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Metro
a day ago
- Business
- Metro
Credit card customers can save up to £1,679 with a simple debt ‘spring clean'
If you're one of the millions of Brits who have a credit card, you could be pouring hundreds – if not thousands – of pounds, down the drain. But a quick balance transfer could help you clear your debt faster and save money in the process. New research from TotallyMoney revealed that half (48.8%) of credit card customers are currently paying interest on their balances every month. And by making use of a balance transfer deal, the finance company claims they could save up to a whopping £1,679 each. A balance transfer means moving some or all of your credit card debt from one to a new provider offering 0% interest for a set time, currently up to 33 months. While there's usually a small transfer fee of around 3% or 4%, the interest savings can far outweigh this, adding up to a huge amount as the months go by. 'They're an effective way to cut costs, and you could start saving money before the start of summer,' Alastair Douglas, TotallyMoney CEO, says. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video According to TotallyMoney, the top balance transfer deals available right now are from Tesco Bank, HSBC and Barclaycard, each of which are offering 33 months interest free. A person with an average interest-bearing balance could avoid paying £1,679 by switching to the HSBC 33-month card. It has one of the lowest fees on the market at 3.19% too. The average saving with Tesco Bank is £1,675, but Alastair also notes that it comes with 0% interest on further money transfers for nine months, 'which you could use to clear expensive overdraft debt.' Barclaycard's 33-month deal comes with a slightly higher fee of 3.45%, meaning a typical customer could save £1,671. But, for those who want to skip fees entirely, the bank has a 14-month fee-free balance transfer card too, allowing successful applicants to save an estimated £753. Other providers, including Vanquis and Fluid, are next on the list with their balance transfer offers – 18 and nine months, respectively – which could help you cut your interest bill by £881 and £394. Bear in mind though, you'll need a good or excellent credit score to be accepted with these lenders – and making multiple applications can harm your credit – so it's best to check eligibility before submitting. More Trending Plus, although a balance transfer can be beneficial, it only saves you cash if you pay off as much of your debt as possible during the interest-free period. Personal finance expert at CredAbility, Aaron Peake, advises: 'If you're regularly carrying a balance month to month, switching cards might offer breathing room, but it's also worth using this time to build habits that help you avoid falling back into the same pattern. 'It's easy to focus on the interest-free period as a way to delay, but to make the most of it, you should treat it like a repayment deadline. Set yourself a realistic repayment plan and automate it if you can. Divide your balance by the number of months you've got interest-free and aim to clear it within that time.' Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ View More » MORE: 'Everyone asks what fragrance I'm wearing – it's this little-known niche perfume' MORE: Millions could be paying off debt well into retirement amid 'pension postcode lottery' MORE: Martin Lewis warns everyone with a mobile phone contract to check now for 'dodgy trick' Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
The Independent
6 days ago
- Business
- The Independent
Finance experts suggest ways to teach children good money habits over the summer
The summer holidays can be a 'perfect time' for parents to teach children about budgeting and spending, finance experts have said. Introducing children and young people to good money habits from a young age can help to build financial confidence and set them up for life, they added. They made the suggestions ahead of My Money Week (June 9-13), a campaign and activity week which aims to encourage children and young people to learn about money matters. Chris Henderson, save and pay director at Tesco Bank, said: 'It's so important to teach children about money, and how to manage it, from a young age. 'The skills and knowledge that are gained, which we carry with us into adulthood, can really impact how we live our lives and our financial wellbeing.' He suggested making everyday spending a 'fun challenge,' adding that the summer holidays 'can be the perfect time to talk about budgeting and spending'. Mr Henderson added: 'It might be a quick trip to the shops to pick up dinner or something bigger, like a day out. Let your children take charge of the budget and see how they would spend the money – you could even set them a challenge, like planning a day out.' With many transactions taking place digitally rather than with physical cash, Mr Henderson also suggested showing young people 'what it looks like when you get paid, the money landing in your bank account, and then the things that you have to pay for – like water, electricity or housing costs. 