Debt problems could be exacerbated through stagnating wages

Many people across the UK have seen their wages either frozen or even cut over the past couple of years, despite the fact that living costs and inflation have soared. These days, consumers have to make their wages go much further than they had to in the past and according to some officials this could result in a huge problem with person debt over the next couple of years.

Stagnating wages compared to soaring inflation could be contributing to problems in repaying existing debt as well as with issues relating to taking out fresh debt, all of which is set to culminate in UK households having more than £2 trillion worth of debt by around 2015. Many basic and essential living costs have soared whilst wages have failed to keep up with inflation, which includes the cost of petrol, food and energy usage.

Many people who already have debts are finding it difficult to keep on top of repayments or pay anything more than the minimum amount required due to their financial situations. Many others have been forced into taking out new debt as they have had to borrow money in order to stay afloat financially because they have been unable to make their wages stretch far enough. Some may be forced into opting for solutions such as insolvency over the coming year or two, as their financial situations become worse, particularly if the base rate increases and their mortgage repayments shoot up.

An official from a union said: “As wages have stagnated, debt has soared. As incomes are squeezed further, the Office for Budget Responsibility expects household debt in this country to reach over £2 trillion by 2015 – an albatross around the neck of our economic future.”

Tags: mortgage repayments, petrol, finances, energy usage, financial situations, insolvency

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Posted in: could,exacerbated,problems,stagnating,through,wages

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 families and those earning more than £30,000. Of those included in the survey, around 250 brought in an income of £12,000 or less a year. It was found that:

58 per cent of poorer families believed they were no better off working and paying for childcare, compared to 19 per cent on higher income families who shared this view.47 per cent had made cutbacks to the amount of after-school activities their children participated in, compared to 22 per cent of higher income households.61 per cent of low-income families admitted they were struggling to afford childcare. Just 37 per cent of higher earners also admitted this.

Kate Groucutt, from the Daycare Trust, said:

“Our research shows that childcare costs have risen every year for the last 10 years.

“This, combined with the recent cuts to the childcare element of working tax credits, means that the financial burden on parents is greater than ever.”

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

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 purchases, and this is possibly due to concern over rising energy and fuel prices, the threat of redundancy or long-term unemployment, and high inflation. Another important factor is worry over debt management, as the squeeze on household budgets has made less people willing to splash out on large purchases.

Mark Saddleton, who is the Head of Economic and Market Analysis at Nationwide, commented on the findings of the latest Consumer Confidence Index and offered some more positive news for consumers. He said:
“There are signs that the weakness of consumer spending power is beginning to exert downward pressure on prices in the High Street, and better than expected inflation figures for June give hope that there may be some respite for consumers ahead.”

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

R3 report shows Scots have greater debt problems than rest of UK

A new report produced by the insolvency trade body R3 has suggested that people living in Scotland are facing greater debt problems than anywhere else in Britain.

The report, R3’s quarterly debt snapshot, showed that 13 per cent of Scottish people had taken on extra debt in the last few months, in the form of loans, increased overdrafts and credit card debts. In the rest of Britain, this figure was just 12 per cent.

The research also found that 43 per cent of Scots struggle to make it to payday. Whilst this was 3 per cent less than the figure recorded for the rest of Britain, it was found that 200,000 Scottish people had taken out payday loans (small, short-term loans designed to cover the borrower’s bills and
expenses until the next payday) to cover their budgetary shortfall in the last year.

R3 revealed that one in five Scottish people who had taken out these payday loans struggled to pay back what they owe, which is considerably more than the one in ten Brits who admitted the same.
John Hall, who is an R3 Scottish council member, said:

“It is extremely worrying that such a large percentage of people are struggling to make it to payday and that many are using payday loans to bridge the gap.
“These loans tend to have high interest rates and often those who use this type of credit find themselves in a vicious debt cycle, especially if they then experience a sudden job loss.”

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Posted in: greater,problems,report,Scots,shows

Derbyshire man caught dealing drugs to tackle debt problems

A 24-year-old man originally from Glossop in Derbyshire has been caught attempting to deliver drugs to Dundee in a deal designed to help him tackle his debt problems.

