Archive for September, 2010

ÂĽ of Brits Cannot Live Without Overdraft

Wednesday, September 29th, 2010

According to new research conducted in September 2010 by Groupola.com, 25% of U.K residents feel they cannot survive without their overdraft facility, and 18% say they are constantly overdrawn at the bank. 

This latest information comes as no shock to most people, as the recession has hit everybody hard in recent years. But at a time when the economy is supposed to be recovering, it is clear that for ÂĽ of the population, financial security seems out of reach.

Only 6% of the people questioned claimed that they never used their overdraft facility, and only 2% said that they’d actively cancelled it with their bank.

Even more of a crushing blow for the people who have overdraft debt, is that the average overdraft interest rate now stands at 19.1%, a record high. The central bank claims that this is the result of money lenders attempting to profit from the recession, a time where many businesses lost money.

Although everybody wants to make more money during this financial crisis, the people who will be most affected will be those in debt.

Interest rate hikes

Most banks have now increased the interest rate on overdrafts, some even doubling in cost since March 2009.

This change for the worse has definitely affected consumers and their feelings about being in the red. 2/3 of the people surveyed by Groupola said they would worry about an outstanding balance on an overdraft.

Even more shockingly, 38% of respondents said they had no idea at all how much interest they were charged each month for being in their overdraft.

Getting over the overdraft

At the moment, there are several accounts that offer a 0% interest period for a limited time, but taking advantage of this offer would mean changing your bank account.

Surveys in the past have revealed that people are more likely to change the football team they support, than change their bank account provider. Studies even found that most people are likely to stay with their current bank longer than they will stay in their longest relationship!

This proves that although there are great offers available in the personal banking field, most people are too lazy or too loyal to change their account over. Most people feel it is a hassle to swap their bank account over to another provider, but in the long run, it could prove very beneficial.

 

Getting Help With Overdraft Debt

If you are struggling to pay off an overdraft, whether it is a large debt, or a modest debt, Sterling Green can help. We deal with a range of debts, including overdrafts, personal loans, credit cards and store cards. We aim to freeze all interest and charges on your accounts and provide excellent service so you don’t have to feel the burden of managing your debt alone.

 For a free consultation and quote call us on 0161 083 2827.

Written by Katie Simpson

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Posted in Debt Management, Loans, News & Features | No Comments »

1.4 Million Brits Stung By Huge Tax Bill After HMRC Blunder

Wednesday, September 22nd, 2010

As a result of the recent tax blunder at HMRC, a total of 1.4 million workers in the U.K will be hit with an unexpected tax bill in the coming weeks. The average owed amount per person being ÂŁ1,428.

This devastating mistake came about when HMRC merged its 12 year old computer system with a newer system. Each system held different information about workers, and when the systems were merged, discrepancies regarding how much tax people had paid, and how much they should have paid were revealed.

A total of ÂŁ2bn has been underpaid through the PAYE system over the past two years, while ÂŁ1.8bn has been overpaid.

Although this will be good news for the people who have overpaid as they will receive a rebate, individuals who now find that they owe money will face a huge blow to their finances.

With millions of letters being sent out by HMRC this week, it is a tense time for everybody.

According to HMRC, the individuals most likely to be affected are those who have experienced a change in personal circumstances over the past two years.

This includes pensioners with more than one source of income, anyone who has changed job, or employees who have received company benefits within the last few years, such as a company car.

With average personal arrears standing at over ÂŁ1400, many people stung are set to struggle financially as they see a drop in income each month.

The recession has left many people in financial difficulty and added arrears to the taxman will no doubt push some individuals into financial despair.

With Christmas fast approaching, this tax bombshell will prove a terrible blow for families with children and many will have to further tighten their belts.

If you owe any tax that you feel you will struggle to repay, now is the time to take action.

Here at Sterling Green we offer a range of bespoke financial solutions, one of which is a tax debt program. This program aims to clear your tax debt in the least possible time at a rate that is affordable for you, based on your circumstances. 

We negotiate with HMRC on your behalf to reduce your monthly payments and we deal with your debt on your behalf so you can relax and get on with your life without the stress of worrying about your debt.

