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Debt Collection News Roundup – November, 2017

Here at Access Credit Management we like to make sure we bring our readers interesting and relevant news about our industry so once a month we’ll be publishing a News Roundup.  This should keep you up to speed with all the important goings on within the sector so that you have a resource that keeps you fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here. 

Please join in by adding your comments on our Facebook page, tweeting on Twitter or email us if you come across anything that you think we should include.

First comes the worrying news that Britain’s public debt will not fall below pre-crisis levels until the 2060s!  Following last week’s budget, two of the UK’s leading financial think tanks warned that we face the longest fall in living standards since records began.  With downgraded growth forecasts from the Office for Budget Responsibility (OBR), the director for the Institute of Fiscal Studies revealed that maintaining the deficit at just over 1% of national income projected for the early 2020s will mean that it will take another 40 years for the national debt to fall to pre-crisis levels. 

At the same time, MPs have launched a formal inquiry into household finances as personal debt levels have increased.  The Treasury select committee will be examining the debt levels of UK households and whether consumers are saving adequately as Britain prepares to leave the European Union.  With growing concerns over borrowing levels and the amount of debt amassed on personal loans, car finance deals and credit cards, we’re now seeing debts at levels not seen since the financial crisis of 2008.  The cost of borrowing was increased in November from 0.25% to 0.5%, which has reversed the emergency rate cut which followed the referendum in a bid to avert another recession.

Meanwhile, according to the Guardian, an in-depth study into how well young people understand finance has been carried out, titled The Ticking Time Bomb of Generation Debt.  The study reveals that young people nowadays are under increasing pressure to take out store cards and take on debts in order to buy the latest gadgets and appear well off.  Many of our secondary schools have sidestepped changes introduced into the national curriculum in 2014 designed to teach students to manage their money on a day to day basis and learn how to plan for future financial needs.  It seems that only about 40% of schools actually deliver this type of financial education as a component of the “Citizenship” element of the national curriculum.  

And, finally, on a lighter note, it seems that a 33 year old Derbyshire man found a novel method of raising the necessary finance to pay his debts.  Police were called to his address after neighbours reported a strong smell of cannabis and discovered that he was growing five cannabis plants in one of his bedrooms!  The hapless indoor gardener admitted to police immediately that he was in debt and needed the money and was tried at Derby Crown Court where the judge handed him a six-month jail sentence, suspended for 18 months.