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We all understand the importance of making our debt repayments on time.

Any missed debt repayments could show that your financial budget is out of control and the addition of extra interest and charges on your debt. But, according to poll research published by Fairinvestment.co.uk, nearly a third of us would consider cutting back on payments to essential monthly bills.

When asked what monthly payments they would cut back on first, 20% would pay less towards their credit card debt as our budgets become even more stretched.

Sharon Bratley, from the company, said: “There is help out there for people who have reached the point where they are having to cutback on essential monthly payments. If this is the case, then it is vital to seek debt advice from a qualified debt adviser who can talk to you about the whole range of options available, including budgeting, debt consolidation and IVAs.”

If you are struggling with your debt repayments and feel as though you are going to be missing payments going forward, then you may be best to consider a financial solution. One Advice can offer a number of financial solutions in order to help make your debts more affordable. For example, a Debt Management Plan could reduce your payments to your monthly creditors where the payment will be based on what is affordable for you.

See what debt solution is right for you by taking the 1 Minute Debt Test.

The credit crunch may be splashed over the headlines but it seems as though not everyone has adjusted their spending habits in a bid to remain free from debt, according to research by the Norwich and Peterborough Building Society (N&P).

The N&P note that many people are avoiding debt by cutting down on holidays, meals out and retail spending, but few people have completely cut out these luxuries altogether:
Holidays Abroad: 13% are avoiding holiday debt by not going on holiday at all but 44% of people have no interest in changing their vacation plans.
Eating Out: 36% of people are enjoying meals out at the same rate as last year, whilst only 14% admit that they have put a stop to eating meals in restaurants.
Retail Therapy: Shopping for clothes and luxuries seems to be the area where most people are cutting down their spending in order to avoid having to seek advice on debt problems. Women seem to be cutting down the most as 51% are spending less in the shops, compared with just 40% of men. Around 10% of both men and women have cut out clothes spending altogether.

However, as prices rise there are areas where spending more money becomes inevitable. 75% of families said that they have been spending more on gas, electricity, vehicle fuel and supermarket shopping. This figure declines to, a still high, 59% for those without dependent children.

N&P group product manager Gary Lacey said: “It is interesting that a large proportion of those who took part in our survey don’t appear to be taking drastic measures with their finances just yet. However our figures do reveal that families are being affected more than most by rising costs.”

The number of applications for a debt consolidation loan is expected to increase during the first six months of the year, according to research by Sainsbury’s Finance. They say that the need for personal loans always seems to be higher during this part of the year, in particular January where more of us look to deal with credit card debt which has built over the Christmas period.

Many of these personal loan applications could be to consolidate credit card debt, a debt consolidation loan can make it easier to manage personal finances. It is often easier to manage just have one new loan payment which will cover all of their previous creditors.

About the debt consolidation loan applications increase, Steven Baillie, head of loans at Sainsbury’s, said: “Debt-consolidation is always a good idea if you have multiple sources of debt, maybe a store card and credit card or a historical loan.”

The Open University is now offering free debt management courses to help people who are struggling with the effects of the credit crunch.

Entitled ‘Personal Finance: Debt and borrowing in its wider context’, the debt management course is designed  to help people understand the concept of debt, as well as educating students about about how to become debt free. The debt management course introduction states:

Increasingly, debt has become a part of everyday life in the UK and, as a result, discussion about levels of personal debt made headline news throughout the mid 2000s. The amount of personal debt carried by UK citizens in 2005 topped the seemingly staggering figure of £1.1 trillion (Bank of England, 2005). Everyone who has a mortgage, a personal loan or owes money on a credit card contributes a part of this total sum. Debt is regularly featured in the news media, with stories about how much some people are borrowing, how some extraordinarily high rates of interest are being charged, or with questions about whether debt is becoming an intolerable burden for some households.

Professor Brenda Gourley, the Open University’s Vice-Chancellor, says: “This is a purpose built website of educational resources, all tailored to provide information to individuals who may be feeling the effects of the global economic climate.”

The credit crunch seems to be taking a firmer hold, with unemployment on the rise, the cost of living stretching our income and our savings plunging. But it needn’t be all doom and gloom, this is the perfect time to get your finances in order and beat the credit crunch.

