The average American is dead broke. At any given time up to 40% are living at or below the poverty level. The number of Americans who save money on a regular basis is close to a 1 percent average. Spending usually outpaces income when national statistics are taken. Some say the United States is a spendthrift nation, but the reality is that most working Americans pay thoroughly to have a comfortable or decent safe lifestyle.
Credit has become a way of life, nearly everyone who has good credit is in debt, not to mention those who have poor credit, and are often charged more in interest and fees for the luxury of purchasing on credit. We use credit and debt cards to pay for everything from a cup of coffee to a major purchase like a car.
Our savings are snatched from us on a monthly basis. It starts with the mortgage or the rent. Then continues with the car payment, the utilities the HD cable not to mention that big screen TV you just bought. It does not stop their, student loans, cell phones, insurance, clothing, food, entertainment, and if your working you must take the family on the annual vacations, which usually wipes out any savings you may have thought you had. If there’s anything left we can always find some medical bills, and birthday gifts for you to buy. Still have some change left in the bank? Good because your cousin Johnny needs to borrow $500 dollars, and your car is about to breakdown on the way to work. When you finally get to work, your wife call to inform you that the water heater is broke just like you. Funny how that works out. Then again not really.
How did we become a nation of broke people? What happened to us? Has easy access to credit brought about the demise of our economy? The number of Americans filing bankruptcy continues to rise, as does the number of people living paycheck to paycheck. The United States had the highest rate of minors living in poverty of any developed nation in 2006, according to an article published on “poverty in the United States” posted on Wikipedia. Financial advisors speculate that the number of Americans without any savings and so much debt may someday cripple our economy. The next American Revolution may be the rejection of credit, and a return to saving money.
Get Foreign Currency From UK ATMs With Your Credit Card
Following a successful six-month trial, ATM organization Link has announced that they are to increase the number of UK ATM's that dispense foreign currency. As well as giving out UK Sterling, cash points throughout the country will be adapted to allow dollars and euros to be withdrawn by holders of UK debit and credit cards. In the initial trial, travelers were enthusiastic about the ability to withdraw foreign currency without the need to make a special trip to the bank, travel agent or bureau de change. The convenience factor, rather than favorable exchange rates or commission fees seemed to be most important to travelers who took advantage of the trial machines.
Link’s Head of Planning and Development, Graham Mott, believes that the move will be welcomed by many travelers. He said: "The theory at the moment is rather than waiting until they get to the airport to get their foreign currency - as many people do, travelers will withdraw their holiday money at an ATM in the weeks leading up to their break."
Superstore giant Tesco’s finance arm have been trialling the foreign money dispensing cash points at four locations and are keen to increase that number to 20. Mott believes that upon seeing the success of the current ATMs, airports would be eager to install multi-currency machines in the future, perhaps with even more currencies than pounds, euros and dollars on offer.
However, he may have already been beaten to the punch by Raphaels Bank who has announced that they are to operate ATMs at London airports. Their ATMs are to offer 24-hour access to euros and US dollars without commission fees and at the same exchange rate as the bureau de change, giving travelers the opportunity to avoid the high charges applied to cash withdrawals by debit or credit cards from ATMs abroad. If in any doubt about the charges that will be paid when withdrawing cash abroad, travellers are advised to check with their bank or credit card company before leaving for their holiday.
The option of being able to withdraw foreign currency from UK cash machines gives credit card companies another opportunity to differentiate their products by the way that they charge the withdrawals from ATMs. Aware that many potential customers now compare credit cards based on a number of factors, not just the headline APR, this gives a unique sales opportunity for one enterprising credit card company to set themselves apart from the rest of the market. The size of charges for withdrawing currency with UK credit cards abroad has long been a sticking point with many consumers and it will be interesting to see how the credit card companies treat foreign currency withdrawals in the UK.
Link’s Head of Planning and Development, Graham Mott, believes that the move will be welcomed by many travelers. He said: "The theory at the moment is rather than waiting until they get to the airport to get their foreign currency - as many people do, travelers will withdraw their holiday money at an ATM in the weeks leading up to their break."
Superstore giant Tesco’s finance arm have been trialling the foreign money dispensing cash points at four locations and are keen to increase that number to 20. Mott believes that upon seeing the success of the current ATMs, airports would be eager to install multi-currency machines in the future, perhaps with even more currencies than pounds, euros and dollars on offer.
However, he may have already been beaten to the punch by Raphaels Bank who has announced that they are to operate ATMs at London airports. Their ATMs are to offer 24-hour access to euros and US dollars without commission fees and at the same exchange rate as the bureau de change, giving travelers the opportunity to avoid the high charges applied to cash withdrawals by debit or credit cards from ATMs abroad. If in any doubt about the charges that will be paid when withdrawing cash abroad, travellers are advised to check with their bank or credit card company before leaving for their holiday.
