More than a fifth of over 55s have a personal loan

Often, personal loans are associated with younger people in their twenties or thirties who may be borrowing the money to buy a new car, pay for their wedding or splash out on a luxury holiday. However, it seems that even older people are lumbered with personal loan debt these days with a recent study showing that more than one fifth of consumers aged fifty five and over were paying off a personal loan.

Whilst in years gone by people reaching their late fifties and sixties enjoyed the luxury of knowing that by the time they reached this age they had paid off their debts and often their mortgage as well, leaving them financially free to enjoy life during their retirement years with no financial burden to hold them down. However, these days things are quite different for many people in their fifties and sixties many of whom still have debts such as personal loans and mortgage debt.

Research was recently carried out by the insurance giant Aviva, which showed that more than one fifth of people aged fifty five and older have a personal loan. In total 21 percent of people over this age had a personal loan. The research was carried out as part of the Aviva Real Retirement Report and involved polling more than ten thousand people aged over fifty five.

An official from Aviva said: “The over-55s have seen their finances deteriorate over the last quarter as people struggle to keep up with the rising cost of living on a relatively fixed income. Taking out a private pension, building up a respectable savings pot and paying down debt are all simple steps that people can take to ensure they don’t face these problems in retirement.”

Tags: total 21 percent, study, over, polling, aviva, late fifties, building, retirement

Debt affecting the lives of many students

There is little doubt that the high levels of debt that students have to get into in order to get an advanced education have affected their abilities to do many things in life. For many people that leave university with high levels of debt the next decade or more could be spent focusing on repaying the debt, with everything else having to be put onto the back burner.

A study that was recently carried out has revealed the extent to which many students are having to put their lives on hold in order to focus on their student debt after leaving university. As a double whammy, many now not only face the prospect of having to spend over a decade repaying their student debt but also face very bleak prospects of getting a high paid job because of the current climate.

Uswitch.com carried out research to show how many students are having to put their lives on hold in order to repay their student debt. Over 30 percent had been unable to start a pension when they wanted to according to the reports and nearly 50 percent had been forced to put off buying a home. Nearly 60 percent of students had been unable to save money because of their debts and close to 30 percent had delayed plans for marriage.

One industry official said: “The fact that graduates have to put their life on hold because they are knee deep in student debt is a sorry state of affairs. And as fees go up, students risk running up even bigger debts. But without a degree, getting a job in today’s stagnant market may be even harder.”

He added: “Going to university used to be the norm, but it is now becoming a catch 22. It is also worrying that students are going to university blind to the financial implications. Higher fees and lack of job prospects may be out of your control, but if university is right for you it’s more important than ever that you are as financially prepared as possible.”

Tags: study, fact, life, debts, official, Financial services, Student loan

Study being performed into behaviour of insurance fraudsters

A study is being carried out into the way in which people behave when committing insurance related fraud. A researcher at the University of Portsmouth, Sharon Leal, has been awarded a grant of £112,000 by an insurance fraud investigation firm to carry out studies into the way that people behave when they are committing insurance fraud.

The findings so far have suggested that many people that are committing insurance fraud give themselves away by thinking too much and too hard about their stories and about what they say. Leal said that those that were lying to insurers went into far too much detail because they planned their story beforehand whereas those telling the truth did not do any forward planning about what to say to the insurance company.

The fact that those committing fraud have to focus more on their story and think more carefully about what they are saying affects the way in which they behave according to the researcher, who is said to be an expert in detecting deception. Leal also said that it was these changes in behaviour that would most likely form a basis for new methods of detecting insurance fraudsters. Investigations into claims could be triggered by various factors such as an overly large claim being made or suspicion on behalf of the insurance employee that first deals with the claim.

Leal stated: ‘There is a real need to use evidence-based methods that are scientifically proven to work to stop wasting insurance companies’ time and money and to stop innocent people being treated as suspects while the guilty get away’ She added: ‘There is a saying, ‘when needs must, the devil rides’, which basically means that when times are tough, people are more likely to break the rules. Insurance fraud has been on the rise since the recession began and insurance companies are very keen to find a way of beating those who cheat.’

Tags: study, Financial services, time, basis, telling the truth, various factors

Buyers of new builds in UK paying for rabbit hutches

It has been reported that new build properties in the UK have the smallest rooms in all of Europe, and industry officials have said that consumers who are shelling out huge sums of money for these newer homes are basically paying for rabbit hutches. Read more

Tags: new builds, small houses, study, buyers, Biology, Commission for Architecture and the Built Environment, percent

Survey shows many not putting money into pension

A recent study has shown that a worrying number of people in the UK are failing to put any money into a pension for their futures, thus running the risk of being left with inadequate funds to retiring comfortably in the future. Read more

Tags: pensions, Personal Accounts, money, study, Employment compensation, savings, uk, reason

Homeowners ‘losing millions’ to gazumping

UK property buyers are losing up to £290 million each year through today’s ruthless house buying tactics, new figures have claimed.

