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HSBC aims to reunite thousands of customers with their forgotten savings and current account. They are writing to 12,000 customers who have not used their accounts for more than 15 years. They plan to trace an additional 5,000 of customers who no longer live at the address which is on record.

This scheme runs alongside a government initiative to reunite people with their lost or forgotten money. Under new regulations, accounts which have not been used for 15 years will be classified as a forgotten account and the money will be transferred into a government fund. However, if the customer gets in touch about their forgotten account then they will still be able to rightfully claim their money. As the credit crunch has hit our disposable income, this scheme could not have come at a better time for customers who may be struggling with their finances and may be seeking debt advice.

Carlos Wanderley, General Manager, HSBC Customer Propositions, said: “It is quite possible that some owners of these funds are well aware it is there as some people do leave their money untouched for long periods. Obviously we’re happy to hold it for them for as long as they like, but we would like to hear from them so that we can ensure that it is working effectively for them.”

More and more children seem to be realising the reality of facing heavy debt levels in later life, as research carried out by The Children’s Mutual report that a third of children between 11 to 18 are saving up to afford higher education.

Although parents may think their child would needlessly blow their money from a Trust Fund, over half of  those surveyed would spend it on education or putting money towards their first home.

David White, Chief Executive of The Children’s Mutual, said: “You’ve got to give credit to our teenagers!  Their parents were brought up in an environment that was all about borrowing and spending but this generation of young people has realised that saving now and spending later is a better approach.”

There is no doubt that the credit crunch has hit the whole of the UK, but it seems that rural arrears are suffering the most, according to research by moneysupermarket.com.

Many homes in rural areas are heated with oil, and the trips to the local shops are often longer. This means that rural residents are being hit twice by the credit crunch, the increase in fuel and well as the increase in food prices. For petrol and diesel in the Lake district, you would be paying approximately 7p over the national average, and the nearest supermarket is approximately sixteen miles away.

Clare Francis of moneysupermarket.com said: “Rural Britain is paying more than urban Britain for its food, petrol and diesel, is travelling further and earning less. It’s becoming a view at a cost.”

Bad financial decisions can be a fact of life for many people, whether it was getting into store card debt or frivolous credit card spending. Fool.co.uk have comprised a list of what people said was their biggest financial blunders!

Top of the list is investing money poorly, as one in 8 claim that poor investing decisions in stocks or schemes, is their biggest cause of financial woes.

The second most popular financial blunder is debt problems and borrowing more than you could ever realistically afford to pay off. One in 17 people see credit card debt as their biggest financial worry.

Struggling with Credit Card Debt?

If you are struggling with your credit card debt or store card debt, then it is important that you seek specialist help sooner rather than later. A Debt Management Plan could be a way for you to consolidate your debt into one lower payment. A debt management company, like One Advice, will negotiate with your creditors and some are willing to freeze additional interest or charges on your debt.

To see if you are suitable for a debt management plan or any other one of our debt solutions, take the 1 Minute Debt Test or call our debt advice team free on 0800 048 1752.

The credit crunch has produced a new big divide in the way that people shop. It seems that many of us are either choosing the cheapest or higher-end options, meaning that there has been a decline in the number of mid-market products which are being sold.

In a bid to keep a track on our debt management as food prices rise, it is no surprise value ranges have seen a rise in sales. It seems that the higher valued products are replacing peoples need to eat out, as they try to replicate this restaurant experience at home.

Alex Beckett, inflation expert for Grocer magazine commented: “Own label products are doing well – especially in the frozen category.Premium ready meals, like M&S and Sainsbury’s ‘taste the difference’,are doing well as are value products. But middle of the road, standard ranges are dipping. Shoppers seem to want either a treat or cheap deal.”

When debt levels get too much to handle, it can be hard to ignore these thoughts. If the worry of bankruptcy or overwhelming debt are always on your mind, then it could be time for you to seek some form of debts advice.

Some people wait too long to seek debts advice as they feel afraid to askfor debt help, or they feel as though they should be able to handle their own financial situation. But there is no need to worry, the current economic climate has put a big squeeze on all our finances, so it is almost inevitable that the number of people who need to seek debts advice will increase.

