debt news

The latest statistics from the Bank of England have shown that homeowners paid off £4million worth of debt that is secured against their homes during the last quarter of 2009.

Millions of borrowers used their earnings to repay their home loans rather than on outgoing expenses in order to reduce their debts in the wake of reported rising unemployment and continued debt problems in the economy.

New research from a debt charity has shown a record number of people contacted them in 2009 but that a third of those who called were in so much debt that they couldn’t be helped by them.

The charity said that only one quarter of those who sought help from them has the means available to commit to a debt repayment plan or take out an Individual Voluntary Arrangement (IVA) which also require regular repayments on their debts.

Soaring energy bills have left an estimated 5.5 million UK households in debt to their gas and electricity suppliers.

Research revealed that a massive £728 million is owed to energy suppliers and is part of a backlog that saw gas and electricity prices rise by 42% in 2008.

The effects of the prices hikes are still being felt two years later with the average customer owing £132 in debt, according to research from price comparison site uSwitch.com. Bill prices did drop in 2009 but only by 4% on average.

When rappers are usually talking about money, the focus is usually on big cars and “bling” but British rapper Tinchy Stryder has been bucking the trend, teaching schoolchildren in London about the importance of looking after your finances.

As part of a government scheme to introduce concepts of debt and financial management to children at a younger age, the 22-year-old rapper spoke to youngsters in South London about the value of saving and investing.

More than 16m workers – more than half of the UK’s workforce – will not get a pay increase of any kind this year, a survey has claimed.

Research by YouGov has found that 16m will not be expecting an increase in the next 12 months whilst another 9m expect to receive an increase that is lower than the rate of inflation.

It is claimed that civil servants, including nurses, teachers and care workers will feel the pinch most of all, as all of the key political parties warn of cutbacks in public spending should they win the forthcoming election.