Tax Credit Torture For Families

TWO damning reports into the tax credit system were published this week, claiming it causes distress and hardship to vulnerable families.

A survey by Citizens Advice found almost half of respondents said they would be less likely to claim credits in future as a result of their experiences. Overpayments which are suddenly demanded back by the Governnment were found to be the main issue.

Another report, by Parliamentary Ombudsman Ann Abraham, detailed how HM Revenue and Customs was accused of "unfair or unreasonable recovery of overpayments".

The credits were introduced by Gordon Brown'in 2003 to boost the income of around 6million families. But the system has been dogged with prob¬lems, with the Government recently admitting it had made more than £6bil¬lion of excess payments in error.

Citizens Advice found a third of respondents had been overpaid by £500 to £1,499 - but more than a quarter had been told they owed more than £2,500 and one in 10 more than £5,000.

Abraham said: "The report shows the distress which can be caused to some of the most vulnerable families when they find themselves with such a debt to repay - often unexpectedly, and some¬times a very long time after the money has been received and spent."

David Harker from Citizens Advice said: ''A significant number of respondents highlighted the devastating impact tax credit problems had had on their family. Some referred to having to sell or remortgage their homes, their families breaking up under the strain, and to severe stress and illness."

Chas Roy-Chowdhury from the Association of Chartered Certified Accountants said: "Your entitlement for tax credits changes if your income goes up or down, or if certain personal cir¬cumstances change. The problem is many people don't know when and what to inform the Revenue about - and it can take a long time for the Revenue to process information when it is recieved.

"This delay can lead to prolonged overpayments which are then suddenly demanded back."
Claimants should inform the Revenue of any change in income or circum¬stance, added Roy-Chowdhury.

Chase Saunders have seen evidence of this over the last few years and the hardship it causes is tremendous and really tips people over the edge.

Right or wrong some people live to their means and will borrow on the strength of the income they get including tax credits, when there is a change in the tax credit they receive their financial situation collapses and mounting debts are the result.

Chase Saunders can help with the debts that have built up. Chase Saunders will find a solution to put all debts together into one affordable monthly or weekly payment, even if those debts in the tens of thousands.

A Chase Saunders Financial Management debt advisor is contactable on FREE PHONE 0800 138 2299 or online at www.chasesaunders.co.uk

IVA Advice | Debt Help| Home Loans| Remortgages| Bridging| Quotes Chase Saunders provide a full range of financial services including IVA Advice and Dept Management, Full Mortgage, Remortage and Home Loan Services including the facilities to offer Bridging Financing.

Price of loans go through the roof

It was reported in the SUNDAY EXPRESS on 14th October 2007 that cash strapped borrowers with poor credit records face paying thousands of pounds extra to secure a mortgage as the credit­crunch takes hold, new figures revealed this week.
A quarter of all specialist and "sub-prime" mortgage applicants - those with a history of missed repayments or credit problems ­who were accepted for a home loan in August would not be accepted today, said broker The Mortgage Lender.
Those who secure a mortgage offer will find it expensive;with some sub-prime deals charging more than 10 per cent annual interest.
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A mortgage taken out in August by a customer with a poor credit histo­ry will now cost a new applicant as much as £200 a month more.

Lenders are tightening 'up on their 'affordability' criteria, which determines how much· they will lend calculated "from disposable income. With the higher interest rates charged even fewer people will get a mortgage.

The amount people can borrow is falling too with many lenders only willing to lend around 75 per cent of the value of the property.

Katie Tucker at broker John Charcol said: "Kensington's 'High And' range is only available to 75 per cent now, down from 85 per cent, and the two-year tracker remortgage rate is 10.5 per cent."

The so-called credit crunch stems from activity in the US, where banks lost
millions of dollars. When homeowners with bad credit records failed to repay
loans .

Lenders fear that risky lending to UK homeowners will lead to the same thing happening here.

Lenders are steering clear of high-risk borrowers. Those that will lend to those with poor credit histories will make them pay for- it. There have been dramatic changes to the rates offered.

Debt experts say that tightening up on how much lenders will offer could save people from bankruptcy.

Mainstream lenders are turning down more mortgage and personal loan applicants, according to new figures.

• Nearly 2 million of those applying, for a loan in the past six months' have been rejected by banks, said website MoneyExpert.com.

Chase Saunders financial management has already noticed that those with the habit of moving mortgages and the new lending restrictions are already starting to cause havoc.

The number of rejected applications has increased and the ability to maintain contractual payments to mortgages and other borrowings has suffered alarmingly.

