Friday, 19 August 2011

Pensioners Struggle to Survive & Face Bankruptcy!

A report released today explains that pensioners are £280 worse off over the fully year compared to last year. Rising cost of living, low interest rates and Government cuts mean pensioners are facing a tough time financially. Experts warn the situation is likely to get worse.

The average pensioner has savings of just under £20,000 however as interest rates remain low their assets are not producing what they would have expected to help them in their twilight years.

As the cost of living increases and Government subsidies become tighter, the elderly are having to rely more on their savings. This has a detrimental impact on the quality of their living.

The number of pensioners going bankrupt has increase three fold over the past 10 years - this means they can expect a life living on state benefits and could potentially lose their property.

The severity of the problem continues to grow, lets hope the Government step in soon to support those most in need of financial support.

A spokesman for UK Debt Helper said;
Pensioners deserve our support and care and reducing the benefits they receive in heating allowance shows a grave problem with our country. Austerity measures are required to resolve the countries growing debt problem but surely it hasn't come to this, and if it has, why?

50% of Individuals Worry about Debts

More than 50% of individuals are concerned about their debts according to leading trade body R3.

The latest results, from the insolvency trade body R3’s Personal Debt Snapshots, reveal a 7 per cent rise in debt concern compared to the same time a year ago, according to the quarterly tracker.

Frances Coulson, R3 President said: “Households that are already struggling may find traditional lenders unwilling to provide further credit and are therefore drawn to short-term credit solutions. Individuals turning to short-term loans and credit cards should be wary of the high interest rates that often accompany these products. Overall debt can quickly snowball out of control.”
Credit card debt worries have increased by 5 per cent on the last quarter, whilst payday and short term loan worries have risen by 2 per cent, hire purchase concerns by 3 per cent and store card worries by 1 per cent.
Despite this, fears over secured lending have fallen. Mortgage repayment concerns are down by 4 per cent and bank loan doubts have decreased by 2 per cent. 

Frances Coulson commented on the trend: “Concern about secured lending is also likely to have fallen due to the Bank of England continuing to keep interest rates at an historic low. Households have begun to feel comfortable that their mortgage repayments will remain as they are for the foreseeable future.”

13 million individuals are saving less than they used to and one in five consumers are putting off big financial decisions.

 “Early 2011 was a tough period as individuals struggle to keep control of their finances and felt uncertain about the future. It is encouraging to see people have started to bolster their savings and pay off their debts. But we must remember that financial distress is still higher than it was a year ago.
“Delays in taking big financial decisions are up considerably on last year, indicating that the public is still hesitant about what the coming months have in store,” Frances Coulson said.

“With around six million people employed in the public sector in the UK, significant redundancies could result in increased insolvency levels. More people have started saving and paying off their debts, so these reserves should serve them well if they do face a period of unemployment. Those struggling with debt should seek financial advice rather than dealing with the distress on their own,” she added.

Family and friends help with Debts?

In times of trouble many people rely on their friends and family for support. We'll ask our family and friends for a variety of support but people often state they can't talk to them about their financial problems.

Friends and family lend a supportive ear when times get tough and whilst some may be judgemental at first, they will undoubtedly help you find an appropriate charity to help.

Our Research

We've asked 157 people who were in debt and less than 16% told their friends and family about their financial problems. This can result in people feeling alone, becoming depressed and suffering from mental problems.

Why you should speak to your friends and family about your debt problems?
  1. "A problem shared is a problem halved"
  2. Your friend / family may have been in the same situation themselves
  3. Your friend / family can provide emotional support
  4. Your friend / family can support you to find a debt charity to help you
  5. Your friend / famly could offer short term support, either financially or by communicating with your creditors?
Have you told your friends and family about a debt problem? Please share your experience with us.

Avoid Mobile Roaming Charges

Mobile Phone Debts

The mobile phone was once considered a revolutionary product, only for the rich and people within the business world. Today, it's a communication tool to stay in contact with other people but importantly we all have them! The problem with the mobile phone is it can get us all into debt.

The mobile phone typically charges us 12p for a text message however when we phone other mobiles the cost can be up to 40p per minute - an hour call would cost £24! The home phone / landline cost would be far less expensive. The cost of using a mobile phone can soon sky rocket if you're not careful.

