Abacus Daily Debt News

Britons using their debit cards to pay for items while abroad have been warned the practice may leave them in financial trouble.

Caxton FX noted many people are slipping into "default mode" when overseas and using plastic instead of alternative payment methods.

Doing so is costing Brits a collective £144 million in unnecessary fees, the organisation warned.

It made its comments after the latest data from the UK Payments Council showed a £21.5 billion decline in the use of cheques and a 12.4 per cent rise in debit card spending.

Michelle Slade, an analyst at Moneyfacts.co.uk, explained buying items in a foreign country with a card can be a "costly mistake".

"In the UK we are so used to free banking that many people assume things will be the same when they go abroad," she added.

Recent research carried out by R3 revealed many Brits are choosing budget holidays in an attempt to stave off debt concerns.

By Amy White
 

It appears a number of men in the UK are fearful of redundancy and the possibility it could drag them into debt.

The latest MoneyMood Survey from Legal & General found an increase in the number of males who are currently saving in case they lose their job.

It was discovered 40 per cent of men who are putting money aside are doing so primarily because they are scared of the financial implications of becoming unemployed.

This was a rise in ten per cent from the number of guys who stated the same in February.

In comparison, only 25 per cent of women cited job loss as a reason for them to hoard their cash.

Mark Gregory, executive director for savings at the organisation, described the figures as "not surprising".

Chief executive of the Money Advice Trust Joanna Elson recently noted the number of unemployed households in Britain has escalated 27 per cent in the last two years.

By Joe White
 

Students have been advised to budget or they could land themselves in financial hardship, it has been suggested.

Jamie O'Connell, a spokesman for The Student Room, noted scholars have to splash out a lot of money when heading to university.

This includes payments for tuition fees, accommodation and textbooks, he explained.

The expert recommended: "Do the maths to know how much you can spend on food and going out each week after the essential costs are paid for."

Mr O'Connell added many university goers will need to find a part-time job to supplement their income and advised pupils to search for employment at the earliest possible stage.

Pubs, restaurants and the student union could provide ideal opportunities for such work patterns, he observed.

A recent study carried out by Family Investments showed the average monthly outgoings to sustain a decent standard of living for students have increased by 28 per cent since 2004.

By James Francis
 

The simplicity in which people can obtain credit is to blame for the high numbers of unemployed individuals suffering with debt.

This is according to the UK Insolvency Helpline Debt Advice Service, whose spokesman Ian Boden-Smyth acknowledged there are a great many UK residents who are in financial trouble and do not have a job to help ease their concerns.

The industry figure noted: "Whether they were working or they've just got debts while they're unemployed, I think we've got to blame the ease of getting credit in this country."

He described the fact there are people who are on benefits but also in debt as "shocking" but warned such individuals will still have to carry on paying their bills despite what they owe.

Mr Boden-Smyth's comments follow a recent press release from the Consumer Credit Counselling Service, which revealed a significant number of Britons claiming Jobseeker's Allowance owe thousands of pounds in unsecured debt.

By Amy White
 

The increasing price of food could see the debt problems of the poorer members of society in Britain worsen, it has been suggested.

According to the British Retail Consortium, food inflation is at its highest level for a year.

It escalated to 3.8 per cent in August from 2.5 per cent in July, which is the most elevated it has been since July 2009.

Moreover, overall shop price inflation grew in August to 1.7 per cent from the 1.5 per cent recorded in July this year.

Non-food inflation, however, slowed to 0.5 per cent from one per cent in the same period.

Stephen Robertson, director general at the British Retail Consortium, said: "Past rises in the cost of global commodities, such as wheat and sugar, are filtering through to food prices."

A recent study carried out by Gocompare.com found 41 per cent of consumers in the UK believe their finances are currently in a worse condition than they were 12 months earlier.

By James Francis
 

The over 55s are worried about the increase in the cost of living, a newly-released report has discovered.

