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 household financial commitments reaches around £1160 per month on average. Mortgage repayments account for around £600 whilst credit card payments account for about £350. However, when it came to loan repayments, not including student loans, it was actually people aged fifty five and over that were under the most pressure.

The data was revealed as part of a report entitled Your commitments, Your Future, which is part of a wider campaign to help people to develop greater understanding with regards to financial commitments at different times of life.

An official from Standard Life said: “This understanding can help substantially with planning our personal finances so that we can feel confident about the future and achieve our goals. If people were to dedicate more time to their long term financial planning, they wouldn’t just be better off financially, they’re likely to be better off all round.”

Tags: different times, credit card, credit cards, financial commitments, term financial planning

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Millions facing financial difficulties

A recent charity report that has been released has suggested that millions of households across the UK are in financial difficulties due to debts, rising living costs, and wage freezes or cuts whilst millions more are in danger of falling into similar financial problems. The report comes from the Consumer Credit Counselling Service and paints a bleak picture of the state of millions of household finances.

According to the report more than three million households are now facing financial problems across the UK. Moreover a further one third are facing financial difficulties and are described as ‘financially vulnerable’ by the Consumer Credit Counselling Service.

The report shows that more than one million people are now struggling to repay their mortgage, and over 3 million are at least three months behind with a debt repayment or are facing action such as insolvency. A further three million are now struggling to make ends meet and could fall behind with repayments if there are any further rises in living costs or any cuts to their household income. Many people are said to be left with little to no disposable income once their essential costs such as mortgage or rent, bills, food, and car running costs have come out of their salaries and some do not even have enough to meet all of these essential payments any longer.

One debt industry official said: “With the recent increases in the cost of living and static or reducing family incomes it is not surprising that more and more people are suffering with financial difficulties. I expect this figure to continue to rise as more and more government cuts start to kick in and the unemployment rate starts to rise”

Tags: essential payments, United Kingdom, car running costs, insolvency, report, bills food

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Consumers get financial advice from friends and family

It has been reported that more and more consumers are now turning to friends and family in order to get advice about their finances rather than opting to go to a professional in the field. A study was carried out by insurance giant Aviva, which indicated that the majority of people felt more comfortable asking members of their family of friends for help and advice relating to financial matters than asking an industry professional.

With so many people having debt to deal with and many others feeling confused about their financial situations, the need to get advice has become more and more prevalent. The study results showed that only around one fifth of consumers were inclined to go to a financial advisor in the first instance in order to get financial advice. However, the figures did show that the older people became the more likely they were to go to an independent financial advisor.

The study was carried out to examine consumer attitudes towards their finances and how valuable consumers found professional financial advice to be. Almost three quarters of those aged between eighteen and twenty four said that they would turn to friends and family for advice rather than going to a professional. However, only one quarter of those aged sixty five and over would opt to ask friends and family over a financial advisor. The results of the study further suggested that there was a general lack of understanding amongst consumers with regards to the advice and services that independent financial advisors were able to offer.

One spokesperson from Aviva said: “It’s a concern that so many people are relying on friends or family and the internet for financial advice, and that they are not aware of what an IFA could offer them.”

Tags: Financial adviser, insurance, Certified Financial Planner, Independent Financial Adviser, debt, financial advisors, financial advisor

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Posted in: advice,consumers,family,financial,friends

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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Calls for financial education to become part of national curriculum

The 120 MPs of the All Party Parliamentary Group on Financial Education for Young People are lobbying for compulsory lessons regarding debt avoidance in schools.

The group already coordinates the various government agencies focused on the issue, and they want to make resources available to schools that want to teach the subject.Justin Tomlinson, chairman of the group, said to the Telegraph: “Young people are entering an increasingly complex financial world of store cards, mobile phone tariffs, credit agreements and financial marketing.Through my MP casework, I have seen first-hand the implications for those who have made poor decisions, too often through a lack of understanding.“I am passionate that financial education is the best way to equip all young people with the relevant skills to make informed decisions and empower them as consumers. I have been working hard to secure cross-party support to help champion this cause, so the next generation is equipped to confidently address the financial challenges ahead.”Nearly 33,000 people have signed an online petition run by moneysavingexpert.com calling for financial education to become part of the national curriculum, and a survey of 8000 people found that 97 per cent support the idea. Over 5000 people have written to their MPS asking them to support the All Party Parliamentary Group on Financial Education for Young People.Martin Lewis, creator of moneysavingexpert.com which is backing the group, said to the same paper: “It's a national disgrace that in the 20 years since student loans launched we've educated our youth into debt, but never about debt. Now as tuition fees are getting bigger and some will pay commercial rates of interest for them, we simply can't let students take this debt out unless they know how it works.”Wendy van den Hende - chief executive of the Personal Finance Education Group – said: “Although some excellent work has been done in schools, the delivery of personal finance education on a national level is patchy."
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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Calls for financial education to become part of national curriculum

