Looking at Alice’s figures slightly differently here , we can see over half of all UK households have no savings - the only investments we seem to have made are in our mortgages (click the image for a larger version).

What’s interesting is the red area. These are the people outside of the DSS savings threshold and do not qualify for assistance if they become unemployed. If you fall into the grey area, and lose your job - you qualify for government assistance.

Other forms of assistance

The government has laid down a number of frameworks and options for people in financial troubles. Rumours say credit card debt is the next bubble to burst, as more people push their expenses onto plastic - creating the situation where a redundancy creates an increasing cascade of ever-growing debt and financial issues.

EndTheSpend and it’s partners specialise in IVAs, a government-created framework for avoiding bankruptcy. If you think this is a step you may need to take, speak to our team of qualified practitioners - our no-obligation IVA enquiry form can help you review your situation and see if this is the right solution for you.

Source: UK Bubble: A nation of paupers

“Deputy-director [of the CBI] John Cridland said business leaders had thought the downturn would be ’short and shallow’, but added: ‘The recession here in the UK looks to be deeper and longer lasting than we predicted only two months ago.”

A further report by Capital Economics warned that 665,000 service sector jobs would go during the recession, including 530,000 in shops, restaurants and hotels and 135,000 in administration and business services. The financial sector will shed 90,000, including thousands in banking. Construction will lose 485,000 jobs, manufacturing will axe 220,000 and 100,000 public sector employees could be given P45s, according to economists.

It’s clear the policies aren’t a magic bullet, and the knock-on effects of the mortgage and trading bubbles are going to be felt again and again over the next few years. It’s not just a low-income problem anymore; more and more people are falling under it’s shadow and finding themselves in situations they were told - only months ago - could never arise. As the idealised estimates of a short correction dissolve, we’re left with the reality of a problem expanding in scope and reach, but most dangerously - duration.

If you’re worried about your situation, or thinking bankruptcy as your only option, stop - our consultants are only an enquiry away, and guarantee an impartial assessment of your situation. You can restore your financial health with a minimum of disruption and maintain you property, and business.

Source: Daily Mail

Planning for early 2009

We have no idea where the year went either, much like the banks have no idea where their money went. But try to keep your eyes on your finances; watch out for opportunistic bargains and be wary of taking more credit onboard; the credit market is becoming increasingly hostile. Towards the second quarter of 2009, we’re braced to see huge numbers of people falling foul of repayments and credit agreements. If things are already getting on top of you, don’t let predatory lenders take control; take the initiative, safeguard your existing assets, and speak to our counsellors.

Debt can prey on the mind, even leading to extreme actions. The depressing news of citizens plagued by debt seem to be cropping up more and more. But we don’t have to end up like the dinner lady who worried about her debt and ended up in a freezer, But what can we do?

Get help sooner rather than later

One way to hang on to your home during times of tightening finance is to enter an IVA rather than a bankruptcy settlement; it will safeguard your home and avoid the long-term impact of a bankruptcy ruling. EndTheSpend provide expert advice and consultation for those considering an IVA; their online application process is quick, simple, and eliminates those for whom an IVA is not the right option.

Sources: Daily Mail, NY Times

The government has responded by issuing new guidance to steer judges away from repossessions if alternatives are available, but the Council of Mortgage Lenders still expect their prediction of a 70% rise in repossessions to hold through 2008.

Are there alternatives?

One way to hang on to your home during times of tightening finance is to enter an IVA rather than a bankruptcy settlement; it will safeguard your home and avoid the long-term impact of a bankruptcy ruling. EndTheSpend provide expert advice and consultation for those considering an IVA; their online application process is quick, simple, and eliminates those for whom an IVA is not the right option.

source: IFAOnline

While redundancy ranked second place in triggering mental health problems, the biggest culprit was house reposession.

Paul Corry, Rethink said: "I wouldn’t be surprised if we see a rise in the number of people going to their doctor because of mental health problems in the coming months."

The ramifications of a diagnoses of mental health problems can include being treaded with less leniency from their lenders. "There’s an urgent need to do something to prevent a mental health disaster", said Corry. "Even for people lucky enough to hang on to their home, the stress and worry of arrears building up can be enough to harm you mental health… it worries millions of us."

Are there solutions?

There’s no need to feel swamped by financial problems; while your lenders ultimately profit from this, there are legal instruments available to the public to manage these scenarios. A stress-free solution is the IVA, as offered by EndTheSpend.com - a resettlement plan drafted by a team of consultants specialising in financial management, legally obligating lenders to write off two thirds of any debt, at no risk to your existing assets - particularly your peace of mind.

sources: BBC, Rethink