Category Archives: Economy

Preparing for interest rate rises [infographic]

posted by in Budgeting, Debt, Economy, Money maximising, Money saving Leave a comment

With plenty of talk about interest rates going up in the near future, it’s important to know what steps you can take to prevent any increases in your mortgage payments tipping your finances over the edge.

We recently covered the basics of mortgage interest rate rises, telling you how this could affect you or your debt solution and tips on preparing for the changes.

And now research from the Money Advice Service (MAS) has found that almost half of households (47%) in the UK would struggle to cover their mortgage payments if there was a rise in interest rates.

To help explain things clearly and offer ways to save money, they’ve put together a helpful graphic to explain what could happen if the rates increased.

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Will interest rate rises leave you struggling with your mortgage?

posted by in Economy, Priority Household Bills Leave a comment

mortgage interest rate rises

Don’t get caught out by interest rate rises!

There’s been a lot of talk over the last few years about interest rates going up. Lots of opinions and lots of speculation, but what does it mean in real terms? Do you know what would happen if your mortgage increased 2%? Have you got a plan in place?

It might sound quite daunting but it’s better to be prepared. That’s why we’ve covered some of the likely questions you’ll be asking yourself if you’ve got a mortgage and worry that an increase could tip your finances over the edge. But first things first, let’s talk about “base rates”.

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The payday loan trap: Throwing good money after bad

posted by in Debt, Economy, Payday Loans Leave a comment

UPDATE: 1 July 2014 – new rules from the Financial Conduct Authority (FCA) means that payday loan companies:

  • cannot rollover an outstanding payday loan balance more than twice
  • must send the debtor an information sheet with contact details for various debt advice organisations. A copy of this information sheet can be seen here
  • cannot make more than two attempts to deduct money from a debtor’s bank account by means of Continuous Payment Authority (CPA) unless a rollover has been agreed.
  • Must now include a prominent risk warning on all financial promotions.
Payday loans neon sign

Avoid the temptation of payday loans

We’ve seen a huge rise in the number people approaching us for debt help after taking out several payday loans and not being able to pay them back.

This year, five times as many people have contacted us for help with multiple payday loans than we saw three years ago. Continue reading »

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Are you a ‘baby buster’? Young people disproportionately affected by the economy

posted by in Debt, Economy Leave a comment

Wallet with pound coins in

Counting the pennies…

We’ve released a report today that finds that young people are “disproportionately affected by the deteriorating state of the economy”. What can you do if you’re affected?

[What do you think? Are you in your 20s and in debt? Have your say on our Facebook thread or in the comments below]

The StepChange Debt Charity Consumer Debt and Money Report Q1 2012 (PDF) report, commissioned by us and produced by the Centre for Economics and Business Research, found a range of financial issues besetting young adults.

We’ve called this generation ‘baby-busters’: those who missed out on what the baby boomer generation took for granted.

So what problems did the report find?

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London: capital of debt

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London's Trafalgar square

London: home of debt (photo: Luciano Mortula / Shutterstock.com)

Popular opinion of London isn’t favourable: it’s portrayed as a fat cat city, spending large while the rest of the country suffers from a recession. But this hides a surprising truth: London is actually the most over-indebted region of the country.

Think about the residents of west London borough of Kensington and Chelsea and what comes to mind? It’s unlikely to be an area with the highest debt repayment burden in the capital. Or how about the borough of Hammersmith and Fulham? No one would think of it as one of London’s rent arrears hotspots.

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Know your rights: November’s debt news

posted by in Budgeting, Debt, Debt Law, DMP, Economy, Money saving Leave a comment

Justice scales law

Certainly not winter there

Don’t the months fly by? Christmas draws ever closer and it’s time for November’s changes in debt law and financial news that might affect you.

The Autumn Statement (a kind of half-term report on the state of the Budget) was revealed yesterday by the Chancellor of the Exchequer George Osborne. While many are still working out the implications of what he announced, five of the main points of the Autumn Statement were:

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Is it brighter news for the number of insolvencies?

posted by in Bankruptcy, Economy, IVA Leave a comment

Sun and dark clouds

OK, so is the storm coming or going?

The insolvency figures for July to September 2011 were released on Friday and the number of personal insolvencies fell during the summer.

Compared to the same time last year, the number of people who became insolvent fell by 11%, to 30,219. In real terms over 3,500 fewer people became insolvent in July to September 2011 compared to July to September 2010.

But if you’re in debt and think that a formal solution is your way out, what’s the next step?

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