December 2011

Rent-To-Own Lenders 'Exploiting' Low-Income Families

Debt Advice Foundation has welcomed a call from children's charity Barnardo's for so-called 'rent-to-own' lenders to be forced to display the equivalent High Street price of products.

Barnardo's has warned that families on low incomes are being exploited by rent-to-own suppliers, and that the interest rates charged and total cost of the credit are not being made clear.

Young People Opt For Debt Relief Orders

Figures from the Insolvency Service of England and Wales show that, faced with insolvency, young people are more likely to opt for a Debt Relief Order (DRO) to deal with their debt problems than any other age category. A quarter of the 44,000 people who have entered a Debt Relief Order since 2009 are between the ages of 25 and 34 years old.

Now people in this age group – particularly those with young families – are being urged to seek help immediately if Christmas spending has pushed them into unmanageable debt.

Business Insolvency North-South Divide Bad News For Personal Debt Too

The latest business insolvency figures indicate that the North of England is at the greatest risk of unmanageable personal debt as a result of job loss.

The Insolvency Index from global information services company Experian shows that business insolvency rates in the North increased in November, while equivalent rates in London and the rest of the South fell.

The North West experienced the highest rise, with the South East doing best.  

FSA “Puts Common Sense At The Heart Of Mortgage Lending”

The Financial Services Authority (FSA) has announced plans to introduce “common sense standards” to stop a resurgence in risky mortgage lending.

They want to prevent a recurrence of the irresponsible lending which resulted in some borrowers taking on mortgages which only seemed affordable on the assumption that house prices would always rise.

Many of those borrowers ended up struggling to repay their mortgage and in danger of losing their home. 

Calls To Samaritans On Money Worries “Doubled In Three Years”

Calls to the Samaritans' helpline about financial worries have doubled in the three years since the financial crisis began, the charity says.

One in five callers talked about job concerns, housing problems, debt and other financial pressures in 2011 - up from one in 10 calls in 2008.

The survey of more than 2,000 people in the UK found 58% had fears about money.

MPs United In Call For Financial Education To Be Part Of The National Curriculum

Debt Advice Foundation has warmly welcoming today’s (15 December) debate in the House of Commons which called for financial education to be included in the national curriculum to help address the "national problem of irresponsible borrowing and personal insolvency".

A detailed report was also published ahead of the debate.

The 12 Debt Tips Of Christmas

We all want to be generous at Christmas – but with so many families facing reduced incomes this year, how do you make sure you don’t end up with your own personal credit crunch come January?

Here are Debt Advice Foundation’s top tips for keeping your Christmas spending under control: