Posts Tagged ‘debt’

OAPs paying debts with cash from equity

Wednesday, July 7th, 2010

According to recently released figures many OAPs are paying off their debts through the use of cash from their equity. The data comes from Age UK, with officials from the company stating that more than one third of pensioners who have unlocked equity in their homes have used the money in order to pay off some of their debts.

The research was carried out for Age UK by the University of Birmingham. It found that around 35 percent of pensioners who had unlocked money from their homes through equity release had used the money to clear some or all of their other debts, and around 50 percent used the cash from their equity to pay for essential repairs. The research found that 36 percent of those releasing equity from their home had used the money for a holiday.

The research found that those that were releasing equity from their homes could be divided into three distinct groups. One group, which was the group that was financially better off, often used the money to make an early bequest or a large one off purchase. The second group tended to use the money to improve their standard of living. The final group, which the group that was worse off financially, used the money to repay their debts.

The data also found that two thirds of people that were aged over sixty five were people that had no mortgage with low or modest incomes. Many were also struggling when it came to maintaining their homes. Over the past couple of years, with the difficult financial climate and recession to deal with, many more OAPs have had to consider the option of equity release in order to manage financially. Many are also struggling on their current pensions.

Tags: finance, equity release, debt, pensioners, equity

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Consolidation loan could prove beneficial for many in debt

Tuesday, June 29th, 2010

Being heavily in debt is something that many people are having to cope with, and over the past couple of years, with the recession and the financial crisis taking their toll, many have found themselves getting deeper and deeper into debt. A lot of people that have accrued debt over the years have a range of different debts that they are paying off, such as credit cards, store cards, loans, and overdrafts.

Often these debts can carry very high rates of interest, and this means that consumers can end up paying a fortune for their borrowing over the term of the loans and cards. In addition to this, having a range of different debts to deal with can prove to be difficult and inconvenient because it means having to make repayments to a number of different creditors each month.

Many officials believe that some people that have a range of different debts could benefit from consolidating these debts into one convenient, lower interest loan, and this is something that they can do with a consolidation loan. A number of lenders offer consolidation loans, and depending on the credit rating of the applicant the rate of interest charges can be very reasonable compared to the rates charges on most credit and store cards.

Borrowers can benefit from consolidation in a number of ways. Consolidating a range of higher interest debts into one lower interest loan can really cut the amount of interest that the borrower pays overall, and it can also reduce monthly outgoings as the repayment on the consolidation loan may be lower than the combined repayments on the individual debts. In addition to this borrowers will not have to worry about making different repayments to different creditors, and will only have to deal with one lender.

Tags: debt consolidation, loan, debt, finance

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Consumers cautioned about debt as credit card availability increases

Saturday, June 26th, 2010

Consumers in the UK have been warned by a debt management and advice group about getting into debt as a result of the number of credit cards in the UK increasing. Figures have shown that there has been a sharp increase in the number of 0 percent purchase credit cards available, and there are concerns that this could lead to more people getting into debt.

Officials believe that the more relaxed lending criteria by lenders could also contribute to more people getting credit cards and then finding themselves in unmanageable levels of debt. This time last year there were only two credit cards that were offering 0 percent interest of more than ten months on purchases, but this has now increased to eleven such cards.

Whilst eleven may not sound like a huge number it does reflect an increase of around four hundred and fifty percent compared to last year, and with rules relating to lending becoming more relaxed there are concerns that more people could find themselves getting into credit card debt.

Officials believe that competition has returned to the credit card market, and once again lenders are vying for business from consumers, although not to the same level as they were several years ago before the financial meltdown. This could lead to more people applying for these cards, and eventually could lead to greater levels of debt of people are then unable to meet repayments.

However, whilst the debt company was concerned about debt levels officials from the firm also said that these 0 percent interest purchase credit cards could be useful if used properly.

The debt company stated: “If used properly, the 0% purchase deals for extended months is still a viable option for many consumers. However, it is important to stay within your limits and pay off the difference by the final month, otherwise you could be in for an unpleasant surprise in the form of increased interest rates.”

