Debt misery for middle England

With news of Scottish Power increasing its gas charges by 19% and electric by 10% along with the fastest rise in food prices in two years*, households already under the strain of poor wage inflation, are facing the prospect of their cost of living rise even further, by hundreds of pounds in the year head.  Debt solutions expert Atlantic Financial Management is warning that middle income families who may have overstretched themselves and are already facing debt problems could plunge deeper into the red as they struggle to make ends meet.

Atlantic Director, Kevin Still said: “The move by Scottish Power is almost certainly going to be followed by price rises from the other energy suppliers.  The timing really couldn’t have been worse given the rise in living costs for food and fuel in the past 12 months and falling house prices in some parts of the UK.  If interest rates rise, as anticipated I fear we could see a whole new group of middle income consumers falling into a debt spiral, using one credit card to pay off another, in the hope that they will be able to keep their head above water.  All the time, the interest will be accumulating and the total debt increasing. 

“When a family has done everything they can to save costs, including switching to a fixed energy tariff, and outgoings continue to swallow up income, it’s time to start prioritising which debt to pay first. A debt management plan (DMP) can really help in this process, enabling householders to get their finances back on track.”

A Debt Management Plan from a DEMSA accredited debt solutions company such as Atlantic will work out which payments are prioritised and which can be negotiated.  Priority debts, such as mortgage, secured loans, rent, council tax and utility bills must be paid first and Atlantic makes allowances for these in the client’s monthly budget and statement of affairs.  Atlantic also negotiates a debt repayment plan for unsecured debts which are paid once the priority debts have been settled each month.

Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: England,middle,misery

England football legend faces financial ruin

A former England football legend has submitted a debt payment schedule in the hope of avoiding financial ruin.

Paul Gascoigne owes the taxman £32,000 and has been given another chance to fend off his impending bankruptcy.If his proposed timetable to manage the debt is accepted in court, it means the 43-year-old Geordie will be able to avoid bankruptcy proceedings.The case against Gascoigne – who is known to football fans worldwide as ‘Gazza’ – was adjourned for a further two weeks at a brief hearing at the High Court in London last week.The proceedings followed a hearing in February when Deputy Registrar Clive Jones agreed to adjourn a petition for bankruptcy for six weeks.But last Wednesday Mr Registrar Jaques heard that a proposal has now been put forward by Gascoigne which would enable him to pay off the full debt to HMRC within a structured timescale.If his proposal is accepted it would ‘stay’ bankruptcy proceedings against him, meaning an automatic injunction would halt the actions of his creditors.Gascoigne was once one of football's highest-paid stars and at the peak of his career he was reported to be worth £14 million. When he was transferred from Newcastle United to Tottenham Hotspur in 1988 he became a millionaire. He later secured a £1.25 million deal with Italian club Lazio.As a key player in the England squad, he won sponsorship deals worth more than £5 million with sports clothing manufacturers and Walkers crisps.Gazza then went on to play for Rangers, Everton and Middlesbrough before having short spells at Burnley, Chinese side Gansu Tianma and Boston United.Since quitting football he has battled alcoholism and had a bizarre involvement with the armed stand-off between the police and killer Raoul Moat.He arrived at the scene in Northumberland and offered to help with negotiations, bringing the murder suspect a "can of lager, some chicken, a mobile phone and something to keep warm”.In December, Gascoigne was given a suspended prison sentence and an alcohol treatment order after admitting drinking and driving.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: England,faces,financial,football,legend

Budget brings little relief for middle England

The March Budget has bought some much needed relief for low income families but Atlantic Financial Management is warning that many middle income home owners are still facing stagnant wage inflation, increased living costs and the threat of mortgage rate rises in May.   

Director Kevin Still said: “From April, 1.1 million people on lower incomes will no longer need to pay tax. This and the decision not to lower the 40 per cent tax threshold are welcome moves. There is also help for low income families through more child tax credits as well as a pay lift for public sector workers. But while council tax has been frozen, we must not forget that the cost of living is rising at twice the pace of wages so any increase would have really hurt.  “There is also now increasing speculation of a mortgage rate increase in May bringing further woe for squeezed homeowner budgets. Our experience with our homeowner clients with mortgages is that they have higher levels of unsecured debts with around £35,000 being the average, where high interest rates can be very punitive.   Atlantic is urging families to give themselves a financial health check to ensure they can cope with any further increases in their monthly outgoings.“The Chancellor’s decision to axe the planned rise in fuel duty must also be welcomed but 1p is not going to make a huge difference to struggling families and small businesses.  There is still some way to go before we can really say that fuel is an affordable commodity.“What is striking about the Budget is that many middle income families already struggling with the day to day cost of living will see little relief. It is this group that is perhaps most at risk of debt problems simply because they are more likely to have higher secured credit.  Mortgages, secured loans, rent, council tax and utility bills must all be top of the list when choices have to be made over who to pay first.“This is where a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) from a licensed debt solutions company such as Atlantic can help.  We will work out which payments are prioritised and which can be negotiated.  Atlantic makes allowances for the priority payments and any arrears on these in the client’s monthly budget and statement of affairs.”Atlantic also negotiates a debt repayment plan for unsecured debts and has an excellent record of getting interest and charges frozen on these accounts, typically credit cards, store cards, personal loans and catalogue debts.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: brings,budget,England,little,middle,Relief

England footballer 'fleeced' by agent

Wednesday 9th March 2011

An England and Aston Villa footballer has become embroiled in a row with his former agent, claiming hundreds of thousands of pounds have gone missing from one of his bank accounts. 

