Dubai is a country associated with extreme wealth due to oil and hyper-tourism, but in recent times, many of the luxurious properties built by state-owned companies such as Dubai World have struggled to sell. Houses worth up to $2 million less than three years ago are still lay dormant and can be snapped up for $250,000. Granted that is still a lot of money, but the economy in Dubai isn’t geared to make a loss on these projects.

Dubai World have announced that they will have to delay the repayment of some of it’s debt, causing the markets in Asia to drop steeply. Some financial forecasters are worried that the weakened state of the European economies will allow the credit crunch to return. If this were to happen, global demand would dip again and commodities including oil would fall in value.

The anticipatory effect has caused a fall in the price of a barrel of crude across the world, down $1.26 in London and almost 5% in the US. Share indexes in Germany, France and the UK opened down 1%.

It is difficult to see exactly how we will be affected in the UK, however, chances are this will slow any recovery being made across the country and may make the debt problems of average Britons worse.

Ivan Cooper, Chairman at Chiltern Debt Management said: “This is a very worrying situation, just as the country starts to look like it is turning a corner, something seeming unrelated starts to cause such concern.

“For those whose finances are already stretched, this could be a serious worry and seeking advice from a reputable company – like Hamilton Locke, The Debt People or Chiltern.”

In a worst case scenario, household bills could rise upto 60 per cent by 2016, driving energy bills to the £2,000 mark for the year.

This came following a review of the energy market in Britain by watchdog Ofgem.

Currently the average household energy bills total £1,247 annually, but according to the Ofgem report this could soar to £1,995.

A spokesperson for utility switching service Energyhelpline, said: “If Ofgem’s worst case comes true, we are looking at the £2,000 a year energy bill.

“A rise of 60pc is credible, unfortunately, especially for electricity. A lot of generating plant is about to be replaced with greener technology.”

Ivan Cooper, Chairman at debt advice organisation Chiltern, said: “There are already a record number of households who are struggling to manage their finances in the current climate, resulting in more people seeking help with their debt management issues.

“A more sensible option would be to seek impartial debt advice from a reputable provider, as soon as households feel they may be unable to maintain any current commitments.”

Across the country the number of burglaries has risen, as they also did during previous recessions in the 1970s and early ’80s.

Earlier this year the British Crime Survey revealed that opportunist crime had risen, with the first rise in domestic burglary for six years, along with a 25 per cent rise in pick-pocketing and snatch thefts.

Worryingly though is that the national figure hides double-digit rises in burglaries amongst rural forces, such as a 16 per cent rise in Lincolnshire, 20 per cent in Cambridgeshire and 25 per cent in North Wales.

Some boroughs around the capital were also amongst the worst affected, with Croydon and Lambeth seeing burglary rates up 29 per cent and 27 per cent respectively over the last six months.

In public, Police officials are reluctant to blame the recession for the surge in crime, however many senior officials are in little doubt that debt problems and the rise in thefts are inextricably linked.

Metropolitan Police Commander, Mark Simmons, said: “A relatively small number of (prolific) offenders can contribute to short term spikes in burglary.

“I am not sure we can be certain that the effects of the recession have driven people to commit more acquisitive crime in this period. Whatever the cause, it is our job to chase burglars down.”

Debt advice organisations have reported an increase in the number of enquiries they have received during the downturn, as people seek alternative ways to get out of debt.

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Rather than turning to crime, there are many options available to people struggling to make ends meet that can help them to get out of debt.

“Quite often any problems with loans and credit card debts can be avoided by seeking some impartial advice from a reputable organisation.”

A report by the Bank of England suggests that lenders will enforce stricter limits on those they give money to and reduce limits on plastic to reduce the amount of credit card debts racked up in the run up to Christmas.

The Bank’s Credit Conditions Survey also warned that more people would default on personal loans, as the profits made by banks had risen on credit cards and unsecured loan products.

This news comes despite signs of a recovery in the economy, as house prices and mortgage approvals have risen since the low levels seen during the height of the credit crunch.

