UK Job Market and Inflation Causing Problems in Consumer Households

New research shows that things are not looking too great in the United Kingdom right now in terms of job opportunity for those who are looking and stability for those who are already employed. Research has come from the Chartered Institute of Personnel and Development, known as CIPD for short, that shows an economic recovery from the private sector alone is going to be tough. The issue stems from the fact that major losses in jobs in the public sector has put too much pressure on the private sector. The Government is being questioned by experts who decry this move and the effects it appears to be having.

Manufacturing confidence is sinking rapidly and this is hurting the labour market, as well as showing up in terms of an economic divide between the North and South in terms of jobs. In addition to this, more major employers are looking to reduce their workforce – something that is not good news for many in the UK right now. A survey showed that most employers are planing to fire, not hire, workers in the coming 3rd Quarter. Over the coming year, even more cuts are what companies are looking to make and this is information comes from a survey which had a sample size of over a thousand employers to work from.

As companies continue to tighten up their budgets, consumers feel the pinch on their household budgets. Debts rising at the national level mean more public sector cuts and then, in addition, is the slowed growth of the UK economy in general paired up with rising inflation. None of this bodes well for those that are trying to keep themselves afloat at this time. This is leading many to seek out debt solutions so that they are not caught in a financial landslide should things get worse with the economy in the future, as predicted now.

Those looking to find the right solution for their own personal debts should consider the links on this site. Often, a solution is easier to find than one might have imagined. Today there are a variety of options. Explore the opportunities and you may well find that getting out of debt and keeping your life straight at the same time is easier than you thought.

Troubling Statistics for UK Personal Debt Unveiled Yet Again

The United Kingdom has been struggling to keep debts manageable at the consumer level for some time, but many factors appear to be making it difficult for the average person to dodge debts. Recent statistics have been put together by Credit Action, and these show that the average debt per household in the UK today stands at over £55,800. This figure does include mortgages as part of personal debts and is shocking to see, particularly since it has been shown that at the end of June 2011, the total personal debts owed in the UK stood at over £1.45 billion.

Why is this figure so shocking? Analysts say that this level of debt is comparable with entire output of the UK economy between the 2nd Quarter of 2010 and the 1st Quarter of 2011. While the overall levels of debts owed by consumers has actually slid by nearly £6 billion over the past year or so, financial experts say that the reason for this decline is actually IVAs (Individual Voluntary Arrangements) and similarly formal debt solutions. This shows that these solutions have helped to write off a massive amount of consumer debt, something that offers a real glimmer of hope to those still struggling with debts in the UK right now.

The statistics for those struggling in the UK today are truly staggering. The Citizens Advice Bureau is sawmped by requests for help with more than 9,000 requests made each day. This means that every 5 minutes a new consumer is declared either bankrupt or insolvent – not a pretty picture for the UK economy by any means.

Some critics have said that it should be noted that figures for bankruptcies have actually been in decline. Analysts, however, are quick to point out that this could be due to the fact that a bankruptcy costs £700 as opposed to the £100 it cost in the past. Instead, many people are finding an IVA to be the solution which can meet their needs, with over 12,000 IVA’s being made in 1st Quarter of this year alone.

The Office of Budget Responsibility has also stated that they believe debts in UK households are going to increase. In fact, by the conclusion of 2015 the OBR predicts that household debt will have hit well over £2.1 billion, a figure that means average debt per household would be over £80,000. In addition, with the UK growing at a rate of over 1,200 new citizens per day through 2021, the economy will be dramatically affected, making it all the more important for consumers to get their finances straightened now.

Credit cards, unsecured personal loans and finance deals for cars or stores are a prime culprit for debt today. If you need help, please explore this site for links to services that can help you. There is no reason to go it alone when expert debt assistance is available and proven to help people get back their financial security and their peace of mind.

Over 3 Million British Households Facing Financial Troubles

The media in the United Kingdom is abuzz with the news that a recent release of research points to tough times for nearly one tenth of the nation’s entire population. According to this research from a trusted group that keeps tabs on British households, pressure is mounting and nearly 3 million are vulnerable beyond the 3 million who are already in trouble. This includes over 1 million people who are finding it tough to make their mortgage payments.

Of the homes surveyed, more than 3 million are 3 or more months behind in their debt repayments or have a type of debt action being taken against them already. Nearly this same figure of people are currently battling to keep up with their household bills because costs have been rising in the past year. Those who earn around £13,000 tend to have a significant portion of debt that is typically unsecured and almost twenty percent higher than their yearly earnings. This is far higher than those who earn two or three times as much per year who have just over 90% of their income in the form of current unsecured debts. Unfortunately, those that are in the most vulnerable group with over 120% of their incomes in debts are also the same group that are receiving benefits.

