6.2 million households identified as ‘financially vulnerable’

Analysis conducted for the Consumer Credit Counselling Service (CCCS) has identified 6.2 million households as ‘financially vulnerable’.  This includes 3.2 million households which are ‘already in financial difficulty’ (either three months behind with a debt repayment or subject to some form of debt action such as insolvency), and a further 3 million who are ‘at risk’ of getting into financial difficulty because they are finding it hard to make ends meet and struggling with increasing household bills.


Source: Credit Action – August 2011 edition

Number of Scottish people going bust rises by 25%

The number of people going bust in Scotland rose by a quarter in the first few months of this year, according to official figures.

The Accountant in Bankruptcy said more than 5,000 people were declared insolvent between April and June.

The number of people opting for the voluntary protected trust deed to help write off their debts rose up by 51%.

Read the full article at bbc.co.uk


Interest rates unchanged until 2012, say economists

A majority of economists polled by the BBC expect interest rates to remain unchanged until next year.

Of the 32 forecasters, who are also regularly polled by the Treasury, 26 predicted that rates would not rise this year, and three predicted there would be no rate increase until 2013.

More than half expected the Bank rate to rise from its record low of 0.5% to at least 1.5% by the end of 2012.

The Bank rate has now been at a record low for more than two years.

Read the full article at bbc.co.uk

£1.47 billion spent by Brits abroad over the summer holiday season

Barclays estimate that, over the course of the six week summer holiday period, British holidaymakers will spend a total of £1.47 billion whilst they are abroad (via debit cards and cash withdrawals).  However, Barclays say that this figure is broadly the same as that for summer 2010, and suggest that this shows that consumer confidence has not totally bounced back since the end of the recession.  Spain, France and the USA are the favourite holiday destinations for Britons, and are expected to account for around two-fifths of all overseas debit card spending.


Source:  Credit Action – August 2011 edition

Credit Action – Debt Stats Round Up for August 2011

  • Every 4.36 minutes someone will be declared insolvent or bankrupt
  • Every 14 minutes a property is repossessed
  • 1,578 people are made redundant daily
  • Citizens Advice Bureaux deal with 9,072 new debt problems each working day
  • The average household debt (including mortgages) is £55,803
  • 807,000 people in the UK have been unemployed for 12 months or more
  • £177,000,000 is the amount of personal interest paid in the UK on a daily basis

How many hours do you have to work to pay off your debt?

Figures released by the Consumer Credit Counselling Service (CCCS) suggest that their average client has to work until 4pm on a Wednesday each week just to earn enough money to repay their unsecured debts.

The average person contacting CCCS in 2010 owed a total of £22,476 in unsecured debt, and faced a monthly bill of £675.52 simply to meet repayments.


Source: Credit Action July 2011 edition