Thomas Cook experiences debt crisis

One of the UK’s leading travel retailers, Thomas Cook, has fallen into debt crisis. This has led to fears that business debt could eventually translate into personal debt for those involved.When businesses experience financial difficulty, such as a fall in share price, this could affect the staff. A period of redundancy could ultimately lead to personal debt.Trading issues have affected the company badly. This has promoted a widespread review of the business and raised awareness over the need for cutbacks.The travel industry has been hit hard by the economic downturn and Thomas Cook’s UK arm has been severely affected.Shares have fallen by 80% in the last year and low profit predictions have only served to put off investors.The company did not ask shareholders for a rights issue to raise...

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Posted in: crisis,experiences,Thomas

UK faces highest unemployment rate for 17 years

Unemployment has risen to its highest level for 17 years, according to official figures.The Office for National Statistics recently published figures showing that 114,000 more people have become economically inactive between June and August this year. The unemployment rate has increased by a staggering 8.1%, according to the new figures.Unemployment levels have not been as bad since 1994 and young people have been hit the hardest.The shocking figures reveal that youth unemployment has hit record highs, almost touching the 1 million mark recently. One in ten young people aged 16-24 are currently out of work. Youth unemployment makes up 21.3% of the total jobless market as a staggering 991,000 young people are out of work.The employment rate was at its highest in the East and South East, and...

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Posted in: faces,highest,unemployment,years

Cost of Christmas causes concern for consumers

The rising cost of living is taking its toll on the British public and, with Christmas looming, it might not be long before the nation spirals into debt.Research from price comparison website, MoneySupermarket , found that 60% of the public is worried about Christmas debt.Over 50% of people had serious concerns about how they would cope financially over the holiday season.“For many families Christmas is always a financially tricky time. Ultimately, Christmas needn’t be a financial headache,” said Kevin Mountford, Head of Banking at MoneySupermaket.Funding the festivities could be particularly difficult for many this year as the rate of inflation is expected to increase to 5% before the end of the year. Higher gas and electricity bills are likely to tighten the purse strings further.“This...

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Posted in: causes,Christmas,concern,consumers

Fourth successive monthly fall in consumer confidence

Friday 21st October 2011 Consumer confidence in the UK has reached a point close to its all-time-low as a fourth successive monthly fall has been recorded by the Nationwide Consumer Confidence Index.Households are struggling to cope with weak economic growth, rising unemployment, and further fears about a double-dip recession; factors which have combined to place consumer confidence a mere four points above its record low back in February.The survey revealed 80 per cent of households are concerned there will be no improvement over the next six months.Robert Gardner, Nationwide’s chief economist told This is Money: “The economy has hardly grown in 2011 and pressure has continued to mount on household budgets.”Mr Gardner suggested ‘recent signs...

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Posted in: confidence,Consumer,Fourth,monthly,successive

Top tips to cut down your energy bills.

This winter it is thought that hundreds of thousands of families will struggle with their energy bills after seeing a huge hike in the cost of fuel over the course of the summer. A report by the Citizens Advice Bureau has recently suggested that this year those that are the most vulnerable will have to make a choice between either feeding themselves or keeping warm.This week marks world Energy Saving Week, an initiative that aims to get everyone thinking about their energy usage and look at what they can do to cut down and reduce their bills.Here are a few tips that we would like to share:Leaving your appliances on standby still uses electricity. If you switch them all off at the plug you can save money of your bill.Insulating your home can...

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Posted in: bills,energy

What can Payplan do differently?

I recently spoke to a lady who had previously contacted a debt management company for some advice. They explained to her that she didn?t have enough money to begin a Debt Management Plan and that her only option was bankruptcy or to come to an agreement with her creditors where she pays token payments.So after eventually plucking up the courage to call and speak to someone about her debt problems she felt very disheartened and lost hope in trying to find a viable solution. This was when I asked her to call Payplan and speak to one of our debt specialists, to which she replied ?what?s the point??The point is, each and every debt management provider works differently, so one person has said you have limited options, this doesn?t mean that you...

