Debt Correct News

Office of Fair Trading

Fri, 01 Jul 2011

Debt correct is very pleased and fully supports the Office of Fair Trading’s recent proposals for Debt Management Companies.

As a proud member of the Debt Resolution Forum (DRF) we are pleased by the proposals outlined in the Office of Fair Trading Debt Management Guidance publication on the 14th June 2011.

Debt Correct already operate within the vast majority of these proposals, and look forward to further discussions via the DRF to make these regulations that all Debt Management organisations, banks and other lenders operate.

We continue to provide a much needed service to many people in the UK who struggle in today's climate to maintain a reasonable standard of living and don't see their debts reduce or financial situation improve.

Credit Card Debt

Fri, 11 Mar 2011

More than 11.5 million people (34% of credit card holders) spent January relying on their credit cards to fund day-to-day living costs, according to research by the Post Office.

The Post Office Consumer Credit Report also found that 43% of credit card holders used their cards for grocery shopping – which generally make up a substantial part of regular outgoings. Both uses of credit cards are deemed to be a sign of financial distress by lenders.

One in ten of those using their card in January said they needed to use their card to see them through until pay day – the only time of year when many monthly salaries have to stretch up to six weeks (if employers have paid the December salaries early to make Christmas shopping easier). More than one in ten said they needed their card to cover overspend on Christmas purchases, while a third admitted to relying on their credit card to get through every month.

However Una Farrell, a spokeswoman for the debt advisory charity said: "People in this situation should seek help immediately because using credit cards for day-to-day living costs is one of the strongest signs of financial mismanagement."

Debt Rises in July

Wed, 01 Sep 2010

In July, British consumers took on more debt than they repaid, according to the Bank of England. 

Every month, the Bank publishes its `Lending to individuals` figures for the previous month.
The most recent figures - for July - were released yesterday. They show that people took on more debt than they repaid in that month, in terms of both secured debt and unsecured debt.
The increase in secured debt was actually quite small - just £86m. Over the last six months, secured debt has grown by an average of around £800m per month.
In July, British consumers took on more debt than they repaid, according to the Bank of England.

Every month, the Bank publishes its `Lending to individuals` figures for the previous month.

The most recent figures - for July - were released yesterday. They show that people took on more debt than they repaid in that month, in terms of both secured debt and unsecured debt.

The increase in secured debt was actually quite small - just £86m. Over the last six months, secured debt has grown by an average of around £800m per month.

As for unsecured debt, this grew by £173m, which was quite close to the six-month average of around £200m.

In total, we collectively owe £1.456t. £1.239t of that debt is secured against property, while the remaining £217bn is `consumer credit` - credit cards, unsecured loans, etc. 

As for unsecured debt, this grew by £173m, which was quite close to the six-month average of around £200m.

In total, we collectively owe £1.456t. £1.239t of that debt is secured against property, while the remaining £217bn is `consumer credit` - credit cards, unsecured loans, etc.