ClearStart http://www.clearstart.co.uk ClearStart Debt Management offer IVA (Individual Voluntary Arrangement) help and debt advice to clear debt via Debt Management Plans and IVA. Insolvency service. Fri, 30 Mar 2012 13:18:37 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Pensioners suffer at the hands of the Chancellor http://www.clearstart.co.uk/debt-advice-blog/pensioners-suffer-at-the-hands-of-the-chancellor/ http://www.clearstart.co.uk/debt-advice-blog/pensioners-suffer-at-the-hands-of-the-chancellor/#comments Fri, 30 Mar 2012 13:18:37 +0000 admin http://www.clearstart.co.uk/?p=3116 Chancellor George Osborne has given Brits a mixed bag of options in this year’s Budget. Attempts to thwart the economy falling into a double dip recession will have a dramatic effect on personal finances.

Pensioners in particular are getting the raw end of the deal as their annual personal tax allowance will be frozen. Typically the tax break is much higher for this group compared to other workers as they need to make their money go further. As of 5th April 2013, around 4.4 million pensioners will have their tax-free incomes frozen at £10,500. Anyone who reaches 65 from next April could be £259 worse off a year under the new system. This will mostly affect those on middle incomes rather than the poorest and richest pensioners.

The Consumer Credit Counselling Service (CCCS) is concerned about the government’s move to freeze the personal allowance for over 65s.

Research from the debt charity found that the number of over 60s seeking debt help has increased by a massive 15% in the last three years. This is largely down to the fact that people are finding themselves in debt for longer and carrying debt into later life.

CCCS external affairs director Delroy Corinaldi comments: “Unmanageable debt is very difficult to deal with at any age, but particularly when opportunities to increase income are limited.

“Our research shows that there is a persistent minority of older people trapped with extreme debt. It would appear that this minority is growing rapidly.”

The government has also decided to scrap the default retirement age and have tried to reduce the complexity of age related allowances.

Robin Williamson, Technical Director of the Low Incomes Tax Reform Group (LITRG), commented: “Many older people never claim their age-related allowance because they do not realise they are entitled to it. This measure will at least simplify matters for them without creating any losses in cash terms.”

The new regulations could push millions of pensioners into debt. If you feel overwhelmed with your financial situation, you could seek professional debt advice from ClearStart.

http://www.clearstart.co.uk/?p=3114 Income tax

As the tax bands will be changed, an estimated 1.3 million will be dragged into a higher 40p tax bracket. The Budget will trap over a million workers into paying the 40p band for the next two years, as the higher rate income tax will be reduced from £42,475 to £41,450 next year.

Whilst higher tax earners are taking a hit, the top rate tax will be reduced from 50% to 45% on incomes above £150,000 from April 6th 2013.

Joanna Elson OBE, Chief Executive of the Money Advice Trust, said: “There are millions of households across the UK trying to deal with their own budget deficit. Low earnings growth and relatively high levels of inflation over the last few years mean that many families will find that their income simply doesn’t cover their outgoings. Households dealing with unemployment or a reduction in working hours will feel this squeeze even more than others.”

There is some relief for workers though as the income tax threshold before you have to start paying tax will increase by over £1000 to £9,205 as of April 2013.

Families

Child benefits are being phased out and millions of UK households could be affected.

The Chancellor announced in the Budget that anyone with an income of up to £50,000 would lose none of their child benefit. However, those earning between £50,000 and £60,000 would see a gradual withdrawal.

Child benefit rates have been frozen for three years (2010/11 to 2013/14) and this means that the value of child benefit payments will have fallen by 10% over the same period.

The Citizens Advice Bureau believe that under the Budget reforms poorer working families who get housing and council tax benefits will be just £33 a year better off from the tax threshold rise. This is because as their income goes up, their benefits will go down.

Citizens Advice Chief Executive Gillian Guy said: “George Osborne has let these families down. To truly help poor working families the Government must ignore the extra £4.23 a week (£220 a year) income when calculating housing and council tax benefits – and delay the change to working tax credit until October 2013 when universal credit comes in.”

If you are concerned about debt, a specialist debt management company could help.

http://www.clearstart.co.uk/?p=3112 Saving under the current economic climate can be incredibly difficult for many as the cost of living continues to drain personal finances. A large proportion of Brits are finding it hard to make ends meet, with many going to cost-cutting extremes in an effort to save money.

Research from Netmums.com found that for some mum’s the situation is so bad that one in five skipped meals to ensure their children were fed.

It may come as no surprise then that over 20 million Brits admitted they could only survive for up to six months on emergency funds.

Almost half of those surveyed by mutual life and pension firm, Bright Grey, say they have less than £1,000 available in accessible savings.  

