However, an even greater concern is that many of those who are facing huge debt problems in the area are choosing to ignore the issue and hope for the best rather than tackling it and trying to get things sorted out. This is according to Poole CAB manager Richard Bristow. He said that many of the debt problems that people now faced in the area had been set off as a result of unexpected problems such as job losses, benefit cuts, ill health and other circumstances that had unexpectedly affected income levels.

He said that it was vital that those who were struggling with their debts sought advice and assistance before the problem spiralled out of control. There are a number of measures that can be used to help people that have fallen into unmanageable levels of debt but unless those people acknowledge their debt problems and seek help to get them sorted the problem could simply be left to fester and could continue to get worse.

He said: “Debt represents 45 per cent of our workload but there are ways to deal with it, even if it seems impossible.” He added: “People can make a start if they face up to the reality. Most people bury their heads in the sand and hope debt will go away or they will win the Lottery but, in reality, that is not going to happen.”

Dorset debt concerns on the increase is a post from: The Thrifty Scot

With the cost of living soaring and energy prices having been hiked most consumers can ill afford to lose such a large chunk of their income each month on servicing debts. However, the average adults Brit is said to be paying out around £322 per month, which comes to 25 percent of the average income, which stands at £1288.

Whilst the report was being compiled debts such as credit cards, overdrafts and personal loans were looked at. The average amount each Brit owes in personal debt such as these is around £7388 although the average in London is the highest, where personal debt stands at an average £8478 per person. However, Londoners pay out a lower percentage of their income of servicing their debts, paying out around 22 percent of their monthly income.

One industry official stated: ‘With the cost of living continuing to rise, consumers are feeling the squeeze on their wallets more than ever. It’s therefore worrying to see such a high number of people needing to use so much of their income just to service existing debt. However, making the most of every pound really does count when it comes to the end of the month, and it’s vital that those needing to repay debt are doing so using the best method.’

Some Brits spend huge chunk of income on debt repayments is a post from: The Thrifty Scot

A study was carried out by the Chartered Institute for Personnel and Development (CIPD), with the results showing that around 75 percent of workers had not received any pay increase this year. With most pay increases being paid between January and May, the CIPD has said that this means that most of this 75 percent would not receive any increase in their wages at all this year.

With regards to public servants, 80 percent said that they had not received any pay increase this year. This followed the announcement by the chancellor, George Osborne, last year who said in his Spending Review that public sector wages would be frozen for two years except for those that were on salaries of under £21,000.

It is though that private sector salaries could see increases this year, mainly because the minimum wage is due to rise in October so some industries will see a sharp increase in salaries such as the hospitality and retail industries.

An official from the CIPD said: “Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt-tightening. We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October.”

Pay freezes could lead to more debt is a post from: The Thrifty Scot

On top of these rocketing costs many consumers are still struggling with debt repayments, which have further impacted on their spending power and financial security. The data comes from the latest report from Markit, which was based on data from data from Ipsos Mori. The data showed that almost 40 percent of households reported deteriorated household finances. Many are having to find ways to cut back on their spending as a result of increased outgoings and with the latest round of energy price hikes that are set to come into play over the coming weeks things don’t look to be getting any better.

There were only 6 percent of households that reported an improvement in their household finances. According to the research group, inflation and high levels of personal debt were main contributory factors in the state of finances amongst UK households. The group also said that personal debt levels amongst households had increased for the fourth month in a row. However, despite this bad news with regards to household finances and spending power amongst consumers in the UK, the report also showed that consumers were feeling far more optimistic about their finances over the up and coming twelve months, with optimism over finances said to be at its highest level since the beginning of this year.

Markit’s senior economist, Tim Moore, said: “The mood among British households has been as gloomy as the weather this summer. Higher living costs and stretched disposable incomes continue to weigh heavily on consumer finances.”

Personal debt affects household income is a post from: The Thrifty Scot

A recent report has highlighted how those that have become the most dependent on credit cards are people that are on lower incomes, who are finding it the most difficult to make ends meet. This data comes from the leading debt charity, the Consumer Credit Counselling Service, which recently released figures relating to credit card debt.

According to the charity’s recent report, the Debt and Household Incomes report, people that are earning less than £13,500 a year have average unsecured debts that amount to around 20 percent more than their annual income. For example, someone that is earning £10,000 a year owes around £12,000 in unsecured debt on credit cards and loans. The charity also revealed that many people that called the charity for advice, and were on an income of between £13,500 and £25,000, did not have enough available money each month to keep up with all of their personal debt repayments.

An official from the Consumer Credit Counselling Service said: “Unfortunately, these figures confirm our fears – that troubled times lie ahead for many people in the UK. This pain is going to spread wider and affect many more people than commentators previously assumed.”

Another charity, the Resolution Foundation, said that things could continue to get worse for many of those that had debts, stating: “Many people who scraped through the recession are going to find the next few years even harder.”

