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Debt management weekly roundup

18/02/2011

Debt problems are still rife in the UK in 2011, despite the recession officially ending several months ago.

A study from Scottish Widows shows 71 per cent of households are still finding it difficult to balance their life priorities.

And the UK Cards Association (UKCA) has given its backing to the campaign being launched by Which?, which aims to fight the excessive and unfair surcharges on transactions made through debit and credit cards.

Chairperson of the organisation, Melanie Johnson is lobbying the government to make sure that such pitfalls are properly evaluated by using proper regulatory practises.

However, many people with debt problems in Britain today could be finding that plastic is getting used with less frequency, meaning fewer people will seek debt advice because of money owed on credit cards.

That’s because as people try to manage their finances, credit cards are taking a back seat in terms of priorities, according to Global Prepaid Exchange.

But debt problems don’t seem to be letting up in 2011, after new research suggests consumers owing money will spend the first 45 days of 2011 earning just enough to pay off the interest on their debts.

Debt Expert, kevin Still says: "With the Governor of the Bank of England, Mervyn King, signalling that interest rates may rise three times in 2011, hitting 1.25% by yearend, homeowners with mortgages may need to look at personal debt levels to determine whether they can afford further increases in household expenditure." ADNFCR-2613-ID-19952732-ADNFCR