Archive for the ‘Debt Management’ Category

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The Best Debt Management Advice Around

Wednesday, November 3rd, 2010

 With the current economic climate,  personal debt has become a big problem for a lot of people. Utility bills, food and childcare costs are all rising in price and if you add juggling credit card and loan repayments into the mix, it’s a recipe for disaster if keeping up with each bill is a strain.

Living in a cycle of debt is draining in many ways. Debt cannot be ignored and is the source of much worry for a lot of people nowadays. If bills are piling up and the problem feels impossible to solve, you must seek help immediately. Debt does not get better; the situation only becomes worse when it is left alone. Interest is accruing daily on debt which means the balances will continue to rise.

If you are in debt, the best thing to do is to tackle the problem as soon as you feel you are out of your depth. Late payments, over the limit charges and annual fees can all make debt problems a lot worse, not to mention the millions of people who are stung each year by hidden charges associated with loans, credit cards and store cards.

If this sounds familiar, a debt management plan may be the solution to your problems. A debt management plan works by establishing how much money you have coming in each month, versus how much is going out each month. This leaves a figure which is referred to as ‘Gross Disposable Income’ which is a set figure that is affordable for you to pay each month toward your debts, after taking into account your other financial commitments. This method ensures you will always have enough money to live on and also to pay all your bills without having to worry about your individual creditors.

This monthly payment goes toward paying off the capital debt that you owe to your creditors. Reputable debt management companies like Sterling Green work to freeze all interest charges on your accounts so that you are not just paying the interest that has been accrued each month without chipping away at the debt.

Another benefit of a debt management plan is that you do not have to put up with telephone calls or letters from your creditors asking you for money. Here at Sterling Green we provide you with a personal finance manager who will manage your finances for you, as well as dealing with all correspondence from your creditors and they will personally liaise with loan and credit card companies so you can relax and get on with your day to day life knowing that your debts are being paid each month and the balances are coming down.  

 For more information, call us free on 0800 083 2827 to find out how we can help you on the road to becoming debt free.

Written by Katie Simpson

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

Reduction In Income Is Main Reason For Debt Problems

Wednesday, October 20th, 2010

According to new figures released by a debt solutions company, the number one cause of debt problems in the U.K is a loss in monthly income.

More than 4,500 people were surveyed between March and September 2010. The results revealed that more than 1/3 of people who sought debt advice during this period cited a loss of income as the main reason for their financial struggle.

 The term ‘loss of income’ refers to a pay cut, loss of working hours or redundancy.

 The survey of debt management clients found that the second reason for people struggling with debt was because of ‘spiralling debt’. A massive 23% of people questioned admitted that years of juggling various debts had led to them growing until the minimum repayments were too high to meet every month.

 A further 12% said they had poor financial management skills and that had caused them to reach the point where they needed to seek advice.

 Other reasons for needing debt help included the birth of a child, increased living costs, ill health and bereavement.

 These results prove that the recession is very much ongoing for a great number of people and financial worries are becoming more and more common. With businesses trying to cut costs during these difficult times, job loss for some is inevitable, as is loss of income. The fear of losing employment is also a main cause of stress for employees, which can lead to illness and the need to take sick leave. This can result in a never ending spiral of debt that seems impossible to escape from.

There are many options available if you are struggling to meet your repayments each month. These include a debt management plan, a remortgage and a tax debt plan.

If you are struggling with debts, call one of our experienced financial advisers today. All calls are confidential and we provide bespoke advice and assistance to help you gain peace of mind.

Call us on free phone 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 »

Elderly Citizens Drowning In Debt

Wednesday, October 13th, 2010

 New research has found that thousands of pensioners are drowning in debt, with a large number owing in excess of £50,000.

Insolvency experts said ‘unscrupulous’ lending by credit companies is resulting in pensioners being able to borrow large amounts of money that they cannot realistically pay back.

NancollasGreer, a debt advice company, said that of those who approached them, the over-60s had bigger liabilities than any other age group. Pensioners were revealed to owe an average of £52,000 each, compared to an average personal debt of £15,000 for under-30s.

Many pensioners today are feeling the pinch due to the rising cost of living. With little opportunity to earn a good salary, a huge number of pensioners are on a fixed income. In a lot of cases, their only source of income is a state pension which does not increase when the price of food and utilities rises.

