With the budget due to be revealed on March 24th, I was wondering what effect overall, it would have, if any at all, on the general situation of consumers suffering financial difficulty. What assistance can the country expect as a whole to help with the trade deficit and the economy? Of course, although the UK is now beginning to rise from the ashes of economic decline like a phoenix spreading its fiscal wings, the budget will hit the general populace in the pocket, as always.

Preliminary expectations are not looking good really.  From what we can gather so far, as well as the usual and expected raise in prices for cigarettes, alcohol, petrol, etc there will be some cuts in general spending on much needed public service although the government has pledged support in this regard.  I understand how this is all designed to line the coffers of the politicians, sorry, reduce the overall debt of the country and I can fully understand how this is all longer term going to assist us in definitively reducing the trade deficit but does it affect the man on the street in a good way? I mean financially, does it mean anything for the average family?  In my experience most, if not all budgets have only assisted in making the overall picture look as gloomy as it does today for man, woman and 2.4 kids.  No tax breaks, no increases in tax credits or income support and certain increases in prices, along with the recent return to the 17.5% VAT rate all combine to increase the misery and the general feeling that the Government has no idea as to what the average voter actually wants.  Oh well, as long as middle and upper class Great Britain are OK.

Most budgets are designed as a sop to the voting, middle class masses anyway and many of the incentives and good things that have come about in recent budgets have been designed to win votes but with this pre election budget Alastair Darling has decided that Labour can't look any worse than they do now anyway and any grand gestures will be seen as clearly trying to curry favor so don't expect much. With the fault of the economic crisis in the UK lying firmly in the lap of the Labour Government any big gestures would be futile in any case, it would simply be seen as too little, too late.  For the average working family this budget will hold very little in the way of making things look better and I can only see additional pennies on the pound coming out of your pay packet, stealth tax's on general living expenses and the obligatory price rises on the simple pleasures in life such as a good glass of wine! I will certainly be surprised if we come out of this budget financially better off than we are now.

Have you ever taken a look at the actual remedies or potential cures for debt issues that are available? I'm sure that you probably have and if you're like me you will undoubtedly have come into contact with the phrase debt consolidation loan.  I, like many of the consumers suffering financial difficulty in the UK have taken on a debt consolidation loan in my debt afflicted past.  When I was in a worse situation than I am now, I managed to get myself a debt consolidation loan from my primary creditor and to be fair, it was a good way to manage things.

A debt consolidation loan pays off all your debts.  that basically means that it frees you from the burden of making repayments to credit cards and unsecured loans mostly. These can be on an unsecured basis but in most cases they will be secured on your home and you should never forget that it will become a much bigger issue if you default on making repayments to a debt consolidation loan as well.  It could be considered that you are loading yourself with another debt and there is obviously the danger of losing your home if you default repayments on this loan, however, it will give you one affordable monthly payment on one amount and that will quite often give you the breathing space you need to look at things differently.

A recent survey has confirmed a dramatic increase in the amount of the average non mortgage debt in the UK, particularly over the last 15 years, a symptom of a credit sodden society.  The average amount for every single person in the UK now stands at over £4,000 in unsecured finance.  This seems relatively small but when you consider that this is for every single person in the UK you begin to get an idea of the scale of the unsecured lending undertaken in the UK on a yearly basis. In terms of secured lending, mortgages secured on an almost 100% basis have also contributed greatly to the huge amount of personal financial difficulty suffered by a large percentage of the populace.

Imagine the interest accrued each month on say, a £200,000 mortgage? It is this very interest, every month, that adds to the burden of repayments of your debts. It can take many years to pay-off even a relatively small loan along with thousands of pounds in interest. In such a case, if you’re finding it difficult to pay-off the existing loan amount or struggling to cope with even your minimum repayments on loans and credit cards, a debt consolidation loan will most definitely help you.