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Posted in: differently,Payplan

Redundancy brings a rollercoaster of emotions

I am new to Payplan and really pleased to be part of the team. It?s not just that this is a great place to work ? and it is ? it?s just that after being made redundant last year I was worried I may be out of work for some time.It led to a rollercoaster of emotions. Well-meaning friends and family told me not to worry and assured me I would soon find another job. I?m sure they believed what they were saying, but kind words don?t pay bills or put food on the table.I soon found out that when you lose a regular income the spectre of debt soon follows. It?s amazing how quickly I felt vulnerable. I can understand why so many in a similar situation don?t bother to shop around for the best solutions when it comes to coping with debt.Those adverts offering instant cash or debt solutions can seem like...

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Posted in: brings,emotions,Redundancy,rollercoaster

Diary of a Debt Advisor: R for Relationships

After years in the debt management industry I thought it was finally time to lift the lid on some of the most interesting cases of my career. Every week I will reveal an exclusive insight into the people behind the debts and how I managed to help them....This week, I have been thinking a lot about relationships – about the huge impact a bad one can have on an individual’s ability to cope with debt. I am not necessarily just referring to a relationship with a partner (though of course romantic relationships can definitely be tainted by monetary worries) but also familial relationships, with children, parents, siblings....One African lady that I came into contact with had been made physically unwell as a result of struggling with debt. Erika had a highly paid job with the NHS, earning around...

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Posted in: Advisor,Diary,Relationships

Three more debt management companies disciplined by regulator

Three debt management companies have had action taken against them by the OFT as part of the regulator’s ongoing enforcement work.David Fisher, the OFT’s Director of Consumer Credit, said: “We expect commercial debt management businesses to meet the standards that we set out in our guidance. If they do not, we will take action as we have demonstrated here.”The regulator has revoked the licence of Prime Legal and Financial Services (PLFS), which is based in London’s Mile End, after it failed to demonstrate the necessary skills, knowledge or experience to hold a consumer credit licence and advise consumers on debt management matters. According to the supervisory body, the company did not have appropriate business practices and procedures in place.The...

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Posted in: Companies,disciplined,Management,regulator,Three

Schofield Speaks: Regulation and respect

Tuesday 11th October 2011 Where would we be without fee-charging Debt Management companies? As news broke this week that the number of Debt Management companies surrendering their licences to the OFT increased to 61 I thought back to a quote I heard at the DRF Conference last week.“It’s arguable that if it wasn’t for the fee charging commercial sector then the debt charities would have collapsed under the volume of enquiries several years ago.”Back in 2009 the Citizens Advice Bureau (CAB) announced they were dealing with 9300 new debt problems a day. I think it’s a fair assumption to predict that this number will only have increased since 2009. I travel past my local CAB every morning on the way to work and regularly see queues of people...

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Posted in: regulation,respect,Schofield,speaks

Katie Price victim in credit card fraud

£14,000 was fraudulently taken out of glamour model Katie Price’s bank account after an impostor wearing a blond wig and sunglasses managed to convince staff at an HSBC branch that she was the star. Katie, 33, only found out about the fraud after three of her credit cards were declined during a shopping trip in Brighton.After complaining to her bank, she learnt that all her cards had been reported as lost or stolen the day before and £14,000 had been taken out of an account.The un-named woman had withdrawn £9,000 on one occasion and a further £2,500 in two other instances. According to the Daily Mirror, police believe that a criminal gang had a member dress up as Katie’s alter-ego Jordan in order to carry out the scam.Lancashire police...

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Posted in: Credit,fraud,Katie,price,victim

Payday loan borrowing’s quadruple increase

The number of individuals turning to payday loans to keep them afloat until their next pay-cheque has quadrupled over two years, according to the Citizens Advice Bureau.Payday loans are attractive to some because they are a quick way of gaining short-term credit, however the charity is concerned that is has become too easy to obtain such credit and is calling for tighter regulation.Peter Tutton, of the Citizens Advice Bureau, told the BBC: “The sort of regulatory regime isn’t working to protect people, so there’s work for the government to do.“The government needs to look at consumer credit and get really serious about making it more effective. We need better sorts of messages to firms that it’s not acceptable to treat people badly.”The Consumer Minister Ed Davey said, "In the last government...