The biggest factor, say many UK economists, is the fact that those who earn the least experienced a drop income of nearly 6% over the past 5 years. This might seem small, but in these lower earning brackets, the impact is immense and leaves no room at the end of the month for those that are struggling. Fuel costs are one of the biggest contributors to this problem with a nearly 15% rise in costs just for electric and gas bills shooting up by almost 20% in the next 5 years according to analyst outlooks. If this sharp of a rise does happen, these citizens would be hard pressed to free themselves from debt to move forward with their financial lives.

Those that own homes, too, are struggling this year and with interest rates socking them for higher payments, particularly at the annual level. This is restricting the market by having fewer households eligible to own a home at all. When unsecured debts enter the picture, many households, even those that earn well, have precious little left over each month.

Debt struggles in the UK are certainly nothing new. If you are struggling with debts yourself, we invite you to peruse the links on this site which has been created as a neutral source to services that can help. Getting out of debt is always possible, it is simply a matter of choosing the right solution for your situation.

Bankruptcies in UK Down by Over 30% New Findings Say

Wales and England are now seeing fewer declarations of insolvency for the fourth consecutive Quarter. The First Quarter of 2011 shows that there were just short of 30,200 personal insolvencies for that time which is a drop of nearly 2 per cent. Personal finance experts still point out that the rest of 2011 is most likely set to go differently, but this remains good new for the time being. Compared with the First Quarter of 2010, this is a drop that The Insolvency Service shows as being 15.5% for the past year, something positive for both parts of the United Kingdom. Businesses, however, are not faring nearly so well and this is what leads experts to predict more insolvencies in the coming months.

2010 had proved to be a record setting year in terms of the number of people declaring insolvency despite available measures to protect against this, such as debt management and IVA’s. Contrary to what some analysts had predicted, Christmas spending in 2010 did not lead to rises in personal insolvencies for early 2011, but this may be the result of the previously mentioned alternatives to bankruptcy. When financial difficulties become acute, experts now say that more people are choosing alternative exits instead of relying on bankruptcy – which can itself can be tougher to recover from than its alternatives.

The statistics show that just over 12,500 personal insolvencies were filed in the First Quarter of 2011, but nearly 10,900 IVA’s were declared during that same period. An IVA, the acronym for an Individual Voluntary Agreement, has become a popular route to leave debt behind by arranging a legal deal between creditors and those who owe them.

According to published research, close to 4 in 5 Britons now shop differently as a way of preserving their cash. It appears that this could be having a strong positive effect on the mounting insolvencies, but this does little to ease the stress on the typical British household as the cost of goods and services rises while incomes stay at their plateau point.

If you are currently struggling with debts yourself, we invite you to have a look through our site. Explore the places for advice and counsel that we link to. Your exit from debt can be much easier than you might have believed.

Britain’s Debt Spreads Out to Over £135,000 Per Household

It turns out that, according to the United Kingdom’s Office for National Statistics, the country’s debt is far worse than what might have been thought in the past. The new figures show that for every household in the UK, there is a pile of more than £33,000 in debt towards the public sector’s total of £876 billion. The total amount of debt in Britain right now works out to over £138,300 per household, as well, when the private sector’s debt is included in those figures. This staggering debt load is far more than had first been estimated by analysts.

The Government continues to push for further spending cuts, much to the dismay of many, and with bank rescues to he tune of more than £2,250 billion, Banks such as Bradford & Bingley, Royal Bank of Scotland, Lloyds Banking Group and Northern Rock are all a bit on the unpopular side with critics of the rescues. Since 2008, these banks have been bailed out and some groups say that they could possibly have received a ‘real figure’ that is more than £1,000 billion more. With thousands of billions of pounds going to save banks while those at the bottom are struggling to merely keep their mortgages paid, public outrage is bound to occur say consumer financial advisors.

With the debt standing at more than 240 percent of the entire economic output of the UK right now, things definitely do look dire. Brooks Newmark, a Tory MP, has spoken out about the extent of the debt, even going so far as to help create a report that reveals the truth of the situation. False accounting is what Newmark is hoping to avoid, an economic catastrophe on the level of the American company Enron that wreaked so much havoc across the pond towards the beginning of the last decade. Britain also wishes to avoid situations similar to those happening in Portugal, Greece and other parts of the world today.

With this happening at the national level, it is no wonder that many British citizens face incredible debts of their own. If you are looking for help in finding a government backed scheme that might assist you or you would like help with debts, we encourage you to explore this site to find companies we have featured. Our purpose is to provide information in a neutral way so you can make the best decision for yourself, but you should know that help is out there.

