The Great Credit Card Con

The definition of a con is to persuade someone to do or believe something by lying to them. Now, "con" may be a strong word—or perhaps you may believe the wrong one—as I expect you likely have a credit card, use it, and see a great benefit.

I remember growing up and saying to myself, “I will never take out credit; I will only buy what I need with the money I have available.” But life happens! You get invited to Mauritius for a beautiful wedding at a five-star hotel with your partner. You don’t want to miss the opportunity or be seen as unable to afford nice things. So, you take out credit and go on that amazing holiday!

You only remember the good parts, and so you’re led to believe you made the right choice. Fast forward, and you haven’t quite paid off that holiday when Christmas comes along. Your kids are desperate for that new toy, and you don’t want to upset or disappoint them. Since your first experience with the credit card went well, you decide to use it again.

The bank increased your limit—if they think you’re good with money, you must be, right? Surely, they’re not just trying to get you to spend more so that they can pocket more interest? You’re confident you’ll get a pay rise soon, so you’ll just pay it off with that. Sound familiar? Like many things in life, debt can snowball. You find you’ve racked up more debt. You’re making your monthly payments and not falling behind, so you still think you’re in control. But perhaps you’re not keeping a close eye on your balances anymore. You may not realise it, or perhaps you don’t want to admit it, but your head is in the sand.

This may sound frightening, so brace yourself. If you have a credit card balance of £1,500, pay only the minimum, and your interest rate is 22.1%, you’ll be paying that off for 21 years and 11 months. That’s longer than some mortgage terms I arrange for clients! And what do you have to show for it?

I’m not writing this to upset anyone, but coming to terms with your finances and how much they may be holding you back in life could be a turning point. This is a taboo subject. You don’t talk about debt with friends or relatives, afraid of what they might think. You may be surprised to learn that many couples don’t talk about their debt until they can’t switch their mortgage deal and have to reveal the truth about why that is.

Of course, credit cards have their benefits. They can get you out of a tricky situation when the car breaks down and you have no choice because you need to get the kids to school, commute to work, or help Granny with her weekly shop. Credit cards can also help build your credit file, demonstrating to lenders that you’re reliable and pay your debts. This can increase your chances of securing a mortgage, especially if you have a small deposit.

If you’re seriously struggling with debt, there is support available, such as Citizens Advice and StepChange. However, please be extremely cautious of companies claiming they can consolidate all your payments into one smaller, more manageable payment without affecting your credit (scarily a common claim heard on Heart Radio, for example). This often refers to an Individual Voluntary Agreement (IVA), which does show on your credit file and does have a massive impact on getting a mortgage, remortgaging, raising equity, or any other mortgage-related activity for six years, its basically as bad as bankruptcy. If you do find a lender willing to help, they will likely be a specialist lender charging very high (usually unaffordable) interest rates.

So, this is your friendly reminder to take look at your finances! . Very few people are completely debt-free, and we should be open and honest with each other. By raising awareness of how we’re being driven to borrow more, we can make more informed choices, keep more money in our own pockets instead of the big banks’, and live financially stress-free lives. You're not alone!

Sarah x

Director of GoGreen Financial Services ltd

info@gogreenfs.co.uk

01635 242939

How Going Green can help First time buyers borrow more!

Ben Baccas putting his friend and girlfriend to work while setting up his new home—teamwork makes the dream work!

Being a first-time buyer in the UK has long been a privilege reserved for a select few. With property prices soaring and wages lagging behind, only those willing to make significant sacrifices—like “giving up their daily avocado toast”—stand a chance of saving a deposit amid their usual expenses. Currently, the average age of a first-time buyer is over 30, and the number of new entrants into the market has reached a historic low.

However, don’t lose hope just yet! Lenders are now offering numerous opportunities for first-time buyers who may be able to borrow up to 5.5 or even 6 times their annual salary, making it easier for them to climb onto the property ladder.

You may be asking how lenders can get away with lending so much, won’t this lead to another crash? Well, lenders are absolutely adhering to strict governance and rules to ensure that buyers can manage their payments but there are ways of helping by lending more sensibly.

These particular latest mortgage products mandate that properties possess a green energy performance certificate rating of A or B. This requirement benefits buyers by reducing their fuel bills, as these eco-friendly homes are typically more energy-efficient. The cost savings associated with lower energy expenses enable lenders to offer higher loan amounts, confident that buyers can manage their mortgage payments due to these financial advantages.

I recently had the pleasure of helping my friend and property solicitor Ben Baccas navigate the journey to buying his first home in London. Ben shared his experience, saying, “I’ve known Sarah for a long time and she has started from the bottom and worked to the top! She is very knowledgeable about the mortgage market and adds a humorous, friendly touch. GoGreen will look after your mortgage needs.”

I am eager to assist as many first-time buyers as possible in 2025, so please, if you’d like to explore one of these or many other products available, get in touch for your free initial consultation.

Contact info@gogreenfs.co.uk

Merry Christmas and Happy New Year!

GoGreen Financial Services Achieves Plastic-Free Approved Status!

We’re overjoyed to share some fantastic news! GoGreen Financial Services has been awarded Plastic Free Approved Status for our efforts in reducing single-use plastic within our business. This recognition comes as part of our journey toward sustainability, and we couldn’t be prouder.

Sarah, Director of GoGreen, accepted the award from Nikki Coome, representing the incredible team at Eco-Friends. This milestone highlights our commitment to creating a more sustainable future and reflects the collective efforts of our entire team.

With Surfers Against Sewage facilitating - Eco Friends and their incredible community of local businesses and sustainability allies have removed an astounding 162,300 single-use plastic items from circulation this year in Newbury and Thatcham — a remarkable increase from 108,252 items in October 2023! Every reusable swap, refill, and conscious decision has played a role in this achievement, and at GoGreen, we’re incredibly proud to have helped towards this impactful milestone.

If you want to become a plastic free ally, whether you are a business, community group, or individual. Contact Eco-Friends on plasticfree@eco-friends.org.uk

In addition to receiving this award, Sarah has taken up a PR volunteering role with Eco Friends. Through this role, she’ll continue championing sustainability, amplifying the voices of others striving for change, and fostering impactful collaborations within our network.

Finally, If you want to help even further, we are offering a special way to support Eco Friends. When you refer friends and family to GoGreen, you receive a £50 thank-you referral bonus when their mortgage completes. Now, you can choose to donate your bonus directly to Eco Friends, helping fund their important work toward a plastic-free future.

If you’d like to make a difference and refer someone to GoGreen, contact us today and let us know you’d like to donate your referral reward to Eco Friends.

Thank You for reading as always!

GoGreen Financial Services ltd