ClearDebt News - IVA, Bankruptcy, Debt Management and Consolidation

Struggling borrowers ‘missing debt repayments’ as living costs rise

ClearDebt — Sat, 11 Oct 2008 10:00:00 +0000

One in ten borrowers have missed debt repayments as households struggle to cope with the rising cost of living, it has been claimed. Research from MoneyExpert.com has found that 11 per cent of people have missed deadlines for payments over the past six months. It showed that credit card debt is one of the biggest burdens on [...]

Banks start to lower mortgage rates

ClearDebt — Fri, 10 Oct 2008 10:00:00 +0000

It appears that debt help may be on its way for many borrowers as banks and building societies began to cut rates in line with the Bank of England’s decision to lower the central figure to 4.5 per cent. Woolwich, part of the Barclays group, has reduced its standard variable rate by 0.5 per cent to [...]

Interest cut welcome but more action is needed, says Rics

ClearDebt — Fri, 10 Oct 2008 10:00:00 +0000

Although the Bank of England’s decision to lower interest rates to 4.5 per cent will help flagging financial markets, more action is needed to stave off a recession, it has been claimed. Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors (Rics), said that the response from the Bank to the economic crisis was [...]

Housing market ‘improves but earnings still stretched’

ClearDebt — Fri, 10 Oct 2008 10:00:00 +0000

Although the housing market is showing signs that it is stabilising, restrictions on people’s incomes will continue to create challenges, it has been suggested. Commenting on the Halifax house price index for September, chief economist Martin Ellis said that the overall price decrease was similar to that of the past three months, indicating that things are [...]

Market conditions have “deteriorated sharply”

ClearDebt — Thu, 09 Oct 2008 10:00:00 +0000

The Council of Mortgage Lenders (CML) has announced that it considers conditions in the financial sector to have “deteriorated sharply” over the past fortnight. It has called on the Bank of England to act on the country’s debt worries and acknowledge that concerns about economic downturn now outweigh that of inflation. Restricted funding continues to affect the [...]

Interest rates cut by Bank a day early

ClearDebt — Thu, 09 Oct 2008 10:00:00 +0000

Interest rates have been slashed by 0.5 per cent a day earlier than anticipated after a special meeting was held a by the Bank of England’s monetary policy committee (MPC). It is part of a coordinated plan of action along with several foreign banks after financial markets “deteriorated very markedly”, the MPC stated. The Bank worked in [...]

Government and Bank of England action ‘could alleviate debt’

ClearDebt — Thu, 09 Oct 2008 10:00:00 +0000

The new measures announced today by the Treasury and the Bank of England “could not have come soon enough”, it has been claimed. James Caldwell from the Fair Investment Company has hailed the package of support unveiled by chancellor Alistair Darling and the 0.5 per cent interest cut announced by the Bank’s monetary policy committee. The banking [...]

One in ten ‘feel debts spiralling out of control’

ClearDebt — Wed, 08 Oct 2008 12:27:54 +0000

One in ten borrowers feel that their debts are out of control, new research has suggested. With the cost of basics such as energy and food on the rise, more people are struggling to cope with their financial difficulties, the survey from moneysupermarket.com has revealed. It showed that 31 per cent of people have taken out a [...]

Consumers warned about sale and rent back schemes

ClearDebt — Wed, 08 Oct 2008 10:00:00 +0000

Safe Home Income Plans (Ship) has advised consumers to be aware of the differences between sale and rent back schemes and equity release plans when attempting to raise finance on their homes. The organisation warned that while those who opt for equity release are usually protected by Ship and the Financial Services Authority, the sale and [...]

Personal loan rates ‘increased over past month’

ClearDebt — Wed, 08 Oct 2008 10:00:00 +0000

Eight lenders have increased their unsecured personal loans rates over the past three weeks, new research has found. The study from uSwitch also showed that the number of such loans available fell from 56 to 52 during this period. Black Horse hiked rates by nine per cent and the Bank of Ireland by 1.8 per cent. Lloyds TSB, [...]

