Debt Consolidation Advice, Help and News from Debt Advisers Direct
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Reuters: Pay ‘is a key political issue’
Mon, 6 Oct 2008 10:47:42 GMTMedian pay deals in Britain have risen, says Reuters, citing figures from independent research organisation Incomes Data Services.
According to Reuters, median pay deals in Britain ‘rose to 3.8 percent in the three months to August’.
Other indicators, however, suggest that ‘pay pressures remain subdued’, since employees’ bargaining power has been reduced as a result of today’s economic troubles.
Pay ‘is a key political issue in Britain at a time when rising living costs are squeezing households’ disposable income’, says an article on Reuters’ website.
“As the cost of living increases, ” said a spokesperson for debt consolidation experts Debt Advisers Direct, “it’s only natural that people want their salaries to increase. However, many companies, worried about their own finances, are reluctant to grant significant pay rises.”
“In some cases, borrowers could reduce their monthly expenses with a debt consolidation loan, which could simplify their finances as well as bringing their monthly debt repayments down to an affordable level.
“Consolidation loans, however, are not always the answer – it’s important that borrowers talk to a professional debt adviser who can help them decide whether they should consider other debt solutions.”
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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements).Financial gloom may encourage rate cut
Fri, 3 Oct 2008 15:54:28 GMTA recent survey of manufacturers may make a cut in the Bank of England’s base rate more likely, the Financial Times reports.
Measuring output reported by purchasing managers, the Chartered Institute of Purchasing and Supply/Markit report on manufacturing returned a reading of 41 for September, its lowest reading since the survey began in January 1992.
Down from 45.3 in August, this ‘represents a marked shift to pessimism and falling sales’, according to the Financial Times.
Increasing economic gloom may encourage the Bank of England to lower its base rate in a bid to stimulate the economy – something which may interest borrowers thinking of consolidating their debts.
Since the interest rates on various kinds of debt (from mortgages to debt consolidation loans) can be linked to the base rate, any rate cut by the Bank of England could help people in debt, reducing both the amount they pay on some of their existing debts and the cost of a potential debt consolidation loan.
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Debt Advisers Direct offer a range of debt advice and debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements).Increased longevity `may spell debt for UK pensioners`
Fri, 3 Oct 2008 11:28:14 GMTAs people continue to live for longer in the UK, more must be done to avoid personal finance problems for those who have retired from work, the Life Trust Foundation has said.
During a recent seminar hosted by the organisation, minister for pensions reform Mike O`Brien said: "People are living longer but some are not saving enough for later life. It is one of the biggest challenges facing us."
This may put consumers at risk of debt problems in their post-work years.
However, Mr O`Brien added that the government is in the process of reforming the pensions system in order to avert a crisis in the future.
Meanwhile, Lord Hunt of Wirral, the chairman of the Life Trust Foundation, added that a 50-year-old today has a one in four chance of reaching the age of 95.
He went on to say that these "extra years" can be very expensive when expenditure on essentials such as healthcare are taken into account.
Currently applying for charitable status, the Life Trust Foundation aims to raise public awareness of the financial implications of increased longevity.
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Debt Advisers Direct offer a range of debt advice and debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements).
`More people ringing Samaritans over debt worries`
Thu, 2 Oct 2008 09:43:59 GMTAn increasing number of consumers in the UK are calling the Samaritans over concerns about debt, it has been suggested.
According to a BBC report, the organisation - which provides confidential emotional support to those in distress - has seen an increase in calls of 25 per cent compared to last year as a direct result of the credit crunch.
Shaun Kelly, outreach and communications co-coordinator at the central London branch of the organisation, said: "Debt is known to contribute to emotional distress and sometimes people in financial difficulty can consider suicide as a way out of the situation that they are in."
He added that is it "really important" for people experiencing personal finance problems to talk to someone about their situation, rather than keep it to themselves.
Meanwhile, pawnbroking firm Albermarle & Bond recently reported a rise in profits of 40 per cent compared to last year as consumers in the UK who are unable to access credit due to tighter lending conditions increasingly turn to selling their possessions.
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Debt solutions experts http://www.DebtAdvisersDirect.co.uk/ provide debt consolidation loans, debt management and IVAs.
Brits `concerned about retirement finances`
Wed, 1 Oct 2008 11:22:00 GMTThe confidence felt by Britons concerning their standard of living in retirement is falling, a new survey has found.
Conducted by Alliance Trust, the research found that 43 per cent of the population now feel they will struggle with their personal finances after giving up work.
This represents a decrease in confidence compared with last year, when 40 per cent reported such concerns.
In addition, it was discovered that women are more worried about the prospect of financial difficulties, potentially including getting into arrears on debt repayments, than their male counterparts.
Whereas 49 per cent of the females questioned reported concerns about their post-work finances, only 36 per cent of men did likewise.
