According to the group - which represents firms responsible for 98 per cent of mortgage lending in Britain - the number of approved loans for house purchasing fell from 47,200 in February to stand at 46,500 at the end of March. Compared with last year’s results, this amounts to a 48 per cent drop in the number of mortage loan approvals, of which there were 89,000 in March 2007. The group attributes the fall in part to a shortage of available mortgage funding and a wider lack of availability of credit in the global market.

The CML predicts that the number of loan approvals will continue to fall in the coming months in line with recent approval statistics released by the Bank of England. In quarterly results, the council reports that overall gross mortgage lending in the UK stood at 75 billion pounds in the first three months of the year, down from 83.9 billion pounds during the same period in 2007. The number of loan approvals for first-time buyers also fell one per cent from last year over the quarter, with 17,800 new mortgages issued. Meanwhile, lending for those moving home also fell by nearly half, with 28,700 approved during the month, down from 56,300 in March 2007.

However, there was an increase in the number of other loan approvals such as buy-to-let and further advances, while the remortgaging market as a whole was said to have been fairly resilient to the restrictions imposed by a constrictive economic environment. The group asserts that 33.3 billion pounds worth of remortgaging deals were struck during the first quarter, accounting for 44 per cent of total gross lending during the period.

First-time buyers were said to have borrowed an average of 89 per cent of their property’s value, while those moving home were found to have taken out a loan equivalent to 72 per cent of the value of their new property.

CML director general Michael Coogan said: “House purchase transaction volumes will continue to deteriorate in the coming months as recent approvals data from the Bank of England has shown. Since the introduction of the Special Liquidity Scheme, there has been a slight improvement in credit market conditions with the London Inte-bank Offered Rate (libor) moving in a more helpful direction. But libor still remains high relative to the Bank rate and any improvement in credit market conditions will take time to feed through into the mortgage market.”

The Special Liquidity Scheme allows lenders to swap their high-quality mortgage-backed securities for UK Treasury bills, which is seen as a more stable asset. It was introduced to improve the liquidity position of the UK banking system.

CML’s March mortgage lending figures follows a recent warning from price comparison service MoneyExpert, in which it was suggested that those who have large credit card debts may find themselves in trouble in the coming months as creditors look to minimise their exposure to debt. For those who are having difficulty keeping up with repayments, a debt consolidation loan may be of assistance in allowing people to reorganise their monthly outgoings.

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Such is the assertion of Halifax Home Insurance in which a study reveals that the typical British household contains 1,986 pounds worth of jewellery, with just over one in ten (11 per cent) respondents owning rings, necklace, earrings and other items with a combined value of more than 5,000 pounds. Overall, the country was indicated as having finery to the total value of 52 billion pounds.

Research from the financial services firm also showed that those living in Milton Keynes own the most expensive amount of jewellery on average. People from the Buckinghamshire town have possessions costing a typical 3,186 pounds, compared to the 3,001 pounds in finery consumers in Preston own. London, Glasgow, Stoke and Aberdeen were among the rest of the top ten places in Britain with the costliest jewellery collections.

For those looking for an effective way in which to fund the purchase of an expensive piece of jewellery, taking out a personal loan may be recommended.

Martyn Foulds, senior claims manager for Halifax Home Insurance, said; “Our research shows that between us we Brits own a staggering amount of jewellery and enjoy making a statement by wearing valuable items when out and about. However, it seems many people with expensive jewellery collections may be selling themselves short by not getting their articles valued fully and insured for the correct amount.”

“We would advise anyone wearing particularly valuable items outside the home on a daily basis to make sure that they are fully insured for loss, damage or theft when outside their property,” Mr Foulds added.

The study also showed that people in Northampton are most likely to show off their jewellery collection. According to Halifax, the average consumer in this area wears 469 pounds worth of items everyday, with a total of 2,627 pounds kept inside the typical property in the town. Meanwhile, people living in Glasgow and Wrexham wear an average of 468 and 460 pounds worth of jewellery on a daily basis.

With significant numbers of consumers owning costly amounts of jewellery, Halifax advised people to their particularly expensive items valued. Of the five million Britons owning more than 5,000 pounds of finery, more than a third were indicated as never having gone to a jeweller to have such items inspected. A further ten per cent were revealed to not have done this for at least a decade. Meanwhile, just over a quarter of respondents were revealed to have failed to notify their insurance provider after getting their jewellery valued. It was stated that having valuations on a regular basis can help consumers make an accurate insurance claim based on the current worth of their jewellery. Those looking to file a claim were also advised to keep photographs of their items.