Peter Hadley, 24, was arrested by police leaving a hotel in Perth with more than a kilo of heroin in his possession. He was caught after a tip-off informed police that Hadley was involved in supplying drugs and they spotted his car outside the Travelodge hotel whilst on another call. In addition to the drugs, which were believed to have a street value of £116,000, Hadley also had around £1,700 in cash on his person.

The High Court in Edinburgh heard how Hadley had serious debt problems, and it was this that motivated his crime. He had apparently borrowed money from an acquaintance in Liverpool, and the interest on the loan was mounting faster than he could cope with.

The crooked lender offered Hadley the chance to eradicate his debt problems by delivering packages, now known to contain heroin, to Dundee. Rather than seeking proper debt help for his problems, Hadley took this opportunity.

He had already travelled to the Scottish city on three previous occasions before he was caught, with the promise from the loan shark that his debt would be reduced by a few hundred pounds each time.

Krista Johnston, solicitor for the defence, made the case that Hadley had not previously been involved with the dealing or supplying of drugs, and argued that it was being threatened and even assaulted over his debt problems that had prompted him to do it.

Nonetheless, Hadley was sentenced to 40 months in prison for preparing to deliver the heroin.

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Posted in: caught,Dealing,Derbyshire,drugs,problems,tackle

Debt problems increase as home repossessions set to surge

There could be debt problems for thousands of homeowners after a leading bank chief warned that a surge in the number of home repossessions would follow if the base rate of interest increases.

Richard Banks, Chief Executive Officer of UK Asset Resolution, the government company that manages the £80 billion mortgage portfolio of the bailed out banks, also warned that the government’s efforts to try and help people that are struggling with their mortgage debt (by keeping them in their homes), it could lead to more severe debt problems in future.

The organisation is the country’s fifth-largest mortgage lender and has around 750,000 customers, although 23,000 of those mortgages are over six months behind with payments.

It was set up by the government to run the mortgages of nationalised lenders such as Bradford & Bingley and parts of Northern Rock.

Speaking to the Guardian newspaper Mr Banks said that lenders need to adopt a tough love approach, and that the projected number of people falling behind on payments could get ’scary’ if lenders did nothing to prepare for inevitable higher rates.

He warned: “You can see if you don’t do something about it, you can see a tsunami.

“It’s treating customers fairly, not nicely, because if you can’t afford your mortgage, you are only increasing your indebtedness.

“If we allow you to increase your indebtedness, that’s not really fair to you.”

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Posted in: increase,problems,Repossessions,surge

1.2m people could face debt problems due to HMRC tax error

As many as 1.2 million people could be facing debt problems as HM Revenue and Customs (HMRC) reveals that there have been errors with the Pay As You Earn (PAYE) tax system.

An internal audit into the PAYE system has uncovered a long list of wrong payments, with as many as five million people having paid either too much or too little tax on their earnings in 2010-11. Whilst a lot of people may receive tax rebates because of the error, a total of 1.2 million are believed to have underpaid by as much as £600 in the tax year ending April 2011.

To address the shortfall, it is likely that most of those who owe money will have £50 a month deducted from their pay until they are in the clear. This could lead to debt problems for those who are already struggling to make ends due to rising inflation and low wage increases.

HMRC is also planning to be less lenient on those who owe money than it has been in previous years. In 2010, the government department agree to not to pursue those who owed less than £300, whereas this year it will be chasing up unpaid tax of more than £50.

Accountancy firm Grant Thornton, which released the figures, expressed concern that the HMRC’s tougher tax debt recovery methods could affect elderly people more than others. Accountant Mike Warburton said:

“I have a particular concern about pensioners, not simply because many would find it difficult to pay the tax, but because they are often caught with underpayments.”

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Posted in: could,error,people,problems

Quarter of Bridlington residents facing debt problems due to ‘fuel poverty’

According to a recent report, up to one in four households in Bridlington are facing debt management problems due to ‘fuel poverty’.

