Latest articles from ClearDebt News

• Debt risk for those who borrow for holidays?

  2 Sep 2010

  Individuals are putting themselves at risk of developing debt problems because they continue to go on holidays they cannot afford. Research carried out by sunshine.co.uk has found 28 per cent of respondents borrow money for the exclusive purpose of getting abroad. A total of 51 per cent of those questioned admitted they had used a credit card to pay for their break, while 20 per cent asked family and friends for cash for this purpose. For those who are taking out unsecured loans in order to ensure they have a vacation, they could get into trouble if they cannot meet the repayments. If this pattern was to continue, then eventually they could be forced to consider bankruptcy proceedings in order to make a fresh start. While this process will bring a certain amount of restriction, with hard work, by the end of it consumers have the chance to start all over gain. Chris Brown, co-founder of sunshine.co.uk, said: “The fact that many would rather experience debt than go without a holiday is surprising, but it just proves how important a little respite from the pressures of everyday life can be.” He added people need to be careful they do not get themselves into trouble by borrowing more than they can afford. The specialist observed the interest accrued from using plastic to pay for things could be beneficial. “Searching for cheap holiday deals is often a far better way of saving the pounds,” Mr Brown remarked. His comments come after a study carried out by Sainsbury’s Finance revealed 1.28 million Britons will leave it to the last minute before booking their holiday. As a result, many of them will put it on a credit card, which could lead to financial problems in the future. A total of \u00A35.46 billion of summer holidays will be put on the plastic. Posted by James Francis Debt risk for those who borrow for holidays? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• IVAs to help debt-saddled Brits?

  2 Sep 2010

  More people may need debt consolidation methods such as individual voluntary arrangements (IVAs) as they continue to struggle with their repayments. According to statistics released by Credit Action, total UK personal debt at the end of July 2010 stood at \u00A31,456 billion. This figure is extremely worrying for some because the figure is higher than the amount the country produces over a 12-month period. And the Office for Budget Responsibility does not think the situation is likely to improve over the coming years. Predictions suggest by 2015 this figure will have risen to \u00A31,823 billion, which equates to a growth of \u00A3159 million each day. If this does bear true it will mean average household debt will stand at \u00A372,341. Total consumer credit lending to individuals at the end of July 2010 was \u00A3217 billion. The circumstances could also be compounded by the announcement there are 1,666 people being made redundant every day. For those who can no longer manage their repayments and feel they need help an IVA could be the answer. The method will help those who are trying to become debt free by offering them the opportunity to merge unsecured loans into a reduced-rate monthly payment. After five years, the debt is then typically seen as settled and people can then go on from there with a much healthier financial situation. With 1,000 people seeking some type of formal debt rescheduling every working day, it appears many have decided this type of option may be the best one for them. It comes after Karen Barrett, chief executive of unbiased.co.uk, remarked many consumers in the UK are keen to pay back the money they owe. Research by her company has revealed people are using savings to try and reduce the amount they are in arrears, as they seek to make their finances more manageable. Posted by Amy White IVAs to help debt-saddled Brits? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Retirees may need debt consolidation

  1 Sep 2010

  Retirees may have to cut back on their lifestyle choices as they struggle financially, it has been discovered. According to MGM Advantage, 4.5 million people who have given up working have had to scale back on their spending, while 601,000 individuals who gave up their jobs have returned to some form of work. It means consumers may have to seek debt consolidation methods if they wish to get their finances under control again. The study has found there are major discrepancies between the expectations of how lifestyles will be for those who are of pensionable age and the reality. A total of 57 per cent of those questioned said they think they will take more holidays when they give up their job, but in reality almost 33 per cent have had less. Those who are looking to get debt free have been left in the situation whereby they have to curtail their spending, as they cannot afford some of the luxuries they were expecting to. The report added the over-65s is the age group most likely to cut back on the use of utilities such as gas and electric because of the cost of them. Craig Fazzini-Jones, director at the organisation, noted there are too many “unrealistic expectations” surrounding retirement at the minute. He added more people need to realise they will face “a worse standard of living and difficult financial decisions”. The specialist observed: “You cannot start preparing for retirement too soon, whether that means paying into a pension, building a pot of savings or talking to a professional for advice.” His comments come after Andrew Hagger, a spokesman for Moneynet.co.uk, recently stated it is important couples know the financial standing of each other. He added without this information, it can be much harder for people to plan effectively for the future. By James Francis Retirees may need debt consolidation is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• ‘Debt concerns exacerbated’ through motor insurance cheats