Tags: finance, Credit card, debt, credit

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Debt worries for private tenants

Friday, June 25th, 2010

Recent reports have suggested that debt worries may be increasing for private tenants in the UK, with reports of large increases in the number of private tenants seeking advice with regards to their debts. The data comes from the Consumer Credit Counselling Service, which claims that the level of enquiries regarding personal debt has increased.

The CCCS said that the number of debt related enquiries from those that are privately renting as well as those in social and council rented properties has been rising as a result of many of these renters being unable to keep on top of their repayments. The charity said that previously many enquiries had been from people that were homeowners and worried about losing their homes, but now this had switched to many of the enquiries being from those that were renting.

The CCCS is now concerned that there could be an increase in homelessness as a result of renters struggling with their finances. Those that fall behind on their rent as a result of their financial situations could quickly find themselves being evicted. The CCCS is urging renters to ensure that they always make payments on their rent before they worry about non-priority debts.

The charity also said that things could get worse for those that are on housing benefits, as the new coalition government has cut benefits including housing benefits, which could increase the difficulties that are facing many renters.

An official from the Consumer Credit Counselling Service said: “While we have always had more people in rented accommodation calling for help with their debts, they have usually been able to maintain their rent payments. This suggests that the personal finance situation for those in rented accommodation is deteriorating to the extent that they many end up homeless.”

Tags: credit, finance, debt, Consumer Credit Counselling Service

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Seeking advice on debt

Monday, June 21st, 2010

Over the past couple of years many households have experienced real financial difficulties stemming from the global financial crisis and the effects of the recession. Whilst the recession may be over and the economy is meant to be picking up there are still many people that are suffering financially, having got themselves into significant levels of debt over a short space of time.

During the recession and the credit crisis many people found themselves struggling to make ends meet financially, and this meant that many were forced to turn to solutions such as using their credit cards and overdrafts to meet day to day costs. This has left a huge number of households now struggling to make repayments on their debts, and with speculation over the base interest rate increasing this could be a very worrying situation for many.

It is vital for those that have debts that they are really struggling to repay to take action sooner rather than later, and the wrong thing to do – which sadly many people find themselves doing – is to bury your head in the sand and hope that the problem goes away. All too often this simply leads to the debt problems getting worse and worse, and getting to a point where the borrower ends up having legal action taken out against them.

In order to avoid this it is important to keep an eye on your finances and make cutbacks wherever possible so that you can ensure that your debt repayments are met. However, if you have gone through your finances with a fine tooth comb and cannot find any other areas where you can cut back it is important that you do not simply sit back and hope for the best. If you are struggling on a regular basis to make your debt payments it is advisable to seek advice as soon as possible.

There are two main courses of action that you can take to try and solve your debt problems. The first is to contact your creditors directly and see whether some arrangement can be made to ease the situation. Most creditors are aware of the problems that borrowers are facing, and may be able to reduce your payments by extending your repayment term. It may be a good idea to go in and see your lender in person, as you can then effectively explain your financial situation and get the problem resolved as quickly as possible.

Another option that is available is to seek advice from a debt advice agency, and there are a number of these available these days. These agencies will be able to look at your financial situation and outgoings and will be able to recommend an appropriate course of action, such as a debt management plan, and IVA, or simply suggesting ways of budgeting more effectively to ease the financial strain.

Tags: debt, finance, credit, Debt settlement

Posted in Debt News, Featured Articles | 1 Comment »

Credit Action figures show personal debt is on the rise

Thursday, June 3rd, 2010

Over recent years the level of personal debt that has been accrued by consumers in the UK has caused a great deal of concern, and for many individuals the debt problems have become increasingly worse as a result of the financial turbulence of the past couple of years. New figures that have been released have shown that personal debt levels in the UK have continued to increase.

The report has been released by the debt charity Credit Action, and the figures on the report have shown that personal debt levels have continued to increase. The twelve month growth to the end of April this year was 0.8 percent, and the total amount of personal debt came in at £1460 billion. In April of this year total lending is said to have increased by £0.4 billion.

In a breakdown of lending figures the Credit Action report showed that secured lending for the month had increased by £0.5 billion whereas consumer credit lending had fallen by £0.1 billion. The average level of debt per household in the UK is close to £9000, and this does not include their mortgage or secured debts. With mortgage debt included the level of debt per household comes in at close to £58,000.