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Posted in: borrowings,increase,payday,quadruple

Cameron changes tack on debt speech

The Prime Minister yesterday retreated from his plans to tell the public to pay off their credit card and store card bills after previews of his Conference speech were criticised.David Cameron dropped calls to pay off debt, after members of the public protested that those in the red simply cannot afford to clear their debts.Mr Cameron originally planned to say: “The only way out of a debt crisis is to deal with your debts. That means households – all of us – paying off the credit card and store card bills.After the protests, the Prime Minister changed his speech to, “The only way out of a debt crisis is to deal with your debts. That’s why households are paying down their credit card and store card bills.”According to Downing Street aides, it...

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Posted in: Cameron,Changes,speech

In Profile with Barry Mitchell of Recro Debt Management Services

We sat down with Barry Mitchell, Proprietor and Senior Consultant of Recro Debt Management Services, to find out what Recro actually stands for and what he thinks is the biggest issue in the debt industry at the moment... read moreFacebook campaign targets loan sharksWednesday 7th September 2011 Former Man Utd star sued by bankWednesday 31st August 2011Schofield Speaks: The summer of discontentWednesday 31st August 2011Celebrity Dragon paying £25k a day on debtWednesday 24th August 2011Fraudster flogs phantom luxury cars in broadsheetsWednesday 10th August 2011Send To Friend      Print      RSS Feed      News Archive If you have any queries about this news story...

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Posted in: Barry,Management,Mitchell,Profile,Recro,Services

Debt hit, cash strapped Brits love a bargain

As many people face mounting debt, frugal living has become second nature, according to new research.One in two thrifty Brits admit to going out of their way to find a good deal, according to a price comparison website. 48% of people confessed that they love the feeling of securing a bargain. With many struggling with mounting debt it comes as no surprise that frugal living is a must in order to meet everyday expenses.However, cheap living doesn’t have to be a chore, and 48% of Brits take great pleasure from making a saving either from as little as £1 or as much as £100. The research found that 24% of people said that it is something to be proud of and the feeling of achievement people get when they save money is not affected by the amount of money they actually save.Not only that but 58%...

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Posted in: bargain,Brits,strapped

Inflation increase pushes consumers deeper into debt

Inflation increase pushes consumers deeper into debtThe inflation rate rose to 4.5% in August, according to the latest figures from the Office for National Statistics.The main contributing factors included rising utility bills, higher food and clothing prices.The rate increased from 4.4% in July and the Bank of England expects the Consumer Price Index to rise to 5% before the end of the year.This is grave news for consumers as the cost of living soars, plummeting UK households further into debt.Wages are not rising in line with inflation though, which leaves consumers with less to spend and more debts to cover.The price of clothing and footwear increased at the fastest rate on record (3.7%) for the July to August period.The end of the summer sales and introduction to autumn prices saw female...

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Posted in: consumers,deeper,increase,inflation,pushes

Brits spend 9 billion a month paying off debt

One in four Brits spends more than 40% of their wages on repayment of non-mortgage debt, the latest research has found.According to a price comparison website, the average amount of debt paid off per person per month is £322.Cash strapped Brits already struggling to cope with the rising cost of living and increased in winter fuel bills are also now paying off debt.Britain’s skyrocketing personal debt is clear, with debt repayments swallowing up monthly incomes.The average monthly income for a UK adult is £1,288 and if Brits are paying £322 out of that, that’s a staggering 25% of their monthly wage.Shockingly, 8% of people said they spent 80% of their monthly income on debt repayment.Women owe less money than men with only £6,739 in debt compared to £7,944 for their male counterpart.Londoners...

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Posted in: Billion,Brits,month,paying,spend

Demand for debt advice likely to increase

Anyone who has needed to see a debt advice professional over recent years will know how much more difficult this has become due to the soaring demand for these services from the many consumers who are struggling with their finances and finding it difficult to repay their debts. Many have had to wait for long periods of time in order to get an appointment with a debt counsellor to discuss debt problems and issues.There are now fears that the situation could actually get worse with the demand for debt advice rising as a result of government cutbacks amongst other things. The austerity drive that was announced by the government last year and is due to be imposed over the course of this year and next year will have a profound impact on the finances of many people, such as those who see their...

