Shocking Rise in Home Repossessions Worries Many in UK

New figures just released from the Council of Mortgage Lenders in the United Kingdom show that repossessions of properties has risen by nearly 15% since the beginning of 2011. According to the numbers, experts say that around 9,000 properties have been repossessed in the 2nd Quarter of this year alone, which is an increase over over 1,000 properties when compared with the 4th Quarter of 2010.

This figure is obviously alarming to both lenders and homeowners in the UK today and given an extra jolt of trepidation by the current state of the nation’s economy. The CML’s director general went on record to say that stable incomes from relatively secure positions of employment and low interest rates are currently helping some continue to meet their mortgage repayments. He went on to say that lenders are more cooperative now than at some points in the past, wanting homeowners to keep their homes, even when arrears enter the picture. Accordingly, he says that repossession is typically a last ditch effort that most lenders are reluctant to use since consumers can enter into debt management or even an Individual Voluntary Arrangement to help save their home in the vast majority of cases.

Some housing market experts, however, believe that low mortgage payments are a prime reason for the current level of repossessions. These experts feel that Government cuts could lead to redundancy figures as 2011 progresses, causing problems for many who are already on the border of insolvency and barely staying afloat. Taxation could become another pinch issue that hits home not only for households, but employers providing today’s jobs.

What really worries those in the debt help industry is the fact that figured from the Finance and Leasing Association have been published only a short while ago which show that second charge mortgage repossessions are up by over 45% between the 2nd Quarter of 2010 and the same quarter in 2011. The forecast does look grim for some 900 households that are predicted to lose their second charge mortgage property this year. For those homes, drastic measures may need to be sought out quickly in order to get household finances under control and a reasonable repayment schedule put into place.

Those struggling with with mortgages, particularly if they also have loan payments to contend with, certainly should seek debt advice quickly. Lenders are shown to be far more lenient with those that have sought professional help in arranging more sensible repayment strategies. UK consumers can attempt a variety of arrangements that could work for their home.

Please feel free to explore the links offered on this site to find trusted providers of debt advice.

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.

Wales Could Be Hit Hard by Debt Issues Affecting Families

Parts of the United Kingdom are definitely being struck harder than others when it comes to debts, experts say. Wales is in the media spotlight as of late, with advisors warning that Welsh families may be up against a lull that precedes a veritable tide of debt. With inflation rising and interest rates, too, set to rise – it could be bad news for families in Wales. However, that affect is something that could be striking all across the UK according to a variety of financial experts who track such financial figures. This warning is based on the fact that the consumer price index is down, as of March, 0.4 per cent compared with where it was in February. This could trigger families to spend more than they should on the hopes that prices will stay low which experts say is unlikely to occur.

What is certain is that benefits are going through changes, wages are barely rising at all and it costs more to borrow in 2011 that before. This means that families who have barely been keeping current on their payments and bills may find that they are below the water mark much more quickly than they had anticipated if there are any negative changes which impact their finances. After all, consumer advocates say that 4 per cent for the CPI is not exactly a low figure.

What is hardest to hear is that those with children face the sharpest challenges. They are losing, according to some research indications, around £45 per month from the average 3 child home. That figure means that they are literally in the whole by £45 and that amount is rising as time passes. While jobs have not been lost at nearly the rate feared, it is likely that public sector cuts will affect many families in Wales, especially, but also across much of the rest of the country. On top of this, reduced hours at work and wages that do not rise are not allowing much breathing room.

If you are facing these worries yourself then you may be interested in learning how to avoid problems in 2011. There are links on this site which can explore that will help you find out about your options for government schemes, reduced repayments and other ways of safely managing debts with the help of reputable advisors. We invite you to explore and see what all can be done.

Depression is Normal Side Effect of Debt

Credit card repayments,  mortgage repayments and plenty of other debt loads definitely lead to serious mental health issues, British researchers are now finding. The BBC alone has found that in the United Kingdom, serious debts lead to a sharp rise in prescriptions of medications used to fight depression. Nearly 23 million people currently use anti-depressant drugs and that figure has risen by almost 50 percent over the past four years. The weight of debts in the minds of those who struggle with them, experts say, is clearly linked with mental anguish so severe that those people seek out psychiatric help.

While it has long been believed that debts could create intense psychological pressure for individuals, it has never quite so openly shown that this was indeed the case until very recently. In fact, even the Royal College of General Practitioners’ head has spoken out to say that even family doctors have been seeing more and more cases in which their patients are staggering mentally and emotionally under the burden of severe debt.

