Delta Debt Management & IVA Advice » debt management

British Gas price cut could help ease IVA and Debt Management worries

Ivan Cooper — Thu, 04 Feb 2010 16:46:11 +0000

News that British Gas is to cut its prices could help ease the pressure on financially strapped consumers that are relying on IVA help or a Debt Management Plan as a way to get out of debt. The recession has taken its toll financially, and the bitter winter has left many people struggling to find money to pay their increased utility bills on time. IVA advice is being sought by UK consumers in record numbers since the onset of the credit crunch.

The British Gas announcement confirmed that the company will cut gas prices by an average of 7% immediately. It will be welcome news to people struggling with their finances and in need of debt advice.

According to the company, the average customer will save £55 a year because of the price cut, and they estimate that around eight million households will be better off. British Gas added that this is the third price cut that they have implemented in the past 12 months.

In the wake of the current global credit crisis, energy suppliers have been criticised for not allowing consumers to benefit from cuts in wholesale oil and gas prices, by way of lower bills. From February last year, wholesale gas prices have dropped sharply, and domestic prices dropped in the spring.

After pressure from consumer groups and the regulator British Gas said it had removed the different price structure for pre-payment gas meters. This means that those who settle bills by cash or cheque pay, on average, the same for their energy as pre-pay clients.

Customers benefit to a different degree depending on which part of the UK they live in as well as what price plan they are on. The price cuts are taken as an average. Electricity prices will remain unchanged for now.

The news will be welcomed by debt advice providers struggling to cope with over-committed consumers that are buried under a mountain of credit card debt and other monthly bills.

British Gas price cut could help ease IVA and Debt Management worries is a post from: Delta Debt Management & IVA Advice

IVA and Debt Management worries as borrowing on the increase

Ivan Cooper — Wed, 03 Feb 2010 16:28:53 +0000

Debt Management and IVA help providers are concerned at reports that UK consumers are retuning to their old ways when it comes to spending money on plastic. New UK borrowing on personal loans, overdrafts and credit cards has overtaken the amount being paid off by consumers for the first time in six months, sparking fears that reckless spending could cause an increase in the number of consumers facing financial difficulty, and in need of a debt help solution, IVA advice or a Debt Management Plan.

According to the bank of England, unsecured consumer credit rose £52m in the month of December. This was mainly driven by credit card borrowing.

For the same period, the number of mortgages that were approved for house purchases fell slightly compared with the previous month, to 59,023. This is still higher than the past six month’s average.

IVA and Debt Management companies have noticed a trend during the downturn where consumers have been inclined to pay off debts, however this appears to be reversing. Some people have been reluctant to save particularly with interest rates being so low. For five months in a row, repayments have outstripped new unsecured consumer credit.

The main cause is credit card debt which has risen by £195m. In an effort to get out of debt, many people have enterd debt Management progarammes or signed up for an IVA. The demand for overdrafts and personal loans has remained low, with repayments topping new agreements by £143 million.

The total amount of net borrowing by individuals rose by £1.2 billion in December, which is double the average of the previous six months. Most of the borrowing is in the form of mortgages.

IVA and Debt Management worries as borrowing on the increase is a post from: Delta Debt Management & IVA Advice

IVA and Debt Management firms concern over energy bills

Ivan Cooper — Tue, 02 Feb 2010 16:40:09 +0000

Concern has been raised by IVA and debt management companies as news emerged that homeowners face record heating bills. Figures have shown that energy firms are profiting from the coldest winter for 30 years. IVA advice specialists are worried that the spiraling costs of gas and electricity could force more consumers into financial difficulty.

The news comes as the country is just emerging from the longest recession for many years. Consumers struggling with debt problems have been approaching debt management companies in increasing numbers seeking IVA advice, or other ways to get out of debt.

Energy bills are expected to be 20% more expensive than for the same period last year, despite a fall in the wholesale price of gas. The combined charge for gas and electricity bills for a typical household are expected to be £104 higher for the quarter.

