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Banks looking for consumers with 'healthy finances'
14/04/2008 12:34:00
Banks are more willing to offer monetary support to consumers whose finances are in a "healthy" state, one expert has warned.
Fool.co.uk warned that "financially challenged" consumers need to look very closely at their money and to see how they could save to make themselves more attractive to banks.
The 'haves' and the 'have-nots', the consumers who have equity in their homes and those who do not, are being treated very differently by the banks, the company said.
David Kuo, head of personal finance with the advisors, said that the need to save is more important than ever as credit becomes harder to attain.
"What you have, is what you have got. If your pay check comes in, you have to make it last you for a month whereas before you could rely on your credit card to tide you over," he said.
On April 10th 2008, the Bank of England decided to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to five per cent in order to meet the two per cent target for CPI inflation in the medium term.
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