Recently released figures have shown that in the final three months of last the number of properties in the UK falling into repossession fell significantly, as did the levels of mortgage arrears in the UK. (more…)
Archive for the ‘Debt News’ Category
13 percent drop in UK repossessions
Saturday, March 6th, 2010
Increased protection could be put into place for homeowners in debt
Thursday, February 25th, 2010It has been revealed that action being taken by the Ministry of Justice could result in a greater degree of protection for homeowners that could otherwise be at risk of losing their homes because of their inability to make repayments on personal debts such as credit cards. (more…)
Size of debt could be decreased with a balance transfer credit card
Wednesday, January 27th, 2010One financial industry group has recently suggested that consumers could really benefit by taking out a balance transfer credit card and transferring their higher interest credit card debts onto the card. (more…)
Minimum repayment encouraging credit card debt
Sunday, December 27th, 2009Many consumers are being lulled into a false sense of financial security by credit card lenders that are quite happy to accept very low repayments on the credit card balance, but failing to make clear to the consumer that this will lead to a lifetime of debt for many. (more…)
Did shoppers heed Church of England warning?
Monday, December 21st, 2009Many shoppers have been hitting the High Streets and virtual retailers in their droves over recent weeks, as they clamour to buy gifts for loved ones and make purchases ranging from food and drink to clothes and entertainment for the festive season. (more…)
Repossessions relating to credit card debt could increase
Friday, December 18th, 2009There are concerns that the number of repossessions in the UK that stem from credit card debt rather than secured debt may start to increase, which means that many people that may have kept on top of their mortgage repayments and other secured debts could still end up losing their home because of other debts that they have defaulted in even if the debt was not a secured one such as credit cards. This is due to proposals that are set to go into consultation over the coming weeks. (more…)
Borrowers trying to pay off more debt
Tuesday, December 8th, 2009Recent figures have shown that whist mortgage lending was up in October compared to September it appears that the residents of Great Britain are keeping focussed on paying off as much debt as possible. (more…)
More people could end up taking out IVA due to credit card debt
Wednesday, November 18th, 2009Officials from a national debt charity have recently stated that a rising number of people may end up turning to Individual Voluntary Arrangements (IVAs) in order to deal with the credit card debt that they accrue in the current difficult financial climate. (more…)
Bank took pensioner’s money to recoup daughter’s debt
Saturday, July 25th, 2009A major UK lender recently took a month’s pension money from an old age pensioner to use the money for repayment of her daughter’s debt. (more…)
New record for bankruptcy levels
Monday, June 15th, 2009It was revealed earlier this month that bankruptcy levels in England and Wales had reached the highest on record, with the financial crisis and the ongoing recession forcing more and more people into insolvency. (more…)
Debt amongst UK tenants soars
Saturday, June 13th, 2009According to a recent report the level of debt that the average UK housing tenant is now in has soared to its highest level since the 1980s. (more…)
DROs could speed up insolvencies
Sunday, May 3rd, 2009Some industry officials have expressed concern that the level of insolvencies in the UK could be increased and sped up as a result of a new scheme that has come into play recently. (more…)
£8 billion of mortgage debt paid off by UK homeowners
Monday, April 27th, 2009According to recently released figures homeowners in the UK have reduced their overall mortgage debt by an impressive £8 billion, even though the financial crisis continues and the country is plunged into recession. (more…)
Increase of two thirds in home repossessions
Friday, April 10th, 2009Figures from the Financial Services Authority have shown that over the course of 2008 the level of home repossessions increased by around two thirds, as an increasing number of homeowners struggled to keep up with their mortgage repayments in the difficult financial climate. (more…)
More and more people facing negative equity
Thursday, April 9th, 2009Following further house prices falls for the month of February, as reported by a number of major lenders and the Land Registry, it has been reported that a rising number of homeowners are now facing the daunting prospect of negative equity. (more…)