Guilt is said to be the leading cause of the trouble, especially in family situations where adults have children to try and care for. The guilt leads to depression and things can rapidly spiral beyond control. This type of emotionally taxing situation can even lead to a break down in family relationships that can cause further stress, thus strengthening the downward spiral for those who do not seek out help.

Money problems and a perceived lack of solutions for mortgage or credit card debt are certainly stumbling blocks to recovery in the UK. With services such as this site provides links to, it is easier than one might think to get real help, but often people face embarrassment or worry in approaching even the most reputable debt advisors. The solution, say consumer financial experts, is to find a way through this fear and to the healing that is possible once better financial arrangements have been made with one’s creditors.

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.

Single Parents in UK Should Get Job When Child is One Some Say

Parents who are raising a child alone in the United Kingdom have now been told that that they may well lose a portion of their state benefits once the baby reaches a year old if they do not begin to prepare to get a job. New sanctions that are set to spur those not currently looking for work to start working will target single parents without jobs who have a child between the ages of 1 and 5 years old. Word of this came from a recent White Paper that has drawn fire from charity groups that focus on children and those which look after single mothers.

The Work and Pensions Secretary, Iain Duncan Smith, outlined this set of plans to rock the benefits – one that critics say is the sharpest set of changes in more than 6 decades. He told the press that parents with children between ages 1 and 5 will need to keep in touch with Jobcentres and discuss a plan of action for what will happen once their child reaches school age. He went on to say that he views the impact on these parents, most of whom are single mothers, as very low and that 40% of the benefits would be the maximum taken, half of that for not attending an interview regarding working and another for missing further appointments on that issue. When the child is 5 years old, if they had not yet found work or were looking for it in an active way, then there would be more penalties applied against them.

Those unwilling to take a job offered to them who would also not apply to do community service work would loose their Jobseeker’s allowance for 3 years. Smith made the statement that those who cooperate would be happy and nothing would happen to them, but that it was not about ‘hammering people’.

What many have pointed out is that the Plan is actually aimed at targeting people who are involved in a ‘black economy’ where £140 billion in benefits each year go to those who are working on the side and not paying taxes. Fraud, also, is costing the system over £5 per year right now.

Critics have accused the new plan of creating a climate of fear and that it targets the poorest children in Britain, most of whom have parents that want work but find it difficult to get a job that still allows them to care for the children even after they are in school. Critics say that there is no protection for parents that says they will not be punished if they cannot find childcare and that this in and of itself, they find, is inexcusable lack of foresight. They cite long term damage to society followed by long term economic damage as being their chief reason for opposing the sanctions.

In what comes as perhaps the most shocking aspect of the benefits system changes, claimants who get emergency hardship payments may find these being turned into loans. When these claimants do not meet requirements set by authorities, they would then owe the Government for their benefits as a means of sanction.

Weekly Spending Money for UK Youth Down Sharply

In a report that may amuse many except the youngest Britons, a survey shown as part of research conducted by the Halifax unit of Lloyds Banking Group has found that parents are cutting back in a crucial area of the family budget. According to the statistics, British children’s pocket money has hit the lowest levels since 2003 and researchers say this signifies a big shift in family spending. The effects of the global recession have now reached the youngest in the United Kingdom, say the researchers, as parents try to reduce all spending that is not essential in an effort to pay down massive debts with wages that are not keeping up with the cost of living. The added threat of an unstable job market make this an especially tough time for UK families.

In 2009, the average amount children were given per week was at £6.24 but by the same time in 2010, that amount had shrunk to £5.89 which is just a touch above the low that British families doled out to their children in 2003, £5.79 weekly. While wages have risen over the past year, the cost of goods and services plus the VAT and other expenses have led to a higher cost of living. The report covered children between the ages of 8 and 15, including just over 1,200 children altogether who were surveyed during the latter part of August 2010.

While to some this may appear to be a small issue in light of the overall UK economy, psychologists say that it is important to realize that children form crucial concepts about financial matters at an early age. What may seem to be a minuscule issue to adults is often quite overwhelming to a child between 8 and 15 years of age since this is when principles of spending and saving. Children who grow up with what they perceive to be lower funds often struggle as adults due to a perception that they have experienced a childhood where they were unable to enjoy material things due to lack of money in the home.