Official figures suggest that the recession has seen the average household’s retirement savings reduced by over £10,000. The Office for National Statistics puts the figure at a staggering £400 billion drop in the UK population’s combined pensions in a single year. It’s not just down to personal hardships affecting savings either; for the first time in a long time, companies have cut the amount they pay into workers’ pension schemes.

These figures give us our first real insight into the effect that the recession will have on people’s retirement. The huge drop in the value of people’s pensions will have the knock on effect of postponing their retirement until they feel they can afford it. After all, there is no guarantee that you’ll have paid off your mortgage by the time you hit retirement age. There is also the chance that unexpected expenses can put extra pressure on your financial situation. It all points to the added importance of your savings and clearing yourself of your debt burden by the time you leave employment. The sad truth is that, due to a couple of significant drops in the price of shares, the value of the average pension has hardly increased at all in the last ten years. This trend looks set to continue for another ten years, as the UK economy struggles to recover from the recession.

In 2008, the average amount being saved was less than 2% of a person’s earnings. That’s the lowest proportion put towards savings since the 1950s. The Office of National Statistics put the UK’s total pension fund in 2007 at £2.2 trillion, this fell to £1.8 trillion in 2008 after the fall in the stock market. At the same time, employers’ pension contributions fell by almost £6 billion. Essentially, if you earn £50,000 a year, you’ll have £250 less going into your pension. That’s £250 that would otherwise be going towards the savings that keep you afloat in your retirement. That’s £250 that would be going to pay off your debts when your salary is no longer there to rely on. You should act on this now and free yourself from the burden of bad debt before your retirement. There are debt solutions on the market that can help you achieve this so visit www.harringtonbrooks.co.uk and use the free, no obligation debt wizard to find your best option.

Recent figures have shown that house prices in the UK jumped up by 1.2% in the first week of 2010 alone. January saw an upswing in confidence from sellers appearing on the market and as a result, we’ve witnessed a significant increase in asking prices. Across England and Wales, this has translated to an increase in the average house price by almost half a percent. This may not seem to be a huge change but if the trend in increased seller confidence continues and the asking price for homes maintains this same rate of growth, the impact on the average house price in the UK will be significant.

In addition to this, estate agents also estimate that the number of homes currently on the market in the UK is at its lowest for a decade. This could be impacting on seller confidence as the short supply on the housing market will also be pushing up prices. There are, no-doubt, a host of contributing factors but what is clear is that in direct comparison with the same period last year, the average asking price of a British home has gone up by nearly 5%. This simply means that sellers are confident in asking for more money but that in itself can serve as an indicator of the wider economy. Rather than the economic doom and gloom of the credit crunch years, sellers are infecting the housing market and wider financial environment with a sense of growing optimism.

The number of homes for sale is far lower than two years ago. This can point to a population which felt at one time that they had to sell up to free equity from their property but now feel settled. This could be a result of the emergency rate of interest, which has allowed those people with a tracker mortgage to pay off far more of their outstanding debt. It could also be the result of the distinct shortage of on new-build properties on the market as builders and developers reigned in their activities during the difficult financial climate. For whatever reason though, prospective buyers have extremely limited choice in the most popular areas.

So, for homeowners who are facing debt problems, their biggest asset could well be their solution. There is a range of options open to homeowners looking to use the equity in their home to pay off their outstanding debt. It can be used as collateral for a debt consolidation loan; letting you secure your unsecured debts and could offer you a better rate of interest, as well as a possibly easier to service repayment plan. Although you should never commit to a debt consolidation loan that you cannot afford, if the debt becomes secured against your home it is at risk if you fail to keep to the agreed repayments, and you should also be aware that you could be paying off this debt over a longer period of time.

There is also the option to just sell up, down-size and free some funds to pay off your debt. Also, there is the option to remortgage your home. If you’re one of those with a tracker mortgage that’s reaped the benefits of the emergency interest rate, now could be a good opportunity to switch to a fixed rate and free up some equity to settle debts, always seek professional advice.

