Credit Card Purgatory - A 7 Step Comprehensive Plan to Get and Stay out of Credit Card Hell

Does this Sound like You? There are 100 shopping Days left until Christmastide and your Credit Card Balance is Higher now then it was in the beginning of the year. You may have got thought of using your home and getting a debt consolidation loan, A Debt Consolidation Loan without a solid Long Term financial program is a Recipe for Disaster. A One manner ticket to Credit Card Purgatory

The Debt Consolidation Loan

Most credit cards necessitate a Minimum Monthly payment of 3% to 5% of the Outstanding Balance. On a 10,000 Balance that is $300 to $500 Monthly. On a $20,000 Balance that is $600 - $1,000 Monthly. The Interest on your Credit card payments would not be Tax Deductible,

If you Refinance your House and Consolidate your Bills even at an interest rate of 6% you would only pay $60 a Calendar Calendar Calendar Month for $10,000 or $120 a Month for $20,000 (For many homeowners this would be tax deductible)Your Monthly Savings will be between $240 and $880 a Month. The Key to a Good Financial program is to utilize this extra $240 to $880 a Calendar Month to construct a Failsafe, your Economic Life Preserver. (If you don't ain a home and still have got got fairly nice credit you might be able to get a signature loan from your bank Oregon credit union.)

If you currently have a mortgage paymet based on an interest rate of 3% or Higher you may desire to look at refinancing your House using a Loan where the payments are fixed for 5 Old Age based on a 1.95% interest rate. On a 200,000 Loan this tin often intend an further $400 a calendar month or more than in savings.

Let's Assume you salvage $700 a Calendar Month with a Combination of the above 2 Methods.

1 - Emergency Savings

You would desire to maintain at least 2 Months worth of Bills (3 Months would be Better) in a Savings or Money Market Account. Bills would include Rent or Mortgage, Utilities, Medicine, Food and Insurance Premiums. You need to do this account a Priority. Topographic Point at least $300 a Calendar Month into this account until you have got reached your Goal of 2 Months Worth of Bills or $5,000 whichever is Higher. After you Range Your Goal Continue to put $50 - $100 in this Account until you have got reached Double your Goal. (4 Months worth of Bills or $10,000 whichever is higher) Once you have got got reached Double your Goal you no longer need to put money in this account.

Some People will just Borrow an Extra $5,000 and topographic point it directly in there Emergency Account.

2 - The Debit Card

After you have established your Emergency Savings you will desire to set up a Debit Card Account. Open a Bank account and get a Debit Card. Deposit $100 or More Monthly into this account until your balance attains $1500. Now If you have got an Emergency car Repair, Home Repair, Dr Bill or any other type of unexpected disbursal usage your Debit card rather then a Credit card. Your Goal should be to keep this account at $1,500 to $3,000

3 - The Credit Card

Most people don't need to rake up all there credit cards they just need to manage them better. Cancel all but 1 or 2 of your credit card accounts. Credit Cards are an Important Part of Life, An unexpected car repair or Dr. Bill can be handled very easily with a credit card (If you don't have got adequate money in your debit entry card account). With the exclusion of an Emergency never charge more in any calendar month then you can Pay in full when the measure comes. Wage off all new Charges in full within a hebdomad of getting the Bill.

4 - Insurance Needs

Insurance needs would be things like Life insurance, Health Insurance and Long Term Care Insurance. Contact an Insurance professional to discourse your needs. If you don't have got got any Life or wellness insurance expression into low cost options like term Life and Discount wellness care until you have extra finances to travel for the higher cost options (After your emergency account is established) Life insurance can often be combined with retirement planning see measure 5.

5 - Retirement Savings

Use at least one-half your nest egg from your measure solace loan to fund an individual retirement account for you and your Spouse. Talk with your Accountant to see your individual retirement account Support Limits. In 2005 people who measure up could put up to $4,000 a Year into an individual retirement account or Philip Roth IRA. People over 50 who measure up can put up to $4,500 in an individual retirement account or Philip Roth IRA. For more than information and form out regulations you can see the Internal Revenue Service publication here http://www.irs.gov/publications/p590/. If you don't measure up for an individual retirement account or you already have got got it funded expression into other options like Universal Life and annuities.