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Posted in: advice,Demand,increase,likely

Set up a direct debit to avoid late payment fees

Late payment fees are fees that can be imposed on a wide range of debts and bill accounts by creditors and companies who have received a late payment or in some cases have not received a payment from you. In the current climate more and more people are at risk of missing payments or making late payments that could incur fees, which can make finances even more stretched at a time that is already very difficult for many.A lot of people these days find that a large chunk of their income goes on paying off debts, leaving them financially crippled and unable to handle any charges that are then added to their debts or accounts. One industry expert said: “It’s worrying to see such a high number of people needing to use so much of their income just to service existing debt.”In order to make sure...

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Posted in: avoid,debit,direct,payment

Women hit hard by struggling labour market

This week’s unemployment statistics reveal the impact the tough economic environment is having on the self-employed and women in particular.  Leading debt solution expert and DEMSA member, Atlantic Financial Management is warning of a deepening debt problem in the UK as lower income and part-time jobs traditionally taken by women juggling work with childcare, are now being taken by men and foreign workers as full time job opportunities become scarce.  Loss of income is the biggest cause of people entering a Debt Management Plan (DMP) with Atlantic, who deal with a number of clients who are eligible for Jobseeker’s Allowance (JSA). The ONS figures show that number of employees and self-employed people working part-time because...

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Posted in: labour,market,struggling,Women

Former football directors investigated by Insolvency Service

Wednesday 14th September 2011 Four former directors of Luton Town Football Club (LTFC) have been disqualified from acting as directors or in any way managing or controlling limited companies.An investigation into their activities was conducted by the Insolvency Service which found that, between July 2004 and February 2007, the directors were deemed to have breached Football Association (FA) and FIFA rules and regulations on payments to football agents.The FA enquiry found that LTFC had dealt with unlicensed football agents and made payments of £157,000 through its holding company Jayten Stadium Limited, using funds provided by LTFC which should have been paid by LTFC itself and routed through the FA. During the same period, the directors had...

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Posted in: directors,football,former,Insolvency,investigated,service

The impact of upping the retirement age

The retirement age is set to increase to 67 as the government begins implementing its plans to extend the working life of those aged 50 and below.Ministers are currently pushing through the Pensions Bill, which plans to raise the age at which men and women can claim a state pension to 66 by 2020, and the retirement age now looks as though it may rise to 67 by 2026.In an interview, Pensions minister Steve Webb saidthat the current timescales for increases to pension age are too slow. “If it is 67 in the mid-2030s we will be going backwards in terms of share of your life in retirement. I mean the problem would be worse than 20 years before.“If you think of male pension age, it hasn’t changed for a century. How much has life expectancy improved...

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Posted in: impact,retirement,upping

Referral plans may send insurance sky-high

The government’s plans to ban referral fees may lead to drivers facing increased debt problems as insurance premiums climb even higher.Referral fees refer to the practice of insurers trading details of accident victims with lawyers in exchange for cash. Claims firms often pay solicitors to pass on possible personal injury claims – on a no-win, no-fee basis. This technique has often been blamed for pushing insurance prices up – the average comprehensive policy now stands at nearly £1,000.The government’s proposal seems likely to increase the cost of insurance even further, applying pressure to already tight finances. Admiral chief executive Henry Englehardt told the Mail Online: “The Government needs to set a cap for injuries such as whiplash...

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Posted in: insurance,plans,Referral,skyhigh

Sale and rent back regulation - protecting the vulnerable

In the FSA’s recently released quarterly consultation paper, the authority revealed its plans to extend the scope of its regulation of sale and rent back (SRB) contracts. Debt Management Today spoke to industry experts to find out the perception of SRB companies and how the additional regulation is likely to affect the debt sector in general.In June 2010, the FSA introduced full regulation of SRB sector, in order to provide a ‘package of measures designed to meet our statutory objectives, including that of consumer protection. Under that regime, persons that entered into regulated SRB agreements by way of business (among other things) required FSA authorisation.’The loophole in this regulation lay in the fact that firms were only regulated...

