Rail passengers losing out to poor advice

Train passengers are missing out on the cheapest tickets and paying more for journeys than is necessary due to poor advice from rail staff.

An undercover investigation by the consumer group Which? found that 59% of station clerks and 43% of operators on the National Rail Enquiries helpline failed to advise passengers of the cheapest options available for their journey.

Which? researchers asked staff a total of 150 questions and got similar results to the last time they carried out the study in October 2007 and September 2009.

In one of the worst examples of overcharging, a researcher was quoted £400 for two round trips between Oxford and Cardiff when the cheapest option was £112 cheaper.

Staff were tested on whether they were giving customers the chance to make savings by travelling on off-peak services, taking a slower route or buying a season pass instead of multiple tickets throughout a week.

Which? also criticised the National Rail website for failing to identify the cheapest options.

A spokesperson for train operators said the research was based on “unrealistic scenarios”.

Which? chief executive Peter Vicary-Smith said: “Train operators seem blind to the fact their ticketing systems are too complicated. If people who do this for a living can’t find the cheapest fare, what hope do passengers have? We’d like to see much clearer signposting to help passengers find the best deals, whether they’re buying tickets online, over the phone or at a station.”

A separate poll carried out by Which? found around half of passengers were not confident they were being offered the cheapest fare available and only 54% were satisfied overall with train services. Only 31% of the 1,500 rail users questioned rated value for money as excellent or good and just a quarter rated ease of understanding ticket pricing as excellent or good.

The Department for Transport spokesman said: “Train operators are obliged to sell the most appropriate through fares for their journey but it’s clear more needs to be done to ensure their customers are offered the best deals available. That’s why we have asked the Association of Train Operating Companies to put forward proposals to make ticket retailing easier for passengers and more efficient for the taxpayer.”

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Posted in: Advice,losing,passengers

Nationwide urges caution of broker advice

The Nationwide has warned homeowners to be cautious of mortgage broker’s advice to sign up to a fixed-rate deal.

Chris Rhodes, Nationwide’s product and marketing director, said that brokers who have suffered from the slump in mortgage lending over the past year have an incentive to encourage consumers to fix. Brokers earn a commission when they sign clients up to a new mortgage deal and receive a higher fee for fixed-rate products.

Thousands of mortgage holders have allowed their fixed deals to expire to take advantage of lender’s standard variable rates (SVR) which have been kept low by the Bank of England’s decision to keep the base rate at 0.5%.

Some analysts have been urging homeowners to switch to a fixed-rate deal as higher than expected inflation has made an increase in the base rate more likely.

Mr Rhodes suggested that some brokers may be churning mortgages to earn fees. Churning is where a broker will contact a customer they have previously arranged a mortgage for to sell them another product. A broker might recommend that a customer switches to a fixed-rate deal having previously sold them a standard rate product irrespective of whether this is in their best interests,

Mr Rhodes said: “No one knows where rates are going to go. It has to be down to your judgement what you decide to do. That is not to say that you don’t fix. If you are on a standard variable rate of 2.5% and you are offered a two-year fix at 4.5%, you have to comfortable paying that extra two percentage points as insurance.

“You may feel that you can afford to take the hit if rates rise – even if they rise by as much as 1.5 points, for instance. If the market was confident that the Bank of England had come to a point when the economy had stabilised and Bank Rate didn’t need to keep rising, then swap rates may fall again – and so would fixed rates.”

Swap rates, the rates at which banks borrow money on the market to fund their lending, have risen over recent weeks on the back of speculation about a possible increase in the base rate. This has fed through to the pricing of fixed-rate deals with some lenders withdrawing their cheaper products from the market.

However, Melanie Bien, of mortgage broker Private Finance, said: “Borrowers considering switching to a fixed rate should do so as soon as possible as there is every likelihood that fixed rates will rise further in the coming days. But those who are on a cheap variable rate, and who could cope with a few quarter-point rises in Bank Rate, may consider staying put for now”.

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Posted in: Advice,broker,caution,Nationwide,urges

Anyone facing unemployment should seek debt advice as soon as possible

- Thursday, 17 February 2011

Anyone who has recently lost their job has been advised to seek debt help as soon as possible to help them avoid further debt problems.

That is the recommendation of Delroy Corinaldi, external affairs director of the Consumer Credit Counselling Service (CCCS), who also stated that joblessness can add to debt worries.

He said: "Anyone who has lost their job and is worried about making ends meet should seek help as soon as possible before being tipped into the black hole of debt which can be a real struggle to get out of."

These comments were made after the Office for National Statistics revealed that unemployment in the UK increased by 44,000 in the three months ending December 2010.

It was also revealed that around one in five young people aged between 16 and 24 were out of work in this period.

The CCCS found that a quarter of people seeking debt advice in 2010 were unemployed and 11 per cent were claiming Jobseekers Allowance.

Unemployment can lead to debt problems as families affected by it tend to experience a shortfall in their income compared to their outgoings, the charity claimed.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing... Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another...

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Posted in: Advice,Anyone,facing,possible,should,unemployment

Talk Talk broadband package could be an option for those seeking debt advice

Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing.

That is because consumers can save money on their household bills by signing up to the package as it is currently being offered with a 50 per cent discount.

This means that people who sign up for the Essential package will pay just £3.49 a month for both their broadband and home phone.

As a result, Brits living with debt solutions could save money on their internet bills and use the spare cash to clear their debt problems.

Matthew Wheeler, communications expert at price comparison site uSwitch.com, commented: "The new deals are well worth considering. £3.49 a month for a broadband and calls package is exceptional value for money.