Shocking Number of Britons Willing to Hide Debt and Lie About It

It turns out that a new survey has revealed a very ugly truth about the epidemic of consumer debt in the United Kingdom today. This survey, conducted by an insurer known as Axa, found that nearly 4 in 10 Britons are willing to lie about their debt problems rather than speak frankly about their own financial health. Some experts were surprised by this revelation since debt management is so easily obtained these days, but other consumer debt experts said they were not surprised due to the stigma still associated with debt today in the UK and much of Europe, as well.

Of those who stated they would be willing to obscure the truth about debt in their lives, 24 per cent of people admitted to survey takers that they already lie about their debts. Things being lied about today run the gamut from debt resulting credit card spending to overdrafts to loans that are not being paid back. Those people said that they, in many cases, deceived family members, friends and even their domestic partners.

To lend a sense of scope to just how vast the UK’s hidden debt problem is, over £4,000 is owed per person, on average, in hidden debts. In all, nearly £50 billion pounds of debt owed by British citizens is estimated to be obscured from the debtor’s closest social connections.

Those between the ages of 19 and 30 years old are most likely to lie loved ones about their debts. This age group also happens to have the most hidden debt per person, on average. Those between the ages of 46 and 50 have the highest levels of such debt.

Reasons for hiding the debt from loved ones varied, but the majority of those surveyed indicated that their own embarrassment and fear of others’ reactions were what motivated them to lie.

In terms of gender, women reportedly lied less than men about their debt issues, but women reported they were hiding much higher amounts of debt per woman. Common causes of hidden debt were drinking, for men, and excessive shopping, for women.

This particular subject is the 3rd most common subject lied about in the UK, right below another money topic: how much a person spent on a given item they bought.

Hidden debt can damage relationship with family and can even trigger a breakdown in relationships. If you fear you have nowhere to turn and you simply can not bring yourself to admit to others the debt you are in, why not explore our links to the right of this article? There you will find a number of trusted advice sources which can help you get out of debt in a way that can suit your life style. Remember, help is always available so you do not have to live a double life.

UK to Use Debt Collectors to Force Taxes to Be Paid

In a move that has shocked many in the United Kingdom, HM Revenue and Customs has decided to turn to debt collection agencies in order to go after those who have unpaid taxes or owe other money to the Government. More than £1.5 billion in unpaid taxes are expected to be collected and the debt collectors involved are said to be profiting by £70 million from this arrangement. Even Britons who owe very small amounts are sat to be in the sights of the collectors, the same debt collectors who have previously brought in more than £1.3 billion yearly for the Government. This may well signal a massive move towards Debt Management Plans for those who owe and do not wish to deal with such tactics, consumer advocates say. Those who can use this alternative may be able to escape the uncomfortable process the Government has planned for those who have missed paying debts.

Already, HMRC has tested this approach, sending some tax payers’ debts to debt collection firms such as those who owed over £10,000 or those who owed £700 or more on their national insurance. These firms go far further than HMRC officials would, upping the techniques used to try and collect payments. They will make phone calls, send notices by post and eventually send a bailiff to attempt collection. This is certainly not catching favor with tax experts who have voiced their anger over the situation. They have pointed out that HMRC has failed to collect on its own and is now using tax money to pay debt collectors to do its work for it. This, combined with the fact that it has blundered, they say, on many occasions with errors, make the hiring of outside firms a ‘travesty’ and ‘unacceptable’.

Many are concerned that those targeted could be elderly or persons living on benefits who would be frightened of being pursued by debt collection firms that often use intensive tactics to try and elicit payments. Those who have received errors in their tax code could also be forced to pay, via less than gentle methods, taxes which they do not actually owe. This situation is particularly likely among Britons who can not afford to seek help in verifying the accuracy of their tax code this year. In 2010 alone, tax collection errors ended up sending many UK citizens the wrong tax codes – multiple times. Nearly 6 million in the UK were told in September that they had paid too much tax for two consecutive years.

Some with debts to HMRC that were caused by faulty tax codes will be able to have those written off, but experts still insist that sending in debt collection firms to collect tax debts is not the UK way.

Baby Boomer Generation Struggling with Heavy Debts in UK

The year 2009 had proven to be a tough one for those entering the retirement age in the United Kingdom with a recent report showing that over 134,000 Britons had sought either an IVA, a Debt Relief Order or even bankruptcy. However, 2010 has been shown to have even more dispiriting statistics with that number rising to more than 135,000 people facing the same types of insolvency. That means, over the course of 2010 around 15 people sought such options each hour throughout the course of the year. While those considered pensioners have made up less than 5% of this group, they are the fastest growing segment. Nearly 15% more Baby Boomers are now reaching this point, having to face retirement with heavy debts they are simply unable to pay down.