1: Invest in Yourself – The credit crunch means that many of us are wondering about how secure our job is, so it could be a good time to invest in your career and your future. According to the Government’s Learning and Skills Council, two thirds of workers feel that educating themselves with a new skill will offer more job security.

Although this can be expensive, there are a number of subsidies and training bursaries through the sector skills councils. Many employers are also willing to develop the talent of their current employees and may pay for, or at least contribute to, extra training.

2: Have a Budget-Friendly Holiday – Many of us look forward to our week away in the sun, but with the pounds weakness against the Euro and the lack of disposable income, many of us will have no choice but to opt for a holiday in the UK this year.

According to research by Visit Britain, a fifth of those who holidayed abroad last year plan to save money by holidaying in the UK, but don’t let this put a downer on your summer plans. There can be so much to do and so much variety, although some is weather dependant. The Visit Britain website offers some budget-friendly tips about how to have a cheap holiday in the UK, including:

* Get a Great British Heritage Pass – This excellent value pass offers free entry to nearly 600 castles, palaces, gardens and other historical attractions, including Stonehenge, Roman Baths and Leeds Castle.
* Get on your bike and cycle! – Whether you’re in a city or the countryside, there are hundreds of miles of cycle paths and national trails that offer a healthy and free way to explore Britain.

3: Sort out your Finances – Perhaps one of the best ways to beat the credit crunch is to get your finances in check. Knowing how much debt you have and how you are going to repay it will help you look towards a debt free future.

If you find that paying your debts is a struggle and there simply is not enough money to cover your living costs, speak to One Advice. We have a range of debt solutions which could help your financial situation. No matter what your level of debt, chances are there is a debt solution which is designed to help you. Call today for further information on 0800 048 1752.

Singles are more exposed to the effects of the credit crunch as they worry about the additional costs of being single. Apparently 70% of all singles have not sought financial advice about their debt or how best to manage their income, meaning that many are starting to worry about what their financial future will bring.

According to the study by Zurich, 45% understand the dangers of having poor credit card debt management skills and 35% believe that maintaining their savings is also necessary to achieve financial freedom.

Zurich’s Tony Solomon commented: “The fact that more than a third of single adults worry about the added financial cost of being single, suggests that being single in this current economic climate may be more fretful than fabulous.”

The effects of the credit crunch are seeping into our everyday lives, but Brits are keeping a cool head as more people describe themselves as “getting by” with their finances.

According to the latest research by Mintel, the number of consumers who would describe their financial situation as comfortable or managing easily has slipped from 64% to 51% over the space of a couple of years.

The proportion of those who need help to manage debt as they are struggling with their financial commitments has doubled to 4%, as more Brits admit that they have missed financial payments recently.

Senior finance analyst at Mintel, Toby Clark, comments that: “The good news is that the vast majority of people can still afford to make ends meet. But there has clearly been a deterioration in people’s perception of their financial situation over the past two years.”

A number of bishops from the Church of England have aired their concern about the rising amount of personal debt, and partly hold the Government responsible for creating a “buy now, pay later” culture which, they believe, encourages many families to sink deeper and deeper into a debt lifestyle which is unaffordable.

The Bishop of Hulme, Right Reverend Stephen Lowe, stated: “The government isn’t telling people who are already deep in debt to stop overextending themselves, but instead is urging us to spend more… It is unfair and irresponsible of the government to put pressure on the public to spend in order to revive the economy.”

The Labour MP who represents the Church in Commons, Sir Stuart Bell, commented that these accusations were “nonsense.”

As the effects of the credit crunch continue, there has been an increase in the number of people who are asking for debt help. According to research by MoneyExpert, more than one in eight people of us has asked for debt help as our finances get further out of control.

The research shows that 30% of UK adults are concerned that they will not be able to repay their credit card debt, secured loan, store card debt or meet mortgage payments.

Sean Gardner, director of MoneyExpert.com, commented: “The banks are reporting growing levels of bad debts as customers fall behind on repayments.” However, not all of those who need debt help are actively seeking it, as more than half of those who are very concerned about their debt problems have yet to seek debt help.

Does the Credit Crunch Mean You Need Debt Help?

Dealing with debt can be a very stressful time; making multiple creditor payments to your unsecured debt as well as keeping on top of your mortgage payments may prove impossible if your income is already stretched.

