If you saw “Newsnight” yesterday, you will know that the Chancellors mini-budget has caused great consternation and mixed opinions.
Alistair Darling may have opened a “Can of political worms” when he unveiled his proposals to the nation yesterday. The main question now is, “Will you be better or worse off because of it?”
Only time will tell if the so called “Drastic measures” are the right ones or far reaching enough to provided the desperately needed kick-start to our economy. A reduction in VAT is unlikely to make a massive difference to the general public as it will not necessarily all be passed on by way of lower prices. The general consensus though is that it will still help by making small businesses more profitable and helping to keep them afloat, thereby helping to shore up the economy and save jobs.
Increased national borrowing will mean increased national debt and therefore lead to increased taxes at some stage in the future. Talk is of this happening in 2010, but there can be absolutely no guarantee that any of the stimuli have worked by then, if at all. If not the level of borrowing will leave an enormous “Financial Black Hole” which will leave the nation indebted for many years to come.
Surely we should go back to basics here and rather than trying top “Borrow our way out of debt” we should be looking at packages that will stimulate cash-rich sustainable growth that is not dependent on foreign, particularly tiger economies. We need real change for a real solution, not more “Whitewash” which doesn’t even begin to conceal the cracks.
Reducing the tax burden for the lower paid will inject more cash into the economy. Reducing the level of national borrowing will ensure a healthier chance for growth and success for our children. This government have for long enough been talking about the dangers of living beyond your means and stretching credit too far, but isn’t that exactly what they are now advocating?
If we are to grow stronger through these troubled times we need a bullet-proof plan for generating and sustaining a realistic level of growth and investment. What we do not need now successive Governments have “Sold off all the silverware” is to become a nation consumed by the ravages of debt.
We need a change at the top whether it is policy or people. The current system of lumbering from one disaster to another and using rhetoric as a smoke screen and trying to blame everything but themselves has run its course. If Gordon Brown is to remain at the helm he must become a leader of men, not a man on a lead!
If you are suffering from the effects of the credit crunch or by being in debt, you can get free access to debt help tools on www.sterlingtrust.org.uk - everything you need to get out of debt.
Friday 28 November 2008
Tuesday 7 October 2008
Sterling Trust Debt Help - 1 in 5 Britons struggle to pay debt & bills according to You Gov Survey
[YouGov is an independent research company commissioned by the UK Government to carry out the survey in association with R3 - the UK trade body for Insolvency professionals. It has confirmed what many in the industry fear - that unsecured debt is an increasing problem in the UK, for an increasing number of people.]
There have been three core causes highlighted as contributory factors in the massive escalation of personal debt, including; ‘Misuse of credit cards’, ‘borrowing without thinking about how to repay the money’ and ‘irresponsible lending by credit providers’
At Sterling Trust, we hear constantly from people who have been forced to subsidise their living costs due to inadequate wages & increasing bills. This is not a new phenomenon, rather it has been ongoing for the last few years, in fact since the introduction of the "National Minimum Wage" many years ago.
The National Minimum Wage has actually been counterproductive in many areas, actually reducing workers' wages to a socially acceptable minimum, and hampering calls for regular increases in line with, or above inflation. Those who chose to abuse the system previously, continue to do so and it is therefore highly questionable how much benefit has been gained since it's introduction.
We have been inundated by enquiries since launching the self-help website and are delighted to think it has been a success in helping people to overcome their financial difficulties. One of the main areas for concern is the way that people are allegedly bullied into making repayments to their credit card, loans and other forms of unsecured debts in preference to their essential living expenses, such as mortgage, rent, council tax and utilities etc.
We are calling on the Government to clamp down on the way creditors and their collection agents represent themselves and the way they conduct telephone conversations. A lot of the letters they send out are also deliberately designed to be misleading and frighten people into making payments, which actually contravene the Administration of Justice Act 1970, for which they can be held accountable in a court of law.