Low earning people more reliant on credit cards is a post from: The Thrifty Scot

More and more people have found themselves needing financial advice of some sort or another over recent years, with rising debt levels and increased confusion over finances making it more necessary for people to get advice about their finances. However, many were happier and more comfortable to get this advice from people that they were close to rather than opt for a stranger with expertise in the area.

Out of those aged between eighteen and twenty four years only around one quarter tended to opt for professional financial advice in the first instance, with most turning to their friends and family for this advice. However, with consumers aged sixty five and over around three quarters would seek advice from a professional with regards to their finances. Officials said that there seemed to be a lack of understanding with regards to the services that Independent Financial Advisors were able to offer, which was partly why so many people were avoiding these industry experts and asking people that they knew for advice about their finances. Many others were turning to the internet to get advice.

An official from Aviva said: “It’s a concern that so many people are relying on friends or family and the internet for financial advice, and that they are not aware of what an IFA could offer them.”

Younger people get advice on finances from family and friends is a post from: The Thrifty Scot

The debt charity Consumer Credit Counselling Service has said that there are some concerns about the rising levels of debt that have been seen in Crewe recently, adding that this had been creeping up over the past two years taking it to a level that was significantly higher than the national average. Things such as pay freezes, job losses, government cutbacks, and soaring living costs have all impacted on consumer debt levels.

The figures showed that around 568 people from Crewe contact the CCCS for assistance with debt problems, and this was an increase of 34 percent over two years. In terms of unsecured debt the average amount that was owed by people contacting the charity in 2010 was £23,177. This was significantly higher than the national average of £19,338. Figures are available on a new map on the CCCS website, which is called Debt View and allows personal debt levels to be broken down by regions, areas and postcodes.

The CCCS said: “I am very concerned – not only by the high levels of debt we are seeing in Crewe, but also by the continuing squeeze on household budgets that is making it increasingly difficult for debtors to repay what they owe. I would urge anyone in Crewe who is worried about how to deal with their debts to seek free advice from a charity such as CCCS as early as possible.”

Crewe debt levels cause for concern is a post from: The Thrifty Scot

More and more people have been signing up to debt management services with one of a wide range of debt management firms that are now in operation. However, a few of these firms have been found to be failing to pass the payments that are being made onto the creditors, which is leaving the clients exposed to things such as court action.

According to reports several companies have already been found guilty of this practice, and officials have warned that if clients’ cash is not in a protected account and the company goes out of business the money will most likely be lost. A couple of companies that were engaging in this practise have already gone out of business, and according to one industry expert there are around ten thousand people that are still in danger as a result of this practise.

The payments are meant to be distributed to creditors within five days of the debt management firm receiving payments, but some firms had been hanging on to them for much longer. This included two that have gone out of business, including Apex Debt Counselling & Management and Global Debt Solutions.

An official from the Office of Fair Trading said: ‘We regard this practice as unacceptable. Where we have evidence we will remove a company’s consumer credit licence, which means it cannot operate.’

Debt management firms exercising rogue practices is a post from: The Thrifty Scot

Around four thousand families were studied as part of the research, and the results showed that couples without children had managed to reduce their debt significantly, those that were planning children had reduced their debt by a little, and those that already had children had increased their debt levels.

An official from Aviva said: “Families with children have different financial commitments from those without, and as such are likely to face different pressures on their monthly income. Those with children may have extra priorities such as childcare and extra-curricular activities and may well feel the pinch of meeting these costs.”

Some families are spending around 10 percent of their income on repayment of the debts that they have according to the research, which is 2 percent more than they were spending on debt repayments in January. Households with children are also facing higher payments relating to childcare, which has added pressure to their finances and created a situation where they are even more likely to see their debts increase.

Belinda Phipps, the chief executive of the National Childbirth Trust, said: “These statistics back up what we hear from the thousands of parents we work with each year – they are having a very tough time indeed. In the current financial climate every penny counts, so our Nearly New Sales are more popular than ever.”

Household debt for families gets worse is a post from: The Thrifty Scot

According to officials from the Money Advice Trust there are now many younger and unemployed people that are struggling with their debts in the UK, with the number said to have reached around 55,000. There are nearly one million young unemployed aged between sixteen and twenty four according to the figures and around 5.5 percent of them now have debts that they are unable to manage.

The study was carried out over a three year period and officials from the group said that they were urging young people that were struggling with their debts to contact a debt advice expert to get help with sorting out their finances rather than letting them get out of hand until they were out of control. There are many different debt charities that they can get help from in order to try and get back on track with their finances.

An official from the Money Advice Trust said: “This is a desperately sad situation for so many young people to face. Dealing with debt can be a distressing experience which impacts right across our lives.”

Another industry official added: “Getting into debt problems at such a young age will impact these people for many years to come. The implications are years with poor credit ratings and probems with getting onto the housing ladder”

Many younger people struggling with debts is a post from: The Thrifty Scot