Britain’s poorest need more help to get off the welfare system. That’s the view of the new work and pensions secretary, Iain Duncan Smith who has outlined plans for reform. He says many people on benefits would find themselves worse off if they went back to work. If you are struggling to keep up with debt management with your benefits there are some good alternatives to bankruptcy. A Debt Relief Order (DRO) is available to vulnerable borrowers who owe less than £15000 and Individual Voluntary Arrangements are for people who owe more than that on things like credit cards or store cards. Mr Duncan Smith wants to create a system that sees state support conditional on a willingness to work. Video Rating: 0 / 5
www.moneyextra.com People in debt are being warned about fake personal loan companies who charge upfront fees before disappearing with the cash Citizens Advice are urging people to get professional advice and not fall for scams… Video Rating: 0 / 5
www.moneyextra.com This year will remain to be tough for us all financially as forecasts are grim on the countrys economy High inflation is likely to mean that interest rates will stay low. Do you need financial help?
Nearly one third of all the personal insolvencies declared during the month of March are the result of financial difficulties brought about by overspending at Christmas. That’s according to new figures from R3, which suggest that many people already in personal debt spent heavily at Christmas, and are now finding themselves not meeting minimum payments. But, R3 president Peter Sargent warns that it is only the stigma of insolvency that prevents the numbers being even higher. He claims that many people in financial difficulties put off taking action for around six months often making matters worse in the process. A record 150000 are expected to need official insolvency help this year, this may include an Individual Voluntary Arrangement (IVA), Bankruptcy or a Debt Relief Order for non-homeowners with very limited assets. This an estimated 12% increase on 2009. EuroDebt director Vance Parsons says: “With the number of IVAs rising by 29 per cent in quarter four of 2009 compared to the same period in 2008, we would expect to see a continued rise through 2010. “Debt Relief Orders (DROs) were only introduced in April 2009, so this will be the first year we will have had a chance to see the full impact. We expect to see more and more indebted consumers seeking debt relief through Debt Management Plans (DMPs), IVAs, Bankruptcy and DROs.” Video Rating: 0 / 5
www.moneyextra.com People with financial worries are more likely to suffer from psychological problems Millions of us struggle with debt,money problems there are fears that it will lead to an increase in the number of people becoming depressed
