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Tuesday 07th of October 2008

Latest Debt News

The latest news on consumer debt:

September 5, 2008

Youngsters avoiding debt by saving early

by Kay Murchie
Research from The Children’s Mutual has revealed that children as young as 11 have started saving towards their future. The Child Trust Fund provider found that almost one third of youngsters aged 11 to 18 are putting money aside for higher education as these astute youngsters have seen older family members suffer due to university debts. The research also found that over 30% ...

August 22, 2008

UK debt exceeds £1 trillion

by Kay Murchie
Research from accountants Grant Thornton has revealed that the total amount owed by consumers through mortgages, loans and credit cards increased by 7.3% during the six months to 30 June to stand at £1.444 trillion. However, during the same six-month period, Gross Domestic Product (GDP) only rose by 5.1% in nominal terms to £1.41 trillion, meaning personal debt exceeds the income generated ...

August 4, 2008

Financial health of UK households at lowest level

by Kay Murchie
As a result of the ongoing credit crunch, UK households are cutting back on spending. Furthermore, rising mortgage payments, together with the sharp rise in food and fuel costs is adding to the financial strain on UK families. The latest Alliance Trust Research Centre's Financial Reality Index has revealed that the financial health of households in the UK is at ...

July 10, 2008

New car tax to hit nearly 10 million people

by Brian Turner
New car tax to hit nearly 10 million people
The government has admitted that the new car tax rules, which aims to increase tax on cars according to carbon dioxide emissions, will create higher tax bills for as many as 9.4 million people. The change is expected to raise around £1 billion in tax revenues by 2011. It comes at a time when motorists are already reeling at record ...

June 5, 2008

British people in denial about debt

by Kay Murchie
According to new research from MoneyExpert.com and CreditExpert.co.uk, many Britons are in denial about the level of debt they are in, while others worry about their ability to manage their debt. MoneyExpert.com, the financial comparison website, said its latest Debt Index revealed that in the last 3 months, the number of people concerned about their debt increased from 33% to 38% , ...

June 4, 2008

FSA launches money guidance website for young peopleA new website has been launched by the Financial Services Authority (FSA) which offers financial information for young adults.

by Kay Murchie
A new website has been launched by the Financial Services Authority (FSA) which offers financial information for young adults. The website, www.whataboutmoney.info, has been designed to give guidance about obtaining, saving and spending money. Research by the FSA has established that two-thirds of young people are not planning ahead and 80% of young people are in debt by the age ...

May 23, 2008

Birmingham Midshires - savings level increase

by Kay Murchie
Research from Birmingham Midshires has revealed that savings level are increasing in spite of the credit squeeze having an impact on struggling households. The study shows that people in the UK appear to be prepared to take action to safeguard their spending. Britons are topping up their savings account and dipping less into funds. Over the last 3 months, an average of £938 ...

May 19, 2008

Transact - more people seeking help for debt problems

by Kay Murchie
Transact, a national debt advice organisation, has said that the credit squeeze is leaving many professional people and homeowners struggling to cope with their debts. The organisation, which represents over 1,200 debt advice centres, said its branches in some of the most wealthy regions of the UK are now being inundated by demands for help. Demand for advice was ...

May 6, 2008

Insolvencies on the increase

by Kay Murchie
Figures published by The Insolvency Service have revealed that the number of people declared insolvent has risen for the first time in over 12 months in the first 3 months of 2008. The figures show that 25,264 people have been declared insolvent, which represents a rise of 1.7% compared with the last 3 months of 2007. Furthermore, there were 9,614 Individual Voluntary Arrangements (IVAs) ...

April 28, 2008

Hull’s Citizens Advice Bureau set to close in autumn

by Kay Murchie
Records show that debt enquiries have hit record highs recently as higher mortgage repayments and rising utility bills means that households are struggling. This has resulted in the Citizens Advice Bureau (CAB) being inundated with queries. However, one of the CAB’s busiest branches is being forced to close. The branch in Hull, which has renegotiated debt for people who owed ...

