Latest: Debt News

70% of UK adults in debt

70% of UK adults in debt

Seven in ten UK adults are in debt but many are choosing to ignore the problem instead of seeking help before it gets out of hand. Research by The Co-operative Bank found that 29 per cent of people refuse to confront their debt problems. Many do not admit that they are in debt until borrowing […]

March 1, 2012 More
UK households falling deeper into debt

UK households falling deeper into debt

UK households will find it increasingly difficult to service their debts in the coming years, according to a report by debt charity, Consumer Credit Counselling Service (CCCS). According to the charity’s research, an average of more than 23 per cent of households’ disposable income went towards interest payments on loans at the end of 2011. […]

February 27, 2012 More
Netmums says families in financial crisis

Netmums says families in financial crisis

The economic downturn, the rising cost of living and the government’s austerity programme have pushed over 70 per cent of UK families to the brink of poverty, according to online parenting organisation Netmums. The organisation surveyed over 2,000 of its members this month to find out how they are coping in the economic downturn and […]

February 17, 2012 More
Monthly pay lasting just 17 days

Monthly pay lasting just 17 days

Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank. This means that the average UK worker spends half the month worrying about money. The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start […]

February 9, 2012 More
More women experiencing debt difficulties

More women experiencing debt difficulties

Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, […]

February 7, 2012 More
Fewer people declared bankrupt in 2011

Fewer people declared bankrupt in 2011

The number of people declared insolvent in 2011 in England and Wales declined to 119,850, the lowest level for three years and a fall of 11.3 per cent from a record high in 2010. There was a sharp decline at the end of 2011, when personal insolvencies fell by 5.6% compared with the last three […]

February 3, 2012 More
Personal debt falls by £377 million

Personal debt falls by £377 million

Economic uncertainty and the threat of another recession is causing consumers to take charge of their finances and cut back on debt according to the latest figures from the Bank of England. Personal debt, excluding mortgages, fell by £377 million in December, the biggest fall since records began. Howard Archer an economist at Global Insight […]

January 31, 2012 More
Debt soars for UK families

Debt soars for UK families

The rising cost of essentials such as fuel and food has contributed to a 48 per cent increase in the level of personal debt, according to the latest Aviva Family Finances Report. The average British family now owes around £7,944 in unsecured borrowing, compared with £5,360 a year ago, despite a 7 per cent increase […]

January 26, 2012 More
More UK households cutting back on spending

More UK households cutting back on spending

Nearly one third of adults in the UK expect to spend less in 2012 compared with around a fifth in October, according to the Resolution Foundation, an independent research and policy organisation which aims to improve outcomes for people on limited income. The survey, which was carried out by Ipsos Mori on behalf of the […]

January 23, 2012 More
One person per minute declared bankrupt

One person per minute declared bankrupt

National money education charity Credit Action today revealed that one person is declared insolvent or bankrupt every 60 seconds during the working week. Based on statistics gathered in the third quarter of 2011, the charity estimates that 331 people are made insolvent or bankrupt every working day and 101 properties are repossessed every day. The […]

January 13, 2012 More
Austerity plans will hit families hardest

Austerity plans will hit families hardest

The Family and Parenting Institute (FPI) today warned that families with children will be worst affected by the Government’s proposed changes to tax and benefits. A study by the Institute for Fiscal Studies on behalf of the FPI suggests that the average income of families with children will fall by 4.2 per cent by 2015-16, […]

January 4, 2012 More
OFT clamps down on payday lenders

OFT clamps down on payday lenders

The Office of Fair Trading (OFT) is increasing its scrutiny of payday loan companies after the number of complaints about them soared. In a report to the Government, the OFT revealed that the number of complaints received by helpline Consumer Direct about payday loan companies more than doubled to 1,535 in the 11 months to […]

December 13, 2011 More
Shoppers risk financial security for Christmas

Shoppers risk financial security for Christmas

Although stores have been forced to start their sales early this year to persuade shoppers to part with their money, nearly a third of people in the UK will go into debt over Christmas. Fifty-eight percent of this group will put more spending than usual on credit cards and thirty-nine per cent will go overdrawn […]

December 12, 2011 More
Payday loans creating Zombie debtors

Payday loans creating Zombie debtors

High levels of interest on payday loans are helping to create ‘Zombie’ debtors – people who can only afford to pay the interest on their debts each month and not the debts themselves. Based on a study of 2,000 adults, insolvency trade body R3 suggests that around 45 per cent of the population struggle to […]

December 7, 2011 More
UK carers struggling to make ends meet

UK carers struggling to make ends meet

Around half of the 6.4 million unpaid carers in the UK are suffering ill-health because of money worries according to Carers UK. A survey of 4250 unpaid carers found that 40 per cent of respondents had fallen into debt because of their caring responsibilities, and 86 per cent of carers in debt suffered mental health […]

December 2, 2011 More
Consumer credit flat – money supply falls

Consumer credit flat – money supply falls

The economic crisis is making consumers wary of taking on more debt, according to the latest figures from the Bank of England. The amount of consumer credit totalled £0.9 billion in October, the same as for the previous month, and only slightly higher than the six month average of £0.8 billion, suggesting that pressure on […]

November 30, 2011 More
Government fails to tackle loan sharks

Government fails to tackle loan sharks

The Government’s failure to act against legal loan sharks yesterday has angered pressure groups. As part of its review on consumer credit, the Government announced a voluntary deal for High Street stores to stop offering discounts to tempt customers to sign up for store cards. However, it failed to cap the interest rate charged on […]

November 22, 2011 More
Government looks into bank accounts for bankrupts

Government looks into bank accounts for bankrupts

Although people who have been made bankrupt are legally allowed to hold a bank account, in practice most banks refuse to allow an undischarged bankrupt to open one. This reluctance is because of the risk that a trustee could pursue the bank for loss of money following a bankruptcy. However, the lack of a back […]

November 21, 2011 More
Families owe half of annual income

Families owe half of annual income

Insurance company Aviva has revealed that over half of UK families have unsecured debts amounting to half their annual income. With food, transport and energy costs soaring, fifty-two per cent of UK families owe £10,604 on average, on loans, credit cards, overdrafts and other unsecured debts. This represents nearly half the annual household income of […]

November 17, 2011 More
Campaigns launched as energy debts soar

Campaigns launched as energy debts soar

With an increasing number of people in debt to their electricity and gas providers, Consumer Focus and Citizens Advice have launched a ‘Plug the Debt’ campaign. A total of 1.5 million people are believed to be in debt in the UK and figures for spring this year show a 25 per cent increase in the […]

November 16, 2011 More