Finance Credit Loan

Consumer champions Which? have carried out a new survey which found that just 1% of people in the UK are able to identify the main types of train tickets available to them. Additionally, 61% of respondents didn’t know that Advance tickets were non-refundable, and 48% didn’t know they had to be used on a specific train. When asked about Anytime return tickets, 75% were not aware that outbound journeys could be made within 5 days of purchase, and that return trips could be made within a month.

Consumers also displayed a poor understanding of off-peak tickets, with 51% not realising they are only valid outside peak times, and 17% unaware they don’t have to be used on a specific train. Richard Lloyd, executive director of Which? said “people could be wasting money buying more expensive tickets than they need to because it is so unclear what certain tickets allow them to do,” adding that “train operators have to recognise this is a problem and take urgent action to fix it. If they won’t, the government must step in to sort this out.”

There may be some hope for bewildered and cash-strapped consumers – transport secretary Phillip Hammond recently described the railways as a “rich man’s toy” and Liberal Democrat transport minister Norman Baker has said the railways should be “available for all.” Unless the government does legislate to simplify tickets and put the brakes on above-inflation price hikes, however, ordinary passengers will be left at a disadvantage, with a scarcity of alternatives for those who require affordable transport.

In this economic climate, many of us are faced with debts, far greater than we’ve ever experienced. The total UK personal debt currently stands at around the £1.5bn mark. The average household debt is approximately £16,500 (excluding mortgages) and it is estimated that 346,000 loan accounts are in arrears. However, even with these grim figures, credit companies are still more than happy to offer credit to anyone, it would seem.

Most of us will recognise the situation all too well; you’re weighed down with the day’s shopping and just about to pay for your goods at the till. Just before you hand over the cash, the cashier offers you a discount on all of your purchases if you sign up for a store card. “It’ll only take a second”. How could you possibly resist such an offer?

However this offer may sound at the time, you should always be wary; unless you are extremely careful with your money, store cards can come back and sting you in the future. In the UK, store cards have an APR of anything up to a staggering 30%. Many store cards offer an interest free period, usually between 30-55 days. In this time you should aim to clear your balance and reap the full benefit of the discount you made when signing up. If there is a balance on your card after this period, be prepared for the interest to stack up.

With credit being offered left, right and centre, it is easy for debt to spiral out of control. What is being sold as a ‘convenience’ could actually end up putting you firmly in the red. If you do take a store card, or any other credit card for that matter, make it your priority to make payments on time to avoid substantial late payment charges. Also, refrain from making the minimum payments. Pay as much as you can each month to clear the balance as quickly as possible.