The cost of raising children and caring for them is becoming increasingly hard for parents under the current economic climate.

Shockingly, one in five mums will go hungry in the UK to make sure their kids have enough food.

New research from mumsnet.com, the online parenting website, also found that one in four families is currently living on credit cards as a result of family budgets being squeezed.

Despite parents going without; the child poverty rate continues to rise.

Figures from action group, End Child Poverty, show that 30% of children in Britain are living in poverty.

Worryingly, parts of London and Manchester have the highest levels of child poverty in the country. Nearly 50% of children living in these areas are in poverty.

The London boroughs of Bethnal Green and Bow have the highest rate of child poverty in the country, with 51% of children living below the poverty line.

Manchester Central comes in a close in second with 49% of children living in poverty in the borough.

Throughout the UK, one in five children is classified as below the poverty line before housing costs. In Manchester, London and 19 other parliamentary constituencies, at least four in ten children are living in poverty.

Liverpool, Nottingham, Leeds, Glasgow and Birmingham are just a few of the other parts of the country where more than 39% of children are living in poverty.

The Prime Minister’s Constituency of Witney in Oxfordshire has one of the lowest child poverty records, with a figure of just 7%.

Alison Garnham, Executive Director of the Campaign, commented; “The child poverty map paints a stark picture of a socially segregated Britain where the life chances of millions of children are damaged by poverty and inequality. But it also gives us reason for hope.”

The Institute for Fiscal Studies suggests that child poverty will rise by 400,000 by 2015. As households become increasingly stretched, many find themselves in debt. If you are concerned about your debt levels, a debt management scheme could help.

John Lewis

John has worked within the Debt Management side of the company since January 2009 having previously worked for the court service in the Probate and Magistrates service. Originally employed as a Customer Liaison Officer, John was promoted to manager of the group’s acquired brands within Debt Management in 2010. John is responsible for the running of our aquired brands customer service team and also the court work team, whose function is to assist and support Debt Management clients through the often complex and confusing CCJ process.

According to a report by Scottish Widows, only 51% of the UK workforce is saving the correct figure needed to afford them a comfortable pension.

In order for current employees to get the annual retirement income of £24,300, a figure that is desired by this group on average, they will need to start putting aside a monthly amount as soon as possible;

Ian Naismith of Scottish Widows said: “Put simply, people need to save an extra £58 per month on average to prepare adequately for retirement and make up the shortfall we are seeing currently. That is roughly the cost of a cup of coffee every day.

“Even though for many this is realistic, and is in under the average £97.10 per month people say they can afford, we appreciate the difficulty in setting aside extra money.”

The government’s latest series of quantitative easing measures to boost the UK’s ailing economy could mean that pensioners have to look at extra savings measures or face being ‘permanently poorer’.

Joanne Segars, Chief Executive of the National Association of Pension Funds, said; “This short-term stimulus is leaving pensioners and pension funds in long-term pain.

“People who are retiring now are finding that annuity rates have been squashed by QE.

“Retirees who get locked into a weak annuity will find that the Bank’s money-printing leaves them out of pocket for the rest of their lives.”

Experts have calculated that a pension of £100,000 would secure annual income of £15,640 a year, post-65, 20 years ago. The same figure would now only generate an annual income of £5,800.

The government has recently launched a multi-million pound campaign to urge people to save more for their pensions.

Debt issues

Debt management plans can involve making single monthly payments and ending creditor hassle.

If you think you may need to consider a debt management plan or find alternative debt solutions, ClearStart could help.

John Lewis

John has worked within the Debt Management side of the company since January 2009 having previously worked for the court service in the Probate and Magistrates service. Originally employed as a Customer Liaison Officer, John was promoted to manager of the group’s acquired brands within Debt Management in 2010. John is responsible for the running of our aquired brands customer service team and also the court work team, whose function is to assist and support Debt Management clients through the often complex and confusing CCJ process.

Would-be energy savers should try these top five ways to conserve energy in their home and they could soon be saying hello to energy efficiency;

1. Insulate your hot water tank

Your hot water tank may be losing energy without you even realising it. Adding insulation to your hot water tank could decrease the levels of energy loss by up to 70%. Homeowners already pay out hundreds to heat their water so installing a water tank jacket with a minimum thickness of 75mm, at just a few pounds, could make you savings of between £15 and £20 per year.