The Bright Grey Financial Safety Net report revealed that 41% of UK adults said they would only be able to rely on savings, borrow from friends and family or use credit cards for up to six months. This disturbing figure is five times greater than the one for 2010 when just 4 million said they could survive for no longer than six months.

The study also found that 43% of people said they have £1,000 or less in savings that they could access immediately and in an emergency. Shockingly nearly a quarter (23%) said that they have no savings at all.

Roger Edwards, proposition director, Bright Grey, commented:

“The fact that over a third of British adults believe they can’t survive financially for longer than half a year even with support from friends, families, loans or available credit, shows just how concerned the nation is about its finances.

“We urge everyone to improve their own personal financial safety net, in preparation for any situation where the main breadwinner finds themselves unable to work.”

If you are unable to save due to mounting debt problems, you could seek confidential advice from a debt specialist.

http://www.clearstart.co.uk/?p=3110 The stamp duty holiday for first time buyers, which has been in place for two years, comes to an end this week.

The concession was designed to stimulate the UK housing market, by making it cheaper for first time buyers to get a foot on the property ladder.

It worked by giving first time buyers a break from paying the 1% stamp duty tax, if they purchase properties up to the value of £250,000.

This week the threshold for stamp duty exemption will go back down to properties worth up to £125,000 – a move that has been criticised by those in the housing industry.

“The stamp duty holiday has directly helped four in ten first-time buyers over the past two years,” said Martin Ellis, Halifax housing economist.

“Regionally, the impact has varied considerably with around seven in ten first-time buyers in London and the South East exempt from the tax as a direct result of the temporary change. Returning the threshold to £125,000 will hit those buying their first home in these parts of the country most.”

The housing market has seen a flurry of activity leading up to the end of the stamp duty concession, as first time buyers rush to make the most of the saving.

Demand for properties in the private rental sector saw a dip in the first two months of this year, as many tenants rushed to make the most of the holiday.

With the concession coming to an end, many are calling for another measure from the government to stimulate the struggle housing market.

Wendy Evans-Scott, President of the National Association of Estate Agents, believes that something needs to replace the stamp duty holiday.

“With first time buyers struggling to purchase their first home, the Government should think imaginatively and consider a one-off stimulus, such as a First Time Home Buyer Tax Credit as used in the United States,” she said.

http://www.clearstart.co.uk/?p=3108 As the cost of living increases, UK households face a tough time trying to make ends meet. Surprisingly, it’s not just your average Brit who has financial problems; celebrities are also no stranger to money woes.

Here are just a few of the big names with big bills:

Nicolas Cage

The Oscar winning actor and international film star can manage stardom and fame, but has a little more trouble when it comes to managing his fortunes. His financial situation got out of control in 2007 when he owed $6 million in back taxes. The star of Leaving Las Vegas and more recently Ghost Rider confessed that his financial problems made him want to ‘crawl up and hide’.  

Speaking to Germany’s InTouch magainze the debt riddled actor said: “The first thing you think is, ‘This can’t be true. I want to crawl up and hide at the end of the world.” However, Cage is working his way out of debt and added “I have a responsibility for my sons and my wife. I have to get back on my feet”.

Wesley Snipes

Rising to fame in the 1990s with Hollywood hits such as Blade and White Men Can’t Jump, Wesley Snipes soon fell into the trap of debt. Snipes routinely submitted false tax refund claims in the 1990s and he was later investigated for federal fraud.

He was sentenced to three years in prison for willful failure to file federal income tax returns. As well as currently serving time for his debt, American Express has filed a lawsuit against him over a $30,000 credit card bill he has yet to pay.

Madonna

Ever the savvy businesswomen and world famous pop star, Madonna is always on the lookout for a new venture and Guy Richie was one that cost her more than she bargained for. The singer, author, film director and general diva was worth around £500 million during her marriage to Guy Richie, however, after the marriage broken down he kept a cool $75 million of her cash.

http://www.clearstart.co.uk/?p=3074 The Labour Market Statistics for the three months from November last year to January this year have been released by the Office for National Statistics.

The statistics have revealed some positive figures for the three months up to January, with employment rates for 16 to 64 year-olds remaining steady.

The employment rate for those aged 16-64 was 70.3, the same as the employment for the previous three months.

There was some more encouraging news, with 29.1 million people over the age of 16 in employment of some kind – up 9,000 on the previous quarter.

The rates were good news for those struggling to make ends meet in the economic turmoil currently affecting the UK’s economy. But trade unions were less optimistic, saying the figures were misleading.

“The rise in employment is encouraging, but the new jobs being created are mainly part-time. These jobs are not paying enough to replace the full-time earnings that people need,” said Brendan Barber, TUC General Secretary.

“The sharp fall in pay increases is also worrying as it will prolong the painful squeeze on family incomes throughout the year,” he added.