Some 64 per cent of those questioned said they are concerned about how much money they will require in order to enjoy a good standard of living, which could see some end up needing debt help.

With 61 per cent of respondents distressed about how they will afford unforeseen expenses of £500 or more, it highlights the seriousness of the situation.

Many consumers in this age bracket may be left in the position whereby the need debt consolidation in order to regain control of their economic situation.

Clive Bolton, 'at retirement' director for Aviva - the world's sixth-biggest insurance company - noted post-career life used to be seen as a time to relax and enjoy not having to work every day.

"When you consider … £16,296 would [give] an annual gross income of just £117 … you can understand why many over 55s are very worried about their finances," he added.

Posted by James Francis
 

Those looking to become debt free could aid their situation by bundling their broadband service with digital TV and a home phone.

A report carried out by Ofcom discovered 47 per cent of those questioned do not take any advantage of the opportunity to group payments together in order to reduce their outgoings.

Research conducted by Broadbandchoices.co.uk discovered up to £210 per year could be saved if people use this service properly.

Michael Phillips, product director for the site, observed Britons are still forking out more than they should do for the service.

"With household budgets under such pressure at the moment, it is foolhardy to ignore the savings that bundled deals offer to consumers," he added.

The specialist continued there is money being "needlessly spent", which could see some slip into debt problems.

It comes after Gocompare.com revealed the average cost of sending kids back to school is collectively forcing parents to part with £1.2 billion.

Posted by Joe White
 

Jobseeker's Allowance claimants have debts averaging in excess of £15,000 and owe money to five different creditors.

This is according to new research from the Consumer Credit Counselling Service (CCCS), which has revealed one-in-eight people who got in touch with the charity during the opening six months of 2010 were claiming unemployment benefits.

Over a fifth (22.4 per cent) of those who contacted the CCCS said their unemployment status was a reason for rising debts and chairman of the body Malcolm Hurlston said being out of work "can devastate the finances of any family".

"Thousands of people claiming Jobseeker's Allowance are ensnared by unsecured debt and their needs demand specific study," he remarked, adding the government needs to take steps to make sure any cuts to welfare do not result in "huge numbers of people" being left with uncontrollable debts.

Citizens Advice recently warned the high price of school uniforms may be adding to debt problems, arguing education establishments are ignoring government advice to try and keep the cost of the items down.

By James Francis

Individuals who are already struggling to clear their debts may be pushed over the edge by the cost of their kids returning to school.

This is because research carried out by Gocompare.com has discovered parents will have to collectively part with over £1.2 billion on a variety of products for their children as they enter the new academic year.

New school uniforms, PE kits, school bags and pencil cases are just some of the things that may affect those hoping to get debt free.

The average amount spent by mums and dads on their offspring for this purpose is £134, with 49 per cent of kids admitting they now take a mobile phone to school.

Phil Paterson-Fox from Gocompare.com noted: "Parents are increasingly faced with the prospect of their children packing their school bags with ever more valuable items."

A recent study carried out by Hiscox found up to £770 worth of sporting equipment is regularly left unsecured in homes.

Posted by Amy White
 

People are beginning to realise they need to work hard if they want to end up debt free, one expert has claimed.

Ed Bowsher, head of consumer finance at lovemoney.com, noted it is "depressing" that personal debt has increased again and the situation has to be addressed.

It means those who are looking to clear their debts may want to think about using consolidation plans to do so.

Mr Bowsher observed there has been a change in the mindset of how arrears are now viewed, with many treating them as a "huge albatross".

He added with the Office for Budget Responsibility predicting the situation is likely to get worse, action needs to be taken.

"Higher interest rates will make it harder for people to repay their loans and we could see more insolvencies and people facing debt crises," the specialist observed.

Mr Bowsher's comments come after the Bank of England's Trends in Lending report showed interest rates on credit cards increased slightly in June.

Posted by Rory Mallon