There are many things to buy at Christmas, from decorations and presents to festive food and drink, and many families may find their income will not stretch far enough. This is why many may start to amass loan or credit card debt in order to have a great family Christmas.

The site’s researchers worked out that if people give into temptation and use credit cards to cover the cost of Christmas this year, they could be paying off what they owe until the year 2023. This estimate is based on people only making the minimum repayments every month.

Using the example of a consumer with a balance of £500 on their credit card, which has an average of 18.12 per cent APR, MoneySupermarket.com worked out that it would take 11 years and 8 months to pay off the debt, if only the minimum 2.5 per cent repayments were being made every month.

Furthermore, anyone who found themselves in this position would have to pay an extra £477 on their original debt to cover the interest payments.

The head of banking at the price comparison website, Kevin Mountford, said:

“The festive period is an expensive time of year and many may be thinking about using their flexible friend to tide them over this season. It’s important festive spenders use the most appropriate card option to suit their needs.”

Christmas debt problems could last until 2023 is a post from: MoneyPlus Group

Drummer Jimmy Brown, saxophonist Brian Travers, percussionist Norman Hassan and trumpet player Terence Oswald were all forced into bankruptcy last month at Birmingham County Court, despite the fact that they sold more than 70 million records throughout their 30-year music careers.

The band members are now said to owe more than £750,000 to various creditors. Mark Sands, a spokesperson for the firm which is handling the bankruptcy, RSM Tenon, told the Sunday Mercury:

“The amount we are looking to recover is £750,000″

“We will assess their assets, which includes their properties and earnings, and see what we can get back.

“It may be that they don’t have anything, in which case we will look at them, then move on. It might be they have £100,000 equity in their homes.

“If they can give us that amount, or close to that amount, in cash, then we won’t go to the lengths of them selling their homes.”

Although he could not say how the members of UB40 managed to lose or spend all of their money, Mr Sands did confirm that most of the band’s debts were to HM Revenue & Customs and to the creditors of DEP International. This was UB40’s own company, which has now gone bust. In some good news for the band’s fans, however, Mr Sands did say that the musicians could continue to play, because their earnings can be used to tackle their debt problems.

Bankrupt UB40 stars had £750,000 in debt problems is a post from: MoneyPlus Group

Christine and Lee Martin, from Haverhill in Suffolk, blamed their mounting debt problems as the reason why they decided to commit benefit fraud. Both Christine, 33, and Lee, 37, admitted numerous charges of failing to inform the authorities of changes in their circumstances.

Mrs Martin admitted that she failed to tell the local council that her husband had started working for ID Technology Group in 2007-2008, and once more in 2008-2010 when she began working for Tesco and her husband started employment at Culina Logistics. Mr Martin, on the other hand, answered charges relating to his income support and incapacity benefit. In an earlier hearing, he told the court:

“We were in a lot of debt. I lost my leg in 2006 and I have had seven years of hell, taking up to 165 tablets a week and being in constant pain.

“A lot of the time I was off work sick and having to have operations. I am still having trouble with it now. I broke my back in February and have not been able to work a great deal since then.

“We were just struggling with so much debt and we did not know what to do. We are going to pay it back – we are trying to put things right.”

As well as being given 12-month community orders and paying court costs, the couple will pay back £227 a month until all the benefits money is paid back. Their debt problems, however, have not gone away, so this extra payment could leave them in serious need of debt help.

Couple involved in £28k benefits scam due to debt problems is a post from: MoneyPlus Group

William Fox, 56, went through bankruptcy proceedings many years ago, in 1994. However, at the time, the Stalybridge businessman failed to provide the official receiver with the required information. This meant that his official court discharge from bankruptcy was suspended, which also meant that he was banned from acting as a company director until the bankruptcy order was lifted.

Mr Fox, however, has proceeded to breach his agreement on a number of occasions. In 1998, he was jailed for four months for trying to obtain credit whilst bankrupt, and then between 2002 and 2004 he is said to have worked as the company director for Propertylife, even though he was still not discharged from bankruptcy.

An inquiry was launched into Mr Fox’s affairs but he moved to Thailand before an interview could be obtained with him. He has now been apprehended many years later, after returning to the country via Manchester Airport.

Mr Fox plead guilty to acting as a company director despite being an undischarged bankrupt, and he has been ordered to complete 160 hours of unpaid work. He was also ordered to pay £1,500 in court costs, as well as receiving a further three year ban from working as a company director. District Judge Jonathan Taaffe said to Mr Fox before sentencing:

“I take the view that any person involved in the management of a company or business must understand their own legislation.

“The fact that you didn’t suggests that you have a cavalier attitude to the legislation.”

Oldham man caught running a company despite bankruptcy ban is a post from: MoneyPlus Group

We are proud to announce that MoneyPlus Group has been shortlisted for ‘Debt Management Provider of the Year‘ at the Insolvency & Rescue Awards 2011. The awards recognise the achievement of UK firms in the IVA and Debt Management field, and MoneyPlus Group has reached the final four. The award ceremony will be held on the 5th October 2011. To see how MoneyPlus Group can help you generate more income for your business Call 0800 9549 448.

