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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.
Finextra
3 days ago
- Business
- Finextra
Intelligent Lending moves to new headquarters in Salford
Intelligent Lending has announced its move to Orange Tower, one of the largest fully fitted Grade A offices outside of London. 0 This follows a major refurbishment of the 6,773 sq. ft 10th floor space, as it becomes the headquarters for the group of three fintech companies, Ocean Finance, CredAbility, and TotallyMoney. With over 250 staff located in Manchester, London, Cyprus and Italy, Intelligent Lending is one of the leading platforms for fair and affordable financial products and services. The group is currently supporting 10 million UK adults improve their financial wellbeing with the use of innovative technology, credit report information, and open banking data. The announcement comes ahead of the Intelligent Lending's planned international expansion later this year. Why MediaCity? Orange Tower is already home to major names like ITV, Kellogg's and The University of Salford, and is Certified Net Zero Carbon. Just 10 minutes from Manchester city centre and 12 miles from the international airport, it sits in the UK's leading creative, digital and tech hub, home to 250 SMEs and more than 200,000 residents. Simon Kay, Chair of Intelligent Lending comments: 'Greater Manchester is fast becoming one of Europe's leading fintech hubs, and it's an exciting place to be. And with its continued regeneration and government backing — which is expected to attract £10bn of investment over the next ten years — we're extremely pleased to call Salford our new home. 'Orange Tower puts us right in the middle of the action, where we'll join more than 250 media and tech businesses, and the likes of the BBC, ITV, and dock10 studios, while the local amenities will help to enhance employee satisfaction and culture. Along with close links to the centre of Manchester and the international airport, Media City was the natural choice to make our headquarters, as we embark on the group's next chapter of growth and innovation.' Chris Reay Director at LandSec added: 'As a global hub for media and tech innovation we're delighted to welcome Intelligent Lending to MediaCity, where, as part of its unique ecosystem, they will be able to access emerging technologies and a talent pipeline to support its burgeoning businesses at the cutting edge of fintech.'
Daily Record
5 days ago
- Business
- Daily Record
Self-employed people urged to file tax returns early for faster refunds
Submitting an early Self Assessment return could result in a faster refund from HMRC. HM Revenue and Customs (HMRC has announced that a record breaking 299,419 Self Assessment tax returns were filed in the first week of the new financial year. People filling out Self Assessment forms can submit their tax return for the 2024/25 tax year between April 6 2025, which was the first day of the new tax year, and the deadline for online returns on January 31 2026. HMRC said there were 57,815 'early filers' on the first day of the new tax year, which was a Sunday, compared with 67,870 people who filed on April 6 2024. It's important for those submitting a paper tax return to be aware that these must be submitted by October 31 2025. The revenue body is encouraging people to file early so they know what tax they owe sooner and can plan for any payments in advance. People can set up a budget payment plan to make either weekly or monthly direct debit payments towards their Self Assessment tax bill. HMRC said that in cases where tax has been overpaid, refunds can be claimed as soon as the return has been processed and people can check if they are due a refund in the official app. HMRC recently introduced a new £10 per day late filing fee for people who have still not submitted their Self Assessment tax return for 2024/25. Personal finance experts warn that even though the deadline was January 31, the penalty will apply to 'hundreds of thousands of people'. Alastair Douglas, CEO at TotallyMoney, said: 'While the initial £100 fine might not have been enough to encourage some to get going, from today, HMRC will start charging late filers an extra £10 per day. This is on top of the eyewatering 8.5 per cent late payment interest rate on outstanding balances. "If in three months' time you still haven't filed your return, the taxman will hit you with a penalty of 5 per cent of the tax due or £300, whichever is greater. Any penalties need to be paid within 30 days, and can be done in several ways, including Direct Debit, bank transfer, or by cheque.' He added: 'If you have a 'reasonable excuse' you can challenge your penalty, and reasons include the death of a close relative, serious illness and issues with HMRC's online services. If you're struggling to pay your bill in full, then head over to the HMRC website, where you might be able to set up a payment plan, under a 'Time to Pay' arrangement.' Claire Trott, Head of Advice at St. James's Place, said 'pressure is rising' for those who still haven't submitted their tax return. She continued: 'While completing a tax return is often a dreaded task, and one may choose to put it off, getting it sorted now could save you from significant financial penalties down the line. 'Up until now, late filers have faced a one-off fine of £100, but from today the consequences will become even greater. The £10 a day penalty will continue for 90 days, potentially adding up to £900 if the return is not submitted during this period. 'Further penalties of 5% of the tax due or £300 (whichever is greater) will apply at both the six month and 12 month mark for those who still haven't filed.' It's important to be aware that anyone who is currently registered for Self Assessment is required to submit a return, whether they owe tax or not, so if you're in this position, it's crucial you don't ignore reminders or warnings from HMRC. Ms Trott also said that while submitting your tax return today won't erase the financial penalties you have accrued up to this date, it's well worth it to prevent further fines adding up. She explained: 'The quickest and simplest way to do this is to complete HMRC's online form. While the process may seem daunting, there are plenty of tips and guidance available on the HMRC website, and if your finances are particularly complex, speaking to a financial adviser is always a good option for those who are able. 'With today's penalties likely to cause alarm for those who are unaware, the most important thing is not to rush the return process as this could cause you to leave out vital information that could result in paying more tax than necessary. 'There are a number of details - such as gift aid payments, and necessary work expenses - that can be easy to forget about when filing a return but can amount to significant tax relief. It's important to take time to include all relevant information to ensure you receive the full tax relief you're entitled to."