Commenting on the figures, Steve Latto, pensions development manager at Alliance Trust, said: "In the current economic conditions, consumers are taking a much more pessimistic view of their retirement prospects and are losing confidence about being able to provide for a comfortable retirement life."
Last week, David Black, principal consultant of banking at Defaqto, described equity release as a feasible option for pensioners struggling in the light of current economic conditions.
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Debt Advisers Direct offer a range of debt solutions, including debt management plans, debt consolidation and IVAs. For more information, click here
Millions of children in poverty
Tue, 30 Sep 2008 13:23:35 GMT98% of children in some areas are in families classed as ‘struggling’, according to the Campaign to End Child Poverty – a total of 5.5 million across the UK.
“There are currently 3, 900, 000 children in the UK that are classed as actually living in poverty, ” said Campaign director Hilary Fisher, according to the BBC.
A coalition of well over 120 organisations including Barnado’s, Save the Children and the NSPCC, the Campaign classes households as being in poverty if they live on less than £10 per person per day.
“As the Campaign points out, ” said a spokesperson for debt consolidation experts Debt Advisers Direct, “poverty has a profound effect on every aspect of a child’s life.
“At Debt Advisers Direct, we wholeheartedly support the Government’s promise to halve child poverty by 2010 – and end it by 2020.”
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Debt Advisers Direct offer a range of debt advice and debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements)Mortgage approvals `hit by continued market uncertainty`
Tue, 30 Sep 2008 11:15:05 GMTThe number of home loans being approved in the UK remains low as a result of the ongoing uncertainty surrounding house prices.
This is according to the Building Societies Association (BSA), which suggested that over 50 per cent of people recently questioned stated that the prospect of future house price falls is acting as a barrier to investing in property.
Land Registry figures cited by the association reveal that homes in England and Wales fell in value by 4.6 per cent last month, potentially suppressing mortgage demand.
It was also found that house prices in London fell by 3.2 per cent in August.
Commenting on the market, BSA business economist Andrew Gall said: "Activity in the housing market remains depressed, so, although the figures for both net approvals and net lending are better than for last month, they still remain low."
Meanwhile, BSA figures suggest that building society gross lending in August of this year stood at £2, 770 million, compared with £4, 770 million over the same month in 2007.
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Debt solutions experts http://www.DebtAdvisersDirect.co.uk/ provide debt consolidation loans, debt management and IVAs.
Banks should save ‘in times of boom’
Mon, 29 Sep 2008 16:50:24 GMTEconomic crises could be avoided if banks put money aside for a rainy day, said Sir John Gieve, Bank of England deputy governor.
“We need to create reserves based on macroeconomic factors, which can be drawn down as the cycle turns down and have to be replenished on the upswing when profits are high, ” he said.
A practice such as this, the Guardian reports, could ‘prevent banking crises like the current one pulling down whole economies in their wake’.
Today’s economic troubles are pushing many into debt, and preventing many others from accessing the debt consolidation loans which could help them manage their debt and regain control of their finances.
But greater reserves could dramatically reduce the impact of any credit crunch by making banks less reluctant to grant debt consolidation loans, mortgages and other forms of credit.
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Debt Advisers Direct offer a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). To find out more, contact one of our expert debt advisers.Equity release ` feasible option for struggling pensioners`
Mon, 29 Sep 2008 11:55:30 GMTEquity release should be seen as a feasible option by pensioners struggling in the light of current economic conditions, an expert has said.
David Black, principal consultant of banking at Defaqto, made his comments in response to a guide issued by consumer watchdog Which? that advised consumers to see such a move as a last resort.
According to Which?`s report, equity release schemes can be expensive and inflexible and can leave people without enough money left to fund alternative accommodation if their circumstances change.
However, Mr Black stated: "In an age of financial shocks, inadequate pension provision, low annuity rates and burgeoning levels of personal debt it seems somewhat hasty to arbitrarily downgrade one of the possible solutions."
He went on to say that while equity release is not suitable for everyone, it is an "appropriate solution" for many consumers, adding that it should be considered alongside other options as a possible source of retirement income.
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Debt solutions experts Debt Advisers Direct (www.debtadvisersdirect.co.uk ) provide debt consolidation loans, debt management and IVAs.
Energy companies ‘blocking price comparison’
Fri, 26 Sep 2008 14:16:41 GMTSeveral energy companies are blocking price comparison websites from accessing their best deals, it has emerged.
Price comparison site Fool.co.uk say that a number of companies are updating their tariffs several days after the prices are announced on their own websites, in an apparent attempt to limit the amount of customers getting the cheapest deals.
This is in conflict with Energywatch’s Confidence Code, which advises suppliers to ensure all their tariffs are listed on comparison sites.
The main issues occur when companies are slow to update prices on existing tariffs, meaning customers may be misled as to what the best deals are at any given time.
