Debt Management News

Stoke council tenants rack up £3.6m in rent arrears and many could benefit from debt help

Stoke-on-Trent City Council has revealed that nearly 1,000 of its tenants would really benefit from debt help have racked up between them rent debt problems of more than £3.6 million.

According to the council’s figures, a total of 9,521 tenants have rent arrears on council-owned houses. A total of £1.8 million is owed by 5,667 current residents, whilst 3,854 former residents owe a further £1.8 million. This means that on average per household, current tenants have rent debt problems of £318 each, whilst former tenants owe £467 each.

These figures are also a huge increase from a few years ago in 2006-2007, when the total amount of rent owed to the council was just £1.6 million.

The local authority itself is already strapped for cash, which has led to the launch of a new savings programme in which the council hopes to claw back £24 million by shutting care homes, cutting jobs and increasing council tax.

The council, which owns 19,000 houses at present, will now have to start sending officers to the houses of tenants who owe rent, to stop the arrears soaring and hopefully recover as much of the debt as possible.

Speaking of why this situation has occurred, the assistant director of housing services at Stoke-on-Trent City Council Val Bourne has blamed a new computer system which sent out warning letters to tenants with rent debt problems. She said:

“The connection with tenants was taken away. It became very much an automated process, made worse by a reduction in staff.

“Within days an officer will now knock on the door and talk to people about why they are not paying their rent instead of letting it drag on for weeks and become a problem they don’t want to face. We don’t want to evict people. We want them to keep their tenancies.”

Half of UK could face retirement debt management issues by not saving for pension

New research has revealed that around half of the UK’s population could be facing debt management issues in their retirement, as they aren’t saving enough money towards their pensions.

YouGov conducted the research on behalf of the Institute of Financial Planning (IFP), and timed it to coincide with Financial Planning Week (21st – 25th November). Researchers found that women, in particular, are at risk from debt problems once they retire. Nearly half of those surveyed said they had never put any money away for their pension fund and they aren’t saving currently.

Only one in five of those included in the survey said that they thought they were saving all they would need to make their retirement financially secure.

The research also revealed that many people aged 55 and over are worried that they will never be able to afford to retire. Around one in ten said they had no idea how to improve their financial outlook for the future, but one third said they were planning to tackle their debt problems first.

This suggests that household do not have enough disposable income at the moment to clear debt problems, pay all their bills and put aside savings for retirement. The figures show this too, as more than half of survey respondents said their household finances have worsened over the last six months.

Financial Planning Week is a campaign which aims to help people plan for their futures and to seek proper financial and debt advice where appropriate.

Posted by Sam in Debt Management News on February 1st, 2012 , tagged with debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Irish mortgage debt problems increase

According to the latest figures, one in six households in Ireland is struggling with mortgage debt problems.

The Central Bank of Ireland has released data which shows that the number of mortgages which are currently in arrears of more than 90 days was 62,970 in September this year. This is a significant increase compared to just a few months ago in June 2011, when the figure stood at 55,763.

Furthermore, the bank revealed that another 69,736 mortgages have been restructured recently, through agreements between homeowners and the bank. A total of 33,360 of these mortgages are currently in arrears.

These figures show that there is a increasingly mortgage debt problem in Ireland, which could be attributed to the after-effects of the banking crisis, property crash and the €67.5 billion bail-out of the country by the International Monetary Fund (IMF) and the European Union (EU) in 2010.

Another factor which could be increasing debt problems for Irish homeowners is the high level of unemployment in the country at present. This 14 per cent unemployment rate, combined with lower wages and wage freezes, could make it very difficult for homeowners to clear their mortgage debt and keep on top of payments in the future.

Indebted homeowners could soon have some relief, however, as the Irish Government is pushing to pass new legislation which will force banks to help struggling mortgage holders by passing on cuts in the European Central Bank’s interest rates.

Posted by Sam in Debt Management News, Debt Problems on January 31st, 2012 , tagged with debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Families requiring debt consolidation by loaning friends and family money

A recent survey by Aviva has revealed not only that UK families have unsecured debt problems averaging around £10,604 per household, but also that many families are risking further need for debt consolidation and financial strife by giving or lending money to hard-up friends and relatives.