One Advice could be able to help you reduce payments to your unsecured creditors in the form of a debt management plan. This plan will leave you with just one monthly lower payment to make. As the payment will be based on what you can afford, you should find it easier to meet your priority debts, such as mortgage payment. Please contact us today for further information by filling in the Quick Enquiry Form in the right hand column of this page.

Many of us work long days in stressful jobs, so it is only natural that you treat yourselves at weekend. But if you are getting a nasty shock every time you open your credit card statements, then you might be shocked as to why you are in debt?

There are many ways that we can get into debt without even realising, see if you are guilty of any of the following debt mistakes which could be one of the reasons why your credit card debt in on the increase:

1: You are a bargain hunter – Have you ever heard anyone say “You’ll get me bankrupt with the amount of money that you save me?”. This saying is true of many bargain hunters who cannot resist an item which is on sale.

Whether this be the High Street sales or buy-one-get-one-free offers at your local supermarket, a bargain is only a bargain if you use it and you are spending within your means. Try taking a list out with you when you go shopping; stick to the list and see how much you could save.

2: You live the celebrity lifestyle, without the pay check – Sadly most of our salaries do not support the celebrity lifestyle, but many of us still splash our cash in places where we shouldn’t, such as on a designer handbag or expensive nights out drinking champagne cocktails.

The danger here is that you will be building up credit card debt as you are constantly living beyond your means. Writing down where you spend your money could help you with your costs and let you look forward to a debt free lifestyle.

3: You don’t shop around for deals – Some people don’t like haggling for deals but it is actually very simple to do online. For example, if you see a brand new shiny laptop that you like, take a note of the price and look for the same item online as chances are there will be at least one online retailer which can offer it at a lower price.

You could also save more by going through a cashback site, where you earn a percentage of the item’s value as cash back, meaning that you are saving even more money without spending any extra.

4: You fritter away your money – It is so easy to get into debt without even realising how you got there. And frittering away your money on small items means that you could find yourself in debt without a clue why. For example, your morning latte, weekly glossy magazine, international phone calls and the new expensive lip gloss; it all adds up to debt.

5: You ignore your debts – Ignoring your debts is going to make your debt problems even worse. You will find that your debt levels never decrease due to the interest and charges which are being added on a monthly basis.

Getting your bills in order is the first step to tackling your debts. You might want to consider switching utilities so that you can save yourself money or switching payments to direct debit so you never have to worry about missing payments in the future.

If your debts are unaffordable then it is time to get debt help and advice. There are different debt solutions available, meaning that we should be able to help you no matter what your level of debt. For further information about how we can help you with your debt, call One Advice free on 0800 048 1752.

The credit crunch means that an increasing number of Britons feel more comfortable talking about debt and money issues, according to new research by Credit Expert.

Apparently over half us us are now willing to talk about money and debt issues compared to this time last year, in order to either get debt advice or share debt information with friends or family who are in a similar situation with their debts and financial issues.

Director of credit expert.co.uk Darryl Bowman commented: “It’s good t see people reacting positively and talking about their finances with those closest to them.”

UK homeowners need to do more to ‘recession-proof’ their home by cutting back on non-essentials and increasing their savings, according to new research by uSwitch.com. Apparently almost a quarter (22%) of all workers don’t expect to get a pay rise this year, meaning that the average household will be £533 a year (after tax) worse off.

It is important to ‘recession-proof’ your home so that the credit crunch does not bite as hard if your income  fails to increase or, even worse, you are one of the rising number of Brits who may face the prospect of losing their job this year.

Personal finance expert at uSwitch.com, Louise Bond, comments: “Households need to focus on recession-proofing themselves – cut out unnecessary expenditure, shop around to reduce household bills and get back into the saving habit.”

Apparently our main money lessons are taught by our parents, as they have the largest influence over our shopping habits. According to research by Skipton Building Society over 40% of Britons spend similar amounts of cash as their parents and splurge on the same type of luxuries.

Almost a quarter of those surveyed admitted that they got their debt management habits from their mother, meaning that there could almost be evidence of a ’spending gene’ or even a ‘debt gene’, depending on how successful your parent’s budgeting is.

Spokesperson Jason Clarke comments: “A key part of managing your finances in the current climate is about taking responsibility and keeping track of your outgoings.”