Paul Samter, economist at the Council of Mortgage Lenders, said: “There are encouraging signs that households are coping better than expected with difficult conditions. Despite this, however, we still expect payment problems to increase in the coming months, given the weak economy and jobs market.”

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Billions of pounds of taxpayers’ money has already been pumped into some of the biggest banks in Britain, yet lenders still seem relunctant to lend.

“As a result, this means that more people are likely to be in need of impartial debt advice, as they have fewer options to solve their financial problems.”

Debt specialists like The Debt People, Hamilton Locke and Chiltern, enable people that are struggling to repay their unsecured balances (personal loans, overdrafts and credit card debts) to regain control of their finances, whilst still repaying debts.

The credit card giant tried to force Ms Thorius to repay the £8,000 of credit card debt owed, but the Judge decided that an unfair relationship had existed between Ms Thorius and MBNA because of the way the lender had sold the card insurance.

Crucial to the prosecution’s argument was that Ms Thorius had not been told that MBNA would regularly receive commission payments from the insurance provider ITT London & Edinburgh, a subsidiary of the Aviva insurance group.

Judge Smart ruled that this “secret” commission meant the credit card agreement was unfair and therefore in breach of the Consumer Credit Act.

This point could potentially undermine many other agreements where PPI has been sold and open the floodgates for millions more people who are struggling to get out of debt after being mis-sold similar insurance products alongside personal loans, car finance deals and even mortgages.

Judge Smart also agreed with Ms Thorius’s lawyer that the credit card debt on Ms Thorius’s account was unenforceable because MBNA could not provide a copy of the original loan agreement, which is also a requirement under the Consumer Credit Act.

Judge Jacqueline Smart at South Shields county court ruled that the company should either pay Ms Thorius’s PPI premiums and interest back to her, or the value of the commissions it had received which so far has been undisclosed.

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “This could open floodgates for millions more people who are struggling to get out of debt after being mis-sold similar insurance products.

“However consumers should always seek impartial debt advice first and shouldn’t just think that they don’t need to pay for their credit card debts and other balances.

“This case is a county court case so does not set any legal precedent. Each case is decided on its own individual merits and on the factual circumstances within it.”

They have asked for a simple-to-understand summary box to be placed on bills which would cover all key information and make bills easier to decipher.

With many people not knowing exactly if they are receiving a good deal or not from providers, they could be placing undue pressure on debt management problems by paying over the odds for services.

Almost 4,000 Which? members were surveyed and results showed that gas and electricity bills were more difficult to understand than other household bills, like credit card and mobile phone demands.

Martyn Hocking, editor of Which? magazine said: “Consumers are not going to be able to reduce their energy use or find the best deal if they do not understand what is going on.”

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “Customers aren’t in a position to be able to find a more competitive deal and save money that could be used to help them get out of debt if they don’t understand what’s going on.

“Plus, they won’t be able to save money and the environment by cutting back, as they don’t understand the usage figures. It’s baffling.”

In response to the claims by Which?, ERA’s chief executive Garry Felgate said: “Energy companies issue over 200 million bills each year and suppliers continually work to improve the clarity of information to customers.”

Determined to land a job, David Rowe from Cambridge pounded the streets of London in suit and tie, with a billboard attached around his neck advertising himself.

He even offered to work for the first month of his employment free of charge.

Mr Rowe said: “The first 20 paces are the hardest, you feel very conspicuous, but you just steel yourself to get on with it.

“I have debts of about £20,000, and that’s not excessive compared with how much some students owe when they graduate.”

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “He must be commended as it’s a very proactive way to seek employment and deal with credit commitments.

“If everyone who was experiencing financial problems was as creative in finding ways to get out of debt, I’m sure there would be far fewer people needing professional debt help.”

The ingenuity has been recognised by employers too, and Mr Rowe has already been offered a number of jobs. One interviewer said: “I liked the fact he had thought out of the box. I was impressed by that.

“I was even more impressed after the interview. He’s very employable, so much so I offered him a job.”

But Mr Rowe hasn’t committed to anything concrete as such yet. He said: “I told myself I’d do the sandwich board for five days and I will follow through on that.”