According to the survey, around 31 per cent of those questioned admitted providing financial aid to family members and close friends. The average amount given by such generous families was £442 a year. Whilst this may not seem like very much, it could make a huge difference to a household that is already struggling with debt problems.

The Aviva report also uncovered a shift in family dynamics which has lead many households to lend money to their aunts, uncles and other ‘extended family’, as well as close friends, adult children and ageing parents. These were the main recipients of this new wave of altruism uncovered in the insurer’s report.

The director of workplace savings at the insurance company, Paul Goodwin, advised families that they may be better keeping the cash they give to friends and relatives in order to tackle their own debt problems or to save for retirement. He said:

“While it is good to see how families are pulling together, people need to make sure they are not sacrificing their own financial wellbeing, particularly in the long term.

“While we obviously don’t expect people to stop supporting their families, we would urge them to think about the types of support they can provide and decide whether they can help them in different, more practical ways.”

Posted by Sam in Debt Consolidation, Debt Management News on January 31st, 2012 , tagged with debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Expenses scandal MP won’t pay legal aid due to debt advice pre-bankruptcy

Scottish MP Jim Devine, who was found guilty of fiddling his expenses claims whilst in office and jailed for 16 months, has been told that he doesn’t have to pay back the thousands of pounds he was given in legal aid due to debt advice received prior to he becoming bankrupt.

At a hearing at Southwark Crown Court recently, it was revealed that Devine was one of four MPs to receive legal aid in order to fight their cases in court. Mr Devine, who was found to have unlawfully claimed expenses of £8,385 during his time in office, was given a total of £32,000 in legal aid.

Mr Devine has now been told that because he because he had been through bankruptcy proceedings in February 2011, he does not have to pay back his legal aid costs. Mr Justice Saunders explained that Mr Devine would be saddled with greater debt problems if made to pay the money back. He said

“In relation to all other costs I should make orders for payment by the defendants unless in all circumstances of these it would involve undue financial hardship.

“In the case of Mr Devine different considerations apply. He is bankrupt and it seems unlikely that he will have anything left by the time all his debts are paid off.”

Meanwhile, the three other defendants, Elliot Morley, David Chaytor and Eric Illsley, have been ordered to pay back a total of £66,951 in legal aid. They will also have to pay a total of £58,530 in prosecution costs.

Posted by Sam in debt advice, Debt Management News on January 31st, 2012 , tagged with debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Unemployment for UK youngsters hits 1 million and debt management advice demands increase

Concerns that young people may be facing increased debt problems have intensified recently as it was revealed that there are now over one million unemployed youths living in Britain and the requirement for debt management advice increases.

According to official figures released by the Office of National Statistics (ONS), around one in five people aged between 16 and 24 are without a job of any kind. On top of that, it has also emerged that the UK has the highest levels of unemployment now than it did back in 1996.

A total of 8.3 per cent of the economically active population are unemployed, and more than 200,000 young people have been out of work for a period of 12 months of more.

These figures have prompted many employment experts to worry that the UK is cultivating a generation of individuals who are unable to fully connect to the workforce. This could leave these people with a lifetime low job security, reduced wages and possibly debt problems.

In response to the figures, the government has blamed the eurozone debt crisis, as the Employment Minister Chris Grayling explained:

“These figures are bad news. They are I’m afraid the consequence of what we’re seeing in the eurozone. If you go back four months, unemployment was falling, youth unemployment was lower than 900,000. We’ve seen a big slowdown in the economy I think as a result of the crisis elsewhere.”

However, Grayling’s comments were met with criticism elsewhere, with even the Deputy Prime Minister Nick Clegg admitting that the government needed to do more on youth unemployment. He said: “I think it would be a real dereliction of duty if we did not do more to try and make sure that young people are either given a real pathway into training, into education, into further education, into higher education or into the labour market.”

Posted by Sam in Debt Management News on January 30th, 2012 , tagged with debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

People who have been through a debt management plan or bankruptcy need better bank account access

According to the Government’s Business Minister Edward Davey, people who have been through a debt management plan or bankruptcy proceedings now need better access to bank accounts to allow them to make a fresh financial start.