The option of being able to withdraw foreign currency from UK cash machines gives credit card companies another opportunity to differentiate their products by the way that they charge the withdrawals from ATMs. Aware that many potential customers now compare credit cards based on a number of factors, not just the headline APR, this gives a unique sales opportunity for one enterprising credit card company to set themselves apart from the rest of the market. The size of charges for withdrawing currency with UK credit cards abroad has long been a sticking point with many consumers and it will be interesting to see how the credit card companies treat foreign currency withdrawals in the UK.
Property Purchasing 'Getting Worse' For Graduates
An increasing number of graduates are unable to afford to take the first steps on the property ladder, new figures report.
In research carried out by Scottish Widows, some 56 per cent of those who have finished higher education are yet to buy their first property - an increase of three per cent from the same study carried out last year. Meanwhile, an estimated one in four people who graduated ten years ago are reported to not be on the housing ladder.
Statistics from the financial services provider revealed that increasing property prices were the main reason for graduates being squeezed out of the housing sector, with 70 per cent of non-homeowning graduates, an increase of six per cent from the 2006 study, citing this factor. According to the firm, the average home costs a typical graduate first-time buyer £122,045, with this figure increasing to £179,228 for those living in London.
Richard Clark, head of product development and marketing for Scottish Widows, said: “This year’s report reveals that the situation really is getting worse for graduates. The main issue is that property prices and inflation are continuing to rise, but starting salaries have not moved in line with this. First-time buyers are struggling to save for that deposit and recent interest rate rises are acting as a further deterrent. Owning a home is likely to remain a pipe dream for many.”
Meanwhile, just under a fifth (19 per cent) of respondents claimed that if they were to buy a house then would be likely to be unable to make secured loan repayments. Some nine per cent of graduates were said to believe that money owed from their student loan is stopping them from getting on the property ladder, as one in eight claim other debts accrued on the likes of personal loans and credit cards are preventing them from buying their first home. Overall, graduates were said to be in debt of some £10,361 upon leaving higher education. More than half (58 per cent) of consumers who have recently completed university believe that they do not currently earn enough money to allow them to enter the property market.
Mr Clark added that the company had witnessed a rise in popularity of 100 per cent mortgage products and those graduates looking for financial aid from their parents. Although the expert welcomed moves by the government to make property affordable for prospective first-time buyers he claimed “there is still much to be done to make the market more accessible”. His comments come after the financial services firm reported that 15 per cent of first-time buyers claimed that removing the need for a deposit would help them buy a home, with 13 per cent stating that purchasing a home would be easier if lenders consider their future earning potential rather than their current income.
Earlier this month, a study conducted by mform.co.uk revealed that 2.08 million consumers aged under 35 are looking to take out a mortgage worth at least quadruple the amount of their annual pay. The research also showed that 828,000 are willing to opt for a secured loan at four times their salary. Marketing and business development director Francis Ghiloni claimed that as house prices continue to increase those aiming to get on the property ladder “will have to take on huge debt”.
In research carried out by Scottish Widows, some 56 per cent of those who have finished higher education are yet to buy their first property - an increase of three per cent from the same study carried out last year. Meanwhile, an estimated one in four people who graduated ten years ago are reported to not be on the housing ladder.
Statistics from the financial services provider revealed that increasing property prices were the main reason for graduates being squeezed out of the housing sector, with 70 per cent of non-homeowning graduates, an increase of six per cent from the 2006 study, citing this factor. According to the firm, the average home costs a typical graduate first-time buyer £122,045, with this figure increasing to £179,228 for those living in London.
Richard Clark, head of product development and marketing for Scottish Widows, said: “This year’s report reveals that the situation really is getting worse for graduates. The main issue is that property prices and inflation are continuing to rise, but starting salaries have not moved in line with this. First-time buyers are struggling to save for that deposit and recent interest rate rises are acting as a further deterrent. Owning a home is likely to remain a pipe dream for many.”
Meanwhile, just under a fifth (19 per cent) of respondents claimed that if they were to buy a house then would be likely to be unable to make secured loan repayments. Some nine per cent of graduates were said to believe that money owed from their student loan is stopping them from getting on the property ladder, as one in eight claim other debts accrued on the likes of personal loans and credit cards are preventing them from buying their first home. Overall, graduates were said to be in debt of some £10,361 upon leaving higher education. More than half (58 per cent) of consumers who have recently completed university believe that they do not currently earn enough money to allow them to enter the property market.
Mr Clark added that the company had witnessed a rise in popularity of 100 per cent mortgage products and those graduates looking for financial aid from their parents. Although the expert welcomed moves by the government to make property affordable for prospective first-time buyers he claimed “there is still much to be done to make the market more accessible”. His comments come after the financial services firm reported that 15 per cent of first-time buyers claimed that removing the need for a deposit would help them buy a home, with 13 per cent stating that purchasing a home would be easier if lenders consider their future earning potential rather than their current income.
