Alistair Darling has been Chancellor of the Exchequer since 28 June 2007. During September 2007 there was a run on a British bank, Northern Rock. Ultimate authority for deciding on financial support for a bank with debt problems rests with the Chancellor. The 2007 subprime mortgage crisis had caused a liquidity crisis in the UK [...]
-
DEMSA/OFT Approval
We are a member of DEMSA and subscribe to the DEMSA Code of Conduct.
DEMSA is an organisation founded to monitor and maintain high standards in the Debt Management industry. All members of DEMSA are bound by the terms of the Code of Conduct established by DEMSA. Read more...
Category Archives: Blog - Inside Insolvency
Armistice Day – Our World War 1 casualties
We owe an enormous debt to our heroes from World War 1 dwarfing the pain of the current liquidity crisis. The number of World War I casualties both military and civilian was over 40 million with about 20 million deaths and 21 million wounded including 9.7 million military deaths and about 10 million civilian [...]
Non Performing Assets
Non-performing assets are loans made by a bank or finance company on which repayments or interest payments are late.
If they are not serviced for some time banks usually treat assets as non-performing. If payments are late for a short time a loan is classified as past due. Once a payment becomes really late (usually 90 [...]
Watch out for burglars on Bonfire Night
Bonfire Night is an annual celebration on 5 November to celebrate the foiling of the Gunpowder Plot in 1605 in which a number of conspirators, including Guy Fawkes, attempted to blow up the Houses of Parliament.
Children traditionally request a “penny for the guy” to buy fireworks, although in recent years this custom has widely [...]
Williams Formula 1 Team in debt
Has Formula 1 hit the headlines for the right reasons? Losses at Williams were recently announced at £21.4m for 2007 compared to a deficit of £27.7m the previous year. Williams are the only team in the sport not to be owned either wholly or in part by a car manufacturer or billionaire. The 2007 and [...]
What is interest
People or businesses in debt pay interest on borrowed money which is a fee Interest can be thought of as “rent on money”. For example there is a certain rate you have to pay if you want to borrow money from a bank, according to how much you want loaned to you.
Other useful investments [...]
Third World Debt
Developing countries’ debt is external debt incurred by the governments of Third World countries generally in quantities beyond the political ability to repay. When the interest on the debt exceeds what the country’s politicians think they can collect from taxpayers it becomes “unpayable debt” so the debt is prevented from being repaid.
Increases in oil prices [...]
Debt in football
Under plans being drawn up by UEFA three premier league teams could face exclusion from the Champions League – on the grounds that they hold excessive debt.
The European game’s governing body has set up a working group to discuss how to extend its licensing system and restrict the levels of debt that clubs are permitted [...]
Northern Rock
Following problems in the credit markets Northern Rock sought and received a liquidity support facility from the Bank of England during September 2007. This led to a run on the bank with many customers queuing outside branches to withdraw their savings.
On 22 February 2008 the bank was taken into state ownership. The nationalisation was a [...]
Wall Street Crash 1929 — Could it be now ?
The Wall Street Crash of 1929 was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and longevity of its fallout causing major debt hangovers and severe cash shortages.
To describe this collapse three phrases – Black Thursday, Black Monday, and Black Tuesday – are used. [...]
What is a debt management plan?
What is a debt management plan? A Debt Management Plan (DMP) enables individuals to pay personal unsecured debts which are not being managed as they are late and taking too large a portion of income or even exceeding it. Debt management involves recording all the debts, assessing monthly income and expenditure and re-negotiating interest rates [...]
Working through a liquidity crisis
Should you trade through a liquidity crisis? A liquidity crisis will occur when a business has a lack of cash required to grow, can’t meet its debts when they are due or pay for day-to-day operations causing it have debt problems. Some businesses choose to “trade through” a liquidity crisis in the hope of finding [...]
Unemployment rises heaping more worry on those in debt
The number of people out of work in the UK is likely to continue to rise, official figures will show.
The figures will show an increase of at least 30,000 people unemployed to 1.75 million, the TUC has stated.
An extra £100m has been made available, by government, for re-training workers who may lose their jobs as [...]