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Debt Collection News Roundup – July, 2018

Here at Access Credit Management we pride ourselves on keeping up to date with what’s going on the international debt collection industry.  We aim to bring our readers interesting and relevant news about the sector so once a month we publish a News Roundup.  This should keep you up to speed with all the important happenings in the industry and provide you with a valuable resource that that you can use to stay fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here.  If you have any stories you think we should be covering or if you’d like to comment on this or any of our other articles, please do so on our Facebook page or tweet to us on Twitter.

Our first story contains some worrying news for those who rent their homes here in the UK – according to the Telegraph, half of all renters fall into debt in order to start a new tenancy.  The cost of renting accommodation has risen to a point where a massive 31% of renters have to find money for a new deposit before they’ve managed to pay back their existing one, leading to financial difficulties and stress.  This has led to housing charity Shelter, consumer advocate Which? magazine and even the Residential Landlords Association to call for rent reform.  British rent deposits vary considerably with the average amount necessary being £1,180 (figures for March, 2017) while those wishing to rent in Central London face having to find an average of £3,266! 

Moving on to some more disturbing news, half of graduates in London regret going to university as they face a shortage of jobs whilst already carrying the burden of debt that financed their studies.   This is not good for students, not good for education and certainly not good for the economy in the UK.  According to Apprenticeships and Skills Minister, Anne Milton, university is not the only option to ensure a good career start – there are other routes to a successful career.

Meanwhile, the Independent reports that the application process for Universal Credit is so complicated that it’s forcing people into debt.  According to Citizens Advice, more than a third of claimants struggle to provide the necessary evidence to support their claim, leading to a quarter of claimants not receiving their first full payment on time.  The charity is now calling on the government to simplify the claims process to make it easier for claimants to provide evidence of health conditions, housing and childcare costs.  Ironically, Universal Credit was introduced in 2013 in an attempt to simplify the welfare system by combining six means-tested benefits and tax credits into a single monthly payment.

Last of all, let’s hear it for the girls!  Government figures show that in areas of high deprivation in the UK, women in the 25 – 34 age group are more at risk of falling into debt.  It’s been suggested that with so many lone parents struggling to balance their budgets whilst working part-time in sectors and roles with lower pay.