Archive for the ‘Debt Help’ Category

11% of the UK population having problems in repaying debts

Thursday, July 15th, 2010

Going by the recent government figures, Britain seems to be caught into one of the worst credit binges in history with about 11% of the UK population having problems with repaying their debts. More alarming is the fact that the figure is continuing to rise.

According to Citizens Advice while it is true that some people took loans they shouldn’t have taken in the first place, there were others who were lent irresponsibly far too much.

Cases of bankruptcies, insolvencies and unemployment are rising. A recent article in the Journal of Health Economics has also noted that there is a direct link between rising debts and mental health problems, highlighting the wider and perhaps a more serious impact that the society is facing.

For the last few years, the government has funded debt advisers to provide the free face-to-face advice to help people understand their financial situation and, more importantly, to help them negotiate with their creditors for manageable repayments. The Financial Inclusion Fund is the only dedicated government fund for providing free debt advice.

However, the fund is within the Department for Business, Innovation and Skills, which has to make £1bn of cuts in the coming year, and no decision has been made on whether to continue free provision.

In this climate of austerity, one option is to seek debt advice from reputed debt management companies who can help you deal with your financial problems. If you are dealing with multiple unsecured debts, you can seek a face-to-face meeting with a debt advisor who can give you a clear picture of what’s going on and how you can engage with the problem.

Seeking debt advice can save you a lot of stress, especially if you’re facing eviction, have rising multiple debts, complex financial problems, and bailiffs knocking at your door.

So remember, free advice and help is available for you to take advantage of and we are always happy to give you the help and support you need.

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New mothers forced to go back to work to deal with mounting debt

Wednesday, July 7th, 2010

Welcome to my weekly blog and I hope you all are having a nice summer and enjoying the World Cup – now from a neutral point of view!

A recent study reveals that more than half of new mothers return to work due to financial pressures, with many cutting their maternity leaves. According to the survey, 56% women admitted they were unprepared for the fiscal impact of having a child. The survey was conducted by the comparison website uSwitch.

The study paints an image which is a stark contrast to that of modern mothers “having it all”. More than half (52%) of those returning to work after the birth of a child do so because of debt problems.

These are some of the highlights of the study:

  • Only 22% women choose to return because they want to continue their career.
  • The average net household income drops by 34% from £3,431 to £2,266 a month while on statutory maternity pay. However, costs soar, with parents spending an average of £2,152 in the run up to the birth on baby items, and a further £2,521 – more than a month’s reduced net household income – after the baby is born.
  • The average amount saved in anticipation of having a baby is £3,265, but 56% of the 1,000 mums questioned for the survey said they were not fully prepared for the impact of surviving on a reduced income.
  • Nearly a third of new mums were not aware of their company’s maternity package when they decided to have a baby.
  • More than four in 10 mums have ended up in debt while on maternity leave, incurring an average of £1,329.

Ann Robinson, consumer policy director at uSwitch, said: “Debt and financial considerations combine to be the biggest motivating factor behind new mothers returning to the workplace. Despite women being told that they can ‘have it all’ and can choose whether to be a working or stay-at-home mum, the fact is that most have this choice stripped away from them by the financial realities of modern life.

With the new government planning to cut child trust funds and the impending budget causing concerns over pay freezes and redundancies, family finances are under more pressure than ever. The high cost of living coupled with the often crippling cost of a mortgage means that many households today need two incomes to get by. Unfortunately, new mothers are often paying the price for this by seeing their choices taken away.”

I always stress the importance of seeking impartial and good debt advice. It is the first and often the most difficult step to take but it is also the most important. If you are worried and are struggling, act now.

Thanks

Nigel

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Tax rise could mean debt trouble for over-55s

Monday, June 14th, 2010

Tax rise could mean debt trouble for over-55s

Welcome to the latest edition of my blog. The focus this week is on tax rises and in particular the effect it will have on people approaching retirement. A recent suggests that people in the over-55s age bracket are more worried about the impact of tax rises on their day-to-day spending and also on their debt management. Needless, to say the worry is adversely affecting their health also.

The study, which was conducted by Aviva, reveals that one in five people aged over 55 are worried about getting into debt or managing their existing debt as also about the rising cost of living.

The study shows that almost two-thirds (64 per cent) are worried by the possibility of rises in taxation over the coming five years. These fears are the highest amongst those who have just retired amounting to 68 per cent of 65 to 74-year-olds surveyed.

