Posts Tagged ‘Debt Management’

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British Teens Have Unrealistic Expectations About Future Finances

Wednesday, May 25th, 2011

New research has shown that teenagers in the U.K. expect to be earning over £61,700 per year by the time they’re 35 years old.

The survey conducted by The MoneySense Panel revealed that British teenagers have a very unrealistic forecast of their future financial situation. Currently, the national average salary for 30-39 year olds is approximately £24,333.

The research also discovered that young people between the ages of 13-19 expect they will be homeowners before they reach their 25th birthday. However, the reality is very different. Just 1/5 of all first time buyers within the last 5 years have been under the age of 25. This proves that the youth of today need better financial education and need to be made aware of the current economic climate.

Many teens were shown to be already worrying about their finances and a high percentage anticipated being in debt in years to come. As the number of debt worries among young people rises, the number of teenagers earning their own money has fallen. Nowadays, less young people are working a part time job while they study at school or college than in previous years.

These results show that youngsters are concerned about their finances but it also highlights the massive difference between the way teens anticipate their financial future, and the probability of realising a £61,700 salary before they reach 35.

A good way to benefit from this information is to use it to better educate school children about money matters and setting realistic goals for the future. By teaching good money management skills in schools, we can greatly aid these young people in making sensible financial decisions that will minimise the risk of unmanageable debt in the future.

Many young people would benefit from good financial management skills which will enable them to achieve a goal that will enrich their future life, such as paying for driving lessons, saving for a university degree or budgeting so they can place a deposit on a house.

The study, which spanned 5 years, also revealed positive changes in teenagers’ attitude to their finances. 65% of young people believe they had better money saving skills than they did in 2010 and many of these teens are monitoring their money closely in light of the recession.

Almost 83% of the youngsters surveyed said that they had learned new things about money management either at school or from their parents and 2/3 took an interest in their parents’ household finances.

On the whole, this proves that young people are becoming more skilled in the art of financial management and hopefully this useful information can continue in schools and colleges and prove lifesaving for them in the future.

If you are over the age of 18 and are struggling to repay any debts, whether you have credit cards, personal loans or a mortgage, Sterling Green can help find the best solution for you and bring you relief.

Call us free on 0800 083 2827 today.

Written By Katie Simpson

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

What Happens To My Debt Management Plan If My Income Changes?

Wednesday, December 22nd, 2010

If you are using a debt management plan to resolve financial issues, you may be wondering what happens if your income fluctuates while you are on the plan. Read on to find out what would happen if your income improved, or reduced, and what options are available to you.

Depending on the level of debt included, a debt management plan can last for several years. It is likely that individual circumstances will change during this time. Maybe you will receive a wage rise, or gain surplus income from another source, or maybe you will encounter a decrease in income each month. Either way, a debt management program is flexible and non-legally binding so you are free to increase or decrease your payments each month based on your personal circumstances.

Increasing payments

If you experience an increase in income, your personal finance manager will reassess your income and expenditure to determine how much money you have left over at the end of the month to contribute toward your debts, after your necessary bills have been accounted for.

Paying more to your creditors each month is definitely to your advantage if you are in a debt management plan. The more money you pay back each month toward your debt, the faster the balances will come down, meaning the debt will be cleared faster.
 
Saving a lump sum

Another option available to you is to increase your payments to your creditors, but save an amount of your disposable income each month in case of financial emergency, so you do not have to decrease your payments to the plan in future.

Building up savings while on a debt management plan is perfectly acceptable and can have some strong advantages in case of things like unexpected travel expenses, vehicle expenses, or can be handy in case of an unexpectedly high utility bill over the winter period.

You could also use some of the left over money to offer a settlement to your creditors if you feel a ‘full and final’ agreement would suit your needs. A full and final agreement involves you paying a lump sum to your creditor, and in turn they agree to settle the debt and no more payments need to be made.

 Decreasing payments

If you experience a decrease in monthly income and are not able to continue paying the agreed monthly amount to your creditors while on a debt management plan, you may decrease your payments accordingly.

There are some downsides to this approach, such as that your debts will take longer to clear and your creditors may resume interest charges while a new agreement is being put into place.

