Posts Tagged ‘credit card debt’

10% Of Male Pensioners Retire With Debts Of Over £50,000

Wednesday, February 2nd, 2011

According to new research, one in ten men who plan to retire this year will do so with personal debts of over £50,000.

Overall, 1 in 5 retired homeowners are still paying off a mortgage. Research conducted by Scottish Widows UK found that on average, they each owed £38,000.

This further shows that the recession and the current poor economic climate has affected everybody and continues to prove detrimental to people’s ability to pay off their debts, let alone save any money toward their retirement.

Pensioners have seen the biggest increase out of any age group in bankruptcy cases over the last 10 years.  Figures released from the Insolvency Service showed that in 2000, just 309 men over the age of 65 were declared bankrupt. In 2009, there were 1,756, which was a six-fold increase.

Insurance company Prudential gathered data from 10,000 clients which found that 20% of people who plan to retire in 2011 will do so with a degree of personal debts, including mortgage debts, credit card balances and also money outstanding on personal loans and store cards.

The shocking revelation that one in 10 men who plan to retire this year will have debts of more than £50,000 shows how much interest rates can financially cripple people for years, well into their 60s and 70s. The survey found that there is a difference between the level of personal debt of men and women. Only 2% of women hold debts of the same magnitude at retirement age, proving that men borrow more money in their lifetime than women do and have poorer money management skills than their female counterparts.  

 Prudential also asked pensioners who had debts how they would cope with the repayments into their later years. The most popular response was that they would seek employment past retirement age if the repayments became too much of a strain. They also found more extreme responses such as selling the family home in favour of cheaper accommodation, releasing equity in their homes, selling assets and even relying on family and friends for financial support.

This is especially worrying as older people tend to have more difficulty in finding suitable employment, and also jobs are scarce in the wake of the recession, which has seen many businesses forced to cut employees’ working hours and make job cuts in order to stay afloat.

If you or someone you know is struggling with any form of debt, help is at hand in the form of a debt management plan, tax payment plan or remortgage.

Call Sterling Green to speak to one of our experienced advisers today 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 »

Brits Only Worry About Debt When They Owe £16,000

Wednesday, January 19th, 2011

According to new statistics, the average British citizen won’t worry about their level of personal debt until they owe more than £15,837.

The survey, commissioned by life insurance firm Scottish Provident revealed that people would not generally be concerned about outstanding balances on loans and credit cards until they owed almost £16,000. Only then would they begin to consider that they may have a problem paying back the money and may consider seeking help.

It also discovered that the younger generations are even less inclined to view debts as a problem, with young people reaching an average debt amount of £16,646 before they break a sweat.

Scottish Provident said the figures were a worrying indication of how acceptable debt has become to people. In this day and age, it is the norm to have some form of credit, whereas having financial difficulties was taboo in the past. In fact, so many young people have grown up surrounded by family who use credit on a day to day basis, that they are unconcerned about using credit cards and loans themselves. This revelation is somewhat worrying. Because youngsters not fearing financial difficulty, coupled with the fact that credit is readily available for anyone over the age of 18, the chances of these young people being solvent in the future are significantly lower than that of young people 10 years ago.

Currently, personal insolvency numbers have almost hit record levels due to more and more people finding they are unable to cope with their mounting debts.

With the current economic climate and the recent VAT increase, which means good cost more than they did last year, increasing numbers of British citizens are experiencing financial difficulty and are unable to keep up with minimum payments on credit cards and personal loans.

The research conducted by Opinium Research also revealed that people were unprepared for financial emergencies, with 62 per cent admitting they would need to turn to family for help if they were unable to work for any reason. This is a huge concern considering the volume of jobs that have been cut in recent months due to the recession and many people have experienced a pay cut or a loss of working hours as businesses struggle to cope with the economic downturn.

If you are struggling with any debts, or think you may struggle in the future, Sterling Green can help. We offer a range of financial products and our experienced advisors are here to help you find the best solution to suit your personal circumstances.

For a free consultation call us on 0800 083 2827.

Written by Katie Simpson

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Posted in Bankruptcy, 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

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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

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Posted in Debt Consolidation & Re-Mortgages, News & Features | 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 »

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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Don’t Fret Over Your Debt – Help Is On Hand

Wednesday, August 11th, 2010

According to financial experts, it is normal to feel depressed over mounting debts. What you need to remember is the situation isn’t permanent and things will improve. Unfortunately there are people who cannot see a solution to their problems and become so depressed, they contemplate suicide.

We have compiled some important information about this issue and hope that our tips below will help to prevent future tragedy.

Why do people resort to such extreme action because of debt?

A huge problem at the moment is that people just don’t know where to turn when things become difficult financially.

When your credit card bills are mounting, when the mortgage is too expensive, when you can’t find employment, life can seem such a constant struggle that you feel it is unbearable.