The Sun
28-05-2025
- Business
- The Sun
Urgent warning for millions of credit card customers to check accounts now
MILLIONS of credit card customers are being warned to check their accounts as providers keep pushing up interest rates. Some lenders have bumped up the interest on their cards by a whopping 12 percentage points over the last decade, The Sun can reveal. New research by TotallyMoney for The Sun reveals how banks have significantly increased their credit card representative APRs over the past decade. Ten years ago, in 2015, the average credit card representative APR was 17.9%. Fast forward to 2025, and that figure has jumped to 25.2% - a rise of 7.3 percentage points. Some lenders, however, have raised their rates by much more. For instance, John Lewis has increased its credit card APR from 16.9% to 28.9%, a substantial 12 percentage point rise. Similarly, M&S Bank has seen an eight percentage point increase over the same period. Other major lenders, including Bank of Scotland, Lloyds Bank, Nationwide, and TSB, have all raised their APRs by seven percentage points, moving from 17.9% in 2015 to 24.9% by 2025. On the other hand, Metro Bank has kept its representative APR under 19%, with a more modest five percentage point increase over the decade. However, the bank has since stopped offering credit cards to new customers. Alastair Douglas, chief executive of TotallyMoney, said: "While the Bank of England may have cut rates by one percentage point in the last year, credit card companies haven't followed. "These hikes are a timely reminder for credit card users to review their rates and explore whether switching to a cheaper deal could save them money." Four methods you can use to clear debt What can I do about it? How you use your credit card will determine the best approach for managing how much interest you'll pay. If you're using it for everyday purchases or to earn rewards, it's essential to pay off the full balance at the end of each statement period. This way, you'll avoid paying any interest on your spending. However, if you can't pay off the balance in full or are using the card to manage existing debt, it's important to switch to a low-interest or 0% balance transfer credit card. Balance transfer cards are a lifeline for those looking to repay debt, as they eliminate interest charges on the transferred amount for a limited time, giving you breathing room to get back on track financially. Martyn James, consumer rights expert, said: "For people considering moving their debt for an interest-free deal with another credit card provider, there are three things to factor in: the interest-free period, the transfer fee and the APR if you can't pay off the debt in time." "But those who make careful use of interest-free deals can comfortably clear all their debt quickly and without the extra cost of interest." If you want to pay your debt down completely, you should avoid spending extra money on these cards. Think before you borrow BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back. It's always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft. If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more. What's on offer? Alastair said: "Balance transfers deals are getting longer. "You can now shift your credit card debt and cut interest costs for 33 months, taking you through to February 2028." The leading card on the market right now is from Barclaycard, which offers an impressive 33-month 0% balance transfer deal, though it comes with a 3.45% transfer fee. HSBC matches the 33-month 0% offer but charges a slightly lower transfer fee of 3.19%. However, applicants should note that this deal isn't guaranteed for everyone. Alternatively, Tesco Bank provides competitive options, including 32-month 0% balance transfer deals, with a 3.19% transfer fee. To compare all the available cards, visit price comparison websites like MoneySavingExpert's Cheap Credit Club or Compare the Market. Once you run your details through an eligibility calculator and you've been shown that you're likely to be accepted, make a formal application. To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility. You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted. How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 National Debtline - 0808 808 4000 Debt Advice Foundation - 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting or Speak to one of these organisations - don't be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don't need to pay.
