Credit, Collections & Insolvency News
A year on from the start of the pandemic, new research from StepChange Debt Charity has revealed that nearly a quarter (23%) of the 1.6m people who’ve accessed credit payment deferrals have subsequently missed repayments, while half (50%) say they have resumed repayments but with difficulty. Since last week people struggling financially as a result…
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New research by Key has indicated that retired households saw their average disposable incomes fall by 12% last year. The analysis shows average disposable incomes for retired people fell in the financial year ending 2020 from the previous year by nearly 12% with much of the cut coming from lower private pension income and investment…
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Here is an overview of The Money Charity’s latest statistics for March 2021 Personal debt in the UK People in the UK owed £1,700.2 billion at the end of January 2021. The average total debt per household, including mortgages, was £60,999 and per adult was £32,087, around 107.6% of average earnings. Net mortgage lending rose by…
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Consumers paid off £1.2 billion in credit card debt and overdrafts in the final month of full lockdown according to the latest Bank of England figures. The figures showed that net repayments on products such as credit cards, personal loans and overdrafts were at the strongest annual rate in 27 years. The repayment figures are…
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One in five consumers in the UK (20 percent), equating to an estimated 10.2 million people, say they are worried their finances will not fully recover from the impact of Covid-19, according to new research from the Money Advice Trust. The research, based on a poll of more than 2,000 adults conducted online by YouGov,…
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Nearly a third (31%) of credit cardholders have been unable to repay their balance in full each month since the pandemic began, which can lead to further interest and debt accruing due to high APR rates, according to new research from comparethemarket.com. Among 25-34-year-olds, this figure increases to more than two-fifths (41%). Millennials are the hardest…
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The divide between rich and poor is widening, as many consumers have grown their savings during the COVID-19 pandemic, while others are struggling to make ends meet according to new research by TransUnion. The research reveals the pandemic has given over a third (35%) of UK adults the chance to increase their savings and 16%…
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Credit Connect’s hosted its second Online Collections Technology Think Tank 2.0 last week which saw collections strategies and the impact of the pandemic discussed by fourteen collections professionals from a variety of industry sectors. The themes of business transformation, customer engagement, affordability, and open banking collections were discussed by panellists and Chair Vanessa Northam from StepChange.…
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Over-55s have used housing equity to clear more than £612 million of unsecured debt in 2020, according to new data analysis from Key shows. Credit cards (av. £8,500), overdrafts (av. £2,000) and loan balances (£11,700) were most commonly repaid as people looked to manage their retirement income by reducing outgoings. Around a fifth (18%) of…
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Two-thirds (66%) of consumers wait over a year to do something about their debts according to new research from debt advice specialist PayPlan. The report also shows that 73% feel embarrassed to reach out for debt support and A third of people put off help as they don’t want their friends or family to find out…
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Marking the start of the Debt Awareness Week, debt charity StepChange is encouraging people to take TheFirstStep towards getting debt help, by opening up the conversation around debt and removing the stigma that can surround financial problems. Debt Awareness Week is the charity’s annual campaign to raise awareness of problem debt and remind people that…
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Citizens Advice is warning that debt is the looming problem of the pandemic. As the one-year marker since lockdown began approaches, the charity has charted a worrying increase in the need for advice, food bank referrals and charitable grants. The charity’s 12 months of pandemic data maps the waves of demand for different types of…
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The Covid-19 Pandemic has left six million people more afraid of becoming homeless according to new research by Shelter. The charity’s research indicates that one in seven adults (14%), equivalent to more than six million people in England are more worried about becoming homeless due to the pandemic. With people’s incomes slashed, job losses mounting, and people hanging onto their…
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