The UK is now considered to be Western Europe’s capital in terms of personal debt accumulation. Figures show that ,last year, the average person in Britain was over £3,000 in debt in comparison to the Western European average of £1,560. Unfortunately, Britain now accounts for around 30% of all personal debt in Europe’s western countries. This is more unhappy news for the UK as it struggles under the weight of the current credit crisis and tumbles towards recession.

Britain registered an unsecured debt total of £1.35 billion in 2007 which represented a 10% increase on figures for the previous year.

Industry insiders predict that the UK’s personal debt situation will worsen as the economic downturn continues. As more and more individuals and families begin to feel considerable financial pressure from the increasing cost of everyday living, there appears to be little alternative to borrowing more money from lenders. It has been estimated that for every five minutes the UK’s personal debt total rises by over £1 million

Those who are attempting to break the personal debt cycle are advised to implement financial controls on their spending habits and curb unnecessary expenditure. It is always worth remembering that there are a number of specialist agencies that will provide advice on how to handle debt.

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ABI research has predicted that the mobile phone industry will benefit from the current series of smartphone releases. The market intelligence firm also said that the unveiling of further hi-tech handsets will see the mobile market experience a significant sales growth during 2008.

As further proof of ABI’s analysis, there has been a series of reports which state that over one million Apple 3G iPhones were sold in its first week of release. Most United States and UK stores have sold out of the device. There is also excitement within the mobile phone sector at the news that RIM will launch a new Blackberry model.

Mobile phone providers are quickly becoming aware that the average consumer is no longer satisfied with phone models that offer ,what they consider to be, basic functions. Research has shown that the market for low tech mobile phones, is suffering from a decrease in popularity which translates to poor sales figures.

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The Financial Services Authority (FSA) has declared its intention to step up its fight aginst fraudsters by contacting major mortgage lenders to warn them that they must increase their security measures. The FSA has also outlined its main strategy in tackling this type of crime.

To date the FSA has contacted the British Bankers Association and the Council of Mortgage Lenders in order to highlight growing concerns over the way in which mortgage applications are being handled and to point out the fact that lenders have a duty to combat criminal activity.

In the past year the Financial Services Authority has taken action to ban 17 people who are involved in the mortgage lending industry and have issued a series of financial penalties in order to curb fraudulent behaviour. In one case a mortgage broker received a whopping £129,000 penalty.

The mortgage industry monitor has also indicated that it plans to review whether mortgage brokers will require their approval. The FSA is currently planning to examine the practices of around 200 mortgage brokers.

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A high proportion of homeowners are opting for capped electricity and gas packages as energy firms have predicted that bills will rise by as much as 70% . The UK’s current economic difficulties have resulted in a large number of households having to adopt a wide range of financial belt tightening measures

Consumers can save hundreds of pounds by shopping around for their energy services. Because it now seems to be inevitable that prices must rise it is advisable that people take immediate acion to protect themselves against energy price rises. Selecting a capped energy package can ensure that homeowners will not add to their current financial pressures.

Advisory agencies such as the Citizens Advice Bureau had previously pointed out that families should ensure that they closely monitor their gas and electricity payments. The use of the direct debit payment method has already been shown to have the potential for causing unforeseen arrears.

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The Automobile Association has reported that the cost of car insurance premiums has risen by an average of £20 since April. The British motoring company which was founded in 1905, has produced a British Insurance Premium index which shows that the steepest price rises were reserved for young motorists. Young drivers are now faced with a whopping £45 increase in their annual car insurance bill. Data also shows that the average cost of motor insurance is £700 per year.

According to a senior AA spokesperson, car insurance costs are currently soaring to new highs. Unfortunately, the number of car accidents in the UK is on the rise and, although there has been a decrease in the number of fatalities, young vehicle owners are facing the heaviest financial penalties in terms of insurance premiums.

The AA also pointed out that the motor industry would have to increase its efforts to work with road safety campaign groups in order to ensure that young motorists used the roads with more responsibility. Safer driving leads to less accidents and cheaper insurance premiums.

