The national money charity released these latest figures which detailed the dire financial situation of British families who face high levels of debt. Interest payments alone were found to total £173 million a day as Brits were said to owe approximately 122% of their annual earnings in debts, which included mortgage repayments.

Unfortunately, the situation is only expected to worsen, with predictions for the first quarter of 2017 putting the estimated personal debt level at £2.045 trillion for the whole of the UK.

Unemployment and redundancies

On top of the high debt statistics revealed for February, the number of people unemployed and facing redundancies also increased, making this debt harder to manage. As many as 1,797 people were found to have been made redundant each day across the month with property repossession occurring every fifteen minutes.

On top of this, more than three hundred people declared insolvency or bankruptcy as the debt became too much to handle and of those who were unemployed, more than 850,000 had been so for more than twelve months.

Handling debt

According to the figures, the Citizens Advice Bureau (CAB) dealt with more than 8,500 new problems associated with debt on each working day. The amount of lending also increased as individuals looked for ways to address their debts, with net lending by Banks and Building Societies reaching 1.8 billion.

Of the loans taken out over the past few months, one third of them are expected to be part of debt consolidation. The average size of this consolidation will be almost £10,000 (£9,800 to be precise).

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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From the perky likes of former E4 favourite Miquita Oliver to the ‘woe is me’ charm of reality TV star Kerry Katona, spending yourself into oblivion has become more fashionable to celebs than donning a Juicy Couture jumpsuit.

After all, when it comes to embracing a lavish lifestyle filled with dinner dates at Nobu, month long retreats to the Maldives and a bathroom full of Kiehl moisturiser, no self-discerning celeb would let a pesky obstacle like the taxman get in the way.

The latest celeb to cash in all their chips before the ripe old age of 30 is former Popworld presenter Miquita Oliver. Having hit the spotlight before she had even conquered her GCSEs, some may argue that she fell into the ‘too much too young’ hall of fame.

But having amassed a staggering unpaid tax bill of more than £174,000, the 27-year-old Oliver can no longer appeal to the taxman under the guise of an inexperienced juvenile.

Speaking about Oliver’s financial plight, her publicist said; ‘We can confirm that Miquita Oliver filed for bankruptcy in November 2011. She has many projects in the pipeline both here and in the US for 2012.’

The spectre of financial ruin has also hit other well-known celebrities, such as former girl band member Kerry Katona.

Having regularly featured in the tabloid press for her erratic behaviour, including a much publicised drug habit, it came as no surprise when Katona declared bankruptcy in 2008 for a sum that almost hit the half million mark at £417,000. A £350,000 stint on Celebrity Big Brother helped the reality star to balance the books and her accounts into a crowd pleasing credit.

Duchess of York, Sarah ‘Fergie’ Ferguson, also proved that bankruptcy doesn’t discriminate as debts of nearly £5million almost saw her taking the B list plunge.

Mounting debt problems could see you spiral further in financial difficulty. It could be advisable to seek professional debt advice from ClearStart before you get into genuine trouble.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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While many seasoned travellers would be horrified by the thought of generous buffets and other all-inclusive trimmings, or of having to endure the nightmare task of scouring the internet for all the deconstructed elements of a one-price pays all holiday, others may be delighted to know that a DIY holiday could equal more Euros or dollars in the vacation spending pot.

Comparing two all inclusive options with ‘go it alone’ prices for a Holiday to Turkey, The Daily Mirror’s Travel Editor Marjorie Yue, found that the latter came out on top. Looking at prices in 2011, a stay at Club Del Sol Aparthotel on an all-inclusive basis in a one-bedroom apartment (with Gatwick flights and transfers through First Choice) totted up to £2,627. In comparison, a DIY version using resources such as lowcostholidays.com came in at a healthier £2,348.

While the figures clearly paint the rosiest picture for DIY holidays, Yue argues that an all-inclusive holiday has a host of other benefits that cannot readily be ignored:

“The joy of an all-inclusive is not having to count the pennies while you’re away. Also worth bearing in mind is that packages are ATOL-protected, unlike DIY holidays.”