A debt consolidation loan, whether from your bank or another lender, pays you a lump sum that can usually be paid back over an agreed period of time, often longer than usual. Most reputable debt consolidation companies also usually charge a lower interest rate than other loan providers. This lets you pay more on the actual debt amount each month.  However, as with everything financial there are the good and the bad. Debt consolidation companies haven't, to be fair, received the best or most credible media attention lately and mostly because of the actions of a few bad eggs, such as companies that promise you lower repayments and eventually just end up increasing the repayment term by reducing the amount needed to be paid each month and thereby charging more interest over the longer term.  It also pays to know the APR offered by the company as there is no point considering the loan if the APR is higher than the loan you already have!

Debt consolidation could be for you, it might not be, but it will certainly be worth considering as you look at the ways you can reduce your overall debt.

This video is the weekly debt and money management news round up from a site called Eurodebt.  A fantastic idea highlighting recent news and events relevant to the financial situation now faced by millions in the UK, particularly after the credit crunch and last years economic crisis.

A series of short videos posted on a weekly basis by a very knowledgeable, relevant and informative source, I would highly recommend taking a look and seeing if any of the stories posted impact on your own financial predicament. I will be trying to keep up to date and post these videos on a regular basis as I feel that they reflect closely the subject matter of this site and are most definitely a worthwhile addition.

Why not watch the latest video posted for an up to date look at the latest financial and debt management stories.

Having thought recently about taking the bull by the horns and perhaps taking my driving test in order to get a car, I thought I would have a look around at some of the car insurance products out there and try and get an idea as to where I could potentially make some savings, hey, I'm not well off by any means!  Anyway, what I did discover is that potentially it could be quite expensive for me to get car insurance on what would be my first vehicle.  The average car insurance premium in the UK is actually 497GBP and for a man, its actually a little higher at 525GBP.  


There are ways you can make savings and just by being a new customer you can sometimes get a better deal than someone wanting to renew their policy.  the insurance companies are all fighting tooth and nail for your custom so they can quite often be prepared to go a lot lower than you think, offering you a more competitive deal.  As a customer, even if you've built up your no claims, going back to renew your policy you shouldn't accept a renewal quote fro your existing insurer.  As explained above customer loyalty means little in this industry and its quite easy to go to a new insurer.  Most big insurance companies will often charge you less than half of the price offered to existing customers.


The best way to research and take a look at what is on offer as a new customer is to take a look on the comparison sites.  Make sure that you look at different ones because they don't all link to the same insurers and it pays to get as wide a view as possible. The average saving is as much s 217GBP jut by shopping around.  Make no mistake though, the comparison sites are the best way to research for car insurance on the web, I know, I've tried it!


Of course, another way that you can save money is to use security devices such as alarms, immobilizers, tracking devices, etc.  They can all hold some value in decreasing your insurance premium particularly if they are rated against the UK insurance industries criteria.  They do obviously cost money in the first place but again, shop around for cheaper products.  They also hold the added benefit of protecting your car from theft as well.


The last thing and something to warn against is making modification to your car.  Body kits,  and alloy wheels might look good in Fast Car Magazine but insurers don't seem to like them. Presumably because modified cars are more likely to be targeted for theft and I suppose the image of a modified car is one that will be driven fast and therefore more likely to be involved in an accident.


Have a look around and see what you can do, and by the way, the best way to save money is to drive safely and not claim on your insurance!

An interesting video I found when searching for information on avoiding mortgage arrears.  With more and more consumers suffering with financial difficulty, the problem of mortgage arrears and repossession is looming large in the collective consciousness of the  UK populace.  The economic uncertainty shows no immediate signs of relenting and consequently, in the short term, certainly, the number of consumers losing their homes will continue to rise.

Having immediate knowledge of how losing a home effects a family, its not a situation I would wish on anybody. The devastation wrought by the lenders foreclosure is huge and has both psychological and physical impact, particularly if left in the position of having no home or immediate place to move into. It can seem an awfully callous decision to throw a family out of their home for being in financial difficulty or debt that in a lot of cases, economic circumstance has dictated and the majority of repossessions come about through no immediate fault of the consumer.

If you are having difficulty making repayments on your mortgage or you think you are about to be in difficulty, do one thing today and watch this video, it could help ease your situation.