6 - Some Girls (or Guys) Just Need to Have Fun

Everyone Needs and Enjoys to have a good time. Don't get so hung up on getting that emergency monetary fund or edifice a retirement nest egg that you don't have got fun. Budget something merriment a few modern times monthly. Movies, Bowling, The Menagerie a trip to the H2O park, a Nice dinner whatever it is. Even if it is only $10 or $20 a Calendar Month in the beginning when things are tight. You can always add $50 a calendar month for a holiday monetary fund later.

7 - The Budget Review

Once or twice a twelvemonth reappraisal your budget. See how your Emergency and Retirement finances are doing. Look over your credit cards and do certain you are paying those measures in full.

If your state of affairs changes for better or worse. You would desire to make a review. Things that may trigger a review. A Wage addition or Decrease. An Added Expense like a Car Payment. A Major change to an expense, Much higher Gas Bill or Mortgage. Car Payment is Paid in Full. A kid starting college or private school.

By combining a Bill Consolidation loan with the above 7 Measure Financial program you are taking the required actions to assist see you won't happen yourself in credit card Perdition Again.

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit Counseling Service?

Are you in a "debt hell"? If you are unsure, inquire yourself these questions:

Do you have got measure aggregators calling you and home and at work, leaving bothersome messages?

Are you afraid to open up the door in the morning time because you are afraid that the Sheriff's office have left a tribunal dainty for you?

When the phone rings, make you get butterflies in your stomach?

If you answer the phone and it's a measure collector, when they inquire for you, make you reply "He/She's not in right now", or even just pick up the phone and then hang it up without saying who is on the other end?

Do you travel for years on end without checking the mail because there are lone measures there?

When you finally make get the mail, make you just throw it in some random location for hebdomads or even calendar months without ever opening it?

Are you paying one credit card company's measure with another credit card?

Are your credit cards riddled with over the credit bounds and late fees?

Do you only have high interest credit card offers?

Have you applied for credit cards or car loans and been told that you had been denied because of bad credit?

Does your credit report show a batch of late payments, charge-offs, bad debt, 30 60 90 or 120 years late entries listed?

Does filing bankruptcy look like your only manner out?
If you related to at least two of those items, opportunities are you would profit from a consumer credit counseling service.

Believe me, I cognize what you are going through. I was in this situation. I had recently moved from a large metropolitan country with nice pay, to a smaller country where the cost of life was almost just as high, and had to take almost a $20K paycut. On top of that, I just had a babe and was a single-mom to boot.

I had to “live”, and with a $20K cut, it didn’t leave of absence me with a pick (or so I thought) other than to not pay measures and get the things I needed (baby formula, diapers, etc.). Let me state you, I was depressed. I didn’t unfastened my measures for calendar months at a time. The phone would peal every morning time staring from 8 am and continued until 9 Prime Minister at night. Bill aggregators would name me at work and go forth messages with their “800” numbers with co-workers if I wasn’t there. It was so embarrassing. I went on like this for about a twelvemonth before I finally decided to happen that I had to make something.

I had seen advertisements on television for debt consolidation and consumer credit counsellor services “CCCS” offering freedom from financial concerns and the chance to derive your life and self-respect back, but for some reason, didn’t take the plunge. One twenty-four hours I was talking with a friend and they told me how they had joined Consumer Credit Counseling Services (CCCS) and they were very relieved and financially emphasize free. CCCS was able to reach all of the creditors that they had credit card balances with and was able to either reduce their credit card interest to interest rates that were one figure and in some cases down to 0% interest! Consumer Credit Counseling Services was also able to eliminate most of their late fees and over the credit bounds fees so that when they made payments, it went directly to their credit card balances and helped them pay it off their debt quicker.