Naturally, there are exceptions to the DIY equals savings rule and a memorable £59 2-night package to Portugal (including B & B accommodation and flights) is one of them. Similarly, an attempt at a ‘go it alone’ holiday to Mexico saw me paying over £900 for the flight alone in the height of summer, only to find that a 2-week all-inclusive under this figure could be found after a few minutes of online trawling.

Whatever option you choose to take on your next summer or winter break, it definitely pays to do your research. Any Brits who are tempted to overspend on their holiday this year should be wary of falling further into debt as a result.

If you do find yourself becoming overwhelmed by debt issues, seek the advice of a specialist such as Clearstart.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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But if that thought involves even a mild foray into your nearest pound shop, your other half is bound to be less than pleased. In a world of possibilities, sticking to a miserly Valentine’s budget and keeping the fires of love burning bright are all possible with our top ten guide to bargain Valentine’s gifts:

1.    The last rolo: Recreate the charm of an iconic advert by handing your loved one that final rolo.  Buy a ‘last rolo’ candle encased in a love-heart shaped red box for just £5.99 from Ebay.

2.    Say I love you with breakfast in bed: Use an ‘I Love You’ toast printer from iwantoneofthose.com to turn your Valentine’s breakfast into a tear fest for just £2.99.

3.    Spice up you life: A pair of Salt and Pepper shakers in the shape of lovers will bring a smile to the most stoical of Valentine’s faces for £4.95 from Prezzy Box.

4.    Buy a gift straight from Heaven: For just £9.79, you can buy a ‘name a star’ kit from play.com and ensure you take your love to new heights.

5.     Make it personal: Make your Valentine feel extra special with a set of personalised Love Heart sweets for £6.99 from lovehearts.com.

6.    Toast Valentine’s Day in style: Most mere mortals would be happy with a glass of ordinary champagne, but for those who wish to go the extra mile for their sweethearts, try Sparkling Gold Cuvee. This champagne is infused with edible flakes of genuine 22 carat gold. Available from £12.99 for a 200ml bottle at firebox.com.

7.    Log on for love: Buy a heart shaped mouse for £4.89 from redsave.com and click your way into your partner’s heart.

8.    Pamper her: Treat your loved one to a full makeover day with photo shoot from £10 at lastminute.com.

9.    Have a slap up meal: Enjoy a 2 or 3 course meal for £15 and under at a variety of restaurants listed on london-eating.co.uk.

10.    Say it with words: Write your own personalised love poem and have it framed for £17.50, including UK delivery at photofairytales.co.uk.

Debt advice

Unfortunately, there are likely to be a number of love-struck Brits who look to break the bank this Valentine’s Day and subsequently overstretch themselves financially.

If this is the case, you could seek Debt Advice from Clearstart to address your debt problems.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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There are some resorts which, although they may not be the cheapest, welcome young skiers with open arms and even provide a nanny service so that the adults can slope off for some alone time.

Here are five of the best;

Claviere,Italy:

Nestled in impressive mountain scenery, this ski resort boasts a charming setting as well as offering a host of child-friendly facilities. The resort offers a range of childcare and children’s clubs making it the ideal destination for a family ski holiday.

Flaine, France

Families will feel right at home at this French resort. As well as a wide offering of childcare and children’s clubs, the resort has a range of leisure activities that will appeal to families such as swimming and ice skating. Families can also spend quality time in the resort’s numerous eateries.

Val di Fassa, Italy

Val di Fassa, located in the picturesque setting of the Italian Dolomites, offers family fun with added extras such as a swimming pool, ice rink and bowling alley.

Kranjska Gora, Slovenia

An ideal resort for families, Kranjska Gora caters to the needs of both adults and children alike. Ski clubs are open to children from 6 months to 11 years and with a number of slope ranges and professional tuition on offer, the whole family can learn to ski together.

