Archive for the ‘News & Features’ Category

« Older Entries
Newer Entries »

50% of U.K Families Cannot Pay Debts

Wednesday, November 17th, 2010

According to new research, over half of families are struggling to pay back their debts in the wake of the recession.

Furthermore, the Bank of England has warned that the general cost of living is set to rise again, leaving many people panicked about paying their bills.

The Bank’s Governor, Mervyn King, blamed rising fuel prices, soaring costs of gas and electricity, as well as the 20% VAT hike that is scheduled to come into effect on January 1st 2011.

As well as warning Brits about an imminent price hike in living expenses, the Bank Of England also revealed that more than 1 person in every 2 is unable to pay credit cards, personal loans and other household debts.

The most recent figure of people struggling with the recession has hit an all time high compared to when records began in 1995. The current amount of people feeling the financial pinch stands at 51% of the U.K population.

Collectively, British households owe £1,455 billion in personal debt. The average household now owes almost £9,000. Even more shockingly, if the household has at least one form of unsecured loan, the average debt more than doubles, to over £18,000.

 In its quarterly health check on the economy, the Bank admitted inflationary pressures are likely to push up costs of imported goods in the near future. The rate of inflation is currently 3.1% but is set to rise over the festive period and remain higher for longer than was first thought.

In another survey conducted by life insurance firm Bright Grey, discovered that millions of British people are ‘living beyond their means’.

This common habit of pursuing a lifestyle that is realistically unaffordable is very dangerous and ‘dicing with debt’ during the current economic climate can leave consumers paying debts off well into their retirement years.

There are rising numbers of people who are spending more than they earn each month. The report from Bright Grey showed that women were the worst culprits, spending an average of £600 more than their take-home pay every month, compared with men who typically overspent by £138 per month.

With bills skyrocketing and wages staying the same for the majority of Brits, the pressure is set to mount for the average consumer. If so many people are struggling to meet all the repayments on their debts at the moment, the situation is only going to become worse as prices for clothing, utilities and fuel will rise next year.

On top of the people who are struggling with credit cards and loans, many are also unable to cope with mortgage and rent payments.

According to Credit Action, one home is repossessed every 11.4 minutes in the U.K and every 3.69 minutes, somebody is declared bankrupt. These statistics highlight the extent that the credit crunch and recession has affected our community. With high rates of job cuts, slashes in income and rising living costs, it is unsurprising that many consumers are unable to cope. Added to this, roughly 3 million mortgage holders consider themselves to be ‘constantly struggling’ to find funds to pay the mortgage each month, according to housing charity Shelter.

Furthermore, the debt advice company, CCCS, has recorded a surge in debt management clients who have had homes repossessed, cannot pay their rent or are even sleeping on a friends’ sofa because they cannot sustain their own property.

If you find yourself struggling each month to pay the bills, help is at hand in the form of a debt management plan. If you have a regular income and cannot afford the monthly repayments on your credit cards, personal loans, catalogues, store cards or even your mortgage, Sterling Green can help you find the peace of mind you need.

 We have an experienced team of financial advisers who can give you bespoke advice about the best options available to you.

 Now is the time to take action and tackle your debts once and for all.

For more information call us for a free consultation on 0800 083 2827.

Written by Katie Simpson

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

Young Britons Set To Rack Up Debts This Christmas

Wednesday, November 10th, 2010

A new study conducted by The Co-Operative Group has found that young people under the age of 35 are willing to risk getting into financial difficulty by borrowing substantial amounts of money over the Christmas period.

The study revealed that young U.K citizens feel under pressure to make sure they can afford gifts, decorations, food and other costly Christmas necessities. They also said they felt that they needed to resort to borrowing money to finance their yuletide activities.

This shows that although these people are aware that they cannot afford to overspend at Christmas, they are still willing to obtain credit so that they do not have to worry about budgeting in the December and January months. If young people are to use loans and credit cards to fund gifts and other expenses during the festive period, they could face a financial struggle for years to come if they fail to pay back the money they borrow.

