Yambo

According to credit card provider Egg, some 4 million Britons will procrastinate to their own peril on holiday gift buying this year. Adding to the worst of these lambs who dive last from the cliff, are some 800,000, who will leap on Christmas Eve.

The frenzied crowd who fall into this category will apparently overspend an estimated £594 million this Christmas, announced Egg yesterday.

Egg researchers state this lack of planning and shopping at a more leisurely pace will drive shoppers to overspend their budgets by an average of 39%, or approximately £150 for each late shopper.

Contrary to popular belief, the Egg study also found that women are equally as likely as men to fall into the category of panic-buying; reaching for just about anything to fill a package or stocking at the last minute – rather than remaining level-headed and budget-conscious.

It’s a huge waste of cash and credit; undoubtedly adding to the heap of stress most people already feel in their tightening budgets – not to mention the constraints on time – in their already very busy lives.

Alison Wright, Chief Marketing Officer at Egg, said, “Each year we get 12 months advance warning that Christmas is coming, but still often resort to last minute panic buying. Consumers need to try to find ways to drive down the overall cost of Christmas - one way seems to be by avoiding those last minute shopping sprees, when lack of choice and panic buying are rife.”

Yesterday, the Post Office warned that some 49% of the 2.4 million Britons planning to travel abroad this Christmas will only learn of “hidden” charges when they appear on credit card bills in the New Year.

Many credit card issuers charge an additional whopping 2.75% in commission for every transaction made overseas; and the Post Office warns that many people are naïve to the fine print in their credit card’s contract.

Post Office Director of Lending Gary Fitton stated, “For many people, going abroad for Christmas is a great way to relax and not have to worry about cooking Christmas dinner. However…many people could be returning from their Christmas break with a lot more than just ‘memories and mementoes’ due to hidden card charges.”

He also added: “Regardless of where people are travelling to this Christmas we are urging holidaymakers to ensure the only baggage they return with is the luggage they are carrying and not unnecessary card charges.”

The top three destinations of the festive adventurers are Spain, the US and France - making up 17%, 8% and 6% of the total respectively.

Taking a few extra minutes to scrutinize which credit cards should accompany Britons on their journeys will undoubtedly save them millions collectively – and perhaps send a little Christmas tiding (of sorts) to the credit card tycoons seeking to snatch extra cash however they can.

A Your Money Matters Show survey states one-tenth of festive shoppers will continue paying off their purchases until next September while 3.9% of holiday spending spree die-hards will not have paid off their debts until December 2008. Further research shows one in five Brits will still be paying off Christmas until next June. (more…)

Alarmingly, only 1% of Britons wield the muscle to state they are completely financially fit, according to a recent Abbey survey.

Abbey’s research of financial fitness was tracked using a scale from zero to one-hundred; zero equalling a “financially fit machine” and one-hundred revealing bloated “financial obesity.”

The poll results exposed an enormous 41% of men and 46% of women were overweight; with a paltry 1% scoring under ten on the scale.

“As many gear up to shift the pounds they pile on over the festive period, we would encourage people to review the financial products they hold and shop around to ensure that they are getting the most competitive deal available,” stated Sue Hayes, Director at Abbey. Adding, “Like exercise, a financial workout can take a bit of effort but for most people the rewards are well worth the exertion.”

When scrutinized by region, Abbey’s research discovered that Wales and the south-west were the financially healthiest areas in the UK, with 42% overweight - while the north of England, at 46%, had the chunkiest weight predicament. But with a mere 4% difference, it’s difficult to point a chubby finger too harshly toward the north.

Elsewhere, the study showed that the vast majority are “financially overweight” - disclosing irresponsible management of credit cards, purchasing habits and banking practices.

In its Precious Plastic 2008 report, PricewaterhouseCoopers (PwC) states that credit card providers are realizing declines in profits due to the increasing number of consumers being unable to make repayments, as well as increased competition in the saturated business sector.

Richard Thompson of PwC recently stated, “Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies. Many consumers will find it increasingly difficult to obtain credit in the run-up to Christmas.”

Nearly £4 billion has already been lost by the credit companies as a result, according to PwC, leading to potentially “thousands” of consumer plastic hopefuls being flatly rejected this upcoming holiday season.

Moreover, the UK’s debt problem is deteriorating, with PwC figures reflecting that the average British adult now owes £33,000 in unsecured loans – which has doubled since the year 2000’s figure.

At the pace Britons are piling on debt, the year 2014 is looking mighty grim. Perhaps it’s time to put Santa on sugar-free cookies, and tighten that big, wide black belt – before it gets laid across our backsides.

Credit card firms must now refund customers who purchase goods and services abroad, according to a recent ruling by House of Lords.

The news came as a welcomed relief to USwitch yesterday, as an appeal by Lloyds TSB and Tesco Personal Finance against the Consumer Credit Act was also justly dismissed.

Personal Finance Expert, Mike Naylor at uSwitch described the ruling as “great news for consumers.”

The ruling ensures that credit card purchases between £100 and £30,000 made abroad will be insured by credit card companies under Section 75 of the Consumer Credit Act 1974.

Mr. Naylor further expressed, “This landmark decision has finally laid to rest the issue over credit card protection for overseas transactions which has been rumbling on with credit card purveyors for several years.”

“The decision to uphold it means that wherever in the world consumers use their credit card, they can enjoy the same protection as they do in the UK. This is especially important with the growth of internet shopping where goods are often shipped to the UK from sites based overseas,” he added.

UK consumers spent £16.4 billion abroad last year on credit and debit card transactions, according to the latest reported data. An amount certainly too significant to allow credit issuers slack practices in insuring purchases made through their organizations.