 |  | By Julia Kukiewicz Staff Writer Friday, 16 May 2008 |
Money News Roundup
If you only do one thing with your money this week...
Learn from the terminal 5 fiasco when you look for your insurance.
Troubled travellers attempting to cajole their insurance companies into paying out after buying their travel insurance after the problems had started are finding them less than receptive.
This is yet another case for checking the small print of your policy before you travel and remember that you can’t buy insurance to protect yourself against problems you are already aware of.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (09 May 08)
Julia Kukiewicz glances back at this week's personal finance news, including how retirees could benefit from the credit crunch and why you should get cheaper broadband.
Money News Roundup (02 May 08)
Looking back at this week's personal finance news, Julia Kukiewicz brings more bad news on mortgages, how Natwest loaned a single mother on benefits £5000 for a nose job and why you should be applying for a 0% credit card.
Prediction: 123 homes to be repossessed every day
In a frightening alignment with the early nineties property crash, analysts are predicting that as many as 123 homes will be repossessed this year as the credit crunch bites.
How to get the best interest on your savings
Sarah Wray shows you why now is the best time ever to put your money into savings, in this simple to understand guide to making the most of your savings.
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THIS week, what the rise in inflation really means, Gordon Brown explains why the economy’s gone to pot and responsible customers get cut off by their card companies.
Inflation…inflates
YES, more depressing credit crunch news this week as the UK’s inflation rate rose to 3% last month, the sharpest increase in the cost of living in almost six years.
It’s the rising price of petrol, food and utility bills have caused the rate rise but the scale of the rise has come as a shock to the City where there has been the expectation of an early cut in interest rates.
If inflation rises and growth falls house prices will continue to get lower and spending in the high street has continue to fall, despite the decline in prices of clothes and shoes.
Brown begs for another chance
GORDON Brown begged the country for another chance to turn around the economy at his monthly press conference.
“I can steer this economy through difficult times" he told the BBC before the meeting, "I have done it before and I can do it again."
Although he said that international issues such as the rising price of oil were to blame for the UK’s economic problems he rejected as “defeatist” any suggestion that he would not be able to turn around the nation’s fortunes.
“Good economic decisions can help people through difficult times," he added.
So, it’s not his fault but he can sort it out but when it all goes wrong he’ll have good policies to help people out. Well, that’s clear then.
Responsible Customers cut off by card companies
A survey for uSwitch this week revealed that credit card companies are profit-hunting by forcing out almost 1.8m responsible customers.
The survey of 2,097 card holders found that 8% had been jilted by their providers in the past year. Although some of these had failed to make payments or exceeded their credit limit a staggering 71% - or 1.8m people – had been using their cards responsibly when they were cut off.
Not only do card companies unjustifiably cut off responsible customers, but they did not give a reason to over a quarter of these customers when they introduced fees or withdrew services.
The findings completely contradict the providers’ promises to beat the credit crunch by getting rid of risky customers.
The banks are continuing to seek the large interest payments of those who fall into unmanageable debt, the sort of risky and irresponsible which caused the Northern Rock crisis.
And finally, if you only do one thing this week…
AND finally, if you only do one thing this week learn from the terminal 5 fiasco when you look for your insurance.
Troubled travellers attempting to cajole their insurance companies into paying out after buying their travel insurance after the problems had started are finding them less than receptive.
This is yet another case for checking the small print of your policy before you travel and remember that you can’t buy insurance to protect yourself against problems you are already aware of.
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