“Financial stress can negatively — even severely — impact things outside of the wallet: your health, your job and your relationships,” says David Alecock, a vice president at InCharge Institute, a credit counselling service.

There are several options available to people who are in debt, so why would someone consider committing suicide instead of seeking financial help first?

Where some people have the ability to pull themselves out of a hole, others can find it very difficult and opt for desperate and extreme measures. If a person in financial difficulty develops mental issues such as depression, seeking help can feel impossible.  In addition, people experiencing major stressors such as redundancy,  illness, or loss due to death, or divorce may be more prone to depressive behaviours. All of these stressors can make the financial burden feel even more difficult to bear, and thus making extreme measures seem like the only available option.

Debt and death in the news

There have been many cases reported in the news about people who have found themselves in financial difficulty and have resorted to harming themselves, and even others.

In one recent case reported in national newspapers, a young father in Hampshire took the lives of his wife and two young daughters before taking his own. It was reported that the man had hidden debts from his wife and had been struggling for months to meet his mortgage payments. He had also been anxious about debts he had accrued on credit and store cards.

Another recent case is that of a 60 year old Worcester man who ended his life in May 2010. The man, who had accumulated several thousand pounds worth of debt on credit cards and personal loans, also owed almost £100,000 to friends who had lent him money to help ease the burden of his debts. In addition to this, the gentleman had also missed several payments on his mortgage. He had successfully hidden all his debts from his wife and family and had suffered in silence, without seeking help.

These stories are just two of many tragic cases around the world.

What can we learn from these stories?

“I think people should realize that debt doesn’t have to result in suicide,” says Daniel Reidenberg, a psychologist and executive director of Suicide Awareness Voices of Education (SAVE).

“Too often, people are feeling because of the financial stresses that their only way out of their debt is death. Sometimes they think their family would be better off because of that, and most often, they’re not; they’re far worse. ‘’

Helping a loved one

If you know that a friend or family member is having financial problems, you can offer a sympathetic ear, without judgement. Many people who are in debt want to keep their business private and feel too proud to seek help.This is natural and you can reassure them that any details shared will be confidential.

The power of listening is a great tool and can make a huge difference. Offering discreet help to a friend can be extremely valuable, and the difference between a positive change and a negative one.

Don’t let the debt control you

The hardest part of gaining control of your debts is admitting that you have a problem. This may be difficult, but coming to terms with the issue is a vital part of recovery.

Talking to finance professional can help you see things clearly and put together a plan of action to start controlling your debts.

What you need to do is take a good luck at your income and expenditure and see where you are at the moment. Whether you crunch those numbers yourself or want someone to help you, calling a debt management service is the first step in the right direction.

Friendly staff are on hand to help you devise a plan to get debt free. A debt management plan will involve you making an affordable monthly payment toward your credit, where all charges and interest will be stopped so you don’t have to worry about your debts mounting any longer.

If your creditors are hassling you for money, a debt management company can also put an end to this, ensuring you can get on with your life without having to receive letters and phone calls every day.

Support and crisis help

If you find yourself in a position where you fear you may harm yourself, call The Samaritans helpline on 08457 90 90 90.

If sharing your problems with a friend, or counsellor in person seems like too much at this stage, consider online support groups. iVillage, a website for women, has a message board section with many debt categories, including a debt support group where people share their stories and receive advice and encouragement.

Don’t put off seeking help

Don’t forget that there are people who can help you on the road to becoming debt free.

Financial professionals deal with people’s debts every single day, so there is no need to feel embarrassed. Seeking help is a very brave and very positive thing to do. You should not wait until you hit rock bottom to look for help. Now is the time to look into your options.

There are many solutions available to help with debts and here at Sterling Green, we have qualified financial advisers who will offer a sympathetic ear and some professional advice on how best to tackle your debts. We work with you to find a figure you can afford each month to put toward your debts and we help every step of the way.

Our friendly team are just a phone call away so please do not hesitate to call us on 0800 083 2827, or alternatively, fill in an online form on our homepage so one of our advisers can call you at a time that is convenient.

Posted by Katie Simpson ©

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

OAPs Unable To Enjoy Retirement Due To Mounting Debts

Wednesday, July 21st, 2010

Recent statistics show that pensioners in the U.K owe a mind-blowing £8.4 billion in outstanding debts.

Additionally, almost 600,000 citizens over the age of 65 are still paying off their mortgages, with each individual owing more than  £30,000. Even more worryingly, over 1.5 billion pensioners owe  substantial amounts on credit cards, arguably the worst form of credit to have.

Many over 65’s also owe money on store cards, overdrafts, catalogues and personal loans that they are unable to pay off. Due to high interest rates and charges at the moment, these OAPs are struggling to pay off their unsecured debts with low incomes and pensions. This is resulting in a lot of worried pensioners and  for many of them, it is having  a detrimental effect on their health.