The global credit crunch may have convinced us to stop spending for a while, however this trend may be starting to reverse.

According to figures released by Unbiased.co.uk, for every £1 that is being saved in the UK, 26p is borrowed. This is in sharp contrast to the second half of last year, when for every £1 saved, £1.61 of debt was actually repaid.

It would seem that more households are using credit to fund their lifestyle, and this will inevitably lead to more people getting themselves in over their heads. Whenever there is a jump in borrowing, there soon follows an increase in the number of people applying for debt management assistance and IVA advice.

In the period from April through to June this year, UK consumers borrowed £5.5 billion. This is almost twice as much as was borrowed in the first three months of the year. IVA help specialists are gearing up for the demand that will surely follow this increase in borrowing.

An IVA can offer a lifeline to over-indebted people, by helping to reduce monthly outgoings, and making debts more affordable. Only unsecured debts can be included on an IVA, such as personal loans, store cards and credit card debt for example.

According to the study only 5 per cent said that they would seek professional help with their finances, highlighting the risk posed to people who may be faced with debt problems.

Nick Cann, chief executive of the Institute of Financial Planning, which commissioned the survey, said: “The results of our 2009 survey reflect the fact that many continue to bury their head in the sand by ignoring financial problems in the hope that they go away.”

Debt advice organisations have recommended seeking impartial advice, sooner rather than later.

Ivan Cooper, Chairman at leading debt management organisation Chiltern, said: “By contacting a reputable company and seeking impartial debt advice, mant debt problems can be prevented from developing into longer-term or mor eserious issues.”

The study by You Gov, also found that four out of 10 respondents said they needed to save more and reduce debts.

The hotspots that are prime for repossession include areas like Salford, Swindon, Northampton, Corby, Barking and Dagenham, Knowsley, Newham, Walsall, Redditch, Halton, Sandwell, Wolverhampton, Bolton, Reading and Cannock Chase.

It also highlighted other major conurbations that have an increased risk, like: Manchester, Liverpool, Nottingham, Sunderland, Wigan, Birmingham and Kingston-upon-Hull.

Figures from the Council of Mortgage Lenders (CML) show that the number of repossessions in the second quarter of 2009 were down by 10 per cent on the first three months. However with overall figures, there was still an increase of 14 per centwhen compared to the same period last year.

Ivan Cooper, Chairman at leading debt management organisation Chiltern, said: “Many repossessions can be prevented when homeowners that are struggling to make their repayments – perhaps due to a period of unemployment – speak to their lender or seek impartial debt help.

“Usually an agreement can be reached with lenders so that payments are reduced temporarily to accommodate the drop in income, in an effort to avoid repossession.”

The housing charity Shelter has also warned that another wave of home repossessions when interest rates eventually rise.

According to their figures, there was a 15% fall in rush hour congestion, contributed by a quarter of commuters that lost their jobs doing so within the last year.

Reduced numbers on the roads was put down to rising unemployment, the rise in petrol prices affecting the number of car journeys taken and also people choosing to work from home in an effort to save money.

A fifth of commuters surveyed said that hard times had made them work from home, in a bid to save on travel costs.

They also found that Friday’s bucked the trend and saw a rise in traffic congestion, as more people choose to holiday in the UK rather than take expensive holidays aborad.

A spokesperson for the AA said: “The report brings both good news and bad news. Congestion is falling, but that is due to the recession, fuel prices and unemployment.

“So when times are hard it is with reluctance we look at ways of cutting down on car journeys.”

Ivan Cooper, Chairman at leading debt management company Chiltern, said: “With unemployment and fuel costs still increasing, congestion could drop further still as more people become financially more prudent.

“Before deciding to sell their car though, they should seek some impartial debt advice, as it may not be necessary to offload their vehicle to solve any debt problems – there are alternative options to consider.”

The AA warns that congestion is most likely to grow again, in line with the economic recovery.

It’s feared that this could also spell the end for more hauliers, as the Freight Transport Association, which represents haulage companies, said the rise could force some companies out of business.

These increases come despite the price of oil falling by almost half during the last year. This hasn’t been passed on to motorists at the pump.