With the economy still in a precarious position despite what the government tell us, its somewhat prudent to discuss what can happen if your worst nightmare actually comes to fruition and you get yourself into arrears on your mortgage.  Although there has been slight growth in the economy over the last two quarters it is still too small to make a significant difference and the numbers of people in financial trouble with difficulty paying their mortgage have increased substantially over the last year. So what can actually happen.

The first thing to realize is that although it can seem like the end of the world, it needn't be. Even if your financial situation is so dire that you can't see an end to it, there are things you can do to cope. Mortgage arrears are what is classed as a 'priority debt', a debt seen by county courts and financial institution that take precedence in any repayment plan so its hugely important for you to start doing something as soon as possible and don't hide your head in the sand. Contact your lender and see what can be done or at least get some advice from an impartial debt counseling service. Its also important that you try to keep making some sort of token payment if you can in order to show good faith.

Most people consider keeping a roof above their head the most important aspect of modern life but the recent economic crisis, rising unemployment and increases in other bills and overall debt have made it increasingly difficult for consumers to keep on top of regular repayments. One of the first things to do when asking a lender to accept a token payment scheme is to fill in an income and expenditure form. This form will give the lender a detailed overview of your financial situation and give them an idea as to what you can afford to pay back on a regular basis, legitimizing your offer of a token repayment.  Also let them know about any change in circumstances, unemployment, marriage breakdown, decrease in wages because it can all have an effect on your capacity to make repayments. Also, the lender will, in most cases want you to make some sort of additional payment on the arrears in addition to the agreed monthly sum and some will want the arrears cleared over the next 1 to 2 years.  If you can't manage that, don't worry, just start paying what you offered.  It will at least give you something to bargain with when you go back to the table. 

There are ways you can get assistance with your repayments such as a mortgage rescue scheme offered by the lender, any insurance you might have, even the DWP if you are unemployed and claiming jobseekers allowance or income support. Even taking in a lodger or tenant might assist in the short term by getting some extra cash in, however, it can be a difficult decision to take someone into your home, especially if you are suffering from a debt problem or are in financial difficulty.  The final thing you can do if you are really in an unescapable position is to hand the keys to the lender and let them sell it. The bd thing about this decision is that not only have you lost your home but you will also have to make the repayments until its sold, thi should be avoided at all costs,.

In reality house repossession is on the increase and until the economy picks up in a really beneficial form there will still be large numbers of people struggling to make mortgage repayments.  It is however, vitally important to address the issue as quickly as possible.

An interesting aside to the debt crisis is that the Ministry of Justice in the UK have recently stated their intention to look into the possibility of setting a minimum amount of debt before a court can order the repossession and sale of a home, after a series of quite high profile cases where consumers have been ordered to sell their family homes after defaulting on relatively small credit card loans or other forms of unsecured debt.

This is a frightening prospect for any family facing a debt problem as not only do they have the possibility of perhaps losing their home after defaulting on mortgage repayments but also via somewhat callous creditors requesting repayment of what is essentially fairly small amounts of money in some cases. The creditors are often managing to secure a charging order against what was an unsecured debt, making the family home liable if the consumer fails to make repayments.  The charging order can lead to the court ordering the sale of a property, ensuring that the consumer can pay off their debts and meaning that in most cases the creditor will get their money back a lot quicker than is usually possible.

This callous and unfeeling approach by an admittedly low number of lenders has meant that a number of consumers that had no idea that their house was at risk and wouldn't have borrowed against it in any case if they did, are finding themselves the subject of a repossession order, a horrifying situation for say, a young family with nowhere else to go if pushed out of their home. Unfortunately, the economic downturn and credit crisis has meant increased numbers of consumers facing difficulty with making repayments on loans and consequently, lenders have quite often become more 'creative' when it comes to getting their money back.

This isn't a scaremongering post and shouldn't be read as such, this situation has only happened to a limited number of consumers, even if it is enough to make the Ministry of Justice consider an investigation, however, their proposals, if pushed through, should protect the most vulnerable.  As we all know though, the best way to protect yourself is to borrow responsibly and never more than you can afford to repay.

