Escaping to the sun this summer?

Research by Sainsbury’s Finance suggests that 28.9 million Brits plan to spend a total of £22.1 billion on holiday escapes during 2012 – on average, those planning to travel will spend £765 on the cost of their holiday alone.

However, the majority of us are looking to cut the cost of our holiday this year, with 78% of those planning a break in 2012 saying that they intend to spend less than in previous years.  45% of those surveyed planned to holiday abroad while nearly the same amount (43%) intended to holiday in the UK.


Source:  Credit Action – February 2012 edition

Families struggle with household savings

Figures from First Direct suggest that 28% of households (equivalent to 6 million households nationwide) have less than £250 in savings.

With average monthly household outgoings currently standing at £1,536, savings of £250 would last for just five days if a household was to unexpectedly lose its main source of income.  If they were to find themselves in this position, a worrying 11% of households would use a personal loan or credit card to meet their expenses, while a further 11% would rely on an overdraft.


Source:  Credit Action – February 2012 edition

Scottish insolvency figures fall

The number of Scots going bust fell in the last quarter but remained slightly higher than the same period of 2010, according to official figures.

The Accountant in Bankruptcy (AiB) reported 4,664 personal insolvencies in the third quarter of 2011-12.  This was 13% lower than the previous quarter but up year-on-year by 2%.

Awards of bankruptcy fell for a second successive quarter, while protected trust deeds were 19% down on the previous three months.

However, both bankruptcies and total insolvencies were higher than the corresponding quarter of the previous year.



25-34 year old males are Britain’s most dedicated savers

Data from the latest NS&I Savings Survey has revealed that young men aged 25-34 are amongst Britain’s most dedicated savers – they put away an average of £104 each month, well above the national average of £88.

The survey goes on to find:

  • 47% of this group are prioritising saving in order to afford a deposit for a home, while 25% are saving for a holiday and 23% are saving to ensure financial security in case of an emergency.
  • On a proportional basis, young people aged between 16 and 24 are managing to put aside 7.8% of their monthly income, which is a higher rate than anyone in the 25-65 age range.


Source:  Credit Action – February 2012 edition

Personal insolvencies down 11% in 2011

Fewer people were declared insolvent in 2011 in England & Wales than during the previous year, but the number of companies going bust increased.

The BBC reported there were 119,850 people declared insolvent over the year which according to the Insolvency Service was down 11.3% on the record high of 2010.

However, the number of firms going bust in 2011 increased by 1.3% compared with 2010.

Read the full article at


Are you in the mood for saving?

Legal & General’s latest Money Mood Survey has revealed that 69% of people say that they are in the mood to save, and note that the mood of the nation has moved increasingly towards saving since the Coalition Government took power in May 2010.

The survey found:

  • The percentage of women who say they are in the mood to save has increased from 67% in 2011 to 72% in 2012, while the proportion of men fell from 70% to 66%
  • The top two things we said we were saving for last year – a rainy day and a holiday – remain the same but there has been a marked increase in saving for things that help to manage household finances
  • The number of people saving to pay a household bill has increased from 33% to 49%, while the number of people saving to pay off their credit card debt rose from 12% to 21%


Source:  Credit Action – February 2012 edition

Credit card borrowing fades as payday loans rise

Demand for credit cards is ‘feeling the strain’ as UK borrowers turn to other forms of finance, a report has said.

Households paid off some unsecured debts in 2011 but were still left with an average debt of about £7,900 according to PricewaterhouseCoopers.

They went on to say credit cards were facing a ‘mid-life crisis’ as people used debit cards, digital payments and payday loans instead.

Read the full article at