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. 

MEMBERS of the Welsh Government and Pembrokeshire County Council toured Augustus Grange, a new housing development in Haverfordwest created by Lovell in partnership with housing association Pobl Group.

The development, located off St David’s Road, will provide 115 two and three-bedroom homes, including 36 homes for open market sale and 79 affordable homes. Of these, 37 will be available through Shared Ownership, and 42 will be for affordable rent.

The Welsh Government has contributed more than £8.6 million through its Social Housing Grant to fund the affordable rent homes, addressing a significant demand for accessible housing options in the area.

A collaborative vision

During the visit, Cabinet Secretary for Housing and Local Government, Jayne Bryant MS, praised the project’s contribution to increasing housing availability.

“Delivering more homes is a key priority for this government, and it’s fantastic to support Lovell and Pobl’s vision for Augustus Grange,” she said. “This investment will provide high-quality, affordable housing for individuals and families in Haverfordwest.”

Pembrokeshire County Council’s Leader, Cllr Jon Harvey, and Cabinet Member for Housing, Cllr Michelle Bateman, also attended alongside other officials, including Gaynor Toft, Head of Housing, and David Meyrick, Housing Strategy and Affordable Housing Manager.

Cllr Bateman highlighted the importance of the development: “Increasing affordable housing is a key priority, and it’s fantastic to see a mix of open market, affordable, and social rent homes being developed in our county town.”

Progress on display

Lovell and Pobl showcased the site, including the sales office and a newly launched Lambourne-style show home. The Augustus Grange development is Lovell’s first project in West Wales and represents a key part of its growth strategy.

“We are incredibly proud of Augustus Grange,” said James Duffett, Lovell’s Regional Managing Director. “This project demonstrates our team’s achievements, combining the best of our partnerships and sales expertise to create a development people will be proud to call home.”

Designed for community

Claire Tristham, Director of Development at Pobl Group, underscored the collaborative effort behind the project.

“This development secures much-needed housing for the community, designed to meet high sustainability standards, ensuring affordability in both rent and heating costs,” she said.

The site’s proximity to Haverfordwest’s rich history and natural beauty further enhances its appeal. Future residents will enjoy access to the Pembrokeshire Coast National Park, Haverfordwest Castle, and excellent shopping and commuter links.

To learn more about Augustus Grange, visit www.lovell.co.uk or call 01437 468 024. Sales offices are open Thursday to Monday, 10:00am to 5:00pm.

A FOURTH call for a south Pembrokeshire dog boarding and day care centre, refused on multiple occasions and dismissed on appeal has been submitted to planners.

Michelle Bramwell, of Little Langdon, near Kilgetty, had submitted re-sited plans for a commercial dog boarding and day care centre at Little Langdon following the previously-refused applications and appeal.

A supporting statement by agent Hayston Developments & Planning Ltd said: “The application involves the erection of a single boarding kennels building providing a total of 12 kennels together with various ancillary facilities, with upgrading of the existing vehicular access together with parking, landscaping and biodiversity enhancements.

“The application follows on from three previous applications for a similar form of development, which were refused by the council with the more recent application also having been dismissed at appeal in October 2023.

“This planning practice has been brought in to seek a solution for the development of the site. Having reviewed the previous applications and the appeal decision, the scheme has been reviewed with a materially different proposal now being presented for consideration by the council. The revisions made are significant and have significantly reduced the impact of the development with additional planting and provision of a hedgebank.

“This revised submission provides additional information which demonstrates that such a location is justified and that with the economic and social benefits highlighted and would align with the thrust of TAN 6 which encourages business developments within the countryside. 

“Whilst it is acknowledged this revised proposal would still have some impact upon the countryside, it is contended that those impacts have been minimised such that it would be compatible with the capacity and character of the countryside in which it is located.”

It says that, while dismissing the appeal, “the Inspector concluded that such a business in this location could be acceptable in principle, the Inspector expressed concerns over the scale, siting and visual impact of the proposed development and how possible outdoor noise disturbance from associated activities could be satisfactorily controlled, such as through mitigation measures”.

It concludes: “In our view, the changes made are such to in effect to represent a materially different scheme from that which was before the Inspector in 2023. Further, certain aspects of the proposal, including its layout and operation, have been clarified by the applicant.”

The agent, in previous applications has said: “One of the key benefits of such a proposal, as fully acknowledged by the appeal Inspector, was that with the proximity of several local visitor attractions it would provide a useful service to their customers, amongst other clients.

“As part of the appeal application, it was contended that with staycation on the rise and the increase in pet ownership, boarding kennels and day care services are in demand.

“The proposal would allow tourists to visit, knowing their dogs can board within a reasonable distance of their holiday accommodation. It would allow tourists to visit nearby attractions which quite often have no-pets policies, such as Oakwood, Manor Wildlife Park, the Dinosaur Park, Heatherton and Folly Farm.”

The latest proposal will be considered by county planners at a later date.