Tag Archives: debt

RETIRED NATION IS SITTING ON £96.41 BILLION OF PERSONAL DEBTS

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Everyone thinks it is just the young who are in debt and struggling, but new research has shown that the retired are having a tough time too. Here are some stats, and a checklist to improve your living standards and boost your income.

· Average retired person has £8,180 of personal debt

· 178,000 retired people have personal debts of £100,000 or more

New research from retirement income specialist MGM Advantage reveals that the average retired person has £8,180 of personal debt, collectively equating to a staggering £96.41billion. The average level of personal debt for a retired man is £9,007, compared to £7,350 for a retired woman.

Around 178,000 retired people each owe £100,000 or more, and just over 729,000 owe between £25,000 and £100,000. Only 57% of the retired population has no personal debt.

Amount of personal debt

Number of retired people

Between £1 and £5,000

2.486 million

Between £5,001 and £25,000

1.094 million

Between £25,001 and £100,000

729,000

Over £100,000

178,000

None

6.776 million

Don’t know

523,000

Aston Goodey, Director, MGM Advantage said: “These figures are alarming. As the cost of living continues to put pressure on household finances, many retired people will feel under growing pressure to take on debt to fund everyday living.

“There are things you can do to minimise the chances of funding your retirement through debt. It is vital that people shop around for the best annuity rate to maximise the income they receive. The difference between the best and worst rates can be as much as 50%2. People should also make sure they are claiming all of the State benefits to which they are entitled and also ensure that they have accounted for all old savings accounts and pension plans.”

On a regional basis, the average retired person in Wales has personal debt of £13,857, which is the highest in Britain. This is followed by £11,758 in the South West, and £11,255 in London.

Region

Average amount of personal debt per retired person

Wales

£13,857

South West

£11,758

London

£11,255

West Midlands

£9,417

Scotland

£8,890

North West

£8,094

South East

£7,390

Yorkshire and Humberside

£7,353

North East

£6,511

Eastern

£4,759

East Midlands

£4,164

Northern Ireland

*Sample size too small to report

MGM Advantage has published a checklist of things for people to consider when making important decisions at retirement:

1. Claim all state benefits to which you are entitled, to check, go to www.direct.gov.uk

Data suggests that pensioners are missing out on up to £5 billion a year in unclaimed pension credit, housing and council tax benefits, as well as attendance and disability living allowances.

2. Keep a track on any old personal or occupational pension arrangements, if you think you might have lost track of an old pension arrangement, you can check via the Department for Work and Pensions tracing service here http://www.thepensionservice.gov.uk/

3. You can check if you have any old savings accounts which you might have lost touch with over the years by going to http://www.unclaimedassets.co.uk/

4. Don’t just accept the annuity rate offered by your pension provider. You should shop around for the best rate and you might qualify for an enhanced rate for pre-existing medical conditions

5. Seek professional financial advice as this will help you get the best product and rate for your individual circumstances, to find an independent adviser go to http://www.unbiased.co.uk/

6. You may have old National Savings accounts or Premium Bonds, to check for unclaimed prizes please go to http://www.nsandi.com/files/asset/pdf/Tracing_brochure_v03.pdf


For further information please go to www.retirementnation.co.uk

How to Get Out of Debt and Avoid Fraud

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Be careful with credit counseling agencies that don’t always deliver what they promise

More than one and a half million people file for bankruptcy every year. Many people fall behind on their bills because they’ve lost their jobs, suffered from a long-term illness, or because they were unable to manage their personal finances properly.

Fortunately, there are many resources out there that can help you put together a plan to pay off your debt, including credit counseling agencies.