  31 Aug 2010

  Motor insurance cheats are helping to pile on debt woe for people in Britain, a new study has suggested. Carried out by The Co-operative Insurance, the research indicated law-abiding drivers are footing the bill for fraudulent motorists for one day out of every week. The practice is costing individuals in the UK a combined total of \u00A31.25 billion every year. It was discovered each driver has to fork out around \u00A350 on every policy in an attempt to counter dishonest claims and those filed for accidents caused by people taking to the road without insurance. It is the equivalent of 52 days cover under an annual policy and the organisation noted more than 23,000 individuals are killed or injured by uninsured motorists every 12 months. Moreover, almost one-in-four (23 per cent) of those quizzed confessed to having being behind the wheel in an illegal manner in the past year. This included driving without insurance, an MOT or a license. The Co-operative Insurance warned UK residents they face a \u00A3200 fixed penalty notice and six penalty points on their license if they are caught driving without insurance. Tim Franklin, chief operating officer at The Co-operative Financial Services, said: “Millions of people are deliberately flouting the law by not insuring their cars at massive cost to honest road users and the wider insurance industry posing an unnecessary and unjustified risk.” Aviva recently advised bicycle owners to be careful with their two-wheelers. The organisation carried out a survey of more than 2,000 cyclists and discovered around one-third of them have had their vehicles stolen at one time or another. By Joe Shervin ‘Debt concerns exacerbated’ through motor insurance cheats is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Home improvement costs adding to debt fears?

  31 Aug 2010

  A number of people may be adding to their debt fears by borrowing money to finance home improvements, new research has suggested. According to a study carried out by Sainsbury’s Finance, one-in-five (20 per cent) of all personal loans were taken out to pay for work done on properties in the first half of 2010. The report showed individuals in Britain are continuing to invest heavily in their houses despite challenging economic conditions. It was revealed the figures showed almost no decline from those registered in 2009 (20.7 per cent). However, there was a 47 per cent increase in the number of people using the cash they borrowed to fund DIY projects alone between 2007 and 2009. In the first six months of 2010, such work on dwellings accounted for 19.5 per cent of the total value of personal loans in the UK, but the average value of these loans escalated by 12 per cent between 2009 and the first half of this year – rising from \u00A38,237 to \u00A39,225. More than \u00A33.2 billion was taken out in loans to pay for home improvements across 2009, the organisation estimated. It added the value is set to be similar in 2010 if current trends continue. A significant increase in these types of loans was recorded between 2008 and 2009, elevating from 15.8 per cent of all loans to 20.7 per cent. According to a recent survey carried out by Cocompare.com, 41 per cent of British consumers are concerned their financial position is in a worse state than it was 12 months ago. By Amy White Home improvement costs adding to debt fears? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Brits eager to repay their debts?

  27 Aug 2010

  People in Britain may soon seek debt management help as it has emerged many individuals are keen to pay back what they owe. This is according to new research carried out by unbiased.co.uk, which found UK residents are dipping into their savings in an effort to relieve themselves of debt. The website warned this behaviour was last seen at the beginning of the recent financial downturn and could be a result of economic reports suggesting a double-dip recession. According to the study, Brits have slashed their rate of savings and are currently paying back more debt than they are borrowing – a trend that was last witnessed in the fourth quarter of 2008. People are currently repaying seven pence for every \u00A31 they saved in the second quarter of 2010, with the amount of cash placed aside in this period falling by \u00A37 billion when compared with the first quarter of this year. In quarter two, individuals repaid a combined \u00A31 billion over and above what they borrowed. However, in the final quarter of last year, Brits acquired an additional \u00A316 billion to the overall debt as they took out 66 pence for every \u00A31 saved. Karen Barrett, chief executive at the website, noted: “For the first time since 2008, consumers are now paying off more debt than they’re borrowing – however this has inevitably also resulted in a drop in savings levels.” Recent figures from PayPal’s annual UK Online Retail Report revealed many Brits have turned into bargain hunters, with 88 per cent of consumers admitting they regularly seek discounts and special offers. By Joe Shervin Brits eager to repay their debts? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Bike thefts ‘could worsen debt fears’

  26 Aug 2010

  A number of people may soon see their debt fears worsen as bike thefts are on the rise. According to new research from Aviva, many of the expensive cycles are being stolen from a number of hotspots. More than 2,000 bike owners took part in the survey and it has been revealed around one-third of cyclists have fallen victim to theft. Of these individuals, eight per cent stated their two-wheeler has gone missing as many as three times. The Aviva Cycle Security project saw a bicycle placed in different locations and only protected with poor security techniques. Out of the five bikes left in wait, three were pinched within five hours and one had been taken in a matter of minutes. A cycle left outside a shop was stolen in less than 20 minutes – a fate experienced by 21 per cent of cyclists. Within four hours a bike left locked to a parking meter was swiped. This has happened to ten per cent of bicycle owners, while 15 per cent have suffered one going missing outside a home – which occurred in under five hours during the experiment. The report found 13 per cent of bike riders have left their vehicle unattended while performing a quick errand, 12 per cent left it locked to a small post and 17 per cent discarded their bike out of sight and unlocked. Ian Coull, household claims manager at Aviva, noted the average price of replacing a two-wheeler is around \u00A3400. M&S Money recently advised holidaymakers to ensure their houses are adequately secured before heading off on their travels. By Amy White Bike thefts ‘could worsen debt fears’ is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Back to school spending to increase debt concerns?