Mr Davey described a bank account as an “essential stepping stone” for bankrupt people, saying:

“Without access to a bank account, even the simplest financial transaction is beyond reach for an un-discharged bankrupt. What I want to see are financially capable consumers who are able to effectively manage their money and make the fresh start they need. If evidence suggests that there are some people that are struggling to get a bank account, I want to see what can be done to help improve their circumstances.”

The Insolvency Service has confirmed that although bankruptcy can often be seen as a fresh start for people who have struggled with insurmountable debt problems, some have difficulty in getting a bank account. The decision to offer an account to an un-discharged bankrupt is the bank’s, and some may not even offer a basic account.

However, two high street banks do currently offer basic bank accounts to people who have not yet been discharged from bankruptcy, and the Government is now looking into ways of promoting these financial organisations.

A consultation into how financial access can be improved for people who have been through bankruptcy has now been launched by the Insolvency Service, which is concerned that some bankrupts may face added expenses if they aren’t able to use a bankrupt to pay bills or receiver wages.

Posted by Sam in Debt Management News on January 30th, 2012 , tagged with debt, debt advice, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Pub manager spared jail for £7k theft after admitting bankruptcy

The former manager of a pub in Leeds has been spared a prison sentence after he was caught stealing more than £7,000 from the business.

Brian Leeming admitted stealing the money from the Commercial Hotel pub over a period of time, but said that he only did so because of mounting debt problems. It also emerged that Leeming, 52, had been through bankruptcy proceedings with his wife last year, after they racked up debt problems exceeding £52,000 whilst running a pub together.

Richard Reed, mitigating in the court case, also said that Leeming had desperately needed money to afford to undergo a surgical procedure on his leg after it was broken in an accident. These were used as mitigating circumstances in the case, as well as the fact that Leeming had no previous convictions.

The court heard that rather than seeking debt help for his desperate situation, however, Leeming decided to steal from the business of which he was in charge. Prosecutor Mehran Nassiri said that discrepancies in the bank takings, especially from the pub’s fruit machine, had been discovered in January and February of this year. It was also noticed that some stock was missing from the Pudsey pub. An investigation was launched, and eventually Leeming was arrested.

After Leeming had admitted seven offences of theft and all mitigating circumstances had been put forward, a judge in the case handed the former pub manager a suspended prison sentence.

Posted by Sam in Debt help, Debt Management News on January 30th, 2012 , tagged with credit card debt, debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

York woman finally decided to seek debt management companies for advice

A woman from York has spoken to a local newspaper about the moment she and her husband finally decided to seek debt management companies for advice when family’s debt problems reached £25,000.

Tess Sharratt, 30 from Acomb, spoke to the York Press about how debt problems began to take over her life after the family got into financial difficulties. Her husband Steve lost his job, and she had to leave her position when she became pregnant.

As the family’s debt management problems increased, Tess and her husband were hounded by creditors for repayment and debt collectors even started to contact their neighbours for information. They would be left with no money at all if they met all demands from creditors, so they only made minimum repayments.

Tess said she despaired of what to do, until the moment she finally decided to seek professional debt advice to get the family out of debt and back to normal. Bankruptcy was deemed to be the most suitable option, although Tess and husband Steve have had to work very hard to clear £5,000 from their existing debt problems.

Describing her stressful experience and explaining what it had taught her, Tess told the York Press:

“You should only spend what you can afford and if your children can’t get their computer games for Christmas that’s probably a good lesson for them to learn. It’s a lot worse to get into debt. That said, I was not lavishly spending money on credit cards. I didn’t get into debt by buying TVs and cars. For a long time, I kept chipping at the minimum payments. It was a very desperate situation and affected my health and everything really.”

Posted by Sam in Debt Management News on January 29th, 2012 , tagged with credit card debt, debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Over one million UK families borrowed money for Christmas 2011 and need debt advice

A new survey has suggested as many as 1.6 million families in the UK could not afford the cost of Christmas 2011 to cover the purchase of presents, food, decoration and celebrations without having to borrow money. Now these families are in financially difficult positions and most require dept advice.