Over the past couple of years many consumers have been in a catch 22 situation where they have been unable to get affordable finance due to restrictions put in place by lenders but at the same time have needed access to finance in order to fund their day to day lives in some cases due to problems caused by the financial crisis and job losses.

For many this resulted in them turning to their overdrafts, credit cards, and even doorstep lenders in order to get the money that they needed for essential purchases and bill payments.

Tags: debt, finance, Consumer debt, Personal finance

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Why save when you have debts?

Thursday, May 27th, 2010

These days many people are dealing with the burden of unsecured debt, with many having to make repayments on loans, credit cards, store cards, catalogues, and other types of unsecured finance. The past couple of years have been financially turbulent for most people, and many have ended up increasing their debt levels and having far more to cope with in terms of their financial commitments.

Whilst the base interest rate is at the rock bottom level of just 0.5 percent at present this is not always reflected in borrowing rates, and for many the interest rates being charged on loans, credit cards, and stores cards is extortionate given that the base rate it at such a low level. At the same time the interest paid on savings is minimal, which means that those putting their money into savings accounts are getting little to no return.

With this in mind it is worth considering whether there is any point in putting money into any form of savings account if you already have debt to pay off. The returns earned on savings will be far outweighed by the interest charged on debts in most cases, and this means that those that have debts would be better off putting any spare money towards repayments of their debts rather than putting it into a savings account where they will receive very little in the way of returns.

Recent reports have shown that many savvy consumers have realised that they could be losing out financially by putting spare money into savings rather than  using it to repay debts, and this has seen the number of people that are paying down their debts rather than saving money surge. For many getting rid of high interest debt has become a priority in the current climate, with many wanting to rid themselves of the burden of debt as quickly as possible.

Credit cards in particular have high rates of interest, with the gap between the base interest rate and the interest rate charged on cards becoming increasingly greater. Consumers who have a balance on a high interest credit card would therefore benefit from transferring the balance onto a 0% balance transfer card or using their savings to repay the debt. This way it is possible to avoid the huge interest costs that some providers charged on credit cards.

Tags: Personal finance, saving, finance, debt, Interest

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Will your lenders help if you are in financial trouble?

Saturday, May 22nd, 2010

There are many people that are in debt these days, and a huge number of them are struggling to keep on top of repayments to the point where they are having to cut back not only on luxuries but on day to day items such as food and household necessities.

The recession and the global credit crisis has resulted in an increase in the number of people that are facing difficulties with repaying their debts, and many borrowers do not know where to turn to get the financial assistance that they need.

There are actually a number of options available to those that have unmanageable debt levels, such as contacting a debt charity for advice or simply streamlining spending and outgoings. Another option is to contact the lenders to see whether the terms of the loans can be negotiated, and this is something that lenders have become increasingly used to over the past couple of years.

If you have debt that you are struggling to repay it is important to take action before you get to the point where you literally do not have the money to make the repayment and subsequently start falling into arrears. If you are already struggling and feel that things could get worse it is advisable to take action as quickly as possible.

In the current financial climate most lenders will be sympathetic with those that have always managed to maintain repayments in the past but have now started to struggle due to their financial circumstances. This is why it is well worth contacting the lenders and explaining your situation to see whether there is anything that they can do to help.

If you have a good credit rating lenders may be able to offer a consolidation loan, where all of your different debts will be rolled into one and you would pay over a set period of time based on the amount that you could comfortably afford to repay each month.

If this is not an option lenders may be able to review the terms of your loan and make changes, such as increasing the length of the loan period so that you repay over a longer period of time but you are paying less money each month. You can contact your lender in writing or by phone to discuss your financial problems, but it is always worth making an appointment to go in and explain your financial situation as this will get things moving far more quickly.

Tags: finance, debt, lenders, loan

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Debts could mean many having to work into retirement

Thursday, May 20th, 2010

According to recently released figures high debt levels could result in an increasing number of people having to work into their retirement in order to fund their lifestyle and deal with the financial commitments that they are still burdened with. Officials believe that this will lead to a sharp increase in the number of people that are only partly retired, as many may have to continue working part time.

