July 2009 Archive
Posted on July 31st, 2009 in Debt.
The Chartered Insurance Institute (CII) has highlighted the need for personalised debt management advice, especially for women.
In a Thinkpiece by Carole Nicholls, past president of the Personal Finance Society, it is suggested that financial plans should be designed around the WeightWatchers healthy living programme.
Ms Nicholls calls on the industry to move away from the traditional product-driven offering to one based on outcomes.
"The new model I am suggesting offers the individual a personalised financial plan to work to which should focus on the outcome as well as the investment – making the connection between the product and the result in real-life terms," she states.
Ms Nicholls highlights the fact that women often find financial advisers poor at communicating in clear and simple language without being patronising.
This results in them feeling less confident about making financial decisions, the CII’s research shows.
"The industry is missing a trick if it focuses on the product rather than the whole experience for the consumer," adds Ana Catalano, manager of policy and research at the CII.
Earlier this year, the CII called for financial products to better cater to the needs of older people.
Posted on July 30th, 2009 in Debt.
People are being urged not to feel ashamed of their money worries and admit their debt problems to friends and family.
If more consumers talked openly about debt management issues then they would realise they are not on their own, explains Jessica Bown, independent consumer journalist at talkaboutdebt.co.uk.
"One of the main problems with debt is that people feel very isolated and by failing to talk to anyone about their problems they make the situation worse and end up getting into deeper and deeper debt," she warned.
Ms Bown urges anyone with debt management issues to speak to a professional, who can help them plan a way out of debt and cope better with their situation.
Figures from moneysupermarket.com show that more than half of the UK adult population carry an average non-mortgage debt of £6,956.
And despite increasing awareness of global financial difficulties, more than a quarter of Brits have taken on more debt in the past year, with eight per cent saying they are "a lot" more in the red.
Posted on July 29th, 2009 in Debt.
Consumers struggling to keep up with repayments on credit cards are being told to carefully consider their debt management plans to avoid getting in to serious trouble.
They need to confront the situation and rectify it as soon as possible, explains Tom Howard, spokesperson for Consumer Credit Counselling Service.
"Your first step should be to make a strict and truthful budget that will set out your finances and help you see where you are overspending, can cut back, and such like," he commented.
Failing to meet even minimum payments, borrowing cash on a credit card and using one card to pay off another are signs that Brits could be getting themselves into serious financial difficulties, Mr Howard continued.
He advises anyone with debt management issues to speak to their lenders and get financial advice from an expert.
Latest figures from the Citizens Advice Bureau show that enquiries relating to debt increased by 13 per cent in the year to the end of June 2009, compared to the previous 12 months.
Enquiries relating to bankruptcy were up by nearly a quarter to 137,406 in 2008-09.
Posted on July 28th, 2009 in Debt.
The new Consumer Credit Directive has been welcomed by one organisation, which stated that professionals should already be implementing its standards.
A spokesman for the Personal Finance Society said clients need to make sure they understand any sort of financial contract they enter into.
"It might help weed out some of the cowboys. Really I think the message to the general public is always to use a properly qualified professional," he suggested.
Credit checks need to be carried out properly, the spokesperson revealed, which again should already be common practice for bona fide professionals.
Raising consumer understanding of financial products is paramount, he added.
The Department for Business published on July 24th proposals for draft regulations to take forward the implementation of the Consumer Credit Directive.
Lenders will be required to check consumers’ creditworthiness before they borrow and fully explain financial products, while giving transparent, standardised information.
Consumers will also be entitled to a 14-day period within which to withdraw from credit agreements, to enable them to determine whether the conditions meet their requirements.
Posted on July 28th, 2009 in Debt.
The mortgage market at the moment is seeing an increasing number of people falling short of the completion stage, it has been suggested.
Despite being initially approved, Ray Boulger, senior technical manager at John Charcol, claimed some are falling at the final hurdle.
"One of the key reasons for that is because of the difficulty in getting mortgages, where people are buying property and there is a chain involved – which clearly there is in a lot cases," Mr Bougler revealed.
People may not get the access to the finance they need, he added, which is where the "whole chain falls apart".
He cited this as one of the biggest problems facing the market at the moment, yet he still expects activity to pick up later in the year.
The Council of Mortgage Lenders reported on July 20th that gross mortgage lending totalled an estimated £12.3 billion in June.
This marked a 17 per cent increase from the £10.5 billion of lending seen in the previous month, although it is 48 per cent lower than levels seen in June 2008.