There are a lot of choices to be made and the very first one should be where you go for advice about the best course of action. This discussion shouldn’t be a difficult one though. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. They are on hand to offer free, impartial debt advice to anyone facing the threat of bankruptcy and repossession. The expert team of debt advisors have a lot of experience in this area and know that everyone’s financial circumstances are different. Therefore, they can advise you on the best solution to your specific debt problem.

Visit www.harringtonbrooks.co.uk and use the fast, free debt wizard for a quick insight into the solutions that could suit you. Then, talk to one of the team and they’ll tailor a plan to free you from debt and make the most of your assets.

Here are the top ten potential pitfalls of personal finance, courtesy of Harrington Brooks. These all pose a significant threat to your financial security and can each be noteworthy contributories to severe debt problems, which could lead to bankruptcy and even repossession of your home and other assets.

1. Beware of the extras that are on offer with your bank’s current account. Banks can charge up to £15 a month for these so called “package accounts”, which can incorporate things like travel insurance and breakdown cover. If you can take full advantage of these benefits, the account may seem worth the money. However, if you’re not actually going to use these extras then it’s a waste of money.

2. While renting electrical items like televisions may at first appear to be a good idea, they might not always be. It’s worth bearing in mind that renting, no-matter what it is, leaves you with nothing. It can also work out to be a lot more expensive. You could find that a few months of saving will actually allow you to just buy the appliance.

3. Mobile phone deals that offer free gifts, like laptops and games consoles, when you sign up to a contract have proven to be quite popular. However, savvy shoppers will read the small print of course, knowing that they could save hundreds of pounds over the term of the contract and could buy a better laptop elsewhere.

4. Investing can be fraught with problems and has resulted in many cases of bankruptcy over the years. If you are looking to invest, don’t buy directly from the fund management group as they’ll charge you a substantial fee, often up to 5 per cent, which will eat into your investment before you’ve even started. The same funds can be picked up cheaper through independent financial advisers or brokers.

5. Remember, a store card is just like a credit card but instead of charging about 17%, store cards will usually charge interest rates closer to 30%. Essentially, should you stay on top of your spending and pay off any outstanding debt before the end of the month, there will be no problem. However, paying 30% interest on your debt is going to make it hard to pay off.

6. Spreading the cost of your insurance premium over the year can incur interest rates of over 20%. So, if you can afford to pay it all at once, it’ll save you money. You just have to decide whether the convenience of monthly payments is worth the extra cost.

7. Are you being charged extra for payment protection insurance which may be overly expensive and wholly unnecessary? Often sold with a personal loan or a credit card, the theory is that they will cover any monthly repayments missed due to accident, sickness or unemployment. However, they’re so bad that the Financial Services Authority must closely monitor the sale of any such policy. Always seek professional advice before cancelling any policies attached with your insurance so you can be sure that it is the best thing for you.

8. Simply another form of insurance that you could well do without, the extended warranty could well end up costing you more than it would to buy a replacement for the item. Bear in mind that products will tend to have a manufacturer’s guarantee and you’re statutory rights exist to ensure products are of satisfactory quality.

9. Be sceptical of investing in affinity accounts. These let you donate some of your interest to a cause but don’t actually work out as a good deal for anyone. Is it worth a far less competitive rate to feel affiliated to your favourite football team? Go for something with a better rate and donate money separately. You’ll all be better off.

10. Buying mobile phone insurance from the supplier is essentially paying twice for the same cover. First, check your home insurance, as it could cover you under accidental damage. Do check the excess though; it could be more than the phone’s worth.

Harrington Brooks aim to solve your debt problems. The easiest way to do that is to simply help you to avoid debt in the first place. So, we’re glad to be able to offer some financial pointers. However, if you’re already in debt, we’re experts in helping you solve the problem of bad debt quickly and easily. We can provide you with a debt solution tailored to suit your specific needs, so visit www.harringtonbrooks.co.uk and take the fast, free debt test to find out the best way to solve your financial problem.

