Latest news with #StepChange
Yahoo
17-07-2025
- Business
- Yahoo
Ways to avoid buy now, pay later problems highlighted by charity
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority, with proposals outlined by the regulator on Friday for the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls: 1. Pause at the checkout, and ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. 2. Make sure you know which type of service you are using, and what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. 3. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. 4. If you do start to struggle, get advice right away. If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
17-07-2025
- Business
- The Independent
Ways to avoid buy now, pay later problems highlighted by charity
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority, with proposals outlined by the regulator on Friday for the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls: 1. Pause at the checkout, and ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. 2. Make sure you know which type of service you are using, and what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. 3. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. 4. If you do start to struggle, get advice right away. If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path.
The Independent
17-07-2025
- Business
- The Independent
Experts reveal four buy now pay later tips to prevent shoppers getting into debt
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority (FCA). On Friday, proposals from the regulator will outline the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls. Pause at the checkout Ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. Understand which type of service you are using It is also important to know what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. If you do start to struggle, get advice right away If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path. Buy now, pay later providers will have to check that people can afford to repay their loans and offer support if they get into financial difficulty under a consultation put forward by the Financial Conduct Authority (FCA). Borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong. The new oversight by the FCA would mean that BNPL borrowers will have key protections that already exist for other types of lending. Sarah Pritchard, deputy chief executive at the FCA, said: 'We have long called for BNPL products to be brought into our remit, so people can benefit from BNPL while being protected. 'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access to the right information to make informed decisions. 'We're mainly relying on existing requirements, including the Consumer Duty, rather than proposing to make lots of new rules, supporting growth and allowing firms to innovate.'
Daily Record
09-07-2025
- Business
- Daily Record
Debt charity shares essential tips for parents worried about money during summer holidays
StepChange offers help and advice to people struggling with debt, so don't put off seeking support this summer. How to apply for Tax-Free Childcare and 30 hours childcare A New YouGov poll has revealed the financial pressures facing parents over the school holidays this summer. According to the research commissioned by StepChange Debt Charity, one in three (33%) parents with at least one child under 18 have no savings for a rainy day, this compares to under one in four (23%) UK adults. The study found that one in six (16%) parents with at least one child under 18 have used a credit card to pay for essential household bills in the last three months, compared to one in ten (10%) UK adults. It also indicated that one in four (23%) of parents with at least one child under 18 have used credit, loans or an overdraft to make it through to payday, almost double compared to all UK adults (12%). Almost half of StepChange's clients are parents with dependent children, and the charity knows first-hand how cost of living and debt pressures can be felt by parents more acutely. Tips to help manage your money this summer StepChange has shared its top tips for parents worried about their finances this summer, on how to avoid debt problems and have fun with family over summer with a tight budget. Plan your summer budget: It might sound simple but having a detailed budget can help to keep track of your finances and how much disposable income you have to go toward activities, food, any planned holidays and other costs. StepChange has some useful budget templates on its website. If your child is eligible for free-school meals, you should check what your local council has on offer as part of the holiday activities and food programme, which provides healthy meals, enriching activities, and free childcare places to children from low-income families. Many large supermarkets offer 'kids eat free' or for £1 deals, which is worth checking out at your local supermarket. Check out what's on offer from your local library: There are often lots of free or cheap activities on offer - including the Summer Reading Challenge, which launched on the 5th of July and encourages kids to keep reading (for free!) over the summer. Be mindful when relying on credit cards: Buy Now, Pay Later (BNPL), or other forms of credit. Before borrowing, ask: 'Do I need it? Can I afford it? Can I pay it off soon?' Avoid extra charges and build trust by staying in control. Check if your local council offers any grants for school uniforms: It may feel early to be thinking about this, but it's worth factoring it into your summer budget before August rolls around. If you are struggling with financial commitments or credit repayments, speak to your creditors who will have support in place. Don't hesitate to get in touch with a free debt advice organisation like StepChange if you're worried about debt. Simon Trevethick, Head of Communications at StepChange Debt Charity, said: 'Rainy day savings can be a lifeline for dealing with unexpected costs, but the rising cost of living has made it harder and harder to save - something which is felt particularly by parents with school age children. 'The summer holidays can bring a lot of excitement for families, but with that can be money worries of how to keep the kids entertained, cover any childcare costs and put food on the table.' He added: 'While it can be tricky, it's important to not pressure yourself into spending more than you can afford and risk triggering debt problems - it's definitely possible to have fun and make memories on a budget. If you are relying on credit to cover costs during summer while finances are tight, always be mindful of repayments in a month or two and whether those will be affordable. 'Remember, if you are struggling with debt, you're not alone - at StepChange we can offer free and impartial advice that will help you get back on track.'
