Christmas Finance Cheer!
As usual thousands of us are maxing out their credit cards buying Christmas gifts. Needless to say the banks are doing their best to help. Of course they do have a small problem of PPI mis selling claims costing them billions of pounds and massive fines for manipulating LIBOR! So to help them meet these extra bills they are tweaking the credit card interest rates for credit card purchases from 18.3% in December 2011 to 19.1% in December 2012. Well, who do you think was going to pay for these misdemeanours?
The Bank of England may have left rates at an all time low but not our ‘friendly’ high street bank. Just for good measure authorised overdraft rates are up from 15.3% in December 2011 to 15.9% in December 2012.
This sort of thing always reminds me of the story of a pie and pasty manufacturer. He had just taken delivery of his new Rolls Royce and was showing it to a friend. His friend remarked that business must be good? Back came the response, ‘a half penny on all the pies and pasties paid for this!’
What of our other entrepreneurs? Wonga are looking at internet purchases, they want you to borrow the funds from them to finance your purchase. They will charge you 7% up front added on to your loan and you pay it back over three equal monthly instalments.
Next June our new Governor of the Bank of England is installed. Hopefully instead of worrying about the rate of inflation he will be charged with stimulating a growth economy!