Tag: Debt

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 To Keep Track Of What You Owe

Everyone knows that borrowing money is not a good idea but sometimes it is a necessary evil to get you through a major mishap, such as the boiler going bust or the car breaking down. However, a recent study revealed that many people have no idea how much they owe, preferring instead to bury their heads in the sand, proverbially, not literally. Although it might be more comfortable to kid yourself about how much debt you have, here are seven reasons why it isn’t a good idea….

1. Not knowing how much you owe will stop you getting back on track. You can’t budget effectively. Even if you only opt to pay the minimum on your credit card each month (which is never a good idea unless you are absolutely skint) you still need to know how much will be debited from your account. Having no clue about the repayments mean you are not budgeting and are simply crossing your fingers and hoping you have enough cash.

2. You will damage your credit rating. You might not have sufficient funds in your account to cover the repayment. This means not only a black mark on your credit file for a late payment but if you are on a special deal, you may have to kiss it bye-bye. Failing to pay on time allows the credit card company to revoke the terms and apply not just charges, but a higher level of interest.

3. Being unprepared for an unexpected bill could mean you fall behind in other financial areas. Even if you do have the money in your account, it could have been earmarked for another expense, such as your mortgage or rent. Getting caught unawares of another bill could leave you with not enough money to pay for your essentials.

4. Misleading information could spell bad trouble. If you need to declare your financial circumstances, perhaps on a mortgage application or maybe you are opening a new current account; you could be accused of fraud if you provide misleading information about what you owe. Claiming ignorance is not considered an acceptance defence. You could find yourself not only rejected but blacklisted making it almost impossible to get accepted by any mainstream provider.

5. You could end up in a spiral of debt that you find hard to get out of. It could drive you into taking extreme measures such as relying on high-interest payday loans, or even worse, going to a loan shark, for money to get you through the month. For most, this is a downward spiral from which it is difficult to escape.

6. You could find it hard to get additional credit in the future. If you are relying on credit every month, you may well end up going over your limit. In many cases your lender may not reject the transaction but will slap you with charges and any future creditor will view you with extreme caution. You may also find your credit limit suddenly slashed; most lenders reserve the right to do this if they feel you are not managing your account properly.

7. Ignoring debts will only make your situation harder. You might not want to know how much you owe, but if you don’t take a deep breath and face the facts, how will you tell when your debts have become unmanageable? If your financial circumstances are less than comfortable, totting up how much you owe to all your creditors can make you feel anxious. However, there are a lot of ways to get help but unless you take the first step and acknowledge that you can no longer manage your debts, you will be forced to struggle on alone.

Baines & Ernst specialising in helping people get out of debt with affordable debt solutions including Debt Management Plans and IVAs. All them for expert debt help and advice today.

August 10, 2012
Guest Post: 7 Reasons To Still Visit Greece

It might be beset by strikes and economic problems but it’s still a great place to visit. Here’s why…

The Acropolis: It will be nice when it’s finished. Photo by Dan Cross.

1. It’s Cheap. It is terrible to think of Greek people struggling with lower wages and higher prices but there are some fantastic holiday offers for Britons to take advantage of by visiting Greece. Some tour operators are cutting the price of Greek holidays by up to 60 per cent. This effectively means that you can get two holidays for the price of one – if you can find anyone to travel with you.

2. Citizen Journalism Opportunities. With strikes and protests common on the streets of Athens there are plenty of fantastic opportunities for British citizen journalists to cut their teeth by recording some great front-line footage. A quick look at internet forums show that many Greek people think that reports of anarchy in their country have been greatly exaggerated. Are they right? There’s only one way of finding out…

3. To Annoy William Hague. British Foreign Secretary William Hague clearly isn’t keen on Britons travelling to Greece. In February he incurred the wrath of tour operators by announcing plans to evacuate Britons from Greece in the event of major civil unrest. Britons have never liked being told what to do and, just like Bluebeard telling his wives that they must never enter his forbidden room, discouraging us from going somewhere just excites our determination to do just that.

4. To Support Our Fellow European Nations. Even a cursory glance at the film Captain Corelli’s Mandolin shows us just how much the Greek people suffered during the Second World War. Now is the time to join together and support a fellow European nation in their hour of need.

5. To Annoy The Germans. The Germans are clearly not happy about bailing out the Greeks. Expressing support for Greece – by visiting their beautiful country – could well provoke the ire of a nation with which it has a troubled relationship (again, see Captain Correlli’s Mandolin).

6. To See Sights Of Great Sporting Importance. Greece is the cradle of sporting civilisation – this is where the Olympics began many moons ago. So British sports fans should feel very at home when visiting the ancient crumbling sites where Greek gladiators fought for their livelihood.