Also, watch out for roaming charges - these have been know to run into the thousands of pounds of debt. Roaming charges are when your phone cannot connect to the internet from your usual provider. The back up roaming company will charge you roguhly £3 per megabyte you download but check the small print on this. Every web page you look at will automatically download images and content which will then charge you! Usually people try and use their internet on their phone overseas and this is how charges are incurred.

"A good tip is to check if there is available WiFi nearby as this won't incur roaming charges"

You can avoid roaming charges by checking your setting and switching the roaming off.

New EU Regulations

The European Union has started to implement new regulations which will take effect from 2012 which will limit the roam charges you could face. A company will not be able to charge you more than 81p per megabyte from 2012. By 2014 that should have been reduced to around 40p. It would found in a recent survey that the average phone bill for people returning from holiday was £149.

Tips to avoid high mobile phone debts
  1. Only use your mobile when you are out of the house - if you have the house phone then use that instead (unless you are on a contract phone and have free minutes).
  2. Monitor your free minutes carefully! Most people get into debt because they haven't checked how many available minutes they have and they've exceeded the level.
  3. Turn off data roaming (it'll be in your hand book)
  4. Budget for your phone and stick to it
  5. WiFi is usually free - look for the WiFi sign!

Thursday, 18 August 2011

Debt Management Plan UK Questions and Answers

Debt Management Plans: Questions And Answers

A debt management is an informal debt solution which should be considered carefully before entering the solution. It will have a negative impact on a persons credit file. The solution can enable you to repay your debt over a longer period of time that originally agreed. You may also be able to freeze interest and charges too!

Here are some commonly asked questions about debt management plans.

Q. Can legal action be taken against me if my creditors are receiving monthly payments?

Ans. Yes, because it is an informal arrangement both you and your creditors can cancel the agreement at any time

Q. How will a Debt Management Plan change my credit file?

Ans. Because your creditors will place a default on your credit file which will last for 6 years. It's not guaranteed they will do this but more than likely. This is because you are not repaying them what was originally agreed. Credit reference agencies (Experian, Equifax and Call Credit) will record this default.

Q. Is a Debt Management Plan a loan?

Ans. No, you do not borrow more money in a debt management plan - you use the available disposable income to offer pro-rata payments towards each creditor.

Q. How long does a Debt Management Plan last?

Ans. There is no set time for a Debt Management Plan to last. You must repay all of the debt you owe. If your debt management plan will last longer than 10 years then another debt solution may be more suitable.

Q. Will interest and charges be frozen?

Ans. There is no guarantee interest and charges will be frozen but a debt management company will ask for this.

Q. Will they take my house in a Debt Management Plan?

Ans. No, they will not ask you to offer your house in a Debt Management Plan. You must keep up secured loan repayment though to ensure you maintain your mortgage and retain the property.

Q. I have a CCJ, can I enter a Debt Management Plan?

Ans. Yes, there are no problems entering a Debt Management Plan with a CCJ

Q. Can secured loan debts be included?

Ans. No, you must always maintain your secured loan payments. If you are in arrears with your mortgage this cannot be included.

Q. How much do companies charge to set up a Debt Management Plan?

Ans. For profit Debt Management Companies charge the first 2-3 months payments (meaning your account will go into further arrears) and then a monthly management payment of between 12% and 50% of your payments.

A charity will not charge you a set up or monthly management fee. A debt management charity will receive 10% of whatever they collect and return to the creditors out of the end pot of money.

Q. How can you tell if your creditors are being paid?

Ans. A Debt Management company should send you quarterly statements to update you on the progress being made and the money which has been repaid.

Q. Is there a minimum amount I need to pay into a Debt Management Plan?

Ans. The more you repay each month the quicker you will be debt free. The minimum amount a Debt Management company can accept is £100 per month. If you cannot afford this amount then another debt solution may be more suitable.

Q. How will the payments be made?

Ans. You will pay one company (the Debt Management company) your monthly payment and they will distribute this amongst your creditors.

Q. My creditors are still contacting me even though i'm in a Debt Management Plan, what can I do?

Ans. You should speak to your Debt Management company and ask then to act on your behalf and deal with any problems.