Searching through the internet will give you an array of debts advice and information potential debt solutions available through debt management companies, like One Advice. There are a number of debt solutions available and it can sometimes be confusing to work out which one may be best for you, contact a debts advisor to see if they can help. (more…)

The current economic climate can seem very confusing, so it is no surprise that people are turning to the Internet to get up to date news and information about the credit crunch and changes to the UK economy. According to Hitwise Intelligence, last week’s fastest moving search terms were:

1. ryder cup
2. hbos
3. northern rock
4. hbos share price
5. moto gp
6. share prices
7. aig
8. ftse
9. ftse 100
10. bloomberg

80% of the fastest moving keywords are financial related terms, most of which point to the top news stories of last week. Sites which have seen an increase in UK visits are Stocks and Shares sites  (up 32%), Business Information websites (23%) and the banks themselves (9%).

Those who are thinking about starting a family should take the time to financially prepare, so that new parents do not have to suffer with additional maternity debt. Many new parents may have to seek debt advice, as the current economic situation puts strain on their finances.

According to Natasha Freedman, consultant for Punter Southall Financial Management, UK maternity rights are amongst the worse in Europe, and new parents should consider this fact and begin saving to avoid getting into debt problems. Statutory maternity is currently 90% of the average weekly wage for the first six weeks of leave, followed by 33 weeks at a maximum of £117.18. A further 13 weeks leave can be taken but this is unpaid.

Freedman comments: “The often significant drop in income while on maternity leave can be crippling and the inability to maintain your standard of living is perhaps one of the main reasons why women return to work sooner [than they may want to]. It is a very real problem for households that require two incomes to stay afloat, especially in today’s economic climate.”

Increases in household bills, such as gas and electricity, has sent inflation up to 4.7% last month. This has seen an increase from 4.4% in August, which shows a higher-than-expected jump in inflation rates.

Bank of England Governor, Mervyn King has warned that inflation could reach 5% before it starts to dwindle. The reasons are being blamed on the rises in food and energy prices, which has pushed inflation rates much higher than the 2% target.

Not sure what inflation is and how what influence it has on your finances? Read the One Advice Guide to Inflation for a concise overview.

Young people are being urged to speak to their parents regarding debt advice and how to survive the credit crunch. Rosanna Spero, a psychologist and journalist, said that parents and grandparents have become accustomed to economic changes, and are in the best position to offer debt advice about the credit crunch and how to handle their finances.

Spero Comments: “They’ve lived through the ’80’s, they’ve lived through the ’70’s, they’ve seen all this cycle time and time again, so they’ve had this experience… Perhaps the younger generation would do well to go get a few tips from their parents and grandparents about how to survive it.”

This links to a research by Lloyds TSB which revealed that over 50s are least concerend about the credit crunch and changes to the economy, as they have lived through recessions in the 1970s and 1980s.

Major retailers have promised to cut petrol prices across the UK. In response to Morrisons announcing that it would cut petrol by 3p per litre, competitors including Shell, Asda, BP and Esso, plan to do the same.

The petrol price drop means that the national average will now stands at 107.7p for unleaded and 119.2p for diesel. This news will come as welcome relief for many as, although the price of oil has been declining, this price drop has yet to be passed on to the average consumer.

Asda’s trading director Darren Blackhurst said “We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps.”

Women are more likely to sit back and let their man take charge of finance and organising debt when moving home. Research from Halifax Estate Agents shows that 48% of men in a relationship will typically take financial control, compared to 34% of women.

But most couples are equal when it comes to decisions to move home, as 65% of UK co-habiting adults will make a joint decision when deciding to sell or move, whether buying a new home together or renting a property. Yet only 36% of couples are equal when sharing the responsibility of their finances. Joint decisions tend to decrease with age, 72% of 16–24 year olds prefer to make a joint decisions, compared with just 58% of over 65s.

Gordon Edwards, managing director, Halifax Estate Agents, said: “Buying a house is the biggest purchase most of us are likely to make. If you are deciding to sell your home, purchase a new property or sorting the finances for a move, it’s important to involve your partner in the decision-making process.”

Shoppers are turning to online shopping in order keep better control over their debt and take a grip of their finances during the credit crunch. uSwitch have revealed new data which shows that online shopping has boomed whilst the high-street has suffered.

The comparison and switching website revealed that the UK high street has suffered the sharpest decline since records began in 1986 as sales dropped by 3.9% in June. Yet online shopping sales has rose to a record £26.5 billion in the first half of 2008, and is expected to keep on growing.