2. Insulate your loft

Adding loft insulation to prevent heat escaping out of the roof is one energy saving measure that could really serve to reduce heating bills. Lining your loft with insulation, which can easily be purchased from DIY stores and fitted, could see energy bills slashed by up to £200 a year. Loft insulation with a thickness of 270mm is normally recommended and some DIY stores may offer reductions if you bulk buy.

3. Switch to energy saving light bulbs

Although energy saving light bulbs may appear slightly dimmer, what you lose in light you gain in energy efficiency. Some stores offer energy saving bulbs under £1 and when you consider that lighting makes up 15% of our electricity bills, it is well worth making the change. If you replace all your lights with energy saving ones you could save roughly £45 a year.

4. Turn it off

Turn off lights and other switches when not in use and use an energy monitor, most fuel companies can provide this, to check how much energy you are saving.

5. Block out draughts

Sealing windows, and doors correctly as well as using draught excluders to keep the heat in is critical. It is estimated that the average home can attribute 20% of its energy loss to draughts.

Debt problems

If you feel that mounting debt problems are pushing you further into debt, you may want to seek out confidential advice from Clearstart. We can help to address your debt problems and find a suitable debt management program for you.

Declan Murray

Declan Murray has worked at Clearstart since it was acquired by it's parent company, Fairpoint Group, in 2007. As a senior debt advisor Declan works alongside specialist Insolvency Practitioners and advises customers on all aspects of their debt including IVAs from first call right through to closures. Declan has been an active forum specialist since 2009 on IVA.co.uk - a popular, award winning forum providing IVA support.

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According to the latest figures from debt charity Credit Action, this number is on the rise as the country slips into a personal finance nightmare.

The number of landlords suffering with money matters may come as a surprise as tenant demand grows.

New research, by estate agency Countrywide, found that rental activity in the UK has increased by almost a quarter in the last year alone. This is a continuing trend, as millions can’t afford to get their foot on the property ladder. Would-be property owners are forced to remain in the rented sector causing a surge in new tenants.

Yet despite this growing demand for affordable housing, the Credit Action February Debt Statistics reveal that 402 landlord possession claims are issued and 274 landlord possession orders are made every day.

Landlords snapping up properties during this buy-to-let boom may be left a little short if the tenants can’t afford to pay the rent. This could have a knock-on effect and cause Brits to fall into debt.

Tenants falling into debt

The average cost of rent has climbed down since reaching a peak in September, however it is till relatively high at £711 per month. Tenants are also affected by greedy landlords hoping to cash in on the Olympics. In some London boroughs landlords are charging between five and 15 times the typical rents in time for short term Olympic lettings.

The number of tenants who miss rent payments has increased over the last 12 months.

Landlords in debt

Landlords are also faced with debt problems, as their property values decrease, causing them to lose cash. Not only that, but whilst they are letting out properties, tenants are finding it hard to meet rent and bill payments, leaving landlords in arrears.

If your finances are stretched beyond your means, you could seek out debt help and advice. ClearStart offer a debt management program that could help you make affordable payments and manage your finances.

Chris Jacques

Chris has worked with Clearstart’s sister company Lawrence Charlton since July 2008 having previously dealt with escalated complaints at the Shop Direct Group for four years. With a strong knowledge of court/bailiff processes Chris has worked purely in debt management since 2008. He now spends the majority of his working time dealing with priority debts of all kinds; i.e. those that have enforcement agencies or courts involved. Chris is currently in the process of completing his BTEC Advanced Certificate in Debt Resolution.

Research from price comparison website MoneySupermarket.com found that credit card payments are the number one most missed payments, followed by council tax payments.

Figures show that three million people missed a credit card payment in the last year and 1.9 million missed out on their council tax payments.

The nation’s personal finances are stretched to breaking point and many are struggling to cope with the rising cost of living.

The number of people missing bill payments has increased since 2010. Mobile phone bills, personal loans, broadband, Sky, gas and electricity bills were also high on the list of the most missed payments.

“There’s still a worrying amount of Brits potentially damaging their credit rating by failing to pay their bills on time, with credit card bills being the most missed, ” commented Kevin Mountford, Head of Banking at MoneySupermarket.com.

