>With Credit Cards Hitting Hardest Cheap Nike Vapormax Flyknit , UK Consumers Tax Themselves With Penalty Charges On Personal Finance Options
Posted by nick_niesen on October 29th, 2010


A rise in costs for users of any financial service usually results in public outcry, why is it then that so many of those same consumers allow penalty fees and charges to accrue on their credit cards, when the problem could so easily be avoided?


The financial groups Defaqto and MoneyExpert have released a report in which the startling figure that one in five consumers have had to pay just such a charge, and while credit cards were the worst offender, a number of different personal finance services also incurred unnecessary charges. These services included charges for simple personal finance errors such as allowing an overdraft to go over the agreed bank limit, or investing in an inflexible mortgage and then paying off the debt early. In both cases either better preparation beforehand with regards to choosing the right provider (such as using an online personal finance database like Moneynet ( ) or Motley Fool ( ) ) or taking advantage of financial options now readily available would have presented more flexible options which would not have imposed the penalties.


To take an example, credit cards allow greater control over your personal cash flow - you can pay now for a product or service even if the funds you use will not be available to you until the following month, at which point you pay off the credit card. Credit cards also have valuable incentives for their use with larger purchases, featuring, as the majority do, insurance options and traceability. However when you are making smaller purchases, say clothing or household products, then the use of a credit card may not be the best use of your money: searching for a suitable personal loan would most likely result in better short-term rates and the avoidance of penalties such as those imposed on the one in five people surveyed by Defaqto and MoneyExpert.


With the survey also producing the result that one in twenty consumers faced charges in excess of £100 it would seem that this problem is more than a trifle for a large portion of the UK population and that while there are a great number of personal finance options available out there, there are very often not used to the advantage of the consumer as they could so easily be with a little research.


Disclaimer


All information contained in this article is for general information purpose only and should not be construed as advice under the financial Services act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Photo: Internet

China's economy is on a path of steady growth as 2016 comes to an end, supported by a housing boom and billions in government investment.


But the mood of policy-makers is more cautious than celebratory as they face “complexity” in the new year.


Controlling risks has been a constant refrain in recent months as their focus switches to taming asset bubbles and checking unbalanced growth stemming from efforts to fuel the economy with credit.


The central bank — while reaffirming a long-standing commitment to prudent policy — said yesterday that it would pay more attention to maintaining a “neutral” stance and ensure that it is “neither too tight nor too loose.”


“At present, China’s economic and financial operations are generally stable, but the complexity of the situation cannot be underestimated,” the People’s Bank of China said.


Bank lending is on track to top 2015’s record 11.71 trillion yuan (US$1.7 trillion), helping to stoke a housing boom that saw prices rise a historic 12.6 percent year on year in November, while fixed asset investment by state firms is growing more than 20 percent.


But growth has become more imbalanced as the effectiveness of new credit declines and companies and individuals face mounting debts, according to some economists.


Policy insiders expect monetary policy to tilt toward slight tightening in 2017 as the government tries to strike a balance between supporting the economy with ample credit and preventing a destabilizing build-up in debt.


In an interview on Thursday, central bank adviser Sheng Songcheng told reporters that interest rates in China were already on an upward trend as the economy improved.


In financial markets, China’s blue-chip stock index ended the year more than 11 percent lower while the yuan at an 8-12 year low.


Primary money rates rose this week and were largely higher this year, driven by the central bank’s tighter liquidity stance in the second half aimed at taming risks.


The key interbank rate rose more than 25 basis points for the year, indicating tighter monetary conditions, after falling sharply in 2015.