One form of mortgage could be about to become the subject of an increase in repossession statistics, the Finance and Leasing Association (FLA) has claimed.

While many people are dealing just with a first mortgage, some borrow using second charge mortgages – which secure further borrowing – and FLA members revealed that the number of repossessions arising from these turning sour fell in 2011.

The tally last year was 827, 4.3 per cent less than in 2010 and 48.7 per cent fewer than in 2008.

Head of consumer finance at the FLA Fiona Hoyle said: "Repossession levels have fallen for the third consecutive year as lenders continue with forbearance measures aimed at helping customers in financial difficulty to remain in their homes."

However, the body has predicted the number of these repossessions could be set to rise overall in 2012 and the 2011 statistics provide a reason to suggest such a situation will occur.

It revealed that the overall drop last year was entirely down to there only being 195 second charge repossessions in the first quarter – down by 67 (or 25.6 per cent) on the equivalent period in 2010.

However, when compared to the corresponding period in 2010, the other quarters saw more repossessions, with the tallies up by 1.7 per cent in the second quarter, 3.8 per cent in the third and 11.3 per cent in the final three months.

This may suggest an increasing number of homeowners with second charge mortgages may need to seek debt help or even an individual voluntary arrangement if they are to increase their chances of saving their homes.

Figures for all repossessions produced by Credit Action recently revealed that, based on trends seen in the third quarter of 2011, 101 properties are repossessed every day, the equivalent of one every 14 minutes and 17 seconds.

Second charge repossessions ‘set to rise’ is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

Many Britons are in danger of slipping into debt through using an overdraft every month, with cash becoming tight at increasingly early stages.

This was the finding of a survey by Halifax, which has revealed one in ten people find money starts getting tight within a week of them receiving their salary.

And the average person begins to get concerned after 17 days, meaning two weeks of worry and possible debt lie ahead before the next salary is paid into their bank.

So concerned are some consumers that they keep checking their bank account to keep a close eye on the balance, with 38 per cent stating they know how much money is in their account to the nearest £5 and 23 per cent to the nearest £10.

One-in-five consumers check their balance at least once a day and a similar number do so more than three times a week.

Commenting on the situation, director of current accounts at Halifax Anthony Warrington said: "With mobile banking apps and internet banking, it's much easier to stay on top of spending and account activity whilst on the move.

"It's encouraging to see people take control of their bank balance, as it means that they will have a better awareness of their own financial needs."

However, little of this may actually help deal with debt itself, as that will require not just monitoring balances action to trim expenditure, or bring monthly payments down.

Debt consolidation such as switching to a credit card with a lower rate, or taking on a loan that pays off a borrowing from multiple sources with a lower overall monthly payment and less interest is one way people can effectively reduce the burden.

Women are one group that has run up too much personal debt in recent years, due to seeking "financial independence" from husbands, director of Women In Debt Georgina Earle stated this week.

By James Francis

Debt problems may increase as just 17 days are worry free is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

Many consumers are setting about reducing their debts, but such action could leave others in a worse financial situation – particularly those employed in retail.

The latest British Retail Consortium (BRC) figures on retail sales contained in the BRC-KPMG Retail Sales Monitor for January 2012 showed a 0.3 per cent decline in like-for-like sales compared with the same month in 2011. Sales were up by 2.1 per cent on a total basis, compared with 4.2 per cent a year before.

And while 2011 began with a bounce-back after the severe cold of December 2010 suppressed activity, the figures were still the second worst for January in the history of the survey, which began in 1995.

Commenting on the situation, BRC director general Stephen Robertson said: "As 2012 gets underway, it's clear people don't feel any better about the immediate future than they did 12 months ago.

"Customers parked their worries in December and spent, encouraged by discounts. Now, in the new year, reality has bitten again as concerns about jobs, wages and household costs reassert themselves."

He concluded: "Despite consumer confidence improving in January, actual spending shows households concentrating on paying off debt, saving and battening down for another tough year."

So while paying off debt may mean lower repayments for consumers, it could also lead to more retailers struggling and potentially shedding jobs.