According to figures from the Daily Express annual bills have increased from an average £543 to £1,233 since 2003. This represents a rise of 127%.

An IVA, or Individual Voluntary Arrangement, is a debt management solution that allows consumers to consolidate their debts into a single monthly payment without the need for a loan. The monthly repayment on an IVA is set at an affordable level and the term of the arrangement is usually 5 years.

Any remaining debt can be written off at the end of the term. An insolvency practitioner will be required to set up and supervise the arrangement, and it is recommended that all consumers consider all of the available options before entering into an agreement. For IVA help it is recommended that you contact a reputable company.

The debt management industry is concerned that the wholesale price of gas fell by 60% during 2008 and 2009, but the savings made by the companies have not been passed on to households in the form of lower bills. A 30% increase in energy consumption has been estimated for this winter as a result of the freezing temperatures over this period.

IVA and Debt Management firms concern over energy bills is a post from: Delta Debt Management & IVA Advice

Debt Management worries ease as consumer borrowing falls

Ivan Cooper — Tue, 01 Dec 2009 10:11:36 +0000

Debt Management providers have welcomed the news that consumer borrowing has recorded its biggest fall since Bank of England records began some 16 years ago. There has been a large increase in the number of people struggling with debt problems, and having to seek financial advice to improve their situation.

Consumers have been turning to Debt Management and IVA providers in increasing numbers in an effort to avoid total financial ruin. Since the start of the current financial meltdown, there has been a sharp increase in unemployment as well as repeated falls in the average value of property.

These factors, along with wage freezes, and other influences, have left many consumers unable to cope with their unsecured loans and credit card debt problems.

Debt management and IVA providers urge people to speak to an expert before it’s too late. There are many different solutions available for people that need debt help, the important thing is to act now, before the situation gets any worse.

This news that unsecured borrowing had declined has added weight to the argument that consumers are more likely to pay off unsecured debts, instead of saving up during periods of low interest rates.

The number of new mortgages approved during October rose for the 11th consecutive month, whilst at the same time unsecured loans declined by £713 million in October compared, when compared with the previous month. The number of people applying for re-mortgages remained subdued.

unsecured loans down, but credit card debt up

There was a surprise increase in credit card debt levels, as spending on plastic increased by £134 million during October, compared with the previous month. This was more than offset by the decline in other forms of debt such as loans for cars, hire purchase agreements and unsecured bank loans.

The total of outstanding unsecured loans in the UK is around £228 billion, which is a similar figure to the beginning of last year. This shows that despite the best efforts of consumers to reduce their borrowings on unsecured loans, the figures remain more or less unchanged.

If you are struggling with your finances, and having difficulty making repayments on credit card debt and other loans, the best thing to do is contact an IVA or Debt Management provider for some help and advice. DEMSA, the Debt Managers Standards Association, have received approval for its code of practice under the Office of Fair Trading Consumer Codes Approval Scheme for advice for debt management plans (DMP) and Individual Voluntary Arrangements (IVA). A list of DEMSA members can be found on their website, demsa.co.uk.

Debt Management worries ease as consumer borrowing falls is a post from: Delta Debt Management & IVA Advice

Debt management and IVA providers worry as jobless on increase

Ivan Cooper — Fri, 27 Nov 2009 16:13:13 +0000

Unemployment in the UK will continue to rise, Alistair Darling warned yesterday. In a break from normal procedures, where chancellors resist the temptation to predict future jobless figures, the Mr Darling told MPs that “unfortunately it will continue to rise for a while“. The announcement has caused concern amongst IVA and Debt Management providers that are already struggling to deal with the high level of UK debt problems.

Most commentators agree with the Chancellors remarks; however the most recent evidence shows the pace of growth in jobless numbers is slowing noticeably. Generally, the UK has been doing a good job keeping unemployment down. According to one reading of the official statistics, the number of people out of work has been falling over the last couple of months, and now stands at just below 2.5m. This represents around 8% of the total workforce.