Scheffau, Austria

As family-friendly resorts go, Scheffau is one of the best. Kids clubs and a host of winter activities make a stay at Scheffau a fantastic family experience.

Debt problems

Although skiing holidays can be fun for all the family, they are also likely to be expensive.

Mounting debt problems could see you spiral further in financial difficulty. It could be advisable to seek professional debt advice from ClearStart.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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New research suggests that the number of daily redundancies, people falling further into debt and individual cases of long term unemployment has increased during the last quarter of 2011.

Credit Action, the leading debt charity, has published their January debt statistics to reveal that personal debt levels are soaring.

The average household debt, excluding mortgages, was a massive £7,982 in November, slightly less than October’s figures. However, the average household debt including mortgages has actually increased.

As millions plunge further into long term unemployment, personal finances are taking a huge hit. Shockingly, 868,000 people had been officially unemployed for over a year between August and October 2011.

With 1,764 people being made redundant on a daily basis between August and October last year, it might not come as a surprise that millions of Brits are struggling to keep up with payments and are, as a result, falling into debt.

Every four minutes someone will be declared bankrupt in the UK, which represents 331 people everyday working day. The charity also found that a property is repossessed almost every 15 minutes in the UK.  

Further research from protection specialists Bright Grey found that more than a third of people don’t have any cash left over at the end of the month and are in debt as a result.

“There is no doubt that 2012 is going to be a tough year for consumers, and the fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in,” Roger Edwards, Proposition Director at Bright Grey said.

Spiralling into debt

If you are concerned about your levels of personal debt and finding a way to manage your finances, you may need to seek specialist debt advice.

ClearStart could help you manage your debts effectively by offering confidential advice.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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According to insurer first direct, a staggering 6 million Brits have less than £250 in accessible savings.

With such a meagre financial safety net, most people would only survive for 5 days based on the national average monthly household income. The figure is the equivalent to just three days of average ‘take home’ pay.

More than a fifth of the nation has no savings at all to fall back on, leaving them to outsource cash from credit cards, loans and borrowing.

The country could soon crumble financially as many take on more debt to cover the high cost of everyday essentials.

Those aged between 25 and 34 are the least prepared for financial emergencies, with a massive 30% of them having less than £250 in savings. A third of them have nothing set aside at all. The cost of running a car/commuting, rent, mortgages, food and clothing are fast becoming unattainable necessities which people can no longer afford.

Women are said to be bigger spenders than men, with 24% of them confessing to having no savings at all compared to 16% of men.

Many live in fear of repossessions as 32% of people admitted they would not be able to cover mortgage costs if they were to suddenly lose their income.
As a result, 11% of Brits would turn to personal loans, credit cards, and overdraft facilities if they lost their income.

“These findings demonstrate a worrying lack of financial preparation among the British public,” commented Bruno Genovese, Head of Savings at first direct.

“With the current climate of uncertainty, it is of utmost importance that families are setting aside a realistic sum of money to be used in emergencies,” added Genovese.

Debt problems

If you feel that £250 is a drop in the ocean of your mounting debt, you may want to seek out confidential advice from Clearstart. We can help address your debt problems and find a suitable debt management program for you.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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Shelter, the housing charity, published the shocking figures which illustrate the dire state of the nation’s personal finances. As millions turn to high interest loans for financial support, they are putting themselves at risk of debt.

Whilst many are now feeling the pinch and need to pay off any Christmas debt, others find themselves turning to payday loans just to keep a roof over their heads!

Payday loans are typically designed for short term borrowing and often have extremely high levels of interest attached to them.

Insolvency body R3 has labelled the 3.5 million people considering taking out a payday loan ‘zombie’ debtors, those who can only afford to pay back the extortionate interest. When some lenders can charge as much as 4,000% APR, many are likely to find it unsustainable to make repayments.

To make matters worse, those who are relying on payday loans to cover mortgage or rent payments run the risk of losing their home. According to Shelter’s figures, every two minutes someone in Britain faces repossession.