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Posted in: protecting,regulation,vulnerable

OFT warns borrowers of scam

Wednesday 24th August 2011 The Office of Fair Trading (OFT) has released an official warning advising consumers of the dangers of scam loan companies.For those in debt, it can be very tempting to accept what seems a quick and easy deal from a loan company, however the OFT is warning against accepting loans from companies who take upfront fees but do not provide credit or offer clearly unsuitable credit alternatives. The OFT has released the warning after a 50 per cent year-on-year rise in complaints regarding loan scams. Consumer Direct, an OFT-managed advice service, saw complaints increase from 2,059 between July 1 2009 and June 30 2010 to 3,167 during the same period in 2010-11. OFT Director of the Consumer Credit Group David Fisher said:...

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Posted in: borrowers,warns

Diary of a Debt Advisor: F for Family

I’ve always been a very family-orientated person. I’m still close to my parents and my siblings, and I know how tough it can be to watch one of your relatives struggling. I think that’s why Matt’s case really meant a lot to me. He was a young, good looking, single guy who seemed to have it all. He had quite a good job and lived in a multi-million pound house. So it came as a bit of a surprise to me when Matt responded to our advertising. We had the first consultation at his house, and I can remember thinking to myself as I pulled up outside his amazing house – ‘what am I going to be able to do to help this guy?’Matt was up-to-date with all of his payments on a couple of loans and some cards, but was really struggling due to the help he...

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Posted in: Advisor,Diary,family

Bankrupt website owner faces wrath of 100,000 solicitors

Solicitors from Hell website owner Rick Kordowski is being threatened with court action by more than 100,000 lawyers after he set up the website which names and shames members of the profession alleged to have given bad service.It is not the first time Mr Kordowski’s website has been the cause of controversy. The bankrupt self-employed graphic designer has been sued 16 times for libel and still owes more than £150,000 in fines. Mr Kordowski, who sees the website as a public service, told the Independent: “There’s a need for my website, as many people have said, and it makes them feel better for being able to post on it.“All I need is an appropriate story from someone which is useful to other people and their contact details.“I see it as helping...

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Posted in: 100000,bankrupt,faces,owner,solicitors,website,wrath

Debt collection agency's licence revoked

Carltons Business Limited has had the OFT’s decision to revoke its consumer credit licence upheld by the First-tier Tribunal.The company, based in Dartford, Kent, was found to have failed to comply with the standards necessary to hold a licence. Furthermore, the OFT has warned companies collecting consumer credit debts that they must ensure they do not mislead consumers and that they communicate clearly and fairly.The Tribunal dismissed Carltons appeal because they found that the company lacked sufficient skills, knowledge and experience to operate a consumer debt collection business. In addition, Carltons were seen to not have sufficient practices or procedures in place to deal fairly and properly with consumers.They were also found to have...

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Posted in: agencys,collection,licence,revoked

Office of Fair Trading Consultation on Debt Management Guidance – ClearDebt Response

by Andrew Smith on September 7th, 2011 We’ve published, below, ClearDebt’s response to the Office of Fair Trading’s just closed consultation on new guidance for debt management companies and charities. Those of you who also read the Debt Resolution Forum’s (DRF) response will notice many similarities.The two documents have been principally authored by the same people and the issues are, broadly, those on which most debt resolution companies would agree  (in the case of the DRF response, the views of members have been incorporated too).ClearDebt’s principal concerns lay in creating a level playing field between fee-charging and non fee-charging providers and also in the industry’s future freedom to market itself (ethically and transparently) on the internet. This topic is discussed in...

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Posted in: ClearDebt,consultation,guidance,Management,Office,Response,Trading

Restrict credit card debt with “the Island Approach”

Debt ExampleHere's how a debt management plan can help you repay debt. Benefit of a Debt Management PlanCurrent monthly payment: Term: 10 years (for credit card) New monthly repayment: Term: 3 years 8 months* Just a quick message to say thank you for everything you have done for us. I remember having a creditors threaten me, Since then things have changed, you have definitely gone more than the extra mile for us. You made sure that everything was resolved.We aim to reduce debt in the shortest possible time. We are members of DEMSA - (The Debt Managers Standards Association). We adhere to the code of conduct as set out by DEMSA which aims to protect the interests of both consumers and lenders. The DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval...

