Where does one go for financial advice nowadays? More and more, it seems that decent impartial financial advice isn’t easy to come by – after all, as impartial as people claim to be, quite often you can’t confirm this yourself.

Because of this, the best way to get properly impartial advice is to make as many enquiries as possible yourself. Your bank might tell you that they have a great deal on a loan or a credit card, but you might find that by making enquiries elsewhere, you could get a far better rate or deal on what you want, which is where services like price comparison sites can really play to your advantage.

Just by tapping in a few details and hitting that button, you can view details on a huge number of deals on the product you’re looking for, ranked to be as close as possible to the parameters you set in the first place, and many of which you can apply for directly.

Of course, this is all well and good, but who do you turn to if you don’t know what you want? Well, the advice given to you by your bank can normally steer you in the right direction, just don’t assume that they will be able to offer you the best deal – often they will be able to, due to a special “existing customer rate” or similar (This is often true for loans, as your bank has a greater knowledge over your financial dealings), but quite often it can be worth shopping around – especially in the case of cash ISAs at the moment, where some banks are offering just .05% interest rates and standard savers often offering little over 3% – Which, when you consider that, according to moneysupermarket.com: “A higher rate taxpayer needs an account paying at least 6.17% in order to earn a positive return [on their savings], while someone in the basic taxband needs to be earning at least 4.62%” Means that at the moment, finding the best place for your money is even more important than ever.

There is a lot to be said for carefully considering your financial position, learning about the different options available and then choosing the one most appropriate to you. True enough, this may not be the quickest way, but do you really want to rush into what could be a very important financial decision? moneysupermarket.com can make this decision easier, offering not only detailed price comparison, but a wealth of other information that can help you decide on what product and what type of account is right for you.

Plans to split British bank Northen Rock in two which would allow for its partial sale has been granted by the European Union.

The divide would result in two separate banks forming and are already being described as the “good” and “bad” banks.

The “good” bank would offer new lending, retain some of the existing mortgages and hold its savers’ money.

The “bad” bank would be used to repay the existing government loans and hold the remaining loans.

 Decisions made by the EU to accept the move are seen by Northern Rock as “an important and positive step.”

Changes to the existing setup will be made towards the end of the year.

The EU revealed that the good portion of the bank would be expected to grow and then be sold to third party, with the bad bank allowing its assets to dissolve then becoming liquidated.

The good bank may be sold prior to the general election next year with potential buyers being speculated already, with Virgin and National Australia Bank, owner of Clydesdale and Yorkshire Bank, among the interested parties.

EU Competition Commissioner, Neelie Kroes, believes that the move would make the bank a good long-term option, revealing that “this decision demonstrates once again that the EU’s state aid rules provide an appropriate framework to allow state support for a sustainable restructuring of banks without giving individual banks an unfair competitive advantage.”

Whilst Jonathan Todd, European Commission spokesman, said caps would need to be applied for the duration that the good bank remains owned by the public.

Some of the caps include a balance sheet reduced to a quarter of its size prior to the crisis, not being the market leader for loan interest rates, a cap set to limit its lending to one-third of Northern Rock’s 2008 levels and also a cap on retail deposits to be slightly lower than the pre-crisis level.

An investigation was engaged by the EU into Northern Rock in April 2008, two months after its nationalisation.

The results from the investigation showed that the UK government was kept at a “necessary minimum”.

By 30 June, the bank had paid back approximately half the taxpayers’ £26.9bn loan and will gain a further £8bn from the government during the end of year restructuring.

The EU stated that the restructuring would reduce its market share to below half of its pre-crisis level and “correct the excessive expansion of Northern Rock pre-crisis.”

Northern Rock released a statement, saying “this approval is an essential requirement of the planned legal and capital restructure, which is central to the business plan for Northern Rock.”

“The restructure will strengthen the capital and liquidity position of Northern Rock significantly, and offers value for money to taxpayers” and it would be “business as usual” for its customers.

