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MORE THAN 4.5 MILLION
STILL PAYING FOR LAST CHRISTMAS
MORE than 4.5 million credit card
customers still haven’t cleared debts they ran up last Christmas as
a new wave of festive expenditure approaches it’s climax, new
research from MoneyExpert.com shows.
The independent financial comparison website warns that millions of
us will be piling extra spending on top of debt run up paying for
Christmas 2007. Its research shows 10% of adults still haven’t paid
off their card bills from the last festive season.
MoneyExpert.com is urging people with debts to start getting their
borrowing under control. Someone carrying a balance of £1,000 from
last Christmas will have spent around £169 in interest over the year
if their rate was 16.9%. The research is not all bad news –
50% of adults in Brittan either didn’t get into any debt last
Christmas or paid it off in a month or less. Another 9% took between
2 and 5 months to clear their festive spending.
However Sean Gardner, Chief Executive of MoneyExpert.com, said:-
“It’s really no surprise that retailers are having a lean time
when 1 in 10 of us are still trying to pay for last Christmas.
Hopefully the realisation that another year has rolled round will
encourage card users to re-structure their repayments and start
clearing their debts. Certainly the options for consumers looking to
switch large balances from one card to another are becoming more
limited as requirements become stricter. What’s more as deals expire
the interest charged can be incredibly high.”
The research shows that those aged 25 to 34 are most likely to be
suffering a financial hangover from Christmas 2007. Indeed there has
been a marked increase in the number adults of that age repaying 12
month old Christmas credit card debts. In 2007 12% of adults in this
age bracket admitted to doing this, this year 15% admit to it. That
equates to 1.3 million adults aged between 25 and 34, over a quarter
of a million more than in 2007. The research shows 3% of
British adults took 2 months to clear Christmas debts while another
3% took 3 months. 2% took 4 months while a further 1% took 5 months.
Despite a tightening of procedures for credit card applications over
the last 12 months there are still many deals available that will
help people cut debts. Analysis of the market shows currently
80% of all standard credit cards now offer 0% balance transfer
deals. That amounts to 181 cards compared with 169 at the start of
the year.
MoneyExpert.com aims to demystify the complex world of personal
finance, and to help inform customers of the choices available. The
service can be found at:-
moneyexpert.com.
Christmas Cutbacks at Home
A recent survey conducted by
Organised Mum found that 82% of mums are cutting back on the amount
of money they are spending on their children this Christmas. A
majority were planning on reducing spending to as little as £40 per
child. This year parents are watching their pennies, high
street stores are doing all they can to get customers through their
doors with numerous special offers and discounts. However,
this perhaps offers the perfect opportunity for families to
introduce a real tradition and meaning of Christmas back into their
homes.
What do you, our readers think about
this? Email your views to
news24@southportreporter.com.
Letters To The
Editor:- "Sajjad Karim MEP - New Car Sales."
"AS the downturn begins to bite,
new car sales are plummeting, with November 2008 seeing the worst
year on year fall of sales since 1980. That is why we cannot
make life more difficult for our beleaguered car manufacturers.
However, we also face an equally pressing concern... the need
to reduce vehicle pollution swiftly and substantially.
Fortunately, thanks to Conservative pressure, a new EU law on car
emissions will balance these two concerns. Much cleaner cars
will be on our roads within six years, without forcing companies out
of business.
Manufacturers will have to reduce
their emissions by 18 per cent to 130 gram per KM by 2015, with a
long term target of 95g by 2020.
Given the time it takes for a new
car to go from drawing board to production, these targets are far
more realistic than some MEPs had demanded.
Conservatives also helped negotiate special provisions for
Jaguar-Land Rover as they have a niche vehicle range, and the
company that produces the iconic black cab will be exempted
altogether.
We can turn our economy green without penalising companies, but we
must give them incentives to do so." Sajjad Karim MEP,
Conservative Member of the European Parliament Representing the
North West.
www.sajjadkarim.eu |
More seeking help with employment issues
NEW figures
released by national charity Citizens Advice reveal that more people
in the North West are seeking advice about applying for jobs,
redundancy and claiming Job Seekers Allowance. Released the same day
as the latest monthly Labour Market Statistics, the figures reflect
the continuing effects of the economic downturn on the job market.
