Abacus Daily Debt News

The Post Office has brought out an extended range of competitively priced mortgages, a move which could help debtors as the company will be offering one of the lowest fixed arrangement fees available on the market.

From today (October 19th), borrowers can benefit from taking out a Post Office mortgage with a fixed arrangement fee of £599. The revert fee is also the lowest to be found, at 2.49 per cent.

Head of lending with the Post Office Az Alibhai remarked that, as this latter charge is connected to the base rate, "customers on fixed rate deals won’t be in for any nasty surprises" and "can expect good long-term value".

The mortgages are also more accessible to borrowers - featuring in more than 250 branches of the business - and debtors can discuss any problems they are experiencing with members of the team.

Other competition to banks and building societies came last week in the form of supermarket lenders, which, according to Ed Bowsher of lovemoney.com, are experiencing a rise in popularity.

By Sarah Adie

Brits have been advised that they can save a lot of money by doing their shopping on the internet by a technology expert - words that could help people manage their debts more effectively.

Dan Oliver, the editor of .netmagazine - a publication for web designers and developers - affirmed there is "no doubt" that ecommerce is cheaper, particularly because consumers are able to compare prices quickly and therefore locate the best deals.

However, he advised those buying from unfamiliar companies to carry out some research prior to finalising purchases so as to avoid being caught out.

Mr Oliver further noted that offline retailers find it hard to compete with websites, which is why many of them have begun to implement pages of their own, offering cheaper items than can be found in-store.

His comments follow research by PricewaterhouseCoopers, which revealed that households without digital access are missing out on savings of approximately £560 each year, both from shopping and paying bills online.

By Sarah Adie

Brits trying to get on the property market for the first time could find themselves assisted by building society Nationwide, as the firm has introduced new options for borrowers, designed to make the process more efficient and cost-effective.

The institution has implemented plans to reduce the amount people need to pay in order to secure a deal, offering them one of two choices - either a £250 reservation fee discount and free legal fees or a bigger discount on the reservation charge, from £250 to £500.

Mortgage director at Nationwide Andy McQueen remarked that these new offers, combined with rate reductions, "should really help first-time buyers".

"We are reducing the amount that they need to pay upfront and so hope we’ve removed a barrier which may have prevented people from buying a home," he continued.

Last month, Nicholas Leeming of propertyfinder.com noted that many potential buyers are finding it difficult to obtain loans, despite improvements in the market, with those already on the property ladder the only ones to feel the effects of this thus far.

By Sarah Adie

A series of workshops devised by the Office of Fair Trading (OFT) and to be delivered by Citizens Advice have been implemented as part of the OFT’s Save Xmas campaign, to help at-risk groups such as lone parents, those on low incomes and debtors consider their savings options.

Head of financial capability at Citizens Advice John Rhodes noted that the organisation has seen "increasing numbers of people seeking help on money matters" across the UK.

The new campaign - which will see 210 seminars held directly for consumers - "means bureaux and local partners will be able to help even more people to budget, borrow and save with confidence".

Analysis of 2008’s Save Xmas sessions revealed that 40,000 people attended advisory meetings, with 71 per cent of attendees stating a rise in confidence in choosing how to save.

Earlier this month, Simon Lambert from This Is Money remarked that more must be done to educate the public on the best ways to save and that attitudes need to be changed.

By Sarah Adie

A series of adverts are to appear across Bolton urging those in financial difficulty to take action before their problems spiral out of control.

The Bolton News, which will also carry the warnings, reported the case of a local man who found himself unable to cope after leaving it too long before he went to seek help.

Leon Black, a father of three, was made unemployed in the run up to the recession and when the economic downturn took hold he found it impossible to find work.

He did not claim any benefits and waited six months until he sought expert advice, by which time he was too far in debt to stop his home from being repossessed. An IVA or debt management plan may have saved his property.

The story emerged as Advice Week 2009 was launched by the charities making up the Working Together for Advice project.

