Abacus Daily Debt News

Rises in inflation could hit Britons in the pocket and possibly lead them down the road to debt, new figures have suggested.

A Moneyfacts press release has shown that the Consumer Price Index (CPI) has only dropped marginally to 3.2 per cent.

This amount is markedly above the government’s two per cent target.

However, the organisation noted the VAT increase scheduled to come into effect at the beginning of next year could significantly hinder any more longer term reductions.

It added a basic-rate tax-payer would need an account that pays at four per cent.

Jason Riddle, co-founder of action group Save Our Savers, commented on the matter.

The expert observed: "The days of interest even matching inflation, let alone beating it, seem long gone."

According to figures recently presented by the Office for National Statistics, CPI annual inflation currently stands at 3.2 per cent, which is down from 3.4 per cent recorded in May.

By Joe Shervin

People entering into their retirement could soon find themselves in need of debt management, new statistics have suggested.

Figures released by LV= in the annual State of Retirement Report have shown Britons over 50 have reduced their post-work savings by nearly £18 billion in the last 12 months.

The investigation revealed 21 per cent have decreased what they had put away by an average of £324 a month - which equates to £3,800 a year.

This amount is more than twice the sum (£137) average reduction that was made by 20 per cent of over-50s last year.

Ray Chinn, head of pensions at the organisation, noted this age bracket has already seen its monetary hoards dwindle because of the recession.

"And now many appear to be diverting still more away from retirement saving to deal with immediate pressures," he added.

A study recently released by Aviva warned financial troubles may prevent a number of former workers from enjoying the comfortable retirement they have envisaged.

By Joe Shervin

Consumers could be running the risk of slipping into debt as new figures have shown spending to be on the increase.

The Barclaycard Retail Card Spending Index revealed customer purchases in June were up 9.9 per cent year-on-year.

Such a figure took into consideration all sales that have been made by retailers on credit and debit cards, in-store and online.

The report found spending on cards has escalated by over 80 per cent in each of the last four months compared with the same period last year.

According to the Barclaycard press release, the statistics provide a deal of optimism for those involved in the retail market as popular anxiety over spending money appears to be receding, with post-recession recovery gathering pace.

The recent BRC-KPMG Retail Sales Monitor in June revealed retail sales values crept up 1.2 per cent on a like-for-like basis compared with the same period 12 months earlier.

By Joe Shervin

An increasing number of consumers could require debt help as a new report has highlighted the prevalence of fraud in the UK.

Action Fraud, the first national reporting centre on the subject in Britain, noted it has had 15,000 web reports in the last six months from individuals who have called for an end to the practices.

The National Fraud Authority, which runs the programme, observed at least £3.5 billion is lost by customers falling victims to such cons every year.

According to the body, this amount is probably much greater as many people fail to report the incidents.

It stated, from the fraud reports made, that losses have ranged between £6 to in excess of £1 million.

In the last month, the most common stings have included online shopping and auction scams, advance fee frauds - such as loan and psychic plots - and romance and dating tricks, the organisation added.

Get Safe Online recently warned holidaymakers to be on the lookout for bogus travel websites when booking their getaways over the internet.

By Joe Shervin

The school summer break could result in an increased number of parents requiring debt help because of the cost of keeping children entertained, new figures have shown.

A press release from Moneysupermarket Vouchers, which is part of moneysupermarket.com, revealed families expect to shell out a total of £5.6 billion on activities for their kids over the coming months.

This comes to £330 per family and 64 per cent of parents admitted they are worried about how much such pursuits are going to set them back.

A further 21 per cent claimed they are going to struggle to afford the extra outgoings.

To combat the costs, 83 per cent of those polled said they will use discount vouchers to help them keep within their budgets, while 27 per cent stated they are going to give up nights out with friends.

A survey recently carried out by Elizabeth Finn Care revealed 15 per cent of those with youngsters will be more than £500 in debt by the time the mid-year break is over.

By Joe Shervin

Britons could be placing themselves at risk of future debt problems by failing to save adequately, new research has suggested.

The latest quarterly Birmingham Midshires’ Saving Britain report revealed individuals are taking money out of their savings on an increasingly regular basis.

Around two-in-five adults (38 per cent) in the UK confessed to raiding their coffers during the three months leading up to July.

The average amount of cash taken rose from £1,499 to £1,870 in this time.

Brits only managed to put away an average of £764 throughout those months, which was down from the £1,301 shelved during the last quarter.

The age group dipping into their cash stores the most was found to be the over-55s, who withdrew an average of £2,284.

However, a Bank of England report recently revealed families of today appear to be putting aside more funds than they have in the last 20 years.

By Joe Shervin

Hikes in the price of energy bills could leave consumers facing debt worries, new research has suggested.

Comparison website Confused.com has commented on the increases and the apparent removal of fixed tariffs.

The portal noted EDF has replaced its Annual Fix v2 offer with a v3 product, which will cost an extra £55 each year.

It found npower has withdrawn its best-buy deal, while both OVO and SSE have introduced more expensive tariffs.

Lisa Greenfield, energy analyst at the company, said the measures point to an ominous future for bill payers.

"It’s depressing news for households as all signs suggest our gas and electricity bills are going to increase," she explained, before adding it appears the energy "sale" of 2010 has now come to an end.

A Bank of England report recently revealed families in the UK are currently saving more money than they have done in the last 20 years, with £24 billion placed in deposit accounts in 2009.

By Joe Shervin

Children who receive financial education could be better equipped to manage their future monetary situations and avoid debt concerns, it has been suggested.

Paul Mullins, chief executive officer at National Debtline, was speaking in response to news that Coventry Building Society has been working with pupils of Stoke Park School as part of the Personal Finance Education Group’s My Money Week.

Staff from the organisation have been holding financial literacy classes with year ten students to enable them to get to grips with effective money management and learn the differences between financial products.

The industry expert noted: "Financial education has a crucial role to play in ensuring the next generation grows up aware of the problems of getting into unmanageable debt."

A recent study carried out by R3 found a quarter of youngsters in the 18 to 24-year-old age bracket cannot face opening their bills for fear of the amount of cash they owe.

By Joe Shervin

Holidaymakers in Britain may be turning to vacations closer to home in an effort to keep debt problems at bay, it has been suggested.

New figures released by Confused.com have shown 45 per cent of Brits are considering a staycation rather than splashing out on a getaway abroad.

The website noted there has been a surge in caravan sales across the nation in recent times as money worries and international travel chaos have made British holidays a more attractive option.

There are around 4,000 caravan parks and nearly half a million touring caravans currently in the UK, with the market for such vehicles swelling to an estimated value of £3 billion.

According to the portal, people remain very anxious for a break but lack the financial means to travel overseas.

Moneyfacts.co.uk recently advised individuals who are venturing abroad to consider how they are going to purchase goods when at their destination and to ensure they get the best exchange rate available.

By Joe Shervin