Signs Your Finances Are in Trouble

You don’t have to be close to filing for bankruptcy to realize that you are in financial trouble. These are some signs that you might have too much debt:

* You are frequently late on your payments
* You are close to your credit limit on your credit cards
* You use your credit cards to make payments on other cards
* You find it difficult to save money
* You’ve been denied credit recently

How to Get out of Debt

To get out of debt and set your finances straight, carefully analyze your income and expenses. Make sure you:

* Make a budget and stay within its limits.
* Figure out your total debt and also what you owe to each creditor, your monthly payments, interest and payment due dates.
* Prioritize repayments, focusing first on things such as your mortgage, rent, and utilities.
* Make a repayment plan for each creditor and determine how long it will take you to pay off the debt. Make sure to review your credit card statements, as they will include information about how long it will take to pay off your balance, per new credit card laws that went into effect in 2010.
* Don’t incur any additional debt.

How to Choose a Credit Counseling Agency

Consider a credit counseling agency if your debt is too much to handle. These companies offer workshops on how to manage your money and advice on how to administer your debt. They can also help you create a budget and even negotiate your debt with creditors.

Many of these companies are nonprofit organizations, however be careful, as some charge excessive fees for their services and others might not even deliver what they promise. Consider these important suggestions before choosing a credit counseling agency:

* Pick a counseling agency that offers several services. This will help you avoid organizations that promote only certain services.
* Avoid credit counseling agencies that charge you for simply providing information, or agencies that demand a percentage of the amount that you are supposedly saving. Ideally, you should request the cost of their services in advance and in writing.
* Stay away from agencies that ask you to stop making payments on your debt or ask you not to contact creditors.

The Department of Justice has a list of credit counseling agencies that are approved to provide pre-bankruptcy counseling.

SOURCE GobiernoUSA.gov/USA.gov

It's Christmas time- there's no need to be afraid.

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I’ve just seen an ad for Littlewoods, or copses as they should be known. It’s your usual fare. Loads of cute kids on stage at a school and the proud parents beaming from the fold-up chairs below. It’s not a nativity of course, god forbid, it’s a singing tribute to how wonderful mums are. Nice? Well not really no, because the song- and there’s even a rap in there to keep it ‘street’, is all about how mum is wonderful for buying just about every consumer electrical gizmo you could imagine that doesn’t begin with an ‘i’.

There’s a laptop and an HTC Android phone. The first kid proudly holds up his X-Box Kinect unit like it’s the ‘fragrances that are also useful in scrabble’ shop’s entire stock of Myrrh.

It ends with a little girl, her ruby cheeks poking out from between the just-closed curtains, reminding us that the mark of a wonderful mum is the quality, measured in expenditure, of her gifts. And that we should, therefore, measure our own maternal love by that scale alone.
The add stops short of having Santa flying overhead trailing a banner from his sleigh that reads, “MONEY = LOVE, don’t forget kids!” But that mantra is sewn, inextricably, into the underpants of every precious, seasonal second.

I’m not against Christmas, contrary to the view of the parent of a child that approached me once and asked if I was Santa’s sister because his mum has said I was ‘Aunty Christmas.’ I love Christmas. I come over all Jimmy Stewart as soon as Summer’s over and I can’t hear the opening bars of ‘Silent Night’ without bursting into tears and wanting to join the Sally Army. I just hate this unnecessary and inexplicable extortion every year.

I don’t have kids, and I’m sure some of you are thinking, “If your wife’s as tight as you are, you never will!” But my sister does. My sister is a single mum with two sons. The eldest is 22 now so his festive focus has fully relocated from under the tree to under the table but his kid brother is 14. Old enough to want everything but too young to care what it costs.

When his mates are all tweeting photos of their new PS3 on their new ipads and running round to his house in their new trainers to make sure he got it because he hasn’t ‘RT’d’ yet, he’s going to hide his market versions- the ‘iPhone’ and the ‘Games Centre Play Console- with 7 game cartridges included!’ And look at my poor sister like she’s picking the last of Santa’s gonads from between her teeth just because she couldn’t get herself into deep enough debt to avoid the emotional scarring a shit present can have on a teenager.

He won’t really because he’s a good kid. He’ll do what I used to do and pretend it’s just as good as the thing you really wanted then find a way to hide it long enough to casually mention you played with it so much it broke, and suffering the inevitable comeback, “That doesn’t just apply to toys you know!”