All of this information was exciting and sounded very promising to me, and now I had person that I knew telling me how it worked for them, so it became much more than realistic. I searched the yellow pages for the credit counseling agencies and the establish my local subdivision of Consumer Credit Counseling Services. I called them up, made an appointment and went in. I was assigned a counsellor and met with her for about an hour. When I walked out, I had a huge sense of relief. I was apparatus with a program of action for how my debt was going to be blasted away. I was assured that the bothersome and harassing debt aggregation phone phone calls were going to cease. I was only going to have got to concern myself with making one payment to my local CCCS office, and they would take care of the fuss of sending all of the credit card payments out to my other creditors. In two years, I was going to be debt free.

If you are in a similar situation, I urge you to look into consumer credit counseling services. They can get you back on track, reduce your stress, better life for you and your household and change your life overall for the better.

Keeping Your Mortgage Interest to a Minimum

When it comes to buying a home and taking out a mortgage, the fact is that the interest you pay will likely be your biggest expense. The interest on a mortgage can be quite significant, especially when looked at over a 15 or 30 year period. All that interest can really add up, and is important to keep your interest rate as low as possible.

One obvious way to keep your interest expense as low as possible is to get the lowest interest rate you can. This may be obvious, but it is easier said than done. Banks typically reserve their lowest interest rates for those with the very best credit scores and credit histories, and it is important to understand what goes into your credit score.

Obviously things like missed payments or late payments will have a significant negative effect on your credit score, but there are other things you may not have thought of. Before applying for a loan, many people close credit card accounts they are not using. While this may seem like a good strategy, in reality it can be counterproductive.

That is because a large part of your credit score consists of the age of your credit accounts, so closing long standing credit accounts could make you look like a newer, and riskier, borrower.

Another important way to keep your interest expenses as low as possible is to make as large a down payment as you can. There are many reasons to make a large down payment, even if it is a struggle to come up with the money you need. For one thing, a higher down payment will mean a lower monthly mortgage payment, and that will make it easier to make ends meet down the road.

For another thing, a higher down payment may qualify you for a more favorable mortgage, and a lower interest rate. Since even a small difference in the interest rate can have a significant effect on your mortgage expense, it can mean a significant savings for you.

Another reason for making at least a 20% down payment on the home you buy is to avoid buying the costly and unnecessary private mortgage insurance. This type of insurance is designed to protect the lender in case of a default on the mortgage, and it is typically required if the down payment is less than 20%.

Using these strategies to keep interest rates and interest expenses low is a good way to get the home you have always wanted at a price you can afford.

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FICO Scores: Are They So Important for Getting a Mortgage?

During the last few decades, we moved many modern times from topographic point to place, buying and merchandising houses and other property. To my knowledge, not even the most respectable bank that carried our mortgage ever had anything to make with any FICO score. I first heard “FICO score” mentioned, about six or seven old age ago, when one of my children worked for a mortgage company, and I establish out from him that FICO score have been around since the 1950s, after Fair, Isaac and Co. (therefore the acronym FICO) developed a certain method to determine the credit hazards of borrowers.

FICO scores range from 300 to 850, the higher the better. The bulk of scores are in the degrees of 600-700. The desirable 1s are 720 and higher. FICO scores are designed to mensurate the hazard of delinquency by considering respective past times and present issues, such as as the length of credit history, promptness of payment, current debt including tax liens and money owed as a consequence of a tribunal judgment, recent searches by the consumer to obtain credit, and the amount of credit received up to date. The exact expression for obtaining the FICO scores, however, is held secret and--it beats out me, but--this behavior is accepted by the Federal Soldier Trade Commission.

Three nationwide companies, Experian, Equifax, and TransUnion, usage the FICO scores for credit reporting. All three of these companies are required by law to supply the consumer—you—with A free credit report every twelve months.