However, because a debt management plan is flexible, you would be able to reduce your payments, but it is advised that you resume paying the initially agreed sum as soon as financially possible in order to ensure your debt is repaid in the shortest possible time.

 Help is at hand

If you are struggling with debt and feel a debt management plan will benefit you and your circumstances, Sterling Green can help.

Our team of experienced advisers are on hand to offer you advice and assistance with any financial problem and we work to find the best possible solution for you, so you can become debt free in the shortest possible time frame.

For more information call us free on 0800 083 2827.

Written by Katie Simpson

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Posted in Debt Management, Loans | No Comments »

Women Worst Hit By Recession

Wednesday, December 8th, 2010

 Women are being hit the hardest by Britain’s economic meltdown, figures have revealed.

The number being plunged into insolvency in just one year has soared to an all-time record of nearly 65,000, a staggering 175 a day.

The study conducted by the Government’s Insolvency Service discovered that women are being hit almost 3 times harder by the recession than their male counterparts.

Female insolvency figures rose by a huge 22% compared to figures from last year. In comparison, the insolvency figure for males rose by 8%. This goes to show that females are much more affected by the economic downturn than men are at the present date.

Financial experts have concluded that the most prominent reason for this stark difference in figures is that women are attempting to maintain a celebrity lifestyle despite the credit crisis and the poor economic state at the moment.

Some extreme cases that experts have seen are women who try to emulate the popular ‘WAG’ lifestyle by living way beyond their means. These women spend vast amounts of money on credit cards, store cards and even take out personal loans to fund their lavish lifestyles, leaving many in financial dire straits.

People who are classed as being in ‘extreme debt’ have a debt-to-income ratio of more than 66:1. This means that effectively, individuals are spending more than 66 times their annual salary every year.

Records show that there are 64,035 insolvent women at the present time, and of these, just over 45,000 are aged between 25 and 49. This is a large percentage of the figures that young and middle aged women account for.

Furthermore, according to the Office for National Statistics, over 1 million women are currently unemployed in Britain. This statistic is the highest in 17 years, and experts warn the situation is set to deteriorate in the coming years. Shockingly, economists predict that the number of unemployed women is set to rise dramatically by 2012, to 2.2 million.

The Consumer Credit Counseling Service said the majority of its clients declaring bankruptcy are female. The top reasons include living beyond their means, closely followed by the break down of a relationship, loss of earnings and serious illness.

In conclusion, the recent figures surrounding bankruptcy clearly show that women are in more danger of financial meltdown than men. Women must protect themselves by cutting back on lavish spending in order to avoid bankruptcy in the future. Shopping in cheaper stores, holidaying close to home, and even cutting out a morning coffee can all contribute greatly to ensuring financial security in the future. These cutbacks also teach valuable budgeting skills which will give these women the right start in disciplining themselves financially.

If you feel you are struggling to pay any debts, whether it be credit cards, store cards, personal loans or even a mortgage, Sterling Green can help. We offer a range of financial solutions to help you recover from the recession. We offer debt management plans, tax management programs and even a re-mortgaging service.

Our team of experienced advisers are committed to finding the best solution for you. For a free consultation call us free 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 »

The Best Debt Management Advice Around

Wednesday, November 3rd, 2010

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

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

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

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

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

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

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

Written by Katie Simpson

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

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 »

Mortgage Arrears On The Rise

Wednesday, October 6th, 2010

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

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

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

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

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

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

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

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

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

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

Written by Katie Simpson

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

¼ of Brits Cannot Live Without Overdraft

Wednesday, September 29th, 2010

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

This latest information comes as no shock to most people, as the recession has hit everybody hard in recent years. But at a time when the economy is supposed to be recovering, it is clear that for ¼ of the population, financial security seems out of reach.

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

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

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

Interest rate hikes

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

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

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

Getting over the overdraft

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

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

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

 

Getting Help With Overdraft Debt

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

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

Written by Katie Simpson

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

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

Wednesday, September 22nd, 2010

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

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

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

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

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

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

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

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

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

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

Written by Katie Simpson

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

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