Money News weekly roundup

11/09/2009

The effects of the credit crunch on debt agencies came to light this week, as an influx of people in uncertain financial situations have had to face facts and seek debt solutions.

Debt problems are beginning to reach people who have never experienced them before according to financial management site EuroDebt.

Reduced working hours, pay cuts and rising household costs are given as the causes of ever-tightening budgets.

The Banks have been in the hot seat this week as new figures from the Financial Services Authority show that complaints against British banks have increased by 122 per cent in the last three years.

From just over 600,000 complaints in the second half of 2006, complaints rose to 1.3 million in the first half of 2007 – and hit 2.9 million during 2008.

Some banks have got the thumbs up from customers though... The RBS-Natwest group has taken the lead to be the first to slash its overdraft fees.

From 1st October, if you have an account with RBS or Natwest you'll only be charged £5 for a bounced cheque, instead of the current £38.

Lower overdraft fees will be crucial if the latest YouGov survey is anything to go by. It found more than a quarter of Brits are relying on winning the lottery to see them through financially.

Although there's only a 1 in 14 million chance of hitting the national jackpot, it's the favoured option over seeking professional help. Just one in 20 said they'd take this route to improve their personal finances.

A glimmer of hope for homeowners in the red this week. The Government is launching an ad campaign for people behind in their mortgage repayments.

It's urging people to take control and get help, saying it's never too late. The Housing Minsiter John Healey says they've already helped 300,000 people since April 2008.

And this week became the sixth month of the all-time low interest rate of 0.5 per cent. But it hasn't been much good news for consumers, hit by declining interest rates combined with rising mortgage and loan costs.

Financial planning firm EuroDebt pointed to Debt Management Plan'>Debt Management Plans and IVAs as a long term solution to deal with personal debt situation? Take our Debt Calculator test today!'>personal debt.

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