Past Articles for the Personal Debt Category

Parents are still providing offspring over 25 with financial assistance, new research has found.

Data from Engage Mutual revealed that 31 per cent of parents surveyed were helping their children with money as they struggle to become financially independent.

Much of this aid was related to buying a home or moving house, with 46 per cent of parents stating they had provided assistance to their children over this matter.

And the repayment of student debt or other education was another area in which children still needed help, as 23 per cent of parents have handed over cash to help in this area.

“Our research shows that the financial connections between generations are becoming more profound,” spokesperson for Engage Mutual Nick Breton noted, adding that adult children are “finding it increasingly difficult to stand on their own financial feet.”

The Scottish government recently began promotion of its debt awareness scheme, which provides free debt advice to those struggling financially.

By Tom Musk

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Providing for daily necessities such as shelter and basic needs is the most important financial concern for those aged 45 and over, new research has revealed.

The survey, conducted by Hartford, shows that 58 per cent of respondents feel keeping up with daily expenses is most important, with enjoying retirement being cited most important by 29 per cent of those surveyed.

These figures show the extent to which the over 45s are worrying about their financial situations, as last year’s survey produced figures of 40 per cent and 47 per cent respectively.

Managing director for Hartford’s UK branch Michael Ridge noted that the credit crunch is “significantly impacting people’s ability to save for their retirement”.

“Now more than ever, it is vital to seek professional advice and make the right financial provisions for retirement,” he explained.

Axa recently called for people to keep up their pension contributions where possible, stating that cancelling such payments should only be seen as a “last resort”.

Some people may be tempted to reduce or stop contributing to their pension as part of a debt management plan.

By Tom Musk

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Men are likely to spend more than women when shopping, according to one personal finance website.

David Kuo of Fool.co.uk stated that although men shop less frequently than their female counterparts, they are more likely to pay over the odds for a product as they are not as good as spotting bargains.

He also noted that women generally control the finances in a relationship, meaning they may be more likely to implement a debt management plan in order to limit spending.

“The woman is actually the person who is looking after the household budget more often than not,” he explained.

And Mr Kuo advised those who are looking to avoid overspending when they go shopping to take a female friend who is sensible with their money as company.

According to a YouGov poll conducted for the Skipton Building Society, almost half of British males believe staying out of a relationship is the key to saving money.

By Tom Musk

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Women are worrying more than men about financial issues, a new study has found.

Research from health insurance firm Bupa has revealed females are becoming more stressed over the issue than their male counterparts, with six out of every ten stating the credit crunch has left them worrying about their financial situation.

“Women are certainly bearing the brunt of Britain’s stress both at home and in the workplace, and the situation is being worsened by the impact of the credit crunch,” deputy medical director for Bupa UK Health Insurance Dr Paula Franklin stated.

And she urged those worrying about issues such as debt to take regular exercise, sleep well and eat a balanced diet, calling for women to take “positive action and ensure you don’t become another stress statistic”.

A new Axa survey has found nearly half of those aged between 25 and 44 have lied about their finances.

Allison Green of the firm called for Britons to take a “proactive” approach to debt management.

By Tom Musk

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People need to improve their budgeting to avoid getting into financial difficulty, a money education charity has stated.

According to Frances Walker of Credit Action, drawing up a budget - using methods such as a weekly money diary - is the best way of making your money “work harder”.

She advised those who are looking to save money to take cost-cutting measures such as reducing the amount of coffee or sandwiches purchased while at work and noted help is available for those struggling with their debt management.

“[People] can go to one of the debt advice charities and get some help with budgeting and sorting out their problems,” she remarked, citing the National Debt Line and Citizens Advice as useful sources for information.

Figures recently published by Credit Action have revealed the UK’s personal debt was £1,448 billion at the end of August, an increase of 6.2 per cent over the past year.

By Tom Musk

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Those who are struggling to get credit through conventional methods due to their financial situation are turning to other options available to them, it has been suggested.

