Business

Rising living costs are increasing credit card usage

Published

1 month ago

November 19, 2024

The recent cost of living crisis has affected millions of people across the UK, with 46 million people reporting that their cost of living has increased since November 2021. Costs are continuously on the rise, and unfortunately many people are struggling to pay bills on time, or at all, and afford basic necessities like food, clothes, and heating.

In order to get by, more and more people are using alternative methods to make ends meet. This includes buy now, pay later schemes, relying on credit cards, or taking out personal loans. Whilst this can work for some in the short term, it has the possibility of leading to long term implications like debt and a bad credit rating.

Increased reliance on credit cards

When used responsibly, credit cards can be a great tool for spreading costs and could help with building a better credit score. However, the pressures of inflation has led to a significant growth in credit card usage, with a 0.8% rise in total credit card spending year-on-year in the UK.

More people are having to use credit cards to get by on a day-to-day basis which is leaving some people in debt. In fact, outstanding credit card debt reached £70.1 billion – an increase of 7.02% in the year to April 2024.

Once you’re in debt it can be incredibly difficult to get out of it. You need to have enough income to cover your living costs and day-to-day expenses as well as your debt in order to start reducing it. Unfortunately, the inflated living costs are making it even more difficult for people to break the cycle of debt, and are leading to poor credit scores.

How a bad credit score can affect you

Carrying a lot of debt or failing to make payments on time could affect your credit rating. This, in turn, can lead to several complications regarding some financial products or your ability to rent.

You are less likely to be accepted for mortgages and loans

Bad credit makes you look less appealing to mainstream lenders, who will be less likely to offer you a loan or accept a mortgage application as they view you as high risk. Similarly, a landlord or estate agent may be unlikely to consider a rent application for the same reason.

Qualifying for a credit card may be difficult

Like with loans, lenders will check for debt and a low credit rating. If your credit score is poor and you have a significant amount of debt, it’s much more likely that your credit card application will be refused.

Getting car finance can be tricky

Getting car finance is another difficulty when you have bad credit. Lenders will be much less inclined to offer you car finance if you have higher risk factors such as debt and a history of missed payments.

Fortunately, there are still ways to finance a car with bad credit. It’s important to note that whilst it is possible to get car finance even with a bad credit score, you do need to be sensible about it. Always do your research around which car would be suitable for you and what will match your budget.

You might face larger interest rates

If you do get accepted for a loan, mortgage, or credit card whilst you have bad credit, it’s not unusual for your repayments to be much higher than that of someone with a good credit rating. Lenders do this as a way to better protect themselves since the risks they are taking are higher when someone has a poor credit history.

Your car insurance premiums could be higher

A bad credit score could lead to higher auto insurance premiums. Whilst it’s unlikely you’ll ever be rejected for insurance based on your credit score, it is likely you will have less available options and the premiums on offer could be much more costly.

Financial products can still be beneficial

When used correctly, credit cards, loans, and other financial products can be advantageous in helping you make larger purchases such as cars or houses. However, it’s important to note that whilst they can be a good tool for spreading costs, it’s essential to conduct thorough research when considering a financial product as you are responsible for your own credit.

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

Published

1 day ago

December 21, 2024

Tom Sinclair

PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

Business

52 homes to be built in Roch as scheme gets final sign-off

Published

3 days ago

December 20, 2024

Bruce Sinclair - Local Democracy Reporter

THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

Business

World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

Published

3 days ago

December 20, 2024

Richard Lewis

AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”

“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.