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Personal Debt

Are You Having Problems Repaying Your Bounce Back Loan?

Bounce Back Loans were a key plank in the government’s strategy for supporting SMEs through the Covid lockdown. Payment was deferred for a year, which for many seemed too far ahead to worry about — but we’re now into the second repayment month. So how is it going? What Were the Bounce Back Loans? So much has happened since last spring, when the scheme began, that even if you have a loan your memory of its
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One in Five Renters Finding It Difficult to Meet Their Housing Costs

A Government report released in April shows a stark picture of how households are coping with their housing costs and savings in the pandemic. The problems apply to both the home-owning and rental sectors, but renters seem to have been hardest hit. The Second Wave Household Resilience Study After more than a year of the pandemic, the Government has published a study of how households are holding up in the wake of the
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Government Recovery Loan Scheme Now Available

With lockdown being cautiously eased, many businesses are looking forward to reopening, especially those in the retail and hospitality sectors. However, many of these have been closed, or at least operating on a restricted basis, for the past thirteen months and will find reopening difficult. However, a new wave of government support for businesses started on 6th April, under the Recovery Loan Scheme (RLS). One Schem
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What to Do if You Want to Rescind a Winding-Up Order — and What Not to Do

If a company that owes you money has debts so extreme that there’s no possibility of payment, you can apply to the courts to have it wound up. This is a drastic measure and usually a final one — once the winding-up order is granted, it normally means the company is finished. Exceptionally, however, you might change your mind. It’s possible to apply to have the order rescinded, but the process is complicat
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Payment Holidays — Do You Understand the Implications?

The financial effects of the pandemic have been severe on many of us, whether we’re acting as companies, landlords or individuals. One lifeline has been the ability to take “payment holidays” in the repayment of mortgages, loans or debts. This has been invaluable — but is it really the straightforward benefit it seems? Recent research by Resolver suggests it may not be. Payment Holidays Early in the
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Supreme Court Ruling Offers a Lifeline to Small Businesses

Are you one of the many SME owners who have been forced to close your business, wholly or partially, during the Covid-19 lockdown? If you have Business Interruption insurance that covered closure due to disease, you may have been one of the policyholders refused payment by your insurer. However, there’s good news. A ruling by the Supreme Court on the 15th January has established that in most cases closures due
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Poverty and Debt — the Legacy of Covid-19

2020 has been a difficult year in so many ways. Quite apart from the struggles of living in lockdown, the disruption has had a devastating effect on many bank balances. Two recent reports show the growing level of hardship many households are facing and the debt burden being taken on to cope with this. 30% of Households Facing Hardship Research by the Resolution Foundation suggests that incomes have fallen significan
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Is There Light at the End of the Tunnel over Late Payments?

Late payment has for a long time been the scourge of small businesses, and this has only got worse during the pandemic. Many businesses are suffering severe cashflow problems as a result, including the risk of closure. However, there are signs the government is finally contemplating action to help struggling businesses facing this issue. The Scourge of Late Payments Most small businesses operate on very narrow margin
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Is This the Time for a Full Review of Debt Options?

The options open for people who fall into debt have needed reform for some time, but the Covid-19 pandemic has made the issue urgent. The Money Advice Trust has now published a new briefing, urging the government to commission a full review of the options for debt management. The Debt Crisis The need for review of debt options was already being urged before this year. In 2018, the Money Advice Service (now part of th
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£70bn Unsustainable Debt for UK Businesses

The past six months have been hard on everyone, and many SMEs have found themselves struggling financially. The government has created a variety of opportunities allowing businesses to borrow money or defer payment, but this has come at a price — high levels of unsustainable debt. Financial Predictions for Business A recent report by TheCityUK has predicted that UK businesses, the vast majority of which are SMEs, are
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