Ofgem have admitted that they may look into rising direct debit demands from energy companies, even though they have said there was “no quantified evidence indicating misuse of direct debit schemes”.

This comes even thought the company is denying claims from an MP that firms were raising their direct debit payments when customers are in credit to boost cash flow.

There is currently pressure on energy firms to lower their prices in the New Year, after they have been raised twice in 2008, and the head regulator of Ofgem has told MPs that he expects this to happen.

On average, a household’s gas and electricity bill rose by over £300 in 2008, but some direct debit customers of lenders say they have been paying more in recent months.

Millions pay their gas and electricity bills via direct debit and are therefore unclear as to how much exactly they are spending each month.

Peter Luff, Conservative MP and chairman of the Business and Enterprise Select Committee, has warned that several companies may be raising their direct debit payments even when customers’ accounts were in credit.

Earlier this week the Energy Retail Association denied all claims, saying that: “what energy companies are trying to do is make sure you get a balanced account that is zero or as close to zero as possible after you’ve had the biggest bill.”

After recent falls in wholesale prices of gas and electricity, energy companies have been pressured to lower their prices.

On Monday this week, Chancellor Alistair Darling acknowledged in his pre-Budget report speech, that there was concern that wholesale prices would not be reflected very quickly enough in household bills, announcing that Ofgem would produce a report every three months on any price changes.

He also announced that these reports would be used to govern whether there were unfair gaps in pricing between different payment methods.

Yesterday, British Gas announced that they would be narrowing the price difference between their pre-payment meter bills and other forms of payment, such as direct debit bills. This could lead to a £22 average cut in the yearly bill of a dual fuel pre-payment meter customer.

British gas electricity customers will pay the same as a quarterly cash or cheque tariff.

Alistair Buchanan, Ofgem chief executive has told Business and Energy Select Committee that regulator the company was putting as much pressure as possible on major gas and electricity suppliers to make announcements about their bills soon.

He also said that there was no evidence of any price-fixing cartel among the biggest suppliers, and that none of the major suppliers had dropped their prices recently after they put bills up earlier in the year in order to reflect wholesale costs.

The UK’s second largest energy company, Scottish and Southern Energy, revealed earlier this month that it was optimistic about domestic prices being cut in 2009 if the wholesale prices of gas and electricity continued to fall.

Much smaller company, First:Utility, has said this week that they will drop priced in response to the falling wholesale costs.

A credit card is a significant tool in planning your finance. There are thousands of offers available with these cards and you may want to get the best and cheap deal while availing a credit card. You have to make sure that the credit cards that you are getting will meet your requirements in the best manner.

Look for the hidden costs

Many credit card companies nowadays offer low annual rates of interest to lure customers. But, in order to compensate, they increase the fees of annual membership. So, you have to consider the fees charged on various credit cards and should apply for the one that suits you the best. Also, you can compare the rate of interest and fees charged by different credit card companies to get the best deal. If you feel that your credit card’s APR is less than others and the fees are also reasonable, then only you should get the card. If you have selected a credit card with a little higher APR and no fees, then also you will be paying the same or less amount when compared to the credit cards of lower APR and higher fees.

Interest free credit days

Nowadays, different credit card providers offer different interest free credit days. It is not the same in all the credit cards. So, you need to look for the number of interest free days. Normally, the credit cards carry 36 to 54 interest free credit days. So, you should choose the one which offers you more interest free credit days. But, if the interest rate is higher and they offer more interest free credit days, then there is no point in getting such a credit card. You should take into consideration both the rate of interest and interest free days to decide on the credit card.

Reward programs

If your credit card gives you cash-back rewards on every purchase you made and charges a little higher APR, then will you accept it as the best credit card available in the market? What if another credit card gives you nothing as reward, but charges low APR? It entirely depends on your repayment habit. If you repay the expenses made every month promptly, then there is no need to worry on the higher APR as you will pay the amount within the interest free credit days. But, you only make payments in installments, and then the credit card with lower APR suits you the best. So, plan your strategy before opting for a credit card.