Chase Saunders are a complete ‘one stop’ for financial matters, mortgage and remortgages, secured loans, debt management and IVA,s for those whose finances need a complete overhaul and would recommend that any body who is genuinely struggling with their finances should speak with a debt advisor who will point them in the right direction. Contact Chase Saunders Financial Management on FREE PHONE 0800 138 2299 or make a quick enquiry at www.chasesaunders.co.uk

IVA Advice Debt Help Home Loans Remortgages Bridging Quotes
Chase Saunders provide a full range of financial services including IVA Advice and Dept Management, Full Mortgage, Remortage and Home Loan Services including the facilities to offer Bridging Financing.

2 million loans declined because of credit crunch.

2 million loans declined because of credit crunch.



Many consumers will find it harder to get loans during the next few months with lenders turning down more mortgage and personal loan applicants, according to new figures.

Nearly 2 million loan applicants in the past six months have been rejected by banks, said MoneyExpert.com, a financial comparison site. MoneyExpert revealed 1.91 million adults had been turned down (for an unsecured loan between April and September compared with 1.39 million who were rejected in the previous six months.

"Lenders have been stung by bad debts with borrowers unable to repay the cash, and are tightening their lending criteria," said Sean Gardner at MoneyExpert.

"A combination of the credit crunch and the Bank of England putting up interest rates has hit borrowers' ability to repay and lenders are reacting. It is not just a matter of rates on loans going up. Lenders are much more cautious about who they will lend to."

At least nine lenders increased interest rates on personal loans this week by as much as four percentage points and many are upping mortgage rates.

Louise Cuming, head of mortgages at price-comparison site moneysupermarket.com, said: "The result of all this will be two-fold. First-time buyers will find it harder to get on the ladder, with lenders recognising only the very safest applicants, while existing homeowners experiencing financial problems will find it increasingly difficult to borrow their way out of trouble."

Chase Saunders Financial Management has noticed an increased number of people requesting debt advice because loan applications have been refused.

The worrying part is that people still believe that borrowing more to clear debt is the only answer. There are other solutions that can give the desired affect of clearing the debt even if over a longer period, but at a payment that is affordable, this safeguards all household expenses and improves living standards by having the knowledge that everybody is being paid. All this without borrowing a penny!

For FREE confidential debt advice contact a debt advisor on 0800 138 2299 or apply online to http://www.chasesaunders.co.uk/ . Help is here.

IVA Advice Debt Help Home Loans Remortgages Bridging Quotes Chase Saunders provide a full range of financial services including IVA Advice and Dept Management, Full Mortgage, Remortage and Home Loan Services including the facilities to offer Bridging Financing.

Do Not Borrow To Get Yourself Out Of Debt

The Sunday People 23rd September 2007, reported that a record number

of people are in money trouble – with many getting into worse debt AFTER taking out a debt consolidation loan.

More than 12.7million people have tried to borrow their way out of debt at some time in their lives.

8.5 million of these have carried on spending with credit, and therefore land themselves further in debt.

Chase Saunders Financial Management are speaking to increasing numbers of people who have been lured by the TV adverts that use the celebrities to promote Debt Consolidation Loans.

They now find themselves in a desperate situation with an even larger debt level than before, fortunately Chase Saunders have Debt Management and IVA programmes available to help them clear their debt without borrowing more.

Clearing debt with your own money is the only way to clear debts, a Debt programme does exactly that.

-Make one affordable monthly payment

-Only pay what you can afford

-Chase Saunders deal with all your creditors

-Request that all future interest be frozen and charges stopped

-Even if debts are in excess of £15000 you could be debt free in up to 5 years.

Call a Debt Advisor now in the strictest of confidence on 0800 138 2299

or go to www.chasesaunders.co.uk

Alarming figures

Alarming figures from the Bank Of England show that families are defaulting on their debts at a record pace.

The figures suggest households are defaulting on more than £20 million of debt every day – the most since 1993.

Mortgage repossessions rose 30% in the first 6 months of 2007,taking them to 14000,the highest level for eight years.

Worryingly, these figures pre date the latest rate rise, which pushed borrowing costs to 5.75 percent. Nor do they take into consideration the market turmoil that erupted this month, which has triggered harsher lending standards.

With interest rates rising and debt levels high, it will be much harder for households to meet their commitments.

If increasing debts troubles you, and you are finding it harder to make repayments, do not struggle on your own, professional help and advice is available, contact the debt advice team at Chase Saunders on Free phone 0800 138 2299 or contact them through our website http://www.chasesaunders.co.uk/ they will discuss your situation in the strictest of confidence and advise you accordingly. There will be a solution.