“The majority of household bills and government related fines and payments aren’t recorded but contract mobile phone payments are, so it can be very easy to get caught out by not paying bills on certain products, especially if you are not aware of the consequences of your actions.”

If you are regularly missing bill payments, you may need some help to manage your debt problems. A suitable debt management plan could help you control your finances and make regular payments which are affordable for your budget.

You can seek specialist and confidential advice from Clearstart and begin resolving your debt problems with the free ClearStart self help pack.

Emma Barwick

Emma has worked with the company since January 2007 and has gained a vast knowledge of insolvency and how we as a company can help people who are struggling with debt. Emma ensures people are given the best advice before moving to the next stage and provides a wealth of experience in advising and providing technical support to IVA and Debt Management Plan customers. In 2009 Emma completed her BTEC Advanced Certificate in Debt Resolution.

The survey of 2,000 adults revealed that the average employee had to dip into their ‘piggy banks’ after spending their entire monthly pay just 17 days after receiving it.

Employees’ increasing anxiety levels over the state of their finances was further confirmed when it was revealed that one in five people check their bank balance ‘at least once a day’ with a further 22% checking ‘more than three times a week.’

The rising cost of household spending on bills such as food and heating, coupled with the indefinite freezing of pay bands has led to workers paying out more than they had initially budgeted for.

The study concluded that one in ten people ‘admitted that things get tight within a week of receiving their monthly salary.’

The report comes in the wake of a series of financial squeezes which could make the plight of the cash-strapped generation, highlighted by the Halifax study findings, even worse.

State employees on £21,000 or below face a two-year pay freeze, while the average salary enjoyed by their private sector counterparts falls lower than the rate of inflation – currently at 4.2%.

Commenting on the aftermath of the credit crunch, Sir Mervyn King, the Governor of the Bank of England, said:
“We have now experienced the longest period over which real wages have failed to rise since the 1920s.”

The hardest hit have found themselves turning to payday loan lenders, whose interest rates can reach up to a hefty 4,000%.

Changes to child benefits in 2013 will mean that if one or both parents earn £42,475 they will no longer be able to receive the benefit. The move is said to affect some 1.5 million families.

The need to bolster income with outside borrowing was also highlighted as figures by Borro, the ‘personal asset’ lender, revealed that the average loan had rocketed from £1,000 in 2010 to £3,500 in 2011 and is set to climb to more than £5,000 this year.

Steven Cooke

Steven has worked with the company since November 2006. As a Trainee Insolvency Practitioners (IP) Steven works alongside IPs and debt advisors to provide support and answer technical queries on a case by case basis. Steven is currently studying towards the JIEB qualification having completed the BTEC Advanced Certificate in Debt Resolution in 2009. Steven was part of the project team that attained DEMSA membership for Clearstart in 2010.

Across England and Wales, The North West emerged as the area with the highest numbers of mortgage claims and claims leading to orders per 1,000 households. Barking and Dagenham led the way with a figure of 1.62 and this was closely followed by Bury at 1.45 and Luton UA at 1.37.

The region holds the title for the fewest number of mortgage claims and claims leading to orders per 1,000 households (including mortgaged and rented) was the South West. Westminster and Waverly took joint first place with a figure of 0.21, with Camden narrowly missing out at 0.19.

In relation to Landlord possessions, 35,439 claims were issued in the final quarter of 2011 and this represents a 3% decrease compared to the previous quarter in 2011, but is up by 3% in comparison to figures for the last quarter in 2010.

Figures for the highest number of landlord claims leading to an order made per 1,000 households saw
Barking and Dagenham reach the top spot again, with a figure of 4.49 followed by Brent at 3.57 and Newham at 3.15.

Waverley also came out on top once more for the authority that had the lowest number of landlord claims, leading to an order made per 1,000 households at 0.21, followed by Flintshire at 0.23 and Wokingham UA at 0.24.

According to a report by the Prudential, outstanding mortgages and credit card bills take up the largest share of debt owed by pensioners, making an average of £260 in monthly payments – a fifth of their expected £1,290 monthly income.

ONS figures seem to highlight the financial strain put on residents of London boroughs and it could be argued that they point to the devastating impact that the credit crunch has had on the city.