When you take into account the 6% fall in GDP seen since the spring of last year it could be seen as a positive when you consider how modest the rise in UK unemployment has been. The Governor of the Bank of England and the Director General of the CBI have both recently pointed out that things are not all doom and gloom. Other countries have seen much higher unemployment, including the United States. Mr Darling’s remarks coincided with the news concerning the Dubai crisis.

There has been a sharp increase in the number of UK consumers that are struggling to repay their debts since the start of the current recession. Debt Management and IVA providers have had to deal with more people with unaffordable debts as unemployment continues to increase.

Ivan Cooper, Chairman at Chiltern Debt Management said: “We are monitoring the jobless situation closely and, wherever possible, we are putting in place the necessary provisions to deal with increasing numbers of over indebted consumers.

“We welcome the news from the Chancellor concerning the decline in the rate of increase in jobless numbers, as we all hope to see an end to the current financial crisis soon.”

Debt management and IVA providers worry as jobless on increase is a post from: Delta Debt Management & IVA Advice

Further debt management worries for Duchess

Nathan Cameron — Mon, 12 Oct 2009 12:34:58 +0000

Sarah Ferguson has sparked further rumours about the state of her debt management, after receiving a £17,000 bill from another one of her creditors.

The Duchess of York also received another threat of legal action after receiving the unpaid bill for more than £17,000 from Richard Owen, a PR consultant, for work to help the Duchess improve her image.

The demand also stated that if Ms Ferguson was unable to settle the amount within 21 days, then Mr Owen would be able to apply for the bankruptcy of the Duchess.

This is the fourth demand that the former wife of Prince Andrew has received in the last year, and fuels further speculation that she may be suffering with serious debt problems after her New York offices were closed with debts of over £600,000.

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “This news that another bill remains unpaid raises further concern for the extent of the duchess’ debt problems.

“I’d recommend she follows the advice the Queen is alledged to have told her, in that she needs to stop spending and seek some debt advice.”

The three companies who are believed to have issued writs against the duchess when she allegedly failed to settle their repeated demands for money included a bill of over £18,000 from a Hertfordshire- based accountancy firm.

It is understood that these have now been repaid.

Fergie’s recent debt management revives memories from the 1990’s when at one point her spending had resulted in a debt to Coutts bank for almost £5 million. Since then, the Duchess has tried to reduce her lavish lifestyle and become self-sufficient, by reinventing herself as children’s author, after-dinner speaker and the face for diet company Weight Watchers.

Further debt management worries for Duchess is a post from: Delta Debt Management & IVA Advice

£2,000 a year energy bills strain debt management

Nathan Cameron — Fri, 09 Oct 2009 11:55:53 +0000

If Britain misses its green energy targets we could all face energy bills of up to £2,000 a year, which would place further strain on the debt management of many struggling households.

In a worst case scenario, household bills could rise upto 60 per cent by 2016, driving energy bills to the £2,000 mark for the year.

This came following a review of the energy market in Britain by watchdog Ofgem.

Currently the average household energy bills total £1,247 annually, but according to the Ofgem report this could soar to £1,995.

A spokesperson for utility switching service Energyhelpline, said: “If Ofgem’s worst case comes true, we are looking at the £2,000 a year energy bill.

“A rise of 60pc is credible, unfortunately, especially for electricity. A lot of generating plant is about to be replaced with greener technology.”

Ivan Cooper, Chairman at debt advice organisation Chiltern, said: “There are already a record number of households who are struggling to manage their finances in the current climate, resulting in more people seeking help with their debt management issues.

“If the predictions from Ofgem are correct, then many more may face serious debt problems as they turn to overdrafts and credit card debts to pay for household bills.

“A more sensible option would be to seek impartial debt advice from a reputable provider, as soon as households feel they may be unable to maintain any current commitments.”

£2,000 a year energy bills strain debt management is a post from: Delta Debt Management & IVA Advice

Students predict debt management worries

Nathan Cameron — Mon, 28 Sep 2009 12:07:21 +0000

A study of around 2,000 students revealed that the majority believe they will graduate with debt management issues that won’t be resolved quickly.