I still remember desperately faking happiness when the ‘Evil Knievel action figure with interchangeable costumes and multi-trick stunt bike’ I’d asked for turned out to be a small plastic moulded ‘figure-on-bike’ with a big glued seam running down the middle that you revved up and watched career in a short curve into the nearest skirting board. Not to mention picking the stitching from the fourth stripe on my ‘same as Adidas’ trainers before I got to school only to be told by my jeering fellow students, as I knelt down for assembly, that they had different coloured soles- not from genuine Adidas trainers but from each other.

That was nearly 30 years ago. The pressure’s ten times worse now.

Why? Where did this law that you have to spend a couple of hundred quid on gifts come from?
Not the Nativity, that’s for sure. Its been sacked by Littlewoods in favour of ‘Grange Hill does the Ludovico Technique.’ (Google anyone?) And I’m sure Jesus would be spinning in his shroud, if he was still dead, at the thought of his birthday being hijacked by everyone else. Imagine if everyone got presents on your birthday. It’d certainly take the sheen off it I’ll bet, and that’s my point really. Birthdays are personal and they only involve one person.
Mark Twain said, “The two most important days of your life are the day you are born and the day you find out why.” I agree with the first part, although the day I heard my mum say, “by the time I realized it wasn’t wind it was too late,” doesn’t even make my top 100, but you get my point. Presents on birthdays make sense! Let’s just do that shall we?

Here’s what I think we should do: Everyone, at the same time, stand up and say, “There won’t be any presents this Christmas.” Then enjoy a huge sigh of relief and start, for the first time in a long time, to really look forward to the holidays.

It’s important that everyone does it at the same time and sticks to it, which will be hard to organize and even harder to check, and there will be mass disappointment for every child in England but it will pass when they all realize they’re in the same boat and they’re not missing out.

Now imagine the Christmases that will follow. Everyone can just work until the holidays start and then enjoy time with their friends and families. Boyfriends and husbands won’t have to reduce themselves to asking the teenage assistant behind the perfume counter for suggestions because they’ve forgotten what their wife’s favorite is called and EVERYTHING just smells of perfume!

It can feel like a real holiday for a change and, once it’s all over, there won’t be a national depression as everyone spends January skint, cold and about as festive as Scrooge’s warts. Better still, single parents or families that have little or no income won’t have to worry that their kids will hate them and/or get bullied at school. Loan sharks, feeding on the poor and vulnerable in in the less affluent areas of the country, will have to find other ways to ‘help people out till pay day’.

A weight of unnecessary obligation would be lifted from everyone and we would all be no less festive for it.

As for Christmas morning? Imagine getting up (whenever you like- you’re on holiday remember) and strolling downstairs to greet your family with a hearty breakfast and a mulled wine and hugs all round. Elders can talk to youngsters while the crisp winter morning air draws the first flame from the Yule log. Christians can take a moment for silent reflection while the rest of us slap a bit of Slade on and work up an appetite for the largest and best meal of the year. Happy in the knowledge that it’s cost you no more than all the good will and genuine Christmas cheer you can muster.

Sounds great to me.

This Month's Magazines; September: Adele Takes Vogue Cover, Angelina Jolie Takes Vanity Fair.

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This Month’s Magazines; September: Adele Takes Vogue Cover, Angelina Jolie Takes Vanity fair.

This month’s magazines are a bloody good read. It has taken me hours to get through them, here is my monthly round-up.

[Note: Magazines are published a month in advance, so September’s magazines are actually October.]

On the cover of British Vogue is the beautiful and gifted Adele is breaking boundaries and stereotypes. Glamour magazine previously had her on the cover. There is a good interview with Adele inside where she states that: “I’ve seen people who want to be thinner or have bigger boobs, how it wears them down- I don’t want that in my life”.

