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!
Wednesday, 17 September 2008
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
Thursday, 4 September 2008
As a result of the ongoing credit crunch, UK households are cutting back on spending
During the last six months, household consumption continued to grow slightly, despite the rise in food and fuel costs, debt levels rose and house prices fell. In the same period wages have stagnated and reduced in real terms.
According to recent surveys consumer confidence continues to plummet as prices spiral and wages stagnate on top of the disaster occurring in the housing market. Fuel prices do seem to have stabilised a little at the pumps, offering slight relief to punch-drunk motorists reeling from multiple body blows. The hikes in car tax, which is allegedly targeted at the wealthy and their "Gas guzzlers" but is totally misguided and wide fo the mark, penalising many who can least afford it.
Food, domestic fuel prices and the general cost of living are rising almost by the hour! Interest rates remain high, whilst house prices are plunging into freefall. The lack of confidence has stopped all but the foolhardy or financially impervious from even considering a purchase, while vendors often get more desperate to relieve the pressure.
In view of the above, families are cutting back wherever possible on spending and attempting to keep their heads above water while being drageed down by the undercurrents and facing head-on into a financial tsunami. They are spending much less on non-essential items, but worryingly are also having to spend less on essential items.
You onluy have to take a lok at the "High street" for evidence of this. The myriad of "Sales" seem to be having less and less of an attraction and the "Sofa index" would point to a massive shrinkage of the soft furnishings market. This is used by many as an indicator of the comparative disposable wealth in our economy. People noticeably cut back on soft furnishings as soon as money gets tight.
The car industry are telling us how bad things are getting as prices spiral downward and sales plunge to all time lows. The building industry is in turmoil as thousand of builders, ground workers and related trades are laid off. Virtually all big building projects have been shelved due to the uncertainty facing our property market. Estate agents too are being laid off by the thousand as sales of properties slow to the lowest rate since the 1970's despite the huge demand.
So what can we as a nation do to stop the rot and turn the situation around? Out of all disastrous situations comes opportunity for achievement. We need to embrace the changes and challenges we are currently facing, digging deep to find that true "British spirit" and look at ways to lead the world out of this recessionary spiral we now find ourselves in.
Instead of playing lapdog to the US we should take a bold stance and have the courage of our convictions, standing up to be counted on the world stage. For years if you ever mentioned owning an electric vehicle you were either a milkman, insane or both! Now there are a diversity of hybrid and all electric vehicles on offer. All around the world governments are turning to sustainable energy sources. Green issues are no longer the domain of cranks and radicals, but election winners.
The world is changing and we need to decide whether we are prepared to take up the reins and lead that change, rather than being meekly lead like a lamb to the slaughter. We have the skills, the know-how, the entrepeneurial spirit, the acumen and the resource to become a world beating nation and drive the financial blues away. So come on Britain, let's be GREAT again!
We need to accept that things have to change, nay, we have to MAKE them change, in order to progress. If we work together for mutual benefit, this island nation of ours can make a huge impact on and difference to the global economic climate. For that chage to take place we have to start closer to home and get our own house in order. Buying you way out of debt whether and individual, company, organisation, government or nation simply does not work. This has been proven time and time again, but still we make the same mistakes.
If you are struggling to maintain payments to personal debts, take the bull by the horns and implement that change. If you need help, look no further. As a totally impartial and FREE charity, we aim to help as many people as possible to manage their debts and provide relief for the stress it causes. Just go to our site and you will find all you need to take your first steps towards financial freedom.
www.sterlingtrust.org.uk
As a result, this continued spending created an even worse underlying financial reality for the UK consumer but the latest survey shows that the credit crunch has finally hit consumer spending, as UK families are overstretched due to rising bills and whose wages are not in line with inflation.
Consequently, families feel much poorer and are cutting back and are only buying essential items.
Evidence of this came from the GfK NOP barometer of UK consumer confidence, who discovered that consumer confidence is at its lowest level since 1974 as soaring food and fuel prices sparks concern for the economy and personal finances.
