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Debtors working three days a week just to repay loans The average person seeking help from the debt advisory charity Consumer Credit Counselling Service (CCCS) has to work until 4pm on Wednesday each week just to earn enough to repay their unsecured debts.
The charity was contacted by 418,000 people last year, with the average client owing a total of £22,476 on credit cards, personal loans, overdrafts and other types of unsecured debt – and facing a monthly bill of £675.52 just to meet their repayments. This figure made up a worrying 58% of the average CCCS client's earnings of £1,173.23 a month after tax.
Delroy Corinaldi of the CCCS said: "With rising prices continuing to push up the cost of living, household budgets are under increasing pressure – and these figures show how difficult it can be to escape from debt once it builds up. Our advice to anyone struggling to cope with their repayments is to seek free advice as early as possible."
CCCS provides free and confidential debt advice via its telephone helpline on 0800 138 1111 and anonymous online tool, CCCS Debt Remedy.
Nectar offer not quite as sweet as it seems Nectar card holders who are tempted by the offer of a potential 15% discount off the normal price of car insurance from Sainsbury's Finance should check the cost of equivalent policies from other sources before signing up for a policy. Sainsbury's admits that only 10% of Nectar card holders will qualify for the full 15% discount, but adds that all cardholders will get at least 0.5% off the full premium.
The company won't tell you what size discount you have earned: you have to work that out for yourself by first applying for a policy with your Nectar card details, and then making a second application without. Nor will it reveal how much you have to spend at Sainbury's on a regular basis to qualify for the full discount. And to make the shopping experience even more tedious and lengthy, it is not allowing its site to be visited by product comparison websites such as Moneysupermarket and Gocompare.
On the plus side, those who do buy a Sainsbury's car policy (underwritten by RBS Insurance) for two years receive double Nectar points for their Sainsbury's shopping and fuel purchases during the same period.
New opportunity for Muslims to invest for their future The growing demand from Muslims for a suitable retirement vehicle has led one pensions provider to launch a range of Sharia-compliant self-invested personal pensions (Sipps), accredited by the Islamic Bank of Britain (IBB).
The four products launched by Pointon York include an e-Sipp (a low-cost pension which can be managed online), single investment Sipp, individual Sipp (fully flexible) and a corporate Sipp (suitable for employers).
The most recognisable principle of Islamic finance is that products and services operate without interest, meaning investments must exclude all interest-bearing transactions and exclude unethical business activities such as pornography, gambling, speculation and tobacco.
The Pointon York Sipps will allow Muslims to invest a range of assets into their Sipp, including cash, Sharia-compliant funds and property. Sultan Choudhury of the IBB said: "British Muslims have had very limited choices of Sharia-compliant products to invest within their pensions. Retirement planning has therefore been neglected because the specific needs of Muslims have not been addressed. The launch of Pointon York's range of Sipps therefore represent a new opportunity for Muslims to invest for their future."
