Abacus Daily Debt News

People's debt concerns may be heightened if the next year sees a rise in repossessions.

According to the Consumer Credit Counselling Service (CCCS), an escalation in such action is likely to take place in the upcoming 12 months.

The charity warned a housing market recovery might result in an increase in repossessions as lenders begin to enforce orders that they have postponed over the last year.

Malcolm Hurlston, CCCS chairman, commented: "Lenders have shown leniency towards debtors during the recession by not enforcing suspended possessions orders."

He warned such action was partly determined by the markets and added some organisations are reluctant to allow debtors to switch to interest-only mortgages as a short-term solution - which would give people a little more breathing space while searching for a solution.

The recent Economic and Labour Market Review from the Office for National Statistics found the UK has witnessed an increase in the number of workless households.

By Amy White
 

A new motion chart has been created to show the evolution of personal insolvencies in England and Wales in the last decade.

Devised by ClearDebt using data from the Insolvency Service - gathered between 2000 and 2009 - the model revealed an increase in people choosing the option across this time frame.

People are encouraged to interact with the information and can do so by selecting different values for the axis.

The organisation recommended: "Modify the size and the colour of the circles to display different information to suit."

Individuals wishing to look at a specific district can select the area from the list provided.

Pressing the play button will create a trial that shows the region's personal insolvency figures in the nine-year period. 

The recently released Economic and Labour Market Review from the Office for National Statistics revealed a rise in workless households over the last few years - suggesting more people may be at risk of personal insolvency.

By Amy White
 

Elderly people may soon face debt worries because of low interest rates, it has been suggested.

Mark Bower, managing director of moneymaxim.co.uk, said the changes could result in lower income for individuals over a certain age.

The industry figure noted lower interest rates will mean that whereas in the past older people "had budgeted for a certain level of income from their funds, they are just not seeing that income being achieved at the present moment in time".

Changes introduced by the government relating to pensions will also adversely affect the elderly, he explained.

Mr Bower claimed linking final salary schemes to the consumer prices index instead of the retail prices index will mean reduced long-term expenditure for them.

A recent study carried out by LV= found millions of Britons may face financial difficulty during the first five years of retirement as they are suddenly hit with extra monetary requirements.

By Joe Shervin
 

Retirees may face debt worries during the first five years after finishing work, new research has suggested.

Carried out by LV=, a survey found millions of Britons face monetary strain during the ‘golden years’ of their retirement.

It showed 17 per cent are hit by a sudden requirement to support family members financially.

More than one-in-three (34 per cent) celebrated the birth of a new grandchild in this time frame, while one-quarter moved house.

Almost a quarter (24 per cent) of those who ended their employment stated their health had worsened during the half-decade following the event.

Matt Trot, head of annuities at the organisation, noted: “Any unexpected strain on their finances in the early years of retirement could have a significant knock-on effect further down the line.”

A recent study by Scottish Widows found funding a comfortable retirement is perceived by many over-50s as the biggest obstacle to after-work living.

By James Francis
 

People over the age of 66 who wish to holiday in Europe have been warned they may face elevated travel insurance costs.

According to moneysupermarket.com, individuals in this age bracket are to be confronted with premiums 109 per cent greater than those aged 65 or under.

The hike relates to holidaymakers travelling within the continent with an annual multi-trip policy.

Such vacationers could see a further 24 per cent added to these costs when they reach 70, the website warned.

Bob Atkinson, travel expert at the portal, advised older tourists to “prepare themselves for the shock of being penalised for turning 66 and then 70″, regardless of their health.

He described the 109 per cent premium swell as “extreme” and stated using age to calculate prices is a “crude measure”.

Una Farrell, media relations manager for the Consumer Credit Counselling Service, recently recommended people planning an overseas getaway should fund their trip by saving, not borrowing.

By Amy White
 

People may attempt to save more in a bid to avoid the need for debt management because of uncertainty over public spending cuts, it has been suggested.

Adrain Lowcock, senior investment advisor at Bestinvest, noted fears on the matter should encourage individuals to place additional money aside.

The industry figure observed: “Something like that should actually increase savings, because people who are concerned about it will be more likely to save, to prepare for their biggest fear - losing their employment.”

Realities of the government’s cost-cutting measures are now hitting home, he explained, adding the public sector is likely to see more potential job losses.

Mr Lowcock maintained the problem would still persist regardless of which political party was victorious in the previous election.

His comments came in response to figures released by the Nationwide Building Society that revealed 21 per cent of consumers believe they will not be saving as much six months down the line as they are now.

By James Francis
 

The inability of the British public to save money could see more people requiring debt management help, new figures have suggested.

A study by Nationwide Building Society found individuals are becoming increasingly pessimistic about their confidence in putting cash aside for future use.

The report showed 21 per cent of consumers believe they will save less six months down the line than they do at present.

This figure stood at 18 per cent in the first quarter of 2010, representing a quarter-on-quarter jump in attitude negativity of three per cent.

Around three per cent fewer individuals now claim to save regularly than they did in the first quarter, while 22 per cent now admit they do not have place any cash for safe-keeping at all.

A recent article in the Guardian claimed debt has now become entrenched in modern life throughout the UK, as the nation has one of the largest levels of personal debt in the world.

By James Francis
 

A new minimum wage rule could see some of the country’s lowest earning families facing debt troubles, it has been suggested.

As of January 1st 2011, National Minimum Wage (NMW) regulations will change - meaning low-paid workers will not be able to participate in travel and subsistence expenses schemes that are used by some businesses.

The Low Incomes Tax Reform Group (LITRG) announced it was disappointed the NMW had not agreed to a wider review of the situation.

Speaking of the expenses schemes, LITRG noted: “Without [the benefits] many low-income workers will be worse off still.”

The organisation added it is hopeful the new 21st Century Welfare consultation will be more allowing of suggestions to improve the situation of low-income employees facing high travel-to-work expenses.

It was recently highlighted by the Institute for Fiscal Studies that there is an alarmingly uneven distribution of wealth in Britain, with a large proportion of money resources held by a relatively small proportion of the population.

By Joe Shervin

People could avoid the need for debt management help by saving for a holiday rather than borrowing money to fund it, an expert has suggested.

Una Farrell, media relations manager for the Consumer Credit Counselling Service, advised people using their own cash is the most sensible option to pay for a vacation.

The industry figure was speaking in response to figures released by R3, which revealed more than 2.3 million people borrowed amounts in an effort to get away.

Ms Farrell said taking a break “is an important way to deal with the stresses of everyday life, so it shouldn’t be something that adds to those stresses by leaving you with a debt problem”.

She added those taking out a loan should think carefully before doing so.

According to another recent press release for R3, 38 per cent of Brits are aiming to spend less while on holiday this year, while 56 per cent have opted to not head abroad in an effort to save the pounds.

By James Francis

More than two million people have placed themselves in debt by going on a holiday this year.

According to new figures from R3, 2,329,500 Brits had to borrow more than £1,000 - and they will spend around seven months paying it back.

Frances Coulson, vice-president of the insolvency trade body, described the trend as worrying.

The industry figure observed: "Personal insolvency hit record levels in the first quarter of this year and looks set to rise - so we’re urging people not to spend more than they earn."

Holidaymakers aged between 16 and 24 were the most likely to borrow cash to fund a vacation, while over-65s were less prepared to do so, the study discovered.

Mr Coulson added the finding proves saving, rather than spending, should be promoted among young people.

Get Safe Online recently warned of the dangers involved in booking getaways online after it found 30 per cent of web users do not check the validity of a site before paying for a holiday.

By James Francis