People looking to buy an expensive piece of jewellery, whether it is a designer watch or pearl earrings, might wish to consider getting a personal loan. By getting a low-cost loan, it may be possible that borrowers can purchase an item quickly and are left with an affordable level of repayment. The additional monetary assistance which a loan provides could also help people to take out comprehensive insurance policy.

Getting a loan for the purposes of buy a ring in addition to obtaining sufficient insurance might be recommended to those looking to get married. A recent study by Abbey Insurance indicated that 42 per cent of people purchasing engagement rings do not have adequate cover, with 15 per cent unsure whether or not they have insurance for such an item of jewellery.

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Having launched its Mind Week on Saturday May 10th, the group has published the results of a study suggesting that 91 per cent of respondents felt that concerns about debt had worsened their mental health. A further 87 per cent noted that they had to rely on credit to cover the cost of basic purchases such as food and energy spending. As the credit crunch tightens its grip and the costs of living escalate, the charity asserts that 50 per cent have had to forego food and heating in an effort to reduce the constraints that today’s economic climate has put on people’s spending.

For those who hold concerns about the stability of their finances, debt consolidation could help alleviate fears by allowing monthly outgoings to be managed more effectively. By spreading the costs of payment over a longer time period, people may find that they have sufficient funds to cover the costs of everyday living expenses without turning to additional credit for assistance. Choosing such a loan may be of particular interest to the 83 per cent of people who said that they had been harassed by creditors during a period of illness.

The charity asserts that its In the Red: Debt and Mental Health study is the first to specifically examine the effect that financial concerns can have on mental wellbeing. In conducting the survey, Mind interviewed 1,800 respondents throughout the UK, 924 of whom said that their level of debt was felt to be problematic. The report also finds that those with pre-existing mental health problems are almost three times as likely to be in debt, often due to an inability to work arising either from social stigma or ill health.

Other statistics released by the organisation found that of those with problem debt, 71 per cent ran out of money every week or most weeks, while 92 per cent of people said that they had been unable to socialise due to constraints on their spending. Over 50 per cent of the country was also reported to be living on a weekly household income of less than 200 pounds - a figure which the government has defined as the poverty line.

Mind’s chief executive Paul Farmer said: “UK personal debt stands at a staggering 1.4 trillion pounds but the real cost here is that on our mental health. Money worries aren’t just keeping people awake at night; they are causing high levels of stress, depression and in some cases self harm and suicidal thoughts. At a time when people across the country are anxious about their finances, debt-depression is a real and growing concern. People living with mental health problems are particularly vulnerable to being trapped in a cycle of debt and poverty. With many unable to work due to ill health, Mind has found that people are becoming dependent on credit to pay for everyday essentials.”

For those looking to alleviate the pressures that debt is putting on their lifestyles, a consolidation loan may provide both peace-of-mind and greater financial stability. A recent study by Scottish Widows has found that a number of older people are looking for assistance with their finances, with many parents turning to their children for loans to help cover living costs.

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Covering the first quarter of 2008, the figures show that the total number of mortgage possessions orders totalled 27,350, while landlord possession claims rose ten per cent from 28,503 to 37,221. While the MoJ figures record how many proceedings have been issued, they do not accurately reflect the number of completed repossessions that have occurred. The Council of Mortgage Lenders produces such figures on a bi-annual basis, with the last report published in February indicating that 13,500 houses were taken into possession during the second half of 2007.

The Royal Institution of Chartered Surveyors have responded to the statistics by suggesting that more people may find themselves at risk of repossession in the coming months as cheap mortgage deals become more difficult to obtain. The group predicts that the total number of repossessions will reach around 43,000, a figure still below the high point of 76,000 recorded in 1991. For those who are struggling to meet mortgage repayments due to rising living costs and other expenses, a homeowner loan may be of assistance in helping people to organise payments on items such as credit cards and utility bill spending.

Following the publication of the MoJ statistics, the National Consumer Council (NCC) has responded by urging mortgage lenders to do more to assist those who are struggling with mortgage repayments.

“Lenders must do more to help homeowners before they get into debt by targeting vulnerable customers, such as those coming off fixed-rate deals. We would like to see them offer a range of tailored solutions to help borrowers in difficulty and not rush to use third-party debt collection agencies or court action,” the group said.

At the end of May, the NCC will offer guidelines to the Financial Services Authority and mortgage lenders on how best to support consumer interests are protected in a worsening housing market scenario. The report will be carried out in cooperation with the National Inclusion Centre.