The decision to finance Christmas with credit cards and store cards could be extremely dangerous for Brits’ financial circumstances. Many people who splurge over Christmas have a ‘buy-now-think-later’ attitude, as nobody wants to worry about money over the holidays. But failing to live within reasonable means can result in debtors needing to tighten their belts massively for years to come, just so they can clear the debt that was accrued previously.

The study revealed that 1/3 of under-35s believe they will not be able to cope with the Christmas expenses without borrowing money.

Added to this, The Co-Operative Electrical Group found that consumers between the ages of 24 and 35 are more than twice as likely to have been declined for a loan or overdraft, compared with their elder counterparts.

In addition to these figures, more than 50% of the young adults surveyed admitted that they are unaware of the Annual Percentage Rate charged on their borrowings. This level of ignorance can prove very harmful to individuals’ financial state if a large amount of money is borrowed, but terms and conditions are not properly understood.

Of these youngsters, when asked what they would do if they were declined for a loan or overdraft, 35% admitted that they would seek to obtain credit cards to fund their purchases as opposed to saving instead, and accepting that they could not afford to borrow.

This survey has uncovered interesting information about how young people view their finances and how little importance they place on saving and avoiding credit. The fact that most young people are unconcerned about the effect uninformed borrowing will have on their future solvency is shocking. Poor financial management can result in major difficulties and also spiraling debt which can seem impossible to escape.

If you feel that your debts are becoming out of control, a debt management plan could be the solution to your worries.

For more information call us free on 0800 083 2827.

Written by Katie Simpson

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

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

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

7 Million Brits Are ‘Shopaholics’

Wednesday, October 27th, 2010

According to new reports, 4 million U.K women are ‘shopaholics’, with each owing £3,400 on average. This equates to 1 in 6 British women.

This new report discovered that more and more women are finding themselves in a financial crisis as their spending has become out of control. The main reason for women running up debts on credit cards and store cards is because they are trying to obtain a celebrity lifestyle. A large number of these so called ‘shopaholics’ have even taken out personal loans to maintain their extravagant lifestyles.

At a time when the economy has not yet recovered from the recession and many people have been made redundant or fear for their jobs, some people find comfort in shopping. This attempt to counter negative feelings can prove to be very costly indeed if the situation becomes uncontrollable.

The recent findings have shown that it isn’t just women who have bad spending habits. The study also found that 3 million men in Britain are also shopaholics. This figure equates to 1 in 7 men.

 Men were found to have the most expensive tastes, with the average male spending a massive £570 per month on designer clothes. Women were more likely to spend on the high street, running up an average monthly bill of £300.

Men who considered themselves to be shopaholics were also discovered to spend an average of £338 per month on skincare, cosmetics and beauty treatments, compared with their female counterparts who spend £191 per month.

This shocking research shows that any lessons that were learned during the recession have been forgotten by the millions of people who are continuing to live beyond their means. There are lots of things to worry about these days, like paying all the bills, the mortgage, making sure the kids have new clothes etc. It is hardly surprising that a lot of people find pleasure in shopping. The danger is that the good feeling that people experience after buying new clothes or going to the salon, can become an addiction. This is where the problems begin.

It is always good to treat yourself occasionally, but there needs to be a limit to how and when you can spend. It is a good idea to budget each month, so that you can monitor how much money goes into your account, and how much is coming out. This will ensure you can clearly see how much money you have left at the end of the month and you can enjoy the spare money without worrying that your hobby is becoming a problem.

 If you feel you are struggling with credit card, loan or store card debt, a Debt Management Plan could be the solution to your worries.

Here at Sterling Green we have experienced advisers who create a bespoke plan to help you gain control over your finances. For more information, call us free on 0800 083 2827.

Written by Katie Simpson

Tags: , , , , , , , , , ,
Posted in Debt Consolidation & Re-Mortgages, 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

Tags: , , , , , , , , , , ,
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

Tags: , , , , , , , , , , , ,
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

Tags: , , , , , , , , , , , ,
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

Tags: , , , , , , , , ,
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

Tags: , , , , , , , , , , ,
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

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

« Older Entries
Newer Entries »