While younger people are able to get a better job or promotion to help them repay loans or credit cards, pensioners are stuck with few options. This may explain why younger people have less debt. They are able to take on a 2nd job to boost their monthly income, but elderly people don’t have that opportunity as they are less able to do very active jobs and work long hours. This results in their debts becoming larger and larger and is the cause of much stress to citizens who should be enjoying their retirement.

Research shows that many pensioners who have personal debt are under greater stress than younger citizens who have similar levels of debt. Many older people do not tell their families about their financial struggle for fear of being a burden. They were also found to worry about leaving debt behind that their families may have to repay.

NancollasGreer surveyed pensioners who had unsecured debts and discovered that almost 70% of over-60s have a credit card and of these, almost 15% have more than 4 credit cards.

Mark Neal, managing director of Economic Lifestyle, a retirement housing company, said: ‘We regularly see clients who are heavily in debt. Generally speaking, they are not senselessly running up debts – they are simply doing whatever they can in order to survive.’

Having accrued large amounts of debt, record numbers of people of pensionable age are forced to work instead of relaxing and enjoying their retirement. The number of pensioners who currently work stands at over 1 million. This figure has risen by roughly 150.000 since 2008. Many of these people are working full time to make ends meet as they struggle to make the minimum repayments to all of their creditors.

If you are worried about debt, Sterling Green is here to help. We have a team of experienced advisers who are here to help you with your finances. We have a range of financial management plans which can include credit card, store card, catalogue and personal loan debts. We also offer a remortgaging service where we work to find the best deal to suit you and your circumstances. Each plan is bespoke and we deal with all your creditors so you can relax and enjoy a stress free life.

For a free consultation call us on 0800 083 2827.

Written by Katie Simpson

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

Mortgage Arrears On The Rise

Wednesday, October 6th, 2010

New research shows that mortgage arrears are on the rise in the UK with a record number of people falling behind with their monthly mortgage repayments. 

At a tough time for the economy, more and more people are affected by the credit crisis, which means struggling on and trying to retain enough money each month to pay all the bills. With the cost of living rising, and wages staying the same, many are not only fining their monthly bills unaffordable, but also their mortgage payment.

At the same time, the Association of Mortgage Intermediaries in the UK has called for less restriction in the mortgage market, meaning it will be easier to obtain a mortgage. The past few years have proved tough for first time buyers and with fewer lenders, many people have been unable to secure a mortgage. The AMI has also asked that more advice be given to consumers when they have an initial meeting regarding a mortgage, as a huge number of people are unable to meet their repayments on their mortgage. This shows that lenders will need to further assess the affordability of a mortgage to each new client. This will hopefully reduce the number of individuals who are struggling, and new mortgage holders will be better equipped to deal with a potential drop in income.

Recent figures published have shown that the number of houses that were repossessed in 2009 was well over 40,000. This figure is astronomical and further proves how much affect the economic crisis has had on average families.

With unemployment on the rise, businesses going into liquidation and also personal bankruptcy on the rise, it is no wonder people are finding themselves unable to keep up with their mortgage payments.

The important thing to remember is, if you are struggling to keep up with bills, it is essential that you seek help immediately. A mortgage is the last debt you should miss payments on. If you cannot afford to pay all your bills, you must prioritise your debts. You should always pay your mortgage on time if it is possible.

If you have a mortgage or a secured loan on your property, these are priority debts. It is essential that these payments be made each month as having a roof over your head is the most important thing. If you then feel you cannot pay your other bills, such as credit cards, loans and utilities, you must then contact a financial solutions company immediately.

Financial management companies offer a range of services to suit your individual needs. Here at Sterling Green we can offer debt management plans, help with tax arrears and even a remortgage.

All our financial plans are bespoke and our friendly team of experienced advisers will guide you toward the solution that is right for you. All our plans are specifically designed to ensure you are debt free in the least possible amount of time.

 If you are worried about mortgage debt, credit card debt or have fallen behind on any of your monthly repayments, call us on 0800 083 2827 for a free consultation.

Written by Katie Simpson

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

¼ 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 ¼ 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 £1,428.

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 £2bn has been underpaid through the PAYE system over the past two years, while £1.8bn 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 £1400, 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 £429 to £438 per year, and the average dual fuel bill being provided by EDF will increase from £1,159 to £1,167.

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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Debt Collection Firms See 30% Drop In Business

Wednesday, August 25th, 2010

According to astonishing recent news, debt collection firms have seen a significant decline in business since the beginning of the credit crunch. Figures show they have experienced between a 25% and a 30% drop in business over the last few years.

