DAF News

We’ve teamed-up with a trio of talented high school pupils to publish an innovative money guide for students who are planning to go to university, as part of our educational Money Diaries project.

The pupils, who are from Southlands High School in Lancashire, have now created the third publication in our Money Diaries series - focusing on the financial challenges of going to university.

A damning report into the failings of the Government’s multi-million pound debt advice strategy has highlighted the need for a new approach in tackling the UK’s consumer debt crisis.

Britons now owe more money than the value of the entire country’s annual produce according to the latest figures from Credit Action. Average UK household debt including mortgages, is now £58,083.The typical adult owes £30,328 including repayments on their home - 132% of average earnings.

Debt Advice Foundation, a national debt charity, finds that people often fall into the pitfalls of debt because of money management issues – and is therefore calling on people to spare some time for their finances.

According to research carried out by the British Banker’s Association, £1.3bn in consumer loans was issued in February 2010, which is an increase of £100m on the previous month and the highest on record since September 2009.

A new initiative to tackle interim periods of consumer insolvency has been announced by the Ministry of Justice that will allow struggling consumers to make minimal token payments until their financial situation has recovered sufficiently to reinstate contracted repayments terms. In return, they will be given breathing space by their creditors, who will agree to freeze interest for the length of the arrangement.

Recent industry research on Debt Management Plans (DMPs) has revealed the financial nightmare many consumers are facing due to ill-advised debt solution schemes – further reinforcing the need for a new regulatory framework for debt advice providers.

Research carried out by debt advice charity Debt Advice Foundation has revealed 47% of people struggling with debt are hiding their financial problems from loved-ones, with 21% claiming they’d been burdened with their partner’s debts.

With personal insolvency at an all time high, national debt charity Debt Advice Foundation has launched an online debt tools section to combat Britain’s spiralling debt problems.

Debt Advice Foundation is now giving people the ability to calculate the true extent of their debt problems with a new downloadable Debt Analyser. By entering information about credit commitments and living costs, this unique tool automatically calculates what people can reasonably afford to pay back to their creditors each month as well as generating a Statement of Affairs and individual creditor letters should the user wish to negotiate directly with their creditors.