Posts Tagged ‘debt advice’

Millions Can’t Afford To Retire

Wednesday, December 1st, 2010

A massive 4.5 million people over 50 years old expect to work beyond the state retirement age according to new research conducted by insurance and retirement firm LV.

The study found that more than half of over-50s expect to work up to 5 years beyond retirement, more than ¼ expect to work 5-10 years past retirement and 20% believe they will be working past the age of 80.

Furthermore, the survey revealed that almost twice as many women (66%) than men (34%) expect to be working well past retirement age.

Recently, the new Coalition Government announced that the state retirement age is set to rise from 60 for women and 65 for men, to age 66 for both genders by 2020.

LV found that 66% (almost 2.5 million) of late retirees will continue to work because they cannot afford to retire and would not be able to survive on the reduced income of a state pension.

Last year, due to the recession, many people had to decrease their pension payments because the cost of living rose. Among the over-50s, the total pension reduction reached almost £18 billion.

The research also revealed that a fifth of retirees have returned to work because their monthly pension didn’t cover their living costs. 4% of people who had previously retired returned to work full-time, 10% went part-time and 6% took on unpaid or voluntary work. Of the people who did not return to work following retirement, over 1/3 admitted they missed going to work and found it difficult to survive on a state pension.

In another shocking revelation, 16% of people of retirement age are working more hours than they did before their 50th birthday in an attempt to boost their savings.

When the subject of the Government’s imminent spending cuts was risen, a huge 40% of over- 50s expressed concern for their future savings and expect to have a low income during retirement. Only 2% of pensioners thought they would be better off after the spending cuts. 

This shows that citizens of pensionable age are really worrying about their future quality of life due to the economic downturn and the upcoming Government cuts which will no doubt affect pensioners and force many into continuing to work, when they would otherwise retire.

Many people of pensionable age are finding it impossible to cover all their bills each month on current wages, let alone a reduced pension. Many over-50s are still paying off a mortgage and various other debts. Crippling charges on credit cards and personal loans exacerbate the situation and leave older citizens with no choice but to continue working in order to meet repayments.

 If you feel your debts are a problem, or could become a problem in the future, Sterling Green can help. Debt management plans offer an easy way to manage your debt. We communicate with your creditors on your behalf and negotiate for your interest to be frozen so you can focus on saving money and can enjoying your retirement that bit earlier.

 Call us free on 0800 083 2827 to find out how we can help you.

Written by Katie Simpson

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

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

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Posted in Debt Consolidation & Re-Mortgages, Debt Management, Loans, 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 »

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 »

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 »

U.K Residents Conceal £55bn Worth Of Debt From Partners

Tuesday, May 11th, 2010

We all know how hard the recession has hit in the past year. Trouble with keeping up with repayments and juggling what feels like hundreds of financial commitments each month are common woes felt by most people at this time. But also there are people who are living with the stress and strain of hiding debts and financial difficulties from their loved ones, often even their partners are unaware of the extent of the debts they have accrued over the years. A recent survey conducted by the Post Office outlines just how serious this problem has become for many individuals.

Recent studies have revealed that more than a fifth of us lie to our partners about how much money we owe. To the extent that as a nation we are concealing £55 billion in secret bills, according to new research from the Post Office.

The average U.K citizen has nearly £10,000 worth of debt, but only admits to owing half that amount when talking to their partners, friends or family. The consequences of these lies, this new survey suggests, are dire.
Nearly 50% of people who are have secret debts suffer with sleepless nights and a fifth experience mood swings, while more than 10% turn to comfort eating and heavy drinking to escape their financial worries, claims the research.

In addition to the afore mentioned  problems, 12% of those surveyed are under so much pressure to keep their debts secret, they even experience problems at work.

Not surprisingly, many secret debtors (6%) encounter relationship difficulties as a result of the strain that their financial burden brings.

“The recession has put a massive strain on many families,” said Doug Strachan, director of financial services at the Post Office. “Many families may be, for the first time, experiencing levels of debt that they cannot control.”

The study also found that the main cause of debt for women was overspending on clothes, with takeaway coffee and chocolate coming in at second place. The primary reason for men’s debts is spending too much on alcohol and gadgets. As well as being the prime reasons for such high levels of credit, these are the expenditures that are most likely to be hidden from others.

“Hiding the extent of debt from a partner or family member may give a false illusion of control or independence,” said Donna Dawson, psychologist. “But the reality is that our mental and physical health suffers.”

In conclusion

Although admitting to having debts that are substantial is embarrassing, honestly really is the best policy. Having read about the level of adverse side-effects many people are experiencing when attempting to conceal their debts from others, the best way to deal with the situation is to avoid spinning a web of lies where your tracks need constantly covering.

Nobody wants to see loved ones struggling with depression or having trouble at work because of the strain of hiding debt problems. If you yourself are covering up debts, start by admitting you have these debts, and research what help is available to yourself. Don’t be afraid to admit your debts are larger than you previously implied. There are people that can help you and your family and partner would most likely want to help and support in any way they can.

Although the initial steps to admitting your troubles will be difficult, you are doing yourself a huge favour by being honest and beginning to put a solution into action. Remember that nothing is worth risking your health.

By Katie Simpson ©

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