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