Most people would think that bailiffs would have benefited from the economic downturn, but with increasing numbers of people being made redundant, many people are keeping a close eye on their outgoings.

In a shocking revelation, the head of one of Britain’s leading debt recovery organisations, bailiffs have been unlikely victims of the recession.

Jamie Waller, founder and managing director of JBW Group, said that their lack of business at the moment is due to people being more financially conscious and seeking advice on their debts before their situation becomes serious.

He told the Daily Mail newspaper: “People are taking a more careful approach to their finances since the recession started. It’s had the reverse effect, which has left many bailiff companies overstaffed.â€

The Enforcement Services Association, the bailiff trade body, confirmed that the recession was affecting their business, stating that the volume of debt referred for collection has dropped 10% compared to last year’s figures.

With the state of the current economy, debt is discussed much more often and people do not feel the need to conceal their struggle or brush financial problems under the carpet. The more publicity the credit crunch receives, the more likely people are to admit they are having financial difficulty. Thus meaning, they are more likely to seek advice and assistance with those problems before debt collection agencies have a chance to knock at their doors.

Confirming that consumers have become more finance conscious, Waller added: “We are now seeing that 60% are paying up after receiving only a letter.â€

In past years, many people who had credit would wait for a final notice before making a contribution toward their debt, but now people are worried for their future. Many people fear for their jobs as redundancy is rife, and do not want to make any hasty decisions when it comes to borrowing money. The recession has caused people to think twice about accumulating debts that they cannot repay.

Recent figures also show that more bailiffs are dealing with debts   over the telephone instead of turning up on debtors’ doorsteps. This is likely due to lenders being more relaxed about calling in money owed to them. Also another factor is that the Bank Of England Base Rate is at an all-time low of 0.5%, meaning less people are falling behind on their mortgage payments. This in turn is creating less debt for the bailiffs to chase, which is bad news for debt recovery businesses, but no doubt a comforting thought to debtors!

Written by Katie Simpson ©

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

Store Cards – The Facts

Wednesday, August 18th, 2010

Store cards can be very appealing, offering discounted shopping on a buy-now-pay-later agreement. But store cards can be very dangerous if they are not used carefully.

Despite the discounts and convenience they provide, store cards can come at a hefty price with many attaching an annual percentage rate (APR) of up to 30% on your purchases.

Even if you begin use store credit for small purchases, things can easily spiral out of control. Many people nowadays are struggling to meet their full repayments on credit and store cards due to the rising living costs, resulting in high interest charges and mounting bills.

Be smart about your card use

Credit and store card use is commonplace at the moment. If you regularly use store credit, you need to be clever about it.

Firstly, you should always read the terms and conditions of the credit agreement. Many stores offer varying interest rates so it is vital that you check the APR percentage before you spend anything. Some stores offer interest rates as low as 13%, whereas some have a whopping 30% APR.

If you feel you are able to manage your finances well, it may be beneficial for you to use store credit, but you must be sure that you can clear the full balance when you receive the bill. Store cards don’t pose a problem if you are disciplined enough to clear the accrued balance within the interest-free period. Most interest free periods range from 35-55 days.

Where to turn if store card debts are mounting

If you find yourself unable to pay off your store card debt, and find the balance you owe is continuously rising, it may be a good idea to consider a debt management plan.

Debt management plans can cover all of your unsecured debts, including credit cards, store cards, catalogues, unsecured personal loans and overdrafts. All debts would be grouped together and an affordable monthly amount will be decided by you and the debt management plan provider. This monthly fee would then be paid to the company providing your plan and they would then manage your debts for you.

A great benefit of a debt management plan is that you do not have to liaise with your creditors any more, and the interest and charges being added to your accounts will be stopped indefinitely. This means that with each monthly payment you make, you will only be paying toward the capital debt that you owe.

Debt management plans stop the cycle of debt and give peace of mind to debtors, in knowing that the balances on all debts are lowering each month, until the debt is paid off.

While engaged in a debt management plan, you will be assigned a personal finance manager, who will keep in regular contact and offer advice and assistance wherever it is needed. They will also be able to update you on the status of your finances, and will be able to tell you exactly how long it will take before you become debt free.

For a free consultation with one of Sterling Green’s qualified financial advisers, call 0800 083 2827.

Written by Katie Simpson ©

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