Tag: bank

Guest Post: 7 Reasons Why You Should Get A Grip On Your Finances

here’s no denying the country is in a pickle. The latest figures show that 1694 workers are getting made redundant every day and the downturn is the longest the UK has seen in more than 100 years.

Little surprise then than many households are turning to borrowing money to try and make it through to payday and keep a roof over their head. However, spiralling debts can be difficult to escape from in the long term, even once the country’s economy eventually picks up.

It can be very tempting to rely on credit cards and loans to help make things easier but here are seven reasons why you should sort out your finances and steer clear of debt where possible.

1. You will end up with less and less money. Unless you are lucky enough to secure a 0% interest credit card, the charges added to money borrowed can make the amount repayable much more than the original debt. This means that more and more of your income will be swallowed up by repayments, leaving you increasingly reliant on borrowing, a vicious circle, which is almost impossible to escape.

2. Existing on borrowed money encourages you to live beyond your means. In the majority of cases, it is possible to survive on the income you receive, even if you have to make some adjustments to your lifestyle. Relying on payday loans and credit cards stops you making the necessary spending cuts and allows you to spend more than you have.

3. It is difficult to keep track of what you are spending. If you simply slap everything on your card, you may well be in for a nasty surprise at the end of the month. By paying for everything with cash, or your debit card, you can keep tabs on your bank balance throughout the month.

4. You will be seen as a poor credit risk. If you have lots of credit cards which are at their limit, many lenders will be less likely to offer you more finance – a real problem if you are trying to get a mortgage or a car loan. More recently, one lender has said that any applicant with a history of payday loans will automatically be refused.

5. You might sleep better. Having to survive on a reduced income is not much fun but is less worrying that juggling money to pay off your lenders. Anxiety over how to pay debts is one of the leading causes of insomnia.

6. Your financial situation will improve. Your financials will improve more quickly when the economic downturn in the country is over. Once the double dip recession ends, there will be more job opportunities and cheaper goods in the shops. If you are still crippled by debt repayments it will take a lot longer to feel the benefits.

7. Sorting finances now could help to improve your financial situation in the future. Even if you aren’t waist-deep in debt, it can be easy to blow money by being disorganised. Taking the time to sort through your finances, cancel unnecessary direct debits and draw up a budget may well just be enough to make life more comfortable.

Baines & Ernst is a leading provider of debt help and advice to people with money troubles. The company has helped over 100,000 people to escape the pressures of debt and provide solutions including Debt Management Plans and IVAs.

August 31, 2012
Guest Post: 7 Reasons Why Your Teenager Needs To Know About Money

When your son and daughter was born, they were probably a smiling, gurgling bundle, quickly growing into an angelic child who never tired of cuddles. Now a few years have passed and they have transformed into a stomping, grunting teenager who would sooner poke their own eye out than have a serious conversation with you.

However, as their parent it is your responsibility to have a conversation with them and make sure they know all the facts. No, not the birds and the bees…..something far more tricky; money.

You may well flinch at the idea but they need to be fully equipped to venture out into the world. Here are seven very good reasons why you should take a deep breath and sit them down.

1. If they don’t find out from you, they will have to get the facts from somewhere else. And that means you will have no way of knowing whether they are being given accurate or honest information. Banks have proved themselves as less than trustworthy in giving out advice. If you want to be certain they get an honest view, you need to do it yourself.

2. Letting them wander into the world of credit without a financial education is like sending a lamb to the slaughter. Mobile phone companies and rogue lenders will take advantage of your child’s naivety and they could end up signing a contract which costs them a lot of money.

3. And if they do get in financial difficulty, whose door will they come knocking on? Whilst there are many altruistic reasons to make sure your child knows what they are doing, it also means you are potentially protecting yourself from having to bail them out of trouble.

4. It isn’t easy to work out what everything means without a bit of help. There are some things in life which are simple to understand without any help. The world of finance isn’t one of them. Contracts are full of jargon and impossible to make sense of without someone explaining all the terms. Did you know what APR meant before someone told you what it meant in plain English?

5. Teenagers tend to make impulse purchases. If they don’t appreciate how long it takes to pay back a credit card and how much extra interest they will have to pay, they will max out their card almost as soon as they get it.

6. If your offspring get the chance to learn about money as soon as possible and gradually put those skills into practice, by the time they have to make big financial decisions, they will be more adept. This is particularly relevant if they are planning on going to university as managing on a tight budget will be a key skill.

7. If you take the time to talk through the subject calmly – and perhaps share some of your past mistakes, your son or daughter might feel more at ease approaching you in the future. Struggling with money problems is much more difficult if you don’t have anyone to discuss the issue with and by making the first move and showing that everyone can make mistakes, hopefully you can avoid your children trying to cope with any problems alone.

Baines & Ernst specialise in helping people clear debt with effective solutions including Debt Management Plans and IVAs. Since 1996, Baines & Ernst have helped over 100,000 escape the pressures of debt.