The GfK NOP barometer of UK consumer confidence scored -39 in July, this represents the lowest level recorded since the survey commenced in 1974 and down from -34 in June.
The survey also found that nearly half of people said they had started buying supermarkets’ own brand of goods, while nearly a third have started shopping at discount supermarkets.
Furthermore, figures from the CBI revealed that sales on the High Street have slumped to their lowest level for a quarter of a century.
Alliance Trust Research Centre’s Financial Reality Index also established that as well as a record low in consumers’ household budgets, the second quarter of the year also brings a record low in net wealth conditions.
The steep decline in property prices and rising levels of debt have been a huge burden on household net wealth.
Commenting on the findings, Head of Alliance Trust Research Centre, Shona Dobbie, explained that the credit crunch has now fully started to hit consumers and net wealth conditions are at a record low.
As forecasted last quarter, equity markets and house prices have continued to decline, and together with high levels of consumer debt, this has caused the Financial Reality Index to fall to a record low, concluded Ms Dobbie.
According to recent surveys consumer confidence continues to plummet as prices spiral and wages stagnate on top of the disaster occurring in the housing market. Fuel prices do seem to have stabilised a little at the pumps, offering slight relief to punch-drunk motorists reeling from multiple body blows. The hikes in car tax, which is allegedly targeted at the wealthy and their "Gas guzzlers" but is totally misguided and wide fo the mark, penalising many who can least afford it.
Food, domestic fuel prices and the general cost of living are rising almost by the hour! Interest rates remain high, whilst house prices are plunging into freefall. The lack of confidence has stopped all but the foolhardy or financially impervious from even considering a purchase, while vendors often get more desperate to relieve the pressure.
In view of the above, families are cutting back wherever possible on spending and attempting to keep their heads above water while being drageed down by the undercurrents and facing head-on into a financial tsunami. They are spending much less on non-essential items, but worryingly are also having to spend less on essential items.
You onluy have to take a lok at the "High street" for evidence of this. The myriad of "Sales" seem to be having less and less of an attraction and the "Sofa index" would point to a massive shrinkage of the soft furnishings market. This is used by many as an indicator of the comparative disposable wealth in our economy. People noticeably cut back on soft furnishings as soon as money gets tight.
The car industry are telling us how bad things are getting as prices spiral downward and sales plunge to all time lows. The building industry is in turmoil as thousand of builders, ground workers and related trades are laid off. Virtually all big building projects have been shelved due to the uncertainty facing our property market. Estate agents too are being laid off by the thousand as sales of properties slow to the lowest rate since the 1970's despite the huge demand.
So what can we as a nation do to stop the rot and turn the situation around? Out of all disastrous situations comes opportunity for achievement. We need to embrace the changes and challenges we are currently facing, digging deep to find that true "British spirit" and look at ways to lead the world out of this recessionary spiral we now find ourselves in.
Instead of playing lapdog to the US we should take a bold stance and have the courage of our convictions, standing up to be counted on the world stage. For years if you ever mentioned owning an electric vehicle you were either a milkman, insane or both! Now there are a diversity of hybrid and all electric vehicles on offer. All around the world governments are turning to sustainable energy sources. Green issues are no longer the domain of cranks and radicals, but election winners.
The world is changing and we need to decide whether we are prepared to take up the reins and lead that change, rather than being meekly lead like a lamb to the slaughter. We have the skills, the know-how, the entrepeneurial spirit, the acumen and the resource to become a world beating nation and drive the financial blues away. So come on Britain, let's be GREAT again!
We need to accept that things have to change, nay, we have to MAKE them change, in order to progress. If we work together for mutual benefit, this island nation of ours can make a huge impact on and difference to the global economic climate. For that chage to take place we have to start closer to home and get our own house in order. Buying you way out of debt whether and individual, company, organisation, government or nation simply does not work. This has been proven time and time again, but still we make the same mistakes.