The figures show that since April, Citizens Advice Bureaux in the
North West - which includes the counties of Merseyside, Greater
Manchester, Lancashire and Cheshire - have seen daily enquiries
relating to redundancy increase by 72%. However this increase is
significantly less than the increase of 125% across the whole of
England and Wales (from under 200 enquiries per working day in April
to 425 per day in November).
Daily enquiries about Job Seekers Allowance in the North West region
have risen 63% since April which is only slightly less than the
increase of 66% across England and Wales. Over the last
financial year (April 2007 to March 2008) the number of enquiries
from people seeking advice on applying for jobs rose by 76% across
the service. According to recent research by the Chartered
Institute of Personnel Development (CIPD) and KPMG a quarter of UK
employers have drawn up plans to make redundancies in 2009.
Citizens Advice Chief Executive, David Harker said:- “Rarely a
day goes by without reports of yet another company announcing job
cuts. In this current climate it’s imperative to know your rights
and be able to access free advice if you have been made redundant or
fear you may be.”
Citizens Advice is offering the following Top Tips for people at
risk of redundancy:-
1. If you have a contract, check it. As well as your statutory
entitlements to notice - or pay in lieu of notice - and a redundancy
payment, you may have enhanced contractual rights to both.
2. An employer must be fair and objective when deciding who should
be made redundant. If you feel you have been unfairly selected for
redundancy you can make a claim to an Employment Tribunal within 3
months.
3. If your employer offers you alternative employment it should be
"suitable" ie. similar pay, status, hours, location etc. If you
unreasonably turn such an offer down, you could lose your right to a
redundancy payment.
4. If the terms and
conditions vary in the alternative job you can work for a 4 week
trial period. If you find it unsuitable you may leave and you could
still retain your right to a redundancy payment.
5. If you are made redundant because your employer has gone into
insolvency, you may be able to claim your redundancy payment and
certain other payments from the Insolvency Service’s Redundancy
Payments Office.
6. Once you have
received your redundancy pay, be very careful about what you spend
the money on until you have taken advice on how it may affect your
benefits and tax position. You may be treated as still having the
money even if you have spent it.
7. If you haven't got another job to go to, you might be entitled to
help from the government or local authority in the form of benefits. Depending on your circumstances these could include Jobseeker's
Allowance (JSA), Housing Benefit, Council Tax Benefit, free school
meals for your children and help with NHS costs.
David Harker added:- “You can only be made redundant if your
job disappears or your employer reduces its workforce. When
your employer chooses who to make redundant, it is illegal to use
selection criteria which discriminate against anyone because of
their age, gender, race, disability, sexual orientation, religion or
belief.
If you are struggling to pay bills as a result of redundancy it’s
vitally important to speak to your lenders straight away. If you
would like free confidential advice on redundancy rights and
entitlements get in touch with your local CAB. They can also give
you a benefits check and provide advice on how to manage any debts
you may have.”
Tips for people facing redundancy visit this
link.
Employment fact sheets go to their
website.
Examples of evidence
A CAB in the North West reported a 54 year old client who was being
made redundant from a car dealership. He had some dissatisfaction
with the process and had consulted an employment solicitor. He was
entitled to statutory (not contractual) redundancy pay but his boss
told him face to face that he would not receive his redundancy pay
cheque unless he signed a disclaimer saying that he would not take
any action against the company. The client was probably not going to
take any action against them but felt he should be able to do so if
he wished without this affecting payment of his redundancy pay.
A CAB in the North West reported a 40 year old male who was made
redundant after his firm was taken over. He then saw his job, which
he was told no longer existed, advertised in the local Job Centre. The client had worked in this job for 3 years and had undergone
previous takeovers without problems. The firm are denying that they
have a copy of the contract. Or have done anything wrong. Fortunately the client has found a replacement job.
Key facts
► In 2007/8 the Citizens Advice service saw 1.9 million clients with
5.54 million issues, of which 500,000 were related to employment
► There are 426 member bureaux, of which there are 653 bureau
locations, 1,800 regular outreaches and 750 irregular or one-off
outreaches
► 85% bureaux offer home visits, 35% offer hospital visits and 37%
offer out-of hours service
► Across the service, advice is given in 74 different languages
► 26,000 people work for bureaux, of whom 15,800 are volunteers,
6,000 are paid staff |