And for those who have debts and work in shops, this could mean they get into severe difficulty, faced with ongoing interest bills to pay but without the income to cope.

The actual extent to which consumers have managed to bring their debts down has been very limited, according to research published this week.

PricewaterhouseCoopers said the average UK household reduced its debt by £355 over the course of 2011, but this still left £7,900 owing.

And at this rate the typical amount will still be £7,500 in 2013 – leaving Britons among the most personally indebted in the world, the report noted.

By Joe White

Retail figures show negative side to debt repayment is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

A debt charity has advised consumers that they have certain rights they can seek to invoke if they are threatened with bailiffs.

The Money Advice Trust is launching a week-long series of advice sessions showing people how they can deal with such potential instructions and seizure of property – often without legal justification.

It noted bailiffs will often seek to trick their way into a home, with common techniques including requests to use the toilet, pretending to be from the local council and claiming to have a warrant that makes access mandatory.

The Trust's chief executive Joanna Elson noted that the rules bailiffs must operate under are "quite complicated" and most people will not understand them all.

"However there are some rules of thumb that are very useful to be aware of and one of those is to not let the bailiffs in your property,"

She said that people should seek advice and help, even if the bailiff is waiting outside at that very moment.

Householders are not obliged to let bailiffs in unless they have already been inside the home to collect a debt, except in extreme circumstances such as unpaid tax.

While bailiffs may seek to take possessions of goods, a bigger threat for those struggling with mortgages is repossession.

Credit Action figures have revealed this happens somewhere in Britain once every 14 minutes and 17 seconds.

Posted by Paul Thacker

Debt charity warns over bailiffs is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

Women have tended to run up too much credit card debt in a bid to maintain unsustainable lifestyles, the head of a body designed to tackle their finance issues has said.

Georgina Earle, director of Women In Debt, said a major aim for ladies in recent years has been to gain "equality", with a key element of this being "financial independence" from husbands.

However, she noted, this has ultimately proved to have left many women in hock to their banks as the debts pile up, with generally lower debts than men being counterbalanced by the fact that they tend to use more expensive forms of credit like storecards and catalogues.

And, she added: "More females have been able to secure credit based on better jobs, higher salaries and if they got into difficulty there was always equity readily available in the home. However the past few years have seen a huge change and I believe that women will fare the worst."

Ladies who have overspent and are laden with arrears may wish to seek a debt management plan, which can spread out repayments.

While many women will look to have some independent spending, a lot of couples take out loans and other accounts together and this can leave both parties jointly and severally liable for the payment of a debt if they split up.

According to figures produced by Credit Action, the average household in the UK has £7,948 of unsecured debt in December 2011.

However, this was slightly lower than November's figure of £7,972.

By James Francis
 

Women ‘suffering too much credit card debt’ is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

The latest data on the economy has suggested the UK may not be heading into recession after all, an expert has said.

According to the Markit/CIPS Purchasing Managers' Index (PMI) for services, the sector saw very positive movement in January, with a jump in the index from 54 to 56 and the highest increases in confidence in a single month recorded in the history of the survey.

The news follows an improvement in the manufacturing PMI and Royal London Asset management economist Ian Kernohan said: "While it would be wrong to read too much into one month's set of data, it looks unlikely that the UK has entered a double-dip recession."

Chief economist at Markit Chris Williamson said the indications suggest the UK economy may in fact expand at around "trend" rate (the equivalent of 2-2.5 per cent annually) over the first quarter.

He remarked: "Much uncertainty persists, but this is nevertheless a far better start to 2012 than almost all were expecting to see."

However, for those who are in debt, any economic recovery could take a long time to provide the sort of benefits that could translate into an easing of their situation, such as the availability of better-paid jobs.

For those who are in difficulty now, seeking a debt management plan may help, as it can spread payments out and make it easier to cope, ensuring ends are met while personal finances are still under strain and making matters easier to handle as the economy recovers.

By Joe White
 

Debt problem may remain despite positive PMI is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.