Interest rates on credit cards keeps on changing and some companies even hike them without any prior notice. If you ignore the change in the interest rate, then later you have to pay much more than what you have estimated. Therefore, you need to research before purchasing a credit card and also you should shop smartly to avoid bulk payments. Also you should make it a habit to pay the due amount of your credit cards within the interest free days to save your hard earned money.

As consumers gear up for what promises to be a good, if not spectacular Christmas shopping period, it seems that we will soon see a stand off between the consumer and the retail sector.  Stuart Rose of Marks and Spencer recently pleaded with his retail counter parts to hold firm in the face of pressure to start early Christmas sales – forecasting that the consumer was ready to spend, and spend at full prices.  So who will win?

While this is the first time we have actually seen such a formal declaration from a leading member of the retail sector, in truth, this battle has been going on for decades.  Who will blink first, the consumer or the retailer?

In recent years we have seen a number of main retailers break ranks before the New Year’s sales and implement what have been drastic price cuts in some areas.  This year seems set to be little different, and the fact that the UK economy is forecast to decline over the net 12 months has some what handed power to the consumer.  Retailers will surely break rank as the competition heats up, and if the consumer is careful and willing to wait, there are surely many bargains to come.

So the moral of this post is, don’t be too hasty to get your credit card out just yet, because while you will save yourself interest payments the longer you wait, you also have the chance of getting your chosen items at a reduced price.   This year will be very interesting, now that Stuart Rose has most definitely drawn the battles lines.  Weapons at the ready!

As we move towards a decline in worldwide business activity, a time when interest rates around the world will fall, many are starting to ask when they should consider re-financing their debts.  Is it time to do it now, or wait as long as possible?

While it may be tempting to take advantage of the recent reduction in interest rates in some areas of the world, those who can may well benefit from waiting a few months longer.  The UK for one is expected to see interest rates start to decline very soon, with recent indications by the Bank of England seemingly confirming this.  We are also in a situation where finance is still more expensive in real terms than it was 6 months ago, because there is less liquidity in markets, which has pushed money market lending rates higher.

If you are looking for a fixed rate refinancing of your debt, and you are able to hold on for a little longer without impacting upon your credit rating, it may well be beneficial to hold off any action for a little while.  We could see UK rates fall by more than one percentage point over the next 12 to 18 months, depending upon the performance f the economy.  Even this relatively small fall will offer many consumers, who have built up substantial debts, the chance to reduce their future debt repayments.

Each person’s situation will be different and there is no simple answer to the question, but it seems inevitable that the UK, US and other major countries around the world will be seeing lower interest rates in the not too distant future.

It has been announced that Halifax have begun the process of posting 25,000 contactless debit cards to a range of London based customers, in what they hope will be the beginning of a national roll out.  We have covered contactless cards in the past, these are the cards which do not require a security input for items under £10, you just flash the card past a reader.  The card also acts as a traditional debit card for larger amounts as well as an ATM card.

While the announcement will be welcomed by many retailers who find transaction costs high for smaller sales, it seems that we are taking a step back with regard to card security – surely the point of Chip and Pin (the supposed saviour of the banking system) was to ensure contact between the customer and the retail business.  The billions of pounds which have been spent on card security seem to have been forgotten in the rush to push as much through the tills as possible.

Even though the maximum amount of £10 is fairly low and will not interest all but the petty crooks, there is concern that slowly but surely the £10 amount will rise and rise until we actually arrive back at a contactless card. 

It seems as though the banking and business communities are finding it very difficult to arrive at an understanding for smaller sales, with current costs being effectively prohibitive and taking away much of a retailers potential profits – before their own cost are deducted.  Whether the contactless card will work or even be accepted is open to debate, but many believe that this is a major step backwards in the fight against the fraudster, and plays straight into their hands.