Q. What are the benefits of a Debt Management Plan?

Ans. Potentially you can benefit from
  • One monthly fee to one company
  • Reduced interest and charges
  • You don't have to liaise with creditors
  • You will pay back all of your debt
Q. What are the disadvantages of a Debt Management Plan?

Ans. The disadvantages are
  • It's informal so the plan can start and stop at any minute if the creditors change their mind
  • Your Debt Management plan could last for a long time
  • There is no guarantee interest and charges will be frozen
  • It will have a negative impact on your credit file
Q. Who can enter a Debt Management Plan?

Ans. Anyone can enter a Debt Management Plan as long as they have a disposable income and unsecured debt.

Q. How much debt should I have to enter a Debt Management Plan?

Ans. You should not enter a Debt Management Plan if you have less than £5,000 worth of debt.

Q. How many creditors do I need?

Ans. At least 2 or 3 (depends on the company). A Debt Management company will not negotiate with one company for you.

Q. Can Debt Management monthly payments change?

Ans. Yes, the Debt Management company will conduct a 6- monthly review of your income and expenditure. If you have more money which you can repay towards your creditors then you will be asked to make this. If your income drops then your Debt Management plan can continue (as long as you can afford at least £100 per month) with a lower amount.

Q. Are my creditors going to accept my proposal?

Ans. There is never any guarantee your creditors will accept your proposal.

Q. If a creditor refused my proposal what would happen?

Ans. If a creditor refused your debt proposal then the Debt Management plan could continue although you would have to negotiate yourself with the other creditor.

Q. Why would a creditor accept a Debt Management Plan proposal?

Ans. A creditor is likely to accept a Debt Management Plan because it's an agreement for them to get back all of the money they lent you. This means that despite it taking longer than agreed, the creditor will not be out of pocket.

Q. Can I take out more debt?

Ans. Technically you can take out more credit. Most Debt Management companies will remove you from the Debt Management plan if they understand you to be using further credit to supplement your lifestyle.

Q. Can you get a joint Debt Management plan?

Ans. Yes, you can have partners (two people) entering a Debt Management Plan together.

Q. Can you change Debt Management company if you are already in a Debt Management Plan?

Ans. Yes. It's an informal arrangement so you can change your Debt Management company at any time.

Q. Who tells the creditors about the Debt Management Plan?

Ans. The Debt Management company should tell the creditors about the Debt Management Plan.

Q. Who will know about my Debt Management Plan?

Ans. The only people who know about a Debt Management Plan are you, the Debt Management company, your creditors and anybody else you tell. The Debt Management Plan is not registered publicly.

Q. Do I have to tell my wife / husband / partner about my Debt Management Plan?

Ans. No, not if you don't want to.

Q. How much will each of my creditors receive each month?

Ans. Payments made to your creditors are made on a pro-rata basis. This means the creditor owed most will receive the largest amount each month. For instance, if you can afford £150 per month then this will be split accordingly.

                     Total debt    Percentage of debt      Monthly repayment   

Bank              £4,000               66%                         £99

Store card     £1,000                17%                        £25.5

Credit card    £1,000                17%                        £25.5

10 Debt Myths!

There are hundreds of myths about the debt industry - everyone has a mate, family member, work colleague that has a story about debt problems. We've taken some of the worst debt myths in this post... enjoy! Please contribute your own too!

Debt Myth 1 - You can't tell anyone

Often people think they can't tell anyone about their debt problem or it'll result in receiving additional threats and worry more people. Millions of people each year turn to debt advice charities and receive debt advice. There are a number of different debt solutions available including Bankruptcy, IVA, Trust Deed, or Debt Management Plan. 

You are not alone - speak to a debt charity or tell a friend or family member. A problem shared is a problem halved.

Debt Myth 2 - Debt advice companies are all the same

Some debt companies will act within your best interests but most want to make money from your misery. Research and check out your debt company. We advise speaking to a debt charity who can give you informal debt advice
Debt Myth 3 -"Write off your debt"

In some debt solutions you can write off your debt but this will have a negative impact on your credit rating and make obtaining credit again in the future difficult. Rarely can you write off as much as the adverts say - it's typically 50% debt being written off in an IVA or Trust Deed.

Debt Myth 4 - I'll never have a bank account again

Lots of banks are now creating bank accounts for people who have a bad credit history. If you are entering a debt solution ensure you change banks if one of your creditors is the bank you currently bank with. 

