Personal insolvencies rise by 9.2%

18th October 2021 Arrears and Recoveries |

Latest figures from the Insolvency Service have indicated that person insolvencies increased by 9.2% to  9,954 in September 2021 compared to August’s figure of 9,118, and were 33.2% higher than September 2020’s figure of 7,471. There were  614 bankruptcies were registered, which was 42% lower than September 2020 and 55% lower than September 2019. Numbers…

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Over one-third of care home residents struggling to pay for their care

18th October 2021 Arrears and Recoveries | #debt

Over one-third of care home residents face long term struggle of paying for their care according to new ONS statistics. The research found that in 2019/20 it is estimated 143,774 or 36.7% of people in care homes in England were self-funders. This compares to 248,153 who are state-funded. The South East had the highest proportion…

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Bank of England issues warning over potential loan default rise

A Bank of England (BOE) survey of lenders suggests that more households are expected to have defaulted on mortgages and other loans by the end of November. The Bank’s credit conditions survey asks banks and building societies to detail the climate over the previous quarter and what they expect in the next three months. While…

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Rental arrears figures rising

The Department for Levelling Up Housing and Communities has released the third wave of the Household Resilience Survey which has indicated that renters’ resilience has been pummelled by the pandemic, and has highlighted the new threat of inflation. The research found that 7% of private renters were behind on the rent in April-May (up from…

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Card spending figures show that financial confidence remains strong

13th October 2021 Banking and Loans | #credit cards

Latest card spending figures from global analytics software provider FICO has indicated that the summer holidays and continued reliance on pandemic savings probably contributed to a growth in average spending on cards. The analysis shows that the average spend on credit cards increased £23 to £711 in August 2021. This is the highest level since…

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Second charge mortgage new business grows by 103%

New figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business volumes grew by 103% in August 2021 Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA), said:…

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CSA warns of fallout from energy company failures

The Credit Services Association (CSA), the UK trade association for organisations active in the debt collection and purchase industry, has written to Ofgem to seek clarification in respect of the standards customers should expect in regards to the practices of administrators and accounts in arrears. It has also asked for reassurance that the integrity and…

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Council tax could rise £220 in next three years

7th October 2021 Consumer Collections |

Council tax in England could rise by as much as £220 per year within three years, researchers have according to new research by the Nuffield Foundation in partnership with Citi. Under current government spending plans, council tax increases of 3.6% per year will be needed for the next three years just to ensure councils can…

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Universal Credit cut will worsen rent arrears crisis

7th October 2021 Arrears and Recoveries |

The Universal Credit cut will worsen rent arrears crisis according to the National Residential Landlords Association (NRLA) The NRLA says that with the  Government pressing ahead with a planned cut to Universal Credit of £20 per week, the level of welfare support which had been increased in light of the impact of the pandemic on…

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Government urged to rethink £20 a week cut to Universal Credit

6th October 2021 Arrears and Recoveries |

The Government will today (Wednesday 6th October) withdraw £20 a week in support from Universal Credit claimants in a move that debt charity, StepChange says will have devastating consequences for its clients. Before today’s cut, among StepChange clients who rely on Universal Credit, the majority (59%) had more income than outgoings each month. Now, just…

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Sustainability of social care now entirely dependent on Chancellor’s spending review

4th October 2021 Consumer Collections |

More than fifty charities and not-for-profit organisations have written to the Chancellor of the Exchequer, Rt Hon Rishi Sunak MP, calling on him to use his autumn Spending Review to pump the extra resources into social care. The charities say that the vast bulk of the money from the Government’s National Insurance rise will be…

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Furloughed workers relying on credit cards, family and friends, and loans

29th September 2021 Arrears and Recoveries |

As the furlough scheme comes to an end this month, research from Canada Life has revealed how currently furloughed workers have boosted their income throughout the pandemic. The most common way of boosting finances was borrowing money on credit cards, with two in five (44%) saying they have considered or done this. This was closely…

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Post-lockdown boost to financial wellbeing fading

29th September 2021 Arrears and Recoveries |

The boost to financial wellbeing triggered by the relaxing of pandemic measures dipped during the third quarter despite the first rise in household income from employment since Q1 2020, according to the latest Scottish Widows Household Finance Index. The Index, which measures households’ overall perceptions of financial wellbeing, dipped from 44.7 in the second quarter…

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