The research, carried out by Legal and General, revealed that nearly one third of those included in the survey said they didn’t think they could afford the cost of celebrating Christmas this year. This figure rose to six out of ten households in regions such as London and the West Midlands.

Also analysed in the survey were people’s attitudes to spending at Christmas. Some 31 per cent of those questioned said they planned to spend less money on Christmas gifts than the previous year, whilst 51 per cent were happy not to increase their spending during the festive period.

However, there were also a considerable number of families planning to rely on credit and borrowing to get them through the Christmas celebrations. As many as 20 per cent of those surveyed admitting racking up credit card debt to fund Christmas this year, although this is a considerable drop from the 32 per cent who found themselves with debt problems after Christmas 2010. Legal and General’s executive director Mark Gregory commented on this, saying:

“Perhaps this reflects a more prudent attitude to credit card debt in these straightened times.”

As well as affecting households and increasing debt problems for many families, this situation may also have a negative effect on shops and businesses hoping for the usual surge in pre-Christmas spending.

Posted by Sam in Debt help, Debt Management News on January 29th, 2012 , tagged with debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Kerry Katona clears credit card debt and bankruptcy problems

The reality TV personality and former pop star Kerry Katona has reportedly been able to tackle all of her credit card debt and bankruptcy problems.

Katona, 31, was able to clear all of her debts using the £350,000 she received for her appearance on the reality programme Celebrity Big Brother, which aired in August of this year. This means that Katona will be able to apply for a discharge from bankruptcy, so that she can apply for a mortgage and obtain other credit once more.

A source purportedly close to Katona spoke to the tabloid newspapers about the reality star’s recent achievement in clearing her debts, saying:

“She’s really chuffed, and she should be too. She put her head down, worked hard and done the right thing. The ¬people in charge of her bankruptcy thought she would blow all her Big Brother money but she handed it over to them to settle her debt. They’ve made it clear they will not object to any request she makes to the courts to have her bankruptcy discharged.”

At one stage, Katona had debt problems exceeding £417,000, which had been racked up when herself and her ex-husband Mark Croft spent excessively to live a lavish celebrity lifestyle. Katona nonetheless ended up with huge money problems despite the fact that she had appeared on numerous TV programmes such as ‘Dancing on Ice’ and ‘I’m a Celebrity…Get Me Out of Here!’, for which she was likely to have received large appearance fees.

Posted by Sam in Credit card debt, Debt Management News on January 28th, 2012 , tagged with debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Cherie Blair’s half sister in trouble after debt management plan and bankruptcy breaches

Lauren Booth, the half-sister of former Prime Minister Tony Blair’s wife Cherie, is reportedly facing a criminal investigation after she allegedly breached the terms of her debt management plan and consequent bankruptcy by continuing to act as a company director despite being banned.

The sister-in-law of the former PM declared voluntary bankruptcy in December 2010, with debt problems amounting to tens of thousands of pounds. Amongst Booth’s creditors was her half-sister Cherie Blair, who is believed to have lent a sum of £15,000 in response to a plea for financial aid.

Booth, a presenter with the Iran-funded channel Press TV, was required under the terms of her bankruptcy to stand down as a company director. However, she failed to unregister herself as a director of Lauren Booth Productions within the allotted 10 months, and the Official Receiver confirms that she was granted no exemption from the rule.

This could now trigger a criminal investigation, possibly followed by prosecution, a fine or even a prison sentence if Booth fails to inform Companies House that she has stepped down from her position.

She was also handed an automatic £750 fine after she failed to file details of her accounts within three months of the July deadline, as required under her bankruptcy agreement.

Booth has not commented on this latest development in her bankruptcy case, but she did write about her financial woes earlier this year. She wrote:

“The person going through bankruptcy feels alone, often struggling with the shame and embarrassment.”

Posted by Sam in Debt Management News on January 28th, 2012 , tagged with debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Government plans to streamline debt management advice relating to bankruptcy proceedings

According to the business minister Edward Davey, the Government is planning to create a more streamlined application system for those considering debt management advice for bankruptcy, as well as for businesses going into liquidation.