A spokesperson for debt management company Gregory Pennington said: “This highlights a lack of honesty amongst energy suppliers. In the current climate, finding the cheapest energy deal is important, as it can save a lot of money and help to keep people out of debt.
“We recommend anyone using price comparison websites to contact the supplier beforehand to make sure the plan they choose is being offered as advertised.”
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Debt Advisers Direct offer a range of debt solutions, including debt management plans, debt consolidation and IVAs. For more information, click here.Company reduces rate of home loans
Fri, 26 Sep 2008 10:11:44 GMTA financial services provider has reduced the costs of some of its mortgages, it has been revealed.
In news that may be welcomed by consumers experiencing personal finance issues, Britannia has announced it is cutting its two- and ten-year fixed-rate mortgages, as well as its buy-to-let range and its flexible and offset packages.
Commenting on the move, Tim Franklin, managing director of member business at Britannia, said: "Last week we introduced a number of cuts to some of our mortgages, now we have brought the rest of our mortgage range in line."
He added that the firm has changed the loan-to-value bands across its whole range of home loans in an effort to provide consumers with more choice.
Recently, consumers were urged by uSwitch.com to make the most of cuts in personal loan rates introduced by Moneyback Bank.
The firm decreased the interest it charges on loans valued between £7, 500 and £15, 000 from 8.4 per cent to 7.8 per cent, in a move described by uSwitch.com as part of a yo-yo strategy.
47% considering car sharing
Thu, 25 Sep 2008 10:40:31 GMTHigh fuel costs are forcing almost half of the population to consider car sharing as a means of cutting down on expenses, a new report suggests.
The report by the AA suggested that 47% of the population are considering car sharing, although only 11% actually do so more than once a week.
“Car sharing, ” said Edmund King, president of the AA, “is something that we really believe in – not only is it a good way to reduce emissions and congestion on the road, but can also save on motoring costs.”
A spokesperson for Debt Advisers Direct said that car sharing is a good way of reducing outgoings, but it may not always be enough to keep people out of debt.
“There are a lot of financial pressures on consumers at the moment, with many people being pushed into debt, ” she said. “If cutting back on things like car costs and non-essential spending is not enough, it’s time to seek expert debt advice.”
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Debt Advisers Direct offer a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). To find out more, contact one of our expert debt advisers.`More Brits applying for personal loans`
Wed, 24 Sep 2008 11:18:18 GMTIn the light of growing personal finance difficulties, increasing numbers of UK consumers are opting to take out personal loans.
This is according to Mark Lyonette, chief executive of the Association of British Credit Unions, who stated that members of the organisation have seen an increased demand for such financial products among the people they serve.
He said: "Credit unions have been affected in different ways by the reduction in supply of consumer credit.
"A number have seen a sharp increase in people approaching them for loans."
In other industry news, the Thrifty Scot recently advised people experiencing debt problems that they may be able to benefit from a homeowner loan, which enables them to use the security of any property they own as collateral for the money they borrow.
According to the organisation, even consumers with a bad credit rating and those who have declared bankruptcy or have entered into an Individual Voluntary Arrangement (IVA) may be able to secure such a loan.
Mortgage rates `to rise`
Wed, 24 Sep 2008 11:14:15 GMTThe rate of interest charged on home loans is set to increase, it has been suggested.
According to Fool.co.uk, as the rate at which banks lend to each other - known as the London Interbank Offered Rate (Libor) - rises, so too will mortgage rates for consumers.
The website suggests that since the banking problems of last week, Libor has increased to above six per cent.
David Kuo, head of personal finance at the website, commented: "Libor is a better guide to the costs of fixed-rate and standard variable-rate mortgages than the Bank of England base rate."
He therefore urged consumers who are about to come to the end of a fixed-rate mortgage deal to apply for a new one immediately before the price of home loans rises again in accordance with Libor rates.
Meanwhile, figures produced recently by the Co-operative Bank and Places for People found that first-time buyers in the UK looking to secure a property require average savings of £19, 100 in order to get a mortgage.
Consumers `will be hit by reduced credit`
Tue, 23 Sep 2008 11:27:43 GMTConsumers in the UK looking to secure loans will be hit by the clamp-down on credit currently being seen across the world`s financial markets, an expert has said.
Writing in the Observer, Heather Stewart stated that mortgages have become more expensive and businesses are also finding it increasingly difficult to raise loans.
She went on to say that the majority of economists believe the current banking problems are only the beginning of a prolonged period of weakness.
Meanwhile, Howard Archer, UK economist at Global Insight, added: "Obviously, the credit crunch has deepened. The banks are going to be even more reluctant to lend and that`s going to make mortgages even more expensive."