A spokesperson at the RAC said: “The Chancellor seems to regard Britain’s 30 million motorists as a soft target for tax and with this latest rise he risks alienating them even further.”

Debt advice organisations have voiced their concern on personal finances caused by the latest rise.

Ivan Cooper, Chairman at leading debt management company Chiltern, said: “This third fuel duty hike is unacceptable. Since the beginning of the year, there has been a 23 per cent rise in pump prices for motorists, meaning it now costs an extra £11 per tank to fill the average car.

“For households where money is already tight, this could push them over the edge and force them to develop serious debt problems.”

The mother-of-four was also questioned on suspicion of criminal damage and a public order offence, which quickly follwos the caution she received by police two days ago for suspected cocaine posession.

It is alleged that the reality star attacked her accountant, punching him in the face and throwing a cup of tea over him, following a meeting about her accounts.

Ms Katona, who was dropped from her £250,000 a year contract with frozen food outlet Iceland last week following the cocaine scandal, has already been made bankrupt following poor financial decisions and her frivolous lifestyle.

A spokesperson for the police said: “At approximately 3.50pm on Wednesday 26th August, Cheshire Police attended a premises on Hawthorne Business Park in Warrington, following a report of an assault.

“A 28-year-old woman from the Wilmslow area has been arrested on suspicion of assault, criminal damage and a public order offence.”

Ivan Cooper, Chairman at UK leading debt management specialists Chiltern, said: “It must be incredibly hard for those people around her, to see Ms Katona implode like this. Especially as she has four children too.

“What she could benefit from is some sound and impartial debt advice, to make sure that any debt problems can be sorted before she loses everything.”

Police have bailed the former Atomic Kitten “singer” until 12 October, after she was held in a police cell overnight.

Their figures show that there are approximately 243,000 illegal young drivers, which equates to one in five – compared to one in twenty uninsured nationally.

Police use automatic number plate recognition (ANPR) cameras to check if a car has a current MOT certificate, a valid tax disc and if the driver is insured or not.

The police have the power to stop, question, and in some cases, arrest drivers if they haven’t got insurance cover. Consequences for driving uninsured can be anything from a fine, to points on their licence or having their car taken off the road and scrapped.

Ivan Cooper, Chairman at debt management specialists Chiltern said: “More should be done to reward good drivers, as by punishing everyone with higher insurance premiums it causes more strain on already overstretched household finances.

“To keep the costs of cover as low as possible, make sure you shop around when renewal time comes, and don’t take out additional cover or products unless you desperately need them, as these only push the price up further.”

Ashton West, chief executive of the Motor Insurers’ Bureau says the cost of covering young drivers is down to the risk they pose on the road – and not just down to what type of car they drive.

He said: “Young drivers statistically are a bad risk, they are. They are many times more likely to have an accident.”

A study by the Institute of Chartered Accountants in England and Wales (ICAEW), found that optimism among professionals soared in the third quarter, to the highest levels in two years when the financial crisis began.

The confidence measure rose from -28.2 in March to 4.8 at the end of June this year, marking the biggest increase since the records were first established in 2003.

The ICAEW also predicted that the economy should grow by half a per cent this quarter, breaking the pattern of the previous five quarters of falling output.

Michael Izza, ICAEW chief executive, hinted that the findings suggest the UK recession could be at an end.

He said: “While there is no doubt that the UK economy is on its way to recovery, we shouldn’t underestimate the challenges ahead for businesses.”

Ivan Cooper, Chairman at debt management specialists Chiltern, added: “For many people currently suffering with debt problems, this news couldn’t come sooner.

“Hopefully this confidence will filter down and assist the flailing property and jobs markets, and more people can stop worrying about their financial situation.”

The ICAEW survey showed that UK businesses expected a rise in all but one of 14 key financial performance indicators in the coming year, in contrast to earlier in the year when most were expected to contract.

The research found that 41% of senior business professionals were more confident about the economic prospects their business’ face in the coming year. However, only 6% were much more confident, indicating a continued level of caution over the timing and speed of the recovery.