The whole of the debt industry needs clearing up and legislation should be introduced to protect clients more when they get into difficulties. Although most lenders say they want to help, the reality is often quite different. The bank who likes to say "Yes" is apparently now saying, "No. Clear off."
The whole banking system is in total freefall and as a result nobody can predict what will happen going forward. With all the mergers and takeovers currently happening in the UK and more undoubtedly around the corner, massive changes are sure to happen fairly soon. It remains to be seen how this will all unfold over the coming weeks, months and years.
One thing is absolutely certain, you cannot possibly borrow your way out of debt and expecting to do so is madness. Historically, this is what "Responsible Lenders" have been advising us to do, in search of bottom-line profits. "Consolidate your debts with a home-owner loan" - sound familiar? So just how "Responsible" does that actually make them?
If you are having difficulty in repaying your debts or are getting into arrears with your other bills because of them, visit us at http://www.sterlingtrust.org.uk and see if we can offer you a solution. We provide the website and all the forms, letters and instructions you should need to manage your debts totally free of charge.
The website is undergoing continual development (funds allowing!) to try and improve the service and make it easier to use, so if you have any useful suggestions on how we might improve it, please contact us. This is your site so please feel free to make the most of it. We have a Live Chat support feature, plus email and telephone support, so please, get in touch if you have any questions.
YouGov is an independent research company commissioned by the UK Government to carry out the debt crisis survey quoted.
Mike Sterling is a charity debt management specialist, with over 20 years experience dealing with debt problems.
There have been three core causes highlighted as contributory factors in the massive escalation of personal debt, including; ‘Misuse of credit cards’, ‘borrowing without thinking about how to repay the money’ and ‘irresponsible lending by credit providers’
At Sterling Trust, we hear constantly from people who have been forced to subsidise their living costs due to inadequate wages & increasing bills. This is not a new phenomenon, rather it has been ongoing for the last few years, in fact since the introduction of the "National Minimum Wage" many years ago.
The National Minimum Wage has actually been counterproductive in many areas, actually reducing workers' wages to a socially acceptable minimum, and hampering calls for regular increases in line with, or above inflation. Those who chose to abuse the system previously, continue to do so and it is therefore highly questionable how much benefit has been gained since it's introduction.
We have been inundated by enquiries since launching the self-help website and are delighted to think it has been a success in helping people to overcome their financial difficulties. One of the main areas for concern is the way that people are allegedly bullied into making repayments to their credit card, loans and other forms of unsecured debts in preference to their essential living expenses, such as mortgage, rent, council tax and utilities etc.
We are calling on the Government to clamp down on the way creditors and their collection agents represent themselves and the way they conduct telephone conversations. A lot of the letters they send out are also deliberately designed to be misleading and frighten people into making payments, which actually contravene the Administration of Justice Act 1970, for which they can be held accountable in a court of law.
The whole of the debt industry needs clearing up and legislation should be introduced to protect clients more when they get into difficulties. Although most lenders say they want to help, the reality is often quite different. The bank who likes to say "Yes" is apparently now saying, "No. Clear off."
The whole banking system is in total freefall and as a result nobody can predict what will happen going forward. With all the mergers and takeovers currently happening in the UK and more undoubtedly around the corner, massive changes are sure to happen fairly soon. It remains to be seen how this will all unfold over the coming weeks, months and years.
One thing is absolutely certain, you cannot possibly borrow your way out of debt and expecting to do so is madness. Historically, this is what "Responsible Lenders" have been advising us to do, in search of bottom-line profits. "Consolidate your debts with a home-owner loan" - sound familiar? So just how "Responsible" does that actually make them?
If you are having difficulty in repaying your debts or are getting into arrears with your other bills because of them, visit us at http://www.sterlingtrust.org.uk and see if we can offer you a solution. We provide the website and all the forms, letters and instructions you should need to manage your debts totally free of charge.
The website is undergoing continual development (funds allowing!) to try and improve the service and make it easier to use, so if you have any useful suggestions on how we might improve it, please contact us. This is your site so please feel free to make the most of it. We have a Live Chat support feature, plus email and telephone support, so please, get in touch if you have any questions.
