Turn Debt Around

A survey by unbiased.co.uk has found that nearly half of all mortgage holders have failed to look at their mortgage arrangements in the last three years.

49% of borrowers admit that they have not reviewed their mortgage since the Bank of England's base rate fell to 0.5% in March 2009.  In addition, 56% of mortgage holders say that they are in fact unaware of the interest rate that they are currently paying on their deal.

Source:  Credit Action - April 2012 edition

According to a new report from the IPPR think tank, some 100,000 more people will be without a job before the end of the summer.

The think tank claimed this has been the longest recession and the slowest recovery that Britain has ever experienced.

Source:  bbc.co.uk

If so, figures from Lloyds TSB suggest that the average price of a home close to the main site of the 2012 Olympic Games has increased by over £60,000 since July 2005, when it was announced that London had won the right to host the Games.

In July 2005, the average house price across the 14 postal districts closest to the main site was £206,145.  However, by November 2011 this had increased by 30% to £268,884, a rise of £62,739 or £815 per month!

Source:  Credit Action - April 2012 edition

A survey by the Co-operative Bank has suggested that 70% of people may have some form of debt problem, with 29% not prepared to confront their debt issues.

The survey found:

• those in debt do not believe that they have money worries until they have accumulated an average of £1,247 in overdrafts, credit card debts or loans
• 22% of people have been in debt for more than five years
• 50% of respondents said they had slipped further into debt in the past year, with the average debtor building up an extra £325 worth of debt since Christmas alone

Source:  Credit Action - April 2012 edition

The annual cost of owning and running a home is now nearly £10,000 - its highest level in four years, a new survey has revealed.

According to the survey by Halifax, a rise in gas and electricity bills in the past year was the main reason for the hike in costs, followed by the rising price of home and garden tools.

Mortgages remain the largest single component of housing expenses at 37% of the total, with the second highest being fuel bills at 18% and the third being council tax payments at 15%.

Source:  Telegraph.co.uk

Lloyds TSB's latest Spending Power Report suggests that UK consumers are continuing to feel squeezed, despite recent falls in inflation.

The report says that the number of people saying that they spend at least three quarters of their income on bills and essentials rose to 46% in February, up 3% from January.

Spending on essentials is growing at its highest rate in almost two years.  The largest increases have been on water and gas and electricity.

Some are looking at borrowing as a solution.  Lloyds TSB say that consumer research has found that of those who are open to borrowing, the highest proportion are those who state they don't have enough to meet their monthly outgoings.

Source:  Credit Action - April 2012 edition

Cautious consumers' repayments on credit cards, loans and overdrafts outstripped new borrowing by £305 million in February, figures show.

This safety-first approach had led to a contraction in borrowing through loans and overdrafts for more than three years, major banks said.

Read the full article at bbc.co.uk

A survey by uSwitch.com has found that 21% of Brits don't save anything at all, and just 31% save every single month.  The survey found that on average, British savers put away £237 a month.

Meanwhile, a separate study by the Co-operative Bank suggested 20% of Brits have no savings set aside in case of an emergency.  The research revealed that the most common types of emergencies that lead consumers to dip into their savings were unexpected bills (53%), boiler breaking down (46%) and loss of employment (45%).  However, the Co-operative found that 1 in 20 people would access the money set aside for emergencies in order to pay for hair appointments, cosmetic surgery or even to buy clothes.

Source:  Credit Action - April 2012 edition

Research by Aviva has found that first-time parents in the UK spend over £425 million each year preparing for the arrival of their first baby.

That's equivalent to £1,370 per family.

However, Aviva say that 60% of parents admitted that, in hindsight, they bought things that they either didn't use or could have done without.

In addition, 27% of expectant or new parents said that they bought or changed their car with an average spend of £2,658, while 25% moved to a bigger house with an average spend of £20,813.

Source: Credit Action - April 2012 edition

The recent news that the cost of a first class stamp will rocket to 60p is another blow to consumers, according to uSwitch.com

Ann Robinson, Director of Consumer Policy at uSwitch.com summed up the impact it will have on those who don't have access to the internet, particularly the old and vulnerable:

"While people who can go online can avoid it [the price increase] to an extent, those without internet access will be forced to cough up.  It's just another example of the financial penalties facing those who can't go online."

Source:  uSwitch.com press release 27 March 2012