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New research from mental health charity Mind has suggested that concerns about debt are having a significant negative effect on people’s personal wellbeing.

Having launched its Mind Week on Saturday May 10th, the group has published the results of a study suggesting that 91 per cent of respondents felt that concerns about debt had worsened their mental health. A further 87 per cent noted that they had to rely on credit to cover the cost of basic purchases such as food and energy spending. As the credit crunch tightens its grip and the costs of living escalate, the charity asserts that 50 per cent have had to forego food and heating in an effort to reduce the constraints that today’s economic climate has put on people’s spending.

For those who hold concerns about the stability of their finances, debt consolidation could help alleviate fears by allowing monthly outgoings to be managed more effectively. By spreading the costs of payment over a longer time period, people may find that they have sufficient funds to cover the costs of everyday living expenses without turning to additional credit for assistance. Choosing such a loan may be of particular interest to the 83 per cent of people who said that they had been harassed by creditors during a period of illness.

The charity asserts that its In the Red: Debt and Mental Health study is the first to specifically examine the effect that financial concerns can have on mental wellbeing. In conducting the survey, Mind interviewed 1,800 respondents throughout the UK, 924 of whom said that their level of debt was felt to be problematic. The report also finds that those with pre-existing mental health problems are almost three times as likely to be in debt, often due to an inability to work arising either from social stigma or ill health.

Other statistics released by the organisation found that of those with problem debt, 71 per cent ran out of money every week or most weeks, while 92 per cent of people said that they had been unable to socialise due to constraints on their spending. Over 50 per cent of the country was also reported to be living on a weekly household income of less than 200 pounds – a figure which the government has defined as the poverty line.

Mind’s chief executive Paul Farmer said: “UK personal debt stands at a staggering 1.4 trillion pounds but the real cost here is that on our mental health. Money worries aren’t just keeping people awake at night; they are causing high levels of stress, depression and in some cases self harm and suicidal thoughts. At a time when people across the country are anxious about their finances, debt-depression is a real and growing concern. People living with mental health problems are particularly vulnerable to being trapped in a cycle of debt and poverty. With many unable to work due to ill health, Mind has found that people are becoming dependent on credit to pay for everyday essentials.”

For those looking to alleviate the pressures that debt is putting on their lifestyles, a consolidation loan may provide both peace-of-mind and greater financial stability. A recent study by Scottish Widows has found that a number of older people are looking for assistance with their finances, with many parents turning to their children for loans to help cover living costs.

Abbi Rouse writes for All About Loans where visitors can apply online for loans for tenants. We also specialise in loans for homeowner, and self certification loans. Visit Today: http://news.allaboutloans.co.uk

Despite Britain’s six largest energy suppliers increasing the cost of their tariffs only a few months ago, consumers could be set to find themselves coming under further financial pressures, it has been suggested.

Pointing towards Centrica’s recently-released interim management statement, uSwitch claimed that two further rounds of price increases could be set to take place over the coming months. In its report Centrica pointed out wholesale gas and power costs have been rising due to a shortfall in imports from continental Europe and rising demand from countries in Asia for liquified natural gas. Record oil prices in Britain were also shown to have played a dominate role in the future of energy costs. As such, it asserted that month-ahead prices for power and gas currently stand at 100 and 92 per cent above respectively figures recorded during the same period of time in 2007.

Following on from increasing utility bill costs, it may be possible that Britons find themselves coming under more pressure when managing other constraints on their finances in areas such as credit and store cards, personal loans and mortgage repayments.

Despite the average energy bill already increasing by 15 per cent – or 136 pounds – so far this year, the price comparison site stated that a further rise of ten per cent (105 pounds) could be introduced by the end of the summer. Meanwhile, a price hike of 15 per cent was reported to be likely to take place in the early stages of next year.

Tim Wolfenden, head of home services for uSwitch, said: “If Centrica – the parent of British Gas, Britain’s biggest supplier – is feeling such acute pressure over pricing then it’s safe to say that others are feeling it too. Suppliers have been holding firm, but the cracks are beginning to show. It’s pretty clear that something has to give and that household energy prices are going to be shooting up again this year.