YouGov is an independent research company commissioned by the UK Government to carry out the debt crisis survey quoted.
Mike Sterling is a charity debt management specialist, with over 20 years experience dealing with debt problems.
Wednesday 17 September 2008
Banks in turmoil as HBOS falters. Lloyds TSB rescue package proposed to save it’s future
The financial world has taken a series of massive beatings over the last week and it looks as though more of the chaos is coming home to roost. Lloyds TSB is in negotiations to bail out the largest UK mortgage lender HBOS.
HBOS or Halifax Bank of Scotland group have been caught napping by the backlash of the ongoing global credit meltdown and are currently negotiating a takeover and rescue package with Lloyds TSB. After seeing their share value go into freefall and fully aware that confidence is at the lowest ebb for several decades, the frantic powers that be have sought a saviour for their ailing giant.
The trouble is now that people, like lemmings are looking for the nearest cliff edge. Things are very serious, of that there can be no doubt, but fleeing in panic is not generally the best way to control a situation or limit damage! Panic breeds panic. If debt is spiralling, but at the same time getting more expensive, there needs to be long term strategic financial planning, not free for all mayhem.
The Government still seem entrenched in the ethos of live today, pay tomorrow. When are they going to realise tomorrow has already arrived… In fact… It was yesterday! Borrowing more than you can afford to pay your debts, whether secured or unsecured, credit card or loan, Government or consumer, the result is inevitably the same!
The politicians can bluster and pontificate all they like, the fact still remains that they have stripped the asset cupboard bare and burdened the country with unprecedented consumer debt whilst allowing the “Fat Cat” nouveau riche to amass Billions or even Trillions at the cost of the British economy. Capitalism in its truest sense can never work.
Checks need to be put in place to ensure this kind of devastation can never happen again. We have so called financial regulators now such as the FSA, but surely if they are asking the question, “How did this happen/” then they are not worth a damn and have no teeth! We need proper regulation of big business, a properly worked taxation system that puts the emphasis back into looking after those who most need it and storing enough wealth to tide us over in times of trouble.
I don’t know if I can make this any clearer, “Borrowing your way out of debt cannot, has not and never will work ion a Billion lifetimes!” There is a very simple rule that says if you have insufficient funds and need to borrow any amount of money; you will have to repay considerably more than the original amount. Hoping that you may one day be able to is the sole cause of this current crisis.
If people could only learn, individuals and Governments alike, if you can’t afford it; you don’t get it! It’s quite a simple rule and guarantees absolutely and categorically ensures that we could never face the same challenges again in the future. We have some tough choices to make, but the consequences of not taking them don’t bear thinking about.
Free debt help charity that enables anybody with an unsecured debt problem to manage and control it themselves. Simple to use but very powerful and totally free from charge. There are 3 simple steps to debt freedom, take the first one now!
HBOS or Halifax Bank of Scotland group have been caught napping by the backlash of the ongoing global credit meltdown and are currently negotiating a takeover and rescue package with Lloyds TSB. After seeing their share value go into freefall and fully aware that confidence is at the lowest ebb for several decades, the frantic powers that be have sought a saviour for their ailing giant.
The trouble is now that people, like lemmings are looking for the nearest cliff edge. Things are very serious, of that there can be no doubt, but fleeing in panic is not generally the best way to control a situation or limit damage! Panic breeds panic. If debt is spiralling, but at the same time getting more expensive, there needs to be long term strategic financial planning, not free for all mayhem.
The Government still seem entrenched in the ethos of live today, pay tomorrow. When are they going to realise tomorrow has already arrived… In fact… It was yesterday! Borrowing more than you can afford to pay your debts, whether secured or unsecured, credit card or loan, Government or consumer, the result is inevitably the same!
The politicians can bluster and pontificate all they like, the fact still remains that they have stripped the asset cupboard bare and burdened the country with unprecedented consumer debt whilst allowing the “Fat Cat” nouveau riche to amass Billions or even Trillions at the cost of the British economy. Capitalism in its truest sense can never work.