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Posted in: Approach,Credit,Island,Restrict

Government plans offer protection from bankruptcy threats

Debt ExampleHere's how a debt management plan can help you repay debt. Benefit of a Debt Management PlanCurrent monthly payment: Term: 10 years (for credit card) New monthly repayment: Term: 3 years 8 months* Many thanks for all your help in setting up our IVA you’ve been very patient with us, been a long haul but we’re there at lastWe aim to reduce debt in the shortest possible time. We are members of DEMSA - (The Debt Managers Standards Association). We adhere to the code of conduct as set out by DEMSA which aims to protect the interests of both consumers and lenders. The DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval Scheme (CCAS).View the original article h...

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Posted in: Bankruptcy,Government,offer,plans,protection,threats

Pensioners forced into equity release

Debt ExampleHere's how a debt management plan can help you repay debt. Benefit of a Debt Management PlanCurrent monthly payment: Term: 10 years (for credit card) New monthly repayment: Term: 3 years 8 months* No more hassle from creditors and help is always on the other end of the phone. I am not pressured into clearing the debt quicker, although of course it recommended, it is purely at my own pace and affordability. I have my life back. Brilliant.We aim to reduce debt in the shortest possible time. We are members of DEMSA - (The Debt Managers Standards Association). We adhere to the code of conduct as set out by DEMSA which aims to protect the interests of both consumers and lenders. The DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval Scheme...

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Posted in: Equity,forced,pensioners,Release

People in their 30s and 40s face the highest level of financial pressure

For many people these days, the financial pressures are mounting up with a huge number of people struggling to keep on top of their finances and many finding it hard to keep up with payments on bills and rent or mortgage never mind additional debts such as loans, credit cards, overdrafts and other forms of unsecured debt.A recent study has been carried out with the results showing that it is actually people that are in their mid-thirties to their mid-forties that tend to face the greatest level of financial pressure and debt. Between these ages, according to the study results, spending on credit cards and mortgage repayments is higher than at any other time of the life. The study was carried out by Standard Life.Between the mid-thirties and mid-forties overall spending on bills, debts and...

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Posted in: financial,highest,level,people,pressure,their

Parents facing debt problems due to childcare costs

A new survey has revealed that parents from some of the UK’s poorest families may be facing severe debt problems in order to afford rising childcare costs.The survey, conducted by Save the Children and the Daycare Trust, involved questioning a total of 4,359 parents on childcare costs and general household finances.The findings revealed that nearly a quarter of parents admitted that the cost of childcare has landed them with debt problems. Other results from the survey showed that 58 per cent of parents questioned had cut their spending on essentials such as heating, clothing and other bills. Meanwhile, four out of ten parents said that they spent nearly as much on childcare as they did on their rent or mortgage.The survey focused on the differences in spending and debt problems between poorer...

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Posted in: childcare,costs,facing,parents,problems

HMRC crack downs on business owners who see bankruptcy as an easy solution

HM Revenue & Customs (HMRC) is reportedly starting to take a tougher line on small business owners who see bankruptcy as an easy solution to theirs and their company’s tax debt problems. Officials at the deparatment have become increasingly concerned about unpaid taxes amongst the owners of small businesses. It seems that many of these indebted entrepreneurs are using bankruptcy as a way to tackle their tax debt problem.Leading law firm Wedlake Bell has warned that HMRC will start to crack down on those who see bankruptcy as a way to avoid facing up to their tax responsibilities. Edward Starling, who is the head of business recoveries at the law firm, said:“The authorities are making an example of business owners who have allowed their businesses to run up insurmountable tax debts by...

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Posted in: Bankruptcy,business,crack,downs,owners,solution

Transferring Your Way to Debt Consolidation

Debt consolidation is difficult, it changes the way a person lives, instead of spending it is all about saving and paying things off. One of the ways to do this is to transfer your way to debt consolidation. This might sound strange, but it is something that is done every day and that can lower the amount of money being paid out each month on credit cards.Credit cards as a rule are usually a higher rate of interest than lending institutions. But, if the debt is not tremendous one of the easier ways to consolidate debts is transferred the balance of high interest credit cards. Transferring the balance of high interest credit cards onto a credit card that has a lower amount of interest will save money in the long run. The charged amount of funds with a lower interest rate means paying the money...