“Suppliers usually give consumers breathing space by introducing a couple of smaller price increases rather than hitting households in one fell swoop. The pressure they are under shouldn’t be enough to change this pattern, but it could be enough to force their hand sooner.”

If such increases take place Mr Wolfenden stated that the typical energy bill could rise to stand at 1,327 pounds. Such a figure, he reported, will result in utility costs surging by 46 per cent over the course of this year. He went on to assert that in a period of energy bills becoming evermore expensive, those people struggling with their money management could be set to look towards a fixed-rate deal due to the security which they offer.

For those consumers who are concerned about how they will organise their finances with the prospect of rising energy bills, taking out a debt consolidation loan might be recommended. By selecting this type of loan, borrowers may find that they are able to merge numerous constraints on their spending into a single low-cost monthly repayment.

In a recent study, the Motley Fool reported that those consumers who move into a new home will find themselves transferred on to an energy provider’s deemed tariff – a deal which is an average of 25 per cent more expensive the most competitive offers available. It was also reported that the average three-bedroom household has an average gas and electricity bill of 1,400 pounds.

Mark Dawson writes for Loan-Arrangers .co.uk where visitors can compare loans online. With online application for everything from payday loans to consolidation loans. Visit today http://www.loan-arrangers.co.uk

The number of insolvencies applied for by British consumers is increasing, according to new figures.

Price comparison site uSwitch has released figures indicating that the number of individual insolvencies has risen 1.7 per cent since the last quarter of 2007. According to the company, just under 300 people declare themselves bankrupt each day, and 74 homes are also repossessed daily. With such numbers suggesting increasing financial difficulties for many homeowners, increasing numbers could find that they might benefit from consolidation loans.

Should current rates and conditions persist, as many as 104,000 people could become insolvent this year, according to uSwitch’s figures. Factors impacting on people’s ability to service their debts are identified as the increasing cost of living, estimated to have risen by nine per cent over the last year. Such costs are not being matched by salary rises which have been hiked by only 3.4 per cent in the same timeframe.

The company adds that consumer debt has reached 1.4 trillion pounds and increases by 1 million pounds every five minutes. With so much debt being accumulated and not enough uptake of debt consolidation and similar moves to address the issue, uSwitch asserts that rising insolvency figures are “inevitable”.

Ann Robinson, director of consumer policy at the price comparison and switching service, says: “It’s worrying that so many people are resorting to individual insolvencies, be it an IVA or bankruptcy, to resolve their personal debt problems. These measure should always be the last resort for anyone with financial problems as they have a very serious impact on people’s credit histories and their ability to borrow in the future. In the case of bankruptcy, it could also impact on employment prospects.”

Those who are aware of high debt levels owed to a number of lenders keen to avoid insolvency might find that a consolidation loan helps to alleviate the strain on their finances. Such loans can make debts easier to manage by combining multiple requests into a single monthly payment, helping consumers to regain their financial feet.

Ms Robinson asserted that the costs impacting upon Brits’ pockets were rising in many different areas of life, from home heating energy to mortgages and even fuel. “If people find themselves in financial difficulty the worst thing they can do is ignore the problem and hope it goes away,” she states. “It won’t. Banks have a duty to help people in financial hardship and free debt advice is readily available from organisations such as the Consumer Credit Counselling Service, National Debtline and Citizen’s Advice. I would strongly urge people to start taking action before they reach financial breaking point.”

Last summer, one industry expert observed that a worrying trend was developing whereby bankruptcy was losing its stigma. Duncan Philp, a consultant for Macbeth Currie, stated that many young entrepreneurs considered early bankruptcy to be a “badge on their collar” – a theme matched by their failure to control their personal finances, for instance by taking out a personal debt consolidation loan in good time to address a difficult financial situation.

Abbi Rouse writes for All About Loans. Visist us today to apply for secured UK loans, low cost personal loans, and loans for tenants. Visit today http://www.allaboutloans.co.uk

Credit cards makes purchasing easy and so we end up using it frequently. And this is one common reason why majority of people are in debts. It is not only because of the amount that they spending using credit cards but also because of high interest rate.

In fact, many people have such high balances that end up paying only a minimum amount every month. This is why they take years to pay down their credit balance.