There is an article on legendary designer Azzedine Alaia and Silvia Fendi. Christa D’Souza writes about crying and Alexandra Tolstoy writes about finding the right couture for the Royal Wedding,

Good articles on David Hockney and Ceclia Birtwell’s collaboration and a good Lara Stone editorial.

There is a now infamous interview with Wendi Murdoch, where she revealed that Tony Blair is godfather to one of her and Rupert’s daughters. The interview gives a good snapshot of a women who rarely gives interviews, and clears up some of the rumours about her.

Vogue has a special on the English women and her style. Of course, Kate Middleton, The Duchess of Cambridge features, so does Diana Athill, the England Cricket Team, Amy Childs, Jane Birkin, Tacita Dean, Felicity Jones, Julia Sarr-Jamois, Florence BB (Brudenell-Bruce, Prince Harry’s ex).

Also: how to get ride of freckles and lots of Autumn clothing.

Vanity Fair has one of my favourite actresses on the cover, Angelina Jolie. Jolie interviews well and talks about her directorial debut, In The Land of Milk and Honey. She also wrote the screenplay. Jolie says: ‘I have never felt so exposed. My whole career, I’ve hidden behind other people’s words.”. She also says that she is ‘not pregnant, I’m not adopting…[there’s] no secret wedding.” and says that she doesn’t really watch films and falls asleep watching them; “There is some of my own I have never seen.”

There is a interview with Scott Schuman and Garance Dore of the Sartorialist show Vanity Fair their cool stuff, Elizabeth Olsen and Jane Lynch are interviewed in the Vanities section, There is articles on Comic-Con, the News Corp/Murdoch Hacking Scandal, Vivi Nevo, The 2011 New Establishment is a brilliant annual list and is very interesting reading this year; lots of change.

Conrad Black talks about his experience of being in prison, the amazing Joan Didion has written another book, this one on the death of her daughter, there is a very good article on publishing, China and Ernest Hemingway.

Tatler have Zara Phillips on the cover and a post-wedding interview. She denies that the Duke of Cambridge sang Bon Jovi records at her wedding reception and talks of her love of horses.

Angela Missoni gives her mood board (design influences), Morth models watches (yes, really), The Serpentine Summer Party is covered – with lots of pictures, there is an article on the ‘thinking girl’s crumpet; Nouriel Roubini and Alain De Botton feature on it, Balthazar Fabricius talks about launching bookies Fitzdares and being in debt to Zac Goldsmith to the tune of £50,000.

Film producer Stephen Evans is interviewed, and riders are photographed with their favourite horses. Elon Musk and Talulah Riley talk of their love, One Direction are interviewed (weird choice for Tatler) How the Rich stay safe bodyguards and mercenaries apparently) and how to clear up bad skin. Tatler also comes with their annual Schools Guide.

Glamour has Britney Spears on the cover and a comeback interview inside.

Lara Stone is interviewed, there is article on the horrendous London riots, how to tweet proof your career, how Cameron Diaz gets her body, the Truth about Fashion Week, a message to the Norway victims from a Columbine survivor, there is a big section on dating and finding love, Rob Brydon interview, the Downtown Abbey girl’s are interviewed; as are the Made in Chelsea and The Only way is Essex girl’s and Sofia Vergara.

Orlando Bloom, James Cordon, Matthew Macfayden, Luke Evans, Taylor Lautner are also interviewed in the TV special.

The new style bloggers are interviewed, stars give their beauty secrets, Eddie Campbell and a good article on when it is the right time to have a baby.

PART TWO IS HERE

 

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Labour’s Debt Legacy

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You (every UK household) will pay £2,128 in taxes this year just to cover interest debt repayments!

That’s not to pay off the debt, that’s just to cover the interest. That is Labour’s legacy.

The worst part is this amount is set to increase as the national debt continues to soar thanks to the estimated £146billion budget deficit this year (and that’s after the cuts)!

In 1997 Labour inherited a budget that was in balance and set to move into surplus. That is a budget deficit of £0. With the budget deficit moving to a surplus the Labour government wasted a valuable opportunity to pay off some of the UK’s debt.

