The Government’s implementation of its debt management strategy, designed to help people to get out of debt, has been branded a “complete failure” by MPs of the Public Accounts Committee. Committee MPs said that 51 various projects had been uncoordinated with no leader in charge since 2004, and reported that 11% of adults were struggling [...]
debt problems
Debt problems loom as interest rates on small loans doubles
People looking to take out a loan for a smaller amount of money have seen the interest charged more than double in the last ten years, prompting fears that potential debt management problems will be accelerated. According to research released today, the average interest rate for a £3,000 loan is 14.92%, despite a record low [...]
Chancellor Alistair Darling announces budget, then likened to Titanic captain by Tory leader David Cameron
Alistair Darling announced his pre-election budget today and went on the offensive, leaving a clear indication that the Labour election campaign will focus on a class war. But he was then jeered and the Labour leadership was likened to the Captain of the Titanic by Conservative leader David Cameron. Just a few weeks before the [...]
Prime Minister Gordon Brown highlights changes to help credit card debts
Gordon Brown highlighted changes that could help consumers avoid debt problems and save them around £300million a year on their credit card debts. In a reversal of current industry practices, repayments on store card and credit card debt must be used to repay the most expensive debts first before cheaper borrowing. There will also be [...]
60% interest rates on credit card debts fuels debt problems
In a desperate attempt to secure credit, around a million customers have turned to sub-prime lenders charging 60% interest on outstanding credit card debts. The reported 2,700 people applying daily for sub-prime Provident’s Vanquish card will typically have a poor credit history, and may have experienced debt problems in the past. Average interest rates on [...]
Cost of bankruptcy to increase by £90
People who are struggling with their debt problems look set to find it more difficult to relieve their debt management, as the cost of bankruptcy is set to rise by £90. From April 6 the Government-backed Insolvency Service is raising its bankruptcy petition fees, from £360 to £450. There will also be an extra court [...]
Repossessions and debt problems will loom for years
Repossessions and debt problems could be around for many years to come, as more homeowners struggle to come to terms with their mounting debts and rising unemployment, according to a new report. A study by the Council of Mortgage Lenders (CML), expects that repossessions will rise to around 53,000 in 2010 – up 15 per [...]
Millions with credit card debts risk debt management problems as interest soars
Millions of credit card holders risk developing serious debt problems as interest soars to the highest rate in decades, according to a latest study. Even though the Bank of England’s base rate of interest stands at a historic low of 0.5 per cent, people with credit card debts are being put at risk by average [...]
Risk of debt problems rise as heating bills soar by 20%
The coldest winter for 30 years has meant that many homeowners now face the increased risk of developing debt problems, as their heating bills have soared by around 20 per cent. Despite wholesale drops in the price of gas, many energy companies have not passed on these savings to customers and have instead raised prices [...]
Credit card debts up as consumer demand rises
For the first time since June last year, the demand for credit cards, overdrafts and personal loans was more than the amount being repaid by UK consumers. Bank of England figures showed that in December, the demand for consumer credit was up by £52m, driven predominantly by borrowing on credit cards. Whilst the interest rates [...]
