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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.”

Fears of the rising credit crunch seem to be driving consumers closer to their ATMs during this holiday shopping season. An increase, in the first ten days of December, by 7.1% over last month has been noted by the cash machine network operator, LINK. For the past four years, according to LINK, the figure was closer to 5%.

Conversely, payments association APACS reported last month a prediction in the fall of cash spending to the tune of 5% over this Christmas season – dipping from £19.8 billion in 2006 to £18.9 billion.

Credit card mogul MasterCard reported weaker sales in shops for the month of November, showcasing a decrease in the annual retail sales growth rate from 4.5% to 4%.

The latest overall retail spending figures, released yesterday, seem to support the declining credit usage trends.

Bearing in mind these facts and figures point directly to human beings attempting to stay afloat financially, while putting a bit of figgy pudding on the Yuletide table, will ultimately benefit them by using what cash they have, rather than landing deeper in the hot winter coals of over-extended credit.

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. Read the rest of this entry »

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.

Older folks will continue to sustain age discrimination by well-heeled banks when seeking credit, the BBC reports.

Banking institutions maintain they should retain executive licence over deciding factors of whether borrows can carry on in a financially sound life - long enough to repay loans.

In opposition is former Bank of England executive and banking consultant Mike Young. After conducting an examination of potential changes to the Banking Code earlier this year he recommended an end to the discrimination.

Mr. Young stated: “The guidance should be amended to ban credit rejection simply on the grounds of reaching a certain age.” His review of the Code was published last month, touting greater clarity on saving and loan accounts, including a more reasonable approach toward customers who may represent a credit risk to banks.

The review was condemned by consumer groups for its professed lack of tough channels on matters such as bank charges.

Supporting the consumership views, a representative of the British Banking Association (BBA) told the BBC that the Code should remain untouched.

Director of Retail Banking at the BBA, Eric Leenders, maintained, “The banks feel they should be able to make commercial decisions and take account of factors they might feel are relevant - and one of the factors could be age.”

At a time when lenders scramble for the trustworthiness of their most tried and true borrowers, the practice of excluding the older generation presents a quagmire of reconciliation.

The London Interbank Offered Rate (LIBOR) - the rate at which banks lend unsecured funds to one another - has shown sharp growth. Experts say this is one of the key factors behind a probable cut but which has also led to a return of the critical situation in the credit industry seen during the summer.

Read the rest of this entry »

Angela Knight, the British Bankers’ Association (BBA) Chief Executive explained, “People in debt and their creditors need to know that when an Individual Voluntary Arrangement (IVA) is proposed, it is the most appropriate solution.” Read the rest of this entry »

Citizens Advice is now urging Brits to buy wisely and plan spending as its bureaux prepares for a rush of debt enquiries in 2008. Read the rest of this entry »

Weathering the current credit storm for individuals seeking personal loans or mortgages may hinge on their swiftness to act before Christmas. Read the rest of this entry »