Experian Reports Rich Getting Poorer

Experian has reported a massive 100% increase in the level of borrowing amongst high income families in their 30s and 40s over the past three years, with many citing the rising cost of living as the main cause.

Over a third (33%) of high income families are now reliant on overdrafts of over£1,000 to keep the family finances ticking over between pay-days, compared to just 15% in 2008. This is according to the results of a three-year survey commissioned by Experian, the global information services company and the largest credit reference agency in the UK.

The report reveals a high proportion of these families (52%) are regularly borrowing money against their overdrafts resulting in expensive repayments because of the high rates of interest charged on overdrafts compared to other credit products.

47% of UK adults have applied for additional credit in the past two years, with some borrowing from sources which charge relatively high interest rates, potentially adding to their financial pressures and risking missed repayments and a chequered credit history.

Despite this, nearly two-thirds of high income families are actually optimistic about their financial future, with 61% believing their financial situation will improve in the next 12 months, despite dipping in to their savings and relying on their overdrafts to make ends meet.

When many are borrowing to make ends meet, Experian highlights that many people are missing out on the best rates because they’re unaware of the benefits of managing theircredit report with a service such as Credit Expert.

Brits are getting better at accessing and managing their personal information that lenders see which is inevitably resulting in them securing better borrowing rates.

Making the right decisions where borrowing is concerned is vital, and getting a goodcredit rating is one of the ways you can give yourself the best chance of finding the deals you want.

Peter Turner, Managing Director at Experian Interactive said: “UK families often rely on their overdraft to get by, but that is not always the best option. Many of us choose to borrow, but it’s where you borrow from that makes all the difference. The current financial climate is tougher than ever and seeing your credit report could help families manage their credit better, as well as helping them plan for their financial futures.”

Credit Expert from Experian shows customers what a lender sees in their name. Every time someone applies for credit or a loan, that request is recorded. Multiple requests on borrower’s credit history can look as if you are over-extending yourself or a fraud is being committed. For those looking for a good credit deal or mortgage, Credit Expert allows them to check their report instantly online to ensure that it accurately reflects their position, and then as often as they want after that. Credit Expert members can also match their credit report to credit offers they are more likely to be accepted for using Experian’s Lower My Bills service.

Via EPR Network
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Confused.com Reveals the Vehicles Most Likely to be Stolen in the UK

Confused.com has revealed the UK’s most frequently stolen vehicles and has teamed up with Michael Fraser, an ex-burglar, to help drivers keep their vehicles from being stolen.

The least stolen car, based on Confused.com’s customer data, is the Ford Ka3 with no incidences of theft among 9,070 owners between 2004-2011. The Toyota Yaris is the number one most stolen car with a 0.41% incidence of theft. This means that car thieves drive off with approximately one in every 244 Toyota Yaris’. Data looking at claims from 2004-2011 showed experts at Confused.com that after the Toyota Yaris, The Volkswagen Touareg (0.39%) (1 in 256); Volvo XC90 (0.27%) (1 in 370); Porsche 911 (0.24%) (1 in 417) and Seat Altea (0.23%) (1 in 435) are the next most stolen cars.

The least stolen cars based on Confused.com’s customer data is the Ford Ka3 followed by the Chevrolet Matiz, Suzuki Ignis, Hyundai I10 Comfort and Nissan Skyline which all have tiny theft rates of 0.02% (1 in 5000) or less.

Car insurance specialists at Confused.com have interviewed security expert and ex-burglar, Michael Fraser, to get a picture of what car owners can do to avoid losing their car to a thief. Motorists can access Michael’s tips and a Confused.com video on how to beat car thieves and keep cars safe by visiting the Confused.com website.

34 years ago, Michael stole cars himself, choosing the Ford Capri and Bedford vans due to the fact that they were relatively easy to take. Michael Fraser now advises on which vehicles thieves might target, and his advice includes a look at how new technology is affecting car theft.

Michael said: “The best way to keep your vehicle safe is to put a tracker on it, wheel locking nuts, a sticker saying the vehicle is alarmed, keep the inside tidy, keep the car locked, the windows shut and everything out of sight.”

Via EPR Network
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Homeowners Could Benefit From Latest Fixed-Rate Deals

Now could be a good time to find a new fixed-rate mortgage deal, according to financial solutions company Think Money.

With rates on many fixed-rate deals recently falling – and with uncertainty over when the base rate could rise – fixed-rate mortgages could become an increasingly attractive option for homeowners.

In July, Yorkshire Building Society cut the rate on its best five-year fixed-rate deal to a market-leading 3.49%, with an arrangement fee of £995. Borrowers who don’t want to pay this much up front can get a rate of 3.69% with a £95 arrangement fee.

According to Moneysupermarket, the best five-year fixed-rate deals before this offered rates of 3.79% (Chelsea Building Society) and 3.89% (Nationwide). Even those deals carried lower rates than many of the two-year deals available only a few months earlier.

The recent fall in the interest rates available may reflect intensifying competition between mortgage lenders, says an expert at Think Money.

“Many economists now believe we won’t see an increase in the base rate until late next year, which may have made some mortgage lenders more relaxed about offering lower interest rates. The fact that some of today’s five-year deals offer better rates than some of the two-year deals available a few months ago suggests that mortgage providers are serious about their lending.

“This could make five-year fixed-rate deals a very attractive option for many homeowners. Only a few months ago, such low rates over such a long period would have been unthinkable.

“However, it is worth remembering that tracker mortgage deals still tend to offer lower rates than fixed-rate deals at any given time – so some borrowers may prefer to go down that route instead.”

“Ultimately, the right mortgage deal depends on the borrower’s circumstances – and as such it’s often a good idea to seek advice before they make a decision.”

Lower rates mean lower monthly payments for homeowners. Furthermore, it could reduce costs for those considering borrowing more on their mortgage for other purposes, such as debt consolidation.

“Consolidating debts into a mortgage can greatly reduce the month-to-month cost of repaying those debts, because they are essentially spread over the entire duration of the mortgage. And when mortgage rates are low, this could prove to be a very cost-effective way of dealing with debt.

“However, we advise anyone considering doing this to think carefully, as it will increase the size of the borrower’s mortgage. Furthermore, taking longer to repay the debt may mean the total cost is higher in the long run, and if for any reason they can’t keep up with their payments, they may risk losing their home. But as long as the borrower is sure they can keep up, it could make very good financial sense.”

Via EPR Network
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