Credit, Collections & Insolvency News
A significant portion of the UK population remains financially stable despite rising interest rates and persistent inflation according to new research by TransUnion. The figures illustrate a contradictory picture of the financial landscape among consumers. On one hand, almost six in 10 (58%) have proactively taken steps to reduce their discretionary expenditures such as dining out,…
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The Money Advice Trust has published its latest Outcomes Report, which shows the scale and impact of the charity’s work helping people and small businesses in financial difficulty. Last year, through its National Debtline and Business Debtline, the Trust helped 140,980 individuals and small business owners to tackle their debts, with 1.87 million visits to…
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New IFS research, funded by the Joseph Rowntree Foundation (JRF), shows that 48% of 50- to 70-year-olds who had recently left the workforce in 2020–21 ended up in relative poverty. This was significantly higher than the percentage of individuals who were in poverty after leaving the workforce in pre-pandemic years – even though overall poverty…
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One in five (3.4 million) people aged 50-69 and one in twelve of over 70s (670,000) in the UK have had to borrow more money or use more credit than usual in the last month compared to a year ago, new research by Age UK has found. The analysis showed that 1.3 million over 50s have a…
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Stronger economic growth is fundamental to restarting rising living standards in the UK, but must be accompanied by reform to our economy and benefits system if the rewards are to be widely shared, according to new Resolution Foundation analysis. While some argue that growth isn’t desirable and doesn’t feed through to rising wages for normal…
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The number of households struggling with heavy debt has increased by two thirds since 2017, according to charity Debt Justice. The report shows that around 12.8 million adults in the UK are falling behind on bills or finding repayments a struggle. The Financial Conduct Authority’s Financial Lives survey found that 7.7 million adults in the…
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New research by Hargreaves Lansdown has found that one in four spending more than they have earnt creating a risk of running up debts. The study also found that higher-income households are borrowing more as a percentage of their income – and have a bigger share of their borrowing on variable rates and are more…
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The Financial Conduct Authority (FCA) has made rulebook changes in an effort to grant households relief from rising mortgage rates. Lenders will be able to offer borrowers a switch to interest-only payments for six months. They will also be able to offer an extension to mortgage terms to reduce monthly payments, with borrowers given the…
Read moreChancellor of the Exchequer Jeremy Hunt agreed a new action plan with regulators to try to ensure consumers are being treated fairly and help those struggling to make payments. As part of the government’s plan to halve inflation this year, the Chancellor chaired a roundtable with CEOs from the Competition and Market Authority (CMA), Financial…
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Research by the Centre for Business and Economics Research (CEBR) and Asda has revealed that wealthy households in the UK were the only group to see a rise in living standards this year, while poorer families are being pounded by soaring energy and food bills. The decrease in disposable income has been particularly stark for…
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The UK needs to move away from its simplistic and pernicious cycle of promising tax cuts while delivering tax rises, and towards reforming and improving our tax system so that it supports, rather than hinders, economic growth, according to new research Resolution Foundation. Tax planning – the 39th report of The Economy 2030 Inquiry, funded by the…
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A new research paper from Beagle Street has estimated that over £400 billion of mortgage debt is not covered by life insurance in UK Beagle Street Associate Marketing and Distribution Director, Beth Tait, said “With this study, we aimed to give intermediaries the powerful evidence they need to recommend that customers take the critical step of protecting…
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Latest analysis of credit card data from FICO has painted a picture of considerable consumer financial volatility as the dual pressures of higher inflation and higher interest rates squeeze funds. FICO says the ongoing inflationary challenges faced by consumers continue to be reflected in higher levels of credit card spend, compared to 2022 – with…
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