A study by Endsleigh Insurance has shown that students are finally becoming aware of the amount of debt that the majority of them will leave university with.  The study also shows that many are actually worried about their future ability to repay their student debt.

Over 30% of those polled believed that they would be leaving university with over £20,000 of student debt.  A further 25% thought that they would owe at least £15,000.  The optimists were in the minority, with only 7.5% expecting to graduate debt free.

The report also asked the students how long they expected to be in debt for.  25% thought it would take them 20 years to repay their debt, and 40% were expecting to spend a decade with their student loans. 

For advice and help on any form of debt, be it student loans, unsecured debt or morgtgage arrears, call MRA Debt Help on 01424 777156

The Reality Gap Report - a survey by Bright Grey, has found that up to 25% of the population are struggling to manage their monthly outgoings, equating to 12 million britons. 

The report found that an average of £1378 is spent per month on bills and other essentials by each household in the UK.  This is 68% of the average household income.

Bright Grey speculate that if this figure was to rise by just £50 per month, the amount of UK households struglling with their outgoings would rise to 39%

For those that are struggling, there is a light at the end of the tunnel.  Speaking to a qualified debt counsellor can make a difference.  MRA Debt Helps counsellors are able to offer budgeting advice, using a common financial statement to find areas where you may be able to make savings (or even afford to spend more!). 

Our counsellors can also arrange a variety of debt solutions, from debt management plans to IVA's and help through Bankruptcy

Over the past few years, MRA Debt Help have been voicing our concern over the amount of mental health and  stress issues caused by debt problems in the UK.  Now we are not alone, as a report from London Health released this week highlights the issue.

The report highlights the amount of time spent by GP's treating patients for stress and anxiety related problems.  The report highlights a clear association between debt problems and health problems.  A large amount of the information was provided by the CCCS.

One statistic from the report shows 40% of debt problems were reported to have led to physical or stress related illnesses.  GP's are not always best placed to answer debt questions or help with debt problems, and this is where companies such as MRA Debt Help can make a difference. 

The CCCS are inundated with phone calls, and have reported regularly that they cannot cope with demand.  MRA Debt Help are well placed to act with GP's to help people suffering with debt problems that are affecting their health.

Banking giants Halifax and RBS are trying to outdo each other regarding their overdraft and unpaid cheque fees.  The fees, which have been widely condemned as unfair are currently the subject of a court battle between the banks and the Office of Fair Trading. 

Earlier this month, RBS reduced it's fees for unpaid cheques from £38 down to £5.  The bank also reduced it's unauthorised overdraft charges to £15.

Halifax has responded with a new charging system.  It has abolished its current overdraft fees, and replaced them with a daily figure.  Clients will now pay £1 per day for arranged overdrafts up to £2500.  Larger overdrafts will be charged at £2 per day.  Unarranged overdrafts will be charged at £5 per day. 

These will replace the existing charging structure, which can see clients charged £28 per month for an unarranged overdraft, plus £35 for unpaid cheques or direct debits. 

Debt management clients could become among the growing number of homeowners that are being offered 'Golden Goodbyes' to switch their mortgage. 

Rooftop Mortgages, the now defunct lender has started offering clients large discounts to enable them to move their mortgage to another lender.  The discounts - up to 15% - would help the clients increase their equity stake.

Sub Prime mortgages are those that are taken out by clients with a por credit rating. 

Lenders are increasingly taking this option in order to reduce their 'bad debt' mortgage books.  Edeus was the first specialist lender to do this in 2008.  Rooftop mortgages is an ex-subsidiary of Bear Stearns, and ceased lending in 2008. 

For all types of debt help, including advice on mortgage arrears, call MRA Debt Help on 01424 777156

A government consultation is going to be launched into the debt management industry it has been revealed today.  The consultation aims to weed out the unscrupolous 'debt management' companies who make unattainable claims and hoodwink their clients.

100 firms offering to write off credit card debts for debt management clients, claiming that their agreements were unenforcable were shut down last month.  This can only help to prove that the government is taking this important industry seriously, and bodes well for regulating the industry.

The consultation is set to decide whether the industry needs regulation, a new code of practice, or whether it should stay as it is.

At MRA Debt Help, we would welcome regulation.  Regulating the debt management industry would make it fairer, and increase the levels of service for clients.

A recent survey by Direct Line has shown that 20% of UK landlords have concerns about their cashflow.  The survey also revealed that 1 in 6 had altered the payment terms for their tenants. 

With 10% of landlords cancelling their insurance in order to cut costs, it could be that many could benefit from speaking to one of MRA Debt Helps debt counsellors.  A proper budgeting plan, in conjunction with a common financial statement, could help Landlords to prioritise their expenditure, rather than cancelling potentially important policies. 

Landlords facing this type of problem is quite worrying, as the knock on effect can trigger financial difficulties for tenants, leading to more debt problems.

If you are struggling to cope with your income and expenditure, or need help to take control of your debts, contact MRA Debt Help on 01424 777156 to speak to one of our debt counsellors

The number of unemployed britons has reached its highest levels for nearly 15 years, and with it taken the number of jobless under 25's to a new high.  Nearly 20% of people aged 16 to 24 are now unemployed.  The last 3 months have seen 60,000 young people become unemployed, taking the figure to 947,000 nationally. 

Unions have shown alarm at the rising rate of unemployment, with the general secretary of the GMB, Paul Kenny, saying "More workers, particularly the young, are paying a devastating price for the bankers recession."