If you are struggling to maintain payments to personal debts, take the bull by the horns and implement that change. If you need help, look no further. As a totally impartial and FREE charity, we aim to help as many people as possible to manage their debts and provide relief for the stress it causes. Just go to our site and you will find all you need to take your first steps towards financial freedom.
www.sterlingtrust.org.uk
As a result, this continued spending created an even worse underlying financial reality for the UK consumer but the latest survey shows that the credit crunch has finally hit consumer spending, as UK families are overstretched due to rising bills and whose wages are not in line with inflation.
Consequently, families feel much poorer and are cutting back and are only buying essential items.
Evidence of this came from the GfK NOP barometer of UK consumer confidence, who discovered that consumer confidence is at its lowest level since 1974 as soaring food and fuel prices sparks concern for the economy and personal finances.
The GfK NOP barometer of UK consumer confidence scored -39 in July, this represents the lowest level recorded since the survey commenced in 1974 and down from -34 in June.
The survey also found that nearly half of people said they had started buying supermarkets’ own brand of goods, while nearly a third have started shopping at discount supermarkets.
Furthermore, figures from the CBI revealed that sales on the High Street have slumped to their lowest level for a quarter of a century.
Alliance Trust Research Centre’s Financial Reality Index also established that as well as a record low in consumers’ household budgets, the second quarter of the year also brings a record low in net wealth conditions.
The steep decline in property prices and rising levels of debt have been a huge burden on household net wealth.
Commenting on the findings, Head of Alliance Trust Research Centre, Shona Dobbie, explained that the credit crunch has now fully started to hit consumers and net wealth conditions are at a record low.
As forecasted last quarter, equity markets and house prices have continued to decline, and together with high levels of consumer debt, this has caused the Financial Reality Index to fall to a record low, concluded Ms Dobbie.
Tuesday, 2 September 2008
Lenders And Debt Help Charities Work Together To Reduce Debt Burden
The Financial Services Authority (FSA) are working closely with lenders and charity debt organisations alike to try and agree how best to help beleagured Britons. According to a recent report from a leading debt advice website.
There is possibly some good news for Britons in a month where everything seems to be continual doom and gloom. We have already heard how everything is increasing in cost for the working man and woman in this country apart from wages. Massive hikes in fuel prices, inflation rising and house prices falling all spell out a dismal run up to Christmas for many.
It's good to hear therefore that some creditor companies seem to be adopting a responsible stance and finding ways to try ensure people drowning in a sea of debt can get the help and support they need and deserve. By working with the FSA and debt charities closely, it should be possible to recover more of their losses but in a more supportive manner that benefits all concerned.
Most people are terrified of contacting their creditors when things go wrong and listening to thousands of horror stories over the last few years, it can be with good reason. Most people who have found themselves desperately in need of help claim to have been given little or no help by their creditors, in fact many claim to have been intimidated and made to feel "inadequate, intimidated and like a criminal."
This from what I can ascertain is because normally they only get to speak to a call centre operative in a collections centre who is reading from a script, has no authority to make a decision, nor the training to understand complex situations. This can lead to poor communications, misunderstanding, bad feeling and a breakdown in relations.
If creditors want to recoup their money, they should have better trained staff who are emapthic, understanding, knowledgeable and able to process requests. Many people if pushed too hard for recovery of their unsecured debts are likely to get to such a state they will simply give up and go for bankruptcy. Obviously in the vast majority of cases this is not really very helpful for anyone concerned.
It's therefore to be applauded if any steps are made to streamline processes and help in any way. It would be good to see more inititatives brought into play to ease the situation. Sterling Trust are massively in favour of helping in any capacity and way we can, whether in an advisory capacity or by helping individuals manage their debts through our website.
Times are bound to get harder for everyone, so we really do need to all pull together and try to get this great nation of ours back on it's feet.
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!
There is possibly some good news for Britons in a month where everything seems to be continual doom and gloom. We have already heard how everything is increasing in cost for the working man and woman in this country apart from wages. Massive hikes in fuel prices, inflation rising and house prices falling all spell out a dismal run up to Christmas for many.