We have a friendly team of experienced tax advisers who will guide you every step of the way throughout your tax management plan and keep you updated. You don’t even need to deal with post or phone calls from HMRC, as your personal finance manager will handle all correspondence for you.

We can help with most types of tax debts, including PAYE, self-assessment, national insurance and VAT. We also stop any court action against you, such as CCJs, bailiff visits, repossession orders and we protect you against bankruptcy.

 For more information, call us on 0800 083 2827, and discover what peace of mind really means.

Posted by Katie Simpson

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Posted in Debt Management, News & Features, Tax Debts | No Comments »

More Than 1/4 Of Women Will Rely On Partner’s Pension When They Retire

Wednesday, September 22nd, 2010

According to new research by Prudential, more than 1 in 4 women expect to be forced to rely on their partner’s pension when they reach retirement age.

The survey found that 28% of women over 40 who have not yet retired said that they expected to be reliant on the income of their partner when their working life comes to an end.  A further 22% of the women questioned revealed that they are likely to rely on a basic state pension or benefits as their main source of income during their retirement.

Adding to these figures, a third of women interviewed said that they either didn’t know, or didn’t understand the details of their spouse’s pension savings. This is startling, as so many of these women plan to rely on a partner’s income without knowing what, or how much money they will be receiving. The research also revealed that 62% of men who are living with a partner are set to receive pensions that would support themselves only.

There is a vast difference between what the average working woman can expect to receive upon retirement, compared to what the average working man will receive. The average retirement income for a female currently stands at £12,200 per year, while men are set to receive and average of £19,600 per year. This is solid proof that there is still a gender gap when it comes to earnings and women are set to be financially worse off than men in the future. Adding to this, they will be reliant on their husband’s income for years to come.

A reason for such a dramatic difference in pension income is that women are more likely to opt out of pension savings during their working life. Also, more men are working in high-powered positions than women, and they tend to receive a substantial pension when their career comes to an end.

In February 2010, Prudential also carried out research which discovered that 35% of women who were planning on retiring this year will have an annual income that is below the poverty line. This is a worrying fact, as many people still have outstanding debts to tackle after they retire. With little income and the cost of living on the rise, daily expenses could prove unmanageable for the average woman of pensionable age.

Now is the time to take action and set up a pension scheme that will accommodate future price rises and ensure a comfortable retirement. Living on the bread line with outstanding balances on credit cards, loans or mortgages is a  juggling act and can cause a lot of stress at a time when pensioners should be enjoying their retirement and not worrying about bills and living costs.

As well as now being a great time to put a pension plan in place, it is also a good time to tackle any outstanding credit before retirement comes.

With years of experience in helping people manage credit and taking the stress of debtors’ shoulders, Sterling Green has a number of options that are all bespoke to each of our clients’ personal circumstances.

If you feel you struggle with debt, or are worried that you may struggle in the future, now is the time to act. For a free consultation with one of our friendly, qualified advisers, call us on 0800 083 2827.

Written by Katie Simpson

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Posted in Debt Consolidation & Re-Mortgages, Debt Management, Loans, News & Features, Tax Debts | No Comments »

Energy Prices Skyrocket For 1.2 Million Customers

Wednesday, September 8th, 2010

From October, electricity prices will rise by 2.6% for 1.2 million customers as gas and electricity giant EDF Energy are hiking up their prices.

The increase, which is due to commence on 1st October 2010 will affect customers in 11 out of 14 energy regions across the country. This means the average household electricity bill will rise from ÂŁ429 to ÂŁ438 per year, and the average dual fuel bill being provided by EDF will increase from ÂŁ1,159 to ÂŁ1,167.

This will add to the financial strain and could result in further household debt, as many people are already struggling to keep up with monthly commitments.

EDF Energy said that a rise in distribution and transmission costs were to blame for the price hike and announced they would be writing to each affected household to explain the increase in fuel costs.

It was only in July that Ofgem announced its plans to investigate two different energy suppliers for not adhering to their pricing regulations, which prohibits energy firms adjusting prices for gas and electricity throughout different parts of the country.   

Despite Ofgem refusing to disclose which two companies were being investigated, suspicions have fallen on EDF for some time. It is unlikely EDF will be gaining any new customers after this revelation, at a time when everyone in the country is trying to save money wherever possible.