Many have shown concern about the potential loss of a generation of employees.  Katja Hall, Director of employment policy  at the CBI was keen to remind employers of the importance of apprenticeship schemes.  "Apprenticeships are an excellent path to employment but their availability would be constrained if a minimum wage was set too high.  The young must not be priced out of apprenticeships in a difficult jobs market."

With an overindebted middle age population recovering from debt problems, and an elderly population facing struggles with reduced pension payments, we can only hope that the younger generation can bridge the unemployment gap

Considering a move but put off by stamp duty and solicitors fees?  Dragons Den star and entrepreneur James Caan is behind a new scheme which will offer interest free loans to cover the 2 costs.  The scheme will be offered to anyone who buys a property advertised on Look4aproperty.com - which is part owned by Caan.

In an effort to kick-start the housing market, the fund will offer loans up to £50,000, although look4aproperty expect the typical loan to be £10,000.

The loans are payable over a 2 or 3 year period, and if borrowers fall into difficulty then they would face the same collection procedures as with other forms of unsecured loan.

When we go through our debt management clients common financial statements, we quite often find that a large proportion of peoples income goes on motoring, from fuel to tax, servicing etc. To help with this we have come up with a few money saving tips that are all based around making your motoring costs smaller.

Insurance.  There are many ways to reduce your car insurance premiums, and we have chosen a few for this debt management blog. 

The first is to ensure that you shop around!  Don't just use one price comparison site such as confused.com.  There are several insurers such as direct line that pride themselves as not offering their insurance on any comparison sites - so you could be missing out! 

Also, make sure that all your details are correct.  If you only do 4000 miles a year, then choosing a policy for 10,000 miles a year can be an unnecessary cost. 

Make sure to check the additional benefits of the policy, such as courtesy cars and breakdown cover - do you really need them, or do you get any of these free with your current account or similar?

Fuel.  Driving more efficiently can increase the economy of your car.  Remove any trailers or unnecessary weight when you are not using them.  Things such as roof racks can increase drag. 

Smooth driving is more fuel efficient - leaving a clear distance between you and the car in front can reduce the amount of braking and acceleration needed, and save you money. 

Check your tyre pressures!  Slightly flat tyres can also reduce fuel economy.  Turn off your air conditioning (unless it's baking hot - but this is the UK!). 

Tax.  If you are in the market for a new car, then check its CO2 output, as greener cars are being rewarded with cheaper road tax!  Ensure you pay your road tax annually, as buying 6 months at a time will be more expensive.

Other driving options.  If you are an infrequent car user, would it be cheaper to hire a car, join a car club, or use public transport?

The Citizens Advice Bureaux have been receiving a record number of enquiries related to debt problems and benefits.  In April, May and June, the CAB averaged 9300 new debt problems, and 8000 new benefit cases every day.

The CAB is 70 years old this week, and has never been busier.  The numbers of cases involving mortgage arrears has risen by 44%, and utility debts has risen by 53%.

A 75% rise in the number of calls regarding redundancy and unemployment has also weighed heavily on the charities resources.  This can only exacerbate the current debt problems being faced by many, potentially leading to more debt management plans, IVA's and bankruptcies.

If you are experiencing difficulties, don't bury your head in the sand, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors

One common gripe we hear from consumers who have fallen into debt problems is the cost of unauthorised overdraft charges.  As part of the Which? test case at the House of Lords, they have worked out the worst offenders out of all the UK banking institutions.

They calculated the charges that would be imposed for an unauthorised overdraft of £30 for 3 days.  This included charges for a £10 cheque, a £10 direct debit and a £10 standing order.  No interest was taken into account.  Which? also calculated the cost of a £500 authorised overdraft for 2 weeks a month. 

 As you can see, there is a huge difference between the way that the big banking institutions earn money from struggling consumers, with NatWest charging the most for unauthorised overdrafts and Northern Rock charging a similar amount for its authorised overdrafts.  It just shows that you need to always check the small print and shop around for your current accounts to find the one that is most suited to your spending habits.

For help and advice on all forms of debt and budgetting, call MRA Debt Help on 01424 777156

The Bank of England released positive debt figures this week, which will make a welcome change for regular readers of our debt management blog.

For the first time since the Bank of England started collecting data on consumer debt in 1993, the total amount of consumer debt has dropped.  The drop - £635 million - takes the UK consumer debt down to £1.46 trillion.  The news shows that UK households are starting to take control of their debt, and stop themselves spiralling into debt problems.

Debt solutions such as debt management will have helped the figures, as clients seek help from companies such as MRA Debt Help to enable them to become debt free.

Mortgages made up the biggest fall, with consumers paying back £418 million more than they borrowed during July.

If you are struggling to pay off your debts, call MRA Debt Help on 01424 777156, where one of our debt counsellors can help you.

A recent survey by price comparison site uSwitch.com has shown that energy bills are far more complicated than is necessary. The survey involved users of the site being given a dummy electricity and gas bill.  The meter readings had been entered into the bill, and the users had to calculate the amounts owed on their bill.

Of the 2752 customers surveyed, less than 14% (379) could correctly work out their utility bill.  With 745 of the participants not knowing where to start, it shows how consumers could fall foul of extortionate utility bills with no knowledge of how to deal with them - landing the with more debt problems.

Ofgem, the energy regulator is looking into making energy bills simpler and more straightforward.  Only 39% of people in the UK think that their energy bills are written in plain english.