7. To Escape The Olympic Hype. Alternatively, if you’re a Briton who is not keen on sport and wants to escape the Olympic hype this summer then Greece is just the place to visit. Touring the ancient crumbling remains of the country offers the perfect escape route and might afford a frightening glimpse of what London’s Olympic Stadium could look like in a few years’ time!

Author Bio: James Christie writes for airport parking and hotel provider BookFHR. If you’re travelling to Greece, do so in style by booking a hotel near Gatwick for the night before your flight.

April 27, 2012
Guest Post: 7 Reasons You Run Out Of Money Every Month

It’s getting harder to save money for your future with the euro being inflated every year. However, there are some things that are completely within your control. Before you complain about how expensive everything seems to be getting these days, check your ego at the door and make sure you’re not committing these seven deadly spending sins.

1. You’re Shopping Way Too Much. Shopping is fun. Heck, what girl doesn’t like a new dress or pair of shoes? Shopping sprees aren’t just a female problem either. Men can get carried away on designer stuff too. If you have a shopping addiction, try putting away the credit card for a few days. If you still think you need a new pair of pants or a shirt, then consider visiting a charity shop – especially if you’re hooked on ModCloth.com offerings. You might be able to find some nice vintage stuff for much less than what you’ll pay retail.

2. You Drink So Much Coffee, Your Blood Is Now At Least 50 Percent Caffeine. Coffee can be addictive, and Starbucks is a pretty popular place, but there’s no need to go there three times a day. Even once a day gets expensive. If you need your coffee fix in the morning consider getting a pour over kit. The initial cost of manual pour over equipment pales in comparison to what it will save you over time. If you spend £2.60 every day on coffee, you will benefit from getting manual pour over equipment. In one month you’ll spend enough on Starbucks to buy yourself a decent filtercone holder, some nice filters, and some decent coffee. Two month’s worth of coffee will get you an excellent coffee grinder.

The benefit? The learning curve is not very steep, it takes just as long to stand in line as it does to make your own coffee at home, and a manual pour over results in a stronger and better cup of coffee than what most retail places will sell you.

3. Those Late Night ATM Runs – You Know The Ones. Are you a night owl? Do you spend a lot of time at clubs, pubs, and after-hours parties? Going to the ATM to reload your wallet with cash takes its toll. There’s no easy solution to this problem other than taking it easy on the partying. Staying home and reading a book might not sound like much fun, but your bank account will thank you.

4. You Are Paying For More Channels Than You Can Possibly Watch. There’s nothing wrong with having cable T.V. In fact, it might add to your life in some way. However, there comes a point when enough is enough. If you’re paying for so many channels that you can never possibly watch all of them, it may be time to rethink your service plan. If you ever find yourself turning on your T.V. and thinking “oh wow, I didn’t even know I had this channel,” then it might be time to consider going with a cheaper package or perhaps cutting your cable down to the bare minimum.

5. You Eat Out So Often, You Haven’t Seen The Inside Of Your Fridge In Three Weeks. Eating out once in a while is fun. You don’t have to do the dishes, and you can usually get something that you find difficult or impossible to prepare yourself at home. However, if you’ve forgotten what the inside of your refrigerator looks like, or if the food in there has started to look more like a science experiment than leftovers because of all of the mold, then consider making more meals at home. Staying in has a wonderful positive effect on your bank account.

6. You Spend More Time On Your Hobbies Than You Do Working At Your Paying Job. Having hobbies allows you to stay active when you’re not working. However, when you spend more time on your hobbies than you do working at your “day job,” there’s something wrong. Maybe you should make your hobby your new job (by starting a business oriented around it) or find a new job that allows you to earn money from doing whatever it is you really love doing.

7. The Only Time You Step Foot On A Sidewalk Is To Get To Your Car. Automobiles allow us to get where we want to go faster than we ever could by walking. However, there’s a benefit to walking: it’s cheaper and allows us to get exercise. Consider walking or biking to work, if you live close enough.

Guest post written by Elizabeth Goldman and brought to you by Wonga – the short term loan experts.

March 28, 2012
Guest Post: 7 Reasons You Should Get Married

If you’re a single, broke bachelor who spends his time hopping from bar to bar trying to get some action on a Saturday night, marriage might be the best thing that could happen to you. So what if the divorce rate is over 50 percent in the United States? You have nothing to lose and everything to gain.