The number of credit cards for consumers with poor credit ratings is actually fairly limited.  There is a marked increase in the numbers of people using these cards in order to repair a weak credit rating and there really should be more of a choice. However, those on offer do provide a facility that wouldn't in other circumstances be there and because they all carry high interest rates, should therefore only be looked at as a functional short term product rather than something longer term. I will review the three most popular bad credit credit cards here and you can perhaps make a decision as to which one would be most suited for your situation and circumstances.

The Capital One Classic 

This credit card seems to be favored amongst all the comparison sites as the best option out there for a credit score repair card.  The acceptance rates are quite good and as long as you are 18 or over, have some history of managing credit even if you do have defaults or CCJ's, you're on the electoral role and haven't been declared bankrupt in the last 12 months amongst others, you should be able to get one.  As with most of the poor credit rating cards, the interest rates are high with a typical 34.9% on balance transfers, purchases and cash advances.  The credit limit can start as low as 250GBP and can go up to 2500GBP and most consumers will find that as long as they make 4 monthly repayments in full, the limit can be raised incrementally. Another offering from the Capital One family worth a quick mention is the Progress Credit Card.  Similar to the Classic, the only difference is that the Progress is the only bad credit credit card that reduces the interest rate as long as the repayments are met in full and the credit limit isn't exceeded.  Starting at the same 34.9% it drops 5% every 6 months until it reaches 19.9%APR.

The Vanquis Visa

The Vanquis Visa is another high interest rate card with a 39.9% APR, so its best not to borrow too much on this card and make sure that you make the monthly repayments in full. Its a good card for those with little or no credit history and those with poor credit ratings with little choice. The difference between the Vanquis visa and the offerings from Capital One is that you don't need a bank or building society account although it will obviously help with the application.  Apart from that the criteria for acceptance seems to be pretty much the same.  This card does however have a high interest rate for cash advances - 49.4% so really, don't borrow cash irresponsibly!

The Aqua Bank Mastercard

This credit card is produced by SAV Credit Limited and is a Mastercard rather than visa, not that it makes any difference.  This credit card may be worth applying for if you have a bank or building society account,  are in full time employment, have a landline telephone number and are on the electoral register.  Acceptance criteria are a little stricter than the other products here and if you're applying, you can't have any adverse credit in the last 12 months or be a discharged bankrupt in the same time period. The interest rates are comparable to the others with a 35.9% APR and the credit limit is restricted at 1000GBP.

All of the above products can be good for a functional credit card to repair your credit rating, however the most responsible way to do that is to be realistic with yourself about what you can afford and don't take on more repayments than you can manage.

The above products can be found at - Uswitch.com, moneysupermarket.com and Which Credit card 4U

How many mobile phones do you have hanging around? Get up after reading this and just go and take a look, hunt around in your drawers, bottom of cupboards, etc and I bet you will find at least two or maybe three old mobile phones that haven't been used and are just sat there doing nothing.  Heres something that will interest you, there's gold in them there mobiles - thats right, old mobiles are worth cash.  For someone in debt or trying to save money here or there, old mobiles can be a source of quite a few pounds.  What happens when you get home with that shiny new contract phone?  Thats right, the old, just out of contract one that is maybe a year or 18 months old, just goes into a drawer somewhere, fighting for space with the charger and earphones, etc.  If you're looking to save money or you're facing a little bit of debt, there is another use for those old handsets.


A few years ago companies started springing up that would buy old mobiles from anyone, whether on a personal or corporate basis and recycle them, moving them on to other companies that then refurbish them or reuse the materials. You may wonder why old phones hold any value at all, after all they're obsolete, right?  I can guarantee that you would be hugely surprised at what actually happens to your mobile once you send it off to one of the many companies offering to buy your old phone such as Mazuma mobile, Mopay or any of the others.