You might ask: “If we have got got the FICO scores, then why make we have a credit report? Aren’t FICO scores enough?” Type A credit report is more than than a FICO score. A credit report gives extra information on you, as to where you dwell and have got lived, whether you had a run-in with the law, and if you were sued or filed for bankruptcy. The FICO score, as a general rule, is attached to the end of a credit report.

Your credit report is important. The information in it have to be up to day of the month and correct, because it will be used not only for the purchases you make, but also when you are applying for a job. You need to get your credit score and take measurements if the information in it is not rectify or have go stale. Consumer reporting companies are required by law to rectify anything incorrect or inconsistent after they look into your claims.

To obtain your free credit report, you might see authorship to each 1 of the three companies (Experian, Equifax, and TransUnion) and getting a separate credit report from each one. Don’t be surprised if you happen small differences among these reports because each company makes its ain calculating in its ain way. Getting all three reports is especially necessary if you happen something inconsistent in your credit history and you need to rectify it with all three of them.

If you experience your credit history is good, the best manner to get your free credit report is getting a word form from Annual Credit Report Request Service (http://ftc.gov/credit), and filling and sending it to P.O. Box 105281, Atlanta, gallium 30348-5281; or if you wish, you can get it online from annualcreditreport.com.

Do not, at any time, believe in the companies or online land sites that promise to get you your free credit report. Most of them eventually inquire for fees and start charging your credit cards, because you have got got accepted their services and they have your information in their hands.

Does every lender wage attention to the FICO score? Luckily, not all; although most may. Inch the beginning, FICO scores had small or nil to make with mortgage lending. About five or six old age ago, however, mortgage lenders realized that there was a certain connexion between the negligent behaviours of borrowers and their credit scores.

After a couple of old age of heavily relying on the FICO scores, mortgage companies are beginning to change their attitudes on the topic again. Lenders like Fannie Mae and some private mortgage companies make their ain probes as well as taking into account your credit report as a whole.

A few tips before applying for a mortgage:

* Bash not go forth or change your job, especially if you have got worked there for some clip and you are not replacing it with a more than secure and better paying job.

* Brand certain your credit cards are not charged to the max.

* Bash not ever be late in paying your existent mortgage. At least, don’t be late for more than than a month.

* Discuss and deal with small lenders (Dept. Stores etc.), businesses, and aggregation agencies to take any late payments.

* If you have got a federal student loan, seek to take “default” Oregon “collection” labels from the loan’s history.

* Get into the wont of paying your measures on time.

New Business Credit Card - Managing Cash Flow With A Business Credit Card

A business credit card can assist you manage your company’s finances more efficiently. With a line of credit, you can manage cash flow issues, maintain path of expenses, and measure up for deals and discounts.

Manage Cash Flow

Cash flow is always an issue with businesses. Bills are owed while you are waiting for accounts to be paid. A business credit card can assist you get through these short-term issues without having to take out a line of credit.

For small business, a credit card is often the first type of credit available to you. For exclusive proprietorships, your personal credit record will determine your credit limit. For other types of ownership, you will need to provide a business program and financial statements.

Keep Path Of Expenses

Having a separate credit card for your business can assist you maintain better track of your expenses. Some credit card companies offer disbursement reports to assist you place disbursement habits. You can also look at your statement online.

Not only will a separate account aid with accounting, it will also look better to the IRS. The authorities looks suspiciously when business and personal accounts are lumped together. Separate accounts are easier to track, especially of import when you are declaring disbursals on your tax return.

You can also petition further cards for employees. These company cards can have got day-to-day disbursement limits, to protect your company from fraud. With online statements, you can see ticker activity on your account. You cognize what was spent, even if your employee forgot to turn in a receipt.

Qualify For Deals And Discounts

Business credit cards can also measure up you for particular deals and discounts, just like with a personal account. You may take a programme that offers airline miles or reward points. To happen the lowest interest rate though, stick with a apparent account that have no fees.

