Abacus Daily Debt News

The age of retirement has to increase to prevent people having to pay more to support retirees in the future, it has been suggested.

Robin Ellison, a partner at Pinsent Masons, said the move has to take place or else there will be fewer workers and more old people who are living longer.

This would make the costs "unsupportable" and could impact on the taxpayer.

The industry figure explained: "Something has to be done. The obvious shock-absorber is to change the age of retirement."

Mr Ellison remarked that the only question remaining on the matter is how far and how fast the rate will increase.

Most commentators in the industry predict it is to elevate to 70 within the next ten years, he added.

It was recently revealed in the Queen’s Speech that a comprehensive review is scheduled to be carried out regarding the timetable for increasing the state pension age.

By Joe Shervin

Householders need to make sure they purchase adequate insurance if they wish to avoid future debt problems following burglaries and floods.

This is the suggestion of Malcolm Tarling, media relations manager at the Association of British Insurers, who was speaking in response to figures recently released by Clydesdale and Yorkshire Banks.

The study revealed that homeowners without appropriate cover face an annual total bill of around £200 million because of theft.

Mr Tarling emphasised the significance of such protection: "It is important to have building insurance because for most people a property is the biggest single investment they are ever likely to make."

He added that one-in-four households in Britain do not have contents insurance and he predicted £2,000 to be the typical cost of a break-in.

The last Key Facts report from the Association of British Insurers revealed that one-in-ten homeowners make an insurance claim each year and one-in-three have no buildings cover.

By Joe Shervin

Travel agents that sell unsuitable travel insurance to customers could be placing them at risk of avoidable money worries.

An investigation from consumer group Which? has discovered many operators are offering poor value for money insurance deals.

Undercover researchers from the organisation found that some company’s were quoting amounts that were significantly more expensive than those that could be gained elsewhere.

Of the 29 travel agents visited, 17 did not provide basic details about the policies they sold, while six failed to enquire about pre-existing medical conditions at all.

Head of research for Which? Holiday Rochelle Turner said: "If travel agents want to sell insurance, they must train their staff properly so customers can feel confident they’ve bought the right policy."

Figures recently released by Direct Line Travel Insurance disclosed that 41 per cent of Britons have fallen victims to thieves while holidaying abroad, with 16 per cent having their credit and debit cards taken.

By Joe Shervin

People who take up working from home offers found via newspaper adverts and online could be placing themselves at risk of future debt.

A new study from Which? Money Quarterly has found that applying for such job vacancies could cost individuals over £7,000.

Experts from the magazine monitored 13 adverts in national publications and ten on the internet.

They discovered many of the offers require an upfront fee for more information or training, none of them proposed a recognisable salary, it is almost impossible to earn the amount they claim is on offer and the vacancies often failed to match the description in the advert.

James Daley, editor in chief of the organisation, commented: "Hundreds of thousands of people could be wasting money looking for work in these difficult times. If a job offer sounds too good to be true, then it probably is."

President of R3 Peter Law recently stated that unemployment can act as a common catalyst towards personal insolvency.

By Joe Shervin

The worries of those in debt difficulty could be being exacerbated by creditors who are harassing them for the money they owe.

New research by R3 has revealed that almost a third of individuals in statutory insolvency procedures are still being contacted by the people they need to repay.

Steven Law, president of the insolvency trade body, described the actions of such creditors as "astounding".

The industry figure said: "That such a large proportion of bankrupts are not afforded the peace of mind they are entitled to is of grave concern."

Mr Law added that the decision to file for bankruptcy is not one that is reached lightly and therefore those who take up the option should not then continue to be contacted by creditors.

Figures recently released by Citizens Advice indicated there were 2.4 million enquiries from people seeking debt help between April 2009 and March 2010, which was up 23 per cent compared to the same time a year earlier.

By Joe Shervin

Individuals are very concerned they will lose their jobs, which may bring about debt worries, an expert has claimed.

Ivan Browne, director of GfK consumer products and retail, noted that unless people understand the financial implications of the new government, then confidence is likely to be flat.

Mr Browne remarked: "This could worsen once the full extent of public sector job cutbacks is known. There is a long way to go before consumers accept we are through the worst of the recession".

The specialist is expecting the recovery in spending to be slow, with big purchases particularly affected.

George Osborne has announced an emergency Budget and this could bring a degree of clearness for people, he added, with one-in-five workers still concerned over their positions within companies.

A British Retail Consortium study discovered that over the next 12 months nearly three-quarters of people said they thought job prospects will be bad or not so good.

By Rory Mallon

Credit card debt could be set to rise in the UK, as research has shown spending on such products has increased.

According to Barclaycard, retailers last month processed credit and debit card transactions worth nearly nine per cent more than April 2009.

However, growth from the level of March of this year was described as being flat, with head of UK payment acceptance Stuart Neal predicting a similar trend to be seen this month.

Consumers may have taken steps to limit debt worries over the May Day bank holiday weekend, with figures from the firm showing a slight decline in spending compared to the equivalent period a year ago.

"It seems that this May Day, consumers haven’t been tempted by retailers to get out and spend," said Mr Neal.

Last week, managing director of Shopworks UK Craig Phillipson suggested Britons are still being cautious about parting with their money, as the potential for debt problems remains.

By Andy Mackay

Consumers may be using restaurant discount vouchers in an effort to stave off money worries.

According to Moneysupermarket Vouchers, British diners are saving almost £3 million every day through the coupons.

Its study revealed that 30 per cent more people are now utilising the payment method than there was 12 months earlier and almost 60 per cent of Brits admitted using discount vouchers to pay for a meal.

More than one in five individuals cited the offers as the main reason Brits are now eating out more than ever before.

Sian Harrison, voucher expert at moneysupermarket.com, said: "The number of vouchers on moneysupermarket.com has increased by 400 per cent year on year, with restaurants being by far the number one searched category."

Head of economic and market analysis at Nationwide Mark Saddleton recently suggested uncertainty regarding the economic situation and the new government is causing consumer financial confidence to remain low.

By Joe Shervin

People hoping to avoid money worries this summer need to be aware that their home contents policies may not adequately cover items left in the open.

New research carried out by Defaqto has found that many insurance policies do not account for items that are left unattended in the garden or boundary of the home.

The findings could be increasingly relevant as the weather starts to improve in the coming months.

It was revealed that 42 per cent of policies provide less than £1,000 of cover in this area, 43 per cent offer between £1,000 and £2,000, while 15 per cent provide more than £2,000.

Mike Powell, insight analyst for General Insurance at Defaqto, commented: "Water features, decking, garden furniture, outside lighting, gas barbeques, children’s play things and plants can be expensive to replace and run into hundreds of pounds."

Halifax Home Insurance recently advised football fans to make sure they are sufficiently insured for any products, such as widescreen TVs, which they might buy to watch the World Cup.

By Joe Shervin

A significant number of people in Britain could soon be facing debt difficulties as it has been suggested that the financial health of consumers remains weak.

The Alliance Trust’s UK Financial Reality Index fell from a revised level of 90.5 to 77.3 in the first quarter of 2010.

This is mainly due to subdued levels of earnings growth and real disposable income, as well as lower levels of economic activity.

Shona Dobbie, head of the Alliance Trust Reseach Centre, said it is "disappointing to see our index of consumers’ financial wellbeing deteriorating once again, following several quarters of improvement".

The industry expert added that the index predicted consumer spending will remain relatively low in the coming months and that household finances are likely to be further strained by increased taxation.

Director of Credit Action Chris Tapp recently warned that the number of personal insolvencies in the UK may remain high as unemployment levels continue to rise.

By Joe Shervin