As a phone comes into the company that brought it, it goes through a testing process, firstly to make sure that it is economically repairable but secondly to check the IMEi number against the Central Equipment Identity register database, just to make sure that it's not stolen.  Then they check the components themselves, such as the keypads and the screens.  A lot of them are then passed off to the repair centre. Even handsets that are beyond repair are worth something. They contain very small amounts of metals such as gold, platinum, silver and copper and the batteries contain nickel which, when combined with stainless steel, make the saucepans that we cook our homemade stew in.  The plastic can even be melted down and reused in various objects.  Probably about 20% of all recycled phones stay in the UK.  That temporary replacement you are sent when your phone is being repaired or the one you get when yours has been stolen, is probably a recycled unit.

Old handsets can fetch from 2.50GBP up to 120GBP for some of the newer models. In terms of saving money or more correctly, making use of money you thought was dead, recycling mobile phones is a very good idea. So, take a look in the drawers, hunt in the cupboards, you might be surprised at what you find.

When I was a little younger and certainly more foolish than I am now I started collecting credit cards like they were going out of fashion. Although it perhaps shouldn't have, it surprised me how quickly I managed to get in over my head. With just three or four credit cards maxed out and the only payments going in, the minimum monthly repayments it didn’t take long until I was behind. After a couple of nasty looking letters from the credit card companies and a few more of sticking my head in the sand, as with many others afflicted by credit card debt, desperation clicked in and I started researching and looking at credit card debt consolidation companies. Its the  same as anything, while there are good companies out  there, there are also bad and in some cases the process can be expensive ( not good if you're already in debt), and sometimes can lower your credit score. however, there are also a lot of good things about debt consolidation companies.

Firstly, debt consolidation companies usually combine all the revolving credit debt you have, and the borrower pays them, rather than the creditors, a set amount every month. The debt consolidation company then holds the responsibility of dispersing the cash among the various lenders. The convenience of paying all the bills to one organization can be of huge assistance when you’re overwhelmed with monthly bills, due repayment dates and minimum payment.  The second and probably the biggest bonus of using debt consolidation companies is having them work out deals with creditors, many of which they will already have very good existing relationships with.  They also hold the added bonus of sometimes being able to reduce the overall mount owed and most certainly will be able to reduce or sometimes stop the overall interest mounting up.

There are however, also a few negatives to working with debt consolidation companies and it is hugely important to be aware of them before you make the decision to go ahead and use them.  In most cases, once you accept the company’s terms and conditions, you’ll usually be cutting up your credit cards and closing the accounts as they’re paid off. I have yet to find a consolidation company that allows any credit, in any form, to be kept or applied for during the course of the consolidation.  If there are any out there I'll be pleased to be proved wrong.   Another thing to be aware of is that, if you have anything other than revolving credit; i.e, mortgage defaults, car loans etc., they aren’t included in the consolidation. This means you’ll still have to make those payments separately.

Of course, there are also other ways to pay off your debt quickly and somewhat efficiently without debt consolidation; i.e. a rolling payment plan. In this type of repayment plan you make the maximum extra payment to one particular card until it’s paid off (paying the minimum on any others you might have). Once it’s paid off you take all the money (including the minimum payment) and apply that to the next card to be ticked off. You’ll always end up paying the same total amount which is of course good for budgeting, but each card will get a different appropriation of the funds depending on if they’re at the top of the list to pay off. The good thing is that, once you manage to pay off one card, you get such a feeling of achievement that its usually enough to make you go on and pay off the next.

Much of our current debt woes and the increased amount of consumers on debt management plans and IVA's can be attributed to the credit crisis of last year. Until the crash of the American banks and the subsequent tightening of the lending criteria, both mainstream and sub prime lenders offered credit and loans to almost everyone. Credit counseling organizations in the UK have reported of people with credit card debt of over 100,000 GBP, a ridiculous amount to borrow on what is ostensibly a high interest rate.

Credit cards have funded many a purchase of items that shouldn't have been brought and weren't needed.  The promise of easily borrowed money can be too good to resist and it too easy to just buy something now and pay later.  The video located here, although an American product, can be viewed with interest as the premise is very much the same.  The indicators to look for and the red flags indicated that will demonstrate as to whether you are in danger of a credit crisis or in danger of suffering a potential debt problem are very much the same.  So, take a look at the video and hopefully it will assist you in recognizing an issue before it becomes a big problem.