It's good to hear therefore that some creditor companies seem to be adopting a responsible stance and finding ways to try ensure people drowning in a sea of debt can get the help and support they need and deserve. By working with the FSA and debt charities closely, it should be possible to recover more of their losses but in a more supportive manner that benefits all concerned.
Most people are terrified of contacting their creditors when things go wrong and listening to thousands of horror stories over the last few years, it can be with good reason. Most people who have found themselves desperately in need of help claim to have been given little or no help by their creditors, in fact many claim to have been intimidated and made to feel "inadequate, intimidated and like a criminal."
This from what I can ascertain is because normally they only get to speak to a call centre operative in a collections centre who is reading from a script, has no authority to make a decision, nor the training to understand complex situations. This can lead to poor communications, misunderstanding, bad feeling and a breakdown in relations.
If creditors want to recoup their money, they should have better trained staff who are emapthic, understanding, knowledgeable and able to process requests. Many people if pushed too hard for recovery of their unsecured debts are likely to get to such a state they will simply give up and go for bankruptcy. Obviously in the vast majority of cases this is not really very helpful for anyone concerned.
It's therefore to be applauded if any steps are made to streamline processes and help in any way. It would be good to see more inititatives brought into play to ease the situation. Sterling Trust are massively in favour of helping in any capacity and way we can, whether in an advisory capacity or by helping individuals manage their debts through our website.
Times are bound to get harder for everyone, so we really do need to all pull together and try to get this great nation of ours back on it's feet.
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, 1 September 2008
Managing to cope with debt... The "Golden Rules"
See our list of self-help guidelines for dealing with debt. Most of it is common sense, but that can often "Go out of the window" when people are under extreme pressure from creditor companies. Following the guidelines really can reduce stress levels
1. Be wary of borrowing more money
Don't borrow money to pay off your debts without thinking carefully. Get advice first.
You should be particularly wary of taking out a loan secured on your house to consolidate the debts you already have.
If you turn unsecured loans into a mortgage you could lose your house if you don't keep up the payments.
Consolidation loans mean borrowing more money, over a longer period and will mean more interest to pay. This could make your situation worse in the long run.
2. Don't ignore the problem
It won't go away and the longer you leave it, the worse it gets.
Get in touch with your creditors straight away and explain your difficulties.
Explain your situation in writing and back it up with a detailed personal budget outlining your income and outgoings and showing your creditors how much you can afford to pay them every month.
Contact everyone you owe money to. If you make arrangements to pay some creditors but not others, you could run into difficulties again.
If the first person you deal with is unhelpful, ask to speak to someone more senior who may be able to agree to your offer of payment.
3. Adopt a wise strategy
Make sure you tackle your priority debts first.
Priority debts are those that could lead to you losing your home, being evicted, having your gas or electricity cut off, or lead to fines.
This means you should make sure you have made arrangements to pay your essential household bills such as your mortgage or rent, loans secured on your home, council tax and utilities before making offers to pay unsecured credit debts.
Your debt situation may get a lot worse if you miss payments on your mortgage to keep up to date with a credit card.
4. Maximise your income
Make sure you are claiming all the benefits you are able to: Could you claim Tax Credits? Are you sick or have a disability?
If you are on a low income you may be able to claim a rebate on your rent and council tax.
Contact an independent welfare rights agency for advice and a benefits check(see information box for more details).
If you have lost your job, or are off work because of illness, check whether your payments were covered by payment protection insurance. Contact the credit company if you are not sure.
Make sure all adults in your household are contributing to the household bills.
Check with the Inland Revenue that your tax code is correct for your circumstances.
You may also be able to save money by switching to better deals on a range of goods and services.
5. Speak to an independent free advice service
Be very careful before entering into any sort of debt management programme with a company that will charge you for sorting out your debts.
Free debt management plans are available which means that all the money you can afford to pay goes on paying your debts back instead of on monthly fees.
