An enormous number of families have begun to feel the pinch of higher finance charges and greater worries about their future income. In the interest of simplicity, let us take a look back at the money we spend each month and some of the things we spend that month that amount on interest and finance charges.
It’s the most expensive meal we’ve ever had to go through.
We each make twice as much at lunch, as we do at dinner.
We eat out at restaurants in remote areas and sometimes do less, much less, as we usually put aside our money.
It can get high when we start referring to the expenditure as part of an overall national average meal expenditure.
We spend a lot in our weekly newspapers, magazines and other sources, particularly on computers and microwaves. But, with all due respect, that didn’t stop us from actually getting a credit card.
There won’t be a big paper on taxes, yet anyway, so we use our own computers. And, again, neither has the economy of sending the money we spend.
There’s a problem. Every monthly statement seems to state that any payment will be charged to our debt-based account – with all due respect – if we don’t make our repayments. And, we pay the bills on time. If on some other occasion – in Scotland, for instance – we don’t pay on time, then this debt is said to be paid to our statement.
But the credit card is great value if we can keep to ourselves, even some small expenses. The more we spend on food, the more we’ll end up in debt, with the money we’ll owe due to interest.
When we go outdoors for a weekend excursion, we usually just spend money on petrol and food, which eventually goes to the credit card. After a while there’s a bill due, so we pay it off every month, which becomes the debt-based credit-card statement.
It’s a costly arrangement to keep, but it’s the least we can do to avoid it.
We pay ourselves an annual statement, and the rest of our money is lent to other credit-cards, which add interest to the statement. This new bill we make every week means the same interest, so we pay it off each and every month for a minimum term of six months.
It’s a terrible deal if we regularly carry a monthly balance of the money coming in from the issuing company – something that costs us more every year than it does each month, but not necessarily less than we would have spent if we only used our credit-cards.
The wireless payment
Almost all of our payday money is being used for wireless payments, or sending our payments electronically through the credit-card processor.
The actual payment gets sent through the telecheck, which doesn’t use the system of an ATM or a mailboxes. It’s the payment that gets debited from our account every week, which brings in an annual fee each month.
The minimum monthly payment after all the above are paid off
That is, by far, the most costly bill-paying service available in the UK – costing us more than two million pounds at the end of September.
Some credit card providers now say this fee alone costs around 2.5%.
A survey of UK businesses by TRU has found that more than half of all UK workers will be under 50 these days. And, most estimates suggest that when your pay rises to the highest level in five years, the costs of these services will soar by 50% – leaving you at just over six million pounds a month.
If you think getting a credit card is the holy grail – unless you are the one who opens the door on holiday for someone to steal your wallet, then we advise being vigilant and having open credit cards absolutely necessary.
Debt Help – Debt Relief Tips
Before we get to your initial questions, please read all of our debt help articles. Please read the first paragraph, then the end. There are important questions here that concern the implications of having higher credit and bankruptcy rates, and how you can help prevent these effects from occurring. This article is focused on the first step in debt relief.
Below is a list of questions we should ask when debt relief has been suggested to you. Obviously, all information contained in this article is for reference purposes only. It does not constitute legal advice, and should not be taken as advice under any contract between a law firm and an attorney. You should also avoid working with anyone else legally.