Research published earlier this month by Legal & General suggested that, of those homeowners who were able to take out mortgages during the last quarter, 35 per cent selected variable-rate products, representing a rise of 11 per cent in the popularity of such products over the previous three months.
70% of Brits `without unsecured loans`
Tue, 23 Sep 2008 11:26:03 GMTMany people in the UK do not have unsecured loans, the findings of a recent study indicate.
Conducted by Fairinvestment.co.uk, the research suggests that seven in ten consumers are without such loans.
Meanwhile, it was also found that, of those who do have credit card and store card debts, 60 per cent owe less than £1, 000.
Commenting on the findings, Fairinvestment.co.uk spokesman Matt Edwards said: "This is good news as rumours of a recession circulate, people are going to need all the spare cash they can get their hands on, so large loan and credit card repayments could cause problems."
Meanwhile, homeowner loans were recently suggested as one possibility for consumers experiencing debt problems in Britain.
According to the Thrifty Scot, even people who have a bad credit rating, as well as those who have declared bankruptcy or have entered into an individual voluntary arrangement, can secure such a loan.
`Nearly £20k` needed to secure a mortgage
Tue, 23 Sep 2008 11:22:06 GMTFirst-time buyers in the UK looking to get a foot on to the property ladder require savings of £19, 100 in order to secure a mortgage.
This is according to research carried out by The Co-operative Bank and Places for People, which also found that 91 per cent of people questioned would be prepared to make sacrifices in order to buy a home.
In addition, the study revealed that half of the respondents - some of whom may be experiencing debt worries - were willing to forego foreign holidays in order to save money for a property.
"Many more people are being entrepreneurial and making sacrifices in a bid to try and claw their way onto the property ladder including cutting down on eating out, holidaying in the UK rather than abroad and swapping supermarkets to drive down their food bills, " stated Victoria Drummond, operations manager for Ownhome.
In other property news, potential mortgage holders were recently given words of encouragement by the National Association of Estate Agents, which said that buying a home should still be seen as a sound investment as the market will pick up in the next year or two.
Borrowers urged to take advantage of good mortgage deals
Mon, 22 Sep 2008 11:39:12 GMTConsumers in the UK have been urged to take advantage of attractive mortgage deals before they are withdrawn.
Commenting on the current market volatility, Melanie Bien, director of Savills Private Finance, said that with the recent collapse of the Lehman Brothers and other well-publicised banking problems, home loans are likely to become increasingly expensive.
She said: "Confidence in the financial markets has once again been shaken and if this continues, with more banking names dragged into it, this will discourage lenders from lending to one another, pushing up the cost of borrowing in the money markets, " the Times reports.
In turn, this could result in higher mortgage rates, which may be particularly unwelcome news for consumers already struggling with high level debts.
Recently, uSwitch.com advised UK consumers to take advantage of cuts in personal rates introduced by Moneyback Bank before they are withdrawn from the market, saying the reductions are part of a yo-yo strategy and prices are likely to rise again.
Consumers stretching personal finances in DIY stores
Mon, 22 Sep 2008 11:34:31 GMTConsumers in the UK may be stretching their personal finances by splashing out in DIY stores.
According to research conducted by payments association APACS, £11.9 billion was spent on credit and debit cards in such retail outlets between August 2007 and July of this year.
Meanwhile, £5.3 billion of this total was paid for using credit cards, potentially resulting in bad credit ratings for consumers who could not afford their repayments.
The average spend on a credit card in DIY shops was identified as £69.36.
"Plastic cards are one of the most popular forms of payment in the UK and the last decade has seen a rapid rise in their popularity, with consumers enjoying the ease and convenience [such] cards bring, " stated Sandra Quinn, director of communications at APACS.
Recently, Andy Cobb, Debtline manager for the Citizen`s Advice Bureau in Norwich, suggested that there has been a significant increase in people coming to the bureau with debt problems in recent times, the Norwich Evening News reported.
New debt law could increase repossessions
Fri, 19 Sep 2008 11:19:12 GMTA new law making it easier for banks and other lenders to take action against people struggling with debt could result in a sharp increase in repossessions.
The law will give creditors the potential to convert unsecured debts into secured debts, putting expensive assets such as the borrower’s home at risk of repossession.
The law is a change to the Tribunals, Courts and Enforcement Act 2007, which has been passed into law but is currently not in effect.
The Lord Chancellor is expected to set a minimum debt – likely to be around £1, 000 – under which creditors are not able to reclaim debts in this way.
A spokesperson for Debt Advisers Direct said: "This should act as a stark warning to people in debt to take action now.
"There are a number of debt solutions available for a range of different situations, and we advise people in debt not to ignore it. A debt consolidation loan or debt management plan, for example, can help people get out of difficult situations without the stress of court action."
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Debt Advisers Direct offer a wide range of debt help and advice. For more information, contact one of our expert debt advisers now.
www.debtadvisersdirect.co.uk
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