Checks need to be put in place to ensure this kind of devastation can never happen again. We have so called financial regulators now such as the FSA, but surely if they are asking the question, “How did this happen/” then they are not worth a damn and have no teeth! We need proper regulation of big business, a properly worked taxation system that puts the emphasis back into looking after those who most need it and storing enough wealth to tide us over in times of trouble.
I don’t know if I can make this any clearer, “Borrowing your way out of debt cannot, has not and never will work ion a Billion lifetimes!” There is a very simple rule that says if you have insufficient funds and need to borrow any amount of money; you will have to repay considerably more than the original amount. Hoping that you may one day be able to is the sole cause of this current crisis.
If people could only learn, individuals and Governments alike, if you can’t afford it; you don’t get it! It’s quite a simple rule and guarantees absolutely and categorically ensures that we could never face the same challenges again in the future. We have some tough choices to make, but the consequences of not taking them don’t bear thinking about.
Free debt help charity that enables anybody with an unsecured debt problem to manage and control it themselves. Simple to use but very powerful and totally free from charge. There are 3 simple steps to debt freedom, take the first one now!
Monday 15 September 2008
"Fears for UK mortgages as Lehman collapses"
***NEWS LATEST*** (Courtesyt of www.thisismoney.com)
The fourth biggest investment bank in the world, Lehman Brothers, has announced it is filing for bankruptcy after an eleventh-hour bid to bail it out failed.
Going down: Lehman Brothers is filing for bankruptcy
The 158-year-old Wall Street bank admitted defeat after a weekend of tense negotiations came to nothing and caused turmoil in the global markets.
It came as the firm's rival Merrill Lynch agreed a $50bn takeover deal with the Bank of America, effectively meaning two of the biggest banks in the world no longer exist.
The London Stock Exchange opened down 2.5% this morning and had dropped by almost 150 points within the first few minutes of trading.
Asian markets had already fallen after talks in the US to save Lehman Brothers floundered and it was clear the Treasury would not rush in to rescue it.
Many of the company's 4,000 workers based in London now face the axe and the crisis could spark a cull of tens of thousands of other jobs across the financial sector.
Its demise could also seriously dent pensions, increase the credit crunch squeeze on mortgages and derail the Government's attempts to relaunch the economy.
***More to follow***
The fourth biggest investment bank in the world, Lehman Brothers, has announced it is filing for bankruptcy after an eleventh-hour bid to bail it out failed.
Going down: Lehman Brothers is filing for bankruptcy
The 158-year-old Wall Street bank admitted defeat after a weekend of tense negotiations came to nothing and caused turmoil in the global markets.
It came as the firm's rival Merrill Lynch agreed a $50bn takeover deal with the Bank of America, effectively meaning two of the biggest banks in the world no longer exist.
The London Stock Exchange opened down 2.5% this morning and had dropped by almost 150 points within the first few minutes of trading.
Asian markets had already fallen after talks in the US to save Lehman Brothers floundered and it was clear the Treasury would not rush in to rescue it.
Many of the company's 4,000 workers based in London now face the axe and the crisis could spark a cull of tens of thousands of other jobs across the financial sector.
Its demise could also seriously dent pensions, increase the credit crunch squeeze on mortgages and derail the Government's attempts to relaunch the economy.
***More to follow***
Friday 12 September 2008
Pay Day Loan Moan!
Pay Day loans where you borrow against a post-date wage cheque seem to be gaining in popularity due to the credit crunch. However, the true cost of this type of borrowing could be up to the equivalent of 2000% APR according to a BBC report today
A BBC report today stated that the financial regulators should step in and prevent companies from charging the equivalent of anything up to 2000% APR. The shock revelation shows just how much vulnerable people are being forced to pay, often just to meet day-to-day living costs.
