March 2009 Archive
Posted on March 31st, 2009 in Debt.
Young Brits are planning for their future and considering debt management, it is suggested.
They know that saving is important and plan for future purchases, states Maxine Norris, head of Natwest MoneySense for Schools.
Young people are not deaf to all the talk about the recession and the credit crunch and are becoming more realistic in their aspirations for the future, she explains.
"We also see quite a lot of children who are putting money away for college and higher education, which is always reassuring as it means they are even more forward thinking than the others," Ms Norris continues.
According to research by the body, 86 per cent of youngsters keep track of their money, up from 79 per cent last year.
More than two-thirds also say they know more about debt management than they did 12 months ago, which could be due to media reports and parents being more open about finances.
Posted on March 31st, 2009 in Debt.
The recession has altered views towards money and debt management, new figures reveal.
Findings from the Charities Aid Foundation show that more than two-fifths of Brits say money is more important to them now than before the economic downturn.
As well as this, more than three-quarters are thinking more about how they spend and changing their habits, with many going out less often, shopping in less expensive shops or not going on holiday.
The recession has also changed views towards helping others, with a third saying they are now more likely to help others in need, suggesting that debt management is not only about considering their own financial situation.
Last week, the Building Societies Association urged savers to consider more than just the headline interest rates when looking for somewhere to put their money.
It suggested consumers look for long-term competitive deals to avoid the need to switch saving accounts in the future.
Posted on March 30th, 2009 in Debt.
Britons do not have as strong savings habits as they should despite positive research figures, one building society warns.
Research by National Savings & Investments shows that regular savers are more committed to putting money aside during the recession, but Nationwide claims that the gap between savers and non-savers is getting wider.
It says there is a long way to go before Brits will be saving enough, with its survey suggesting nearly two-thirds admit to saving less than they need.
Just under a quarter say they save enough, suggesting that better debt management is needed by the majority of Brits.
The figures also warn that the savings situation for many could get worse, with nearly a quarter expecting to be saving less in six months’ time than they do now.
Nationwide director for savings and mortgages Andy McQueen comments: "There seems to be a divide between those that have saved, continue to save and increase the amount they save and those that have not saved, do not save and have no means to save."
Posted on March 27th, 2009 in Debt.
Growing numbers of private tenants are facing homelessness as landlords struggle to keep up with mortgage payments and face repossession, four UK bodies are warning.
Shelter, Citizens Advice, Crisis and the Chartered Institute of Housing are calling for a change in the law to allow repossessions of buy-to-let properties to be deferred so tenants have more time to find another home.
Debt management advice and plans could also help improve the situation, giving landlords the chance to manage their finances and hold on to their property investments.
"With more and more landlords struggling with mortgage arrears and tenants facing repossession, the government must allow the courts to defer possession dates so that tenants can find other suitable accommodation," comments Shelter chief executive Adam Sampson.
Consumer body Which? has also recently warned that many Brits live in fear of repossession as unemployment concerns grow.
Its survey shows that 62 per cent of people are worried about losing their jobs, with four in ten saying they may not be able to keep up with their mortgage payments if they were made redundant.
Posted on March 27th, 2009 in Debt.
Older consumers who have dealt with a recession in the past will be better-placed to weather the current economic storm, with many already putting debt management plans in to action to help them cope.
More than a third of ‘recession veterans’ are becoming more frugal with their money, compared to just a fifth of ‘recession novices’, says Lloyds TSB.
One in four British adults are facing their first ever recession, amounting to some 13.5 million people who may need debt management advice as their cash flow is squeezed.
The recession veterans feel better prepared for economic difficulties because they have lived through a recession before, with many saying their confidence comes down to their debt management experience.
"Recession novices will be feeling the greatest shock and worrying about how to maintain their lifestyles while paying off debts, while those that have lived through it before will probably cope better, reverting to old methods of survival," comments psychologist Corinne Sweet.
The credit crunch has already led to an increase in people turning to debt advice firms and taking out Individual Voluntary Arrangements, OK! magazine reported this week.
It said the recession is encouraging people to think more about debt management and act to reduce their outgoings.