It’s so infuriating that that £2128 in taxes we’re all paying today to cover interest debt repayments need not exist at all.

What the previous Labour government actually did was go on a massive spending spree with borrowed money. Government spending soared from £309billion in 1997 (40% of GDP) to £647 billion in 2010 (52% of GDP). The Labour government mortgaged Britain’s future to achieve political success in the short term. Ultimately their actions were profoundly irresponsible and selfish. ‘Weak politicians have bribed voters with endless amounts of borrowed cash’

The UK now owes over £31,000 for every person in employment!

See the debt bomb for an idea of the scale of the debt and how fast the debt it is increasing http://www.debtbombshell.com/

No one wants these cuts. But we need to except that we can’t spend more money than we have. If so much money wasn’t going on interest re-payments there would be no need for cuts. But the fact is Labour has created this debt and we can’t just ignore it.

Quite frankly it was sickening to watch Ed Milliband giving a speech to anti-cuts protestors, when it was his party who got us in this situation in the first place.

His attempts to link the anti-cuts protests to the anti-apartheid movement and the suffragettes were ridiculous if not offensive.

Let us not forget the lessons this has taught us. We all need to take a longer term view. Politicians but us voters as well. And there needs to be more transparency. Personally I found George Osborne’s recent budget much easier to follow than the old Brown ones.

The fact is the previous government spent money it didn’t have and now you have to pay it off. Let’s learn the lessons. Don’t let any government do it again.

http://www.telegraph.co.uk/news/politics/7495214/Budget-2010-Relentless-march-of-state-spending.html
http://www.ukpublicspending.co.uk/downchart_ukgs.php?year=1990_2011&state=UK&view=1&expand=&units=b&fy=2008&chart=F0-total&bar=1&stack=1&size=l&color=c&title=Overall%20Public%20Spending%20Chart
http://www.debtbombshell.com/
http://www.bbc.co.uk/news/business-12830224
http://cluaran.free.fr/debt.html

Twelve Top Tips To Cut Household Costs. {Money}

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January is always the cruellest month. After the Christmas blow out, funds are short and everything is more expensive. This week is supposed to be the financially toughest with Christmas credit card bills plopping through the door and just another two weeks to go till payday. Then there are the long nights and the cold weather to add to our joys!

To help, Frost has got financial expert, Jasmine Birtles, bringing you 12 practical tips on how to manage your finances and cut down your motoring costs by spending less and making a few simple changes to your routine.

So, fight back at the seasonal and economic gloom and use these tips to make the most of your money this month and for the rest of the year.

1. Save on motoring costs. Motorists are really feeling the pinch at the moment. Swap your current car for a smaller, cheaper, more fuel-efficient version. If it has very low emissions, you will also save on insurance, car tax and some residents parking schemes. Keep the tyres pumped up at all times and try to drive at a smooth, constant speed as this reduces your fuel consumption. For more information on smarter driving tips visit www.shell.co.uk/fuelsave. Making the right fuel choice can lead to significant savings each year. Shell FuelSave Unleaded & Diesel are formulated to save you up to 1 litre per tank* at no extra cost, helping you to save fuel and money every time you fill up.

2. Get as much as you can for free. Use freebie sites (wisely – there’s a lot of rubbish to sift through!) for free samples of all kinds of things. Also, get into mystery shopping for free restaurant visits and supermarket shopping trips – make sure they are legit, though, like TNS-Global.com or JKSMysteryshopping.co.uk. Get a holiday nearly free by swapping your house with someone in another country. Try the website Homeexchange.com for an amazing selection of homes all round the world.

3. Share and swap with friends and neighbours. Get together with your friends and neighbours to save money. Have a swap shop every now and then where you and your friends swap clothes, accessories and even unwanted gifts. Also, share lawnmowers, power tools and other big-ticket items with neighbours. Bulk-buy food and household goods at the Cash and Carry and share them out with neighbours so that you all end up paying less.