According to the CCCS, the age group with the highest rise in personal debts within the last year were citizens of pensionable age. This is mainly due to the rising cost in living expenses, which their limited imcomes cannot cover.

These difficult times are stopping OAPs from enjoying their well-earned retirement and forcing them into turmoil, juggling debts and general living costs.

Here are some simple tips if you are struggling with debt

1. Prioritise your credit payments

Work out how much money you owe to each individual creditor. Then make sure the biggest debt receives the highest monthly payment, and the lowest debt, the smallest payment, in order to restore some balance to your credit commitments.

Your first priority should be any debts secured to your property or any hire purchase items, as if you miss payments, your home and higher purchase goods can be repossessed by the lenders.

The second priority is any bill that can result in you being prosecuted if you do not pay, such as tax and TV liscence.

2. Look into the best deals on credit cards

You should take the time to shop around for the best deals on credit cards. 0% interest cards are widely available and could save you hundreds of pounds in interest payments.

It is also worth looking into the best rates for gas and electricity. There is much competition between energy suppliers at the moent, so research each company and find out what is the cheapest option for you and whether you are eligible for any discounts.

3. Be aware of any government benefits available to you

Look into if  you are eligible to claim any benefits from the government. Filling in a simple form can be the difference between considerable help, and no help at all. Millions of pounds go unclaimed every year in entitled benefits, so contact your local authority to find out whether you are eleibile for pension credits or council tax benefit.

4. Remortgaging and extra income

Another great solution to your debt problem is a remortgage or downsizing your home. If you still reside in the family home and you feel there is surplus space, you could look into moving to a smaller property and using the profits from the sale of your house to help clear your unsecured debts. If you do not wish to sell, you could opt for a remortgage, providing there is sufficient equity in the property.

Another  solution is to consider taking on a part time job to boost your income. Light work in a shop or call centre can be a huge help to able-bodied individuals.  Short working hours in a comfortable environment are available and your many years of working experience can be very attractive on a CV.

5. Debt Management Plan

Another great option is a debt management plan. These plans can reduce the amount of money that you are paying out on credit each month and also stop the interest and charges you are currently incurring. Many people choose to engage in a plan to make their lives much easier.

While on a debt management plan, you do not have to deal with your creditors any longer. They are banned from calling or writing to you. Instead, your personal finance manager will negociate a lower monthly payment to your creditors and will deal with them directly on your behalf, so you are just making one affordable monthly payment instead of attempting to juggle each individual debt.

Also, as you are not paying out on costly interest rates, you are clearing the capital debt that you owe, so you will be debt free much sooner that you would without a management plan.

Posted by Katie Simpson ©

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

Living On Credit

Wednesday, June 9th, 2010

The Facts

Are you regularly running out of cash before the end of the month? Over 5 million households are using credit cards to pay for general bills and necessities every month in the U.K.

Despite recent reports of a growing economy, average family incomes are tight. Less working hours available, pay cuts and the rising cost of living have stretched family budgets to the absolute limit.

Worryingly, more than 5 million homeowners are now using credit cards to pay at least one household bill each month according to research by moneysupermarket.com.

The problem might be eased if minimum wage was to rise, but that does not look likely due to the amount of national debt at the moment.

Private businesses have just come through the worst recession for years and surviving companies are not going to want to pay their staff more or employ any more people than absolutely necessary as a vast majority made a loss last year, or at the least experienced a slash in profit.

In the public sector, the government’s six billion pound cost-cutting plan could result in up to 750,000 redundancies, meaning a huge financial blow for thousands of families.

How The Cycle Starts

With many creditors increasing minimum repayments, people are getting into a downward spiral of debt that they cannot afford to pay.

This cycle begins when necessities are paid for using a credit card, which then has to be paid off using next month’s wage. Then when the next month comes, there isn’t enough cash to pay the necessities, so the credit card needs to be used again. This cycle continues month after month and is very hard to get out of.

If this situation is not stopped, and the full amount is not cleared as soon as the bill is received, debts continue to grow and monthly minimum payments continue to increase.

Solution To The Debt Problem

In general the only way stop this vicious cycle of using credit, incurring interest charges then spending months or even years paying it back,  is by using a debt management solution.

There are two main debt management solutions to consider – a debt management plan (DMP) and an individual voluntary arrangement (IVA).

The best solution to use will very much depend on personal financial circumstances. However, the key behind both is that they successfully reduce monthly debt payments to an amount which is manageable based on each individual’s income and expenditure.

Once debt payments are reduced, there is no longer any need to supplement income with credit spending as all reasonable household living expenses can be paid out of monies saved on what you would have usually paid to your creditors.

The only way to resolve this problem is either to increase your income or reduce expenditure. In reality, most families are unable to do either, as pay rises are unlikely in the near future and the cost of living is constantly rising.

For this reason, considering a debt management solution is the best thing to do to stop a reliance on credit and fast-track yourself to solvency.

Posted by Katie Simpson ©

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