A spokesman from Sterling Trust said, "We may be shocked at the level of repayments, but are not surprised to find some companies are profiteering at the expense of the most vulnerable members of the public. We take exception to the fact that they are getting away with it and increasing the burden of misery on those who can least afford it.
Often these loans are taken out simply to heat or light a home, put food in the cupboard, pay for fuel for the car if they have one, or public transport if they don't; just so they can get to work. Most people would never enter into one of these agreements if they could possibly avoid it, even less so if they realised the full cost of their actions.
The Office of Fair Trading and Financial Services Authority should take urgent action to clamp down on this kind of activity. The Government could also possibly step in to fill the void. If they were to offer loans at a reasonable rate from a social fund and at the same time give financial advice, much of the heartache could possibly be avoided.
Most people simply do not understand enough about credit, what it costs, what it means, what happens if things go wrong. By educating them it may be feasible to reduce the amount of havoc it can wreak on society.
Millions of working days are lost in the UK every year due to stress related illness. If absenteeism, stress, anxiety and mental illness induced by the worry of debt were to be reduced effectively, it would save the UK economy billions of pounds every year. The financial cost doesn't end there. Hospitalisation, primary care trust treatments, medication, therapy, counselling etc all add to the financial cost.
But what of the human cost? Marriages break down and people commit suicide due to financial pressure. Alleviating the symptoms would reduce these statistics significantly. Surely it should be our moral duty as a civilsed nation to show compassion and if it saves vast amounts of money too, it makes sense on every level.
We need to do more and take more accountability as a nation for what is happening. Please visit our website and post your comments. If we can show enough strength of feeling on this and other major financial issues, perhaps we can begin to make a change!"
www.sterlingtrust.org.uk
A BBC report today stated that the financial regulators should step in and prevent companies from charging the equivalent of anything up to 2000% APR. The shock revelation shows just how much vulnerable people are being forced to pay, often just to meet day-to-day living costs.
A spokesman from Sterling Trust said, "We may be shocked at the level of repayments, but are not surprised to find some companies are profiteering at the expense of the most vulnerable members of the public. We take exception to the fact that they are getting away with it and increasing the burden of misery on those who can least afford it.
Often these loans are taken out simply to heat or light a home, put food in the cupboard, pay for fuel for the car if they have one, or public transport if they don't; just so they can get to work. Most people would never enter into one of these agreements if they could possibly avoid it, even less so if they realised the full cost of their actions.
The Office of Fair Trading and Financial Services Authority should take urgent action to clamp down on this kind of activity. The Government could also possibly step in to fill the void. If they were to offer loans at a reasonable rate from a social fund and at the same time give financial advice, much of the heartache could possibly be avoided.
Most people simply do not understand enough about credit, what it costs, what it means, what happens if things go wrong. By educating them it may be feasible to reduce the amount of havoc it can wreak on society.
Millions of working days are lost in the UK every year due to stress related illness. If absenteeism, stress, anxiety and mental illness induced by the worry of debt were to be reduced effectively, it would save the UK economy billions of pounds every year. The financial cost doesn't end there. Hospitalisation, primary care trust treatments, medication, therapy, counselling etc all add to the financial cost.
But what of the human cost? Marriages break down and people commit suicide due to financial pressure. Alleviating the symptoms would reduce these statistics significantly. Surely it should be our moral duty as a civilsed nation to show compassion and if it saves vast amounts of money too, it makes sense on every level.
We need to do more and take more accountability as a nation for what is happening. Please visit our website and post your comments. If we can show enough strength of feeling on this and other major financial issues, perhaps we can begin to make a change!"
www.sterlingtrust.org.uk
Wednesday 10 September 2008
Debt busting charity website eases debt burden and is totally FREE to anyone who needs it
Britons have taken on record levels of unsecured debt, causing concern that people could be heading for a nasty fall. What steps can you take to avoid getting into debt? If you are already in the red and worried, how can you repair the damage?
How can I avoid getting into debt?
Debt is a fact of life for many people these days, but if you follow some golden rules you can avoid getting into trouble.