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UK payments industry association, APACS, has reported that credit cards have been used in 2.7 million fraudulent transactions during 2007. This represents a 20% increase on figures from 2006. The data ,which was released in the Home Office’s annual crime statistics report, shows that £555 million was lost to this type of fraud.

Closer inspection of the report revealed that there had been a significant rise in criminal cases that involved the counterfeiting of debit and credit cards. Another alarming crime statistic has shown that criminal use of personal information derived from stolen cards, where the fraudulent user often uses these details to make online purchases, had risen by nearly 40%.

APACS stated that this steep increase in card fraud had been fuelled by criminal activity in other countries that had not yet incorporated chip and pin security measures.

Online shoppers are advised to ensure that they carry out safety checks before releasing card details or any other kind of personal information to websites. Failure to do so could result in the loss of hundreds or thousands of pounds.

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The UK’s leading car price guide has warned that car owners ,who have increased their mortgages in order to finance the purchase of a new vehicle, may be heading for serious financial difficulties. According to Parker’s Car Guide car buyers who have re-mortgaged their properties to pay for their motors will now find that their car value has decreased significantly whilst loan repayments have soared.

The Bank of England has reported that British homeowners have borrowed over £310 billion since 2000 in order to pay for items other than their properties. Those homeowners who have raised funds to buy a new car are facing the prospect of losing thousands of pounds to high interest rate charges and may have to repay twice the amount of the car’s actual cost.

Parker’s has recommended that those people, who have bought a car by increasing their mortgage should seek financial assistance immediately. They are also advised to pay off the extra amount that has been borrowed as soon as possible. Anyone who is thinking of using their mortgage to pay for a new car should not do so especially with the UK under pressure from the current credit crisis.

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The Association of Investment Companies ( AIC ) has reported that students are leaving university with an average loan debt of around £13,000. The situation is expected to deteriorate with the AIC predicting that ,next year, extra top-fees will see graduates leave university with a £20,000 deficit.

The AIC also stated that over 50% of students have to rely on loans to ensure thatthey complete their studies. Over 10% suggested that they have no other option than to take on part-time work in order to ensure that they received a steady source of income and avoid further debt.

The credit crunch is hitting the British way of life and an increasing number of parents are finding that they are unable to cope with the financial demands of university fees. It is recommended that parents take the time to plan for the financial expenditure that is associated with student life.

There are no signs that there will be a reduction in the cost of university education despite the current effects of the economic downturn on every day living costs.

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Centrica, the UK’s largest energy provider, has predicted that the soaring cost of oil and gas will cause the average annual bill for a household to rise from £600 to over £1000 by 2011. In real terms, families can expect to be faced with bills that have increased by a massive 70% in comparison to current costs. Some industry experts have even predicted that these may be conservative figures.

It has been widely reported that North Sea oil reserves will soon be depleted which has ultimately resulted in the UK becoming reliant on imports. The current turmoil in global oil prices has meant that commercial gas prices are now twice as high as they were last year.

Energy providers continue to state that they can do nothing about high gas and electricity prices but debt agencies predict that around 6 million people will fall into fuel poverty. However, the Government may compel large energy companies ,such as Centrica, to trim the cost of bills for families who are in financial difficulties.

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Mortgage industry experts are suggesting that the UKs mortgage market is showing signs of recovery as the Nationwide building society announced that it is to cut the rates on all of its major fixed rate mortgage packages and selected tracker deals.

The lenders two year fixed deal for those borrowers who have a 25% deposit has dropped from 6.48% to 6.18%. Earlier in the month the rate had been set at 6.55%.

The Nationwide’s rate reduction has come shortly after some of the UK’s largest lenders including Halifax and thae Abbey National, had already made similar cuts.

Analysts have predicted that the turmoil that has been created in the mortgage sector because of constant rate increases, may now be at an end.

The rise in rates has been attributed to the global credit crunch but economists are confident that the Bank of England will now seek to cut interest rates in the coming months.

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