The Guardian
18-05-2025
- Business
- The Guardian
Five common banking mistakes – and how to avoid making them
Many of us frequently shop around for the best insurance deals or supermarket offers but forget about their bank account – and it could be leaving you hundreds of pounds worse off. Here are five the most common banking mistakes and how to avoid them. HSBC, Lloyds, NatWest and Barclays dominate the current account market in the UK, and are responsible for three-quarters of accounts. However, none of the big four are rated in the top five for service, says Alastair Douglas, the chief executive of the credit app TotallyMoney, referring to a survey of customers by the Competition and Markets Authority (CMA). Sticking with a trusted brand or perhaps a bank you have been with since childhood may seem like the safe option, but you could be missing out. An array of new challenger banks offer slick apps, top savings rates, and handy features that make it easier to split a bill or divvy up your savings. Respondents to the CMA survey ranked Chase, Monzo and Starling as top for 'overall service quality'. Almost 1.2 million people switched bank last year, according to payments network Pay UK, with online or mobile banking (46%) the top reason they preferred their new account, followed by the interest they earned (37%) and customer service (32%). Switching bonuses can also make opening a new account worth it. Current deals include £175 free cash to those who switch to First Direct and £150 for those who move to NatWest. Be sure to check the terms and conditions – some accounts require a minimum monthly deposit or a certain number of direct debits to qualify. Switching is easy: provide your old account details to your new bank and it will do the legwork, including transferring any direct debits. Under the Current Account Switching Service guarantee, the whole process should only take seven working days. Do your homework first. Check reviews and make sure the bank is a member of the Financial Services Compensation Scheme, which protects up to £85,000 of your money if your bank fails. The overdraft attached to your current account may seem convenient, but use it at your peril as it is typically one of the most expensive ways to borrow money. Some people assume that having an 'arranged overdraft' means they can go overdrawn without penalty, but this is not the case. The typical overdraft rate ranges from 35% to 50%, according to TotallyMoney, and about 9.7 million people are overdrawn by an average of £709 every month. Running a £709 overdraft at a rate of 39.9% would rack up £283 in interest charges over 12 months, says Andrew Hagger, the founder of the financial website MoneyComms. A better option may be to use a 0% credit card. These let you clear your debt over a set period, without accruing further interest charges. You need to look for a money transfer card, not a balance transfer card. A money transfer card lets you effectively give yourself a loan by moving a credit card balance to your current account, where it can be used to clear an overdraft. Some cards charge a fee for transferring the initial balance, but this is still likely to work out cheaper in the long run. Tesco Bank's money transfer card has a rate of 0% for 14 months and has a 3.99% fee. Using it to transfer £709 to clear an overdraft would cost £28.28 – a saving of £254.72 compared with the potential overdraft interest, as long as you pay it off within 14 months. Use an eligibility checker to see whether you are likely to be approved for a credit card before you apply to avoid affecting your credit score – you can find these on comparison websites such as Comparethemarket and Uswitch. Hagger suggests asking your bank to reduce your overdraft limit to a nominal amount of about £200 to £300 to reduce the temptation to use it. Consider using savings to clear your negative balance on your current account. The interest on debt will build up faster than any savings interest, so it makes sense to tackle the overdraft first. It is heartening to see a healthy balance, but leaving too much cash in your current – or any other account – is a mistake if it earns little or no interest. The Bank of England estimates that £280bn is sitting in accounts earning nothing. Any cash in a zero-interest account is not only missing out on interest, it is actually losing value in real terms as inflation chips away at it. 'Switching just £2,000 from a zero-interest account to an easy-access account paying 4.5% would earn you £90 in interest over a year,' says Hagger. 'On a £5,000 balance, you would earn £225.' Experts typically advise having three to six months' worth of outgoings at hand, but that does not have to mean in your current account. The top easy-access accounts now pay 4.5% or more, and let you withdraw your money at any time. Use comparison websites such as Moneyfacts to find the best deals and check for any restrictions. Some accounts require 30 days' notice or allow only a certain number of withdrawals each year. Douglas says the smaller banks may offer more competitive rates as they look to win new customers. Often the savings accounts with the most eye-catching rates are not offering as much as it may first appear. Anna Bowes, the head of communications at the financial advisers The Private Office, points to Santander's Edge saver account as one example. It pays a market-leading 6%, but only on balances up to £4,000 – the average saver has more than £17,000 in their account, according to TotallyMoney. Someone who maxed out the account would earn £240 in interest over a year. You also need an Edge current account to qualify, which costs £3 a month. Meanwhile, Atom Bank's easy-access Instant Saver Reward account pays 4.75% on balances up to £100,000, according to Moneyfacts. Someone with the average savings balance of £17,000 could earn £807.50 over a 12-month period. Regular saver accounts also offer top rates, but only let you set aside a certain amount each month. While these accounts are great for those starting a savings habit, those able to put away larger sums could do better elsewhere. For example, First Direct's regular saver pays 7% on up to £300 a month. Those paying in the maximum would have saved £3,600 after 12 months and earned interest of £136.50. However, if you were able to save £3,600 in full at the start of the year into the Atom Bank account, you would earn £171 – an extra £34.50. Packaged current accounts charge a monthly fee and offer perks such as travel insurance, gadget cover and cashback – but they are only good value if you use the benefits. For example, the Virgin Money Club M account costs £12.50 a month (£150 a year) and offers family travel and gadget insurance, plus UK and European breakdown cover. MoneySavingExpert estimates that buying the equivalent cover separately could cost up to £500. But your gadgets may already be covered under your home insurance, or perhaps you do not holiday overseas enough to benefit from the travel insurance. Check what you are paying for and whether it is worth the cost. 'The bottom line is that packaged accounts make banks a lot of money,' Douglas says. 'You might be better off picking and choosing the parts that work for you and paying for them separately.' He adds: 'Read the small print to see if the phone insurance includes theft or whether the travel insurance covers the destinations you are planning to visit. You might find out that what initially sounded like a great offer, actually is not.' Some account requirements quickly get complicated. For example, the Club Lloyds Silver account costs £11.50 a month if you deposit at least £2,000 monthly, otherwise you will pay an extra £3. Or you could get a discount of £2 a month, if you deposit £4,300 a month, or £5,500 for a joint account. Have you got all that?