Wednesday 9th February 2011

The 120 MPs of the All Party Parliamentary Group on Financial Education for Young People are lobbying for compulsory lessons regarding debt management in schools

The group already coordinates the various government agencies focused on the issue, and they want to make resources available to schools that want to teach the subject.Justin Tomlinson, chairman of the group, said to the Telegraph: “Young people are entering an increasingly complex financial world of store cards, mobile phone tariffs, credit agreements and financial marketing.Through my MP casework, I have seen first-hand the implications for those who have made poor decisions, too often through a lack of understanding.“I am passionate that financial education is the best way to equip all young people with the relevant skills to make informed decisions and empower them as consumers. I have been working hard to secure cross-party support to help champion this cause, so the next generation is equipped to confidently address the financial challenges ahead.”Nearly 33,000 people have signed an online petition run by moneysavingexpert.com calling for financial education to become part of the national curriculum, and a survey of 8000 people found that 97 per cent support the idea. Over 5000 people have written to their MPS asking them to support the All Party Parliamentary Group on Financial Education for Young People.Martin Lewis, creator of moneysavingexpert.com which is backing the group, said to the same paper: “It's a national disgrace that in the 20 years since student loans launched we've educated our youth into debt, but never about debt. Now as tuition fees are getting bigger and some will pay commercial rates of interest for them, we simply can't let students take this debt out unless they know how it works.”Wendy van den Hende - chief executive of the Personal Finance Education Group – said: “Although some excellent work has been done in schools, the delivery of personal finance education on a national level is patchy."
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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If you have any queries about this news story or our news section, please contact us

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Seek IVA debt help if budget cuts hit financial stability

With the recent recession having caused many individuals to lose their jobs, debt advice has never been more needed.  Job losses, especially in the public sector as the government looks to make both employment and budget cuts, may have severe adverse implications on household bank balances.  And with incomes significantly hit when breadwinners fall out of employment, IVA debt companies could help considerably.

IVA debt advice can be vital to those who are concerned about their finances.  Whether having lost their job, or worried about their employment future, it is important to ensure that debt can be handled in an efficient way so as not to adversely effect daily life.  It is here that IVA debt help can be of significant support, bringing down repayments to a manageable monthly level and helping individuals keep their spending under control.  IVA debt advice can also help people find alternative ways to save cash and create a more financially stable future.

For those who are concerned about the future of budget cuts and job losses, seeking IVA debt help early on is a brilliant first step.  Getting debt management advice at this time, before any severe life changes have occurred, could make a crucial difference on the impact of a job loss.  And by ensuring that IVA debt is under control as early as possible, the road to financial recovery will be far shorter than if debt is left to linger.

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How IVA debt help can address financial problems

For those with a significant amount of debt, IVA debt help is an ideal way in which to reduce and eventually clear some pressing financial concerns. IVA companies now help individuals avoid having to declare bankruptcy, reducing their overall debt into one affordable and manageable monthly repayment.

The acronym IVA stands for ‘Individual Voluntary Arrangement.’  IVA advisors are able to create a custom repayment package depending on an individual’s income and daily living expenses, making IVA advice very helpful for those with financial worries.

Not everyone is suitable for IVA debt help, and whilst debt may be causing considerable concern such a scheme is not to be undertaken lightly.  As a means to avoid bankruptcy, these schemes are best suited for those who have debts rising above £12,000.  Individuals have to have a regular household income to qualify for an IVA.

For those living in Scotland a similar alternative to bankruptcy exists, the protected trust deed, and this can be perfect for those who are struggling with monthly repayments.

Unlike taking out a loan to cover debts, IVA debt help is a legally binding contract that actually stops creditors from taking action against individuals to recover their money.  Over a time period set by the IVA advice team, a manageable repayment sum will be determined, with any extra debt being written off at the end of the period.  Leaving individuals completely debt free at the end of the process, IVA debt help is the ideal solution for those with considerable financial concerns that are worried about the future of their families and homes.

