Atlantic Financial Management

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Debt management weekly round-up

19/11/2010

UK consumers with debt problems have received mixed news this week, though the trend continues of disposable income being squeezed as costs rise and net income doesn’t keep pace with these increases.

Mortgage arrears and repossessions fell by five per cent in the third quarter of 2010, showing that many with homeowner debt are seeking debt advice and debt solutions before their situation becomes a problem.

Possessions declined by 27 per cent over the last 12 months, thanks in part to the effectiveness of debt advice provided.

Meanwhile more than a quarter of people in Scotland say they would succumb to debt problems built up by utilities in the home, only one month after losing their job.

The research comes from insolvency body R3, which found that more than one in four consumers would need to default on their bill payments only four weeks into a redundancy.

In credit news this week, a number of banks have brought down the interest rates on their loans, which may encourage people to take on more debt which could result in debt help in the New Year.

And the rise of inflation in September could be set to make matters worse, causing debt problems to pile up for Britain’s families.

January's VAT hike will mean no respite for the debt problems of millions of consumers, during the New Year hangover from Christmas spending.

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