Debt - The dictionary definition states that debt is something that is owed, such as money goods or services, in the economic sense, an amount owed to a person or organization for funds borrowed.  It goes on to say that a 'bad debt' is a debt that has little or no chance of being repaid.  It can also be considered as an obligation to pay or perform something, i.e.; being in someone's debt.

In the real sense when we take a look at what debt and being in debt actually means for the consumer subjected to an IVA or a debt consolidation plan, the dictionary definition doesn't go far enough to convey the sense of desperation and the sense of real helplessness that being in debt can cause. Imagine how it must feel to have to make the choice of either paying a late utility bill or funding a child's school trip that all their friends happen to be going on. Of course, the reality is that the utility bill comes first particularly when its hard enough just to make repayments on your mortgage but try and imagine how it feels to look at your child and say that 'they can't go because it can't be afforded'. We always try and protect our families from the harsher realities of the world but unfortunately debt is something that encroaches on that candy floss reality all too often, exposing our families to difficulties we would rather keep hidden, at least for a short while

Its not only protecting your family from debt that can be painful.  Its also the sense that your life is spiraling out of control, that you can't manage your finances and that you can't provide for your family. Consumers afflicted by debt have likened it to the feeling of drowning. Continuos demands from creditors, letters from bailiffs, court appearances, they all add to the feeling of not being in control. It can seem in some cases that there is no help available and that debt is something you are never going to get out of.  of course, there are organizations you can turn to for help and advice and some of those very organizations are mentioned elsewhere in this site, however, in the very short term they do little to decrease the feeling of helplessness engendered by being in debt.  Make no mistake, it takes a long time to manage your way out of debt and for most, until they can get a grip on their finances, that feeling of not being in control of their finances and their life will continue, at least for short while.

The economic crisis last year has brought about a proliferation of companies with access to ready and quick cash for those who need it, their selling point.  Gold buying companies, discount or hire purchase companies and shops such as cash converters, somewhat like the traditional pawn brokers, have poured million of pounds of resources into increased mainstream advertising and marketing.  Of course this marketing has one aim and that is to provide additional custom and profits.  It has worked fantastically well, with Cash Converter a particular winner, growing from 6 to 136 stores in the UK, with profits also growing by a phenomenal percentage. As a matter of fact, most companies offering a similar service have experienced similar growth.

Of course, there are some social watchdogs who are particularly concerned that companies such as those mentioned above are targeting the lowest socio-economic groups and that the morality of targeting people who are perhaps already suffering from debt issues is questionable. In reality there has, over the last year been an increased demand for access to ready cash.  The number of consumers that have been made insolvent, have experienced debt, are subject to an IVA or debt management plan or simply have a poor credit rating has rocketed and consequently the companies providing a gold buying function, hire purchase or pawn-broking services have also increased in order to cope with demand. If this has increased profits exponentially they can hardly be blamed.

Debt and credit issues haven't just been the preserve of the council estate resident over the last year.  Consumers that under normal economic conditions would not have experienced a debt management plan or a reduced credit rating have been forced to find alternative ways to 'pay the bills', put food on the table and access ready money.  Gold buying companies in particular have become very popular, offering money for gold jewelry which is then melted down, scrapped and sold on at a profit. However, if tempted to cash in your old rings or 'anchor rope' gold chain it pays to research the companies themselves as there are huge variations in the price per gam that is offered and of course, when in debt, the last thing you want to do is get a disappointing price for what, in some cases, can be your last asset.

The last type of company mentioned and probably the most difficult to quantify is those offering hire purchase.  Often it is the consumer that can't get credit elsewhere that approaches this type of provider and it is often that very same consumer that is hit with particularly high interest repayments on ordinary household items such as washing machines and fridges.  Consumers with credit or debt issues are still no doubt hugely grateful that they can get credit somewhere and to be fair it is difficult for someone with a history of defaulted repayments to approach a mainstream retailer if they need a new fridge, an essential product if you have a young family. So, once again, these companies are simply providing what has become, over the last, difficult year a necessary service.  And anyway, if they weren't doing it, you can bet your bottom dollar someone would!

