Debt Views

People in the north of England spent more in the last week before Christmas, than anywhere else in the UK, with those in the South East and Anglia spending the least, according to research carried out by Sainsbury’s Bank.

Total expenditure one week before Christmas Day in the North East, Yorkshire and Humberside was estimated at £339.84 per adult, with the South East and Anglia spending almost 36% less, shelling out only £218.50 each. The second most generous region during the festive seven day countdown was Wales and the South West who decided to splash out an average of £323.40 each, while Londoners were marginally less extravagant spending an average £322.00.

Despite the traditional view of Scots being canny with their cash, that region came in fourth in the table of seven-day Christmas spending recording an average £255.60, slightly ahead of the North West on £253.45. The Midlands, second-from-bottom in the spending league spent marginally more than the least generous region of South East and Anglia, who paid out £231.15 per adult on average.

The research also found that 1.4million people intended to spend over £1,000 during the last seven days of Christmas shopping with 4.4million more intent on spending between £500 and £1,000. There was also a huge discrepancy between the sexes with men expecting to spend 40% more than women, splashing out £325.48 on average in the seven days before Christmas compared to £231.63 spent by women.

Additionally, the research also found that festive spending this year will exceed last year’s total for the same period. Sainsbury’s research found that the nation intended to spend £11.85billion over the last seven days, as opposed to 2006′s total of £9.15billion, a staggering increase of almost 30%. Of the total spending figure around 18%, almost £2.1billion, will be put straight onto credit cards by 8.6million last minute spenders.

Despite, the statement from Sainsbury’s head of cards, Donald McLeod that: “Credit cards can be a safe and convenient way to do your Christmas shopping,” their own research identified that only six out of 10 of those putting their festive spending on credit cards will pay it off entirely by the end of January meaning that almost 3.44million Britons will be carrying their Christmas debt into February 2008. Of those, 15% believe they will clear their Christmas debt by April, 1% think it will take up to a year, and the remainder are unsure how long it will take to pay it off.

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You’ve probably heard about credit cards that offer you rebates on gasoline purchases. With the price of gas rising and falling (but always staying high!), you might be curious about these gas-rebate credit cards. Are they right for you? The answer could be yes, as long as you have realistic expectations.

Gas rebate cards can be issued by gasoline companies or credit card companies. Generally, the ones issued by credit card companies offer more flexibility, because gas station credit cards require you to use the card at specific stores in order to realize your rebate.

Gas credit cards probably won’t save you a fortune. They will save you a dollar or two each time you fill up your tank, which can add up to a couple hundred dollars at the end of the year. If you’re creative, you can save even more. When you combine a gas rebate credit card with discount club prices, or use them to purchase and reload gas station gift cards that offer their own discounts, you can greatly increase your money-saving potential.

In some ways, gas rebate credit cards are better than standard credit cards. They typically have lower interest rates (depending on your credit score), and lower standards for customer approval. These cards are great for repairing damaged credit and building a reputation for timely payments. Some even offer rebates on automobile repairs and routine car maintenance. Do your homework to find a good deal, and turn up your nose at cards that charge annual fees. You have many cards to choose from, so you can afford to be picky.

Most gas cards offer larger rebates during the first few months of use, and smaller (though not insignificant) rebates thereafter. Others have requirements about which type of gas station you must use to get the highest rebate percentage. Still others want you to use your card for purchases other than gasoline. It’s all there in the fine print, so be sure to read every word before you sign up.

You should do plenty of research on any card you’re thinking of applying for. As with other credit cards, gas card terms can vary wildly, depending on the issuer. When shopping for the right gas card, be sure to look at the fine print rather than the introductory rates on your contract. Look for web sites that rate different gas cards according to annual interest rates and total rebate value. The Citi Dividend Platinum Select card frequently gets high marks, as do the Discover Open Road and First National Bank Gas Rewards Platinum Visa – though the latter caters to card holders with high credit scores. An hour or two of research will help you find the card that best suits your needs.

Do be aware that gas rebates are not automatic. You will most likely have to request them to be issued, similar to the way you redeem reward points on other cards. Also, there are caps in place for how much you can save each year, though these caps are high enough that they wouldn’t be an issue for the average driver.

If you do decide to get a gas credit card, keep yourself current on that card’s terms and conditions. They are subject to change, sometimes without notice. Go with a reputable issuer, and get in touch with customer support if you have any questions about your card. Finally, be sure to pay off your credit card balance every month. You don’t want to sabotage your savings by paying interest on your gasoline purchases.

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Your personal credit is very important to your future even if you don’t realize it right now. Those credit card offers in the mail can be very enticing. It can be fun to go out and buy whatever you want to. The day is going to arrive though when your mailbox is full of the bills, and if you aren’t able to pay them your credit is going to be destroyed.

Limit it to essentials such as two credit cards and the loans you have to have. Do you really need a new car right now? If not, keep the one you have and put the money you would spend on a monthly payment into savings. When the time comes that you have to buy a new car you will have a nice down payment ready to offer.

Limit the amount of open accounts you have on your credit report. Do you really need a store credit card when you already have two personal credit cards in your wallet? In most cases there is no need to apply for the additional credit. It can just lead you to be tempted to access it so you are best to leave it alone. You should never be relying on credit cards to pay for your necessities. If you are, your budget needs a very close look and changes need to be implemented.

If you work hard to establish your credit, you can also call the shots with lenders. Let that car dealership know that if a 7% rate of interest is the best they will offer you then you will go somewhere else. Of course you can’t say this if you haven’t been responsible with your credit. The rate of interest is very important as part of your disposable income is going to be eaten away by it. Why give lenders more than you have to? Car loans are often five years and home loans thirty years. Over that length of time the amount of money you can save with a lower interest rate is substantial.

Make sure you have enough money in savings to cover two months of your regular expenses. This way if something unexpected happens you will be able to take care of your payments without being late or getting a bad mark on your credit. It can seem like forever when you are trying to get caught up. You also don’t want to have to rely on credit cards to pay for your essentials as the interest will eat you alive.

If you can’t make your monthly payments, you need to contact your creditors immediately. They may be able to help you find a good solution to reduce the payments or for you to get an extension due to a hardship. If you don’t contact them, they will assume you don’t care. This can result in negative information being placed on your credit rating. This can result in you not being able to get future credit that you need.

Getting personal credit is a privilege and not a right. Don’t assume that just because you need funding that someone is going to give it to you. The real world doesn’t work this way. If you aren’t prepared for handling personal credit then be responsible enough to enroll in a class. Sometimes we fall into the same financial problems as our parents as we haven’t been exposed to better ways to handle financial matters. Doing all you can to protect your personal credit is going to assure that it is there when you need it for your future.

Be very careful with predatory lending as well. There are plenty of companies and lenders that prey on those that are in need of credit. They charge them ridiculous processing fees, high interest rates, and even fees for paying off the funds that were extended to them early. Avoid getting yourself involved with these types of agencies as they are going to cost you money and maybe your good credit as well.

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