April 2008 Archive
Posted on April 30th, 2008 in Debt.
Millions of British consumers are aiming to avoid the financial risk of having a joint account with their partner, it has been revealed.
According to a study carried out by the online payment firm PayPal, more than seven in ten people around the country keep at least some of their cash in an account separate from the partner.
Often this option is taken up by people looking avoid added potential for debt management or money problems, while 17 per cent what to remain unaffected by their partners spending habits.
Reflecting on the research, PayPal’s UK spokesperson Christina Hoole said: "There is a growing trend emerging between partners and how they manage their finances, with people having separate bank accounts so they can keep control of their own finances."
Debt problems are squeezing the finances of many British families and most are now tending to rein in their spending, according to a recent report from the Alliance Trust.
Posted on April 30th, 2008 in Debt.
Confidence among British consumers has dipped in recent weeks as debt problems mount up for millions of people, it has emerged.
Fears about the state of the overall economy and personal finances have seen the GfK NOP’s consumer confidence barometer fall by five points to its lowest level since November 1992.
According to the research firm, food price rises, a housing market slowdown and widespread predictions of a recession have seen Britons become considerably less confident about their ability to spend.
"It will take more than a quarter point reduction in interest rates to alleviate the current gloomy mood of the UK consumer," said Rachael Joy from GfK NOP’s consumer confidence team.
Last week, David Kuo, head of personal finance at Fool.co.uk, said that anyone experiencing debt problems should seek out advice from appropriate sources and avoid the temptation to hide these difficulties and hope for the best.
Posted on April 29th, 2008 in Repossession.
The number of repossessions across Britain this year looks set to be almost a quarter higher than was the case in 2007, it has been revealed.
According to data from the Centre for Economics and Business Research (Cebr), this year will see more than 33,000 people lose their homes as a result of serious debt management and money problems.
It is thought by some that the problems within the housing sector are being made worse by reluctance among lenders to offer deals their customers can afford.
"Unless or until this tap of mortgage finance starts to flow again, the outcome will be a reduction in house prices and an increase in repossessions," said Cebr’s managing economist John Ward.
However, Cebr has also noted that the scale of repossession activity this year will not reach the highs witnessed in the UK during the early 1990′s.
Last week, the debt counselling group Christians Against Poverty warned that millions of British families are being pushed to breaking point by their worsening money problems.
Posted on April 29th, 2008 in Debt.
Millions of young British consumers are taking on debts in order to make purchases they think will make them look cool, according to recent research.
Figures compiled on behalf of the mobile banking service Monilink have shown that almost seven in ten Britons aged between 16 and 34 have used debt to buy luxury goods to compete with their peers in the style stakes.
But for many, this approach to financial management has left them with debt problems, with 22 per cent admitting that repaying the money they have borrowed is causing "significant" concern.
"This study highlights the price younger Britons are willing to pay for peer acceptance. But for many, the price is too high – leading to financial problems," said John Milliken, managing director of Monilink.
Almost a quarter of the British 12-year-olds polled by Abbey recently said they were afraid of facing debt problems when they reach adulthood.
Posted on April 28th, 2008 in Debt.
Children living in the UK should be taught how best to borrow money and avoid a spiral of debt management problems, according to the Archbishop of Canterbury Dr Rowan Williams.
The archbishop addressed the House of Lords recently and insisted that the government needs to act to make sure that children from poor backgrounds do not follow in the footsteps of their heavily indebted parents.
Financial education can play a major role in steering young people away from borrowing irresponsibly but there are very few schools where such lessons are conducted, Dr Williams claimed.
"Young people are vulnerable to considerable pressure – sometimes from banks themselves – to embark on risky and costly ventures into borrowing," said the archbishop.
"They need skills in assessing risks, in interpreting borrowing conditions," he added.
A report from Abbey Banking recently revealed that more than one in five British children aged between 11 and 15 are afraid of being poor and facing serious debt problems in later life.
