But two large coffees each working day amounts to around £136 a month. And when you subtract the average young person’s likely spend on Council Tax, rent or mortgage, food, clothes, utilities etcetera, this is a staggering percentage of true disposable income. 

As an illustration, let’s presume someone gave up coffee for good – and invested that money, making 6% a year in dividends from shares, for example. After five years, the investment would be worth almost £10,000 - even if the shares were at the same price.  Take that forward for another five and now we’re really talking at £22,600 and after 20 years, you’ve managed to amass over £63,000, simply by refusing to buy into the trendy brand mentality in one small area of day-to-day living, even in the unlikely event that the shares had never improved at all. 

In other words, prudence with the little things in life can pay off handsomely in the long run if you save and invest. Unfortunately, when you’re in debt, the exact opposite scenario is true – which is why people find their debts spiralling out of control. If you’re one of them, do everything you can to make even a small difference each month – and always seek expert personal debt advice expert personal debt advice.

It’s true that there are some excellent mortgage deals around for those who can afford to stump up the 25% deposit required. And this may well be an ideal time to consider re-mortgaging if you can; particularly as you can benefit from current low base rates for up to 15 years. But the average price of property remains way out of kilter with average earnings when compared to all the historical data available. The long term average has been for the average house price to be around 3.5 times the average salary. Even after the recent house price falls, the current figure is around seven times. And that’s with interest rates at anomalously low levels as the Bank of England tries to encourage some confidence. What will happen when interest rise even slightly as they surely will?

Add to that the fact that around a million people seem likely to lose their jobs this year, and you can quickly see what’s more likely to happen to house prices.

On an investment basis, property still makes no sense, on the whole, whatever the pundits say. One of two things is required before property makes sense; either wages will have to rise quickly, or prices fall.

If you’ve been drawn into the kind of erroneous thinking that states that property always goes up, don’t get suckered in again – but do do everything you can to hang onto your house and job.

On this site, you’ll find a wealth of advice about getting yourself into the black and staying there – or about the different ways of dealing with your debt problems, even if they seem insurmountable. But don’t trust property as a way out – certainly not yet anyway.

As is often the case when potentially alarming statistics such as these are unveiled, many people have started to panic unnecessarily. Whilst Simon Warsop, the director of home pricing at Norwich Union, was keen to express his concern about the figures, he was also quick to point out that people should not feel like helpless victims of crimes waiting to happen. Warsop stated that “these figures don’t have to be inevitable: ensuring windows and doors are properly locked, sheds are secured and properties kept in good order can all deter the opportunistic burglars”. 

Following these simple guidelines will ensure that you are giving yourself the best chance of escaping opportunistic burglary and the financial ramifications which can arise from such events. Remember that the impact of burglary upon your personal finances can be minimised by taking out a proper insurance policy and you should make sure that all your valuables are listed under this policy. Norwich Union revealed that the prime targets for opportunistic thieves include games consoles, DVDs, cameras, personal computers, and mobile phones.

If you are struggling to cope with debt at this time of financial uncertainty, you should consider contacting a professional personal finance company for help drawing up an effective debt management plan.

These individuals will be offered £100 if they switch to the Premier Current Account or the Premier 50 Current Account. Applying is relatively straightforward, which is also a refreshing change in this era of financial complexity. The Current Account Manager at Alliance & Leicester has spoken about the motive behind the new offer. Gillian Almond revealed that at a time during which “Alistair Darling and his team have been reviewing the country’s finances”, it only seems right that individuals should be provided with the opportunity to “get more bang for [their] buck” by reassessing what existing “current account[s] offer” in terms of financial bonuses.

Having said this, Almond was keen to point out that taking advantage of financial incentives such as these is only one way to ensure that you remain debt free over the coming months, which are set to provide UK homeowners with more worries about their bank balances. For instance, it is essential that individuals review their direct debits to see precisely how much money is coming out of each account. There may be non-essential payments, such as gym memberships, that can be cancelled, which will decrease the strain on your personal finances. 

For help with any aspect of debt management, contact a professional debt solutions company for impartial advice.

Basically, the Homeowners Mortgage Support Scheme is designed to help homeowners, who have temporarily lost part of their income, to keep their homes.

So what will happen?

If you apply for the scheme, you’ll initially be referred to an independent money advisor who will explain how the risks and benefits will affect you. If, having had the advice, you decide that the scheme is something you want to proceed with, then you’ll be able to defer up to 70% of your monthly payments for up to two years. But bear in mind that any money you defer paying will be added to the mortgage - and will have to be paid back, with interest, when your payments resume. In other words, you may later have to increase your payments or increase the length of your loan.