'For older children, you can start introducing them to things like national insurance and your pension.' He also suggested introducing the idea of savings with a 'wishlist' of items children want, inviting them to consider how much money they would need to save and how they might reach their savings goals faster. Mr Henderson added: 'Not only will this help them save, they'll also value their purchases more and only spend on items they really need, rather than the first thing that catches their attention.' Brian Byrnes, head of personal finance at financial app Moneybox, suggested that some parents could consider opening a junior Isa. He said: 'By the time your child turns 18, a junior Isa is automatically transferred into an adult Isa, allowing them to decide on how they wish to spend, or invest their hard-earned savings.' Mr Byrnes added that if parents are concerned about how their children will spend the Isa money once they reach adulthood: 'You could put a small amount into a junior Isa and the rest of your savings into a different account earmarked for your children's future.' As with adult Isas, junior Isas have tax advantages and the money held in them is ringfenced from the taxman for as long as it remains in its Isa 'wrapper'. Mr Byrnes also suggested talking openly about money with children, adding: 'Talking about any money you have put aside for your children with them is a fantastic way to include them in your plans and educate them on savings and investing.' Susan Hope, a retirement expert at Scottish Widows, highlighted recent research it had commissioned which indicated that more than two-fifths (44%) of adults doubt they will ever achieve financial independence, 'with confidence in making everyday financial decisions a driver of this'. She suggested that going through payslips with young people could help them to understand concepts such as tax and national insurance (NI). Ms Hope added: 'Let your children see how you budget, compare prices, or plan for your weekly spending. Involving them in decisions, like choosing between two activities based on cost, teaches practical skills they'll use for life and should instil money confidence.' As children get older, she suggested talking to them about 'important topics like saving into a pension and what this means. A pension is something they will likely encounter for the first time when they start full-time work and we know that engaging early gives people the best opportunity to build a healthy pot for later on in life.'
Yahoo
6 days ago
- Business
- Yahoo
Finance experts suggest ways to teach children good money habits over the summer
The summer holidays can be a 'perfect time' for parents to teach children about budgeting and spending, finance experts have said. Introducing children and young people to good money habits from a young age can help to build financial confidence and set them up for life, they added. They made the suggestions ahead of My Money Week (June 9-13), a campaign and activity week which aims to encourage children and young people to learn about money matters. Chris Henderson, save and pay director at Tesco Bank, said: 'It's so important to teach children about money, and how to manage it, from a young age. 'The skills and knowledge that are gained, which we carry with us into adulthood, can really impact how we live our lives and our financial wellbeing.' He suggested making everyday spending a 'fun challenge,' adding that the summer holidays 'can be the perfect time to talk about budgeting and spending'. Mr Henderson added: 'It might be a quick trip to the shops to pick up dinner or something bigger, like a day out. Let your children take charge of the budget and see how they would spend the money – you could even set them a challenge, like planning a day out.' With many transactions taking place digitally rather than with physical cash, Mr Henderson also suggested showing young people 'what it looks like when you get paid, the money landing in your bank account, and then the things that you have to pay for – like water, electricity or housing costs. 'For older children, you can start introducing them to things like national insurance and your pension.' He also suggested introducing the idea of savings with a 'wishlist' of items children want, inviting them to consider how much money they would need to save and how they might reach their savings goals faster. Mr Henderson added: 'Not only will this help them save, they'll also value their purchases more and only spend on items they really need, rather than the first thing that catches their attention.' Brian Byrnes, head of personal finance at financial app Moneybox, suggested that some parents could consider opening a junior Isa. He said: 'By the time your child turns 18, a junior Isa is automatically transferred into an adult Isa, allowing them to decide on how they wish to spend, or invest their hard-earned savings.' Mr Byrnes added that if parents are concerned about how their children will spend the Isa money once they reach adulthood: 'You could put a small amount into a junior Isa and the rest of your savings into a different account earmarked for your children's future.' As with adult Isas, junior Isas have tax advantages and the money held