Researchers have said that 20 percent of people aged fifty five and over said that due to their circumstances and financial positions they would have to continue working until they were seventy years of age, and in some cases even longer. This is the future that could be facing older people that still have mortgage and other debts but no proper pension provision or savings.

Officials have said that the retirement dreams of many people have been dashed as a result of the high levels of debt that they have coupled with their lack of savings and pensions. Their financial situations mean that many people will have to continue working part time when they should be looking forward to retiring and spending time with their loved ones.

Many of those polled said that once they reached their sixties they would move from full time work to part time work, but would not be able to retire completely because their financial situation would not allow for complete retirement. One pension consultant, Linda Whitney, said that savings for retirement had become a big problem. She described this as ‘one of the largest socio-economic problems’ facing the Government.

Whitney stated: ‘People need to wake up to the fact that they will have to save more, work longer or live on a lower pension in retirement.’

Tags: finance, debt, retirement, Pension

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Those in debt should consider IVA over bankruptcy

Thursday, May 13th, 2010

These days there are many people that are in debt over their heads, and for many of these people repaying the debt is pretty much impossible. In some cases consumers that are unable to meet their financial obligations do not really know the options that are available to them, and some launch straight into the bankruptcy procedure without looking at any alternatives.

However, one industry expert has recently claimed that those with a relatively high level of unsecured debt who cannot make repayments could do far better by considering an IVA, or Individual Voluntary Arrangement, as this could provide a number of benefits over other possible solutions such as bankruptcy or Debt Relief Orders.

The advice came from Pat Boyden, personal insolvency expert at PricewaterhouseCoopers, who said that one of the main reasons why an IVA could prove so beneficial compared to the other options was because this was a plan that provided far more structure for those in debt, enabling them to both improve their own finances over a period of time and return at least some of the money that they owe to creditors.

IVAs are known as a softer alternative to bankruptcy, and should not be entered into lightly or without thought. However, for those that really are struggling with a large amount of unsecured debt with a number of creditors these plans can provide structure and financial relief.

Boyden stated: “A massive 35,682 people entered into personal insolvency in the first three months of 2010, showing that the record number of personal insolvencies reached last year is showing no signs of slowing as the UK economy comes out of recession. The UK consumer continues to struggle with personal debt and will do for some time yet.”

Tags: bankruptcy, debt relief, Personal finance, debt, individual voluntary arrangement, finance

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Personal debt levels set to remain high

Wednesday, May 12th, 2010

Over the past few years many people that did not have any significant debt have found themselves lumbered with debts such as credit cards, store cards, and loans, having struggled to manage on their income during the last couple of years, which have been financially turbulent.

At the same time many people who were already in debt have found themselves even deeper in debt, having struggled to keep on top of their debt repayments and to keep on top of other financial commitments. This has left many households in a very difficult financial situation, and despite the fact that the recession is now officially over things are not set to improve any time soon.

In a recent report a financial industry expert, Chris Tapp from Credit Action, has stated that personal debt levels in the UK are set to remain high for the foreseeable future, as many people are still struggling with their finances and therefore do not have the resources to tackle their debts and make repayments on the money that they owe.

Although the credit crunch has resulted in a tightening of lending criteria amongst banks and other lenders, which means consumers are less likely to get finance and accrue debt, many are struggling to pay existing debts because of factors such as reduced working hours and job losses.

Mr Tapp also added that the increase that has been seen in unemployment levels could make debt problems worse, as consumers turn to sources of alternative funding such as credit cards and overdrafts in order to make ends meet.

Tapp stated: “I think we will still continue to see personal insolvencies very high for some time until employment begins to filter back into the system and more people can get back into jobs.”

Tags: debt, credit, repayment, finance

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Consumers more cautious about borrowing money

Monday, May 10th, 2010

A recent report has indicated that consumers in the UK have become increasingly cautious about borrowing money and getting into debt that they cannot afford to repay. However, despite this trend insolvency levels have continued to soar as a result of people finding themselves in unexpected situations.

The report claims that whilst fewer people are putting themselves at risk of taking on loans and debts that they cannot afford there are also many people that took on debt that they believed that they could afford only to find that something unexpected happened that affected their ability to make repayments.

The data was released by the debt charity Money Advice Trust. An official from the charity said that in many cases consumers had taken out loans and credit when they thought that they could afford to make repayments on them but then something like a death, job loss, or divorce had seriously impacted on their ability to repay the debt.

