Posts Tagged ‘personal debt’

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 »

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 »

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 »

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 »

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