A recent report conducted jointly by the Citizens Advice Bureau, AdviceUK and Shelter has emerged as a damning indictment of Britain’s mortgage lenders. It claims that they are wantonly disregarding the rules which have been designed to help homeowners avoid repossession. In a staggering third of all recorded cases, lenders had flagrantly failed to comply with the new rules which compel them to take court action only as a last resort. Lenders should be taking homeowners through the other debt solutions on offer before the legal recourse. These findings suggest that this isn’t the case.

The report is based on the findings of financial advisors who give last minute advice to individuals facing bankruptcy and repossession when they arrive for their time in court. This shows that, on the day of their repossession hearings, individuals were finding that if they had been privy to the proper information, the painful experience could’ve been avoided. This last minute advice, provided by a court duty desk adviser, is proving to be crucial in helping people capitalise on any slim chance that the repossession of their family home could be prevented. An absolutely astonishing number of the cases analysed, more than three quarters, found that they could avoid the immediate loss of their home. Sadly though, due to the debts that put them in that position to start with, it’s estimated that half would struggle to sustain the repayments schedule. So, for many, the risk of repossession still looms and has simply been delayed.

In order to more successfully dodge the threat of repossession, being made aware of the possible debt solutions earlier would be a huge help. It is lucky then, as the lenders are letting down so many vulnerable homeowners, that there are specialist debt advisors at Harrington Brooks on hand to offer you the specialist support you need. The sooner you face up to your debt problems, the better. We’d still advise that you talk to your lender whenever you find yourself struggling to make a repayment but remember that there is free, impartial debt help available from one of the UK’s oldest and most respected financial institutions. After all, everyone’s circumstances are different so it pays to talk to someone with vast experience in dealing with cases of all kinds. Use the Harrington Brooks Debt Wizard to find out which debt solution would be best suited to someone in your situation. We have a dedicated Stop Repossession Service which can give you support throughout the entire process and we will do everything in our power to help you to fend off repossession if possible.

Financial analysts are predicting that the signs of an economic recovery and rising inflation could force the Bank of England’s Monetary Policy Committee (MPC) to consider raising interest rates ahead of schedule. This increase in interest rates looks set to begin in March and although the shift will be gradual, it will have a noticeable impact on the UK’s borrowers. Figures for economic growth which are due to be released at the end of January are predicted to confirm the green shoots of fiscal recovery and highlight a dramatic rise in inflation. Economic policy, although remaining flexible enough to support this recovery as much as possible, should do what it can to ensure that the UK meets the inflation target and the emergency bank rates could well hamper this effort.

A rise in interest rates throughout early 2010 was first predicted in September last year but there are other schools of thought surrounding the timeframe for economic recovery. Of particular interest is the opinion of the Royal Bank of Scotland, which was one of the most heavily effected lenders during the recession. In a statement, a representative of RBH stated that they expected bank rates to remain at the 0.5% emergency level for much of 2010. The real benefit of this would be to those homeowners who have a tracker mortgage and can use the low rate of interest to pay off as much of their mortgage as possible. After all, mortgage payments are likely to be your highest monthly expenditure and keeping a roof over your head one of your highest priorities.

Consolidating your unsecured debts into a single monthly payment can be an excellent way of easing the pressure of mounting debt. Remortgaging can be a suitable way to facilitate this, allowing you to release some of the equity in your home to service outstanding debt. You can remortgage by switching your existing mortgage to a different policy. With interest rates forecast to rise, those homeowners with a tracker mortgage, that have been reaping the benefits of the 0.5% emergency rate of interest, are in the best position to switch to a new lender. The process of shopping around can be a difficult, time consuming process and one which is fraught with potential pitfalls, so it is essential that you seek expert advice about your remortgage and be sure that your new mortgage is affordable to you.