Abacus Daily Debt News

More people could require debt management help if credit card lending continues to soar, it has been suggested.

Chris Tapp, director of Credit Action, was speaking in response to the latest Bank of England figures, which revealed a rise in such lending of £0.1 billion.

The industry figure warned the increase could be the start of a worrying trend.

He suggested access to credit can be beneficial to many, but warned: "It could be an indication that as people are starting to feel a little bit better about the economy … they are taking more risks again."

It is alarming the degree to which the nation appears to have come to depend on credit to function, Mr Tapp added.

However, the Bank of England figures also showed the annual growth rate of consumer credit dropped by 0.1 percentage points to -0.1 per cent, while the three-month annualised growth rate fell to 0.1 per cent.

By James Francis

More people could require debt management help if credit card lending continues to soar, it has been suggested.

Chris Tapp, director of Credit Action, was speaking in response to the latest Bank of England figures, which revealed a rise in such lending of £0.1 billion.

The industry figure warned the increase could be the start of a worrying trend.

He suggested access to credit can be beneficial to many, but warned: “It could be an indication that as people are starting to feel a little bit better about the economy … they are taking more risks again.”

It is alarming the degree to which the nation appears to have come to depend on credit to function, Mr Tapp added.

However, the Bank of England figures also showed the annual growth rate of consumer credit dropped by 0.1 percentage points to -0.1 per cent, while the three-month annualised growth rate fell to 0.1 per cent.

By James Francis

Individuals may be reducing their outgoings in an attempt to stave off debt fears, new figures have suggested.

The latest consumer credit figures from the Finance and Leasing Association (FLA) revealed people used eight per cent less credit in the 12 months leading up to May than they did during the same period in before May 2009.

According to the organisation, this implies consumers are reluctant to make credit commitments before seeing what happens in the wider economy.

The statistics found taking out unsecured loans dropped 45 per cent, while opting for a second-charge mortgage plummeted 67 per cent.

Fiona Hoyle, head of consumer finance at FLA, noted: "In uncertain economic times, consumers want to take even more control over their financial commitments."

The Consumer Credit Counselling Service recently claimed debt problems are adversely affecting people’s health, personal relationships and ability to adequately perform in the workplace throughout the UK.

By James Francis

Consumers in the UK may be best advised to seek debt management help as the financial health of British citizens remains generally weak, new figures have suggested.

Alliance Trust’s UK Financial Reality Index revealed monetary wellbeing improved slightly in the second quarter of 2010, but the organisation warned the debt burden has risen.

The index showed an increase from 77.3 to 77.7 - mainly driven by a degree of recovery in house prices and real earnings gains.

However, Shona Dobbie, head of the Alliance Trust Research Centre, observed: "Economic activity remains lacklustre, basic costs have risen and stock market growth has cooled."

The industry figure added the anticipated cuts in public spending could see unemployment numbers worsen over the coming months.

Caxton FX recently noted the Monetary Policy Committee’s last meeting did little to quell fears the UK could be heading towards a double-dip recession - meaning debt worries across the nation could increase.

By Amy White

British holidaymakers may be placing themselves at risk of significant monetary loss by not adequately insuring the items they take away with them, new figures have suggested.

Axa estimated more than £7 billion worth of electronic gadgets will be packed into suitcases this summer as tourists wish to remain close to their home comforts.

The organisation found the average adult vacationer will include £424 worth of kit in his or her packing.

This includes products such as MP3 players, cameras and camcorders - meaning the average holiday party has £738 of electronic devices contained in their luggage.

Of the £7 billion worth of belongings taken away, around £1.61 billion will be completely uninsured, with only 77 of travellers holding travel insurance.

A recent survey carried out by Bright Grey found millions of Britons will rack up debt this summer in order to take a vacation abroad, with 32 per cent of respondents claiming they are willing to put their financial security on the line to get away.

By Joe Shervin

A number of tenants may need debt help to enable them to pay their rents, new research has suggested.

According to the National Landlords Association (NLA), one-in-five property lenders have experienced renters being in arrears in the last three months.

During the second quarter of the year, 21 per cent of landlords had tenants unable to meet their payments, which represented only a small improvement on the 24.5 per cent recorded in 2009.

David Salusbury, chairman of the NLA, noted the problem is of serious concern for landlords in the UK.

The industry figure added: "It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy."

Recently-released figures from the Office for National Statistics revealed households in Britain are now facing elevated energy bills as domestic consumption has swelled over the last 40 years.

By James Francis

There are still fears Britain may be dragged into a double dip recession - meaning debt fears among consumers could soon rise.

According to Caxton FX, minutes from the Monetary Policy Committee’s latest meeting have failed to quash worries the nation may soon return to an economic crisis.

Members of the group voted seven-to-one in favour of keeping Britain’s interest rate at its current 0.5 per cent low.

This, the foreign exchange company explained, shows the committee believes the recession is over, but the prospect of a double dip is still a distinct possibility.

Tom Hampton, currency analyst at Caxton FX, noted: "A rise in interest rates now could put too much downward pressure on the already fragile recovery."

Chris Jenkins, co-owner of the Homeowners Advice Centre, recently warned any elevation in interest rates could push people over the edge of their financial wellbeing and added such a move could prove particularly troublesome for tenants, as landlords may be more inclined to increase rents.

By James Francis

The poorest members of society may soon be needing debt management help because of the measures brought in through the emergency Budget, it has been suggested.

Tim Nichols, press officer at Child Poverty Action Group, noted the plans introduced by chancellor George Osborne will hit those on lower incomes the hardest.

He explained the process could be particularly troublesome for larger families.

"The more children that you have in the family, the more the cuts will accumulate as many of the cuts such as the child benefit freeze are attached to children," the industry figure remarked.

Mr Nichols added the £150 rise in the tax credit does not seem to be an efficient method for tackling the problem in the longer term.

Campaign body Save Child Savings recently urged the government to not disband savings plans, while a cluster of charities, service providers and consumer groups have rallied in an attempt to keep the Child Trust Fund.

By Joe Shervin

People could be left needing debt help if their sheds are broken into, a new study has suggested.

An M&S Money survey found the average garden storage unit in 2010 contains £988 worth of property.

This is a £100 increase on 2009 calculations and 18 per cent of respondents admitted they frequently leave their sheds unlocked, while 49 per cent said they do so some of the time.

Just 12 per cent, moreover, felt their structures were secure enough to deter would-be thieves.

More than a third of those questioned noted lawnmowers are the most expensive item in the storage houses, while 28 per cent answered bikes.

Head of general insurance at M&S Andrew Ferguson advised homeowners to ensure their sheds are secure and their insurance cover is adequate.

Churchill Home Insurance recently warned of the financial loss that could be experienced by women who have their handbags stolen, as the content cost of such carry-cases may add up to nearly £2,000.

By Joe Shervin

Any increases to interest rates could result in a number of people slipping towards debt, it has been suggested.

Chris Jenkins, co-owner of the Homeowners Advice Centre, warned individuals may be forced "over the edge of their financial wellbeing" if such hikes were to take place.

The specialist was speaking in response to a report from Spareroom.co.uk, which revealed any escalation would render 22 per cent of landlords’ mortgages insufficiently covered by rents.

Mr Jenkins explained the situation is "particularly worrying" for tenants because costs may be raised by property lenders in an attempt to cover their bills.

Some people may even be forced to leave their home if it was subsequently repossessed, he added - meaning a shortage of rental properties in the market could follow.

The Spareroom.co.uk study discovered 41 per cent of landlords report rent from their tenants only just covers the monthly mortgage repayments on their properties.

By Joe Shervin