April 22, 2008

Working-class in debt by living middle-class lifestyle

by Kay Murchie
A study from Moneysupermarket.com, the price comparison site, has found that approximately 2.7 million 'social climbers' have an average personal debt of £13,000 excluding mortgages. Worryingly, many have been re-mortgaging their homes in order to fund this luxurious existence. A spokesperson for Moneysupermarket.com said the value in house prices is falling which means equity in their homes is going down ...

April 7, 2008

Unpaid debts will result in court judgements

by Kay Murchie
Accountants KPMG are predicting that a million county court judgments will be issued this year, up from almost 800,000 in 2007 and nearly double the 538,383 judgments recorded in 2004. County court judgments relate to unpaid debts including on credit cards, personal loans, car loans and store cards. They are often followed by visits from bailiffs, who can seize property in ...

April 3, 2008

Borrowers race for cash, personal debt soars

by Kay Murchie
Consumers are rushing to borrow what they can as the credit squeeze continues and cheap re-mortgaging deals disappear. As a result, credit card debt increased by £350 million and bank loans and overdrafts soared by £2 billion in February. According to figures from the Bank of England, this represents the highest monthly increase since records began in 1987. Tracey North ...

March 31, 2008

Money worries result in millions slashing their spending

by Kay Murchie
Research from comparison site MoneyExpert has revealed that households are slashing spending and dipping into their savings because money is so tight. The report shows over 26.3 million adults are planning to cut their spending this year as fears about the credit squeeze hit home. Sean Gardner of MoneyExpert said the credit squeeze is moving on from being something ...

March 14, 2008

Teenagers have high financial hopes

by Kay Murchie
A study from NatWest has established that today’s teenagers are underestimating the amount of debt they will accumulate over the course of their university lives and are in need of financial education. Furthermore, they believe they will have a lifestyle greatly beyond the means of most graduates and expect, on average, to be earning a salary of £31,000 and own their own ...

March 10, 2008

Thirtysomethings face future of poverty

by Kay Murchie
People under the age of 35 face the prospect of working until they are 76 because financial demands are threatening their plans for a comfortable retirement A study, carried out for the Skipton Building Society, interviewed over 1,200 adults aged 18 to 35, discovered that many under-35s are facing the prospect of working well into their mid-70s if they want to retire comfortably. ...

March 4, 2008

New £12 million money guidance service

by Kay Murchie
A free money guidance service is to be launched to help consumers with money matters. The Government has pledged £12 million for a large-scale trial which will provide general advice on issues such as dealing with debt, budgeting and retirement planning. It is expected that 750,000 people will use the service during the two-year trial, which is intended to establish how a ...

February 27, 2008

Credit crisis means the end of cheap credit

by Kay Murchie
Credit crisis means the end of cheap credit
According to the Financial Services Authority, cheap credit may be gone forever. Hector Sants, FSA’s Chief Executive, said he doesn’t think markets are ever going to return to the way they were before the global turmoil triggered by the collapse of the US sub-prime mortgage market last summer. Mr Sants said that banks will shy away from the innovative products ...

February 26, 2008

Growing amount of people worrying about debt

by Kay Murchie
A survey conducted by MoneyExtra, the financial services comparison service, has revealed that many people are worried about their growing levels of debt. MoneyExtra established that 27% of consumers have increased the amount of money they have borrowed in the last 3 months. In addition, one in three adults with debt said they were concerned about their ability to deal with ...

February 24, 2008

Help for youngsters to avoid getting into financial difficulty

by Kay Murchie
Support charities Citizens Advice and YouthNet have teamed up for a project to help young people avoid getting into financial difficulty. Through new technology, the 2 charities hope to reach half a million youngsters by using via the internet, podcasts and mobile phones. Moira Haynes of the Citizens Advice Bureau (CAB) said young adults, such as students, are particularly vulnerable ...