The survey commissioned by Endsleigh insurance, showed that almost thirty per cent (29.2%) of students questioned thought that they will graduate with debts of over £20,000.

There was also over a quarter more (26.4%) who believed they will leave university owing up to £20,000 and 16.8 per cent believing they will have debts of up to £15,000.

One in thirteen (7.5%) students think that they will leave their studies with no debt problems at all.

Worrying though was the time that many students believed it would take to clear their debts. Almost one in four people (23.3%) believed that their debts would take twenty years to clear, whilst a further 38.4 per cent believe it will take ten years to get out of debt.

James Crocker, Endsleigh Financial Adviser, said: “The results of the survey point to the increasing financial strain that today’s student is under. In the short term, students need to manage their finances as carefully as possible by creating a budget and sticking to it so as not to get into even more debt.”

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Many students will end up graduating with potential debt problems if they fail to land a job to quickly repay it.

“As we have seen recently the employment market is much tougher, so students may need to seek debt advice, along with seeking a job when they leave university.

“Prevention is always better then cure, so students should avoid developing high-interest credit card debts or unnecessarily high overdrafts to keep their debts lower for when they leave university.”

Students predict debt management worries is a post from: Delta Debt Management & IVA Advice

Doorstep energy doesn't alleviate debt management issues

Nathan Cameron — Fri, 25 Sep 2009 16:07:38 +0000

Millions of customers who have signed up for a new energy deal have not had their debt management worries eased, as they don’t believe they have got a good deal.

Research carried out by comparison site uSwitch, found that less than a quarter (22 per cent) of the people they questioned thought that they hadn’t got a great deal when they decided to switch energy provider at their doorstep.

Worse still was that almost a quarter of people felt intimidated, whilst almost one in six (59 per cent) thought that sales of this type were too pressurised.

Figures show that over seven million people have decided to change their energy provider at their doorstep, many in order to save money that they can then put towards getting out of debt and preventing debt problems.

Ann Robinson, Director of Consumer Policy at uSwitch.com, said: “…more needs to be done to protect consumers and to make sure they are given all the information needed so they do not end up out of pocket.

“At the moment consumers are running scared of doorstep sellers and quite rightly so. With the right rules in place, direct selling could be an effective way of reaching a wider range of consumers and encouraging people to switch to a better energy deal.

“It could particularly help the vulnerable and elderly who like the reassurance of face-to-face contact and are the groups missing out most on the benefits of a competitive energy market.”

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “For people who are trying to reduce their expenditure, so they can repay debts quicker, these doorstep salespeople aren’t solving the issue.

“As a result, people’s debt problems aren’t being helped by switching energy provider at the door. The best way to save money on household expenses is by seeking impartial debt advice from a reputable specialist – as these will be able to explain ways to boost income and save money, whilst offering the most appropriate debt help solution where necessary.”

Doorstep energy doesn't alleviate debt management issues is a post from: Delta Debt Management & IVA Advice

Postal strikes causing debt management issues

Nathan Cameron — Mon, 21 Sep 2009 08:49:19 +0000

As postal strikes blight the country, thousands of consumers awaiting their store card and credit card statements could face debt management issues – as the bills are still sitting in sorting offices.

Most major credit card companies levy charges for late payment (of around £12 per month), meaning that the average person with two cards could face an extra £24 being charged to their credit card debt each month.

This adds further strain to already overstretched household finances, and could result in many more households experiencing debt problems as they struggle to cope with their debt management burden.

The Royal Mail strikes are set to carry on through October, and could also affect consumers that receive discounts from energy suppliers’ for prompt payments. British Gas, for example, gives discounts of up to £3.75 for eligible customers who settle their balances in full within 14 days.

Clare Francis, editor of moneysupermarket.com, said: “Not everyone is going to be caught out by the postal strike, but even accounting for dormant cards and cardholders who pay their bills by direct debit, the mail backlog could generate millions of pounds in charges for card providers.

“It could be worth agreeing to pay at least the minimum repayment by direct debit to make sure you’re not affected.”