There was more bad news for the younger generation, which has been hardest hit by the recession and the turbulent jobs market.

The statistics revealed that there were 3.6 million people in employment of some kind in the three months leading to January.

This figure is down by 32,000 from the three months leading to October last year. The number of economically inactive young people went up by 6,000 to 2.66 million.

“The jobs news gets worse for young people. We cannot afford to see fresh records broken in youth joblessness with such depressing frequency,” added Mr Barber.

“Tackling the jobs crisis should be at the centre of the Chancellor’s Budget next week. Bold new measures such as a youth jobs guarantee and tax breaks for investment are needed to get our economy growing again.”

If you are struggling with unemployment and debt problems, profession debt adivce could help.

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.

]]> http://www.clearstart.co.uk/debt-advice-blog/labour-market-statistics-released/feed/ 0 Latest House Price Index http://www.clearstart.co.uk/debt-advice-blog/latest-house-price-index/ http://www.clearstart.co.uk/debt-advice-blog/latest-house-price-index/#comments Tue, 27 Mar 2012 09:40:40 +0000 Steven Cooke http://www.clearstart.co.uk/?p=3063 With the first time buyer stamp duty holiday ending on March 24th and more turning to renting as mortgage providers become more cautious with their lending; can the latest House Price Index shed a more definitive light on the current shape of the UK’s housing market?

According to the Department for Communities and Local Government January House Price Index, released on March 13th, average house prices dipped in five of the nine English regions over the year to January 2012. The North West accounted for the largest fall in prices at 3.5 per cent, while the North East and South West both saw the smallest decreases with a matching figure of 0.5 per cent

In contrast five regions saw marginal increases in the year to January 2012. Prices in South East shot up by 2.2 per cent, followed by East Midlands at 1.9 per cent and the North East which rose by 1.5 per cent. Surprisingly London showed the smallest property value increase, rising by 0.7 per cent.

Average house prices

Would-be homeowners have already been deterred from entering the market, and with average mix-adjusted house prices at the beginning of the year standing at £214,852 in England, who can blame them. Those buyers looking for more from their money could look to Wales (£143,441) Scotland (£158,868) or even Northern Ireland (£133,156).  

Though London’s house prices have stabilised over the year according to the report, the city still takes the top spot when it comes to house prices. Houses in the capital come in at an average of £349,178. To really make the most of your property budget UK property investors would do well to head to the North East which has the lowest average price at £129,501.Prices in London and the South East exceeded average UK house prices in January 2012.

First time buyers are also having to pay a higher price for their first home. This average price for properties within this group (£153,233) increased by 0.8 per cent.

If you are struggling to afford your first home, debt consolidation could help to free up much needed capital.

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.

]]> http://www.clearstart.co.uk/debt-advice-blog/latest-house-price-index/feed/ 0 350,000 parents could lose state pension credits says TUC http://www.clearstart.co.uk/debt-advice-blog/350000-parents-could-lose-state-pension-credits-says-tuc/ http://www.clearstart.co.uk/debt-advice-blog/350000-parents-could-lose-state-pension-credits-says-tuc/#comments Tue, 27 Mar 2012 09:40:12 +0000 Steven Cooke http://www.clearstart.co.uk/?p=3066 Hundreds of thousands of women could be at risk of losing their state pension credits if child benefit is cut, according to the Trade Union Congress (TUC).

Just over 350,000 parents, with the majority of them being women, could lose the vital National Insurance credits.

According to their research there are 351,000 families with children under 12. In this group one person is earning over the higher rate tax threshold while the other is either not working or earning below the lower earnings limit of £102 per week.  

The stay at home low earners, whose partners are paying the higher tax rate, are at risk of losing their state pensions credits along with their child benefit.

TUC General Secretary Brendan Barber said: “Child benefit recognises the cost of raising children and the contribution that carers make to society, whatever their income. Cutting it would be deeply unfair.”

“The government claims it can’t afford to pay wealthy families child benefit but because of the way the change will come in, families with an income of £84,000 could keep their child benefit while a single parent on £42,500 could lose out. The fact is that two in five households earning over £42,500 will still receive child benefit.”

Child Poverty Action Group Chief Executive Alison Garnham said: “The child benefit plans now look like another strike on women’s financial security, which brings with it greater risks for children too.”

“The Chancellor needs to scrap the child benefit cut and find a much fairer way of ensuring that all higher rate taxpayers are contributing their fair share to reducing the deficit, not just families with children.”

The government claim that tax breaks for high earners must end.  Shadow chancellor Ed Balls said that: “People are increasingly worried about what’s happening to employment, the economy and the deficit, as well as their own living standards.”

If you are concerned about your debt problems and personal finances, you could seek confidential advice for debt management.

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.