The charity also said that there had been a sharp rise in the number of people that were contacting advisors as a result of changing situations leaving them in a position where they were struggling to make repayments on their debts. The number of personal insolvencies is said to have increased by 0.9 percent in March compared to the previous month.

The Money Advice Trust said that it believed that consumers’ attitudes to taking out debt had changed, as they were more cautious about getting themselves into debt and having to struggle, particularly given the financial turbulence seen over the past couple of years.

The charity said: “We think the general attitude to debt has changed. People are now more cautious about borrowing and spending and think through the consequences of getting themselves in debt.”

Tags: Money Advice Trust, Debt settlement, finance, debt

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Campaign group wants political parties to focus on personal debt

Monday, April 26th, 2010

Over recent weeks the main political parties that are fighting to lead the country as the next government have been highlighting what they believe to be the highlights of their manifestos, and have been showing their potential voters what they can do to help both the nation and the residents and businesses that live within the UK.

Whilst a number of different areas have been highlighted and discussed by the political parties there are a number of things that many people were disappointed to see were not really mentioned in the manifesto, or were only briefly touched upon.

One campaign group has stated recently that all of the different political parties need to put more effort into focussing on debt levels amongst consumers in the UK. The group, ClearDebt, has stated that the number of people that are harbouring debts in the UK has risen, although the average amount owed per person has fallen.

The data showed that between October of 2009 and March of this year the number of people with personal debt worries had increased by 13 percent compared to the same period the previous year. However, the campaign group also believes that whilst the number of people in debt may be on the increase the level of awareness amongst consumers has increased and this has led to people seeking advice more quickly.

Officials from ClearDebt stated: “The number of people asking us for debt help has increased by 13% between the two periods (October 09 – March 10 in comparison to the same period in 2008/09). What we are seeing is more people than ever before seeking help but with lesser debts. For me, Britain’s personal debt issues are getting more worrying, not less.”

Tags: finance, debt, Consumer debt, ClearDebt

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More people could struggle as unemployment rate increases

Friday, April 23rd, 2010

The number of people struggling to repay their debts and mortgages could increase in the UK after it was revealed that the unemployment rate has increased to its highest level since 1994. The jobless rate has surged to its highest level since before Labour came into power, and the threat of further job losses is still high.

Over the past couple of years the financial crisis and recession has seen many people suffering financially, with many accruing high levels of debt and many others unable to cope with the debt that they already had. During the three months to February the unemployment rate increased by 43,000, and this could further impact on the abilities of tens of thousands of people to make debt repayments.

The data was released by the Office for National Statistics. The figure also showed that whilst the unemployment rate had increased the number of people claiming unemployment benefit fell dramatically in March, showing a higher than expected fall of 32,900.

Youth unemployment has been increasing according to the figures, and in the December to February period there were 929,000 people aged between sixteen and twenty four out of work. There was also an increase in economically inactive people, which are those that are out of work and not actively seeking work. Yvette Cooper, the Work and Pension Secretary, commented on the figures.

Cooper stated: “What this shows is that we are not out of the woods yet. That’s why it is so important that we keep increasing the support for the unemployed, but also that we sustain the overall support for the economy.”

The jobless figure has given the Tory party more fuel to verbally attack the Labour government, with the shadow Work and Pension Secretary stating that Labour policies were clearly not working.

Tags: debt, government, unemployment, figures

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Dealing with mortgage arrears

Thursday, April 22nd, 2010

Those of us that managed to buy our own homes may be counting our blessings for getting onto the property ladder before getting a mortgage became increasingly difficult, as it is now, but there are other problems that homeowners have to worry about, namely how to ensure that they keep on top of their mortgage repayments.

Whilst it’s all well and good to have your own home, your property could disappear in a puff of smoke it you fall behind with repayments and already many people have lost their homes over the past couple of years because they have been unable to keep on top of repayments on their mortgage.

Over the past year things have been very difficult for many homeowners in the UK, with many suffering as a result of the recession, which resulted in massive job losses. The added pressure of the credit crunch added to the financial problems that many homeowners were experiencing, and regrettably many were unable to keep up with their repayments.