Debt problems

If mounting debt is pushing you close to the edge financially, speaking to an independent debt specialist like Clearstart could be the first step to securing a brighter future.

Chris Jacques

Chris has worked with Clearstart’s sister company Lawrence Charlton since July 2008 having previously dealt with escalated complaints at the Shop Direct Group for four years. With a strong knowledge of court/bailiff processes Chris has worked purely in debt management since 2008. He now spends the majority of his working time dealing with priority debts of all kinds; i.e. those that have enforcement agencies or courts involved. Chris is currently in the process of completing his BTEC Advanced Certificate in Debt Resolution.

Saving is near impossible with so many people living hand-to-mouth. The cost of living is soaring and Brits are taking on more debt just to cover the price of everyday essentials.

It might not come as a surprise that the average household debt and personal debt levels have increased. The latest figures from debt charity Credit Action reveal that for December the total level of outstanding personal debt stood at £1.451 trillion.

Here are five daily debt statistics that are draining the nation’s finances.

1. Over 300 people are declared bankrupt everyday

Across the UK 331 adults are declared insolvent or bankrupt every day. That’s the equivalent of 1 person every 60 seconds during each working day.

2.101 properties are repossessed everyday

Affordable housing is a thing of the past as many struggle to make monthly payments. There is an alternative to slipping into debt; you could achieve this with a debt management scheme, which could implement an affordable structure for you.

With 101 properties being repossessed every day that’s 1 property being repossessed every 14 minutes and 17 seconds.

According to the Council of Mortgage Lenders (CML), 9,200 properties were taken into possession in Q3 2011. This is largely unchanged from 9,100 in Q2 2011.

3.1,797 people a day reported they had become redundant between September and November 2011.

UK unemployment figures are rising, with no sign of slowing down. This leaves millions out of work and struggling to make ends meet.

4.193 mortgage possession claims are issued and 153 mortgage possession orders are made every day

Last year more than 27,500 properties were taken into possession. This is less than 2010’s figure.

5. The average car costs £18.33 per day to run.

The AA found last month that the average price of unleaded petrol rose by 1.0ppl (pence per litre) to 133.5ppl, meaning it now costs £66.75 to fill a 50 litre unleaded tank.

Emma Barwick

Emma has worked with the company since January 2007 and has gained a vast knowledge of insolvency and how we as a company can help people who are struggling with debt. Emma ensures people are given the best advice before moving to the next stage and provides a wealth of experience in advising and providing technical support to IVA and Debt Management Plan customers. In 2009 Emma completed her BTEC Advanced Certificate in Debt Resolution.

According to an article published in leading broadsheet The Telegraph in 2008, the average cost of a divorce was £28,000. Although this figure may seem inordinately high considering that court fees amount to just £347, there are a range of other payments that need to be factored in such as solicitors’ fees and settlements.

The financial impact that divorce has on couples was emphasised by a Norwich Union report which found that 50% of divorcees have no choice but to make a dent into personal savings accounts in order to foot their divorce bills.

For those ‘soon-to-be divorcees’ who want to carry out the process on a post-credit crunch budget, there are a number of DIY options available. From as little as £37 you can download all the forms and documents needed to complete the divorce process.

However, even online providers of so called ‘quickie’ divorces admit that their clients may need to seek a consultation with a solicitor as a supplement to the divorce packages that they offer. Mark Keenan, the Managing Director of Divorce Online said;

“We’re the end of the process, not the beginning. We recommend that people seek advice from solicitors, then once they’ve decided how to deal with their finances, children and other issues, come to us for the uncontested divorce. We can’t give advice, and if someone comes to us still needing advice we will try to find somewhere suitable to provide it.”

Another invaluable cost saving measure in the divorce process is taking up mediation to iron out issues between a warring couple.  From April 6 2011, the government introduced a measure that would see all divorcing and separating couples being referred to mediation before being able to bring their cases to court.

John Lewis

John has worked within the Debt Management side of the company since January 2009 having previously worked for the court service in the Probate and Magistrates service. Originally employed as a Customer Liaison Officer, John was promoted to manager of the group’s acquired brands within Debt Management in 2010. John is responsible for the running of our aquired brands customer service team and also the court work team, whose function is to assist and support Debt Management clients through the often complex and confusing CCJ process.

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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