]]> http://www.clearstart.co.uk/debt-advice-blog/350000-parents-could-lose-state-pension-credits-says-tuc/feed/ 0 Cost of smoking and debt http://www.clearstart.co.uk/debt-advice-blog/cost-of-smoking-and-debt/ http://www.clearstart.co.uk/debt-advice-blog/cost-of-smoking-and-debt/#comments Tue, 27 Mar 2012 09:39:19 +0000 Declan Murray http://www.clearstart.co.uk/?p=3068 Smoking can pose serious consequences for your overall health. This includes increasing your risk of lung and gum disease. According to theTobacco Manufacturers’ Association, the current recommended retail price for a pack of 20 cigarettes is £6.95, so smokers on 20 a day for 365 days a year would pay a staggering £2,537. Smokers also cost the NHS a staggering £5billion a year. With No Smoking day taking place earlier this week, for those who fail to take the habit seriously, here is an outline of the key risks posed by the nation’s nicotine addiction.

Smoking damages your insurance health

The cost of life insurance goes up by around a third for smokers. MoneySupermarket found that non-smokers can make considerable savings on combined CIC and life insurance policies. For example, a 30-year old male wanting £150,000 worth of cover over 25 years could save at least £5,490 with Aviva over the term, or £18.30 per month.

Increased risk of developing life-threatening diseases

According to data published on the BUPA website more than 114,000 people die each year from smoking-related diseases.

Cancer: 9 out of 10 lung cancers are caused by smoking, both active and passive. Contrary to popular belief smoking hand-rolled cigarettes is not safer than smoking ready-rolled, in fact the former increase your risk of developing mouth cancer.

Heart and circulation: A 20 plus a day habit could increase your chances of having a stroke four-fold compared to those who don’t smoke. You are also 16 times likely to develop circulation problems and to develop blocked blood vessels in your legs or feet.

Smoking puts a dent in your budget

As well on saving on insurance costs, quitting smoking can serve to boost your budget. As an example if you started smoking at 16 and continued at today’s current price until you were 30, those 14 years would cost you £35,518. If you quit at 40 you will have already done considerable damage to your health, skin and teeth and cosmetic work can cost upwards of £300. Lianne Rispoli, director at Hertfordshire-based beauty consultancy WhiteSmileUk.com, said: “By the time smokers reach the age of 35 to 40, their teeth are discoloured or even permanently stained yellow so whitening treatments are especially popular among this group.”

If your smoking habit has added to your debt mountain, you may benefit from seeking out a professional debt management service.

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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]]> http://www.clearstart.co.uk/debt-advice-blog/cost-of-smoking-and-debt/feed/ 0 How to cope with debt if unemployed http://www.clearstart.co.uk/debt-advice-blog/how-to-cope-with-debt-if-unemployed/ http://www.clearstart.co.uk/debt-advice-blog/how-to-cope-with-debt-if-unemployed/#comments Tue, 27 Mar 2012 09:38:58 +0000 Emma Barwick http://www.clearstart.co.uk/?p=3071 The economic crisis has meant that unemployment levels are on the increase. Brits are already facing huge dents to their budgets with the cost of living spiralling and house prices on the increase. Being out of work adds another pressure to consumer’s already mounting debt bills.

According to official figures unemployment reached a 17-year high this week. Unemployment increased by 28,000 between November 2011 and January 2012 to hit almost 2.7 million.

Although being made unemployed, through redundancy or for any other reason, can put Brits into austerity mode, there are a number of ways that you tackle debt while trying to re-enter the job market.

Claim your full range of benefits

The number of people claiming Jobseeker’s Allowance has gone up for the 12th consecutive month. This increased by 7,200 in February to 1.6 million.

There are also a range of other benefits that you may be entitled to such as Housing and Council Tax benefit, and potentially Free School Meals for your children. Your local Jobcentreplus should be able to answer any queries you have on additional support.

Ask for support

According to recent figures from a leading price comparison site four and a half million UK adults are permanently overdrawn and a further 17 million have dipped into the red in the last 12 months. Ask friends and family to rally round you during this difficult time. Seeking unemployment debt advice could also help to organise your debts.

Look at ways that you can make cost savings

Assess your budget and identify the areas you could make savings. You could try and carry out some energy saving measures to reduce your heating bill, cut back on luxuries or switch to economy own brand ranges to whip up a tasty meal.

Get help in returning to work

The government run a number of schemes to get people back into employment. The following are just a handful of work initiatives that are listed on the DirectGov site:

Work Together
This is for anyone who is unemployed and looking for work. Work Together gives you the opportunity to volunteer with a local voluntary organisation. Volunteering can help you to improve your chances of finding work.

Work Clubs
These are for anyone who is unemployed and looking for work. Work Clubs give you the opportunity to make the most of the local knowledge that’s available, to help you in your search for a job.

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.

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