Abacus Daily Debt News

People who take out suitable travel insurance could be less likely to experience financial worry if something was to go wrong during their forays abroad.

Erica Nelson, spokeswoman for Direct Line, has said that now, more than ever, the issue of holiday cover is important for those who don’t want to risk monetary loss while out of the country.

The industry expert was speaking in response to intensified talk of the matter as a result of travel disruptions caused by the Icelandic volcanic ash cloud.

Ms Nelson noted these policies are often cheaper than others - such as health and car insurance - and they are there to cover for things people do not necessarily have the money for.

Individuals "have cover for so many things that can really come in handy" should they require them, she added.

A recent press release by the International Air Transport Association disclosed that airlines missed out on £130 million a day in lost revenue due to the volcanic ash complications.

By Joe Shervin

A significant number of the British public are still feeling unstable regarding their financial situation, a study has revealed.

Research conducted by Scottish Widows has found that almost one-in-five Brits are using an "ostrich mentality" with their money, despite the nation emerging from recession.

Just under a fifth of those questioned cited personal debt as the main reason for such behaviour.

A third said they are not responsibly prioritising their monetary security and 24 per cent are more afraid of neglecting their cash situation than any other aspect in their lives.

Savings expert at the company Alison Morris commented: "Our financial security, savings and jobs are suffering as we struggle to prioritise what really matters when it comes to financial stability."

A study recently carried out by ClearDebt showed the number of people in the UK experiencing debt worries is on the rise, following an increase in individuals with money difficulties of 13 per cent between October 2009 and March 2010 compared with the same time a year earlier.

By Joe Shervin

A number of people hoping to attend a summer festival could face financial strain if they purchase a dodgy ticket.

The Society of Ticket Agents and Retailers has warned potential partygoers of the dangers of buying rip-off passes from unofficial websites.

Jonathan Brown, secretary for the organisation, commented: "It’s very easy to create a website that looks classy … but that doesn’t mean it’s law-abiding or will definitely supply you with what you think you are buying."

The body has offered some top tips on how consumers can avoid such traps online.

These include checking that the vendor is part of an official channel, noting down the selling company’s contact details, ensuring the tickets have the required details and only making payments that are fully secure.

A number of festivals will be taking place across the summer, including Glastonbury, which will be celebrating its 40th anniversary with headline performances from U2, Stevie Wonder and Muse.

By Joe Shervin

Children are becoming more interested in their money management arrangements, which could help them avoid debt in later life.

Research conducted by Halifax found that an increased emphasis on financial matters has resulted in youngsters believing that they should take extra responsibility in regard to their cash flow.

The study disclosed that 37 per cent of individuals between 11 and 15 years old think they need to be monetarily savvy, with 23 per cent suggesting this could wait until they are between 16 and 20.

Flavia Palacios Umana, senior manager at Halifax savings products, commented on how earlier understanding of such aspects could lead to better awareness at a later date.

The expert noted: "These skills, alongside an understanding of financial matters, will help them to more effectively manage their money and financial commitments now and in the future."

A survey recently carried out by NatWest’s 2010 MoneySense Panel also found teenagers to be becoming more considered in their approach to budgeting and spending.

By Joe Shervin

A number of people in debt difficulty are hiding their worry from their partners, it has been claimed.

Newly-released research from the Post Office has revealed that more than one in five of those who are struggling financially have not informed their closest relative, while almost a third have not told other family members.

The average person in the UK has £9,731.51 worth of debt, but individuals, on average, will only admit to half that figure when talking to their nearest and dearest.

People who cover up their debt can also suffer emotionally and physically because of the hardship, the study suggested.

Symptoms can include sleepless nights, anxiety and even alcohol addiction.

Donna Dawson, a psychologist who specialises in personality, behaviour and relationships, said: "Hiding the extent of debt from a partner or family member may give us a false illusion of control or independence."

A survey recently conducted by moneybasics.co.uk recently showed that around 60 per cent of Britons overspend their budgets each month.

By Joe Shervin

People who download digital services could be placing themselves at risk of financial difficulty by not insuring what they have purchased.

New research from moneysupermarket.com has revealed that the average Briton has almost £1,200 worth of items, such as music, movies and software, bringing the total amount in the UK to £46 billion.

The study found that three in ten home contents insurance policies cover such possessions.

People may not therefore be aware of the monetary problems that can be incurred if these products were to be lost, the website claimed.

Julie Owens, head of home insurance at moneysupermarket.com, said that consumers don’t associate "the same value to an MP3 player full of music as they do to a wall full of vinyl, but it is just as - if not more - valuable".

A survey recently conducted by the portal found that almost 402,000 people have confessed to making a successful false home insurance claim.

By Joe Shervin

People could face financial difficulty as it has been revealed that npower is increasing its energy prices.

Those on Sign Online 14 tariffs are being moved to more expensive deals that could see their payments increase by up to 24 per cent, it has been claimed.

Mark Greening, head of utilities for Gocompare.com, has warned customers to be alert to letters from the company using supply license requirements as an excuse for the hikes.

He said of the changes: "Unfortunately npower appear[s] to be using this as an opportunity to hit some of their existing customers with significantly higher bills."

Mr Greening commented that as far as he is aware, the terms of the firm’s supply license do not create any obligation to align online tariffs with standard ones.

A study recently carried out by uSwitch.com has revealed that three in ten households have been incorrectly billed for energy services in the last two years.

By Joe Shervin

The threat of card fraud still remains - which could land people in debt difficulty - it has been suggested.

Jemma Smith, head of public relations for the Payments Council, has acknowledged the problem is unlikely to go away.

She revealed that there is no obvious solution for the offence and no "one hit wonder" for dealing with it.

The expert said: "You often find that as soon as you have closed one window another is opened wider and that will continue to happen."

Despite admitting card fraud will not go away, Ms Smith maintained people are now better protected against the crime.

She explained that individuals should expect to get their money back and have more cover against purchasing faulty goods under the Consumer Credit Act.

Dot Gibson, general secretary of the National Pensioners Convention, recently warned that the phasing-out of the cheque as a payment method could lead to financial worries for the elderly.

By Joe Shervin

The issue of youth unemployment must be addressed by governments to prevent people from falling into debt difficulties, it has been suggested.

A paper released by the Organisation for Economic Cooperation and Development (OECD) has looked at the situation ahead of the G20 Labour Ministerial in Washington on April 20th - 21st.

The number of people out of work is set to keep on rising in the months ahead and remain at a high level until the end of 2011, the study warned.

It stated: "The short-term prospects for youth unemployment in the OECD countries remain rather gloomy … Many unemployed youths are likely to experience a prolonged period of joblessness."

More policies are required that target young people - especially those with little or no education and skills - it added.

The Trades Union Congress recently welcomed the Labour Party’s minimum wage commitments - which aim to give the independent Low Pay Commission a broader remit in tackling poverty pay.

By Joe Shervin

People in long-term relationships who are not living together may be throwing away a total of £5 billion a year - which could be food for thought for those struggling with debt.

Research conducted by Santander Mortgages has revealed that over one million couples in the UK are in "two-roof" partnerships.

Despite spending an average of three nights every seven days together, they collectively spend £5 billion extra on accommodation.

Andrew Hagger, spokesman for Moneynet.co.uk, said that individuals should consider moving in together if circumstances - such as getting to and from work - are suitable.

He commented: "It makes sense just to live together and then reduce your expenditure."

The money saved could then go towards a deposit for a new shared house, the expert added.

A recent YouGov survey discovered that 26 per cent of Britons aged between 18 and 30 would not get married if they did not have their own place to move into.

By Joe Shervin