Almost a third of UK couples who argue over finances have had more frequent arguments as a result of economic turmoil, showing that money worries are fraying relationships more than ever.

But there is some good news – nearly one in five couples say that the recession has prompted them to talk more openly about their finance, according to research from online payment provider PayPal. This willingness to talk openly about money will almost certainly help the one in ten couples who have seen the main breadwinner in their relationship change in the last twelve months. Almost two thirds of these couples have changed breadwinner because one of them has either lost their job or had a pay cut, while over a third have switched places following a new job, promotion or pay rise.

Carl Scheible, managing director of PayPal UK, says: “As the recession becomes reality, British couples are facing new challenges within their relationships. It’s good to see that difficult times are prompting us to talk about money, as it’s far easier to cope with financial worries when we’re open with each other about them. It’s also good to see that even in these uncertain times money is causing fewer arguments within couples in Britain than in many other countries, such as the United States and Australia.”

This research proves ones thing – talking about your money problems is much more constructive and rewarding than bottling them up. If you are hiding problems, talk to your partner and your friends, but also get some professional financial advice. Things might look black now, but once you get things out in the open you will suddenly realise you have options to solve your problems.

Remember, a problem shared is a problem halved – an adage that is important during this difficult time.

SOURCE: PayPal, 10/02/09

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One growing way to unlock equity in your home is to use ‘sale and rent back’ schemes, where unregulated firms buy people’s homes and rent them back to them to help them escape from their debt problems – this is something that should be viewed with extreme caution.

The Government last week launched an initiative to regulate the practice of sale and rent back, but there are still many problems associated with it. Some people are entering into sale and rent back transactions when this is not necessarily the best option for them – numerous tenants have being evicted as they are unable to afford the rent agreed. Also there is a lack of security for people entering into these agreements – landlords are imposing huge rent hikes resulting in tenants losing their homes when they then default on their payments

If this is something you have considered, or something that someone has approached you with, you must remember that there are options available to you. This might include negotiating with your current mortgage provider, selling your property on the open market, taking out a secured loan or even for older home owners using a regulated equity release product

Dean Mirfin, business development director at Key Retirement Solutions says: “In light of the current economic climate many consumers continue to struggle with their finances, and the danger of unscrupulous companies has never been so apparent.

“However, consumers should be aware that while the government has announced plans to regulate the sector full regulation is not expected until the second quarter of 2010. Sale and rent back is not the only answer for those looking to raise some extra cash. For consumers who are looking to release money tied up in their homes it is vital that they seek independent financial advice, this is to ensure they are aware of, and fully understand all the options available to them before entering into any agreement.”

SOURCE: KRS, 06/29/09

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The Government has vowed to get tough on unsecured debt as it calls the credit card firms to heel.

Both the secretary of state for business Peter Mandelson and consumer affairs minister Gareth Thomas have called the credit card industry forward to make sure unsecured borrowers are not getting an unfair deal when it comes to credit card rates.

Sean Gardner, director, MoneyExpert.com, says: “The credit card market seems to have been operating on a different planet as far as rates are concerned for some time now and given the recession worries it’s no surprise the Government has taken this step.”

Moneyexpert,com has found that the average typical APR for credit cards in November 2007 was 16.8%, when Base rate was at 5.75%. But now, when Base rate is at just 3% SVR averages are up to 17.59%.

Gardner adds: “Despite a considerable drop in the Bank of England’s rate over the last 12 months the average APR on cards has gone up by over half a percent; pretty galling for borrowers already paying interest way above base rate.

“With providers now increasingly pulling 0% balance transfer deals there’s a real worry that the wheels could fall off for those stuck with credit card debt. Hopefully, though, this Government move will signal a more realistic approach to lending and ultimately a better deal for consumers.”

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.