Posts Tagged ‘finance’

Silver Lining for Teenagers

Tuesday, April 20th, 2010

The recession of 2008 seems to have had a silver lining in that teenagers are now more financially aware than ever before. According to a new research from NatWest, 67 per cent of youngsters aged between 12 and 19 felt that they have better control over their money as a result of the credit crunch.

The study has also thrown up some more interesting results. First, 33 per cent of boys are attempting to save most or all of their money, while 24 per cent of British girls are now aware of the importance of saving for a rainy day and have been putting cash in their piggy banks.

The study validates the saying that people learn more from adversities and more so if the adversity affects them personally or people who are within their circumference of contact. Basically, more than anything, the study shows that young people will be more willing to learn when education is relevant to them. This is because it makes it a lot more interesting.

The recession may be officially over but it will still take some time for financial normalcy to return. The fact that people have learnt some lessons, albeit the hard way, will help them be prepared for the future. But for now, the students who are facing a bad debt situation can seek debt advice to understand how they can repay their loans.

As always, ClearStart is here to provide debt help and advice and our counsellors are more then happy to talk with you regarding your situation and offer a suitable debt solution. I hope you enjoy the remainder of the week and haven’t been disrupted too much with the volcanic ash.

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Posted in Money, Recession | No Comments »

Bankruptcy a growing concern for pensioners

Wednesday, April 7th, 2010

Welcome to the latest edition of my blog and I hope you all had a pleasant and relaxing Easter Break.

Earlier this week, I read a research report by Prudential, the financial management and investment company. One of the points that stood out the most is that people retiring this year are extremely concerned regarding the amount of money their pension will be worth.

So what does this mean in real terms? Pensioners retiring this year believe they will receive £1,270 a year less than those who entered retirement in 2009 and more than £2,150 less than those who retired in 2008. Almost one fifth of pensioners expect to receive £10,000 or less.

Andy Brown, director of investment funds at Prudential, said that the recession has clearly had a major impact on peoples’ expectations of their pensions and they had adjusted their expectations as a result of the economic turmoil of the last couple of years.

Added to this is the fact that there has been a drastic fall in housing prices and those who were depending on their home equity to help them manage their finances are now facing a negative equity situation.

Again, this report highlights the need for people regardless of age to act quickly if the burden of debt is becoming unbearable. Remember – help and advice is freely available. ClearStart is here to provide expert debt advice for different debt solutions including IVA and Debt Management Plans.

On a lighter note, if you are a golfing fan – enjoy the Masters this week!

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Posted in Debt Advice, bankruptcy, debt | No Comments »

Insolvency numbers hit a record high

Tuesday, March 23rd, 2010

It will come as no surprise to many of you but the number of people who filed for bankruptcy hit a record high in the last three months of 2009. The figures from the Insolvency Service reveal that a total number of 134,142 people became insolvent over the course of the year out of which 35,574 people were declared bankrupt between October and December. Without doubt, these figures are startling and certainly food for thought.

Of course these numbers dwarf the figures from the last recession in the 1990s when 36,800 insolvencies were recorded in 1992, a time many of us still remember and hoped we would not see again. That said, these statistics unfortunately point towards a similar trend of that of the early 90’s, this time with bankruptcy numbers likely to hit the 145-150,000 mark in 2010.

Bearing in mind all this, one would suspect that insolvency practitioners are very busy at the moment, however, it is important to point out that despite the rise in numbers, the banks are still monitoring the situation. And while most banks are not extending credit, they are not calling in the debts either. Similarly, even though the Inland Revenue has started to exert some pressure on companies that have not paid their PAYE/NI and VAT bills, they are not as yet, adopting a very aggressive stance. With that being said, the general feeling amongst the debt management companies and insolvency practitioners is that this might just well be the quiet before the storm and that post election, the country would witness a dramatic rise in the insolvency cases.

So what has contributed to the rise in the cases of bankruptcy? The 2008 recession, is of course, the most important factor. The adverse economic times has resulted in a large number of people losing their jobs and consequently their inability to pay off their debt. The double digit fall in housing prices have also added to the woes of people who had traditionally depended on the equity in their homes to bail them out of difficult times. Another interesting finding is that there has been an increase in the number of people who have had multiple marriages. This is because they have had fund ex-wives, ex-husbands and kids when the marriage broke down, all this taking a heavy toll on their finances.

If you find yourself in a bad debt situation, then you are not alone. The figures quoted in this blog alone highlight then seriousness of debt in this country. What ever be the reason of your financial crisis, remember that at the end of the day, there is always a way out. You can seek debt advice to understand what options are available to you.

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Posted in Insolvency | No Comments »

Enjoy Christmas on a budget, to avoid a financial hangover in the New Year!