According to experts, this makes the Baby Boomers the very first generation that is accustomed to carrying debts throughout the course of their life, in recent times. Loan after loan, say experts, and constant reliance on credit cards, are what has led this generation to its current state. With well over 2 decades of credit under their belts, the debts have just kept on mounting for many of them. A fixed income is now making it even tougher for them to be able to pay down these debts and that is certainly something they are having trouble with. Along with the upward trend of the VAT, interest rates are said to be guaranteed to rise and, along with that, rates for insolvencies. 2011 is not looking to be a good year for insolvencies, with many predicting more than 140,000 for the upcoming year.

Economic upheaval, rising taxes and much more have all come together at the worst possible time for the Baby Boomers, along with plenty of other generations, and the situation is definitely expected to continue well on into 2012. In the North, the rates of debt have been higher for personal insolvency while in the South East and London, things are mildly better.

Over all, economists and personal financial advisers alike insist that it is going to be smart and difficult financial decisions that clear the way for a brighter financial future.

Big Changes for Disabled and Elder Care Coming in Britain

The Government of the United Kingdom has recently announced that it will be making changes to the way that care is provided for the elderly and those with disabilities, shifting the perspective of social care from being something to be delivered by the state to a ‘responsibility’ for ‘everyone’, according to recent reports in the UK media. This perception shift will involve allowing those who receive such care to have larger personal budgets, more control over how these budgets are spent and also, increased support for those who give care, focusing on volunteers.

Growing demand from the burgeoning population of British citizens entering their later years, says the independent commission in charge of restructuring social care, has led councils to struggle to provide home help care services as well as placements for carers. The Government says it does not want to try to get ‘care on the cheap’ and is interested in making the new system function better and relieve problems within the current system.

The new policy would not go into effect until 2013 and currently, councils are trying to prepare to stretch out their funds as far as they can to try and make ends meet. According to the Association of Directors of Adult Social Services’ president Richard Jones, the funding challenge is quite severe so people are needed to help get involved to form a more nurturing network to provide care that involves the person, families and the state working together. He went on to say that many people believe social care is simply given free and this has hurt the state’s ability to offer enough on their own.

Over the upcoming 4 years, an additional £400 million would be given to allow carers to have breaks to help make life easier for those cared for and also £3 million is planned to fund the voluntary services sector. Currently, social care spending in the UK is £16.6 billion per year, half of the spending that councils have in their budgets. This applies especially to those who have less than £23,500 in assets who need help covering their care.

Since care can often lead those who need it from solid financial lives to massive debt, the extra £2 billion for councils is seen as a real boon to those in the UK needing assistance with daily life.

Many Enraged by Plan to Force Work for Welfare

Recent plans have been unveiled that would be designed to force people who have been unemployed for a long period of time to do manual labour for which they would not be paid. The welfare campaigners of Scotland were quick to condemn the plan, citing outrage at its purpose with so many in Scotland already facing stiff debts and Trust Deeds being the primary way many are able to overcome such situations in a fair way. This plan, say campaigners, is flat out unfair to both those working to repay their debts and those unable to find work who would not be paid for their labour.

Those opposed to the pan have stated clearly that it would essentially harness the labour of the poor to fix an economic crisis that they did not help to create. Iain Duncan Smith, the Work and Pensions Secretary, intends this week to reveal the compulsory work programmes which last 4 weeks and involve tasks such as gardening and picking up debris. These tasks will be for those without jobs who have been judged to be lacking in work ethic.

Danny Alexander, Smith’s colleague in the Cabinet, also stated that the Work Activity placements would be used against those claimants who did not take full advantage of employment seeking support and wielded as a sanction. Opponents of the plan, some 40 organisations such as Children 1st, Oxfam, Scottish Council for Voluntary Organisations, Scottish Churches and others allied under the Scottish Campaign for Welfare Reform, have cited that these plans will make it even more difficult for those sanctioned to find actual jobs.

According to the Child Poverty Action Group’s John Dickie, the problem with the proposed plan is that it does not treat people with dignity and fails to help them find a way towards work that will actually pay them. As it involves punishing them it is distracting from the problem that Dickie says is actually at the heart of what the plan is a reaction to: a lack of jobs that can sustain an individual, much less a family. Without child care available and with widespread discrimination, the real jobs with real wages are just not so easy to find as those who support the plan are claiming, say critics.

Critics also cited the jobs as violation of minimum wage legislation and went on to say that making people work for 30 hours or more while not getting paid was essentially insult to injury and would perpetuate the problem. Smith’s approach is to have people experience the habits and routines of working life that he believes they have forgotten about. Thousands of claimants would be targeted for this 30 hour work week because they are believed to be fine with not working or are suspected of having a job they do not declare. Those who fail to comply would lose their £65 per week Jobseeker’s Allowance for 3 straight months.

Smith was quoted as saying that those in the programme would need to understand the message that they need to ‘play ball or it’s going to get difficult’. Critics argue that the plan fails to see that it is lack of jobs which pay enough to help people survive which are the issue as opposed to a lack of work ethic.