Midfielder Stewart Downing, 26, appeared at York Crown Court on Monday accusing his former agent of fraud, having discovered just £11,000 in a bank account that he believed contained nearer to three quarters of a million pounds.The former Middlesbrough and Sunderland player told a jury how Ian Elliot, 53, used the cash to save his own failing businesses, ‘siphoning’ an account which should have contained between £600,000 and £700,000.According to the Mirror, Downing confirmed an account had in excess of £2 million going through it, although £136,000 had left the account to pay for a variety of luxury items.As well as the home cinema, he spent £30,000 on a home extension, £6,000 on a walk-in wardrobe and £45,000 on a conservatory. Other expenditure included £6,000 on a bathroom. He also gave his family £180,000 over a number of years, the jury was told.According to the Mirror, Downing told the court: "I discovered a lot of money missing...I relied on him to do most things on the business side.” He told the court he never read his contracts while Elliott was in charge of his affairs.The BBC reported back in September 2008 that Mr Elliot was being questioned by police after alarm bells started ringing and Downing grew concerned at how his ‘company affairs’ were being handled.It is also alleged Elliott acted as the agent for Middlesbrough while also acting for Downing during contract negotiations, something described in court as a "conflict of interest" and against Football Association rules.Downing denied the claim that he was trying to increase his wages at Middlesbrough to £80,000 a week during contract negotiations in 2008.He said the figure of £80,000 was "comical" and he would never try to get that much money from Middlesbrough.Mr Patton said: "You expressed the view you were the best player at the club and thought you were entitled to parity with the highest-paid player, who was in fact paid £80,000 a week."Downing said Middlesbrough chairman Steve Gibson would never pay that kind of money. He said: "Even when I went to Aston Villa I never ever demanded £80,000 a week.”He told the jury he thought he was one of the best players at the club and his new contract should reflect that.The Northern Echo reported that Robin Patton, defending, accounted for some of the missing money by detailing a number of items bought using the account in question. Mr Elliot is said to have helped Downing buy a string of high-performance cars, including Aston Martins, Bentleys and Ferraris, and arranged improvements to his property. Other items include exotic holidays for his parents, a £43,000 conservatory and a BMW X5 for his sister.The Northern Echo reports that the pair’s relationship ended on bad terms in 2008, when Mr Elliott was interviewed by former referee Jeff Winter on a North-East radio station. During the interview, Mr Elliott said Downing had expressed a desire to leave Middlesbrough, a claim Downing denies.Downing, who signed for Aston Villa for £10 million in 2009, has earned 25 caps for England since making his debut in 2005.Mr Elliott, from Whickham, Tyne and Wear, denies all the charges.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: agent,England,fleeced,footballer

Nearly half of Britons can't afford to save for pensions while Bank of England boosts Governor’s pension by £1.4M

Tuesday 1st February 2011

Research carried out by YouGov for the National Association of Pension Funds (NAPF) has revealed that just over half of Britons currently working fear that they won’t have enough money to live on when they retire. 43 per cent said they could not afford to save for a pension.

These figures have been released on the same day as news that the Bank of England has topped up Governor Mervyn King’s pension by £1.4 million, meaning that when he retires in 2013 he will be eligible to draw £198,000 annually.In light of YouGov’s research, the NAPF has set up The Workplace Retirement Income Commission to investigate the problem which will be headed by former chairman of the Treasury Select Committee Lord McFall.Lord McFall said on Monday: "Half the workforce is on a collision course with a long retirement spent in poverty. It's unacceptable that so many will head into old age worried about how they are going to get by. "A greyer Britain is one of the biggest challenges our society faces and there's a huge gap in public policy which must be filled. We need to find a sustainable and more universal approach to saving for retirement." Questions regarding Mr King’s salary and pension at the Bank of England surfaced following his warning last week that Britons faced a reduction in living standards that hasn’t been felt since the 1920s, as disposable incomes plummet due to wage freezes, tax rises and inflation.Last year Mr King was paid a base salary of £302,885. The Bank of England offers its senior directors one of the UK’s most generous pension schemes: they are entitled to two-thirds of their salary after twenty years, during which time they are not required to make any contributions.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: afford,boosts,Britons,England,Governors,Nearly,pension,pensions,while