Should you sell your gold?

Every day we are bombarded with adverts from companies wanting to buy our old gold jewellery. The price of gold is rising throughout the world and has hit $1,000 an ounce.
So should we sell now and how do we go about choosing the right company?
You can sell your gold at some High Street jewellers or use an online company where you send your items to them in the post. These companies will usually phone or e-mail you a quote which you can accept or reject but some will just send you a cheque which you need to return within a set period if you are not happy with the amount.
There are also gold parties and temporary units cropping up in shopping centres looking to buy your unwanted gold.
Some of the online and postal companies that have been around for years and also well known High Street jewellers are trustworthy in their dealings and you will get a fair price.
However some companies, such as the new ones advertising on TV, are only offering as little as20% of the value of the gold.
Gold dealing has become big business recently and many companies are forming just to make a quick profit and will close down just as quick when gold prices start to dip. These companies will care very little for fairness or customer service.
So before you sell your gold do a quick search on the company.
See how long they have been trading for and check online chatrooms and forums for any negative comments. If in doubt contact the Trading Standards to see if any complaints have been received. The current price offered can vary from £2 a gram to £7.30 a gram so it is worth shopping around. Remember the price of gold varies daily so your quotes will vary slightly from day to day.
There are alternatives to selling your gold. If you only need a short term loan you may be better going to a Pawnbroker. They will normally loan you half the value of your jewellery and charge in the region of 8% per month. This is not ideal for a long term loan.
Selling your old gold in the present climate can be a wise move, but be sure to do your homework on the company before you do.

Government to set up Consultation to look into Debt Management Companies

Many people who are in debt contact debt management companies.
These companies will negotiate on their client’s behalf and agree with the creditors to make smaller monthly repayments, usually over a longer period and sometimes freeze interest and charges.
Up to 150,000 people use these services every year and for a lot of people in debt this can be a lifeline.
However, lenders are under no obligation to accept lower payments and do not always help customers in severe difficulties.
Debt management companies charge a fee for their services which can be very costly and this is not always fully explained to or understood by their customers.
Citizens Advice and National Debtline will help people draw up plans to approach borrowers for free.
It is estimated there are 800 debt management companies operating in the UK and these are not currently regulated.
The Government has set up a consultation to look into the need for regulation and to see if customers are getting the appropriate help and advice to deal with their debts. As it stands these companies are able to behave and charge as they wish acting under no law or guidance.

Data held by Credit Reference Agencies

The data help by credit reference agencies:

• Name
• Date of Birth
• The electoral register
• Credit payment history
• County Court judgements
• Bankruptcy and administration orders
• House repossessions

Looking for an unsecured loan or credit card

Unless you are in great financial shape getting a loan or credit card is not as easy as it used to be.
Lenders are treating applicants on an individual basis taking into account their credit history and more people than ever are being refused loans and credit cards.
Companies are citing very different monthly interest rates with the best credit scores getting the lowest rates and the higher rates being charged for those deemed less creditworthy. So the applicant’s personal circumstances will determine the interest rate charged.
When applications fall into the high risk category, if the lender decides to go ahead, they will be charged considerably higher than someone with a good credit history.
It is not just new applicants that are being assessed. Existing credit card holders are getting letters saying that due to the economic climate their interest rate is being increased and in some cases their credit limit is also being reduced.
Of course, for those who are unable to get a credit card from the mainstream companies there are now lots of credit card companies who are targeting those with poor credit ratings and people who need to improve their credit scores. Aqua, Monument and Vanquis are heavily into this market and charge extremely high interest rates – up to 59.9% APR.
It is therefore very important that you check your credit rating and are fully aware of your financial position in order you can get the best deal possible when you are looking for a loan or credit card.

Ban on Credit Card Cheques

It looks like the Government are taking action to ban credit card cheques.

These are the blank cheques credit card issuers send to their customers giving them another way to spend money on their credit card account and getting further into debt then they intend to.
The Government have been under pressure for quite some time to ban these cheques.
Earlier this year they announced they would stop unsolicited cheques being sent out but that customers could opt in to use them.
The blank cheques are proving controversial because the charges for using them are not clear, with the user incurring a handling charge for each cheque used, the interest free period does not apply and the usual protection of buying with your credit card does not apply either.

The level of debt is rising with the recession, up to nearly £55bn in the UK and the Government wants the credit card companies and other lenders to take more responsibilty with its customers.

Research shows that 1 in 5 people have had their credit card limit raised within the last year without asking for it.

The government are also looking into the charges and fees charged by credit card companies.

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