With banks clamping down more seriously than ever on mortgage arrears many quickly found themselves losing their homes, which were swiftly repossessed by the banks who were desperate to shore up their own finances by selling them as quickly as they could.

Whilst the situation as eased off a little now, partly due to pressure from the government to use repossession only as a very last resort, there are still many people who may be finding it difficult to make their mortgage repayments and could end up losing their homes eventually unless steps are taken to rectify the problems.

Industry experts are warning those that do experience difficulties in making mortgage repayments not to bury their heads in the sand and hope that the problem will go away. Instead, homeowners that are in financial trouble need to get advice as quickly as possible in order to try and sort the problem out before it gets to the repossession stage.

One option for homeowners is to speak to their bank or lender about their situation, being honest about finances and making suggestions about how they might be able to sort things out. Most lenders will be sympathetic about homeowners’ situations as long as they are made aware of the problem.

For those that do not get any joy from their lender there are also a number of debt advice charities that can help, such as the Consumer Credit Counselling Service or the Citizen’s Advice Bureau.

Tags: repossession, Banking, advice, mortgage, finance

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Many people in the UK hiding debt problems

Thursday, April 22nd, 2010

A recent report has suggested that there are now many people in the UK who are hiding their debt problems, with many of them struggling to make ends meet financially and hiding their debt issues from their families and loved ones. It is thought that around one in three people could be hiding problems relating to their debt levels and struggling as a result of their debts.

According to the report the value of this so called hidden debt mountain could be an astonishing £55 billion, adding to the already huge level of personal debt that consumers in the UK have overall. The average personal debt in the UK is now said to be just under £10,000.

Industry officials are now concerned how people with hidden debt will cope in this turbulent financial climate. Whilst the recession is over many people are still struggling financially, and the threat of job losses is still very real. For those that do have huge secret debts there is nobody close to turn to if things get unmanageable and this could create further problems for these people.

Those that do have high levels of debt that they cannot manage are being advised to seek advice from a debt charity or group, where they may be able to learn about alternative options that are available to them or get advice on better managing their finances and their debts.

One borrower who has a massive £36,000 of personal debt said: “None of my family know about the debt that I am in. A couple of years ago things got really tough so I had to go into a debt management plan, and my family still don’t know about my debt. I will be paying on the plan for about twenty years before I clear my debts. That’s a long time to keep a secret.”

Tags: finance, secret, credit, debt

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Spending could lead to increase in IVAs

Saturday, April 17th, 2010

It was recently reported that over the past few weeks Brits have been whipping their credit cards back out and hitting the High Street and Internet shopping sites with a renewed confidence. Whilst the recession is not long over and the effects of the global financial crisis are still affecting the nation consumers seem determined to spend their way out of the financial gloom.

However, whilst this increased spending may prove to be good news for the retail sector, which has suffered massively over the past year, it could also lead to consumers burdening themselves with debts that they will struggle to make repayments on. Some consumers are already burdened with debt, and additional debt could tip them over the financial edge.

There are now concerns that increased spending by consumers in the UK could lead to more and more people finding that they can no longer cope with their debts or make repayments on the amount that they owe. Officials believe that this could lead to an increase in the number of people applying for an IVA, or an Individual Voluntary Arrangement, which is a softer form of bankruptcy.

An IVA can have a profound effect on the credit rating and the financial future of the borrower, and should only be used as a last resort by those that are experiencing financial difficulties. However, the more people borrow the more they are likely to be desperate to escape their debt, and for some this may seem like the easy way out, as many fail to recognise the long term repercussions.

Of course, this doesn’t mean that those that have genuine problems with their debts and who are seriously struggling to make repayments do not have some form of help at hand. In actual fact there are many alternatives that consumers could look at which would not have as profound an effect on their financial future as an IVA or bankruptcy.

One potential solution is to contact creditors directly in writing or person, explain the financial situation, and look at making a reasonable repayment offer over an extended term – most lenders will consider this especially in the current climate.

Another option is to go to a debt management agency, preferably a charity run or government run one that does not charge fees. You may then be able to get advice to help you to manage your finances more effectively or may be able to get onto a debt management plan.