The East Riding Council committee commissioned a report which found that across the region, 18 per cent of households are suffering from fuel poverty, which is greater than the national average of 16 per cent. Fuel poverty is when a household has to pay out more than 10 per cent of its total income in order to cover fuel bills and to maintain a satisfactory level of heating.

The key areas which have the highest levels of fuel poverty (above 26 per cent) were highlighted in the report to the committee. Included in this list were all three Bridlington wards, prompting concern that the residents of these areas may soon be in urgent need of debt help.

Looking back at the figures for the East Riding region in 2008, it can be seen that fuel poverty rose by six per cent since 2006. The problem may even get worse, as energy costs look set to rise alongside increases in the everyday costs of living.

Councillor John Wilkinson, who is the chairman of the environment and regeneration overview and scrutiny sub-committee, said:

“It’s going to get worse as fuel costs rise and will affect a very vulnerable section of the community, which I think is mainly older people and young families that have got very little spare income.

“The council is concerned about this. We are doing all we can to assist vulnerable people involved.”

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Posted in: Bridlington,facing,poverty,problems,Quarter,residents

Debt problems causing increased stress for British consumers

A recent poll conducted by Scottish Provident has found that people with the greatest debt problems and money worries are suffering from more stress than the average British person.

In the survey, a total of 37 per cent of UK adults said that they would describe themselves as either “stressed” or “very stressed”. However, this situation was revealed to be much worse for those with pressing debt management problems.

Of those describing themselves as stressed, 49 per cent were people without any savings and 47 per cent were those who couldn’t afford to put any spare cash aside. For many of these people, it will be the case that any savings will have been used to cover loan and credit card debt repayments, as well as helping other monthly expenses to be met.

Susan Barclay, who is the head of marketing at Scottish Provident, commented on the results of the poll. She said:

“It is no surprise given the current financial climate that many millions are feeling the pressure and becoming stressed.

“The soaring cost of living, coupled with concerns about job security, will lead many to question how they will be able to pay their bills against a backdrop of inflationary pressures and wage freezes.”

The Scottish Provident poll is not the only piece of research to suggest that British consumers are increasingly worried about their finances. A study conducted for The Co-operative Bank recently revealed that around 80 per cent of Brits are currently worried about money, with most of their concerns centring on the increasing cost of energy bills.

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Posted in: British,causing,consumers,increased,problems,stress

Neil Morrissey speaks out about debt problems

The British TV actor Neil Morrissey has spoken out to the press this week about the financial pressure he found himself under when his business collapsed. At one point, the former Men Behaving Badly star was believed to have debt problems totalling £2.5 million.

Speaking to the Daily Mirror, Morrissey explained how the hotel and pub business he had built up over the last decade had failed and how he was left with a hefty pile of debts to pay. He said:

“At one point it was so bad, I could have lost the shoes I was standing up in, but rather than go bankrupt, I decided to step up and try to pay it back.

“I did have days with a sick ­feeling in the pit of my stomach and I thought. ‘when will this end?’

“But everyone has those ­feelings at one time or another. I just had to pick myself up and get on with it. I had to sit down with the creditors and have a realistic chat about what I could afford to repay.”

Morrissey was advised by debt help experts to consider an IVA (individual voluntary arrangement). He is currently halfway through his IVA plan, which will see him pay back more than £1 million of his debt management problems.

As well as acknowledging the support of his long-term girlfriend Emma Killick in helping him through his cash crisis, Morrissey has also taken on more work recently. He has returned to TV in the BBC’s Waterloo road, and has even undertaken a regional theatre tour, all to help him reach his goal of being totally debt-free in 18 months.

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Posted in: about,Morrissey,problems,speaks

Worrying debt management problems reported in Worcester

The Consumer Credit Counselling Service (CCCS) has released figures which show that hundreds of people in Worcester are in serious need of debt help, with the average person owing nearly £20,000 in 2010.

The debt problems in Worcester were highlighted after the CCCS came across records showing that a total of 396 people from the city and surrounding areas contacted debt help services last year. This represents a considerable rise of 24 per cent in the last couple of years. The charity also released a Debt View map, which highlighted the levels of personal debt in each area.