The scheme is, therefore, an excellent way of seeing you through the hardest of times and helping you to keep your home – should the need arise.

However, in order to qualify, you’ll need to meet the following criteria:

-You must be suffering a temporary loss of income – and monthly payments can only be cut by a maximum of 30%, so you’ll need some income.
-You must be an owner-occupier with a mortgage of less than £400,000.
-You must have less than £16,000 in savings.
-You must have bought your home before December last year.
-You must have talked through other possible options with your lender and you need to have been making regular payments for at least five months.

On the other hand, you won’t qualify for the scheme if:

-Your lender isn’t part of the scheme.
-You own more than one house.
-Your income is unlikely to return to its previous level.
-You have insurance that protects your mortgage payments.
-Your lender thinks you won’t be able to keep up with your monthly payments, even if they are reduced.
-You are claiming Jobseeker’s Allowance

If you’re worried about being able to keep up with your mortgage payments, take action. Communicate with your lender as soon as possible. And if you’re in debt, take expert personal debt advice as soon as you can – there are many different ways out of your situation.

The CSA has acknowledged that the current economic environment is placing greater pressure on debtors – and that debts are being passed to agencies for collection. It says that it is doing all it can to improve the relationship between creditors and debtors, and this is the first in a series of announcements it expect to make in the coming weeks, so there’s a chance of more good news in the pipeline.

However, if your creditors are chasing payments, then it’s vital you seek help from an accredited debt advisor for the new agreement to apply.

But even more importantly, you must face up to your debt problems. There are many steps you can take to fight back against debt and undoubtedly, the most important one is to acknowledge all your debts, total them up and look at your interest payments.

Also, communicate openly and honestly with your creditors. Believe it or not, they may be able to help and – as long as they’re reputable companies – they should act in a responsible manner. They may even agree to a payment holiday or to renegotiate your repayment plan.

If you decide not to sort out the issue of child maintenance between the two of you, the amount paid to the partner caring for the child will be calculated using criteria including the number of children involved, the net weekly income of the parent who is not responsible for the daily care of the child or children, and the amount of time that the parent without the main responsibility for providing daily care has the child for during a typical year.

Although starting the process of receiving child maintenance can be stressful, it is very important that you maximise incoming finances. If you are entitled to additional income, you really need to make sure you receive it. Caring for a child can be extremely taxing on the finances and, if you fail to take advantage of payments such as child maintenance, you could find yourself struggling with debt. For help dealing with debt, contact a professional debt solutions company.

Well yes and no – it all depends how you use it. If you’re struggling to pay back debts, such deals may look tempting. But be very, very, careful. If you’re the type of person who has already run up credit card debts and you’re struggling to pay off these and/or other debts, then can you really trust yourself to use such a credit card to its best extent? If so, then great; use it to maximum efficiency. But if not, look at the “typical” rate APR of 15.9% and ask yourself if you can really affords that level of interest repayment.

Of course credit cards aren’t inherently bad and they can be excellent tools for thrifty people when used effectively. But those kinds of people aren’t really likely to be reading this article. And for people in debt, generally speaking, credit cards are the biggest debt culprits in the UK today, but they prey on those least able to afford further debt.

In fact, it’s usually better to take out alternative loans to pay off your credit card debts – as credit card debts are usually some of the most expensive types of debt around. A consolidation loan can be a good option, but again, only if it’s used wisely rather than as an excuse to spend more and take on even more debt. 

If you’re in debt, there are many steps you can take to dig yourself out, the most important of which is to face up to your problems and seek expert personal debt advice.

An administration order is a court order which covers all your unsecured debts. This means you make one regular payment and the court distributes it on your behalf to all your creditors.

Under the terms of an administration order your creditors are not allowed to take any kind of action against you once the order is in place – nor to demand money in any way.  You only have to make one monthly payment – and that payment is based on what you can afford; most usually over a three year period.

The downside is that the court charges you for this service and the fee may be anything up to 10% of your total debt. This amount will be taken before payments to your creditors are made and if you miss a payment the arrangement may not be valid.

Nevertheless, an administration order brings clarity and peace of mind to many people who were previously struggling to make payments and who may have been facing aggressive and/or unreasonable demands for payments from creditors.

If you think an administration order is the right solution, you have to apply directly to the court. You will need to complete form N92, which can be obtained from your local court office. You’ll need to include all your debts - whether they are in your name only or not. The court will usually take payments directly from your wages – though you can specify that you do not wish to pay it this way.

