer credit and other financial sector interest rates are regulated by statute. While the majority of people can't do much to boost their income, they can cut back on the overpriced financial services that cause them to waste money on a regular basis.
Warnanty: Nothing in this article should be taken as advise in the sense of the Financial Services Act of 1986; it is merely for general informational purposes.
It is highly recommended that you consult with competent professionals and attorneys before signing any legally binding contracts.