On average, people in Worcester have debt problems totalling £19,832 (in unsecured debt), which is a little higher than the national average of £19,338. Commenting on this alarming figure, the CCCS’s Delroy Corinaldi said:

“I am very concerned, not only by the high levels of debt we are seeing in Worcester, but also by the continuing squeeze on household budgets that is making it increasingly difficult for debtors to repay what they owe.”

Another problem for the people of Worcester is the pending closure of the money-lending credit union Black Pear, which many locals relied on as an alternative to other, more risky forms of lending. The chairman of Black Pear, Clifford Hobbs, said:

“We stopped giving loans about two months ago and we are just about to hand over to the financial services compensation scheme.

“I think it might get worse for people on low incomes because the credit union was an alternative to doorstep lenders.”

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Posted in: Management,problems,reported,Worcester,Worrying

Pay gap intensifies debt problems for low earners

A new report published by the Trades Union Congress (TUC) has claimed the stagnation of pay levels for most British people in the last few years has made them more likely to experience debt problems.

The report, entitled ‘Britain’s Livelihood Crisis’, looked at economic growth and the rates of pay for low, median and top earners between 1978 (the last year before Margaret Thatcher was elected) and 2008, which is the year in which the recession first began in the UK.

Researchers found that during this period, the economy nearly doubled in size but British people on low incomes saw just a 27 per cent rise in household wealth. Meanwhile, middle earners experienced a 56 per cent increase.

The report also pointed out that in contrast, a small section of top earners saw their incomes rise astronomically, such as lawyers who saw their pay rise by 114 per cent. This demonstrates a considerable widening of the pay gap, leaving many low earners with no choice but to rely on consumer credit to cover their current lifestyles.

The ‘Britain’s Livelihood Crisis’ report states:

“Although severe debt problems can sometimes be the result of poor money management, the evidence is that the great majority of problems of default arise because of external shocks and a sudden fall in income arising from redundancy, reductions in pay or hours worked, business closure, family break-up or ill-health.

“Indeed, an important consequence of the growth of indebtedness has been the increased risk of financial hardship associated with worklessness or falls in pay.”

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Posted in: earners,intensifies,problems

Study reveals students feel positive about debt problems

A study conducted by Ohio State University in America has yielded some surprising results relating to the way young people view their debt problems.

The research was conducted by Rachel Dwyer, who is an assistant professor of sociology at the Columbus-based university, along with colleagues Randy Hodson and Laura McCloud. It looked at the attitudes of 3,079 young adults from all parts of the country towards acquiring debt whilst at university.

Rather than feeling stressed or anxious because of the money they owed through student loan and credit card debt, the young people included in the study actually felt quite empowered by it. In fact, the larger the debts these people had, the greater their self-esteem was and the more they felt they had control over their lives.

Lead author Rachel Dwyer explained this surprising outcome, saying that debt could be a positive for young people as it gives them the financial support they need to achieve their goals, such as getting a degree.

She also pointed out that for some types of debt, such as credit card debt, students may feel positive about it only because it allows them to buy the non-essential things they want or need, without the need to delay gratification by having to save up.

Dwyer said: “We thought educational debt might be seen as a positive because it is an investment in their future, while credit card debt could be viewed more negatively.

“Surprisingly, though, we found that both kinds of debt had positive effects for young people. It didn’t matter the type of debt, it increased their self-esteem and sense of mastery.

“Some young people may be using credit card debt to help finance their college education – for items like textbooks – which is why they may see it as a positive. But there is no way to know that from the data.

“Obviously, they are probably using credit cards for multiple purposes. Along with education spending, they could be using credit cards to pay for non-essential items.

“They may feel good about their debt only because it allows them to buy the things they want without having to delay gratification.”

However, this attitude to debt may also be a dangerous one, as Dwyer explains in the study:

“Young people seem to view debt mostly in just positive terms rather than as a potential burden.”

“By age 28, they may be realizing that they overestimated how much money they were going to earn in their jobs.  When they took out the loans, they may have thought they would pay off their debts easily, and it is turning out that it is not as easy as they had hoped.”

