August 2012

How much credit is in your wallet?

According to research, on average we all have two credit cards, with a credit allowance of almost £7,500.  One in five of us has three or more credit cards, boosting that credit allowance to more than £12,000. 

The figures, from Moneysupermarket, shows that we have a total of £260 billion of available credit to dip into, should we wish to do so. 

Money shouldn’t be a family secret, says debt advice charity

Parents should be more open with their children about the family budget if they want them to grow up with a sensible approach to debt, says national charity Debt Advice Foundation

Most parents shield their children from any discussions of money, so they grow up believing that the whole topic should be kept secret.  Add this to the lack of financial education in schools, and the result is that many young people have little or no understanding or experience of balancing income and spending, or of how to avoid unmanageable debt. 

One in six students runs out of money each month, new survey says

As school leavers discover whether their "A" level results have won them their university place of choice, a new survey warns that one in six students does not have enough money to pay their bills and expenses each month. 

The second annual Student Finance Report from Lloyds TSB suggests that another 40 per cent of students are only just managing to get by on their income.  Nearly half of all students have taken jobs, and a similar number are worried about their debts.

Financial education the key to reducing childhood money worries, says Debt Advice Foundation

Young people who worry about their family’s finances should be given the chance to learn how to help balance the books through financial education, according to national charity Debt Advice Foundation.

The Halifax’s annual survey of children’s attitudes to money, the Pocket Money Survey, has suggested that more than half of eight to fifteen-year-olds worry about money, with almost ninety per cent of them saying their parents do so.

Insolvency figures suggest real fall in demand

New figures from the Insolvency Service suggest that there has been a real fall in demand for insolvency solutions.

 The Service reported that there were 27,390 individual insolvencies in England and Wales in the second quarter of 2012, down 10.2% on the same period a year ago.

The total was made up of 8,088 bankruptcies (down 27.1% on the same period last year), 7,956 Debt Relief Orders (DROs) (up 9.6% on the same period last year) and 11,346 Individual Voluntary Arrangements (IVAs) (down 6.6% on the same period last year).

Government review recommends “simple financial products” and a new kitemark

A new range of easy to understand financial products should be set up immediately to help people find their way through the current jungle, according to a Government review.

The first range of “simple financial products” should include easy access and 30 day term savings accounts, and life insurance.  The recommendations also include the setting up of a kitemarking system for simple products, and the development of a simple income replacement product for loss of income due to sickness.