To happen the best deals, compare respective programs. While your letter box may be full of offers, searching online will probably give better results. Be certain to read the happen black and white for information on APR and other terms. By determination the right card, you will have got a better manage on your cash flow issues.

To see our listing of most suggested business credit card companies online, visit this
page: Recommended Business Credit
Card Lenders Online.

Cash Advance Credit Cards

Cash advance credit cards have got been developed to assist people who happen themselves in need of quick loans from clip to time, but don't desire to pay the extortionate interest rates and fees that credit cards charge for cash withdrawals. In simple terms, cash advance credit cards, are like pre-approved payday loans that are accessible by withdrawing from an standard atmosphere or payday loan location.

If you have got ever used a payday loan establishment, you cognize the how easy it is to obtain a fast, two-week loan, even if your credit is less than perfect. If you've got a steady job, an constituted checking account and verifiable contact information, you are usually in. A cash advance credit card combines this easiness with the safety and convenience of a credit card. Visit easy-approval-credit-cards.com to learn more than about cash advance credit cards. Here is how it works. You travel through the usual procedure of obtaining a payday loan and are approved. But instead of receiving your loan immediately, you are issued a card that allows you retreat cash up to your sanctioned amount. You can utilize this any time, and your countdown to your loan repayment day of the month makes not begin until you actually take the cash out. This offers a couple of advantages to the consumer. In the first place, you have got the peace of head of knowing you've got a cash loan ready for you when you need it, without actually having the cash in your hand. Secondly, because this is a single, short term loan the rates are lower than a typical credit card cash advance, which usually have got high fees and particular terms. Brand your life easier with a cash advance credit card today! -------------------------
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Debt and Financial Optimism in the UK Continue

With £1.3 trillion lbs worth of debt in the UK, Scotland’s Citizens Advice Bureau have got got welcomed a new Bill to modulate lenders and protect borrowers from creating un-repayable flats of personal debt.

Chief executive director Kaliani Lyle said: "For years, Citizens Advice Bureaux have been dealing with lawsuit after lawsuit of ordinary people who have been enticed into unsustainable debt.”

"The existent statute law - the 1974 Consumer Credit Act - is simply too antediluvian to deal with the detonation in aggressively marketed credit that have taken topographic point over the past decennary or so.”

The Consumer Credit Act is put up to outlaw “extortionate” interest rates, however it have proved to be uneffective as it doesn’t actually define what is regarded as extortionate.

This cooccurs with an probe being carried out by banking watchdogs, into suspected mis-selling of personal loans and credit cards at bank subdivision levels. Following on from the BBC’s Real Number Narrative programme which revealed banks are offering large staff bonuses to encourage sales of expensive loans, credit cards and other financial products. Staff at Lloyds TSB were shown to have got encouraged clients to accept sums of money of money they could not afford to repay.

"Which?" said it believed it was clip the industry had a proper argument over sales inducement structures.

The BBC also criticised the expensive cost of the bank’s payment protection insurance and how credit cards were pushed onto customers.

Graeme Millar, of the Scots Consumer Council, said: “Consumers themselves need to move responsibly and guarantee they are not asking for money they cannot afford to repay."

Tougher codifications of pattern imposing stricter criteria on the manner merchandises are sold, and the usage of financial information qualified financial advisors and from comparison web land sites like Moneynet can assist to derive consumers the best deals, and reduce the hazards of mis-selling.

Independent financial adviser, Alan Sir Richrd Steele commented, “Debt have always been a problem for a minority of people. One of the current problems is the willingness of bank managers to manus out loans and credit cards, which intends this minority have increased, but the bulk are coping with their debt.”

It stays to be seen whether the nation’s optimistic mood, recently reflected in a Mori study carried out for the Prudential, in its ability to get by with degrees of personal debt is long or short term. The report showed consumers are still failing to save, with one in five people saying they had no programs to increase the amount they set away.

