February 2011

Bank Found Guilty Of Reckless Mortgage Lending

Deutsche Bank have been fined £840,000 by the Financial Services Authority (FSA) for irresponsible mortgage lendingand unfair treatment of customers in arrears.  The Bank has also been ordered to pay £1.5m to 8,000 borrowers in compensation.  The ruling relates to 7,967 home loans offered to people with poor credit histories between 2006 and 2007.

CAB Debt Advisors Have Temporary Respite From Cuts

The Government has announced £27m of emergency funding to enable 500 Citizens Advice Bureau advisors across the UK to continue in their jobs for another 12 months.  The move comes in response to strong criticism of Government's decision to end the Financial Inclusion Fund, which had funded the advisors since 2006.

Relationship Break-ups Named As The Top Cause For Debt Problems

It may be the most romantic day of the year, but it’s important to remember that relationships aren’t always just hearts and roses – they can often have a financial impact too.

In fact, our latest research has found that break-ups are the biggest cause of debt problems, with one in ten people who call our debt advice helpline, stating a failed relationship as a key reason for their financial issues.

CAB Debt Advisors Have Temporary Respite From Cuts

The Government has announced £27m of emergency funding to enable 500 Citizens Advice Bureau advisors across the UK to continue in their jobs for another 12 months.  The move comes in response to strong criticism of Government's decision to end the Financial Inclusion Fund, which had funded the advisors since 2006.

Consumers Struggle To Understand Personal Finance

A poll conducted by e-learning provider Learn Direct found that two thirds believe their understanding of financial matters isn’t adequate enough to make the most out of their money. More than 80% of those surveyed didn’t know what benefits they were entitled to while more than 25% felt they didn’t know how to find the best utility deals available.

Record Breaking Levels Of Personal Insolvency Announced Today

Official figures released today, have shown that 2010 saw the highest ever levels of personal insolvencies in England and Wales.

The latest statistics from the Insolvency Service have revealed that there were 135,089 individual insolvencies last year, which was a 0.7% increase on 2009.  This figure included 59,194 bankruptcies (which were down 20.7% on 2009), 50,716 Individual Voluntary Arrangements (which were up 6.5% on 2009), and 25,179 Debt Relief Orders.

Debt Advice Foundation Continues To Offer Help Following Government Cuts

Following the announcement this week that hundreds of Citizens Advice Bureau’s debt advisors have stopped taking on new cases as a result of funding cuts, we are keen to stress that Debt Advice Foundation still has capacity to handle more enquiries.

Our charity has not been affected by the Government’s decision not to continue the Financial Inclusion Fund, which has been funding 500 Citizens Advice Bureau debt advisors.

At a time when unemployment continues to grow and demand for debt advice is likely to reach record levels, it is vital that those in need of help are aware of the range of free sources of advice that are available to them. 

If you’re struggling with debt, there’s no need to wait or book an appointment, as our team of debt counsellors can be reached directly on our free-phone helpline.

If you need advice about debt, please call the charity’s debt advice helpline on 0800 043 40 50  to speak to an adviser.

Credit Cards Used To Cover Basic Living Costs

A recent report from the Post Office has revealed that 11.5 million people used credit cards to cover daily living costs in January.

1 in 5 Will Enter Retirement With Serious Debts

New research from Prudential shows one in five people retiring this year will have an average debt level of £33,100, a worrying prospect for many who’s income will fall considerably as a result.  The Prudential report also revealed that 1 in 20 will have debts in excess of £50,000.  This increases to 1 in 10 for men over 65 years of age.