Mortgage debt

If you are struggling to make your monthly mortgage or rent payments, it would be advisable to contact your lender or landlord to address the issue immediately.

Seek debt advice to get your finances in order rather than turning to a payday loan. If you need help with unsecured debt such as credit cards and personal loans, Clearstart can help by offering advice and solutions with our free self help pack.

Almost 7 million people are relying on some form of credit to pay for housing costs, using unauthorised overdrafts, credit cards, personal and payday loans. You do not have to be one of them!

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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Research from MoneySupermarket found that two thirds of cash-strapped Brits think that ‘sweating it out’ in the gym can be more trouble than it’s worth. Working off the festive pounds as well as saving a few pounds can be done in other ways, according to 68% of the nation.

Some are opting for healthier lifestyles, such as quitting smoking which could save you money as well as your health. One in 10 Brits said they were concerned about the cost implications, and a further 5% are not planning on renewing their membership as they rarely used it this year and need to cut costs.

Those aged between 18 and 34 are most in favour of going to the gym and plan to renew their membership in the New Year compared to just 6% of those aged 55 and over.

A staggering 81% of this age group believe the gym is a waste of money and would prefer to find cheaper alternatives to joining a fitness club.

The research found that 6% of people are unsure whether to sign up under the current economic climate and they may need to rethink their spending habits.

James Clarke, Head of Protection at MoneySupermarket said; “Despite the indulgence of Christmas it seems gym membership is not high on the priority list for a New Year health kick as Brits look to cut costs. Joining a gym can be a huge financial commitment, and with many gym-goers admitting to rarely using their membership, it’s important to consider whether their hard earned cash can be used more effectively.”

Debt problems

Monthly financial commitments, which would charge you to opt out of or terminate contracts early, could see you fall into serious debt.

Mounting debt problems could see you spiral further in financial difficulty. It could be advisable to seek professional debt advice from ClearStart.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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According to the latest research by price comparison website, uSwitch, a staggering 62% of Brits will struggle to pay for Christmas this year. Almost one in ten will still be in debt next Christmas as a result.

The research found that many will find it extremely hard to cope with the financial pressures of Christmas and face a New Year blighted by debt.

Michael Ossei, Personal Finance Expert at uSwitch.com, commented; “Cash-strapped consumers will be feeling a little short of Christmas cheer after another tough financial year.

“While the cost of living has rocketed, pay has been frozen or even cut and even those who have enjoyed a pay rise will have seen the benefits eroded as household bills soared.”

“Splashing the cash at this time of year is very tempting, but for those already feeling the pinch a very merry Christmas could lead to a financial hangover that lasts well into next year.”

Having less money has resulted in more financial worries as 48% of people are more concerned about paying off their Christmas debt this year compared to 2010. Cash-strapped Brits who have felt the burden of increased gas and electricity costs have also been unable to save anything substantial towards Christmas this year.

More than four in ten will put Christmas on credit cards and 4% will even take out a new credit card just to fund the festivities. However, this could lead to serious debt problems down the line.

New Year debt problems

Shockingly, almost a quarter of those facing Christmas debt could end up in the red by more than £300. The research found that 16% of people have had to sell possessions in order to increase their Christmas spending budget.

Many are struggling to cope with the financial pressures of the economic climate, taking on more debt to fund Christmas. However, this could further damage your financial position, sending you further into debt for months, if not years on end.

If you are concerned about your debt problems, contact ClearStart today.

Paul Culshaw

Paul has worked in online editing since 1997, managing blogs, websites and social pages within finance, hospitality and retail sectors. During his time in finance he has provided insightful coverage of many difficult financial subjects including personal debt, technology and consumer spending. Paul is particularly keen to explain everyday personal finance issues in a way that consumers can understand so that they are better informed and know how to benefit from the services on offer. Paul also manages the Facebook page for Moneyextra.com providing shopping voucher codes, debt help and financial products.

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