Podcast Summary
Understanding the Slowdown of Inflation: Inflation has decreased to 2.3% but prices are still higher than pre-pandemic levels. Learn about the impact on mortgage and savings rates, and how to get the best value for travel money.
While inflation has dropped to 2.3% from 3.2%, it's important to remember that this doesn't mean prices have actually fallen. Instead, it means the rate of price increase is slower. This news may bring some relief, but it's important to note that prices are still higher than they were before the pandemic. In other news, Ryan Reynolds and Keith discussed a deal for six months of Paramount Plus Essential Plan for $15 a month through Mintmobile.com. Martin Lewis discussed the impact of inflation on mortgage and savings rates, and shared tips on getting the best value for travel money. He also discussed the best ways to complain and shared some news about potential election speculation. Overall, the podcast covered a range of topics, from financial tips to entertainment news.
Unexpectedly high inflation despite energy price cap drop: Despite a decrease in inflation to 2.3%, it's still above the Bank of England's target, making an interest rate cut less likely. Food prices remain high, and the economy is growing, but inflation remains a concern for policymakers and markets.
The latest inflation figures showed a decrease to 2.3% in April, which was higher than expected, making an interest rate cut less likely in the near term. The energy price cap drop contributed to the decrease, but it's still not at the Bank of England's target of 2%. Swap rates, which predict long-term interest rates, remained stable after the announcement, indicating that the markets expect interest rates to stay the same for now. Food prices are still high, and the economy is growing, but inflation remains a concern. The prime minister described the current inflation level as "back to normal," but it's still above the target, which could impact political decisions regarding an upcoming general election. Overall, the inflation figures were not great news for those hoping for an imminent interest rate cut, and the markets expect more rate cuts later in the year.
Energy prices set to drop by 7% on average, but potential increases later: People can save 3% by staying on the price cap, or more by choosing a fixed deal, using a comparison site to find the cheapest option.
Energy prices are predicted to drop by an average of 7% starting in July, but there may be increases in the following months. This means that people can save an average of 3% by staying on the price cap, but going for a fixed deal on the market could result in savings of more than 6%. It's recommended to use a comparison site to find the cheapest fix and secure peace of mind against potential price increases. The energy price cap drop also allows the government to claim credit for lowering energy prices, despite it being largely influenced by market conditions.
Consider fixing energy prices at home for potential savings: Explore fixing energy prices for cost savings and use specialist cards abroad for optimal exchange rates and cash back
It's a good time to consider fixing your energy prices at home due to potentially lower worldwide energy prices. Martin Lewis suggests this as a way to save money and have peace of mind. Additionally, when spending money abroad, using a specialist overseas card without a non-sterling exchange rate fee can result in near-perfect exchange rates and even cash back, making your spending more beneficial. Two examples of such cards are the Chase Mastercard and the Halifax Clarity Mastercard, with the latter offering cash back as an added benefit. Keep in mind, there are risks involved in both energy and foreign exchange markets, so it's essential to do your research and consider the potential consequences before making any decisions.
Paying in local currency with credit card: Using a credit card with a good exchange rate for local currency transactions is more cost-effective than using pounds or sterling or getting cash from ATMs abroad.
When traveling abroad, it's more beneficial to pay in the local currency using a credit card with a good exchange rate rather than paying in pounds or sterling. This is because your credit card company will typically offer a better exchange rate than overseas banks or cash machines. Additionally, if you need cash while abroad, it's recommended to get a specialist card with no fees for withdrawing cash from ATMs and withdraw it at the airport for the best exchange rate. Another important tip is to make sure you make a transaction within 90 days using a card like the Halifax Clarity Mastercard to receive a reward, such as £20. Overall, using a credit card with a good exchange rate and paying in the local currency is the most cost-effective way to spend money abroad.
Using a Chase card for foreign transactions offers a better exchange rate than most methods: Chase cards provide a near perfect exchange rate and 1% cash back for foreign transactions, making them a reliable choice for travelers
Using a Chase card for foreign transactions is generally a good option due to its near perfect exchange rate and the added benefit of earning 1% cash back. This is because the exchange rate is applied on the day of the transaction with credit and debit cards, whereas with cash or prepaid cards, the exchange rate is applied on the day of the exchange. This difference can lead to confusion when comparing rates from different transactions on different days. While it's impossible to predict currency exchange rates, using a half and half approach by locking in half of your currency at a good rate before your trip and using a spending card for the other half can help mitigate the risk. Overall, a Chase card is likely to provide a better exchange rate compared to most Bureaus Des Champs or other methods, making it a reliable choice for travelers.
