Energy bills driving more consumers into debt

The number of people calling a leading debt advice charity because they are struggling with energy bills has increased by 180% in the past four years and the situation is likely to worsen this summer with the Bank of England warning that energy prices are set to jump by 15% for gas and 10% for electricity.

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Today in the UK…..

  • 331 people every day of the year will be declared insolvent or bankrupt
  • The average cost of raising a child from birth to the age of 21 is £27.50 a day
  • 100 properties were repossessed every day during quarter 1, 2011
  • £151,230,000 is the interest the Government has to pay each day on the UK’s net debt
  • 24.1 million plastic card purchase transactions will be made today with a total value of £1.156 billion


Source:  Credit Action June 2011 edition

Are rising motoring costs good for the local community?

A survey by Santander has found that three quarters of motorists (equivalent to 29 million people nationwide) admit that they are now using their cars less, with 62% blaming the rising cost of motoring.

As a result, Santander suggests that many drivers are now spending more in their local communities, with 29% buying more from local shops, 12% going for dinner and drinks nearer to where they live and 7% making greater use of local amenities such as leisure centres.


Source:  Credit Action June 2011 edition

Have you reached your ‘affordability tipping point?’

Research from has found that 22% of Brits say they are now so stretched, they have reached their ‘affordability tipping point’ and can no longer make ends meet as the cost of living has now become too high for them.

Moreover, 30% of those surveyed suggested that if their monthly outgoings increased by less than £100, they would be unable to meet everyday living costs.

40% of adults said that the soaring cost of petrol had had the most significant effect on their spending and budgeting over the last 12 months.


Source: Credit Action June 2011 edition

First time buying?

If you’re a first time buyer, you may be interested to know:

  • In March 2011, the average house price in the UK for first time buyers stood at £150,011 which is an annual decrease of 0.3%
  • According to Credit Action, the typical first time buyer deposit in March was 21% (£30,952)
  • The average first time buyer borrowed 3.15 times their income
  • The average first time buyer loan was £116,438
  • A survey by has found that the average age at which people in the UK expect to be able to buy their first property is now 38

Poorest ‘hit hard by recession’, says BBC-IFS study

Pensioners and the poorest households are amongst those that have been the worst hit by the recession, according to a study by the Institute for Fiscal Studies (IFS) and the BBC.

Across the board, real incomes in the UK fell by 1.6% a year between 2008 and 2011.  The study found that incomes have fallen because of loss of employment during the recession, lower interest earnings on savings and low wage inflation relative to price inflation.

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