Latest news with #debtadvice
Yahoo
5 days ago
- Business
- Yahoo
Ways to avoid buy now, pay later problems highlighted by charity
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority, with proposals outlined by the regulator on Friday for the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls: 1. Pause at the checkout, and ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. 2. Make sure you know which type of service you are using, and what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. 3. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. 4. If you do start to struggle, get advice right away. If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
5 days ago
- Business
- The Independent
Ways to avoid buy now, pay later problems highlighted by charity
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority, with proposals outlined by the regulator on Friday for the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls: 1. Pause at the checkout, and ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. 2. Make sure you know which type of service you are using, and what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. 3. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. 4. If you do start to struggle, get advice right away. If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path.
The Independent
5 days ago
- Business
- The Independent
Experts reveal four buy now pay later tips to prevent shoppers getting into debt
Buy now, pay later firms are set to come under the scope of the Financial Conduct Authority (FCA). On Friday, proposals from the regulator will outline the rules they will need to follow. The new regime is due to get under way from July 15 next year, with new protections for BNPL borrowers to give them more transparency and certainty. In the meantime, StepChange Debt Charity has suggested some ways that borrowers can manage BNPL products and avoid possible pitfalls. Pause at the checkout Ask yourself: 'If I wasn't using credit, would I buy this?' BNPL is seen as a way for retailers to increase sales, so taking a moment to pause could be essential. Understand which type of service you are using It is also important to know what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences for not paying. Do your research and always make sure that if you are taking out credit it is an informed choice. Make sure you are certain you will have the money to pay it back. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. If you do start to struggle, get advice right away If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Debt help charities can help people to see the right path. Buy now, pay later providers will have to check that people can afford to repay their loans and offer support if they get into financial difficulty under a consultation put forward by the Financial Conduct Authority (FCA). Borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong. The new oversight by the FCA would mean that BNPL borrowers will have key protections that already exist for other types of lending. Sarah Pritchard, deputy chief executive at the FCA, said: 'We have long called for BNPL products to be brought into our remit, so people can benefit from BNPL while being protected. 'Our regulation will help consumers navigate their financial lives, with checks on whether they can afford to repay, support when things go wrong and access to the right information to make informed decisions. 'We're mainly relying on existing requirements, including the Consumer Duty, rather than proposing to make lots of new rules, supporting growth and allowing firms to innovate.'
BBC News
13-06-2025
- Business
- BBC News
Money Help
1. StepChange Debt CharityOffers confidential debt advice and free, personalised plans to manage repayments or even pause payments if external or call 0800 138 1111They can help with things like credit card debt, missed rent, or loan stress — especially if it's keeping you up at night.2. Citizens AdviceYour local Citizens Advice Bureau can help with a wide range of issues — from benefit checks and energy bill support to housing and legal also offer face-to-face appointments or web chat at example, many people don't realise they could be eligible for Universal Credit top-ups even if they're working.3. Turn2usA brilliant website where you can:Check if you're eligible for for grants — from charities that help with everything from school uniforms to utility to external and try their grants finder or benefits calculator.4. MoneyHelper (by the UK Government)Free advice on budgeting, pensions, credit scores, and coping with money budget planners, bill prioritisation tools, and support for major life changes (like job loss or separation).Visit external.
Finextra
16-05-2025
- Business
- Finextra
FCA: 1 in 10 Brits have no cash savings
The Financial Conduct Authority (FCA) has found that one in ten people have no cash savings at all, and another 21% have less than £1,000 to draw on in an emergency. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The regulator's research also shows that one in four people in the UK have low financial resilience, meaning that they have missed payments, are struggling to keep up with commitments, or don't have savings to help them through difficulties. However, there is also good news. The FCA found when consumers seek support it makes financial pressures more manageable. Of the 1.7 million people who had used a debt advice or debt management service in the previous 12 months, 61% said their debts were more manageable as a result. Lenders also have a range of options available to help people struggling with repayments. There has also been progress on access to basic banking services such as an increase in consumers who hold current accounts and a reduction in people being denied basic bank accounts. There are also more people banking online or with a mobile app. 1.2 million adults (2%) were digitally excluded, a dramatic improvement from 6.9 million (14%) in 2017. Even those who are better off could take steps to improve their long-term financial health. 61% of people with more than £10,000 in investible assets held at least three-quarters of these assets in cash, rather than investments. The FCA wants to see more people holding mainstream investments to improve long-term returns. Looking towards retirement, the FCA's survey found that one-third (33%) of adults with a defined contribution pension have less than £10,000 saved. In light of these findings, the regulator is urging consumers to reach out to their lender if they're struggling with their payments and get help with pensions and investment decisions to improve their long-term financial health. As part of its new strategy, the FCA is working to improve people's access to help, guidance and advice so that everyone can access the support they need, at a cost they can afford, to make informed decisions for their financial future. Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, commented: 'Our data shows that finances are stretched for many – with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.' Oliver Morley, Chief Executive at the Money and Pensions Service, which provides the MoneyHelper service, says: 'People who experience individual financial wellbeing are less stressed about money which in turn has positive effects on their health, relationships, and work. Through MoneyHelper – our free and impartial service – we can help make your money and pension choices clearer by cutting through the complexity, explaining what you need to do and how you can do it. 'I'd encourage anyone who is worried about their money or pensions to visit and join the millions of people who have been supported.' The FCA is helping consumers through: New rules for a new form of support so that consumers can be guided on how to make the most of their pensions and to invest with greater confidence, without taking costly personalised financial advice. Helping consumers to make better-informed investment decisions through its InvestSmart campaign. Supporting the government to develop a national plan for financial inclusion. Continuing to set high standards across financial services through the implementation of the Consumer Duty. Driving better value for money in workplace pension schemes. Scrutinising the insurance sector to make sure people get fair value, for instance on pure protection and premium finance.
