New figures from the Council of Mortgage lenders make uneasy reading for mortgage payers struggling to make ends meet, with a 21% rise in house repossessions last year compared to 2006. In all, 27,100 homes were seized, up from 22,400 the previous year.
Three leading debt advisory companies have been warned over their ‘misleading’ adverts, and told by the Advertising Standards Authority (ASA) that they should not repeat the ads.
Debt charities say that the number of people contacting them to discuss their debt problems is continuing to rise, with more people worried about severe difficulties such as mortgage arrears and repossession orders.
The Consumer Credit Counselling Service reported a 33% rise in enquiries in the first quarter of 2007 compared to the same period in 2006, while Citizens Advice also reported an increase.
Payday loans can seem like an easy way out of temporary financial problems, giving you a lifeline to cover your bills until your next payday. There’s a darker side though that not many consider until they’ve experienced it for themselves: payday loans are addictive.
It’s an accepted fact that personal debt has risen to almost unsustainable levels, and that the number of bankruptcies and IVAs (individual voluntary arrangements) is reaching record highs. Some commentators put this down simply to the financial ignorance of many people, or the irresponsible ‘buy now pay later’ culture they say has developed.
That’s perhaps a little harsh on the millions of people for whom debt is now an ordinary part of life. There are several contributing factors which have led to today’s debt problems.
The standard advice for repaying debt is to service the most expensive debt first, so reducing your interest charges. However, sometimes it’s a bit more complicated than that. What if you owe money to friends or family? Should they come before debts to a financial institution? Millionaire Artist ponders on this when deciding how best to use a ’spare’ thousand dollars.
The latest figures show yet another record high for individual insolvencies, with over 26,000 people entering insolvency in the second quarter of 2006 - the highest figureon record, and a leap of 66% compared to the same period last year.
New figures from Alliance & Leicester show that UK consumer debt is falling in real terms for the first time in more than ten years. The report estimates that consumer borrowing, excluding residential mortgages, is growing at a rate of just 1.4% - less than inflation, resulting effectively in reduction of borrowing.