The Sun
06-07-2025
- Business
- The Sun
Struggling with bills? Mortgage expert reveals whether you should take a payment break
MORTGAGE experts have weighed in on whether you should take a mortgage break if you're struggling to pay your bills. This is a type of agreement between you and your lender where you temporarily pause or reduce your payments. 1 If you are struggling with your monthly payments, it may seem like a tempting option and can help if you are facing a temporary drop in income. But it is worth thinking about the pros and cons before you make any hasty decisions. Who can apply for a mortgage holiday? Banks have different criteria that you may need to meet to be eligible for the help. For example, Nationwide rejects claims from customers who have been declined for a payment holiday in the last six months. Sometimes to qualify for a payment holiday, you'll need to have previously overpaid your mortgage. That means paying more than your agreed monthly payments until you've built up enough credit to take a break. If you are thinking of applying for a mortgage holiday, you will need to get in contact with your lender. Simon Trevethick, head of communications at StepChange Debt Charity, said: 'If you are struggling to keep up with your mortgage payments, before taking any action, it's always worth getting advice from your lender and exploring all options. "Mortgage lenders have a legal responsibility to treat borrowers who may be experiencing financial difficulty fairly and they can talk you through your options." 5 things to check before applying for a mortgage What to consider before opting for a mortgage holiday Your payments could increase long-term Pausing payments on your mortgage does not stop interest from accruing. Interest is the money you pay a lender in return for borrowing the costs to buy a home. Nicholas Mendes, mortgage technical manager at John Charcol, said: "Interest continues to accrue during the payment holiday, which means that when your payments resume, they are likely to increase." To help with this, you can choose to extend the term of your mortgage to spread the cost of the missed payments and interest. This means that you will be paying off the cost of your home for longer. It could impact future lending options One of the main concerns homeowners have is whether a mortgage agreement will affect their credit score. Creditors and lenders consider your credit scores as one factor when deciding to approve you for a new bank account or mortgage. Nicholas said taking a break from your mortgage generally does not "directly" harm your credit score. However, he said lenders "may still be able to see that you have taken one, which could influence future lending decisions". That is because the payment holiday will still show up on your credit report, which may suggest to future lenders that you have faced financial difficulty recently. But if you continue to keep up with your payments once the break ends, you should be able to cancel out any of the negative impact this has. What other options are available? A mortgage holiday is not the only option available to homeowners in difficulty. Nicholas said that depending on the situation, lenders may agree to a temporary switch to interest-only payments. This will allow you to make lower monthly payments, as you're only paying off the interest on the loan, not the principal. Nicholas added: "Another possibility is extending the term of the mortgage. "This spreads payments over a longer period and lowers monthly payments, although it does mean paying more interest over the life of the loan." For those who are not yet in arrears, remortgaging to a more affordable deal with another lender could also be an option worth considering. How to cut the cost of your debt IF you're in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action. Check your bank balance on a regular basis - knowing your spending patterns is the first step to managing your money Work out your budget - by writing down your income and taking away your essential bills such as food and transport If you have money left over, plan in advance what else you'll spend or save. If you don't, look at ways to cut your costs Pay off more than the minimum - If you've got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker Pay your most expensive credit card sooner - If you have more than one credit card and can't pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate) Prioritise your debts - If you've got several debts and you can't afford to pay them all it's important to prioritise them Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay Get advice - If you're struggling to pay your debts month after month it's important you get advice as soon as possible, before they build up even further Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans.