Remember, ask for an account without an overdraft!

Debt Myth 5 - Paying fees for Debt Management

You DO NOT HAVE TO PAY FEES FOR A DEBT MANAGEMENT COMPANY! We've bolded it because it's one of the most mis-understood myths about the debt industry. There are fee debt management plans where you don't have to pay for the solution. Instead the creditors pay the debt management company fee so you don't have to. Speak to any debt charity - they'll steer you right!

Debt Myth 6 - Bankruptcy will take my home

Most people are scared their debt will mean they will lose their home. In Bankruptcy (and an IVA) the official receiver / insolvency practitioner is only interested in any equity you have in your assets. This means if your house has no equity or you live in rented accomodation you will not have to leave your house. 

If you earn an income where there is disposable money available to pay towards the Bankruptcy then an Income Payment Order may be in place for a total of 3 years.

Debt Myth 7 -Friends / Family can't buy my assets

Friends and family can purchase your assets as long as they are paying a fair price. It's always best to speak to a licenced insolvency practitioner about this before proceeding (especially in an IVA / Bankruptcy).

Essentially, the official receiver / insolvency practitioner wants the equity that's due so it can come from any party.

Debt Myth 8 -You can go to jail for not paying your debt

This is factually incorrect, you cannot go to jail for not paying your debt. You should repay your debt if you can but if you can't then you won't go to jail.

If a judge orders you to make repayments and you refuse then the judge can place you in jail as punishment however this would be for failing to follow a judges orders.

Debt Myth 9 - Your credit file will be damaged forever

If you enter an insolvency solution your credit file will be damaged with a default being added. This default will last for 6 years, after which period you will be able to gain credit and start to improve your credit rating again.

Debt Myth 10 - Bailiff's / Messenger at arms will enter my house

A bailiff (or in Scotland messenger at arms) are only allowed to enter your property if you invite them in.You should communicate with a bailiff / messenger at arms to come to an agreement regarding your debts, this avoids the problem spiralling out of control.

Man Found Guilty of Fraud

A man was found guilty yesterday of fraud and theft after he stole from his landlord. Michael Wilds stole from Paul Hardiment by using his Barclays bank card and spending more than £10,000.

After an intense investigation it transpires Barclays bank had been sending Mr Hardiment's card to the property he let to Mr Wilds, who in turn committed serious fraud. Over £10,000 had been spend by Michael Wilds before Paul Hardiment became aware his tenant was stealing from him. Barclays sent their statement to Paul at which point he queried the balance.

Mr Wilds from York used the credit card to finance his expensive lifestyle and pay off gas debts. Michael Wilds solicitor, Nicholas Barker, said: “This did not fund any high living”, however, the prosecutor stressed he drove a jaguar and spent the money on new tyres for his girlfriends Audi TT.

Wild pleaded guilty to fraud and theft and received a sentence of up to four months imprisonment, suspended for two years, and ordered to carry out 150 hours unpaid work.

Student debt: We Need An Education

Students across the UK are facing a massive uphill struggle with their debts begining to spiral out of control due to student fees. An independent body has stated they believe Universities will have to lower their fees or risk alienating students.

Students in debt

Typically students leave University owing on average £35,000 in England, Wales and Northern Ireland. This is a combination of tuition fees, student loans and personal debt.

Student loan debt has one of the lowest interest repayments available but the interest can, and will, continue to grow

Changing the mindset

The students of today and the experts of tomorrow. It's fair they should pay for their education however Government ministers seem to forget they are doing so to help pay increased taxes and contribute to the economy.

The supply and demand issue surrounding Universities has pushed up the prices and meant the UK Government can take a backseat role in the future of students. By removing courses such as 'Seminar on Lady Gaga', as entertaining & educational as I'm sure it is, we can reduce the number of people at University.

The Government need to take a more active role in the future of students to reduce their level of debt. Let's start by giving everyone the chance to go to University - but only if it's necessary!

Wednesday, 17 August 2011

What is a Payday Loan?

What is a Payday Loan?

A Payday loan is short term lending with high interest rate (up to 5,000% APR). This type of lending has become popular for people who can't make it to the end of the month with their wages and as such need additional finances.