In a statement issued by Citizens Advice to mark the event, Youth Access director Barbara Rayment said people who put off asking for help “can make their problems much harder to resolve by the time they reach a professional adviser”.

By Chris Trimble

Consumers with debt trouble should always seek expert guidance as it can help them even if they are in a particularly bad predicament, one expert has suggested.

Citizens Advice chief executive David Harker stated while it is best that people look for advice as soon as they start having problems, because more options will be available, action can still be worthwhile for those on the brink.

"Even people at crisis point - for example people facing a court hearing for repossession of their home - can find their situation swiftly improved if they seek advice," he commented.

The remarks were made as the Working Together for Advice project, made up of Citizens Advice, Age Concern and Help the Aged, the Advice Services Alliance, AdviceUK, Youth Access and the Law Centres Federation, launched Advice Week 2009, which runs until October 18th.

It seeks to raise awareness of the importance of getting help at a time when Citizens Advice Bureaux in England and Wales are handling more than 9,000 new debt problems a day.

By Chris Trimble

Expensive living is one of the main causes of student debt, according to one professor.

Kevin Sharpe, who specialises in Renaissance studies at the University of London, wrote for Times Higher Education that the blame for people graduating with substantial arrears does not lie solely with the fees they have to pay.

He indicated that the difference between the standard of living of today’s students and those of a few decades ago is massive and suggested more frugality could ease the financial strain.

"We should not ask our students to return to the fleapits of an earlier age, but a bit less luxury might mean a lot less debt," the academic remarked.

Mr Sharpe noted that many students seem to have accommodation that is better than most would expect of their own homes, while there is also a penchant for expensive gadgets, eating out and buying food from high-end supermarkets as opposed to economy stores.

According to the Push Student Debt Survey, those who started at university last month should expect to graduate owing approximately £23,200.

By Chris Trimble

A new report from AlixPartners has indicated that the majority of consumers in Europe are not reducing their personal debt levels as result of the economic downturn.

The survey of 5,000 adults in the UK, France, Germany, Italy and Sweden found that most people have kept the amount of money they owe the same amid the recession, with 27 per cent of Italians actually increasing their deficit.

Furthermore, more consumers in the countries believe their situation is worsening rather than improving and less than one in seven respondents from the UK said they had confidence in their government’s ability to lift the economy.

The study appears to contrast with recent reports in the press that a sizable number of consumers in the UK are trying to reduce their debt.

Credit Action’s figures for August revealed the average household owed £9,180, excluding mortgages. This compared to £9,226 in the previous month.

By Chris Trimble

The number of people asking for help as a result of the recession continues to rise, it has been suggested.

Jill Sinclair, interim manager at a Citizens Advice Bureau in Newmarket, told Newmarket Weekly News so many consumers have been struggling with debt since the recession took hold that her centre found itself unable to cope.

It needed £30,000 of extra funding and support from local authorities and charities in order to reorganise its structure to deal with the surge in enquiries.

"We are terribly busy and getting busier all the time," Ms Sinclair commented.

Debt problems account for 25 per cent of all the work carried out by the bureau, the second biggest segment behind benefits (28 per cent). Employment issues such as redundancy generate 13 per cent of the work load.

At the start of September, the Citizens Advice network revealed it was dealing with record numbers of problems linked to the recession, such as debt and job loss.

By Chris Trimble

People in the UK increasingly concerned with their debt problems are turning to fraud in order to keep in the black, new research has suggested.

Findings from moneysupermarket.com have revealed that over a million motorists would consider faking an accident in order to place a claim, while 340,000 drivers have already done so successfully.

Head of motor insurance at the price comparison site Steve Sweeney remarked that “desperate times do often call for desperate measures”, but he decried this as “a step too far”.

The study also found that men are more likely than women to take part in a staged accident, with those in their 20s posing the greatest threat on the roads - three per cent have made fraudulent claims and another six per cent would consider doing so.

Last month, Frances Walker of the Consumer Credit Counselling Service revealed that people are finding it increasingly difficult to pay back their debts, as problems with arrears are now more complicated.

By Sarah Adie