1. You Get To Have A Stag Weekend. When women get married, most of them want the wedding of their dreams, but what’s in it for you? If you have the right groomsmen, they will make sure you have the best stag weekend that you could ever imagine. Your stag weekend can last for as long as you want. You can have it all: scantily-dressed women, booze and music. Sky’s the limit. It’s like Mardi Gras meets your birthday. What’s there not to like?

2. Say Goodbye To Condoms. When you tie the knot, you are no longer under obligation to use condoms because you are both officially off the market. Even if you’re not trying to knock up your wife, she will be more willing to look into other birth control alternatives that don’t involve a slipping on a piece of rubber during moments of passion.

3. She’ll Do Your Laundry For Free. It’s probably been a while since a woman was more than happy to wash your dirty clothes. The last time that happened to you was probably when you used to drop off your laundry at your mother’s house during your weekends home from college. Take advantage of the opportunity.

4. Your Debt Becomes Her Debt Too. If you’re like most Americans, you’ve accumulated some debt. You probably have credit card and student loan debt, and you can have someone to share it with until death do you part. Marriage is about commitment, and your wife will be also held legally accountable for your debt.

5. She’s Under Contract To Love You. Even if you’re not a romantic, it’s nice to know that your wife has promised to love you no matter what you do. You don’t have to spend so much time impressing her because she must have been impressed with you to marry you in the first place. You can be yourself. Leave the dishes in the sink. Watch sports all night. Burp in bed. She loves you.

6. Marriage Makes You More Attractive. You may be a one woman man, but once you get married, single women will love you more than ever. Your attractiveness will quadruple as soon as you get back from your honeymoon. Even if you’re not one to cheat, it sure feels good to be wanted.

7. You’re Guaranteed More Sex. Once you put a ring on it, you’ve locked down your sex life too. The idea that married men get laid less than single men do is only based on 1 percent of the population, according to Kinsey Institute. While 23 percent of non-married men often go up to 12 months without sex, only 1 percent of married men experience dry spells that last an entire year.   Everyone around you may be running away from marriage, but these guys don’t know the real benefits of marrying a beautiful woman who can make your life ten times better. After you say “I do,” you will not only have a built in sex buddy, cleaning lady and financial advisor, but a lifelong friend who has your back.

Post contributed by Andrew Jones on behalf of Chillisauce.

March 17, 2012
7 Reasons The UK Owes Ireland

If you are British, you may be asking why our Government is helping to bail out Ireland. Well wonder no longer. It is quite simple. Ireland has given so much to the UK. So much. We owe them.

1. Music. ‘Some people say I look like me dad. What?! Are you serious?’ As I am sure you are all aware, they are the very first lines of the B*Witched classic, C’est le vie. And it’s only by listening to those words that you can really appreciate just how good The Spice Girls actually were. And that has to be a worth rewarding, doesn’t it?

2. Alcohol. From Guinness to Baileys to Bulmers/Magners and back to Guinness again. The Irish know how to drink. Sadly, many Briton’s don’t, which is why…

3. Hurling – a pursuit played out on the fields of Ireland – has become particularly popular on the streets of the UK. Just after closing time. And that in turn is why the British paracetamol industry remains so strong. Thanks Ireland.

4. James Bond. It is not often said that Pierce Brosnan did for Britain’s finest secret agent what Nasser Hussain did for the England Cricket team, but it’s true. Both picked up a beleaguered enterprise and through sheer bloody mindedness and the help of their respective peers in the form of Dame Judi Dench and Duncan Fletcher, turned it into something quite beautiful. Or at least passable. Better than it was anyway. And for that we should be eternally thankful. No one wants to watch Licence To Kill followed by the 1989 Ashes highlights.**

5. Sir Terry Wogan. Not only did he provide a superior earful for the more sophisticated radio listener than say Christopher Moyles, he also made the debacle that is The Eurovision Song Contest relatively enjoyable. Mainly because he talked over both presenters and songs alike. While slowly getting sloshed on whiskey. And getting away with it. He also introduced me to Gina G. And when you are twelve you like that kind of thing.

6. Leprechauns. Oddly, and rather ridiculously in my opinion, the people of the UK seem to celebrate St. Patrick’s Day more than St. George’s Day, St. Andrew’s Day and St. David’s Day combined. But at least on 17th March Trafalgar Square is full of honorary Leprechauns instead of bloody pigeons.

7. Home Comforts. Wherever I have been in the world, I always find an Irish pub. Not on purpose, it’s just there. Being all Irish at me. And it’s a nice feeling. Not because it adds to the ambiance of the street, but because I know I’ve found somewhere to watch the rugby. And for that I have always been eternally thankful.

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**If ever you wanted an example of a reason where I start writing without an idea of where it is heading, this is it.

November 22, 2010