Becoming Financially Aware

People ‘Becoming Financially Aware'

Britons are becoming more responsible when it comes to managing their finances, an industry expert has asserted.



Speaking earlier this week, James Falla, director of Thomas Charles, reported that consumers are becoming more conscious of the effects on their money management that shopping with store and credit cards can have. He pointed out that the rates of interest attached to such plastic cards are "very, very high" and are among the most expensive levels of all types of borrowing.



Mr Falla also pointed out that a number of consumers are looking towards taking out a personal loan as a means of debt consolidation to help them get out of the red. In addition, he claimed people are beginning to recognise the need to change their spending habits when aiming to get in a more favourable financial standing. However, the director urged those who have taken out a loan to take care that they do not get back into debt once more.



He said: "It's no good just thinking that you can solve your debt problem by just getting a personal loan and then continuing to spend on the credit cards because you end up with a personal loan and credit cards. I actually think that people are starting to wake up a little bit, to take a little bit more responsibility for their spending - particularly with everything going on around them [within] the financial environment. People are starting to think: 'What am I going to do when it comes to paying this back?'"



The spokesperson also pointed out that the main reason for why many people develop unmanageable debt difficulties is because they fail to fully understand the demands on their spending. As a result, he advised that taking the time right now to sit down and work out their personal finances ahead of Christmas could see Britons find their monetary situation is in a "very good stage for the new year". Mr Falla also pointed out that such planning may help consumers avoid making a fiscal mistake in the present which will see them make repayments for years to come.



His comments come after research carried out by Thomas Charles, commissioned by YouGov, showed that 15 per cent of Britons are in serious debt problems, in which they owe at least 10,000 pounds via personal loans, plastic cards and other types of borrowing. Meanwhile, a quarter of consumers are set to avoid spending with credit cards during the festive season. The study also indicated that men generally are further in the red than women.



Although he reported that this time of year is often financially stressful, people are already looking to take steps in reducing their expenditure particularly through expensive methods such as credit cards. The director noted that consumers are beginning to realise that they can no longer splash out "willy nilly". Such a decrease in spending was attributed to many people's monetary standing becoming "tighter", as well as the impact of the recent credit crunch which has seen a number of lenders increase the interest rates attached to personal loans and other borrowing products as well as using stricter criteria when judging whether or not to grant consumers credit.



As a result those consumers who are concerned about their ability to manage their finances and are looking to get their spending under control ahead of the Christmas period may wish to take out a debt consolidation loan which could well leave them with more disposable income at the end of each month. However, upon receiving such a loan borrowers should look to ensure that they do not get themselves back into the red and always make repayments. Speaking on BBC One's Lunchtime News programme earlier this year, Peter Tutton from Citizens Advice warned that although most people can afford to take out loans and other types of borrowing, consumers can develop financial difficulties should they receive a demand for payment on something such as a utility bill which is larger than they had first anticipated.

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Abbi Rouse writes for All About Loans where visitors can apply online for tenant loans. We also specialise in homeowner loans, and self certification loans.

Choosing Your Credit Card

As you probably already know, there are many credit cards out there. The one you choose however, should reflect your lifestyle and your ideal spending amounts. If you are looking for the best possible deal and the best company for your credit card, you’ll obviously need to look around at what you have to choose from and what works best for you.

The first thing you’ll need to decide when choosing your credit card, is why you need one in the first place. Some people choose to get a credit card for cash flow purposes. With a credit card, you can make purchases and buy things, leaving your paycheck or other source of income in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill.

Others will choose to get a credit card and use it for instant cash purposes. This way, they can use their credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is why you want a credit card, you should look for one that has the lowest rate possible for instant cash transactions.

With a credit card, you’ll also need to think about the payments. You’ll need to decide if you want to pay the balance in full each month, or only the required amount. When you select your credit card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new credit cards and new holders. Some will offer you truly amazing deals, especially if you have good credit.

Another important area to look at when choosing your credit card is the incentives. There are several cards out there that will give you incentives, such as reward points and even cash back with purchases that you can use towards paying back what you owe. There are several incentives out there with credit cards, all you have to do is look around and compare.

The key area you’ll need to look at and compare is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the incentive period runs out. APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. The lower APR rate you get, the better off you’ll be.

Another concern with choosing your credit card is the minimum payment amount. Most minimum payment balances will start around 3%, although some can be lower while others tend to be quite a bit higher. The interest free period is a concern as well, as you will obviously want to choose the longest period that you can keep the payments down.

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. Credit cards are great to have, although they can lead to a downfall if you don’t choose them carefully. If you put some time and research into choosing your credit card, you’ll find the best one for you. As long as you take care of your credit card and pay the bill on time, you’ll help raise your credit and eventually be able to purchase even bigger things - such as a car or even a house.

You can find the best choice of credit cards and pre-paid cards at http://www.creditcards.us .