The best thing customers can do at the moment is shop around for the best energy deals. With approximately £11 extra being added to EDF’s standard tariff, many people could find a better deal. Although the wholesale price of gas and electricity remain fairly low, additional overheads are rising, causing the higher prices for fuel.

 Despite many people’s concerns that all suppliers will raise their prices, it hasn’t happened yet, so there are still plenty of fixed price deals and lower rates to be taken advantage of with alternative suppliers.  No doubt a lot of EDF’s customers will feel great disappointment at their higher cost energy bills and will seek power from elsewhere.

 If you or someone you know has gas and electricity arrears that are proving difficult to pay off, Sterling Green can help. We deal with a variety of debts including utility bills from previous providers or properties, credit card debts, personal loans and catalogue arrears. We work to negotiate an affordable sum to pay toward your debt each month. This sum can work around your personal circumstances and is flexible

 If you feel you cannot keep up with your credit commitments, we can talk to the people you owe money to, and agree a lower payment with all interest and charges stopped against your accounts.

 This debt management plan does not affect your mortgage or Hire Purchase agreements and is not legally binding like an Individual Voluntary Arrangement.

 For more information please call us on 0800 083 2827 to speak to one of our friendly advisers.

Posted by Katie Simpson ©

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Millions Take Part Time Jobs Due To Recession

Wednesday, September 1st, 2010

New research by the Office of National Statistics found that 7.84 million people in the U.K are working part-time in an attempt to resolve financial issues caused by the credit crunch.

 As Great Britain struggles to claw its way out of the recession, and employment vacancies are few and far between, millions of people are taking whatever they can get.

Many workers have also been forced to work part-time hours in a previously full-time position, as companies are struggling to stay financially afloat at this difficult time. Millions of businesses have had to cut employees’ hours in a bid to keep their companies from entering liquidation.

Within the first quarter of 2010, 184,000 jobs were created. A staggering 115,000 of these were part-time vacancies. This shows that firms are opting to hire part-time staff during these times of economic uncertainty. There are several reasons for this, the most prevalent being that part-time workers offer flexibility within their role and their hours can adapt depending on when the busiest business times are. Another common reason is these companies can still keep their staff, and keep their business trading, but have less expenditure.

Bank Of England Governor Mervyn King recently warned Britons that they can expect to see a rise in inflation, but a decline in the rate of economic growth in the near future.

Vicky Redwood, chief UK economist at Capital Economics said: “The rise in part-time workers shows that people are taking whatever is available to them. It reflects employers’ nervousness about the strength of the economic
recovery because of the belief that it’s easier to get rid of part-time workers than full-time.”

This will no doubt bring back fear to part-time workers that their jobs may be in jeopardy. Also, with more and more applicants applying for each available position, the chance of securing a job becomes slimmer and slimmer. People are hoping that the economy will begin to recover soon to avoid unemployment rates hitting record highs.

Although people are worrying, businesses claim that by reducing employees’ hours, they have avoided making mass redundancies, thus leaving their employees in a better position to handle the tough times until the economy recovers.

KPMG, a professional services firm, says it has saved £4 million or the equivalent of 100 jobs by having almost 25% of its workforce on voluntary 3 and 4-day-working-weeks throughout the past 2 years.

According to figures from the Treasury, the number of women in full-time employment plummeted by 8,000, but the number of females in part-time roles increased by 39,000.

Currently, the amount of employed women aged 16-64 stands at 65.6% while the number of employed men within the same age range stands at 75.5%. This proves that women are the hardest hit by the economic downturn and will likely feel the pinch more than U.K. men.

The Treasury has estimated there will be 600,000 job cuts within the public sector over the next 5 years, and experts have warned that this will far outweigh any rise in job opportunities from the private sector. This revelation is extremely discouraging to anyone working within the public sector and will surely cause more angst within the workforce.

Overall, it is encouraging to know that a positive thing has arisen from the negativity surrounding the millions of redundancies over recent years. At least businesses are attempting to hold onto their employees, even if they are on reduced hours and reduced pay. Slowly but surely, the economy looks set to recover. Even if this is not going to happen for some time, it is reassuring to know that more employment opportunities are arising from the recession.

Written by Katie Simpson ©

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