4. Sign up to bargains. There are loads of voucher sites and bargain newsletters that will send money-off deals and vouchers into your inbox every week. Just be discerning about which deals you go for. Sign up for free to the Moneymagpie free weekly newsletter for exclusive deals you can’t get anywhere else [http://www.moneymagpie.com/newsletter-subscription/]

5. Use loyalty cards. If you’re going to spend money you might as well get something back for it. If you use loyalty cards like the Boots Advantage card, make sure you get the most out of them. Boots commonly has ‘mega weekends’, either online or in-store where you get 1,000 extra points (worth £10). When one hits, it’s worth collecting together everything you were planning to buy in Boots to grab the excess. With fuel prices increasing, it’s worth looking at how you can save money on fuel. Shell runs a loyalty scheme, Shell Driver’s Club – you’ll receive 50 bonus points on first registration online and additional points every time you fill up at Shell. Points can be exchanged for money off Shell fuel vouchers – 500 points gets you £2.50 of vouchers.

6. Be clever with your credit cards. If you have a nasty Christmas debt on your credit cards, switch to a 0% deal such as the 17-month offer from Barclaycard or a low lifetime balance transfer card such as MBNA’s card which offers 5.9%. Or, if you pay off your debt each month, get a card that rewards you for spending. Try Barclaycard Freedom where you can earn up to 1% ‘Reward Money’ of your purchase price at over 20,000 participating retailers. You can then redeem it at participating retailers for money off at restaurants and high street retailers. Visit barclaycardfreedom.co.uk for a full list of retailers

7. Do a budget and stick to it. It sounds boring, but a budget is your family’s weapon against the money monster. You can even do it on the back of an envelope. Just add up the money that comes in each month then take away from that all the bills you have to pay to keep the roof over your head, and body and soul together. Once you know what you’ve got left over, you just divide that amount by four and make sure you don’t spend more than that each week. That will keep you out of expensive and miserable debt.

8. Make your home pay for itself. If you’re struggling to keep up with the mortgage, bring in extra cash by renting out a spare room. You can make up to £4,250 a year tax-free by doing this. Or just rent out your driveway by putting it on Parkatmyhouse.com. You could even make megabucks by offering it as a film set. Try registering with Lavishlocations.com.

9. Save on food bills. There are loads of ways of cutting down your food bill each week. Switch one meat dish per week to a vegetarian one that is cheaper. Get tips from Lovefoodhatewaste.com on how to make the most of what you’ve got. Shop at street markets as they are generally 30% cheaper than supermarkets. Go down a brand with food in tins and jars – you won’t notice the difference with most of them.

10. Shop around to save. It goes without saying that you could save £100s on your insurance, utilities and other bills by using comparison sites before you sign-up. Also, though, use sites like Pricerunner and Kelkoo to research gadgets like washing machines, TVs and lawnmowers. You can even save on removal costs by using the website Anyvan.com where ‘man-with-van’ operations and removals firms bid for your job. Find bookkeepers, lawyers and household helpers through Peopleperhour where all kinds of professionals bid for your work

11. Buy secondhand. Now that VAT is at 20%, the best way to avoid the hike is to buy things secondhand, particularly big-ticket items like cars, furniture and electronics. Use eBay, Gumtree, your local paper and family forums such as Mumsnet to buy things secondhand. Quite often, items just a few months old can be half price.

12. Be green. Get into green living and you will definitely save money. Mend clothes and gadgets where you can rather than buying new ones. Cut down on electricity, and your carbon footprint, by avoiding the tumble dryer and hanging clothes out to dry instead, using the ‘off’ switch when you’re not using electronic equipment and keeping the lid on pans when you cook.

* Based on a minimum tank size and fill up of 50 litres. Comparison between a standard gasoline and that same standard gasoline containing our instantaneous fuel economy formula; urban cycle comparison between a standard diesel and that same standard diesel containing our instantaneous fuel economy formula. Actual savings may vary according to vehicle, driving conditions and driving style.