Many homeowners with “interest-only” mortgages are facing debt management worries, according to the Financial Services Authority (FSA). Figures from the FSA show that many of the four million interest-only mortgage holders haven’t made sufficient provisions to repay the amount of their capital sum once the loan expires, and run the risk of developing serious debt [...]
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Category Archives: Blog – Expert Opinion
Do secured loans cause debt management issues?
In the UK there are approximately 150,000 people with a secured loan (often called homeowner loans or second-charge loans), but these have been under fire recently and have been blamed for causing debt management issues. These type of loans exist alongside your current mortgage but they are also secured against your house. This means that [...]
Credit card debts grow as shoppers trapped
Shoppers spending on their plastic are being trapped by the companies that take money from their cards each month, adding to the overall credit card debt owed. The problem starts when companies set up ongoing payments that allow them to dictate the ongoing payments taken from the card, but which aren’t stopped when the customer [...]
Doorstep lenders creating debt management issues
Calls to regulate the practices of doorstep lenders have been made after research by charity Barnardo’s found that vulnerable families suffered from ongoing debt management issues after being targeted. They call for stricter regulations to curb “extortionate” interest rates and prevent vulnerable families from being targeted by companies. Following its report Counting on Credit, the [...]
Rising council tax bills increase debt management issues
Council tax bills are set to increase next year to a record £1,500, causing widespread concern over household debt management issues. Over the eleven years that the Labour government have been in power, council tax bills have more than doubled from an average of just £688 – to a whopping £1,500. This has sparked furious [...]
Forced part-time work putting pressure on debt management
The recession has forced almost a million people to work part-time having failed to secure full-time unemployment, causing debt management worries to grow. According to official figures, nearly one million people have needed to seek part-time jobs in the face of increased difficulty to land full-time work. During the last twelve months, over a quarter [...]
Jobless increase leaves more needing debt advice
News today that the number of people becoming unemployed has increased yet again has sent shock waves through the financial help sector. Many more consumers will be in financial difficulty and in need of debt advice in order to cope with the strain of unaffordable personal loans, credit card debt and other household expenses. There [...]
Debt problems not helped by "excessive" arrears fees
The debt problems of many homeowners struggling to keep up with their mortgage payments haven’t been helped by excessive fees charged for going into arrears, according to the Financial Services Authority (FSA). Four high-profile lenders are being scrutinised by the FSA for charging excessive fees to borrowers who are in arrears and who may be [...]
Landmark case triumph following dual debt problems
A Shropshire couple won a landmark case which ruled that they could remain in their home after the sale and rent back firm they had used, following their own debt management issues, encountered debt problems. Mr and Mrs Jackson from Shrewsbury, were forced to enter a sale and rent back scheme in 2005 after their [...]
Credit card debt advice up in the North-East
According to figures released by the Citizens Advice Bureau, debt advice is now being sought by a third more consumers in the North-East than during 2008. Unaffordable credit card debt is the main contributory factor, as well as excessive personal loans, store cards and other household bills. The CAB confirmed that debt enquiries during March [...]
Debt problems for quarter of homeowners who can’t get mortgage
The inability to get a new mortgage for around one-in-four homeowners means that debt problems could rise as interest rates increase. Stricter lending criteria from lenders has meant that almost a quarter of all homeowners are unable to secure a mortgage, according to a report by The National Association of Estate Agents (NAEA). Their figures [...]
Worst of recession over: bye to debt problems?
The worst of the recession in the UK is behind us, according to a report by the British Chambers of Commerce (BCC), but debt problems may still rise for the growing number of unemployed. Their study found that confidence levels had seen “welcome progress” from the 5,600 companies surveyed between April and June, however they [...]
CBI plan helps debt management
Rather than face redundancy and risk the chance of facing debt management problems caused by a lack of income, the Confederation of British Industry (CBI) has proposed that workers stay at home on reduced wages. The plan is designed to help companies through the downturn by offering an “Alternative to Redundancy”, which would see the [...]
Credit card debt management working
According to data released by Credit Action, the financial charity, the level of UK credit card debt is rising more slowly this year, compared to last. As the effects of the global financial crisis begin to filter through to the economy, consumers have reduced their dependence upon plastic, or adopted a debt management strategy that [...]
Pensioners debt problems worsen as Bankrupcy numbers climb
The number of retired people struggling with debt problems has rocketed, as the number of bankruptcies has soared by over 160 per cent in the last five years, according to latest research. The report by accountants Wilkins Kennedy, found that personal insolvencies in this age group reached 983 in 2004 and climbed to 2,595 in [...]