The week's Money News

18/09/2009

This week saw the end of Financial Planning Week - seven days of money advice for people with cash problems.

One finding from the week’s event is that the majority of Brits don’t think their savings will be enough when they retire.
Debt solutions firm EuroDebt has registered an increase of their over sixty clients – and a third of those still have a mortgage to pay off.

This week marked the first anniversary of the collapse of the Lehmann Brothers bank, and latest research reveals that Brits are continuing to put themselves in more debt.

Advice website Unbiased.co.uk found that as a nation we borrowed £5.5bn in the second quarter of 2009. That’s nearly double the amount borrowed in the first quarter.

Increases in borrowing could be due to rising unemployment. Official figures out this week revealed an unemployment high of nearly 2.5 million.

Losing your job is one of the most common reasons people turn to Debt Management Solutions with companies like EuroDebt.

It could also be a factor in mental health problems. According to the Royal College of Psychiatrists, one in four people in the UK with a mental health problem is in debt.

It comes after the London Health Forum found around a quarter of a million Londoners suffer from mental health problems as a result of debt worries. And it's costing the capital's NHS system roughly £450m a year, the campaign group said.

As a result the forum encourages getting debt advice early to save the NHS money.

EuroDebt has recorded an increase in the number of people looking for debt solutions. A Debt Management Plan or an IVA are two non-borrowing options for people looking to take control of their finances.

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