  26 Aug 2010

  The debt concerns of many parents in the UK may soon be heightened because of increased spending as their children head back to school. With the summer holidays drawing to a close, the new Cost of a Child study carried out by LV= showed mothers and fathers will shell out a combined \u00A3709 million on kitting out their youngsters for the year ahead. Moreover, this total only includes the basics, such as uniforms, stationery, coats and sportswear. It means the average pupil will have approximately \u00A3122 spent on them on school-related necessities. And this sum rises to \u00A3139 for secondary school aged children, while for infants it stands at \u00A396. Geographically, families in London will have to dig deepest into their pockets as they will need to fork out \u00A3139 per child. Although the nation remains in the grip of economic uncertainty, almost half of parents (46 per cent) said they expect to spend more cash this time around than they did at the beginning of term in 2009. And with this additional outlay, almost one-in-two (48 per cent) admitted they are feeling the financial pressure of having to pay out “excessive amounts” for their offspring. This was especially prevalent in the North East, where 64 per cent noted they were experiencing the monetary strain. Head of protection at the organisation Mark Jones commented: “\u00A3122 is a lot of money for parents to spend kitting kids out to go back to school, and that’s just one small part of the expense of raising a family.” A recent study by Family Investments revealed living costs for older students are currently on the rise. By James Francis Back to school spending to increase debt concerns? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Female fashion fixation to result in greater debt help need?

  25 Aug 2010

  An increasing number of women may require debt management help as it has been discovered shopaholics are facing financial struggles. New research carried out by uSwitch.com found females have racked up debts of more than \u00A313 billion because of their desire to own the latest in designer clothing. The investigation highlighted four million women in Britain claim to be a shopaholic – each with an average personal shopping debt of \u00A33,353. This amount is nearly three times above the national average of \u00A31,147. Despite the tough economic climate, girls are not relenting in their clothes shopping, the website warned. It discovered gals spend an average of \u00A32,436 a year on garments, grooming and accessories – which equates to 51 per cent of their total disposable income. Although 33 per cent of the female population stated the credit crunch caused them to reduce their spending on the high street, 23 per cent admitted their purchasing practices have not altered at all. Moreover, four per cent claimed they have increased the amount they spend on threads in a bid to cheer themselves up. Just under half (41 per cent) of female shopaholics said they would buy an item they really desired, even if they knew it would take them past their overdraft limit, while just 14 per cent admitted they budget for a month’s outgoings in advance. Ann Robinson, director of consumer policy at the portal, noted: “Despite the financial constraints, women have carried on copying the lifestyles and shopping habits of their idols and ignoring the debt they are racking up in the process.” PayPal’s recent UK Online Retail Report showed 88 per cent of consumers search for discounts or promotions while shopping. By Amy White Female fashion fixation to result in greater debt help need? is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.
• Summer thefts ‘could increase debt concerns’

  24 Aug 2010

  Holidaymakers could see their debt concerns worsen this summer by leaving their homes unattended, it has been suggested. M&S Money has urged Britons heading abroad to adequately secure their homes and prevent them being vulnerable to thieves. A survey carried out by the organisation found more than two-thirds (69 per cent) of travellers are planning on leaving their property for at least one night in August. Of these people, more than half (51 per cent) admitted they will be leaving their place of residence empty. Moreover, almost a quarter (24 per cent) of such households said they would not ask a trusted friend or neighbour to check on their abode while they were absent. The investigation revealed more than two-thirds (68 per cent) of individuals living in Britain leave spare keys with other people who do not live at their property, while 17 per cent stated they have concealed keys outside their homes at some point while they are away. Andrew Ferguson, head of general insurance at the organisation, noted: “With August being one of the most popular months for people to go away, we would urge homeowners to take appropriate steps to ensure their home is secure while they enjoy their holidays.” M&S Money added there are a number of tips people could follow to help minimise the risk of a house theft while abroad. These included advising a friend when going away, asking somebody to check the property, not hiding the keys outside the residence and cancelling any regular deliveries. Endsleigh recently advised students heading to university to look after their belongings after finding the average scholar will be taking around \u00A34,000 worth of possessions when they leave home. By Amy White Summer thefts ‘could increase debt concerns’ is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2010, All Rights Reserved.

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