CHECKING YOUR BENEFITS
Contact your council to see if it has a welfare rights office. Local law centres often offer benefits advice (http://www.lawcentres.org)
If you are over 60, contact your local Help the Aged, Pension Service or Age Concern office. Age Concern's information line: 0800 00 99 66; Help the Aged's Seniorline: 0808 800 6565; (0808 808 7575 Northern Ireland); The Pension Service's website or Department for Work and Pensions website. Tax credits are administered by the Inland Revenue: 0845 300 3900 (Great Britain); 0845 603 2000 (Northern Ireland.) British Gas Warm-a-life scheme offers benefit checks and energy saving tips free of charge to people living in privately owned or privately rented houses in receipt of income related benefits (not just British Gas customers): 0845 605 2535
Contact Sterling Trust on 09040 940 940 for more debt help. We are a totally FREE charitable service. www.sterlingtrust.org.uk
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!
1. Be wary of borrowing more money
Don't borrow money to pay off your debts without thinking carefully. Get advice first.
You should be particularly wary of taking out a loan secured on your house to consolidate the debts you already have.
If you turn unsecured loans into a mortgage you could lose your house if you don't keep up the payments.
Consolidation loans mean borrowing more money, over a longer period and will mean more interest to pay. This could make your situation worse in the long run.
2. Don't ignore the problem
It won't go away and the longer you leave it, the worse it gets.
Get in touch with your creditors straight away and explain your difficulties.
Explain your situation in writing and back it up with a detailed personal budget outlining your income and outgoings and showing your creditors how much you can afford to pay them every month.
Contact everyone you owe money to. If you make arrangements to pay some creditors but not others, you could run into difficulties again.
If the first person you deal with is unhelpful, ask to speak to someone more senior who may be able to agree to your offer of payment.
3. Adopt a wise strategy
Make sure you tackle your priority debts first.
Priority debts are those that could lead to you losing your home, being evicted, having your gas or electricity cut off, or lead to fines.
This means you should make sure you have made arrangements to pay your essential household bills such as your mortgage or rent, loans secured on your home, council tax and utilities before making offers to pay unsecured credit debts.
Your debt situation may get a lot worse if you miss payments on your mortgage to keep up to date with a credit card.
4. Maximise your income
Make sure you are claiming all the benefits you are able to: Could you claim Tax Credits? Are you sick or have a disability?
If you are on a low income you may be able to claim a rebate on your rent and council tax.
Contact an independent welfare rights agency for advice and a benefits check(see information box for more details).
If you have lost your job, or are off work because of illness, check whether your payments were covered by payment protection insurance. Contact the credit company if you are not sure.
Make sure all adults in your household are contributing to the household bills.
Check with the Inland Revenue that your tax code is correct for your circumstances.
You may also be able to save money by switching to better deals on a range of goods and services.
5. Speak to an independent free advice service
Be very careful before entering into any sort of debt management programme with a company that will charge you for sorting out your debts.
Free debt management plans are available which means that all the money you can afford to pay goes on paying your debts back instead of on monthly fees.
CHECKING YOUR BENEFITS
Contact your council to see if it has a welfare rights office. Local law centres often offer benefits advice (http://www.lawcentres.org)
If you are over 60, contact your local Help the Aged, Pension Service or Age Concern office. Age Concern's information line: 0800 00 99 66; Help the Aged's Seniorline: 0808 800 6565; (0808 808 7575 Northern Ireland); The Pension Service's website or Department for Work and Pensions website. Tax credits are administered by the Inland Revenue: 0845 300 3900 (Great Britain); 0845 603 2000 (Northern Ireland.) British Gas Warm-a-life scheme offers benefit checks and energy saving tips free of charge to people living in privately owned or privately rented houses in receipt of income related benefits (not just British Gas customers): 0845 605 2535
Contact Sterling Trust on 09040 940 940 for more debt help. We are a totally FREE charitable service. www.sterlingtrust.org.uk
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!
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