If you are looking to buy your loved one an iPhone for Christmas, a phone which is sure to be top of many shopping lists, you will need to ensure your have either a credit card or a debit card when paying.  Why? Apple have taken the amazing decision to refuse cash purchases of the iPhone, as they are insisting upon a way to trace the original owner of any phones which turn up, unlocked,  in other areas of the world.  Is this the start of a new trend?

Thankfully it seems highly unlikely that this is the start of the “cash less society”, more a case of Apple protecting their intellectual property, and safe guarding the release of the iPhone in many other areas of the world.  However, it does prompt the question, do credit card and debit card purchases actually infringe your privacy?

Apple may well have opened up a whole new debate about “big brother” watching you, with the revelation that they would (where required) use you personal address details to question you about any anomalies with your mobile phone.  Is this a move too far? What else can they do with your credit card records? Will there be a major consumer back lash?

While we may see some short term discussions about the issue of privacy, if the truth be told, the credit card companies have been watching our spending patterns for years, with sophisticated software available to forecast your future spending patterns.  Slowly but surely the “unpredictability” of consumer spending patterns is being eroded, and we are being monitored continuously - so what’s new?

As we leave summer behind in the UK, many are now looking towards Christmas, wondering how they will be able to cope, how they will be able to pay for the children’s presents.  Christmas is a very difficult time of the year for many, when emotional blackmail can actually see the majority of us spend more than we had bargained for.  What are the pitfalls to watch out for?

Do not over spend!

While it may seem obvious, this is the major downfall of many people who are already sitting poised with their credit cards to hand and their eye on the next big gift for their loved ones. This is also the time of the year when your credit card will melt, racking up masses of debt which many people will find difficult to pay off in the new year.  This is the time of you when you need to stay focused and keep to your budget - no matter how hard that may be!

The credit card culture in the UK has never been more alive, and with the opportunity to purchase more and more gifts online, this Christmas seems set to be a bumper one for the retail sector.  Historically, even in times of doom and gloom, people have always found money for the Christmas period, and while it may take until next year to pay off that debt, few will be sitting back on their hands.

How can you ensure that you do not fall into the debt trap?

While it is easy to advise staying within your budget, how many of us will actually do that? How difficult is it not to buy that extra little gift for a loved one, what really is the price of that little smile on their faces as they open their gifts on Christmas day.  Unfortunately to many people, Christmas is a very traumatic time, and these are the people who need to ensure they spend within their limits.

Calculate what you can realistically expect to spend, and if you know that you are going to over spend, then why not look at a loan rather than very expensive credit card debt.  A loan is more structured and provided that you arrange a payment plan that you can afford, you will be able to reduce your debt in a controlled manner.  These minimum payment rules on credit cards can often cause major problems!  

While the credit card industry has spent billions of pounds developing and introducing Chip and Pin technology, why have Mastercard now decided to introduce the so called PayPass technology into the UK, for transactions under £10?

The PayPass system operates in a similar way to the Oyster system which is used on the London Underground, whereby the consumer simply passes their card across a reader and the funds are taken from their account - no Pin number, all automatic.  While the system has the potential to have a major impact on reducing queues in a number of retail outlets, there is also the potential for fraud.  

The operators of the system admit that while the system is only available for individual purchases up to £10 in value, there will be no security checks at all until the £50 level has been reached in quick fire accumulated purchases - at this point the user will need to input their PIN number.  While the £10 limit does offer some limitations for fraudulent activity, the £50 security barrier is a little higher than many feel comfortable with.

The system itself is used in 19 other countries across the world, and the technology currently has a client base in the region of 16 million.  Many are now questioning why the industry spent so much money developing Chip and Pin in the UK, only to revert to PayPass for smaller purchases? 

Initial research has shown that it may take some time for the UK consumer to actually accept the system - a consumer who over the last 10 years has been constantly reminded of the need for security!