Jackie Ronson, of the Prudential, said that many people are viewing their disposable income as decreasing, and yet they are happy to keep their current degree of debt, "add to that the continued concern about pensions in the UK, and we are looking at people who are likely to seriously fight in retirement."

Additional Resources
The Scotsman
BBC

Tips for Choosing a Credit Card Company

Credit Cards are indispensable for any consumer today. However, when choosing a new credit card company, many people make not cognize what to look for. It is of import to have got a good company because bad credit card companies can lead users into quite a spot of trouble. Whether you are a college student getting your first credit card, or person looking to switch, choosing the company and type is very important. These few tips should assist do your determination easier.

1. Wage attention to interest rates. In truth, all credit card interest rates are ridiculous. However, it is always a good thought to take the best interest rate for your needs. If you believe you may have got the possible to lose a payment or two, then a lower interest rate will accommodate your needs better than a higher interest rates. If you are completely confident in your ability to pay credit card debts off immediately, than interest rates should not be a problem. Always expression for the median value interest rate. Credit card companies offering extremely low interest rates may have got other concealed charges. Extremely high interest rates are simply nonsensical.

2. The type of credit card must also be taken into account. Different credit card types have got different offers. Major cards like American Express, Visa, Master Card, and Discover all have got their positive and negative elements. Along with the type come ups the credit card plan. Some credit cards are designed for college students, and have got particular bonuses for grades. Other credit cards offer reward points for shopping at a certain store. Always travel for the credit card publicity that tantrums you best. If you eat frequently at a certain restaurant, then maybe a credit card offering reward points for that eating house is a good idea.

3. Keep in head the bank associated with the credit card, and the credit card company’s policies on security. Identity theft is a large issue and goes on to increase. Be certain that your bank have specific security programs to maintain your personal information safe. In the event of credit card fraud, it is always good to have got a company with great identity theft policies. Some credit card companies will work tirelessly to rectify the identity theft problem and clear your name. Other companies may not be so eager to give up their clip and money to protect your credit status.

4. Lastly, maintain in head some fast ones credit card carriers may employ. Some banks will attempt to destabilise person with good credit by sending their measures at different times. Other credit card companies will offer great rewards, but have got hidden fees and high interest rates. It is always good to see a company’s policy on late payment. Some companies will take advantage of a late payment by raising interest rates drastically and severely injuring your credit. Never be afraid to read the mulct black and white of any credit card agreement, because you might happen something that you don’t hold with.

Getting a new credit card can be scary. Credit is a large deal because it orders what you are able to borrow and make financially. However, with careful planning and decision-making, you will surely get a credit card that is deserving having.

Keep Your Eye Focused On Treasury Bond Rates To Adjust Your Current Mortgage Rates

Mortgage rates typically are based off the current rates of treasury bonds. Most lenders set their long term mortgage rates in line with 10 and 30-year treasury rates. The reason that they do this is quite simple. Treasury rates are the rates that are used as an index to represent what the future value of money will be by the secondary market and investors. The Federal Reserve Bank will issue these bonds along with an interest rate that it will pay to holder of the bond once it matures. The market, in reflecting economic and inflationary predictions, adjusts the yields. Mortgage rates are then set according to the yields. If the market expects that thing in the future are going to be good with low inflation then the mortgage rates will be lower. If the market forecasts higher inflation then the mortgage interest rates will also rise.

This is something that is very important to look upon by consumers because it will directly affect their bank account. In most cases, a home is the single largest purchase that someone will make in their lifetime. Home loans are usually very high in their term, sometimes as long as 30 years. The amount of interest paid over the the life of the loan can be staggering even for lower cost homes. For example, if you finance a $100,000 home for a term of 30 years at an 8% interest rate, the amount of money you will spend on interest alone will be $164,153.60 giving you a monthly payment of $733.76. If you could lower the interest on your mortgage by just 1% you would save $24,645.60 over the term of the loan and would pay $665.30 saving you $68.46 each month. As mortgage rates rise you want to lock in your interest rate to protect you against future increases however if the rates are falling then you may consider refinancing to save you more money.