Apart from trying not to overspend, there are some ways of minimising your chances of getting into debt.
One of the most common forms of debt is caused by overspending on credit cards. If you can't trust yourself, avoid them.
If you feel that you can manage a credit card, you should subscribe to one with a low interest rate.
What rate should I be paying on my credit card?
Most people pay over the odds for credit, but there is no need.
There are a range of good deals on the market, offering rates of interest only a little higher than the Bank of England base rate at 5%.
But many customers pay close to 20%.
In fact, relative to the Bank of England, some big-name credit cards have never been more expensive.
If you opt for a card that has a 0% rate of interest, this is likely to be for a limited period only, so it is important to switch to a better rate when the "bonus" period expires.
As a rule of thumb you should steer clear of store cards unless you can pay off your balance within the interest-free period. The rates are much higher than normal credit cards.
Should I consolidate my debt in a loan?
Consolidation loan companies offer a tempting "quick-fix" solution to debt - you take out one loan to cover all your existing repayments.
Having someone else take the effort away from dealing with all your creditors may sound like a dream, but debt counsellors advise people to steer clear.
This is because the interest rates charged on these loans are normally much higher than you can get on the High Street.
They often come with payment protection insurance with unfair terms, which may not cover you if you are made redundant or fall ill.
They are also "secured" loans, which means that if you are unable to keep up repayments you will lose the roof over your head.
If you are sure you want to consolidate your loans into one payment, you should shop around for a competitive rate on the High Street and get a normal unsecured, personal loan.
People in debt should also avoid paying for so-called "debt counselling". There are plenty of free services available.
Should I save or pay off my debts?
A general rule is to pay off your debts, such as your mortgage and credit card, before you start to save money.
This is because the amount of savings income you can get is almost always dwarfed by interest rates you pay on your debts.
To check whether you are better off saving or repaying your debts, you should compare the interest rate on your credit facilities with your savings or investment rates.
You should also factor in tax that you will have to pay on your savings - at 20% for basic-rate and 40% for high-rate taxpayers.
At the moment with interest rates at historically low levels, it is probably better to pay off your debts.
I've spent too much. What do I do?
Your debt will not go away, you must tackle the problem before it escalates out of control.
Debt can be enormously stressful, so it is important to tell someone.
If you can not tell a member of your family, there are a number of charities who can help you cope with the stress and help you work out a debt management strategy.
You should then sit down and prioritise your responsibilities.
For example, meeting repayments on essential services such as your mortgage and utility bills should be your first concern.
If you are paying off a range of credit cards and store cards, you should pay off those with the highest rate of interest first.
You could also switch your balance to a credit card which charges a lower rate of interest - there are many providers of these special "balance transfer" deals.
Despite what you may think, most companies are sympathetic to people who cannot afford repayments.
Recovering debt can be enormously expensive, so they are often willing to work out an agreement with you.
Is there anyone who can help me?
If you find yourself facing debt problems similar to the ones outlined here you should seek help immediately. There are many companies offering debt help, but you should ensure you look for a charitable organisation that has no fees for their services, such as Sterling Trust. You can go to their website at www.sterlingtrust.org.uk and find all you need to solve your unsecured debt issues totally free of any charge.
The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.
Sterling Trust Uk Ltd is a registered debt help charity with no fee charges whatsoever. Please feel free to check out their website and see for yourself.
www.sterlingtrust.org.uk
How can I avoid getting into debt?
Debt is a fact of life for many people these days, but if you follow some golden rules you can avoid getting into trouble.
Apart from trying not to overspend, there are some ways of minimising your chances of getting into debt.
One of the most common forms of debt is caused by overspending on credit cards. If you can't trust yourself, avoid them.
If you feel that you can manage a credit card, you should subscribe to one with a low interest rate.
What rate should I be paying on my credit card?
Most people pay over the odds for credit, but there is no need.
There are a range of good deals on the market, offering rates of interest only a little higher than the Bank of England base rate at 5%.
But many customers pay close to 20%.
