Figures from the Ministry of Justice show 28,658 orders were made by the courts in England & Wales from April to June this year. This is up 24% on the same period in 2007 and up 4% from the first quarter of 2008.

Repossession orders come early in the process and do not necessarily end in repossession. A deal can very often be agreed between the mortgage lender and the borrower.

However, the figures released for actual repossessions across the UK have showed a huge increase. Last week the Council of Mortgage Lenders (CML) reported the number of actual repossessions rose to 18,900 the first six months of this year. This is up 48% for the same period of last year.

The credit crunch is responsible for more expensive mortgages which borrowers are finding more difficult to keep up with along with other rising household bills.

The charity Shelter has also reported that the number of people coming to them for help has risen by 55% and they are seeing more ordinary hardworking people seeking their help.

Get cheaper broadband with a dongle – save up to £250
Think about ditching your landline telephone and buying a “dongle” for your mobile instead. It plugs into your USB port and allows you to get high-speed internet access at home and on the move, via Bluetooth. The major mobile networks are offering monthly subscriptions from just £10.

Don’t buy books – save £100 or more
Don’t pay £7.99 for new books – use your local library, charity shops or online book swap clubs.

Take your own lunch to work – save up to £1,000
Making your own sandwiches can save a fortune and often taste better too. Buying family packs of crisps, chocolate bars and bags of fruit will give you a varied tasty lunch for a fraction of the cost.

Cancel your gym membership – save up to £800
Most of us don’t use the gym regularly - if at all! Try taking to the streets, walking or jogging for free. Exercising at home can be more effective too – most of us have keep fit DVDs and exercise equipment at home.

Have your hair cut by a trainee – Save up to £350
The price of a cut and blow dry at a good salon is about £50 whereas a cut and blow dry with a trainee stylist can start from only £10.

Stop buying Lattes and Cappuccinos – save up to £500
Your daily coffee bought from the many high street coffee shops can set you back about £12 a week. Invest in a thermos mug and make your own. Or drink water and get healthier too!

Try own brands at the supermarket – save up to £1,200
Don’t be a slave to brand names. More often than not you won’t be able to tell the difference. Next time you are at the supermarket pick out 
one or two of their own brands and give them a try.

MBNA is increasing its minimum monthly repayments from 3% to 5% in September. This is a sure sign that the rates squeeze is spreading.

Borrowers with an average debt of £2,300 will see their minimum payment increase by £46 a month.

Only last month MBNA raised its minimum rate from 2.5% to 3%.

It is thought up to a third of credit card users have had their rates hiked over the last 6 months according to latest research.

About 14% of MBNA customers have seen rate increases over the last 12 months and Egg has increased rates for 11% of its customers. It is when 0% deals come to an end that the huge rate hikes are applied. Some have seen rises of 10% - from 14.9% to 24.9% when their 0% deal ended.

MBNA have said not all customers will have to pay the new 5% minimum but did not say how many would be affected.

43% of motorists will have increased bills of £245 by April 2010 and only a fifth of drivers will be better off in the long term.

Ministers are insisting the new measures are aimed at cutting pollution and not to raise revenue. However, experts have calculated that more than a billion pounds extra revenue will be taken by 2011.

Treasury minister Angela Eagle has hinted that drivers may be offered cash by the government to have their old gas guzzling cars scrapped – rather than selling them on to other drivers.

She said experts believed that in 2009-10 “a third of cars will be better off in real terms, and in total, approximately 55% of cars will be no worse off”. However, it is predicted that a little more than 44% - 8.7 million drivers in the six most polluting bands, will pay more.

By 2010-11 it is expected 9.4 million will be paying higher bills.

Lloyds-TSB are mailing debit cards to children as young as 11 who are able to use them to buy goods on the internet without their parent or guardian’s knowledge.

In the past, children have only been able to use their debit cards for cash withdrawals from cash machines or bank branches.

It has been reported that one father has already made a complaint to the bank after his son, who is only 15, used his card to buy cigarettes and a fake adult ID on line.

Lloyds-TSB are saying they openly advertise on their website that these cards can be used for online shopping and it is up to parents to monitor how they are used.