August 17, 2012
Guest Post: 7 Reasons Why A Credit Card Might Save Your Life

1. It Just Might Save Your Marriage Someday. Women love to shop. It is part of their genetic makeup. If you are married to a woman who thrives on shopping, and you deny her the fulfillment of this instinctive, natural urge, you could very well end up causing very real marital problems. You know the old saying “hell hath no fury like a woman’s scorn”? That phrase was coined by a department store. So when your wife finds a way to spend all of your money, you will be owing a debt of gratitude (and interest and fees) to the best credit card companies.

2. Your Parents Refuse To Raise Your Allowance To Keep Up With Inflation. You need money to go out with your friends. You need money to treat your significant other on a date. You need money to put gas in your (parents’) car. You need money to buy the latest gadgets and accessories and to keep up with all of the stuff that your friends have. But when your parents refuse to give you the money to fund your lifestyle, and you can’t (or won’t) find a job, then a freshly minted credit card, made for students, can be a godsend.

3. You Get Trapped In An Elevator Or Locked In A Room And Can’t Get Out. Credit cards are notorious for getting you trapped… financially. But they can also help you get out of traps… physically! These slender little shards of plastic can help you unlock doors and windows, and can help you to pry open practically anything that needs to be opened. Who would have thought that a credit card just might help you get out of a difficult situation rather than get you stuck in one.

4. You Need To Do Your Part To Save The Economy. The economy is in shambles. We’ve all seen the devastation caused by the collapse of the housing market and the implosion of the job market. You might think that the prudent thing to do in during these tough economic times is to hunker down and keep tighter control over your money and reign in your spending habits. But if you do that, the economy is just going to worsen, isn’t it? If we want the economy to recover, then we all need to put our confidence back into the economy and start spending again. So get that credit card out and start spending, and do your part to save the economy!

5. Using Your Credit Cards Is A Matter Of National Security. One of the most sacred institutions of the United States is the pursuit of the American Dream. Indeed, keeping the American Dream alive is one of the stated goals that our politicians in Washington DC have been emphasizing in their attempts to revive the economy. Therefore, it is your patriotic duty as an American to keep the American Dream alive by keeping the credit card companies in business. After all, how long can we expect them to survive on government bailouts? Their bailout should come from the private sector. And what better way to help keep the credit card companies in business than to use your credit cards?

6. The World Is Coming To An End And You Need To Safeguard Your Cash. The Mayans predicted that the world will end in 2012. Scientists claim that an asteroid will be coming close enough to impact the earth during this century. World War III could happen at any time now. If a run on the banks would occur and people start hoarding cash, you could always rely on plastic to help you survive the economic uncertainty that lies ahead.

7. When You Run Out Of Money Every Month, At Least You Will Have The Credit Cash Back Rewards To Help You Keep Afloat. If you are living paycheck to paycheck, using one credit card to pay off another every single month, then at least you should be looking forward to your credit card cash back rewards! When you find yourself constantly running out of money every month, at least you know that all of the money you spent on your credit cards, keeping a balance and accruing interest, will pay off when you get those cash back rewards every month! A credit card can really help you out when money is tight!

January 25, 2012
7 Reasons To Answer The Phone By Saying ‘Goodbye’

There are moments in life, when you wish you had not picked up your phone. And then there are moments when you don’t answer your phone and you wish you had. Thanks to 7 Reasons, that dilemma is now over. Here are 7 Reasons to say ‘Goodbye’ as soon as you pick up that phone.

1. Cold-Callers. Double-glazing, health insurance, wills, bouncy castles, grandmothers. People will try and sell you anything these days. And, no matter how much you try saying it, ‘no’ just doesn’t seem to work. Get in a ‘goodbye’ straight away and while they are baffled by your audacity, hang up.

2. Barclays. I am using Barclays as an example as I have had first-hand experience of their call centres. I am sure, however, you could substitute the company for any other business that has it’s call centre in a foreign clime. Barclays had the foresight to base its call centre in the subcontinent. Which would have been absolutely fine if it had then employed people who could speak English adequately. Unfortunately, they failed in this pursuit. If indeed it ever was a pursuit. I’m sorry, but I simply can not understand what the hell they are talking about half the time. Actually, make that ninety percent of the time. And that is not an environment conducive to conversation. It’s like a Liverpudlian meeting a Geordie in Birmingham. Painful. Given that I am not going to understand them and they are not going to understand me, it’s worth halting the proceedings before they’ve even started.

3. Sanity. Some people – normal people – have a habit of talking to themselves. They can’t help it, it’s just natural. No amount of determination, threat or hypnosis can stop them. Which is where we come in. If you suffer from this narcissistic problem, call yourself. As soon as you answer, say ‘goodbye’. It will be the closure you have been searching for.

4. Tossers. These are the people that just love to have the last word. So, if you get the last word in first, you’ve won.*

5. Reverse. Given that the most important details are spoken about at the beginning of most phone conversations – and they are then forgotten once you have discussed sport/shoes, sport/the next door neighbours and sport/Eastenders – it is surely worth reversing the whole event. Start by saying ‘goodbye’, then talk about sport/rubbish, then the important item and then finish with a cheery ‘Hello’ or another form of salutation.

