When the value of a house used to secure a mortgage is worth less than the loan originally taken out to pay for the house this is considered negative equity and can quite simply be interpreted as trouble for homeowners.  

A recent report from the Bank of England suggests nearly one in ten mortgage owners are now suffering from the effects of negative equity and are in no position to sell their houses.  As house prices are predicted to fall another 15% in the coming months and homeowners find it increasingly difficult to meet mortgage repayments, tremors can be felt through all sectors of the financial market.  

Many who will be looking to renew mortgage deals will be further struck by banks who are tightening lending on account of an increase in bad credit ratings amongst people unable to sell their homes or afford their mortgage repayments.  In consequence, house prices will drop further and the wider financial calamity will no doubt escalate.

This is vicious circle and the question remains how does the government propose to break the cycle? 

It seems a scheme maybe in hand that allows homeowners to sell their home to an investment bank from whom they can then rent back the property at a lower rate.  When the financial market stabilizes homeowners should be able to buy back their homes.  So is this an adequate debt solution?

Well, if this saves families from loosing their homes then this would be a welcome form of debt management and hopefully breathe life back into the housing market as whole, which in turn will prevent a deeper recession than the one we are now entering.
 

For further debt solutions and debt help speak to an independent MRA advisor.

The Myvesta Financial Help Store has captured the current mood of people around the globe in a range of apparel and merchandise on which the words “Debt Sucks” are printed across the front.
The message, which is splashed across products such as T-Shirts, Wall Clocks, Teddy Bears, Mugs, Aprons and even a Babies Bib, is a blatant and somewhat ironic reminder of the impact of the current debt crisis felt in households across the nation and by all members of society.  So is this a positive message?  On the one hand waking up in the morning to the words debt sucks glaring from the clock face could be considered a horrid reminder of the current state of affairs.  Yet, on the other, the need for positive debt management and seeking out debt help is an unavoidable consequence of drinking that first cup of coffee in the morning or looking up at the clock before bedtime.  Here debt is made tangible and its significance literally in our hands.

For help on all aspect of debt advice and debt solutions, MRA counsellors are there to help.  
 

Figures released by the Citizens Advice Bureaux yesterday show the number of enquiries recieved in their offices nationally have shown a 35% increase in the nubers of debt problems involving mortgage and secured loan arrears.  This totals a whopping 77,324 new enquiries since last October.  They have found that the average arrears creditors found themselves in before mortgage lenders began possession action was 4 months. 

Its not just mortgage arrears that are on the increase either.  Over the past year the figures show a 10% increase in fuel debt - people falling behind on their utility payments. 

The figures show an 11% increase in total debt queries compared with the same period last year, bringing the total to 1.7 million enquiries in 2007/08.  People concerned about their debts now make up 35% of all enquiries they handle.

For independent debt advice, call MRA Debt Help on 0800 612 9223

Following a controversial appeal, the High Court has recently found in favour of billionnaire businessman Fouad al-Zayet, clearing him of £2 million of gambling debts.

Mr al-Zayet was originally instructed by the courts to repay the money to Aspinalls Club in London, but the circumstances surrounding the debt have lead to the demand being revoked.

The extravagant Mr al-Zayet, known among the gambling circles as someone who would frequently bet over £1million a night is said to have gambled a staggering £91.5 million at Aspinalls in 12 years, culminating in one evening.  Due to a discrepancy with the croupier, he cancelled a cheque for £2 million covering his losses for the evening.  The Casino agreed to give Mr al-Zayet a 12 month time period to pay off the cheque, by Mr al-Zayets request.

In the eyes of the high court, this 12 month grace  amounted to an illegal gambling credit in breach of the 1968 Gaming Act - effectively wiping Mr al-Zayets slate clean.

If you are suffering from gambling debts, either by credit card over the internet, or in casino's, give MRA Debt Help a call on 0800 612 9223 to speak to one of our trained debt advisers.

Figures released by reallyworriedaboutdebt.co.uk this year showed London, Salisbury and the Isle of Man, among others as the most indebted areas of the country.  However, when you compare this to the areas where children are being brought up in poverty, Birmingham tops the table with Ladywood and Sparkbrook both in the top 3 constituencies in the uk. 

81% of families with children in the Ladywood constituency of the city are struggling on low incomes, with Sparkbrook joint second at 79%. 

The number of recent job losses in the area has been a major factor in this new study.  Building sites shutting down, factories and warehouses disappearing, and local employers not taking on any more work unti the economy picks up have all lead to the area having an unenviable 45% Jobless level, with another 36% recieving working tax credits.

With numbers of families taking interest free crisis loans from The Job Centre, the amount of debt in the area can only increase.

For free debt advice or to see how debt management can help you, call 0800 612 9223 to speak to one of our debt counsellors

Every year, britons spend 180 million hours researching financial purchases on sites such as moneysupermarket.com , but what do they actually do with that information?

Recent research by Norwich Union have shown that despite all the research, once they have actualy taken the products, many consumers do not know how much they are paying out on a monthly basis.

53p in every pound of consumers money goes on mortgages, insurances and other financial necessities, yet the numbers of people that cannot account for this money is astounding.  67% of people do not know what the monthly repayment on their mortgage is, with 72% not even being able to state the type of mortgage they have.

Nearly one in ten people covered by the survey did not know how much their council tax and utitlity bills were, and 59% did not know the details of their contents insurance. 

Creating a budget and having an understanding of your income and expenditure is vital to making sure that you can afford your current lifestyle.  If you are in any doubt about your financial situation, or you need help in budgeting then call MRADebtHelp on 0800 612 9223 for free debt advice.

While landlords struggle to find funding to create more affordable homes, and more lenders pull out of the market, there are some people who are still smiling.  As a chief executive of one of the 10 biggest housing associations in England, you could be earning in excess of £200,000, with an inflation beating wage rise of over 15%!

Inside Housing Magazine, who published the recent survey, have reported that the 10 highest earners recieved an average 15.8% pay increase this year.  This is somewhat dwarfed by the 32% increase for Anchor Trust Chief Executive John Belcher, whose salary, bonus and car allowance combined give him a total of £327,000 for the year.

This news comes as The National Housing Federation call for ministers to pour more money in to the market - on top of the £400m already fastracked - to help associations build 5500 new homes by mid 2010. 

If, on the other hand, you are one of the millions of people struggling with their finances, then give MRADebtHelp a call on 0800 612 9223 for free debt advice and counselling.