Debt advice organisations have recommended seeking impartial help if you are struggling with debts.

Ivan Cooper, Chairman at debt management company Chiltern, said: “When faced with growing debts and shrinking incomes, people would benefit from seeking some impartial help from a specialist to get out of debt.

“Usually a more positive outcome can be achieved if debt problems are confronted sooner rather than later.”

Postal strikes causing debt management issues is a post from: Delta Debt Management & IVA Advice

Students face debt management meltdown

Nathan Cameron — Fri, 18 Sep 2009 11:42:57 +0000

Undergraduates waiting to start at University are in debt management turmoil after the student loans system revealed one in ten will have to wait a month without cash.

The meltdown of the student loans process, reportedly caused by poor planning, administrative blunders and the recession, has left ten per cent of students without cash at the start of term.

This leaves thousands at the risk of developing debt problems, as they may have to fund their rent, books and other outgoings with their available credit.

For those without a credit card or overdraft facility, the risk is increased further – as they may be tempted to use expensive loan sharks or other ways to cover their costs.

Students have complained about documents going missing, and being stuck on hold for hours on telephone helplines only to be given no information when they finally get through.

Debt advice organisations have expressed concern for the 50,000 students who start without their much needed money.

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “It’s always difficult for students to balance their finances, but withoutthe funding in place from the start of term, more will be at risk of developing debt problems.

“More should be done to offer students debt help, as it is often their first taste of independent life away from home, and it can be very hard for them to get out of debt with their limited finances.”

Students face debt management meltdown is a post from: Delta Debt Management & IVA Advice

Unemployment rise means more debt management worries

Nathan Cameron — Wed, 16 Sep 2009 14:29:16 +0000

The number of people worrying over their debt management looks set to increase, as unemployment figures released today are at their highest level in 14 years.

In the three months to July, around 210,000 more people have been made unemployed, and the jobless figure now stands at 2.47 million, according to the Office for National Statistics.

People claiming for unemployment benefit rose too in August to 1.61 million, up 24,400 from July – the highest on record in over twelve years.

As people’s household finances are impacted by the reduction in income, debt help organisations warn that the number of people struggling with their debts will soar.

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “More people than ever are out of work and are finding re-employment difficult in the current jobs market.

“Whilst incomes may fall as work dries up, people’s credit commitments unfortunately don’t follow suit – so they can be left with major debt problems developing.

“In all cases where you’re struggling to maintain payment, it’s worth seeking impartial debt advice.”

Employment minister, Jim Knight, said the government was doing all it could to return people back into work.

He said: “We’ve got to make sure that as we get back into growth, we grow jobs as well. That’s why we need an active government committed to tackling work, to tackling joblessness.”

Reputable companies like The Debt People, Hamilton Locke and Chiltern can offer simple and free debt advice, to help alleviate any debt problems, along with being able to recommend a suitable professional solution where necessary.

The level of unemployment is now at its highest since May 1995.

Unemployment rise means more debt management worries is a post from: Delta Debt Management & IVA Advice

Debt management issues rise as we all lose £31k

Nathan Cameron — Fri, 11 Sep 2009 10:05:52 +0000

The UK’s debt management issues have been affected more than you think, with an overall fall in personal wealth of £31,000 according to a study by the Halifax bank.

Due to the global credit crunch and recession, the nation’s finances have suffered from an average fall of almost £31k per household, straining many people’s ability to ease their daily debt problems.

A dramatic drop in property prices and a similar fall in pensions and investments meant that for many people the chance to release equity from their property and relieve debt management issues is no longer an option.

The report highlighted that the overall accumulated wealth of UK homes, plummeted by £815bn during the course of last year – a drop of 12%.

Martin Ellis, chief economist at the Halifax said: “It is a huge drop to happen in one year. But we have had the biggest house price fall yet seen in just one year, combined with a fall in equity prices.”

Debt advice organisations have spoken of the increased number of people seeking their help, to cope with the reduced options available.

