Abacus Daily Debt News

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
 

People not wanting to add to their debt concerns may want to make sure their home goods are not vulnerable to thieves, it has been advised.

A new study by Hiscox found sporting equipment may be particularly susceptible to burglars as it discovered kit worth around £770 is potentially being left unsecured and uninsured in gardens and garages.

The research showed 53 per cent of respondents often store expensive items such as bikes and golf clubs in yards and car boots during the summer months, while 26 per cent admitted they do not always secure their outbuildings in an effective manner.

Austyn Tusler, home insurance expert at Hiscox, said: "The value of sports equipment can really add up as people pursue outdoor activities and invest in sophisticated and expensive kit."

M&S Money recently urged homeowners to make sure their properties are adequately secured before they head off on holiday in the coming months.

By James Francis
 

The high prices parents face when paying for school uniforms could be increasing their debt concerns, it has been suggested.

Citizen's Advice stated schools are ignoring government guidance on keeping the garments at an affordable level and are adding to the finance-related stress many families are still suffering because of the recession.

The charity said too many educational institutions are insisting on maintaining a practice whereby uniforms can only be purchased from an excusive supplier, rather than allowing mums and dads to take advantage of offers available on the high street and in supermarkets.

Gillian Guy, chief executive of the organisation, said because of the current economic climate, "it's all the more important that schools do what they can to keep costs down for families who are under severe financial pressure".

The recent Cost of a Child study by LV= revealed parents in the UK will fork out a combined £709 million to kit out their children for the forthcoming school year.

By Amy White
 

A number of self-employed workers in the UK cannot afford to pay their debts, it has been suggested.

According to the Consumer Credit Counselling Service's (CCCS's) Self-Employed Centre, half of those contacting the charity do not have the money to repay what they owe.

It was approached by more than 6,500 individuals this year, yet only 1,600 were able to enter a debt management plan because more than 50 per cent of callers had a deficit budget.

A significant number of these people were from services industries such as hairdressing, gardening and taxi driving, the organisation explained.

Geoff Waugh, head of the CCCS Self-Employed Centre, noted: "The personal finances of the self employed are often complicated, with little distinction between their personal and business finances."

A recent study carried out by Age UK revealed unemployment among people over the age of 50 is currently at a ten-year high - suggesting many may soon require debt management help.

By Joe Shervin
 

The poorest households in Britain may need debt help management after it has been revealed the coalition government's emergency budget has hit society's least well-off the hardest.

Research commissioned by the End Child Poverty campaign and carried out by the Institute for Fiscal Studies also showed families with children have been negatively impacted.

It called the measures implemented by the coalition "regressive" as those in the lowest income decile are set to lose more than five per cent of their income.

Fiona Weir, a spokeswoman for the End Child Poverty campaign, observed: "It's not fair that children should have to pay for the cuts and shocking that the poorest families are bearing the brunt of them."

She added the government must review its cuts and carry out changes to housing benefits.

A recent Gocompare.com study showed nearly half of Britons believe themselves to be in a worse financial position than they were 12 months ago.

By James Francis
 

High inflation may be adding to the debt concerns of many people in the UK.

According to a new poll carried out by moneysupermarket.com, more than half of those questioned (56 per cent) claimed they have had to dip into their savings because of the trend - suggesting people's financial security may be under threat.

Moreover, a further 26 per cent admitted they would do the same if they needed the extra money.

Clare Francis, site editor at the website, noted: "Poor savings rates coupled with rising living costs are really squeezing British families."

The industry figure added Brits "face an uphill struggle" as they attempt to generate value from their savings while also battling against increasing living costs.

Editor of CashQuestions.com Annie Shaw recently observed it is costing individuals an increasing amount of cash to maintain a decent standard of living as prices for goods keep getting more expensive.

By James Francis
 

Reluctance to seek the cheapest option for car insurance could see the debt woes of people in Britain escalate, a new survey has suggested.

Carried out by Which?, the study found 60 per cent of drivers who shopped around were able to source a better deal.

Almost a third (30 per cent), however, admitted they could not be bothered to look for alternatives, meaning they may have been missing out on average savings of £58.

The company added people should not select their suppliers on cost alone as some policies may offer inadequate cover.

Peter Vicary-Smith, chief executive of the organisation, advised: "Always shop around for the best deal and if you do want to stay with your existing insurer, never accept their initial quote."

He added most providers will match a quote if a better price is located elsewhere.

Comparison website Confused.com recently warned consumers may face increasing debt worries as energy suppliers seek to increase their prices and remove fixed tariffs.

By Amy Francis
 

Many people in Britain appear to be willing to go to extremes to relieve their debt concerns.

New research from moneysupermarket.com found Brits will perform crazy tasks in order to get their hands on free money.

It revealed a quarter would lick the pavement for a £400 reward, while 24 per cent would take part in a skydive for the same amount.

While only six per cent admitted they would be a crash test dummy, 54 per cent stated they would be willing to write a 1,000 word essay and 57 per cent would stand in a queue for four hours.

Clare Francis, site editor at the portal, said: "It's truly shocking to see half the population would spend hours writing a 1,000 word essay for £400."

MSN Money recently revealed individuals in Britain are forking out a collective £2.4 billion a year due to carelessness and neglect - such as losing a mobile phone.

By Amy White
 

The rising costs of everyday living could be adding to debt concerns experienced by many people in Britain, it has been suggested.

Editor of CashQuestions.com Annie Shaw noted people will still find prices for goods remain expensive, despite a slight decline in inflation.

The industry expert claimed: "We are seeing huge increases in the price of some foods and other things, like oil prices, have been very volatile."

She explained the disparity between the Bank of England base rate and the Consumer Price Index would also mean almost everyone losing value in their savings.

It would be impossible for higher rate taxpayers to beat inflation on the money they have placed aside, while it may also be difficult for lower rate taxpayers as well, she added.

The Office for National Statistics recently revealed the Consumer Price Index annual inflation currently stands at 3.1 per cent, which was down from the 3.2 per cent registered in June.

By James Francis
 

Families may still require debt management help despite the announcement inflation has fallen, it has been suggested.

Ann Robinson, director of consumer policy at uSwitch.com, noted the news will offer no relief to households still struggling with their finances.

The industry figure claimed the situation is particularly worrying for those families that spend the majority of their income on food.

"Luxuries have been the first to go, but the current climate is forcing 24 per cent of people to also cut back on food," she warned.

Ms Robinson observed 16 million consumers are experiencing a pay freeze in 2010, making monetary woe even more prevalent.

Individuals should look to reduce their living costs and lower their household bills to counter the plight, she added.

A recent Nationwide Building Society study revealed many Britons are increasingly pessimistic about their ability to adequately save money for later life, with 21 per cent claiming they will be saving less in six months time than they are at the moment.

Posted by James Francis