A proposal has been launched for consultation, in which the Government’s plans are revealed. Entitled ‘Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up Petition Reform’, the proposal makes the following suggestions:

• Creditors wanting to start bankruptcy proceedings must take all reasonable steps to resolve debt problems first
• All debtors will be encouraged to seek proper debt advice
• Anyone wanting to apply for bankruptcy for themselves can do so through paper or electronic applications
• Electronic applications will be sent to a specially appointed adjudicator at The Insolvency Service, who will decide on the outcome of the application where all parties agree
• Any disputes will then go to the courts to be resolved

Speaking of the Government’s plans, Mr Davey said:

“Courts have an important role to play in bankruptcy and winding up applications where there is a real dispute between parties. But in simpler cases where there is no real disagreement, a more streamlined route into bankruptcy is needed. These reforms should help to deliver better outcomes, reduce unnecessary burdens on creditors and debtors, and bring substantial savings for the taxpayer. It is essential that we get the detail right, particularly in relation to the level of safeguards required to ensure better results for debtors, while respecting creditors’ rights. That is why I strongly encourage all interested parties to respond to this consultation.”

Posted by Sam in Debt Management News on January 27th, 2012 , tagged with credit card debt, debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Majority of Brits fear another recession and debt problems it may bring

A new survey has shown that around two-thirds of British people fear that the country may experience another recession, which could mean that households face greater debt problems.

The poll of 2,046 UK adults was carried out by researchers from ComRes earlier this month (November 2011). Amongst the other results collected, it was revealed that:

• 85 per cent of those surveyed believe that the UK economy is in danger due to European debt problems
• 59 per cent are already cutting back on their spending due to fears that the UK is facing another ‘credit crunch’
• 73 per cent worried that another recession may put extra financial pressure on themselves and their families, as well as causing or exacerbating debt problems
• Just 13 per cent thought they and their finances would escape unscathed if the UK did fall into recession once more

These results were accompanied by further discussion of the European debt crisis, with 76 per cent saying that they thought it had been badly managed by the political leaders of European countries. A further 77 per cent said that they believed the crisis was evidence of why the UK is correct to stay out of the eurozone.

However, despite fears that the European debt crisis could upset the British economy and cause greater debt problems for UK families, just 18 per cent believed that Britain should make a greater financial contribution to help solve it.

Posted by Sam in debt advice, Debt Management News, Debt Problems on January 27th, 2012 , tagged with credit card debt, debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt management companies, debt management plan, debt management problems, debt management program, debt managers, debt problems, debt solution, debt solutions, how to clear debt.

Real Housewives star Teresa Guidice bounces back from debt problems

Teresa Guidice, who is best known for starring on the US show Real Housewives of New Jersey, has joined the new line-up of Celebrity Apprentice in the hope that she can bounce back from bankruptcy and tackle her debt problems.

Guidice, 39, and her husband Joe filed for bankruptcy back in 2009 after racking up debt problems and attempting to live a lavish celebrity lifestyle. However, the couple have now made the decision to try to pay off what they owe rather than have their debts dismissed in a court during bankruptcy proceedings.

Speaking of this decision, Guidice’s attorney Jim Kridel told People magazine a few months ago:

“Teresa and Joe are happy about this. Teresa has always wanted to be able to say that she paid her creditors.”

As part of this effort to tackle her debt problems, mother-of-four Guidice has joined the new line-up of the US version of Celebrity Apprentice. She will appear alongside other US celebrities including singers Aubrey O’Day, Debbie Gibson and Clay Aiken, comedienne Lisa Lampanelli and magician Penn Jillette.

As well as receiving a fee for appearing on the NBC show, Guidice is also hoping that she can win the latest season of Celebrity Apprentice. Whilst the famous faces who take part won’t earn any money or a high-flying job if they win, they could end up with a number of lucrative new deals, offers and sponsorship. For Guidice, this sort of work could be a great help as she tries to tackle her debt problems, which at one point totalled $11 million.

Posted by Sam in Debt Management News, Debt Problems on January 27th, 2012 , tagged with debt, debt advice, debt consolidation, debt help, debt help uk, debt management, debt managers, debt problems, debt solution, debt solutions.

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