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Posted in: about,positive,problems,reveals,Students,Study

Scottish Power energy price rise to leave many families with debt problems

The announcement that Scottish Power is to raise its energy prices has left many households across the country worrying that they may face debt management problems when winter comes around.

Scottish Power revealed that from August 1st 2011, its electricity charges will be rising by 10 per cent and gas prices will jump by 19 per cent. For many families, this will mean nearly £200 added to their annual dual-fuel energy bill.

This is not the first rise in energy charges for Scottish Power within the last twelve months; the company increased electricity bills by 8.9 per cent and gas by 2 per cent in November 2010.

The announcement has also prompted concerns that other energy suppliers such as E.ON, British Gas, Scottish & Southern Energy, npower and EDF Energy may also raise their prices in line with Scottish Power.

Audrey Gallacher, who is the head of energy at watchdog Consumer Focus, said:

“This huge increase will be a body blow for consumers and we fear other firms will follow Scottish Power’s lead.

“Companies have been softening customers up for price rises for months but customers will be shocked at the scale of this rise. Every household in the country will now be bracing themselves for the impact.”

The announcement comes in the same week that the Institute of Fiscal Studies (IFS) published research showing that a number of the poorest pensioners in the UK are facing a choice between eating and heating their homes in periods of cold weather.

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Posted in: energy,families,leave,Power,price,problems,Scottish

People advised to pay off debt problems rather than saving

- Friday, 4 March 2011

Brits with financial issues have been advised to pay off their debt problems rather than saving as interest rates are low.

Such is the suggestion of Ed Bowsher, head of consumer finance at lovemoney.com, which is an everyday money site.

He said: "If you have a serious debt problem, I'd firmly advise you to pay down your debt rather than save.

"You'll get a poor return on your savings at the moment, so it makes more sense to pay down your debt. Then when interest rates rise, you'll be paying less interest because your debt is smaller."

Therefore, Brits worried about their finances may want to seek debt help sooner rather than later.

Mr Bowsher made these comments after moneysupermarket.com revealed on March 1st that five million Brits are permanently overdrawn.

It was found that one in ten people in the UK live in their overdraft and the price comparison sits stated that these consumers could save as much as £240 a year by switching current account.
Thu, 03 Mar 2011
Single people living alone are the most likely to overspend to pay for a comfortable lifestyle, which may lead them into debt problems... Wed, 02 Mar 2011
Brits, including those currently seeking debt help, have been urged to budget to make their money stretch further... Tue, 01 Mar 2011
Brits currently seeking debt help could save around £300 a year by bundling their broadband, home phone and digital TV into one package, with one provider... Mon, 28 Feb 2011
Brits, including those seeking debt advice, may want to install a water meter in order to save money on their water bills...

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Posted in: advised,people,problems,rather,saving

People with debt problems should budget to make pay packets go further

- Wednesday, 2 March 2011

Brits, including those currently seeking debt help, have been urged to budget to make their money stretch further.

Such is the advice of Ed Bowsher, head of consumer finance at lovemoney.co.uk, which is an everyday money site.

He said: "The secret to stretching your pay packet is budgeting. If you monitor what you spend, and plan your future spending with real care, your spending should fall."

Other ways in which people with debt problems could make more money to pay off their debt solutions is by renting out a spare room.

Mr Bowsher added that renting a room out is a great way to make some money, especially as no tax has to be paid on rental income up to £4,250 a year.

He made these suggestions after the Resolution Foundation analysed official government figures and found that average pay is set to be no higher in 2015 than it was in 2003, despite inflation increasing.
Thu, 03 Mar 2011
Single people living alone are the most likely to overspend to pay for a comfortable lifestyle, which may lead them into debt problems... Tue, 01 Mar 2011
Brits currently seeking debt help could save around £300 a year by bundling their broadband, home phone and digital TV into one package, with one provider... Mon, 28 Feb 2011
Brits, including those seeking debt advice, may want to install a water meter in order to save money on their water bills... Fri, 25 Feb 2011
Parents seeking debt help should ask their children, who are earning a wage, to contribute towards their living costs...