An example of a Payday loan is, John goes to his local Payday loan company and asks to borrow £200 for 1 week. John will then at the end of the week repay £250 back to his Payday loan company.

What are the benefits of a Payday Loan
  • It can provide a short term release during a tough financial period
  • All you need is a UK bank account and a regular income to get a Payday loan
  • Usually there are no credit checks
  • The money is available quickly and can often be in your account within 24 hours.
What are the disadvantages of a Payday Loan?
  • If you miss your payment the interest and charges can be huge
  • The Payday loan company will pressure you to get their money back.
  • If you are self employed the checks will be larger and more in-depth than for anybody else
  • Like all loans and debt, if you fail to repay the money a Payday loan company can get a charge for payment order and then take money directly from your wages
Debt Help

If you have a debt problem contact a debt advice charity for help. If you have a financial problem at the end of the month then we advise you to look at a budget plan which can help you manage your finances better and avoid the need to use a Payday Loan company.

Free Debt Advice Tips

Budget Today!

It may seem like the most simple thing to do but setting a budget and sticking to it can be the best thing for maintaining your finances.

Spending your money as you go can mean at the end of the month you are short on cash. This is how people end up taking Payday loans and getting into more debt problems. By setting your budget you allow yourself a certain amount of money each day / week and this will help your survive until the end of the month.

You must ensure you meet your essential bills like rent/ mortgage, food, council tax, gas / electricity etc before repaying the rest of your debts. A budget can help you realise how much money you have available to pay towards debts each month.

Keep a record of your budgets so you can review this every 6 months.

"Look after the pennies"

When finances get tight and times get tough you need to look after the pennies, which could mean cutting back on luxury items.

Some luxury items can include gym membership (exercise at home / at the park), Sky TV, shop at ASDA not Marks and Spencers etc.

Change how you see credit

Credit card companies want you to miss payments and receive charges and interest so they can make profits. If you can't afford to repay it, don't use it. If you have debt problems and you need to use credit to survive then a debt solution would be required.

If credit cards are used carefully then you can benefit from free offers, improve your credit rating or use your credit card for the insurance for large purchases.

Tell someone

One of the reasons people struggle with debt is because they don't share the burden they feel. As such this can be detrimental to their health. Share your problems with friends / family or work colleagues - they can support you during a difficult time.

Inform your creditors

Tell your creditors about the tough time you're experiencing. It's important to keep your creditors informed of the debt problems you have, otherwise they may think you are refusing to communicate leading them to take severe action. Sometimes your creditors can work with you and help set up a payment plan.

Get debt advice

Speak to a registered charity for debt advice. There are a number of charities who can help you if you need their support - get in touch and they can give you qualified debt advice.

Wednesday, 10 August 2011

Tips for People in Debt

There are 5 top tips we have for people in debt trying to become debt free, which are;
  1. Face your debt head-on
  2. Ask for help from a debt charity
  3. Write an income and expenditure - be honest!
  4. Don't make any hasty decision and speak to lots of people 
  5. When you take your head out the sand, move forward and continue
A story from another blog which we think could be useful for people in debt is below. It's quiet an inspirational story.

This story is taken from a blog called 

When I first started paying off my debt, I was looking at a balance of more than $20,000 and thinking, why didn’t I do this earlier?

I thought that for two reasons.  First, it turned out that doing something about my debt was so much easier than just stressing about it.  I cannot say how miserable it was to feel crushed by the weight of not just all the money I owed, but the guilt over having put myself in that position.  Second, if I had started earlier, then I would be further along, of course!

I took the only option available to me and started at the beginning.

I never despaired, but it was not easy. I sometimes experienced the never-tweeted-about, never-blogged-about “ZOMG. I work more than anyone. I never get a break. My life is so hard. No one understands” thoughts, but I always had enough perspective to remember I was doing this for myself.  I was giving up my free time to make my own life better.  Selfish, really, but the good kind of selfish, because how much can you help anyone out when you’re limited by debt?

What I’m saying is that it’s worth it.  Worth it to do whatever you have to do to get your own life in order. And worth it to sacrifice a little so that you can live better later.  Not when you retire, but sooner than you might expect.