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Seeking debt advice for financial stability

For most individuals who find themselves in a difficult financial position, the prospect of mounting debt is extremely concerning.  It is vital for anyone in this situation to seek debt advice as quickly as possible to avoid worsening problems.  Catching spiralling debt at an early stage can be a key step for individuals and will help debt advisors reduce the financial difficulties as quickly as possible.

For those experiencing problems, overall concern of the situation can easily cloud the judgment and it is therefore vital to seek help from debt advice experts early.  Widely available across Britain, a debt advice UK specialist is able to go through financial records with a fine toothcomb, highlighting areas where individuals can save money.  This may be through reducing day-to-day expenses and cutting back on luxuries, or moving existing debt from products such as credit cards to other, less expensive loan options.

It is important when attempting to take control of debt, to seek debt advice wherever possible.  Pressure and anxiety from spiralling finances can cause many to seek options that may not be as advisable as others.  This can actually worsen the problems, and in some cases may lead individuals to have to seek bankruptcy advice due to increasing demands for repayments.

It is also important to realise exactly when debt advice is needed, and this perhaps can be one of the hardest steps to take.  However, seeking help from debt advice UK companies as soon as possible is the first step in reducing your spending, and taking control of your finances.

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Posted in: Advice,financial,Seeking,stability

Debt and financial commitments leave tenants struggling

According to recent reports many tenants in the UK are struggling with their rental payments as a result of high debt levels and other financial commitments. The number of tenants that are defaulting on their rent payments is said to be increasing, and this comes from the latest research from the Association of Residential Lettings Agents.

In the final quarter of last year around 40 percent of members of ARLA said that they had seen an increase in the number of rental defaults amongst their tenants. This was an increase from 35.9 percent in the third quarter of the year. Officials said that this was the first time this figure had increased in the space of eighteen months, which showed that a combination of high debts, financial commitments, and job losses were all taking their toll on tenants.

One official said that unlike homeowners tenants were not at risk of being repossessed, although they did run the risk of being evicted if they continued to default on payments. This meant that in some cases they would pay their credit card provider or other creditors before they paid their rent, depending on who made the most fuss about getting paid as quickly as possible. The lowest increase in tenant defaults was seen in the London area.

One industry expert said: “At the beginning of last year we predicted that the number of tenants having difficulties paying rent would increase and unfortunately, this seems to be the case today. It is a situation which can have serious repercussions throughout the PRS as, without guaranteed rent income, landlords may also have problems paying mortgages. At worst, it may result in a rise in repossessions. While it is difficult for landlords to predict whether current or prospective tenants will hit financial difficulties, our research highlights the importance for landlords or agents to implement a thorough selection process and to conduct reference checks on potential tenants – and to consider the benefits of rental protection insurance.”

Tags: homeowners, official, repossessions, repercussions, debt, repossessed

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Posted in: commitments,financial,leave,struggling,tenants

MPs want financial education to be introduced

Over recent years personal debt problems in the UK have become worse and worse, with the financial crisis and the recession only making matters worse. With the country in the state that it is in when it comes for personal finances and debt many MPs believe that it is time to take action to help the next generation to avoid similar problems in the future.

According to reports over one hundred MPs from different parties have come together to call for financial education to be introduced in schools on a mandatory basis. Around 120 MPs are said to have joined the All Party Parliamentary Group. The aim of the group, which has become the largest of its type ever, is to ensure that young people are educated and knowledgeable about financial matters and management.

With university fees rising, young people struggling to get a mortgage, and household finances facing extreme challenges, MPs believe that it has become increasingly important to make sure that young people are well educated with regards to finances so that they face less of a challenging future when it comes to money matters. A number of organisations and groups are also backing the campaign, and this includes the Citizen’s Advice Bureau, Which?, and the Personal Finance Education Group.

A member of the APPG said: “Young people are entering an increasingly complex financial world of store cards, mobile phone tariffs, credit agreements and financial marketing. Through my MP casework, I have seen first-hand the implications for those who have made poor decisions, too often through a lack of understanding. I am passionate that financial education is the best way to equip all young people with the relevant skills to make informed decisions and empower them as consumers. I have been working hard to secure cross-party support to help champion this cause, so the next generation is equipped to confidently address the financial challenges ahead.”

Tags: matters, university fees, party parliamentary group, personal debt problems, financial, Finance

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Posted in: education,financial,introduced