In an effort to support homeowners struggling with debt, the Treasury has today unveiled a new package of financial assistance that will include an additional nine million pounds in funding for third sector partners such as the Citizen’s Advice Bureau (CAB). The CAB offers a free face-to-face advice service on a range of financial matters including mortgage, personal loan and credit card payment management. In a statement, the Treasury also said that the package would extent free legal support for those facing possessions orders from county courts across England, as well as providing a strengthened National Housing Advice Service. Housing ministers and Treasury representatives will meet next week with third sector debt advice partners to discuss further methods of assisting consumers who are struggling with mortgages, loans, credit cards and other areas of debt.

The possession statistics announcement follows recent research from the British Bankers’ Association which suggest that the number of successful mortgage applications fell by 50 per cent during March this year.

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According to Sean Tipton, press officer at the organisation, travelling abroad either on business or pleasure without first taking out insurance would be “extremely foolish”. He added that the risks associated with travel would be magnified for those who planned to take adventurous breaks.

For those who are already struggling with the costs of travel, Mr Tipton asserted that while a saving of 30 or 40 pounds could be made, uninsured travellers could end up being forced to sell their house to cover the costs of medical expenses in the event of an accident. Consumers eager to ensure that they travel in safety may wish to consider taking out a personal loan to meet the full costs of taking a dream holiday while protecting against nightmare scenarios.

“The worst case scenario is that if you broke your leg skiing in America and you didn’t have insurance then you would be talking about a bill for tens of thousands of dollars. If it was a very bad break then they might decide that you should be flown back to the UK in an air ambulance and then you’re getting into a hundred thousand potentially. [If you didn’t take out insurance] you would save 30 or 40 pounds for an insurance policy but you run the risk of having to sell your house to pay the bill and travelling uninsured is just a very foolish thing to do to,” Mr Tipton explained.

Research by the Foreign and Commonwealth Office has shown that travellers from both younger and older generations are choosing to take adventure holidays. Statistics from the government body suggest that 17 per cent of 18 to 35-year-olds took a jet-skiing holiday and 14 per cent chose to go rock climbing or mountaineering at the last minute. Meanwhile, it was also reported that 20 per cent of over-55s took risks on holiday that they would not consider at home. Furthermore, the office revealed that 65 per cent of people in this age bracket travelled without travel insurance protection. It was also shown that older generations who did take out cover while travelling were three times more likely to make a claim than younger age groups. Average insurance costs for the older age bracket were said to be around three and a half times more expensive than the usual policy for someone aged 18 to 24.

For those struggling to meet the cost of an inflated travel insurance policy, a personal loan may be of assistance in providing the capital to allow people to take a holiday with the peace of mind provided by robust insurance protection.

In other holiday news, it was revealed last month by MyChild that summer vacations remain sacrosanct for many British families despite growing concerns about being able to manage various areas of personal expenditure.

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In newly-released statistics, it was shown that just 14 per cent of people openly discuss their personal level of debt - the same proportion who readily talk about stocks and shares investment. The only area in the top ten most discussed financial matters to appear more taboo is the amount people have borrowed through items such as credit cards and personal loans. At the other end of the scale, it was revealed that 60 per cent of Britons are happy to discuss who they bank with, while 38 per cent will divulge whether or not they have a pension. Mortgages were a slightly less popular talking point, with 29 per cent of people said to discuss their deal, while 26 per cent would comment on how much their house is worth.

The report split respondents in to two age strata and revealed that overall, under-50s are more happy to discuss financial matters than older generations, with many people over the age of fifty only discussing such subjects as debt, personal loan repayment, mortgage deals and bank account type when it was absolutely necessary. Of the 32 per cent who responded that they would not discuss any such topics openly, 50 per cent attributed this to the belief that such matters should remain private, although nine per cent commented that they would be reluctant to talk about such topics because of a feeling of embarrassment concerning their financial stability.

Of those who were happy to discuss money matters, nine out of ten most commonly talked to their partners, with older generations said to keep such discussions within the family, while under-50s commonly talked about their finances with friends. In terms of seeking advice, people were found to be most likely to look to a financial adviser, although the younger age group was said to be more likely to take suggestions from their parents than a bank manager. Older generations meanwhile were said to keep more faith in the professionals than they do friends or colleagues.

Andrew Goodsell, chief executive at Saga Group, commented: “Talking about your finances to your peers can be a useful exercise, however taking financial advice from friends, colleagues and even family, whilst with best intentions, is often ill advised. There is no substitute for professional advice as the recommendations given need to be as individual as we and our finances are.”

The least discussed area of personal finance was annual salaries, with both ages reluctant to speak to friends about how much they earn. While 87 per cent of partners believing they know their other half’s earnings, just 27 per cent of people said the same of their friends.

