Monthly Archives: June 2011

Fuel Prices Start To Rise… Again!

The price of fuel is still adversely affecting motorists’ credit cards and bank accounts throughout the UK, a new report by the AA has revealed.

A recent report by breakdown service, the AA, has revealed that the slight dip in petrol and diesel prices appears to be over. As a result British motorists could be in for a hard time, feeling the effects on their bank accounts and credit cards.

After fuel prices initially dropped lower in mid-June they appear to have edged up in the last few days. The average price of petrol now sits at 136.07p per litre, down by 0.86p on the same time last month but more than the 135.75p per litre reported in the first 5 days of June. Diesel prices have followed a very similar trend.

The AA have said that, in spite of the fall in fuel prices, UK petrol drivers have been denied much of the saving that the crash in oil prices should have allowed. It should be noted that their was a significant fall of 16 dollars a barrel. This indicates that the petrol companies are short changing their British customers by aroun 2p per litre, or £1 a tank.

Edmund King, president for the AA, suggested that on average a two-car family could have saved £8.49 over the month and potentially could have improved poor inflation figures.

Mr King added:

“Without transparency in the oil and fuel markets and a regulator to ensure fair prices, drivers, consumers and the nation are open to being ripped off by whoever wants to make an extra buck.”

Rise in mortgage payment affects debt management plan

Rise in mortgage payment affects debt management plan

Rise in mortgage payment affects debt management plan

The wrath of global recession looms over the homeowners and the magnitude of this crisis continues to unfold. People who are paying less in terms of mortgage payment might be disappointed to find that the base rate will soon rise. Homeowners who can still manage their payments might find it difficult to pay off when their payment increases.

Many homeowners might default on their mortgage payment with the rise in the mortgage rates. If you cannot afford a mortgage payment then you need to take help from an expert to avoid the problems in future.

Can rise in mortgage payment affect your debt management plan?

You might panic as the rise in the mortgage payment might affect your debt management plan as that restricts your ability to accelerate the reduction of your debt. But you might be aware that a debt management program does not have a rigid plan. Make sure that you adjust your debt management plan according to your financial situation so that you can avoid missing your payments.

If your debt management payment needs to be lowered to make it affordable then your creditors might terminate the terms of negotiation. Therefore, you have no other alternative than filing bankruptcy.

You can discharge your unsecured debts by declaring bankruptcy. It helps to put an end to the illegal collection practices of the creditors by filing bankruptcy.

But you should be aware of the adverse impact of bankruptcy on your credit report. Filing bankruptcy damages your credit report for 7 to 10 years. During this period you will not be able to get any loans as the creditors might consider you high risk borrower. You should also know that the court appointed trustee will sell your property and fund raised from it will be disbursed among the creditors to pay off your debts. Therefore, you might lose your valuable possessions. Declaration of bankruptcy will also ruin your professional career.

About author: This article is written by Christina Jones, who is a financial content writer associated with Oak View Law Group. You can contact her here: christina.jones60@gmail.com

Mid & Low Income Families Feel The Pinch

Middle and low income families are feeling the effects of credit card and personal loan debt, in spite of economic recovery, a new report has announced.

Whilst the UK’s economy has continued to improved at a laboriously slow rate it is unlikely that many low and middle income families will feel any real benefits until 2015, a recent report by the Resolution Foundation has revealed.

The organisation suggested that the living standards of many families on low and middle incomes were feeling the pinch even before the recession hit. With an estimated 11 million workers on low to mid incomes many continue to feel it’s effects.

The Resolution Foundation based its analysis on Government projections, indicating that average pay is set to flatline until 2015 when it’s expected to increase again. In fact, the group suggest that, come 2015, pay levels are expected to be back at what they were in 2001!

With personal credit card and personal loan debt at high levels, combined with falls in the volume of “middle skilled” jobs available the quality of living for many is likely to suffer.

James Plunkett, Secretary to the Commission on Living Standards for the group, commented:

“We all know that the recession has hit living standards hard but something deeper has changed in our economy – even during the so-called boom years, ordinary workers weren’t seeing their living standards rise.”

Mr Plunkett added that “the big question now is what will happen when growth resumes – will ordinary workers reap any of the benefits? This report suggests that is far from certain.”