Repossessions fall in second quarter

Since the onset of the global credit crunch, and with interest rates having soared over 2006 and 2007, many homeowners have struggled to keep up with their mortgage repayments, which led to soaring repossession levels in the UK. The numbers of repossessions over the past couple of years have made for gloomy reading, prompting the government to take action such as slashing interest rates to an all time low.

However, a recent report has shown that in the second quarter of this year the number of repossessions in the UK has dropped by 9 percent, and industry officials have claimed that this is down to a combination of factors.

The rock bottom base interest rate of 0.5 percent is one of the factors that has been attributed to falling repossession numbers. Another factor that is claimed to have helped cut repossession numbers is the way in which cases are now handled by courts and lenders.

Between April and June of this year 13,610 homes were repossessed in the UK, and this compared to the 14,884 homes that were repossessed in the first quarter of the year between January and March.

However, compared to the second quarter of last year repossession levels are still up by around 23 percent. The Financial Services Authority has said that one of the main reasons behind the quarterly drop in repossessions is likely to be the changes that have been made in relation to how repossession orders can be granted by courts.

One official said that it was also down to the fact that people were becoming more confidence about approaching their lenders when they ran into financial difficulties. He said: “Borrowers that have been in arrears believe that their lender has been helpful and has treated them fairly. Those that face payment problems should therefore not be daunted by their arrears, but should take control of the situation by seeking help as soon as they can.”

Tags: second quarter, control, mortgages defaults, repossessions, recent report, situation, drop, reading

Will inflation levels get worse before they get better?

The financial headlines has recently been filled with news about the soaring rate of inflation, and this comes as no surprise given that the rate of inflation has soared to its highest level since records began in 1997. For some months now the rate of inflation has been steadily rising, and it has been soaring above the government’s target of 2% for some months now. For July the rate of inflation hit an all time high of 4.4%, which came as no surprise to many who had already predicted that the rate of inflation would keep on rocketing. Read more

Tags: Banking, stagnant economy, economics, inflation, Stagflation, Economy of the United Kingdom, control

Reducing your credit card debts

Over recent years the UK has become a nation that has become more and more reliant on using plastic to pay for items. There are many reasons why people turn to credit cards for their purchases. Credit cards are far more convenience and far easier than having to carry cash around or deal with cheques. Credit cards also enable us to make purchases without having to pay up front, and we can even make purchases and spread the repayments, fuelling the buy now and pay later culture that has become so popular in the UK. Read more

Tags: repayments, credit card debts, rise prospect, expensive purchase, buy

New Year is “absolutely the right time” to manage debt

The New Year is “absolutely the right time” for consumers to start managing their debt and personal finances, according to a debt consultancy firm.

Thomas Charles has said that while taking control of money worries is difficult in December, the New Year is a good time to turn over a new leaf when it comes to saving.

James Falla, director of Thomas Charles, said: “The first thing people have to do is to understand their budget.”

“It’s quite a simple thing but understand what money is coming in and what money is coming out, so you can work out yourself what you should be spending,” he advised.

The latest research from the firm, which was carried out in conjunction with YouGov, revealed that 15 per cent of Britons are in ’serious’ debt to the tune of £10,000.

Men are thought to be more in debt than women although this is an attitude which is changing.

Tags: thing, research, control, finance, time, conjunction, consumers, director

Online shoppers one step ahead in the Christmas sales

An estimated 60 per cent of consumers used the internet on Christmas day to pre-empt the festive sales, say industry experts.

According to a survey of over 2,000 shoppers, the Post Office said that one in five of festive online users would make a purchase over the internet.

Post Office Broadband manager Stewart Fox-Mills, said: “Whereas families traditionally fought over the TV remote control on Christmas Day, the growing popularity of computers and the internet means more people will be fighting over the mouse this year.”

Marks & Spencers launched its online sale at midnight on Christmas day and reported busy trading into the early morning.

The retailers reported particularly busy trading between midnight and 1am.

Meanwhile, shoppers are still expected in the shops in the traditional post-Christmas sales.

Industry experts are expecting some retailers to offer discounts of up to 70 per cent in an attempt to make up the slow build-up to the festive period.

Tags: Fox, online sale, morning, post office, day, christmas

Financial prudence advised over Christmas

Consumers are warned that they must be in control of their finances over Christmas this year.

The Consumer Credit Counselling Service (CSSS) has said that following the global credit crunch, Brits must be more prudent than ever in keeping their under control.

James Ketchell, a spokesperson for the CSSS, explained that Christmas could end up being the “tipping point which pushes people over the edge”.

“People will have to be a lot more careful in their spending than they have been in the past perhaps, and really look at the cost of all the expenses at Christmas…They will have to live within their means,” he continued.

Meanwhile, small loans, which many consumers use to finance the festive season, are set to have increased rates this year, with the average reaching into double figures.

Furthermore, the number of rejections for loan applications has gone up substantially, with moneyexpert.com finding that 1.91 million people had their applications rejected in the six months to the end of September.

Tags: United States bankruptcy law, past, Business Finance, Loans, control, CSSS, crunch

Employers must help staff with finances

Employers should play a bigger part in helping their workers deal with debt, a panel of experts has claimed.

Businesses should provide their staff with clear, impartial financial advice and help them to get into the habit of planning their finances, it was argued.

Stress caused by financial worries costs British businesses £9.6 billion a year in absenteeism, delegates at a roundtable discussion hosted by insurance giant AXA.

The event was in aid of My Budget Day, an AXA-sponsored event aimed at encouraging businesses to help their employees keep control of their money.

Richard Lambert, director general of the Confederation of British Industry (CBI), told the meeting: “It’s clear that industry needs to take responsibility for the wellbeing of their employees. There are a lot of companies out there that are considering how they might offer generic financial advice to their employees, and there are parallels with what companies are doing to raise general education levels as well as the fitness of their employees. It all improves morale.”

Another delegate, acting Liberal Democrat leader Vince Cable warned that any advice provided must be impartial.

“We also need to ensure that there are safeguards in place to prevent financial services companies from selling their own products to their employees,” he stressed.

An experiment AXA ran last year found that households given access to independent financial advice, on the whole, ended the year better off than those left to their own devices.

Tags: aid, Vince Cable, AXA-sponsored, event, safeguards, place, control

Brits urged to borrow sensibly

British consumers are being encouraged to make sure that they only borrow what they can reasonably pay back.

Debt advice firm Thomas Charles is calling upon Britons to take control of their finances following the expensive Christmas period.

The company says January and February are some of the worst months for consumers when it comes to falling into debt.

This is put down to over spending during the festive season and often results in people borrowing more money to see them through the difficult period.

James Falla, director of Thomas Charles, says consumers need to ensure that they are only borrowing money which they can afford to repay.

“If you are taking a loan, then you should know full well that you have to pay back an amount every month,” he said.

Consumers are also advised to take a proper look into the best ways of borrowing money and see which method is best suited to their circumstances.

Tags: James Falla, debt advice, month, circumstances, director