Monday, December 14th, 2009

The festive season is without doubt the biggest drain on finances during the year and can very easily spiral out of control, leaving many people with a mountain of debt in the New Year.

At ClearStart we are committed to helping people avoid serious debt problems and with Christmas fast approaching, here are a few handy hints and tips on how to enjoy Christmas on a budget, which hopefully should serve you well both this Christmas and many more to come!

  1. If you’re cooking for a crowd on Christmas day, write up a list of everything you need and ask everyone to help out.  That way you dramatically cut down on the expense of Christmas dinner and all the trimmings.
  2. When visiting a supermarket for that all important Christmas shop, make sure you prepare a shopping list beforehand and stick to it.  Don’t be tempted to purchase those unnecessary luxury items.
  3. Shop around for presents. Try shopping online. There are some great bargains to be had, very often you can compare prices on line and find some good savings – very often postage and packing is included in the price and you will save on petrol and parking.
  4. If you exchange gifts with work colleagues, why not suggest a ‘Secret Santa’ with a limit you can all afford?  You will all have some great fun unwrapping the presents and not have to spend more than you need to.
  5. When buying presents, have a budget and stick to it! Don’t get into debt by trying to buy something you cannot afford.
  6. Don’t be tempted to skip paying your bills in December to give yourself extra cash.  Remember you will only have to pay them in January and could also incur some nasty late payment charges.
  7. Consider joining a savings club for Christmas next year – you can spread the cost of Christmas over 12 months and ensure you and your family have a few less things to worry about at Christmas!

Please remember that if you do find yourself in financial difficulty in January, don’t ignore the problem and hope it will go away.  It’s vital that you seek the advice of an impartial debt solutions company such as ClearStart, to help get your finances back on track and avoid having to look into a more severe debt solution such as a Debt Management Plan or an IVA.

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Posted in Debt Advice | No Comments »

Could current consultation finally see debt management plans regulated?

Thursday, December 3rd, 2009

There are a range of debt solutions available to help solve debt worries, each specifically designed for different levels of debt, the number of creditors and personal circumstances.  Our debt solutions table gives a handy overview of what options are available and I’d strongly recommended seeking impartial advice from a company like ClearStart, otherwise you could end up being financially worse off than you are now.

For IVAs, there is already a strict protocol for providers to adhere to, which ensures fair and consistent practice throughout the industry.  However, for Debt Management Plans (DMPs), which are the dominant force in the insolvency industry, there is currently no regulation whatsoever.

 A well-run DMP by a company such as ClearStart is definitely worth considering for anyone looking to get their finances back on track. Negotiations are done on your behalf with creditors to arrange a repayment plan at a rate you can afford and in many instances interest is either frozen or applied at a much reduced rate. Once the plan has been agreed, you simply make one easy monthly payment to your debt management company who then distribute it to your creditors until your debt has been cleared.

 In response to the growing debt problem and bad practice by some DMP providers, there is a consultation process currently underway which is being run by the Ministry of Justice, the outcome of which may well be increased regulation of Debt Management Plans – a move which would be welcomed by many in the industry and give much needed peace of mind to anyone entering into a DMP.

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Posted in Debt Matters | No Comments »

The importance of seeking the correct debt advice!

Wednesday, November 4th, 2009

For anyone experiencing serious debt problems, a well managed IVA or Debt Management Plan (DMP) can both be effective ways of climbing out of the debt trap and back on the road to financial recovery.

It is vital however that you choose a company who offers impartial debt advice best suited to your individual situation. If you don’t, you could be offered a debt solution which is completely unsuitable for your needs and destined for failure, which sadly so often happens and has in fact been highlighted in a recent article in the Observer.

When entering into any debt solution, its success relies on keeping up with the agreed monthly payment.  Any reputable company will make sure that you have enough money to live on each month, whilst also ensuring that your creditors are receiving an acceptable return on their debt.  Once you have reached the end of your debt repayment plan, you are free to start afresh, rebuild your credit file and take control back of your finances.

Unfortunately as I previously mentioned, sometimes people fail with their plan leaving them with no option than to go bankrupt or look at alternative debt solutions. In many instances the money they have already paid into the failed plan has been taken up with fees, so they are still stuck with the original debt and deeper in financial ruin.  

The main reasons for failure is when the customer is given an unrealistic amount to live on each month, or they have been ill advised which solution to enter, so the importance of finding a reputable company with your best interests at heart, cannot be stressed highly enough.

For an ‘at a glance’ look at the type of debt solutions available and which one may be suitable for you, I’d recommend visiting www.clearstart.org/debt-solutions/product-suitability, although please remember no two problems are the same and we wouldn’t be able to make a confirmed recommendation until you had spoken to one of our advisors.

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Posted in Debt Advice | 4 Comments »