This is a reflection of the difficult trading environment and increased financial regulations which small organisations are struggling to keep up with.

Experts predict this will be the first of a few merger deals to take place as other small societies look at their costs. It’s not just the smaller societies that are under pressure, even larger societies such as the Cheshire and Derbyshire may be open to merger offers after being hit by specialist lending problems and not moving with the times.

The Catholic was set up 50 years ago and specialised with offering loans to single women. These sector minnows usually only have a few hundred borrowers and a few thousand savers.
It is expected the existing customers with the Catholic will be offered cash bonuses for agreeing to the merger – likely to be £100 or £200.

But it is too late to open an account now and get this windfall. Only customers with an account as at 31st May 2008 will be eligible. It is also common practise that only members of the small society in a merger are given a payout.

The prospect of further mergers is likely to see a new round of account opening , known as “carpetbagging”, as people speculate which societies may be in line for a merger.

Savers can become members of most societies with a deposit of just £100 but some may have restrictions such as only accepting local residents. Most also require savers to sign away any rights to windfalls resulting from demutualisation for the first 5 years, but this sign away does not apply to merger bonuses.

Experts believe it is due to the long awaited warm weather which finally arrived. It was the hottest May since records began and saw sales in beachwear, barbeques and garden furniture soar.
Summer t-shirts, dresses and sandals were big sellers. Computer games and consoles, especially Wii Sports shot of the shelves. IPods and flat screen TV’s were also big sellers.

Statisticians were very surprised by the results and had to double check their findings. Economists were said to be staggered by the reports as this surge in spending what not as the market expected.

Food was up by 3.3%, clothes by 9.2% and household goods by 2.6%.

However the Government has stressed this is not the start of the retail recovery. With inflation on the increase and house prices on the fall there will be less for consumers to spend and we will all have to tighten our belts.

The Consumer Prices Index (CPI) rose by 3.3% in May which is up from 3% in April – the fastest rate since the CPI measure began in 1997.

The largest contributor to consumer inflation is the higher price we are paying for our food; mainly meat products and vegetables and non alcoholic drinks. Closely followed by higher energy bills (up 10%), the cost of foreign holidays and the cost of books and stationery is also up.

If prices continue to rise we are likely to see inflation going over 4% in the second half of the year. Experts predict inflation will peak towards the end of the year and gradually fall throughout next year.

The Bank of England is unlikely to cut interest rates until the uncertainty over inflation is more stable.

The Government are advising people over high wage increases, saying anything near or over the rate of inflation will damage people in the long run.

One in ten of us admits to having no idea how much debt we are in whilst one in five of us admits to only planning our finances once every six months or less. More alarming perhaps, is that a whopping 74% of us don’t actually know how much we owe.

Managing Director of CreditExpert.co.uk, Jim Hodgkins said “it’s alarming to see that while almost the entire UK population think they are on top of their finances, many aren’t. Keeping track of your commitments and planning for the future are always important and in addition to checking bank and credit card statements, you also need to regularly check that your credit report is accurate and up to date”.

He added “this research provides a worrying insight into people’s perceptions of their finances. It is clear that many of us are not as familiar with our finances as we believe”.

Not only are missed payments recorded on your credit report and will affect your future credit applications, but you may face a penalty imposed on you by the lender or bank if you have failed to plan accordingly.

Alan Stubbs, a student customer of high street bank Halifax complained: “I forgot about a direct debit the other week and I ended up with a £28 charge on my account because I didn’t have the money in the bank to cover it”. He continued “but that took me over my overdraft so I got an extra £15 charge for interest”. That’s a total of £43 charges for being unaware of a financial commitment. Asked whether this was the first time he had been charged in this way, Mr Stubbs replied “Nah, it happens all the time”.

It makes no sense at all the pay charges on a bill you are going to pay anyway. With a little bit of time and effort; checking your credit report, reading through your bank/credit card/loan statements and knowing when your payments are due, you can avoid any charges, penalties or black marks next to your name.

The price of oil and commodities is still rising, house prices are falling and this is hurting the UK economy. It is felt that the MPC needs to wait and see whether the effect of food and fuel prices and high inflation, will lead to an increase in wages and reduced spending in other areas before they will change interest rates.