Ivan Cooper, Chairman at leading debt management company Chiltern, said: “For those who have relied on re-mortgaging to get out of debt in the past, they will have to look at other ways to cope with their finances.

“As house prices have fallen so far, the ability to release equity for many people is no longer an option – as there just isn’t any there in some cases.

“A good start is to seek impartial debt advice from a trusted and impartial organisation. These will be able to offer immediate help and support, along with being able to recommend a professional debt solution if one is needed.”

Reputable organisations, such as The Debt People, Chiltern and Hamilton Locke, can provide free debt advice to people suffering with debt problems.

Where necessary they can also provide a number of professional solutions, like Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs), to help you get out of debt.

Debt management issues rise as we all lose £31k is a post from: Delta Debt Management & IVA Advice

Good news for debt management as bank slashes fees

Nathan Cameron — Wed, 09 Sep 2009 09:49:38 +0000

Debt management industry chiefs welcomed news that bank charges could be on the way down, at least for some of their clients.

The RBS-NatWest banking group, now majority owned by the UK taxpayer, has announced that it plans to reduce overdraft charges. The decision comes ahead of a much awaited decision from the Supreme Court regarding the regulation of bank charges by the Office of fair trading (OFT).

The cost of a bounced cheque will be slashed from £38 down to just £5, and will come into force on 1^st October this year. This represents a fee reduction of nearly 87%. The charge for paying an item on an account that is overdrawn will fall by 50%, from £30 to just £15.

Brian Hartzer, the head of UK retail banking was upbeat about the announcement, believing that it was good news for consumers, particularly because “fees for unarranged borrowing have been an area of ongoing concern”.

“As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges.

“As it relates to past charges we are awaiting the outcome of the industry-wide bank charges test case,” added Mr Hartzer.

The news that RBS NatWest is reducing fees could well prompt similar moves from the other large UK banks. Debt advice specialists believe that this could help to relieve the pressure on many over indebted consumers, which have found themselves in financial difficulty in the wake of the credit crunch.

Record levels of personal debt have resulted in more people in need of debt help programmes such as an IVA, and any reduction in fees and charges could help these hard up individuals in their quest to become debt free.

Good news for debt management as bank slashes fees is a post from: Delta Debt Management & IVA Advice

Debt management problems reducing congestion

Nathan Cameron — Mon, 07 Sep 2009 10:39:27 +0000

Traffic on UK roads has dropped significantly due to the recession and the debt problems of motorists, according to latest research.

The five year study by the AA, shows a fall in motorway and truck-road congestion by almost a third – the first drop in congestion for 20 years.

According to their figures, there was a 15% fall in rush hour congestion, contributed by a quarter of commuters that lost their jobs doing so within the last year.

Reduced numbers on the roads was put down to rising unemployment, the rise in petrol prices affecting the number of car journeys taken and also people choosing to work from home in an effort to save money.

A fifth of commuters surveyed said that hard times had made them work from home, in a bid to save on travel costs.

They also found that Friday’s bucked the trend and saw a rise in traffic congestion, as more people choose to holiday in the UK rather than take expensive holidays aborad.

A spokesperson for the AA said: “The report brings both good news and bad news. Congestion is falling, but that is due to the recession, fuel prices and unemployment.

“The motor vehicle is an integral part of British culture we rely on – whether getting to work, taking the kids to school or delivering goods.

“So when times are hard it is with reluctance we look at ways of cutting down on car journeys.”

Ivan Cooper, Chairman at leading debt management company Chiltern, said: “With unemployment and fuel costs still increasing, congestion could drop further still as more people become financially more prudent.

“People who are already struggling financially may think twice before making unnecessary journeys, and in some circumstances they may need to reconsider if they can actually afford a car.

“Before deciding to sell their car though, they should seek some impartial debt advice, as it may not be necessary to offload their vehicle to solve any debt problems – there are alternative options to consider.”

The AA warns that congestion is most likely to grow again, in line with the economic recovery.

Debt management problems reducing congestion is a post from: Delta Debt Management & IVA Advice