Minimum repayments ‘can lead to prolonged debt’

ClearDebt — Wed, 08 Oct 2008 10:00:00 +0000

The practice of suggesting a minimum monthly repayment on a statement can lead to higher credit card debt, it has been claimed. Many credit card customers are influenced by the minimum amount outlined on bills and make lower repayments as a result, leading to more interest being accumulated, according to new research. It has been carried out [...]

More families ‘considering living under one roof’ to avoid debt

ClearDebt — Wed, 08 Oct 2008 10:00:00 +0000

More Brits are considering extending their homes or moving in order to house more members of the family, new research has claimed. One in four people would expand their properties or move to a larger one to accommodate extra people, according to a survey by Halifax Home Insurance. It revealed that 31 per cent would do so [...]

First-time buyers ‘must make sacrifices’ in order to purchase a home

ClearDebt — Tue, 07 Oct 2008 10:00:00 +0000

First-time buyers have been urged to carry out debt management in order to get onto the property ladder. Michael O’Flynn from website FindaProperty has claimed that borrowers must make sacrifices if they wish to own a home in the current economic climate. As lenders tighten their loan criteria, it is “highly unlikely” that people will be granted [...]

Debt-laden students ‘feel out of control of finances’

ClearDebt — Tue, 07 Oct 2008 10:00:00 +0000

One in three students feel out of control of their finances, new research has revealed. A survey from GE Money has found that 35 per cent of those in full-time education feel that they are not managing money matters well. Around half the student population have debts of over £5,000 and only one in four believe that [...]

More people ’seeking advice on debt’

ClearDebt — Tue, 07 Oct 2008 10:00:00 +0000

Around 50 per cent of people are more likely to seek out free debt help due to the rising cost of living, it has been claimed. Research carried out for the Promoting Advice coalition - a joint venture between six organisations including Citizens Advice and Age Concern - has found that escalating bills have led more [...]

Interest rates ‘could be lowered this week’

ClearDebt — Tue, 07 Oct 2008 10:00:00 +0000

Interest rates may be cut by the Bank of England this week, several financial experts have predicted. In a poll of 12 analysts, seven stated that they expected the Bank’s monetary policy committee (MPC) to lower the central rate when it meets on Thursday October 9th. Speculation has been growing in the financial world about whether the [...]

Debt ‘a problem for people aged 50-60′

ClearDebt — Mon, 06 Oct 2008 10:00:00 +0000

Debt is an increasingly significant problem for pre-retirees, it has been claimed. Research from Payplan has found that the average unsecured debts of those aged 50-60 stood at £41,400, 25 per cent higher than the level owed by other age groups. In addition, it revealed that the average repayment period that pre-retirees agreed to under a debt [...]

More backpackers ‘using prepaid cards’

ClearDebt — Mon, 06 Oct 2008 10:00:00 +0000

Backpackers are turning to prepaid cards in an attempt to avoid credit card debt while they are travelling, it has been claimed. Tom Griffiths, founder of gapyear.com, said the prepayment method is also popular with backpackers as traditional cards often get cancelled when people use them abroad. “This is because the computer sees a card that hasn’t [...]

Brits ‘worry about debt while on holiday’

ClearDebt — Sun, 05 Oct 2008 10:00:00 +0000

Worry over debt is spoiling many Brits’ holidays, it has been claimed. Several people are unable to forget about financial concerns while they are taking a break abroad, according to research from American Express Travellers Cheques. Despite holidays being intended as a time of rest and relaxation, 70 per cent of respondents said they are troubled by [...]

Brits eating less healthy food, says debt charity

ClearDebt — Sat, 04 Oct 2008 10:00:00 +0000

One in three Brits are eating less healthily as a result of the economic downturn, new research has suggested. Christians Against Poverty, a charity that offers debt advice, commissioned YouGov to carry out a study into how the credit crunch is affecting people’s finances. It found that 32 per cent are turning to cheaper processed food - [...]