Savings

#Debtline #Debtdebate blog: One in five people admit to having no savings (Scottish Widows Savings Report). 


For those who are managing to save, the average amount they hold is £10,200. However, more than half of those surveyed said they were saving less than they did two years ago.


The study of 5,000 adults found that family pressures are continuing to have a big impact on people’s ability to save for the future. Two out of five adults said they had lent ‘a substantial amount’ of money to family members.
Meanwhile, one in four had lent money to their children to cover living expenses, put towards a house deposit or pay off debt.
Lending to family members was found to have a serious effect on parents’ and grandparents’ finances. One in four of them said they were saving less as a result, while one in five had to cut back on day-to-day living costs.
One in four of the 35–44 year olds surveyed had no savings whatsoever. Many of them said this was because they were in debt – the average amount owed being £5,935.
Do you have little or no savings;  pay out all your surplus income on debt and borrow to pay for day to day living expenses. Need help and advice contact Twinpier

Struggling to pay your council tax

#Debtline blog: Debt advisors have reported that over 45,561 people in council tax arrears sought help in 2013, up from 25,500 the previous year – an increase of 77%. On average, people falling behind on council tax were £102 short of what they needed to cover essential household bills every month. The figures come less than a year after council tax benefit was replaced with localised council tax support across England. It's estimated that 2.4 million low-income families are paying an average of £138 more in council tax for 2013/14 as a result of the change. Further rule change could make the situation worse, from April, anyone visited by a bailiff for not paying their council tax could be charged an extra £310.

Are you struggling to pay your council tax? Are you paying other debts first? Do you have bailiffs demanding payment? Need advice? contact Twinpier

Log Book Loans

#debtline blog: 

Recently there has been a lot of press about payday loans, but there are other type of consumer credit that can be just as damaging if not more so. These are debts that are secured on a bill of sale. This is a type of high cost lending otherwise known as log book loans were the consumer offers an item of theirs as security for the loan. That item is often a car. 

A logbook loans gives the lenders considerable power as the ownership of the property passes to the lender so can be repossessed without a court order. This leaves consumers with little protection against harsh debt collection practices and lenders with no incentive to properly check that consumers can afford the loan.

Therefore if you don't pay as agreed the lender can repossess your car, for many this would create a huge amount of stress  as it could mean not being able to get to work or the children to school. Are you trying to pay back a loan and falling in to arrears; need advice on debts contact Twinpier

Changes to Bailiff Law

#Debtline blog: On the 6th April 2014 Bailiff legislation is changing.

  • They will now be known as enforcement agents.
  • Enforcement agents will be required to give you 7 days notice before they attend your home and when they do attend they will have to leave a letter explaining the process.
  • Enforcement agents still cannot break in, neither can they push or wedge the door open with their foot
  • They can use force if the debt is Criminal or from the HMRC.
  • If a bailiff has been into your home and listed goods and you have signed the form (was known as walk in possession but now controlled goods agreement) then the bailiff can use force to enter if you do not pay as agreed .
  • Enforcement agents will no longer be able to gain entry through an open window.
  • They will no longer be allowed to enter a home if only children an vulnerable adults are inside.
  • Enforcement agents can still take goods but the list of exempt goods is now more realistic including washing machine, fridge, microwave, phone etc.
  • The item needed to care for a child, disabled or older person can no longer be removed 
  • There is added protection for items used for studying.
  • Cars can be clamped on a public road and towed after two hours but vehicles used by a disabled person to get around can no longer be taken .
  • They have a new power to lock goods in a cupboard or room to stop the goods from being removed before the debt is paid. This will include the clamping of a car on a drive or in a garage.
  • There is a new simpler fee structure which will make harder to be over charged; however as a result the initial charges will probably be higher

Do you have companies threatening the use of bailiffs or are they knocking on your door for a debt including council tax or parking tickets? Need advice contact Twinpier

Britons Pay out 9 million towards interest on debts each day.

#Debtline blog: ING have reported that Britons pay out £9 million on interest on debts each day that they could pay off with savings.

While it's great to have savings set aside for emergencies there needs to be a balance between savings and expensive debts.
It is recommended that you should have around three months earnings in reserve just in case our income stops. This amount increases the more responsibilities one has.
Do you have debts that you need help clearing or problems devloping savings, if so contact Twinpier


Support for Mortgage Interest

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#Debtline If you’re a homeowner getting certain income related benefits you might be able to get help towards interest payments on your mortgage or loans you’ve taken out for certain repairs and improvements to your home.
The idea is that those who have fallen on temporary hard times through unemployment can avoid losing their home, with assistance to make sure their mortgage interest is covered.
 
SMI is normally paid direct to your lender after a waiting period, which is 13 weeks after you’ve claimed benefit. 
It is paid at a standard rate of 3.63 per cent, whatever the rate on a borrower's mortgage.
 
You can’t get help towards the amount you borrowed - only the interest on up to £200,000 borrowed.
 
Are your struggling to pay debts, need help budgeting and working out your benefit entitlements then contact Twinpier

 

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