If you’re struggling to pay off your debts, there are many steps you can take, but it’s essential to take expert personal debt advice as soon as you can.

Claiming back bank charges when you’re not officially in financial hardship is also possible but the process is likely to be far more complicated and drawn out. The outcome may also be less favourable in the short term for you. If you are not in financial hardship according to official bank criteria but are still struggling with debts, contact a professional debt management company for help managing your money and tips on how to get out of debt.

However, you may still be entitled to claim back bank charges. Financial experts have been appearing on national television shows this week in an attempt to publicise a rule that was included in the 2007 agreement. This rule states that individuals currently in financial hardship are still entitled to become involved in the process of claiming bank charges. The confusing issue perhaps lies in defining financial hardship adequately. There are certain criteria which need to be met in order to qualify under financial hardship and the bank will send you a questionnaire upon request, which will ensure that you fall into this category. Generally speaking, however, you will need to show that your income is not enough to cover your living expenses and financial commitments (provided, of course, that they are reasonable). 

A professional company familiar with providing personal debt advice will be able to help you with regards to understanding the criteria to qualify as living in financial hardship. Qualified professionals may also be able to help you with the claiming process itself.

However, redundancy can provide an opportunity as well as a threat. Firstly, it may be an ideal time to look again at your career options and possibly to train for something you’ve always wanted to do but never had the opportunity to try.

It may also be a good time to polish up your skills by training in such areas as IT, management or business administration for example – or specialist skills in your chosen field. Have a look at the Careers Advice Service website for advice on courses and many other tolls to help you decide on career direction. Learn direct is also worth a look to browse courses that allow you learn when and how you want to – cost effectively.

Of course, if you’re in danger of being made redundant and you’re heavily in debt, you must also act immediately to take control of your finances. In these pages, you’ll find a wealth of advice on debt management. The right way out of debt will vary amongst individuals. The worst case scenario is declaring personal bankruptcy, but there are many other options including Individual Voluntary Arrangement and formal debt management plans, so be sure to face up to your situation, act straight away and seek expert personal debt advice.

Criteria

You may be able to consider starting an IVA to deal with your debt problems if you meet the following criteria:

• You must be a resident of England, Wales or Northern Ireland. If you live in Scotland, you will need a Protected Trust Deed.
• You must have UK debt in pounds sterling.
• You must be insolvent. This means that you are having difficulties paying your debts or that your debts exceed the value of the equity in your home.
• Your debts must be greater than £15,000 in total.
• You must be able to afford a minimum of £200 each month towards paying off your debts. To achieve this, you will need to be able to show a regular income and that you can afford to meet all your essential living expenses including food, clothing and utility bills – whilst still making at least the minimum IVA payment.

Anyone meeting these criteria may be able to start an IVA.

If you need help with your debts, you will read a huge amount of helpful information within these pages. It’s essential to seek expert personal finance advice from licensed debt counselors who will be able to advise on IVAs and various other options for debt management.

If you’re thinking about taking on a lodger to stay out of debt but don’t want to risk the potential pitfalls, try contacting a company for advice about a debt management plan.

Consolidating your debts certainly can be beneficial; it’s all about how you use this tool.

Most people who are heavily indebted have a combination of credit cards, loans and/or overdrafts. Debt consolidation is appealing as it reduces the administrative work and hassle of staying on top of the different debts – and even more importantly, it can save money on interest payments for those going about consolidation properly.

Usually, people consolidate debts by converting all their loans to a single loan with a lower rate of interest. This makes clear financial sense of course. Credit cards often have annual percentage rates in excess of 10%. Such debts make no sense whatsoever for anyone struggling to get their head above water. It pays to hunt around continually for 0% interest deals on credit cards, as long as you don’t use the new facility to increase your spending. Alternatively, many personal loans are available at far cheaper rates than credit cards, so again, these make sense to clear your more expensive debts.

Overall, therefore, securing the best rate of interest to minimise your monthly payments is an absolute MUST for anyone struggling to get debt free.

So what’s the downside?

Well the problem is mainly a psychological one. In practice, the reason you see so many companies in advertisements offering consolidation loans is that they know most people then use such loans to borrow more, so heading into a downward spiral. And with interest rates so low, it’s tempting for the compulsive spenders amongst us to consolidate then go on spending as much – if not more – than before. Therein lies the danger.

So yes, do consolidate, but use the tool wisely – and always seek the best possible rates and advice from experts with many years’ experience in the field.