Debt Advice Help and Support

Week in Review (3 Feb 2012)

The great benefits debate has featured a lot in the news this week, with the Commons poised to overrule the Lords in order to get its way.

The Upper House proposed a series of amendments, one of which would remove child benefits from a proposed £26,000 a year cap on benefits, but the Lower House has since voted against the new measures, which could result in debt problems for many families with children.

Elsewhere, the water regulator – Ofwat – has agreed that water companies can increase what they charge their customers, which will add to the squeeze on households as unlike with other utilities, you can't pick and choose which water company you get your supply from.

You can, however, look at ways to reduce your usage – for helpful hints and tips, check out this week's Frugal Friday video.

The news about water bills going up comes at just the wrong time, with February forecast to be bitterly cost and according to Santander, many of us are worried about the damage the wintery conditions will do, which could leave many people in need of debt help to rectify matters.

The AA has also warned that people could be plunged into debt if they don't get property insurance sorted before bad weather hits, with the company's director of insurance, Simon Douglas, warning that many houses may become uninsurable if the number of claims keeps increasing.

In other debt news this week, Hastings Direct has warned that rising petrol prices will push a fifth of drivers off the road, whilst the Chartered Insurance Institute has indicated that many younger people face a debt headache as a result of ignorance about terms like 'credit', 'debit' and 'APR'.

This may be avoided if, as the Chartered Institute for Securities and Investment suggests, bank accounts become mandatory for 16 year olds so they can learn more about money and debt.