Tags: debt, credit, finance, individual voluntary arrangement

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Divorce numbers plunge due to debts and finances

Saturday, April 17th, 2010

A recently released report claims that the number of divorces filed in the UK has been plummeting over the past couple of years. However, whilst this could indicate that couples are enjoying stronger relationships officials believe that the falling divorce rate is more about finances than about a loving relationship.

According to the report many couples that may wish to get divorced now have so much debt that they are forced to continue living with one another in order to be able to maintain repayments on their debts. The divorce rate has hit its lowest levels since the 1970s over the past couple of years, but this does not necessarily indicate happier marriages.

Whilst one of the major factors attributed to the drop in the divorce rate is couples being forced to live and remain together due to their debt levels there are also other financial factors that are thought to have played a part. Officials believe that due to the financial climate over recent years, fewer couples have been able to afford to get married in the first place, which means that there are fewer couples to get divorced.

In addition to this the recession and financial strains on couples means that some may not have had the financial means to get divorced, particularly in cases where there are children and assets involved and where the services of a solicitor may be required, as this can work out to be very costly. One official from Atlantic Financial Management said that without selling the house it could be difficult for couples to separate.

He said: “In addition to removing one or other party from the deeds on a property, the task of splitting responsibility for joint household debts can be very traumatic. Clearing credit card debts and other joint loans is generally not possible unless the property is being sold and the assets split.”

Tags: debt, Divorce, finances, Marriage

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Increased protection could be put into place for homeowners in debt

Thursday, February 25th, 2010

It 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…)

Tags: real estate, finance, mortgage, credit, debt

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Interest rates to be curbed on pay day loans

Friday, February 12th, 2010

Over recent years pay day loans have become increasingly popular amongst certain consumers such as those that are on low incomes and those with poor credit ratings. (more…)

Tags: Zopa, Better Banking Coalition, Interest, payday loan, credit, debt, finance, Loan shark

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Size of debt could be decreased with a balance transfer credit card

Wednesday, January 27th, 2010

One 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…)

Tags: balance transfer credit cards, debt

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Cost Of Personal Loans Increased By Banks

Monday, January 11th, 2010

Recent figures have shown that since the start of this year the cost of personal loans has been increased by banks, and this is despite the fact that the base interest rate has been at an all time low of just 0.5 percent for the past nine months. Since the start of this year the cost of a best buy loan for £5000 is said to have increased by around 1.54 percent to 10.78 percent according to reports. (more…)

Tags: cost of loans, bank of england, Banking, loan products, British Bankers Association, loan charges, Financial institutions, loan costs, loan fees

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Minimum repayment encouraging credit card debt

Sunday, December 27th, 2009

Many 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…)

Tags: Debt-snowball method, loan, debt, minimum repayments, credit card debt, credit, Credit counseling, Credit card

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Repossessions relating to credit card debt could increase

Friday, December 18th, 2009

There 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…)

Tags: credit card debt, unsecured debt, debt, loan, mortgage

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Property market more active than usual for this time of year

Thursday, December 10th, 2009

It has been reported that the property market in the UK is more active than usual for this time of year, with many people putting their Christmas shopping on hold to get on with the more important matter of getting a house. (more…)

Tags: debt, home buyers, Interest, Christmas, property market

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Borrowers trying to pay off more debt

Tuesday, December 8th, 2009

Recent 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…)

Tags: debt consolidation, loan, Howard Archer, Global Insight, Debt settlement, bank of england, credit

Posted in Debt News | 1 Comment »

Consumer felt duped by Yes Loans

Friday, November 27th, 2009

A borrower in the UK, Louise Cowan, has recently detailed in a report how she felt duped by Yes Loans after being given the impression that she was being accepted for a loan only to find that she had then been passed on to some debt management firm. (more…)

Tags: yes loans, loan application, Louise Cowan, debt, Money Worries, bank statement, loan fees

Posted in Loan News | 8 Comments »

More people could end up taking out IVA due to credit card debt

Wednesday, November 18th, 2009

Officials 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…)

Tags: debt, individual voluntary arrangement, iva

Posted in Debt News | 1 Comment »

New record for bankruptcy levels

Monday, June 15th, 2009

It 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…)

Tags: Debt Relief Orders, Insolvency Service, bankruptcy, debt

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