January 2013

Online gambling, addiction and the debts that follow

Britain’s online gambling business is set to be worth £2billion this year, with some nine million people in the country gambling via their computers and mobile phones. 

Gambling addiction is said to be rising significantly, with experts suggesting that the number of people in danger of becoming problem gamblers is approach a million.

Figures from the British Gambling Prevalence Survey (BGPS) suggest that  some 450,000 people with a gambling problem have an average debt of £17,500 each. 

Average family debt reaches new high

The average family in Britain now has unsecured debts of more than £11,000, according to the latest Family Finances Report from insurance company Aviva.

They are spending on average almost £4000 more on household expenses than a year ago – and are using credit cards (39% of families), overdrafts (26%) and personal loans (22%) to help pay the bills.

Our peer-to-peer Money Management Lessons showcased at Pfeg forum

Debt Advice Foundation’s ground-breaking financial education programme was one of a number of projects showcased at a forum of teachers, programme managers and funders organised by the Personal Finance Education Group (pfeg).

The forum, held at the Institute and Faculty of Actuaries at Staple Inn, London, gave attendees the chance to discuss different approaches to financial education.

Wonga describes clients to House of Commons hearing and confirms it will use debt collection agencies

The House of Commons public accounts committee has been told that the average client of short-term, high-interest loans company Wonga is under 40, earns around £20,000 and is more likely to be male.

It also heard that some 85% of their loans are paid back on time, and the company is about to start using a debt collection agency to chase the remainder.

Facing up to Debt Day

Monday 14 January 2013 is D-day for hundreds of thousands of families – that’s D for Debt Day, the start of the week when the Christmas spending spree finally hits home.

Most credit card bills arrive mid-way through the month – and for many people it will be the first time they have faced up to their Christmas spending spree.

Households struggling to pay their rent or mortgage each month up by 44 per cent

More and more householders are resorting to payday loans and unauthorised overdrafts to pay their rent and mortgage.  A new survey for Shelter suggests that the number of people struggling with their housing payments increased by almost half last year, to 7.8million.

Nearly a million and a half people are behind with the rent or mortgage according to the survey.  Some 2.8 million people used an unauthorised overdraft at some point during the year – with ten per cent of that number doing so every month.