Debt Management Provider of the Year – Finalist is a post from: MoneyPlus Group

MoneyPlus Group joins forces with HomeLoan Partnership is a post from: MoneyPlus Group

This guidance update follows the OFT’s recent review of compliance in the sector (which exposed unfair practices within the industry and highlighted areas that could be improved), along with a pre-publication consultation with leading industry bodies – including the Government, trade body DEMSA (the Debt Managers’ Standards Association) and Citizen’s Advice amongst others.

Michael Land, Chairman of DEMSA, commented on the consultation saying: “DEMSA and its members have long agreed with the OFT that there needs to be more exacting measures in place to put clients’ interests at the heart of the sector and stamp out new and emerging unfair business practices. I am pleased that the OFT has today set out a range of proposals which are designed to put transparency, fairness and consumers’ interests first.

“Under the DEMSA Code of Conduct members must provide their clients with fair and transparent information in advance of any service commencing, to enable them to make an informed decision. In addition, members must ensure that all marketing and promotional material is appropriate, accurate and not in any way misleading.”

A MPG spokesperson said: “The proposed guidance should help to improve the advice and level of service across the debt advice industry, which can only be a good thing for customers.

“As DEMSA members, most of the new regulations have already been introduced and are well established in our company’s practices, but we always welcome ways to enhance our service.”

Mr Land echoed this, saying: “DEMSA has continuously promoted the need for firms to have safeguards in place to protect consumer interests. All member firms must keep client funds ring fenced in trust accounts and provide a compliance certificate, from a chartered accountant, demonstrating they are maintained satisfactorily and ensure that all payments are passed on to their clients’ creditors within five working days. In addition all DEMSA members are audited annually and monitored constantly.”

Some industry experts have said that it will be interesting to see how some companies cope with having to drastically change the way they do business, but Director of the OFT’s Consumer Credit Group, David Fisher, gave a firm warning to those that fail to comply.

He said:  “’This guidance is designed to leave firms in no doubt about the standards the OFT expects and what they must do to comply with the law. The failings identified by our recent review are unacceptable and show that debt management businesses must raise their standards or face enforcement action.”

DEMSA is the only trade body in the sector to have received approval of its consumer code under the OFT’s Consumer Codes Approval Scheme. As the leading trade body in the sector it works closely with the OFT to help promote high standards in the industry.

The new guidance is due to be launched in full at the end of the year, once the OFT have had chance to review comments following the 12-week consultation period.

MoneyPlus Group welcomes OFT’s consultation to raise standards across debt management industry is a post from: MoneyPlus Group

Free Champagne Offer

Throughout June and July we are giving away a free bottle of champagne
to every introducer that submits 5 successful cases.

Call us today on 0161 927 3351

Champagne Giveaway is a post from: MoneyPlus Group

The fund will work alongside the Improving Financial Confidence programme, focusing on helping families living in social housing to steer clear of potential debt problems and manage better their money.

Working with social housing providers, as well as voluntary and community groups, the new fund aims to give people the capabilities and confidence needed to make informed choices about the way they handle their money, including where to access debt help and advice in the event that they should they need it.

The programme is specifically targeting areas with the highest levels of financial exclusion, to ensure that the people who need money and debt advice the most are able to access it. Other key focuses include young people, those who are in their first year of tenancy in social housing and people moving in and out of employment.

Known for its work distributing money to worthy causes, The Big Lottery Fund, is to manage the scheme,making grants available to projects lasting three to five years of between £500,000 and £1 million.

Sanjay Dighe, chair of the Big Lottery Fund’s England Committee, said:

“Many people are unable to access or use basic financial services and products such as bank accounts, contents insurance, credit cards or affordable loans and instead fall into a trap of using high-cost doorstep lenders, getting themselves into a debt spiral.

“This can make it difficult for people to manage their money, cope with financial pressures and plan for the future. It can also mean that everyday things such as household bills become more expensive.”

Fund launched by National Lottery to help debt management problems is a post from: MoneyPlus Group

Recent figures revealed that in the first three months of this year a total of 9,100 people were evicted from their homes – a significant increase when compared to the 7,900 cases reported in the last quarter of 2010. This number however falls short of the 13,000 repossessions seen in the first three month period of 2009.

Lenders are now concerned that repossession numbers could continue to go up, partly blaming the Government’s austerity measures and cut programmes for the increase. During the recession, mortgage lenders were encouraged to view repossession as a last resort, however any lenience they may have demonstrated during this difficult time may not last once the budget cuts and impending interest rates rises commence.

As a result, experts have warned that an increased number of homeowners are expected to fall behind with their mortgage payments each month. Paul Diggle, Capital Economics’ property economist, explained:

“Against a backdrop of subdued wage growth and a weakening labour market, the rise in mortgage possession cases seen in the first quarter of the year is unlikely to be the last.

“With household incomes also being squeezed by inflation, it’s plausible that, by the end of next year, both arrears and possessions surpass the peaks reached during the recession.”

The Council of Mortgage Lenders has estimated that around 40,000 people will have their homes repossessed this year. However, it also noted a slight drop in outstanding debt which could indicate that UK households are taking steps to tackle their debt problems.

Home repossessions rise as UK adults struggle with mortgage debt problems is a post from: MoneyPlus Group