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Posted in: Consolidation,Transferring

Controversy over banks’ tactics to help avoid mortgage arrears

There are many homeowners at present who are just about managing to keep on top of their mortgage repayments each month, with the financial relief coming as a result of the rock bottom base rate, which still stands at just 0.5 percent, where it has been for over two years. However, many of these homeowners could find themselves in serious trouble if the base rate increases and their repayments rise.Some banks are now taking what is being considered an approach that is proactive by some, but is being hailed obtrusive by others. The bailed out banks Northern Rock and Bradford & Bingley are planning to carry out credit checks on existing mortgage customers to assess their financial situations and will be contacting anyone that they consider to be at risk of defaulting to advise them to cut...

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Posted in: arrears,avoid,Banks,Controversy,mortgage,tactics

Many unable to save due to debt and cost of living

It has been revealed in a range of recent reports and recently released figures that many households across the UK are unable to save any money and are living off credit because of their financial situations, their debts, and the soaring cost of living, which has made their financial situations extremely difficult. It is thought that around five million households fail to save enough money and around 50 percent are worried about their debts.The Consumer Credit Counselling Service commissioned the report and there were also figures released by the Financial Inclusion Centre showing that around 4.3 million households had no savings put aside at all whereas over 1 million had savings of less than £1000. There are also concerns that many households could face additional risks if they are hit...

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Posted in: living,unable

Many face debt due to government cutbacks

According to the data in a recent report there are many low income people in the UK who are suffering severe financial problems and debts due to the widespread cutbacks that have been put into place by the coalition government. It was claimed that many people are in so much financial trouble due to cutbacks that they are being forced to turn to legal loan sharks in order to keep their heads above water financially, which is affecting their debt levels.The government has made many cutbacks since coming into power, many of which took place from the start of this year. However, officials from the left wing pressure group Compass have said that many of these cutbacks have had a severe impact on the finances of many low income households, using data from a survey of over 250 social housing tenants...

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Posted in: cutbacks,Government

Debt picture worsens for Scots as bankruptcy jumps by 25%

Just days after it was revealed that Scottish people have taken on more debt than the rest of Britain, it has now emerged that bankruptcy cases north of the border have soared dramatically in the last few months. Accountant in Bankruptcy (AIB), the body responsible for personal insolvency in Scotland, recorded an increase of 25 per cent in the number of people filing or being pushed into bankruptcy in the last four months. A total of 5,000 people were declared bankrupt in Scotland between the months of April and June this year, a figure which is down 1 per cent compared to the same period in the previous year but is very worrying nonetheless. This increase mirrors the findings of similar research by the insolvency group R3, which revealed that 539,000 Scots have seen their debt problems worsen...

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Posted in: Bankruptcy,jumps,picture,Scots,worsens

Shoppers more wary of debt problems this summer, research shows

The latest statistics on shopping, spending and debt management have revealed that consumers were less likely to make big purchases last month (June 2011).The Nationwide Consumer Confidence Index came up with the data, which showed that both consumer confidence and spending dropped in June, despite it rising in May around the time of the Royal Wedding, a period of sunny weather and an extra bank holiday.Consumer confidence dropped by four whole points last month, according to the UK’s third-biggest savings and mortgage provider, falling to just 51. Coinciding with this was a fall of six points in the Spending Index, which dropped from 80 to 74 in the space of a month.All of the latest statistics point to increased caution about spending amongst consumers, especially when it comes to larger...

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Posted in: problems,research,Shoppers,shows,Summer

Ballymena brothers banned from being company bosses after bankruptcy

Two brothers who ran businesses in the Country Antrim town of Ballymena in Northern Ireland have been banned from being company directors after they were forced into bankruptcy.Joseph and Gerard McLarnon were brother and business partners who ran a hotel management company called MCL Investments (NI), which formerly operated the Leighinmohr House Hotel in Ballymena. The hotel is still up and running, but is operated by another company. MCL Investments (NI) ran up huge debt problems under the direction of the brothers, and was eventually pushed into administration in summer 2009. The company had debt management problems in excess of two million pounds, whilst only having assets of £253,000. At the time it wound down and all of its debt problems were revealed, it was found that MCL Investments...

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Posted in: after,Ballymena,Bankruptcy,banned,being,bosses,brothers,Company