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Posted in: budget,further,packets,people,problems,should

People with debt problems could install a water meter to avoid hike in bills

- Monday, 28 February 2011

Brits, including those seeking debt advice, may want to install a water meter in order to save money on their water bills.

Such is the suggestion of Ann Robinson, director of consumer policy at uSwitch.com, who stated that if a home has more bedrooms than people a water meter can be cost-effective and save a household £56 a year.

She made these comments after Ofwat announced that the average water bill will increase by 4.6 per cent to £356 a year in April.

Ms Robinson stated there are other options for consumers, including those living with debt solutions, if a water meter is not suitable for them.

She said: "If a water meter isn't the right choice, consumers should look at where they can make savings.

"Switching energy supplier can save up to £458 a year, while being on the best deal for your home phone, broadband and TV bundle can cut £261 off your household bills."

Dave Rodger, managing director of the Debt Advice Foundation, recently suggested that parents with working children living at home should ask them to contribute to the household costs.
Tue, 01 Mar 2011
Brits currently seeking debt help could save around £300 a year by bundling their broadband, home phone and digital TV into one package, with one provider... Fri, 25 Feb 2011
Parents seeking debt help should ask their children, who are earning a wage, to contribute towards their living costs... Thu, 24 Feb 2011
People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems... Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card...

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Posted in: avoid,bills,could,install,meter,people,problems,Water

Brits with debt problems could save £300 a year on broadband

- Tuesday, 1 March 2011

Brits currently seeking debt help could save around £300 a year by bundling their broadband, home phone and digital TV into one package, with one provider.

That is according to broadbandChoices.co.uk, which also found that 28 per cent of British broadband customers are missing out on these savings by not bundling up their internet with digital TV or a home phone.

If someone wishes to become debt-free quicker, they could consider switching to a provider which offers all three things in one package as this can help them save money.

Michael Phillips, product director at the price comparison site, stated: "The cost of living is rising.

"British consumers need to review their spending to minimise the financial blow, therefore it is surprising that such a high proportion of British broadband customers do not realise that bundles offer excellent value for money."

People with debt solutions could also consider signing up to Talk Talk for their broadband and telephone as the package is currently being offered with a 50 per cent discount.

  Mon, 28 Feb 2011
Brits, including those seeking debt advice, may want to install a water meter in order to save money on their water bills... Fri, 25 Feb 2011
Parents seeking debt help should ask their children, who are earning a wage, to contribute towards their living costs... Thu, 24 Feb 2011
People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems... Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card...

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Posted in: Brits,broadband,could,problems

Buying a holiday on a credit card could lead to debt problems

People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems.

Such is the advice of Justin Modray, from financial advice website candidmoney, who also stated that using a credit card to purchase a holiday can be beneficial as it offers protection on purchases over £100.

He said: "Credit cards are usually an expensive way to borrow money so try to avoid using cards for big purchases unless you plan to repay the bill shortly afterwards."

Therefore, if consumers do not want to end up needing debt solutions in the future, they may want to avoid borrowing money on a credit card.

Research by Travelex, which was released on February 22nd, showed that 26 per cent of the population are planning to pay for their holiday using a credit card, with 11 per cent having already done so.

This is an increase of ten per cent from last year.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing... Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another...

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Posted in: Buying,could,Credit,holiday,problems

Parents with debt problems should ask earning children for help

- Friday, 25 February 2011

Parents seeking debt help should ask their children, who are earning a wage, to contribute towards their living costs.

Such is the advice of Dave Rodger, managing director of the Debt Advice Foundation, a national charity.

He said: "While it is understandable that parents often don't feed their children, even when they are earning a wage, they should pay to live in the family home."

Parents should be able to ask their children to contribute even though it is a hard conversation to have, he added.

Those seeking debt solutions with non-dependant children who do not contribute any money may find it harder to be accepted onto a debt management plan than those who have children who pay a percentage of their income to their parents, Mr Rodger stated.

According to research from first direct, parents could save more than £10,000 over five years on their mortgage if their children pay them £160 a month for bed and board.
Thu, 24 Feb 2011
People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems... Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing...

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Posted in: children,earning,parents,problems,should