Some people ask when is the best time to refinance your home because there is a cost to refinancing. Typical costs include appraisal fees, document preparation fees and up front points to pay. It is not always in your best interest to refinance for small rate changes. So the question is how much more will the market continue to move lower and what would be the best time to consider refinancing? This goes back to keeping an eye on treasury bond rates. When you see long term treasury bond rates start to take a dive after long periods of being high then it’s time to get focused on the current mortgage rates. Once the stop diving then you may consider refinancing to lock in a better rate for your mortgage allowing you to put more money back in to your pocket!

Alliance Turning Towards the Financial Dark Side

Following in the footsteps of many of its high street competitors, Alliance and Leicester has announced that it will no longer accept new customers onto its Online Saver and Direct ISA accounts. The interest rate for the Online Savers account is also being cut from 5.35% to a straight 5%.

Richard Brown of the financial comparison website Moneynet believes that Alliance and Leicester (A&L), in common with its high street competitors, has seen its costs rise as a result of recent rule changes covering things like the way mortgages and general insurance are policed. He added, “Unfortunately it’s the consumer who shoulders much of this additional burden”

It seems to many of their loyal customers that A&L is indeed determined to make their customers pay in an effort to purge costs and boost their profits. These cuts are only the latest of a series of changes that A&L have made during recent months. First to go was the cashback scheme on their Moneyback credit card. The Moneyfacts financial data website pointed out in February, that A&L had increased the APR on their credit cards for all purchases up to 16.9%; as well as increasing penalty fees, and introducing punitive new clauses to current accounts. Other charges have been introduced to their mortgage products, balance transfer fees on credit cards, reductions in children’s savings accounts, whilst The Guardian has revealed some suspect changes that have been implemented to their systems to increase the number of customers who breach their overdraft agreements, triggering penalty charges.

A&L has said that there is no hidden agenda, and that it still leads the way compared with its banking rivals.

A&L however, are not the only financial group to be feeling the pinch. Barclays, HBOS and Royal Bank of Scotland have all warned about credit arrears. An announcement concerning job losses at Scottish Widows, came alongside admissions from their owners LLOYDS TSB that there was, “An increase in the number of customers experiencing repayment difficulties” with their credit card debts and unsecured personal loans. According to Lloyds' Chief Executive, Eric Daniels, we are currently experiencing, "a slowing consumer environment".

Recent announcements by the Treasury delivered the worst monthly public borrowing figures since records began in 1993, re-igniting fears over a possible rise in taxes.

Consumers are reducing the amount they borrow on credit cards and analysts predict mortgage lending in the UK will plummet by 10 per cent over the next three years, as the out of control growth in house prices finally stalls.

Independent market analyst Datamonitor claims, lenders who have been enjoying a boom in recent years, will struggle to maintain the momentum and be forced to work harder to secure market share.

Investor Connections, a group of independent financial advisers, has called for an accurate assessment of the UK's current economic position, after statistics showed the three main asset classes, shares, bonds and property are all experiencing downward trends.

This downturn should spell good news for borrowers and homeowners, as the mortgage and credit industries fight for customers and sharpen up on their competitiveness; however the evidence of Lloyds TSB’s actions seems to belie this. With HBOS forced to criticise the other credit card companies for failing to provide customers with adequate product information, despite repeated requests to do so from consumer lobby groups and watchdogs on the Treasury Select Committee, it looks like the majority of finance companies are currently out to protect themselves and their share-holders, with little regard for their customers.

At a time when UK consumers are proportionately saving less than half of what they were 25 years ago, you might be forgiven for thinking that competition in the banking world would be becoming increasingly cut-throat in order to gain customers’ business, but it seems that the big institutions are instead looking to go down the route of cost reduction to protect their profits. There are savings are out there to be made, but they are savings in costs to be made by the finance companies, at the expense of the consumer, rather than beneficial savings for the customer.