6. It’s Over. Splitting up with your partner is never a particularly joyous occasion. Even if it means moving on to better things. Finding the right words and a suitable environment to break-up in, is not a straight-forward affair. Sure, the advent of facebook and the relationship status option has made things easier if you are shallow, but what if you’re not? What if you are someone who agonizes over such a situation? Well, the next time they call, it’s time to say ‘goodbye’. And when they phone back, say it again. Repeat until they get the message. (You could also text them).

7. Bargains. Who knows how the person who has just called you will react when you say ‘goodbye’, but if they misunderstand what you are saying they may rattle off a load of ‘good buys’. As a result, you may end up investing in a BMW, a George Foreman Lean Mean Fat Reducing Grilling Machine or a slice of carrot cake. And no one can really complain about that, can they?

*Sometimes I astonish myself with my own genius.

October 14, 2010
7 Reasons That The Westbourne Bank Protest Was Stupid

In Britain, it’s often said that we’re not very good at protesting, and we’re always compared unfavourably with the French in that regard. But now, public protest in the UK has reached an all-time low because, last weekend, several men in Dorset bricked up the door of their local bank in what they claimed was a, “…protest against the reluctance of banks to lend money to small firms”. Here are seven reasons that their protest was stupid.

1. They Went To The Wrong Bank. The protesters wanted to brick up the door of the Westbourne branch of Natwest Bank because it had refused the group’s ringleader, Cameron Hope, a business loan. But, when they arrived at the Natwest, the police were nearby, so the group decided to brick up the door of a different bank instead. Barclays. Now, if I do something that irritates my wife involving…ooh…I don’t know…umm…a bicycle, for example, and I’m not there when she finds out about it – or I’m standing near the police – I wouldn’t expect her to go and yell at a different man. Because that would be crazy. And irrational. And yes, it would be much better if she did that, but that’s not the point. Bricking up the door of a bank that they didn’t have a legitimate grievance with is just mad. And counter-productive.

2. Prudence. Okay, so the bank turned down Cameron Hope’s loan application. What should he do? Scrimp and save, perhaps. Look at alternate ways of raising capital, or go to a different bank. I’m not a businessman, but I wouldn’t choose to demonstrate my financial acumen and creditworthiness to another bank by frittering my money away on costly building materials and then use them to construct a monument to my own profligacy on their doorstep. Because that’s not going to help. And it’s a lot of effort. He could have achieved the same effect by setting fire to twenty pound notes in front of the bank manager instead. Far less trouble.

3. Put Simply. The more money the bank has, the more they’ll lend, making it more likely that you’ll get a loan. Conversely: The less money the bank has, the less they’ll lend, making it less likely that you’ll get a loan. So if you brick the door of the bank up, customers can’t take their money to the bank, and then the bank can’t lend it to you. I realise that this is a highly simplistic, microeconomic description of banking, but I’m addressing it thus, to the protesters because of…

4. The Quote. The quote tells us that the protesters don’t understand how banking works at all, because one of the group stated to journalists, “You go into a bank and there’s nothing there, the bank’s open but the safe is shut.” This is his summary of his grievance with the banking system; and it doesn’t really bear much scrutiny. Because of course there’s nothing there. What does this man expect to find in a bank? Displays of money? Shelf upon shelf of alluringly-arrayed notes and enticing floor-displays brimming over with a boundless abundance of shimmering coins? And of course the safe is shut. It’s a safe. That’s its job. If the bloody things weren’t meant to be shut they’d be called something different. They’d be called unsafes. Or vulnerables.

5. Helping The Bank. The protesters bricked up the door of the bank on a Sunday: A day when all banks are closed. So this had no effect on the bank’s ability to trade. In fact, one of the major obsessions and expenses of any bank is security, and by bricking up the door – and thereby making it more difficult for robbers to enter the premises – the protesters actually helped the bank. Not to mention that their protest also brought the police along to stand outside in hi-vis jackets, which probably made the bank as safe as it’s ever been. And all at no extra cost to the bank. What are the protesters going to do next, try to bring down the Conservative party by voting for them?

6. Consequences. Though the protest didn’t have any serious consequences, it could well have done. The protesters could have endangered the nation’s economy. By bricking up the door of the bank, they made it likely that employees would have to enter and exit the premises via the windows. And, as history teaches us, bankers jumping out of windows is one of the worst economic indicators that there is. Worse even than Alistair Darling’s eyebrows. It’s the sort of thing that, if the media get hold of the footage, can shatter fragile economic confidence.

7. Achievement. As a protest against banking it doesn’t appear to have accomplished anything. I was in the centre of a city yesterday, and banking appeared to be going on pretty much unhindered by the protest. People in polyester uniforms were sitting around near potted plants in waist-high partitioned areas looking depressed, as usual. The cash machine outside was covered in the remnants of a McDonald’s milkshake, as usual. I wanted to thump over 90% of the people in the queue, as usual; even myself. So the protest has had no discernible effect on banking. Obviously, the protest brought an awful lot of free publicity for the property developer behind it, but that wasn’t the point. Because this was a protest against banking, right? And not some sort of tawdry self-serving publicity stunt?

September 30, 2010