When faced with debt problems, people have a tendency of avoiding proper action until it is too late and the debt accumulates to an amount that they are no longer able to afford. This is, however a very bad idea, especially when debt problems are not as hard to fix as they might seem.

One of the things you can do in order to solve your debt problems is to do a little research on the internet and find a loan company with a better repayment plan, better rates and terms than your current loan company and apply for a consolidation loan. Make a list of the companies in your area that provide the best conditions and then compare their rates in order to find the one that best suits your needs. However, you need to make sure that you take all the aspects of the loan contract, such as payment method, payment period and rates into account and not just pick the one with the lowest interest.

Another way you can deal with your debts is to renegotiate the payment plan with your current loan company. Read more…

Young adults are more at risk of debt problems than other age groups in Wales, according to a study into the use of credit.

Consumer Focus Wales found that people in the 18-34 age group are most likely to suffer from debt problems, with 29% saying they have fallen behind on bills or debt repayments in the last year.

The research also found that the “realities of life” mean that almost half of Welsh people (47%) have turned to credit to get by.

Many of those not currently in arrears still struggle with their finances: more than a third (35%) said they struggle from time to time with bills and credit repayments, while 17% said they faced a “constant struggle” or are facing “real financial problems”.

Lindsey Kearton, Senior Policy Advocate at Consumer Focus Wales, commented: “Our research shows there may be a `ticking time bomb` in terms of people`s ability to cope financially over the coming months. There are already signs that consumers might be overstretching themselves. Read more…

New figures have shown that almost one third of people who have sought help with their debt problems have been told that there is no “appropriate” action they can take to tackle their financial situation.

The research from the Consumer Credit Counselling Service (CCCS) has released the figures after reviewing calls made to their free debt advice helpline and said that 30,446 people (32% of those surveyed) who had received debt advice were told that there was no “appropriate” debt solution for their financial problems.

According to the debt charity the only advisable course of action would be to increase their earnings, which the CCCS acknowledged as being near impossible for most households.

The charity said that the main causes were not severe debts from big loans or credit cards, but rather a slight increase in their outgoing costs, while their incomes remained static. The main causes of increased outgoings vs. Incomin

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The Chief Financial Ombudsman has warned that masses of homeowners could face future debt problems after taking out an interest-only mortgage.

The Financial Ombudsman Service is an independent complaints committee who resolve consumer complaints and they have warned that people who took out interest-free mortgages a decade or so ago may not realise that their actual loan hasn’t been paid off – only the interest on it.

An interest-only mortgage means that you only have to repay the interest generated on your home loans, not the actual loan itself. This means that at the end of the agreed period the initial loan that you have taken out will not have been paid back, unless payments were increased.

Banks and building societies have recently clamped down on interest free mortgages, in the wake of the recession, to make sure that customers will be able to repay their debts.

Chief Ombudsman Natalie Keeney said: “We know there was a big boom of interest-only mortgages around 15 years ago.
“Our fear is when they mature, people will retire with big debts. We

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Over a third of parents say they will end up with debt problems as a result of the school summer holidays, a new survey has found.

The research by poverty charity Elizabeth Finn Care, in conjunction with YouGov, aimed to look at the impact of the summer holidays on family finances.

16% of those surveyed said that they would be using a credit card to cover the costs of the summer holiday whilst 14% will resort to using their overdrafts, and a further 8% of parents will borrow money from family members.

30% of parents surveyed said that the recession meant that they would not be able to take a family summer holiday this year because of financial worries, and a further 11% said that they are planning to take their children out of school to go on holiday because it is cheaper to go outside of the school holidays, with a holiday in peak time in mid-august costing up to 85% more.

The chief executive of Elizabeth Finn Care, Matthew Sykes, said: “Our research shows the apparent willingness of families to go into debt to cover the cost of the summer holidays.

“Worryingly, 4% will even borrow the money from a doorstep lender offering ‘quick fix’ loans and risk owing a huge amount of interest.

“At the same time we know that £16.8bn of welfare benefits went unclaimed from 2007 to 2008 and those in genuine financial need to see what benefits they are entitled to and if they are eligible for grants from charities.”

Barnardo’s, the children’s charity, said that they predicted a rise this year in the number of families who would suffer debt problems as the result of the summer holidays.

Parents have said that they will be forced to cut down on the number of activities for thie children over the summer holidays, with 19% saying they would not be able to afford taking their children swimming, 25% saying a day a the seaside was too expensive, 40% will not be taking their children to theme parks and 10% will not have enough money to pay for an activity club.