in them is ringfenced from the taxman for as long as it remains in its Isa 'wrapper'. Mr Byrnes also suggested talking openly about money with children, adding: 'Talking about any money you have put aside for your children with them is a fantastic way to include them in your plans and educate them on savings and investing.' Susan Hope, a retirement expert at Scottish Widows, highlighted recent research it had commissioned which indicated that more than two-fifths (44%) of adults doubt they will ever achieve financial independence, 'with confidence in making everyday financial decisions a driver of this'. She suggested that going through payslips with young people could help them to understand concepts such as tax and national insurance (NI). Ms Hope added: 'Let your children see how you budget, compare prices, or plan for your weekly spending. Involving them in decisions, like choosing between two activities based on cost, teaches practical skills they'll use for life and should instil money confidence.' As children get older, she suggested talking to them about 'important topics like saving into a pension and what this means. A pension is something they will likely encounter for the first time when they start full-time work and we know that engaging early gives people the best opportunity to build a healthy pot for later on in life.' 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
13-02-2025
- Business
- The Independent
Barclays to hand share award worth £500 to staff after yearly profits surge by a quarter
Barclays has unveiled bigger profits after a stronger year for its investment bank, as its boss said he was 'deeply apologetic' to customers affected by the recent technology outage. The banking group will be handing out share awards worth £500 to the vast majority of its staff following the improved financial performance. It reported a pre-tax profit of £8.1bn for 2024, a 24 per cent leap from the £6.6 bn profit generated in 2023. Income for its investment bank soared 28 per cent over the final quarter of the year amid stronger activity in equity markets and increased deal-making. The UK bank also enjoyed a boost from taking control of Tesco Bank 's savings, loans and credit cards last year. Barclays shares dropped as much as 5.7 per cent in trading on the London Stock Exchange by 11am GMT on Thursday following the morning trading call, but they have risen more than 100 per cent over the last year. Now trading at around 290 pence, it means staff would receive around 172 shares if paid out to them at current price levels. Those shares also carry a dividend yield of around 2.6 per cent. Barclays was hit with a major technology outage earlier this month, leading its digital services to be disrupted for around two days. Group chief executive CS Venkatakrishnan, known within the bank as Venkat, apologised to customers affected by the incident. 'I am deeply apologetic to all our customers for the inconvenience that was caused by that outage,' he said. Start investing with Trading 212. Capital at risk. 'We are absolutely focused on assisting customers who experienced general difficulty as a result of the outage, and we will strive to make sure that the people who were impacted will be compensated.' Venkat's own salary has more than doubled to £10.5m in 2024, up from £4.6m in 2023, the Guardian report. The annual report shows that is as a result of long-term bonuses and a rise in value of Barclays shares, which are paid out to him. Shareholders this year will be asked to vote on a proposal to cut the CEO's base salary, but which will see him able to earn more in bonuses, up to more than £14m a year. Meanwhile, Barclays said growth in the UK last year was partly offset by mortgage costs starting to come down – which means banks generate less income from offering loans. It comes after interest rates were cut to 4.5 per cent last week, the lowest level in more than 18 months. The bank revealed it gained one million new customers of its Barclaycard credit card last year as part of efforts to lend more in the UK. And total UK deposit balances increased by £1bn over the final quarter of the year, compared with the previous three-month period, and before taking into account the Tesco Bank acquisition. Anna Cross, Barclays' finance chief, said its customers remained in 'robust shape'. Card spending in January increased by 1.9 per cent, which she said was 'still lagging' behind the UK's rate of inflation, but adding: 'What we have seen is that nonessential spending is now growing more strongly than essential spending, which we see to be a good sign. 'More broadly, if we look at credit performance across the UK, delinquencies remain low and stable and repayments remain high – so the customer looks to be in robust shape.' Furthermore, Venkat revealed the banking giant would be handing out a one-off share award worth £500 to almost all of its 90,000 global staff. The award recognises a strong performance over the first year of the group's three-year strategic plan, and encourages staff interests to be more closely aligned with shareholders' interests, according to the bank. It would equal a £45m payout if all 90,000 staff received that amount.