In other news, it was revealed by the Holiday Inn last month that for the over-50 age group, a growing number of couples are looking to take romantic breaks following on from completed mortgage repayments and a lessened financial responsibility for children who have moved away from home.

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According to David Kuo, head of personal finance at the firm, today’s banks are operating in a more cautious economic environment and as a result are more reluctant to lend. unsecured credit was identified as an area of financial backing particularly constricted by the global uncertainty concerning economic stability. He added that while most banks do want to issue credit cards, there is a limited amount of money to lend. His comments came in response to figures published by Moneyexpert recently suggesting that one in fourteen consumers who had applied for credit in the past six months had been refused - a total of 3.24 million people throughout the UK.

Offering advice to those looking to obtain a loan or credit, Mr Kuo commented that it was important to assess objectively whether a loan is likely to be successful, with likely causes of rejection such as poor credit history or high levels of personal debt identified as an important factor to consider when making applications.

“Quite often you will know why you’ve been turned for a credit card and the answers are quite straightforward. [It could be] because you have excess amounts of debt compared to your income; that you have previously defaulted on credit card payments and maybe you have defaulted on payments other than your credit card bills,” he explained.

He added that it is important to find ways of repaying the debt before making a credit card application, with credit reports noted to be a valuable tool in assessing the health of personal finances and the likelihood of being accepted for a credit card. For those who are struggling with debt and have a poor credit history, a bad credit loan may be of assistance in helping to take control of personal finances, providing the liquidity to begin making regular payments towards debts and improve credit ratings.

Advising those looking to make an application, he stated that it is beneficial to think about personal finance from the perspective of the lender, with poor repayment history and large levels of personal debt said to be particular areas of concern for financiers. If this sort of examination is not made prior to an application, it is more likely that people will receive a refusal and damage their credit rating further.

Concluding, Mr Kuo commented: “People need to be very mindful of because every time you are turned down for a credit card application it counts against you on your credit reference. If people are going to be applying for a credit card then they need to make sure that they are almost certainly going to get it before they apply for it.”

Elsewhere, it has been revealed recently by financial services firm moneysupermarket that a growing number of Britons are racking up increasing debts in pursuance of lifestyle habits that are difficult to afford. According to the group, more than 2.7 million people are using personal loans to cover the costs of “keeping up appearances”.

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Price comparison site uSwitch has released figures indicating that the number of individual insolvencies has risen 1.7 per cent since the last quarter of 2007. According to the company, just under 300 people declare themselves bankrupt each day, and 74 homes are also repossessed daily. With such numbers suggesting increasing financial difficulties for many homeowners, increasing numbers could find that they might benefit from consolidation loans.

Should current rates and conditions persist, as many as 104,000 people could become insolvent this year, according to uSwitch’s figures. Factors impacting on people’s ability to service their debts are identified as the increasing cost of living, estimated to have risen by nine per cent over the last year. Such costs are not being matched by salary rises which have been hiked by only 3.4 per cent in the same timeframe.

The company adds that consumer debt has reached 1.4 trillion pounds and increases by 1 million pounds every five minutes. With so much debt being accumulated and not enough uptake of debt consolidation and similar moves to address the issue, uSwitch asserts that rising insolvency figures are “inevitable”.

Ann Robinson, director of consumer policy at the price comparison and switching service, says: “It’s worrying that so many people are resorting to individual insolvencies, be it an IVA or bankruptcy, to resolve their personal debt problems. These measure should always be the last resort for anyone with financial problems as they have a very serious impact on people’s credit histories and their ability to borrow in the future. In the case of bankruptcy, it could also impact on employment prospects.”

Those who are aware of high debt levels owed to a number of lenders keen to avoid insolvency might find that a consolidation loan helps to alleviate the strain on their finances. Such loans can make debts easier to manage by combining multiple requests into a single monthly payment, helping consumers to regain their financial feet.

Ms Robinson asserted that the costs impacting upon Brits’ pockets were rising in many different areas of life, from home heating energy to mortgages and even fuel. “If people find themselves in financial difficulty the worst thing they can do is ignore the problem and hope it goes away,” she states. “It won’t. Banks have a duty to help people in financial hardship and free debt advice is readily available from organisations such as the Consumer Credit Counselling Service, National Debtline and Citizen’s Advice. I would strongly urge people to start taking action before they reach financial breaking point.”

Last summer, one industry expert observed that a worrying trend was developing whereby bankruptcy was losing its stigma. Duncan Philp, a consultant for Macbeth Currie, stated that many young entrepreneurs considered early bankruptcy to be a “badge on their collar” - a theme matched by their failure to control their personal finances, for instance by taking out a personal debt consolidation loan in good time to address a difficult financial situation.

