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Debt management companies in the spotlight
This week the government launched a consultation about the future of debt management companies.
At the moment these companies are unregulated, but the government has opened a consultation proposing regulation of these firms. Organisations who work with people in debt will be contributing to the consultation by telling the government what they think of their proposals for regulation.
Debt management schemes are designed to help people in debt, who are unable to meet their repayments. In these situations, finances are assessed by debt management operators and then a monthly repayment deal is brokered with all the creditors who are owed money.
If you are worried about debt, it is really important to seek help as soon as possible. There are free sources of help available, and if you are seeking help from an organisation, always look for the registered charity number. Organisations like Citizens Advice, National Debtline and the Consumer Credit Counselling Service offer advice free of charge.
Here is a review of the other top money stories of the past week commencing 14 September 2009.
Tuesday 15th September
Inflation falls - The Consumer Price Index (CPI) has shown that the rate of inflation in the UK has fallen to 1.6%. The rate of inflation is a measure of how fast prices are rising and the Bank of England’s Monetary Policy Committee is charged with keeping inflation at 2% to keep prices and the economy stable. Commentators have said that inflation will probably remain volatile over the next six months as the prices of utility bills and petrol remained uncertain.
First annual growth of mortgage lending in two years – For the first time in two years there has been a reported growth in lending to house buyers. The number of loans granted for house purchases in July this year was 19% higher than July 2008. Low interest rates and greater economic confidence have been credited for the increase in mortgage lending and rising house prices. The Council of Mortgage Lenders (CML) reported that between June and July 2009 the number of loans to buy property rose by nearly a quarter since this time last year, totalling 56,000, of which new homeowners accounted for 20,400. The Royal Institute of Chartered Surveyors (RICS) also said that more members had reported house price increases rather than falls, with 17 percent predicting a rise over the next three months as opposed to 7 percent in July.
At the moment these companies are unregulated, but the government has opened a consultation proposing regulation of these firms. Organisations who work with people in debt will be contributing to the consultation by telling the government what they think of their proposals for regulation.
Debt management schemes are designed to help people in debt, who are unable to meet their repayments. In these situations, finances are assessed by debt management operators and then a monthly repayment deal is brokered with all the creditors who are owed money.
If you are worried about debt, it is really important to seek help as soon as possible. There are free sources of help available, and if you are seeking help from an organisation, always look for the registered charity number. Organisations like Citizens Advice, National Debtline and the Consumer Credit Counselling Service offer advice free of charge.
Here is a review of the other top money stories of the past week commencing 14 September 2009.
Tuesday 15th September
Inflation falls - The Consumer Price Index (CPI) has shown that the rate of inflation in the UK has fallen to 1.6%. The rate of inflation is a measure of how fast prices are rising and the Bank of England’s Monetary Policy Committee is charged with keeping inflation at 2% to keep prices and the economy stable. Commentators have said that inflation will probably remain volatile over the next six months as the prices of utility bills and petrol remained uncertain.
First annual growth of mortgage lending in two years – For the first time in two years there has been a reported growth in lending to house buyers. The number of loans granted for house purchases in July this year was 19% higher than July 2008. Low interest rates and greater economic confidence have been credited for the increase in mortgage lending and rising house prices. The Council of Mortgage Lenders (CML) reported that between June and July 2009 the number of loans to buy property rose by nearly a quarter since this time last year, totalling 56,000, of which new homeowners accounted for 20,400. The Royal Institute of Chartered Surveyors (RICS) also said that more members had reported house price increases rather than falls, with 17 percent predicting a rise over the next three months as opposed to 7 percent in July.
Wednesday 16th September
The link between debt and mental health – A report released this week, called "London Capital of Debt" has highlighted the link between those living in London who have mental health problems and debt. The report says that approximately one million Londoners have mental health problems and just over a quarter of these are worried about debt. That therefore equals 250,000 people in the capital. The report has recommended that GPs point people towards the places where their patients can receive help if they are concerned about debt. If you are worried about debt visit your local Citizens Advice Bureau or call the Consumer Credit Counselling Service on 0800 138 1111. Both of these services are free and they can help you get back in control of your finances.
Unemployment rises further – The Office of National Statistics (ONS) released its latest statistics which show that unemployment in the UK rose by 210,000 in the three months to July, to reach 2.47 million. This is the highest level seen for 14 years. The number of people claiming unemployment benefit has also increased to reach 1.6 million, the highest amount since May 1997. The unemployment rate now stands at 7.9% and some commentators have said that although there have been some encouraging signs in the economy recently – rising house prices for instance – the increase in the number of people out of work is concerning and shows the economy still has a way to go before we're out of recession. If you are worried about losing your job or have recently been made redundant, Credit Action has a Redundancy Moneymanual which will tell you all you need to know about redundancy. This can be read online or downloaded for free here
The link between debt and mental health – A report released this week, called "London Capital of Debt" has highlighted the link between those living in London who have mental health problems and debt. The report says that approximately one million Londoners have mental health problems and just over a quarter of these are worried about debt. That therefore equals 250,000 people in the capital. The report has recommended that GPs point people towards the places where their patients can receive help if they are concerned about debt. If you are worried about debt visit your local Citizens Advice Bureau or call the Consumer Credit Counselling Service on 0800 138 1111. Both of these services are free and they can help you get back in control of your finances.
Unemployment rises further – The Office of National Statistics (ONS) released its latest statistics which show that unemployment in the UK rose by 210,000 in the three months to July, to reach 2.47 million. This is the highest level seen for 14 years. The number of people claiming unemployment benefit has also increased to reach 1.6 million, the highest amount since May 1997. The unemployment rate now stands at 7.9% and some commentators have said that although there have been some encouraging signs in the economy recently – rising house prices for instance – the increase in the number of people out of work is concerning and shows the economy still has a way to go before we're out of recession. If you are worried about losing your job or have recently been made redundant, Credit Action has a Redundancy Moneymanual which will tell you all you need to know about redundancy. This can be read online or downloaded for free here
Thursday 17th September
Students experience delays – Many students across the country are getting ready to begin university this week. Yet tens of thousands of students have been affected by delays in receiving their student loans and grants. For many students not having the funding they need before they begin university is a big problem, because tuition fees, accommodation and travel all need to be paid in the first week of starting. With more people applying for financial support whilst at university, the Student Loans Company (SLC), the body in England responsible for administering student support applications, has struggled to cope with the volume of applicants. The SLC has said that students will receive the correct amount of support by the end of October, but many students will begin university this autumn with only the basic amount.
Students experience delays – Many students across the country are getting ready to begin university this week. Yet tens of thousands of students have been affected by delays in receiving their student loans and grants. For many students not having the funding they need before they begin university is a big problem, because tuition fees, accommodation and travel all need to be paid in the first week of starting. With more people applying for financial support whilst at university, the Student Loans Company (SLC), the body in England responsible for administering student support applications, has struggled to cope with the volume of applicants. The SLC has said that students will receive the correct amount of support by the end of October, but many students will begin university this autumn with only the basic amount.