Some 73 per cent homebuyers believe that gazumping, where sellers pull out after the buyer has forked out financially on particulars such as surveys, searches and lawyer’s fees, should be made illegal, a survey by Fool.co.uk has found.

The personal finance website’s study also revealed that 28 per cent of gazumping victims were left “seriously out of pocket”, while 11 per cent of homebuyers believe it is a necessary evil in the task of finding an ideal property.

Fool.co.uk has advised consumers to avoid the phenomena by taking measures such as getting their finances in place early, establishing a bond with the seller, and keeping the seller’s estate agent informed at all times about the progress of the purchase.

“While competition can often draw out the best price for a product, it can also bring out the worst in people,” the website’s head of personal finance David Kuo said.

However, a recent Building Societies Association report found that 71 per cent of current homebuyers accept that property prices could fall this year.

Tags: necessary evil, gazumping, place, survey, fool

FTBs struggling more than ever

It is more difficult for a first-time buyer (FTB) to get onto the property ladder now than it has ever been before.

That is according to housing charity Shelter which has carried out a study into FTBs and found that increasing house prices are leaving them without a chance of making a purchase.

Shelter found that it is nearly twice as hard for an FTB to get onto the property ladder today than it was ten years ago.

This conclusion is based on the gap between how much people earn and the costs of a mortgage, with the gap today being larger than ever.

“These figures show the gulf between those who can afford to buy and those who can’t is widening at an alarming rate,” explained Adam Sampson, chief executive of Shelter.

“For first-time buyers, the housing ladder is becoming a housing tightrope. Buying a home is becoming an ever-more distant dream for first-time buyers and as housing becomes increasingly unaffordable, repossessions are likely to spiral and more families will face the nightmare of homelessness.”

Although the outlook is bleak for the majority of regions in England, Shelter points out that the South East and the East Midlands have shown slight improvements in affordability.

Tags: Economy of the Republic of Ireland, gulf, ladder, charity, repossessions, Shelter."For first-time buyers, outlook, study

Yuppies spending cash on collectables

Today’s young professionals are choosing to invest their money in collectables rather than splashing out on flashy items.

That is according to research by Zurich Insurance which has found fewer people are spending money on expensive cars and champagne.

Its study found that the majority of us prefer to spend our cash on items such as books, comics, paintings, vinyl records and football programmes.

One in six collectors are said to do so purely for financial gain, waiting a few years before seeing their item increase in value.

The average collector has spent around £2,000 on their classic stash in the last five years, with men being the most likely to invest.

“It seems that old valuables are the new investments for modern professionals these days,” said Martin Hall from Zurich.

“Our research shows they’re more interested in and profiting more from antiques and collectibles than any other generation before them.”

Zurich has, however, highlighted that very few people (60 per cent) have taken the time to get their collectables insured, meaning a financial and personal disaster could be just around the corner.

Tags: cash, collector, item increase, Insurance, valuables, study, yuppies, Today's young professionals

Credit card borrowing falling among homeowners

Rising base rates are causing a drop in borrowing by householders, according to a new report.

Homeowners who are already paying a mortgage on their home are becoming less willing to take up any more unsecured debt as they are beginning to feel the squeeze, a study by Alliance & Leicester suggests.

Commenting on the report, Chris Rhodes, director of retail banking at Alliance & Leicester, said: “Consumers have shown an unprecedented appetite to reduce their unsecured borrowing while their incomes have continued to grow and interest costs on their unsecured borrowings have fallen.

“This will have taken some of the sting out of the latest increase in base rates.”

Despite that increase, Alliance & Leicester’s report suggests that warnings of a return to 1990 levels of strain on UK consumers’ finances would be premature as the base rate would have to be hiked to 8.5 per cent before people would experience similar problems.

However, conclusions of the report are that, while UK consumers are still in the “comfortable” zone of debt, this position could be damaged if there are any more rises in the base rates of interest.

Other findings of the monthly report show that this unwillingness to take on more credit card or personal loan debt only applies to those with mortgages.

In contrast to a drop in debt of an average £197 among mortgage holders, those without a mortgage increased what they owe by £97.

Tags: Unsecured debt, conclusions, mortgage holders, zone, study