Earlier this month, a study conducted by mform.co.uk revealed that 2.08 million consumers aged under 35 are looking to take out a mortgage worth at least quadruple the amount of their annual pay. The research also showed that 828,000 are willing to opt for a secured loan at four times their salary. Marketing and business development director Francis Ghiloni claimed that as house prices continue to increase those aiming to get on the property ladder “will have to take on huge debt”.
Consumers Advise to Plan Christmas Spending
Although it is still five months away, Britons are being warned that failing to plan their spending over the Christmas period could impact upon their personal financial situation.
In research carried out by Britannia, just under half of the adult population (47 per cent) are said to not be saving money specifically for the festive season, despite predictions among the public that it will set them back by an average of £620.
The study also indicated that just over a third (37 per cent) of respondents plan to make use of some form of borrowing to cover the cost of the festivities, with some four per cent claiming that it will take them at least 11 months to clear off such debts. However, those households with children are predicted to face even further pressure on their finances at that time of year as they look towards an expenditure of £840 over the period. Furthermore, some 36 per cent of parents claim to be not putting any money aside for Christmas. As a result the financial services firm suggested that consumers should start saving an average of £124 per month from now to Christmas to help avoid starting the new year by owing money on personal loans and credit cards.
Neville Richardson, group chief executive for Britannia, said: "This survey shows that the majority of people are not planning for their Christmas expenditure, even though they have a good idea of how much it is likely to cost. However, it is still not too late to start saving for Christmas right now and those who do can really reap the benefits of being organised with their finances by adding pounds in interest to their own contributions."
Those who only make the minimum repayments on their credit card spending over the festive period can take more than 16 years to complete making their repayments, the firm observes, as about £740 alone is spent servicing interest accrued. However, Britannia suggested that the five per cent of respondents who plan on spending at least £2,000 this Christmas could face increased struggle paying back money owed on loans and cards if they choose to fund their expenditure via borrowing.
Figures from the financial services provider also revealed that men spend more money than women during the festive season. While males account for an average expenditure of £710, the opposite sex was reported to shell out £537. However, females were indicated as being better savers as 11 per cent put money aside for Christmas, in comparison to seven per cent of men.
Last month, uSwitch warned that those consumers who choose to supplement their spending via credit cards instead of cheap personal loans and consequently only make minimum monthly payments could find themselves privy to a "debt sentence". Mike Naylor, personal finance expert for the price comparison website, warned that with credit card providers currently setting the lowest-possible repayments at two per cent, borrowers could finish paying back money owed via secured loans before clearing off debts accrued on their cards if they continue to pay the minimum amount.
In research carried out by Britannia, just under half of the adult population (47 per cent) are said to not be saving money specifically for the festive season, despite predictions among the public that it will set them back by an average of £620.
The study also indicated that just over a third (37 per cent) of respondents plan to make use of some form of borrowing to cover the cost of the festivities, with some four per cent claiming that it will take them at least 11 months to clear off such debts. However, those households with children are predicted to face even further pressure on their finances at that time of year as they look towards an expenditure of £840 over the period. Furthermore, some 36 per cent of parents claim to be not putting any money aside for Christmas. As a result the financial services firm suggested that consumers should start saving an average of £124 per month from now to Christmas to help avoid starting the new year by owing money on personal loans and credit cards.
Neville Richardson, group chief executive for Britannia, said: "This survey shows that the majority of people are not planning for their Christmas expenditure, even though they have a good idea of how much it is likely to cost. However, it is still not too late to start saving for Christmas right now and those who do can really reap the benefits of being organised with their finances by adding pounds in interest to their own contributions."
Those who only make the minimum repayments on their credit card spending over the festive period can take more than 16 years to complete making their repayments, the firm observes, as about £740 alone is spent servicing interest accrued. However, Britannia suggested that the five per cent of respondents who plan on spending at least £2,000 this Christmas could face increased struggle paying back money owed on loans and cards if they choose to fund their expenditure via borrowing.
Figures from the financial services provider also revealed that men spend more money than women during the festive season. While males account for an average expenditure of £710, the opposite sex was reported to shell out £537. However, females were indicated as being better savers as 11 per cent put money aside for Christmas, in comparison to seven per cent of men.
Last month, uSwitch warned that those consumers who choose to supplement their spending via credit cards instead of cheap personal loans and consequently only make minimum monthly payments could find themselves privy to a "debt sentence". Mike Naylor, personal finance expert for the price comparison website, warned that with credit card providers currently setting the lowest-possible repayments at two per cent, borrowers could finish paying back money owed via secured loans before clearing off debts accrued on their cards if they continue to pay the minimum amount.
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