Maximize travel savings with the right bank account or card: Consider switching to Santander Edge or First Direct for top-tier overseas cards and incentives. For families, prepaid cards like Hyperjar, Nationwide Flex 1, and Starling Kite offer near-perfect exchange rates and fee-free ATM withdrawals for minors.
For individuals looking to maximize their savings and earn cashback or rewards while traveling abroad, considering switching bank accounts to obtain certain cards can be beneficial. Two such cards are the Santander Edge and First Direct, which offer significant incentives for account switching, including a large sum of money and top-tier overseas cards. These cards provide near-perfect exchange rates and attractive features, such as high-interest savings and cashback on bills, making them worth considering for frequent travelers. For parents with teenagers going abroad on school trips, there are also specialized prepaid cards designed for children under 18 that offer near-perfect exchange rates and fee-free ATM withdrawals. Some popular options include Hyperjar, Nationwide Flex 1, and Starling Kite. These cards can be a convenient and cost-effective alternative to carrying cash while traveling with minors. Additionally, it's essential to be aware of the various ways to obtain and manage holiday money, as many places no longer accept cash and instead prefer card payments. Overall, carefully researching and selecting the best card or account for your specific needs can help you make the most of your travel budget and ensure a more enjoyable and stress-free experience.
Using a credit card for cash transactions: Risks and fees: Credit cards come with risks and fees for cash transactions. Debit cards are usually a better option. However, for overseas travel, a specialist credit card may offer cost savings. Be aware of potential credit score impacts and country-specific payment challenges.
Using a credit card to withdraw cash or load a prepaid card comes with potential risks and fees. It's generally better to use a debit card for cash transactions. However, if you're traveling overseas and have a specialist overseas credit card, taking cash out in a single transaction may be the most cost-effective option. Be aware that making frequent cash withdrawals, especially if you have an imminent important application to make, may negatively impact your credit score. Additionally, some banks, such as Santander and Chase, do not charge fees for withdrawing cash from their ATMs in certain countries. When using a credit card for spending abroad, be prepared for potential quirks and challenges, as different countries have unique payment systems and preferences. Lastly, threatening to involve the Ombudsman can be an effective tactic when dealing with financial companies that are not being truthful or fair.
Understanding the dynamics of customer complaints: Persist in communicating with the firm, remember consumer rights override warranties, and get creative to resolve complaints
When dealing with customer complaints, it's important to understand the dynamics at play. For instance, going to an ombudsman might seem like a daunting or expensive option, but in many cases, the firm may prefer to resolve the issue directly to avoid paying the ombudsman's fee. Perseverance and clear communication are key. Another important point is that when encountering issues with products or services, remember that your consumer rights override any warranty. If an item is faulty, you have the right to return it to the retailer for a refund or replacement, regardless of any warranty terms. Lastly, creativity and persistence can go a long way in resolving customer complaints. For example, advertising your house as a showhome to get builders to address snags or sitting at the counter of a store to get a replacement microwave. Remember, warranty shm warranty!
Know Your Consumer Rights Beyond Warranty: Even after the warranty period, consumers have legal rights to seek remedies for premature product failure, missed appointments, and other inconveniences. Don't let businesses dismiss your concerns, assert your rights!
As a consumer, you have legal rights that go beyond the warranty period. If a product breaks down prematurely and you've not misused it, you can assert your consumer rights to seek a remedy. This was highlighted in various examples shared, including a microwave, an iPhone, and a K-tel record from the past. Even if you have a missed appointment with a gas supplier or face other inconveniences, you can claim compensation. A consumer's first line of defense is their statutory consumer rights, not the warranty. In extreme cases, one can even take the matter to court, as a listener did back in 1974 with a faulty record. So, don't let businesses dismiss your concerns by saying you're out of warranty. Stand up for your rights!
Possible UK General Election Announcement Imminent: A UK general election could be announced as soon as today, with the BBC 6 o'clock news being a likely platform for maximum impact.
There are strong indications of a possible general election outcome in the UK, with a cabinet minister suggesting a 60% chance it could be announced as soon as today. If an announcement does come, it's speculated that it could be made during the BBC 6 o'clock news for maximum impact, potentially as soon as this week. However, if it's not this week, it could be delayed until after the summer. The BBC 6 o'clock news is the most-watched news program, making it an ideal time for an announcement as it would give no other outlets a chance to respond quickly. A cabinet meeting is scheduled for late afternoon, and if an announcement is coming, it's expected to be made around that time. Martin Lewis, the host of the podcast, is known for his money-saving expertise but occasionally covers political news. He's not making any definitive statements but finds the current situation consistent with an impending election call.