But, as cool as it is to be out of credit card debt, the year I spent working toward it was pretty amazing too.  I gave up stuff, and stuff is great, but it’s probably the easiest thing to give up. This year, I was just as happy and had just as much fun as years previous.  I kept working toward my academic and career goals.  I wrote a lot.  I met amazing people.  I made plans, imaginary and real.  I remained sane.  And all with the extra bonus of feeling good about what I was accomplishing in paying off my debt.

If I gave up too much, then I would regret it now, but instead I thank everything that I was smart enough to just get started already.

Free Debt Management Plans Only!

We can't stress this enough and UK Debt Helper will be giving you honest information about Debt Management Plans. For profit debt management companies charge thousands of pounds in fee's directly out of their vulnerable clients.

If you think a debt management plan is the best advice for you then always speak to a not for profit charity. All for profit companies are only in it for themselves looking to make money. They may have excellent customer service but actually the truth is your debt management plan will last longer with a for profit company.


Charities get paid for administering your debt management plan but they get their money from the creditors at the end. So you would repay 100% of the money you borrowed (potentially including interest and charges) and they you will be debt free.

To become debt free with a for profit company you need to pay back all of your debt plus their fee. The average fee for a debt management company is the first 2-3 months payments as setup costs then between 15%-40% of your month contributions. This means your debt problem lasts extra long for no apparent reason.

UK Debt Helper believes all for profit debt management companies are not competitive in the current market and as a result some are using sneaky, deceitful tactics to trap customers.


Man in Debt Goes to Extreme Measures: Alternative Debt Advice

Ross Humphries, a man with severe debt problems is facing a three year jail term for agreeing to be a courier of 45 Kilograms of cannabis resin which was worth around £280,000. Mr Humphries received a fee of £250 for his services.

The class B drug was found in Mr Humphries car when he was stopped by police on the M1 in May 2011.

Mr Humphries was a man described as a 'hard-working family man who fell on hard times and got into debt'.

What to do in debt?

It's understandable people in debt may feel stressed and panicked about their debt problems however committing crimes to survive is not a sustainable way solution to debt.

There are numerous debt solutions which people can utilise to resolve their debt problem. These solutions include general money advice, debt management plan, refinance, full and final settlement, IVA, Trust Deed or potentially Bankruptcy.

UK Personal Debt Solutions

The latest UK personal debt figures reveal that the average household debt is £55,803 - including mortgages. The results, compiled by Credit Action, show that total UK personal debt at the end of June 2011 came to £1,451 billion.

The monthly data reveals a significant amount of debt across the UK, with individuals currently owing almost the country’s entire output between Q2 2010 and Q1 2011.

Every day an average of 331 people are declared bankrupt or insolvent, according to the report. In addition, the Citizens Advice Bureau deals with 9,072 new problems daily, whilst every 4.36 minutes a new consumer is declared bankrupt or insolvent.

The insolvency solutions exclude informal debt solutions such as a debt management plan, so the debt situation is far worse than previously expected. Personal debt problems can range from general money advice through to Bankruptcy advice. 

The Office for Budget Responsibility (OBR) has predicted that household debt will reach £2,126 billion by the end of 2015, increasing the average debt per household to £81,769, Credit Action reveals.

Furthermore, the UK population is projected to grow by 1,205 people a day over the next decade which is likely to further impact the debt industry. Average consumer borrowing via overdrafts, credit cards, motor and retail finance deals and unsecured personal loans has increased to £4,268 per UK adult at the end of June 2011.

Thursday, 4 August 2011

Gold - Best Investment for next few years

Who in times of a recession has a spare $1,000 (or whatever the conversion in pounds is) but with the price of gold at an all time high and only getting higher as the economy gets worse then gold is the best investment at this moment in time.

From the chart above which was original taken from Bloomberg, we can see that as U.S debt increases the price of gold also increases. The question is, when will the U.S debt limit come down, but considering they just increased it and there is no solid plans for the next 10 years as far as how they will solve the debt crisis many people are predicting that gold will continue to rise for a few years to come. It is important if you do decide to invest in gold that you continue to watch and listen for plans being created to fixing the debt in America long term. When you feel it is getting resolved then it may be time to sell because a weak dollar equals strong gold but the opposite is also true.