In fact, relative to the Bank of England, some big-name credit cards have never been more expensive.
If you opt for a card that has a 0% rate of interest, this is likely to be for a limited period only, so it is important to switch to a better rate when the "bonus" period expires.
As a rule of thumb you should steer clear of store cards unless you can pay off your balance within the interest-free period. The rates are much higher than normal credit cards.
Should I consolidate my debt in a loan?
Consolidation loan companies offer a tempting "quick-fix" solution to debt - you take out one loan to cover all your existing repayments.
Having someone else take the effort away from dealing with all your creditors may sound like a dream, but debt counsellors advise people to steer clear.
This is because the interest rates charged on these loans are normally much higher than you can get on the High Street.
They often come with payment protection insurance with unfair terms, which may not cover you if you are made redundant or fall ill.
They are also "secured" loans, which means that if you are unable to keep up repayments you will lose the roof over your head.
If you are sure you want to consolidate your loans into one payment, you should shop around for a competitive rate on the High Street and get a normal unsecured, personal loan.
People in debt should also avoid paying for so-called "debt counselling". There are plenty of free services available.
Should I save or pay off my debts?
A general rule is to pay off your debts, such as your mortgage and credit card, before you start to save money.
This is because the amount of savings income you can get is almost always dwarfed by interest rates you pay on your debts.
To check whether you are better off saving or repaying your debts, you should compare the interest rate on your credit facilities with your savings or investment rates.
You should also factor in tax that you will have to pay on your savings - at 20% for basic-rate and 40% for high-rate taxpayers.
At the moment with interest rates at historically low levels, it is probably better to pay off your debts.
I've spent too much. What do I do?
Your debt will not go away, you must tackle the problem before it escalates out of control.
Debt can be enormously stressful, so it is important to tell someone.
If you can not tell a member of your family, there are a number of charities who can help you cope with the stress and help you work out a debt management strategy.
You should then sit down and prioritise your responsibilities.
For example, meeting repayments on essential services such as your mortgage and utility bills should be your first concern.
If you are paying off a range of credit cards and store cards, you should pay off those with the highest rate of interest first.
You could also switch your balance to a credit card which charges a lower rate of interest - there are many providers of these special "balance transfer" deals.
Despite what you may think, most companies are sympathetic to people who cannot afford repayments.
Recovering debt can be enormously expensive, so they are often willing to work out an agreement with you.
Is there anyone who can help me?
If you find yourself facing debt problems similar to the ones outlined here you should seek help immediately. There are many companies offering debt help, but you should ensure you look for a charitable organisation that has no fees for their services, such as Sterling Trust. You can go to their website at www.sterlingtrust.org.uk and find all you need to solve your unsecured debt issues totally free of any charge.
The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.
Sterling Trust Uk Ltd is a registered debt help charity with no fee charges whatsoever. Please feel free to check out their website and see for yourself.
www.sterlingtrust.org.uk
Monday 8 September 2008
How Many Governemts Does It Take To Change An Economy?
If Gordon Brown was such a great Chancellor and we had such an enviable and healthy economy, why are we facing such financial ruin? Have we been conned into believing we were better off than we were?
If the UK economy that we have all been told to feel so proud of was that great, why are we on the verge of socio-economic collapse according to every paper you pick up or news bulletin you hear? Is it a case of the British public being lulled into a false sense of security with good old Mr Brown at the helm? Has his captaincy merely led to steering us at full steam into the biggest financial iceberg on the face of the planet? How many lifeboats did he bring along?
After all the postulating and bravado, it seems there is no clear policy nor obvious escape route from the impending disaster. Why has this been allowed to happen? The answer quite simply is greed! The people who have the power and wherewithall to implement change are holding the purse strings. Why would they want to derail their own gravy train?
Everyone keeps talking about credit hungry Brits, which one has to admit as a nation we certainly seem to be. But why has this been not only allowed, but forced to happen? If we look at our history books, much of it dates back to the "Thatcher years" when the power of the unions was broken. Since then the workforce have never really rallied together or had a significant voice.