High rates and spending patterns result into escalation of debt. But there are solutions, which will help you avoid falling in a trap.

The first thing you can do is targeting highest interest rate. Try to transfer that balance to another credit card where you have zero interest rate or low interest rate for a set period and you can then concentrate on other dues. If you cannot transfer then pay off as much as you can so that the balance reduces quickly.

Some card companies will also offer you 0% balance transfer and other purchase offers. Check these offers and see what are the advantages available for you. Also plan how to deal with the balance after the offer gets over because you will still have to pay.

If you can make at least a base payment on your credit card every month then high interest rates and late fee penalties can be avoided.

Another very important thing that you should remember while shopping is to keep into account what you are buying i.e., is that thing so important to you that you have to have it right away. This means self-restraint.

It is very important to have personal control if you want to save yourself from falling into a debt trap. Think before buying. If you find that the item is not that urgent then you can delay your purchase and save money at that moment.

There are fewer chances of you to be in arrears when you use the plastic money wisely i.e., you should use them only in urgent situations instead on using it now and then. All you need to do is think carefully.

Another way to avoid debts is to keep a minimum number of cards, say at least two of them should be fine. Do not clutter yourself with a number of them as this will give you more options and you will end up using all of them. With more cards you realize that your purchasing power is more and you will keep on purchasing things.

Keep the cards away and close those accounts, which you don’t absolutely need. This is another way of minimizing your options and avoiding a debt trap.

If you start following these rules you can actually turn your financial situation around. It is very important to use your plastic money in wise manner. As long as you make your payments on time and stick to the plan you have a much lesser chance of falling into the debt trap.

You just need to put in little effort to save yourself from falling into a debt trap. Take some time to look into your options available that can make a difference. You can of course make a lot of difference with discipline.

For debt help visit us at http://www.tfgi.com For debt consolidation visit http://www.rebuild.org/debt-consolidation.html and debt relief at http://www.rebuild.org

If you find yourself in financial crisis and have no clue where to get help from then don’t worry. A debt consolidation loan is what you should be looking for. Companies who specialize in consolidation of dues offer them.

What is a debt consolidation loan? It is the amount taken to pay off all other dues. You can also say that this program is basically a debt repayment program.

Here you add all the amounts pending to be paid and contact a Debt Consolidation Company to make payments on your behalf to the creditors. They act as a middleman between you and the lenders. The company will negotiate on your behalf with them and will arrive at a monthly amount that they will receive on your behalf, which is agreed by both the parties.

The amount decided would of course be lesser than what you would have had to pay if you were paying directly and at a much lesser interest rate.

A monthly cheque is given to the company and they will then pay the creditors from this amount. In this way you have less trouble. You don’t have to deal with the creditors directly nor will the creditors contact you. If they have any issues they will contact the company for it.

This loan will run for a number of years. So this means that you will take some time to attain financial freedom but the monthly amount that you pay will be very less and you will have fewer burdens. Also, the chances of having a negative effect on your credit rating are less.

A secured loan is taken against the security provided. These securities can be your home, gold, bonds, car etc. Mortgage is very common example of this. The lender has less monetary risk as he has the possession of the assets and so offers to lend at a much lower interest rate.

There are certain benefits that the borrower tends to enjoy if he is borrowing through secured option. While there are less benefits when you opt for unsecured one.

The borrower gets to borrow at a much low interest rate. It is also much easy to obtain a secured one because of assets as they can be transferred quickly to the lender. It also reduces outbound payments. The concept of bringing all the dues together and making them one is easy to handle and understand. The borrower pays only one monthly installment. It decreases the monthly bills and also helps you to get drawn-out repayment terms.

However, you should remember that the loan money would depend on the collateral placed and the repayment term will be somewhere between 15 to 20 years which will vary from one organization to another.

You should always contact a professional Debt Services Company in such situations. As some companies will offer counseling and help you to prepare a financial plan and budget. You will gain financial knowledge from counseling and also you will know how to avoid a financial trap again.

For free debt relief visit us at http://www.tfgi.com Check debt consolidation loans at http://www.rebuild.org/debt-consolidation.html and free credit check at http://www.tfgi.com/credit-reports/