Interest Rates Will Remain Unchanged Says Economists

According to economists questioned by the BBC, interest rates will remain 0.5% until at least the end of the year.

The BBC asked 32 experts whither or not they felt that the Bank of England would increase the interest rate from it's record low of 0.5% and 26 said they felt interest rates would not change.

Over 50% did say they expected rates to rise by the end of 2012 and to reach 1.5%.

The BBC results have been released just prior to an announcement on the interest rates which are expected around 12pm BST today.

Wednesday, 3 August 2011

Debt Management Plan

UK residents have a strange connection with debts because whilst they can't do with a large amount of debt they also struggle with not having the ability to do the things that available credit offers. The British are likely to rank high as being the most impulsive when it comes to shopping. When times were good and we were enjoying the booming economy, people went on spending and spending. 
Many people will spend until such time that the credit cards are used up and there is no other option but to begin the arduous task of dealing with their debt. One option to helping people dealing with debt is a debt management plan. Debt management is a debt solution were by a company will speak to your creditors on your behalf to stop any interest and charges and agrees an affordable amount to be paid each month/week.
The first priority of debt management is to help borrowers pay their debts. In some instances some companies will advise people that they can pay a certain amount of money and then ask creditors to write off a the remained. This practice is called "debt consolidation" however no one except the creditors can guarantee a fee will be offered or accepted. If you are offered this option from anyone other than your creditor then please be wary how an external company can offer this solution.

Tuesday, 2 August 2011

Credit Action Debt Statistics

New debt statistics have been released by and the new stats are as follows;
  • Total UK personal debt at the end of June 2011 stood at £1,451bn. The twelve-month growth rate remained unchanged at 0.8%. Individuals currently owe nearly as much as the entire country produced between Q2 2010 to Q1 2011.
  • Total lending in June 2011 rose by £0.4bn; secured lending decreased by £0.1bn in the month; consumer credit lending increased by £0.4bn (total lending in Jan 2008 grew by £8.4bn).
  • Total secured lending on dwellings at the end of June 2011 stood at £1,241bn. The twelve-month growth rate remained unchanged at 0.7%.
  • Total consumer credit lending to individuals at the end of June 2011 was£210bnThe annual growth rate of consumer credit increased 0.3 percentage points to 1.8%.
  • UK banks and building societies wrote off £9.5bn of loans to individuals in the 4 quarters to end Q1 2011. In Q1 2011 they wrote off £1.89bn (£866m of that was credit card debt). This amounts to a write-off of £20.71m a day.
  • Average household debt in the UK is ~ £8,064 (excluding mortgages). This figure increases to £15,507 if the average is based on the number of households who actually have some form of unsecured loan.
  • Average household debt in the UK is ~ £55,803 (including mortgages)
  • If you add to this the March 2010 budget report figure for public sector net debt (PSND) expected in 2015-16 (excluding financial interventions) then this figure rises to £106,418 per household.
Today in the UK
  • 1,577 Consumer County Court Judgements (CCJs) were issued every day during Q1 2011 and the average judgement amount was £3,118.
  • Citizen Advice Bureaux dealt with 9,072 new debt problems every working day in England and Wales during the year ending March 2011.
  • The average cost of raising a child from birth to the age of 21 is £27.50 a day
  • 100 properties were repossessed every day during Q1 2011
  • 36 new people became unemployed for more than 12 months every day during the 12 months to end May 2011
  • 1,578 people reported they had become redundant every day during 3 months to end May 2011
  • £251,500,000 is the amount that the Government Public Sector Net Debt (PSDN), including financial interventions, will grow today (equivalent to £2,911 per second)
  • £144,660,000 is the interest the Government has to pay each day on the UKs net debt of £2276.0bn (which includes financial interventions). This is estimated to rise to £182m a day in 2015-16
  • 220 mortgage possession claims will be issued and 160 mortgage possession orders will be made today
  • 382 landlord possession claims will be issued and 265 landlord possession orders will be made today
  • The UK population is projected to grow by 1,205 people a day over the next decade
  • 24.1m plastic card purchase transactions will be made today with a total value of £1.182bn.
  • 7.3m cash withdrawals will be made today with a total value of £478m
  • The average car will cost £16.08 to run today
  • It costs £67.80 on average to fill a car with a 50 litre tank with unleaded petrol.