Debt management capabilities of the people have already been hit by the recent economic turbulence. People whose pensions were linked to the stock market between 2008 and 2010 are likely to have witnessed their income drop due to the impact of the recession on share prices around the world. A further rise in taxation would adversely affect their retirement savings for paying off mortgages and other debts.

For people in this age group, it is imperative that they seek debt advice immediately. Most reputed debt management companies in the UK offer free debt advice. Talk to their counsellors in confidence about your debt and they will recommend debt solutions that are tailored to your circumstances. However, as a note of caution it is also important to point out that some companies may not provide you impartial advice. This is because they are backed by certain lenders and so selling their solutions would mean a better commission for them. To play it safe, it is better that you consult more than one company to study the range of debt solutions available.

If Browse through our website and you will find information about the different Debt Solutions available in UK including Debt Management Plans (DMP), Individual Voluntary Arrangement (IVA), Bankruptcy and how to avoid bankruptcy.

I hope you have a nice week and if you’re a football fan like myself, then enjoy the World Cup.

Thanks

Nigel

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Insolvency figures for the first quarter of 2010 hit new high

Wednesday, May 12th, 2010

Welcome to the latest edition of my blog.

Amidst the turbulent elections and hung parliament and the growing economic crisis across Europe, it has certainly been an eventful week!

Getting away from the continued election debates, last week the Insolvency Service released its latest statistics which showed that more than 35,600 people became insolvent in the first three months of the year 2010. This is equivalent to 566 people a day and what is more disturbing is the fact that the figure is expected to rise higher in the coming months.

This was the fifth consecutive quarter during which the total insolvency figures have hit a record level. Individual insolvencies were up 17.9% on the same quarter last year due to the increasing numbers of consumers trying to meet their debts.

Debt relief orders (DROs), which were introduced in April last year to enable people with debts of less than £15,000 and minimal assets to write off their borrowing without entering into a full-blown bankruptcy, also witnessed an increase with a total of 5,644 people opting to use one, signifying a rise of 6% on the last quarter of last year.

The 2009 saw a total of 134,142 individuals declaring insolvency and despite the recent signs of recovery shown by the economy, they are expected to remain high this year.

Given the above figures, it becomes all the more imperative for people in a bad debt situation to seek expert debt advice on how to deal with their financial problems. There are many debt management companies in the UK that provide free, expert and impartial advice on debt solutions such as IVA, Debt Management Plan and debt consolidation etc. Seeking debt advice before it is too late can help you regain control over your finances and prevent the situation from snowballing to an extent where you are forced to declare bankruptcy.

Nigel.

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Unnecessary stigma hinders people in the UK from seeking debt management help

Monday, April 26th, 2010

Welcome to the latest edition of my blog and I hope you all had a lovely weekend.

The focus of this weeks posting is on the stigma associated with debt.

New research from R3, the insolvency trade body, shows that there is still unnecessary stigma attached to seeking debt help and as result people who do not take debt management options well on time, sink deeper into the debt trap.

The latest figures from R3 reveal that 30 per cent of people who face financial trouble do not even inform their immediate family about it. The study further reveals that 19 per cent of people cannot face opening their bills at the end of the month.

The research adequately highlights the fact that this unnecessary embarrassment and fear is hindering people from accessing appropriate debt management advice and as a result they are letting their amount of debt accumulate.

Labelling this as a “damming spiral of personal debt,” R3 President Peter Sargent commented, “even after a long recession people are still terrified to ‘own up’ to debt problems. Yet this ultimately makes the issue worse – we know there is a group who are not addressing their financial problems and can’t even come clean to partners or family about them.”

He further revealed that 21 per cent of those struggling with debts did not know where to turn for financial help, despite the plethora of debt management companies available to lend support to consumers.

Another interesting finding of the report was that 90 percent of those facing hardship felt that money management should become part of the school curriculum.

Meanwhile, a poll of 3,000 people conducted by a financial services website yesterday shows that the average person now holds personal debts in excess of £6,000. This further highlights the need for debt management plans.

As always, help is on hand if you are struggling with debts and as previously mentioned in this blog, you really aren’t alone. If there is one important lesson to take from this is that acting now can make all the difference.

I hope you have a lovely week and hopefully the weather holds out for the bank holiday weekend.

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