According to Frances Walker of Credit Action, people are beginning to use pay-day loans, logbook loans and pawn brokers in order to acquire finance.

These sources are being used by so-called ‘Funts’ - or financial untouchables - who have had difficulty getting finance from regular lenders due to their debt.

Ms Walker noted that the poorer a person is, the harder it can be for them to obtain credit.

“I am sympathetic if people are very desperate and just need cash and I understand why they turn to someone like a pay-day lender,” she explained, but added that taking such action - for example to try and avoid bankruptcy - can be “very expensive” due to the high rates of interest.

Recent research by Abbey Credit Cards found that one in ten of the UK’s population are spending 90 per cent of their salary on essentials such as rent and bills.

By Tom Musk

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Many Britons are risking their finances by not taking out medical, home, payment protection or travel insurance policies, it has been claimed.

Almost a quarter (24 per cent) of those questioned in a survey by Fairinvestment.co.uk admitted they did not have any such insurance policies in place, while three-quarters stated they do not take out travel insurance when going on holiday.

Spokesperson for Fairinvestment.co.uk Rachael Stiles described the findings as “concerning”.

“As budgets get tighter, I can understand why Brits are cutting back, but insurance should be one area that is sustained,” she explained, adding that by not taking out policies people are risking having to make large payments should an incident occur.

Those struggling with their finances who had cancelled insurance policies as part of a debt management plan may wish to rethink their decision following the advice.

Esure recently urged customers to check their home insurance policy to make sure they do not waste money by purchasing unnecessary cover for expensive gifts while doing their Christmas shopping.

By Tom Musk

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An increasing number of Britons are telling fibs about the state of their finances, new research has revealed.

According to a study by Axa, nearly half (44 per cent) of people aged 25 to 44 have lied about money.

Overall, one in three people have lied to their partner, family member or friend about their finances, the company stated, with the global economic downturn likely to exacerbate the problem.

Alison Green of Axa said: “In the current financial turmoil, people may be tempted to conceal the truth about their financial situation, but they are only deceiving themselves.”

She called on Brits to be “proactive” about debt management in order to “weather the storm” ahead.

This advice follows recent figures from the Insolvency Service, which showed the number of Britons filing for bankruptcy has increased by 12 per cent over the last three months.

It said that 275 people are declaring themselves bankrupt or insolvent each day.

By Tom Musk

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Many Britons are scrapping Christmas parties in a bid to save money over the season, new research has revealed.

According to a survey by Yorkshire Bank, 79 per cent of respondents are making the move in order to reduce their outgoings over the festive period, with 82 per cent stating they would rather attend a party than host one.

And many are holding back on buying new clothes in order to reduce the risk of getting into debt, with 22 per cent admitting they plan to wear last year’s outfits to any parties they do attend.

Head of retail banking at Yorkshire Bank Gary Lumby noted that “sitting down and working out a Christmas budget” will help ensure those worried about their finances do not spend outside their limits.

Such a strategy could also be worked into a debt management plan for those who are looking to minimise their outgoings in the coming months.

Meanwhile, those thinking of starting their Christmas shopping have been urged by finance expert Jasmine Birtles to plan ahead in order to reduce the risk of overspending.

By Tom Musk

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Many people are likely to use borrow money and use credit cards to find their purchases this Christmas, Axa has stated.

According to Steve Folkard of the finance group, people manage to find the finances to help pay for Christmas gifts and entertainment “whatever their circumstances”.

However, he noted that this finance is likely to be acquired in a different manner this year.

“As people have less cash to spend you’d expect more people to be forced to borrow money on credit cards and overdrafts,” he explained

Such action could expose people to greater risk of credit card debt and require them to seek debt advice.

However, Mr Folkard also noted that spending could decrease due to the current financial crisis, adding that many retailers may hold early sales as a result.

Mr Folkard’s statement follow research conducted by Tickbox.net on behalf of Lloyds TSB, which found that 82 per cent of those surveyed have less money to spend over the festive season this year.

By Tom Musk

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