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So claims MoneyExpert, which believes that the credit crunch is driving lenders to restrict the borrowing options of those they believe may not be able to address their debts. It observes that the cost of maintaining such credit cards - rather than choosing possible alternatives such as debt consolidation - has increased over the last six months and may well continue to do so.

The Retail Bulletin reports that although the Bank of England’s monetary policy committee has effected three quarter per cent reductions of the base rate in the last few months - from 5.75 per cent to five per cent - the credit crunch means that customers with borrowing accumulated on credit cards are nonetheless suffering.

According to MoneyExpert figures, the standard annual percentage rate on purchases made with a credit card has risen by more than half a per cent in the last six months, from 16.56 per cent to 17.12 per cent. Furthermore, those shifting debt from one card to another as balanace transfers have seen interest rates soar by 0.83 per cent from 15.12 per cent to 15.95 per cent.

Consumers who do find that they are juggling debts on a number of credit cards and loans may find that a consolidation loan could help them to address their debts. By combining debts into one monthly payment, consumers may be able to regain control of their financial situation and begin to pay off the money that they owe. Such a move could also improve the clarity of a debtor’s situation, with a clear debt-free date established as a result.

The news follows a recent debt monitor published by Chiltern which reveals that the average UK debtor is 44 years old and owes varying sums to eight creditors. It reports figures described as “encouraging”, observing that the average amount owed is currently 400 pounds lower than it was at the beginning of the year. Chiltern believes that the change in the way Britons are approaching their debts results from a general recognition of tightening financial circumstances and the need to minimise borrowing. One way of achieving such an aim is to investigate debt consolidation loans.

The company advises anyone with a number of debts to draw up a budget, calculating incoming funds and outgoing financial responsibilities. Should the sum needing to be repaid on a monthly basis exceed that coming in, then it is necessary for the consumer in question to seek financial assistance, such as financial advice from an independent source.

Chiltern’s assertions reinforce earlier observations from the Co-Operative Bank, which states that not enough people are undertaking appropriate financial planning. It stated in particular that two-thirds of women have not taken the time to set up a tax-efficient savings account, amounting to 20.3 million people. The company described the demographic as the “biggest losers” when it came to tax-free savings.

Those consumers keen to save but currently struggling under the burden of multiple debts might consider a debt consolidation loan as a potential solution, putting them back on track to be in a position to save.

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Cliff D’Arcy, a personal finance commentator, has stated that debt in itself is not the root of such young people’s problems - it is overspending that causes them to build up their borrowing until it is no longer manageable.

To avoid getting into a situation where a consolidation loan might be necessary, he suggests avoiding impulse buying and ensuring that money is spent as efficiently as possible.

“Try and get more bang for your bucks,” Mr D’Arcy explains. “Instead of going out on impulse and buying, sit down and try and make the most of your money. Try and shop around online – you can get 30 to 50 per cent discounts – haggle, bargaining, look around rather than just buying the first thing you see. Maybe you don’t need it today and next week and at half the price, it’ll be better.”

Anyone who has found that debts on credit cards and loans have already been accumulated to the point where they are no longer able to service them might consider debt consolidation. By combining existing debts into a single lump sum it is possible that such borrowers could start to repay their borrowings, putting them back on the path to financial stability,

A second danger that the writer identifies is failing to keep a close enough eye on overdrafts. By spending beyond the limit of an overdraft, consumers can end up paying not only for their purchase but also whatever charge the bank elects to impose for breaching the agreed limit. Mr D’Arcy, who writes on occasion for the Motley Fool, remarks that “bling-itis” can be identified as a further cause of debt among young people, as they feel that they have to purchase flashy items to keep up with their peers. Gadgets, clothes and cosmetics can make individuals feel good in the short term but their high cost can lead to spiralling debt, he warns. “Two-thirds of … young people have admitted that they are still trying to clear credit card debts that they built up two years ago. This ‘Bling-itis’ is edging them towards bankruptcy.”

His observations follow recent research released by mobile banking firm Monilink which found that more than one in five young people prefer to spend their money on treats rather than saving it. Additionally, 56 per cent believe that they are judged on their appearance and possessions, while more than one in five (22 per cent) find repaying debts such as loans and credit cards a strain.

The debt consolidation loan route has recently been described as a “welcome lifeline” for those whose spending has resulted in debts that they are struggling to manage. Head of personal finance at the Motley Fool David Kuo has said that applying for such a loan can be instrumental in putting those with much borrowing back on the road to financial recovery.

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