Over a million in negative equity
Sunday, March 8th, 2009Recently released figures have suggested that the fall in house prices has now resulted in over one million homeowners being plunged into negative equity. (more…)
Debt management enquiries to Payplan increase
Tuesday, March 3rd, 2009An official from the debt management service Payplan has states that the level of debt management enquiries in the middle of January this year soared, as an increasing number of worried consumers faced up to the fact that they may struggle with their finances over the course of this year. (more…)
Financial crisis prompts more people to take debt advice
Tuesday, November 4th, 2008The effects of the global financial crisis are being reflected in the rising number of people seeking advice about their debts, according to officials from the Citizens Advice Bureau. The CAB claims that over the past year the level of enquiries relating to debt problems has soared by one third, and over the past few months alone, with finances getting increasingly tight for many households, there has been a sharp spike in the number of debt related enquiries. (more…)
MP called consumers miserable
Tuesday, July 22nd, 2008A Labour MP was slated recently after calling people in the UK ‘bloody miserable’ adding that people these days were wealthier than ever. This is despite the fact that bills, food prices, and petrol costs have been soaring, credit conditions have become far tighter due to the global credit crunch, and many people are facing repossession because they cannot afford their mortgage repayments. Even though many households are struggling to make ends meet financially due to the current financial climate, Transport Minister, Tom Harris, described them as being miserable. (more…)
Some debts could be written off by debt management firms and charities
Wednesday, June 4th, 2008New government regulations that have been introduced could result in debt agencies and charities in the UK being able to write off a portion of clients’ debts even in the event that creditors are not happy about the matter. Many people that are struggling with their debts now turn to debt management agencies and charities, and are often put onto a debt management plan, where they pay a set amount each month to the agency, and this is then distributed amongst the creditors on a pro rata basis. (more…)
Debt worries result in many consolidations
Friday, May 23rd, 2008According to a recent report an increasing number of people have decided to consolidate as a result of financial woes and worries in an increasingly difficult financial environment. Figures have been taken over the last several years, and officials claim that over the past three years around 6.5 million borrowers have decided to consolidate their debts and move them all over to one provider in order to cut back on outgoings, ease financial management, and have fewer debts to juggle. (more…)
Debt advice companies and charities get new powers
Monday, May 19th, 2008Rising personal debt levels in the UK have resulted in many consumers seeking advice and debt management assistance from one of the number of debt advice companies and charities around, and many have entered into debt management plans through these firms. However, in the past they have experienced difficulties in terms of making arrangements with creditors, who are often unhappy about freezing interest, accepting lower repayments, or writing off a portion of the borrower’s debt. (more…)
Darling wants banks to help vulnerable families
Monday, May 12th, 2008Chancellor of the Exchequer, Alistair Darling, has recently announced that he wants banks to do what they can to help the more vulnerable families in the country, stating that banks need to help struggling homeowners in order to reduce the risk of rocketing repossession levels. Both Darling and the Housing Minister, Caroline Flint, have stated that banks need to give more time to families that fall behind with their repayments. (more…)
Debt relief orders could make bankruptcy too easy
Saturday, May 10th, 2008In April of next year the government are introducing Debt Relief Orders, and these orders are a way for low income borrowers with debts to declare themselves bankrupt online without having to go near a bankruptcy court or deal with the traditional hassles of filing for bankruptcy. However, there are concerns amongst some officials that DROs could make it too easy for consumers to escape their debts, and that the system is open to abuse. (more…)
Is debt consolidation the answer?