The Independent
31-01-2025
- Business
- The Independent
The money conversations to have while on a date or in a longer-term relationship
Finance may not be the first thing on couple's minds when entering romantic relationships, but a partner is often the first person we go to for help with money concerns. Just over a quarter (26%) of people would turn to their partner if they were in debt and needing support, according to new research for Tesco Bank. Nearly three in 10 (29%) women would turn to their partner, compared with 24% of men. Partners are more likely than parents (23%), banks (18%) friends (12%), charities (9%), other family members (8%), other financial providers (4%) or employers (4%) to be a first port of call for adults in a tricky debt situation, the Opinium Research survey of 2,000 people across the UK indicates. Mamta Shanbhag, borrow director at Tesco Bank says: 'Being open and honest about the state of your finances can go some way to lifting any financial burden you feel on your shoulders. 'Managing it alone can be overwhelming, so having a support system in place, whether it's a partner, family member, or friend, can provide a source of comfort. 'However, less than 20% of us would turn to our bank for support, but your financial provider may have solutions that you're not aware of. Start by taking a look at your own provider's website or give them a call directly to discuss your situation.' With Valentine's Day approaching on February 14, new romances will be blossoming. And starting some tentative money conversations in a relationship's early stages could prove useful later down the line. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, says: 'Just as a new couple will want to ascertain early on in a relationship whether they have similar values, aspirations and life goals, such as getting married or starting a family, making sure you see eye-to-eye on finances is also imperative.' She adds that conflicting approaches towards money management 'can cause major flare ups between partners if they are not addressed in the early stages of a relationship'. It's often said that opposites attract – and Haine says conflicts can arise if a conservative saver starts dating a compulsive spender. But, more positively, she says couples can also learn from one another – and adjust their financial priorities. 'The compulsive spender with lots of credit cards may want to learn about budgeting and learning to live within their means, while the obsessive saver can learn to relax a little and live a little bit more in the moment rather than solely focusing on the future,' says Haine. She also says that while money is important in a relationship 'it's not about how much you earn – it's quite normal for one partner to earn much more than the other'. The key is understanding each other's financial goals, values and behaviours, she says. So how can couples introduce money topics while on a date? Haine says it's important not to go overboard, adding: 'Quizzing a date on their net worth, income level, credit score, investment strategy or five-year career plan during your first meeting is not the way to go about it. 'This is more likely to scare someone off than lead to the start of a beautiful relationship. 'But if you are really keen on someone and want to see them again, discussing money matters in a non-confrontational way is an easy way to get an idea of their financial outlook.' She suggests taking a more subtle route into the financial mindset of a prospective partner. 'Questions about their next holiday, their hobbies or their big life dreams can offer valuable insights into their goals and how they like to spend their money,' says Haine. 'You could ask them what their dream trip would look like, what fun activity they are saving up for, or how they typically spend their weekends. Their favourite hangouts, go-to restaurants or job aspirations are also easy topics to hone in on.' Hopes and aspirations don't always match up to reality though, and Haine cautions against making too many assumptions. She says: 'They might be in the early stages of a very successful career and just be going through a tight financial period. 'If all their stories involve excessive spending and debt, however, with no indication of a plan to get out of that debt, then, yes, that might be a red flag.' As relationships progress, money topics can be explored more deeply. 'Whether it's clearing a credit card every month, planning big purchases or agreeing to merge your finances and have a joint account, it is important that couples are on the same page to avoid conflict,' says Haine. 'You might find that one person is better at managing money than the other and could take the lead on financial matters, though it is also very important that all decisions are made jointly.' Long-established couples will face some financial tough patches, whether they stem from saving for a house purchase or rent deposit, taking a career break, raising a family, or perhaps saving enough for retirement. 'Stress levels can rise and being able to sit down and have conflict-free discussions is important,' says Haine. Splitting bills can also be a sticking point, particularly when one partner earns more than the other. Haine says establishing clear guidelines on who pays for what and how finances are managed will help ensure one person doesn't feel worse off than the other. For those who are married or in civil partnerships, there are also potential tax benefits and planning opportunities to consider, says Haine. 'There are inheritance privileges too – and don't forget about the annual Marriage Allowance where a lower earner can transfer part of their annual tax-free personal allowance to their spouse or civil partner to create a tax saving,' says Haine. 'It might not sound romantic – but it makes financial sense.'