Since those days we have had the introduction of the National Minimum Wage. This was a godsend for many employers. At the time it was introduced, many employers were fighting to get quality candidates and wages on offer in many inner city locations such as Leeds were often to be found in the region of £8.00 - £12.00 per hour. Bearing in mind we are talking many years ago, these were quite significant income figures.
As the NMW was introduced employers were made graphically aware of what they could "Get away with" and en masse, slashed wages offered to "Above National Minimum Wage" This equated to a huge pay cut for new employees in many occupations. Although the NMW has been periodically increased, it has never kept pace with inflation (the true figure not the Governement spin) and people have started sliding into varying degrees of poverty.
The way they have tried to maintain their living standards is by working 2 or 3 jobs and by taking offers of cheap credit, reassured by the escalating value of their greatest asset; their homes. We all now know what a falasy that can prove to be! The resultant effect is that much of the country is now massively indebted and struggling just to survive.
The whole ethos of the credit industry is not buy now and pay later, but BUY NOW AND PAY FOREVER! Anyone who doubts this, simply look at the trends for credit card use over the last decade! If you poll people to find out how many pay their cards off in full every month thereby benefitting from free credit, you will no doubt find it's approximately 5% i.e. the financially independent minority who always thrive no matter what.
If you suffering from any of the issues mentioned in this article, please feel free to take advantage of our debt help charity website designed to help people just like you. By registering your details you can find all the help, advice, letters and forms you need to manage your debts totally FREE OF CHARGE.
www.sterlingtrust.org.uk
If the UK economy that we have all been told to feel so proud of was that great, why are we on the verge of socio-economic collapse according to every paper you pick up or news bulletin you hear? Is it a case of the British public being lulled into a false sense of security with good old Mr Brown at the helm? Has his captaincy merely led to steering us at full steam into the biggest financial iceberg on the face of the planet? How many lifeboats did he bring along?
After all the postulating and bravado, it seems there is no clear policy nor obvious escape route from the impending disaster. Why has this been allowed to happen? The answer quite simply is greed! The people who have the power and wherewithall to implement change are holding the purse strings. Why would they want to derail their own gravy train?
Everyone keeps talking about credit hungry Brits, which one has to admit as a nation we certainly seem to be. But why has this been not only allowed, but forced to happen? If we look at our history books, much of it dates back to the "Thatcher years" when the power of the unions was broken. Since then the workforce have never really rallied together or had a significant voice.
Since those days we have had the introduction of the National Minimum Wage. This was a godsend for many employers. At the time it was introduced, many employers were fighting to get quality candidates and wages on offer in many inner city locations such as Leeds were often to be found in the region of £8.00 - £12.00 per hour. Bearing in mind we are talking many years ago, these were quite significant income figures.
As the NMW was introduced employers were made graphically aware of what they could "Get away with" and en masse, slashed wages offered to "Above National Minimum Wage" This equated to a huge pay cut for new employees in many occupations. Although the NMW has been periodically increased, it has never kept pace with inflation (the true figure not the Governement spin) and people have started sliding into varying degrees of poverty.
The way they have tried to maintain their living standards is by working 2 or 3 jobs and by taking offers of cheap credit, reassured by the escalating value of their greatest asset; their homes. We all now know what a falasy that can prove to be! The resultant effect is that much of the country is now massively indebted and struggling just to survive.
The whole ethos of the credit industry is not buy now and pay later, but BUY NOW AND PAY FOREVER! Anyone who doubts this, simply look at the trends for credit card use over the last decade! If you poll people to find out how many pay their cards off in full every month thereby benefitting from free credit, you will no doubt find it's approximately 5% i.e. the financially independent minority who always thrive no matter what.
If you suffering from any of the issues mentioned in this article, please feel free to take advantage of our debt help charity website designed to help people just like you. By registering your details you can find all the help, advice, letters and forms you need to manage your debts totally FREE OF CHARGE.
www.sterlingtrust.org.uk
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