"You do have to pay line rental on top of this, which at £12.30 a month, is far from the cheapest on the market."

Despite the line rental, the company still offers one of the cheapest annual bills on the market, he added.

The rates apply to a 12 month contract.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another... Thu, 17 Feb 2011
Anyone who has recently lost their job has been advised to seek debt help as soon as possible to help them avoid further debt problems...

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Posted in: Advice,broadband,could,option,package,Seeking,those

Manual giving debt advice to students to be handed out

Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."

The All Parliamentary Party launched a campaign on January 31st to make financial education compulsory in schools, to ensure that youngsters learn how to avoid accruing debt problems in the future.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing... Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another... Thu, 17 Feb 2011
Anyone who has recently lost their job has been advised to seek debt help as soon as possible to help them avoid further debt problems...

View the original article here

Read more »

Posted in: Advice,giving,handed,Manual,Students

Unemployed should prepare for the future with debt management advice

With the future economy looking bleak for many as prices rise and job cuts are made, many vulnerable individuals are set to face crippling financial times. Whilst those who are currently employed can make adjustments to daily life to reduce financial difficulties, those who are already unemployed will need to draw up debt management plans now in preparation for the future.

With debt management advice now widely available, it is vital that the unemployed look to the future and take action now.  Those who are older will find the unstable economy even more difficult, with many having little hope of finding a job.  It is therefore paramount that individuals seek a debt management solution to ensure that, though even out of work, their debt levels will allow them to continue living in a reasonable and manageable way.

Debt management comes in many forms, from simply sitting down and organising finances, to seeking out debt management services to help bring spiralling expenses under control. Some households are able to achieve significant cuts themselves simply be reducing their luxuries and services. Meanwhile, those with large loans or credit card bills may need to seek debt management advice to find the best solutions available to them.

With the economy continuing to look unstable, and the government due to make significant budget and job cuts, those who are unemployed need to develop a debt management solution sooner rather than later. In addition, by ensuring that expenses are under control and that a firm hand is being kept on debt management, even those who are out of work can plan for the future and work their way towards a positive financial outlook.

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Posted in: Advice,future,Management,prepare,should,Unemployed

Seeking debt advice for financial stability

For most individuals who find themselves in a difficult financial position, the prospect of mounting debt is extremely concerning.  It is vital for anyone in this situation to seek debt advice as quickly as possible to avoid worsening problems.  Catching spiralling debt at an early stage can be a key step for individuals and will help debt advisors reduce the financial difficulties as quickly as possible.

For those experiencing problems, overall concern of the situation can easily cloud the judgment and it is therefore vital to seek help from debt advice experts early.  Widely available across Britain, a debt advice UK specialist is able to go through financial records with a fine toothcomb, highlighting areas where individuals can save money.  This may be through reducing day-to-day expenses and cutting back on luxuries, or moving existing debt from products such as credit cards to other, less expensive loan options.

It is important when attempting to take control of debt, to seek debt advice wherever possible.  Pressure and anxiety from spiralling finances can cause many to seek options that may not be as advisable as others.  This can actually worsen the problems, and in some cases may lead individuals to have to seek bankruptcy advice due to increasing demands for repayments.

It is also important to realise exactly when debt advice is needed, and this perhaps can be one of the hardest steps to take.  However, seeking help from debt advice UK companies as soon as possible is the first step in reducing your spending, and taking control of your finances.

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Posted in: Advice,financial,Seeking,stability

Video debt advice, an interview with Mike Morgan of ClearDebt

by Paul Gailey on February 1st, 2011

Mike Morgan is a senior debt advisor at ClearDebt, and was the first debt advisor in the UK to gain a BTEC level 3 qualification on debt resolution.

This video of Mike dates from 2009, but nonetheless contains some fine debt advice and also offers an insider’s view of the debt resolution industry.

Mike is a valued contributor to debt forums across the internet and is also available to answer questions from anyone on ClearDebt’s Community pages:

By Paul Gailey and is filed under Inside ClearDebt.
Tagged with: mike morgan.
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Posted in: Advice,ClearDebt,interview,Morgan,Video

Debt Advice in 2011 could reach all time record highs

DEMSA OFT Debt Example

Here's how a debt management plan can help you repay debt. Benefit of a Debt Management Plan

Current monthly payment: Term: 10 years (for credit card) New monthly repayment:
Term: 3 years 8 months*

I would recommend Debt Advisory Line purely on Joe’s involvement.

We aim to reduce debt in the shortest possible time. We are members of DEMSA - (The Debt Managers Standards Association). We adhere to the code of conduct as set out by DEMSA which aims to protect the interests of both consumers and lenders. The DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval Scheme (CCAS).

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Posted in: Advice,could,highs,reach,record

Debt specialist strikes out at decision to cut 900 Citizens Advice staff jobs

DEMSA OFT Debt Example

Here's how a debt management plan can help you repay debt. Benefit of a Debt Management Plan

Current monthly payment: Term: 10 years (for credit card) New monthly repayment:
Term: 3 years 8 months*

I would highly recommend anyone who feels debt is a serious problem to contact the Debt Advisory Line. I feel like a weight has been lifted from me.

We aim to reduce debt in the shortest possible time. We are members of DEMSA - (The Debt Managers Standards Association). We adhere to the code of conduct as set out by DEMSA which aims to protect the interests of both consumers and lenders. The DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval Scheme (CCAS).

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Posted in: Advice,Citizens,decision,specialist,staff,strikes