Wednesday, May 7th, 2008With an increasing number of households finding themselves under financial strain as a result of high living costs, tight credit conditions, and rising bills, it is little wonder that so many have decided to turn to consolidation in order to try and reduce their outgoings, reduce the number of debts that they have to deal with, and ease the financial strain that is has left many teetering on the financial brink. However, it is important for anyone that is considering this step to determine whether consolidation is the right answer. (more…)
CAB reports rise in enquiries relating to mortgage arrears and debt
Tuesday, April 8th, 2008A recent survey has revealed that the Citizen’s Advice Bureau has seen a rise in the number of enquiries relating to mortgage arrears and debt related issues over the first part of this year. Money issues have always been one of the most commonly dealt with problems by the CAB, but with credit conditions tighter than ever and households facing huge financial woes, there has been a marked increase in the number of money related matters, including worries about mortgage arrears, that the CAB has been dealing with. (more…)
Refinancing mortgage could prove costly to IVA consumers
Monday, March 31st, 2008Many struggling borrowers in the UK have entered into an IVA over recent years, with awareness about this process having been raised through a series of advertisements put out by IVA firms. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement that is known as a softer alternative to bankruptcy. This process is designed to help those with a high level of unsecured debt to benefit from more affordable monthly repayments and to get out of debt more quickly. (more…)
IVA homeowners could face problems
Tuesday, March 18th, 2008Over recent years Individual Voluntary Arrangements, or IVAs, have become increasingly popular with borrowers that have found themselves in unmanageable levels of debt. With an IVA, if agreed, the borrower pays a set amount each month, which is then distributed amongst all creditors on a pro rate basis, and the term of the agreement is usually five years. At the end if the five year period any remaining debt is written off leaving the borrower debt free. (more…)
Options That Can Help Clear Your Debts
Sunday, March 9th, 2008These days, with the level of consumer debt in the UK at record highs, many people find themselves suffering from debt problems, and once these problems start they can quickly spiral out of control. Often, it is people with a number of high interest debts such as credit cards, store cards, and high interest loans, that find themselves experiencing problems when it comes to repayments, and with interest rates still high coupled with food, energy, and petrol costs on the rise, the financial outlook for those in debt can be very bleak. (more…)
Will IVAs become more transparent?
Saturday, March 8th, 2008In the past many consumers had no idea what an IVA was, but awareness has been raised over the past couple of years following a series of glossy advertisements run by a number of debt management agencies. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between a borrower and his or her creditors with regards to the repayment of debts. The aim of an IVA is to get the borrower out of debt more quickly, increase short term affordability for the borrower, and enable creditors to recoup some of what is owed to them. (more…)
IVA homeowners face soaring interest rates
Saturday, March 1st, 2008Homeowners that have entered into an IVA, or Individual Voluntary Arrangement, could face soaring interest charges on their mortgage as the result of a clause in the agreement that requires them to use the equity in their home to put towards their debts. An IVA is known as a softer alternative to bankruptcy, and those entering into this sort of agreement pay a set amount per month for a period of five years after which the remainder of the debt is written off. (more…)
Wipe Out Debt Problems With A Low Rate Loan
Monday, February 25th, 2008When you have a number of high interest debts on which you are making repayments each month dealing with your accounts can become tiresome and frustrating. Having to deal with so many payments and creditors can even lead to missed or late repayments, which can add to your debt problems, affecting both your credit rating and your finances, as you may be hit with hefty fees and charges. You could even find yourself facing court action if you start to default on repayments, so your debts could quickly get out of hand.
It is possible in some cases to wipe out all of these higher interest debts and replace them with one lower rate loan, which offers a range of benefits. If you want to ease financial management and reduce the amount that you are paying out each month you could really benefit from debt consolidation. This is where you take out a larger loan to pay off all of your smaller debts on which you pay a lot of interest, such as credit cards and store cards. If you take the time to compare different consolidation loans from a number of lenders you should be able to find one with a competitive rate of interest, and this means that you can enjoy better value for money on your borrowing.
When you use a consolidation loan you can effectively wipe out debt problems, and make life far easier for yourself. Although you will actually still owe the same amount of money you will only have one debt and one creditor to deal with. This reduces the chances of missed and late repayments due to confusion with financial management, and can reduce the amount of money that you have to pay out on your debts each month, leaving you with more disposable income.
If you are a homeowner you can get a secured consolidation loan, and this could help to further reduce your debt problems. This is because you can spread your repayments over a longer period, which means that you can keep your outgoings down. You will also be able to borrow more money with a secured consolidation loan, although this will be based on your equity levels and other factors, and can therefore borrow an adequate amount to cover repayment of all of your existing debts.
In order to effectively wipe out your debt problems through debt consolidation you need to exercise willpower and determination, as you need to be careful that you do not run up your original debts again. If you go on to spend again on your credit and store cards after consolidating them you will find yourself in an even more difficult situation than you were originally with a higher level of debt to deal with. Providing you avoid running up further debts and simply make repayments on your consolidation loan each month you could find that this is one of the most effective debt management solutions for your needs.
Related Articles:
Bad Credit Loans – The Risks Involved
Sunday, March 4th, 2007Borrowing money is always associated with a number of common risks. These generally stem from people over borrowing, that is, borrowing more than they will be able to pay back later. (more…)
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