What an horrendous start to the year 2010.  The number of people asking for debt management plans has risen by something like 30% on the same time last year and according to both the consumer credit counselling service and Citizens Advice Bureau it's only going to get worse as the credit crunch continues to bite for a huge percentage of UK families. Over 2.5 million unemployed and a credit and money lending criteria that is now tighter than, a gnats......well you get the picture, all mean that insolvency is on the increase. As the image on the left shows, year on year average household debt has increased with a large jump last year in particular.


For a family who have lost their main income and still have bills and mortgages to pay as well as mouths to feed, what options are there available that can ease their financial situation in the short term and still ensure that they keep a roof over their head?  It can seem like there is no assistance out there for people with a less than squeaky clean credit history and unemployed status and indeed there are very few options. Families who are in a stressful financial situation could find that debt management plans help them avoid suffering as a result.  A good debt management plan will look into all the ways you can make savings and will also look at all your potential state entitlements.  Currently there are a huge amount of families not claiming housing benefit that could be claiming, even if it is a small amount.  Hey, when you're in debt even the smallest amount can help!   There is also a lack of confidence in the  current Tax credit system.  Overpayments later requiring lump sum repayments through no fault of their own and a perceived difficulty in claiming, although it is actually relatively easy, all add up to a large number of families that could be due some assistance, missing out.  Overall, something like 16 or 17 million GBP in means tested benefits are unclaimed every year.  A portion of that cash, however small, could go some way to making a debt ridden families life just that little bit easier.


it doesn't make the situation any easier when the economist's can't even make their minds up as to whether or not we are officially out of the recession yet. Are we or aren't we?  It appears that consumer confidence hasn't yet returned to the borrowing market.  Loans, both secured and unsecured, although clearly more difficult to get, still are at a very low level.  Consumers are loathe to borrow money in difficult economic circumstance.  Of course, when you are uncertain as to whether you will retain your employment - why would you want to put yourself in the position of borrowing money longer term, particularly on the higher rates on offer.  It could essentially be that banks, credit companies and money lenders loosening their strict lending criteria will result in increased consumer confidence in the sector, we shall have to wait and see because it will be a little while off just yet.  In any case predictions for 2010 remain dire with the majority of debt industry experts stating that debt and insolvency cases will continue to rise - a situation we could all do without.

In your list of financial priorities where does sorting out your various insurances stand?  If you are anything like me then I'm sure that it probably isn't the first thing on your mind when it comes to sitting down and looking at your financial situation. Buildings and contents, life and critical illness, vehicle and even payment protection insurance on any loans you may have, should actually be a little higher up the list than it probably is.


To look at a very simple scenario, what would happen were you to come home one day and your living room was flooded, with your ceiling looking like a raincloud? If you didn't have home or buildings insurance I would hazard a guess at 1 - being extremely angry and 2 - shelling out a huge amount of money that you can ill afford to make massive repairs.  Its an horrendous situation to imagine but one that could be only too realistic.
These days with all the comparison sites to look at, insurance in its various forms is perhaps one of the most simple financial necessities that you can arrange yourself.  There are so many companies that are fighting for your custom and so many great and more importantly, cheap, deals available that its well worth your while to take a look into it. Take buildings and contents insurance for example. Protecting your home and contents from burglary, fire, flood, structural damage and accidental damage should be a given but you would be surprised at how few households consider it  a necessity. The average cost of buildings and contents insurance for a standard three bedroom home in a fairly usual post code area currently stands at approximately 25GBP per month. Now thats not bad for peace of mind and ensuring that if anything does go wrong, you're not spending money that you can ill afford.


Of course buildings and contents is probably the most popular general insurance product but there are other products such as life and critical illness insurance that are probably just as important.  Life and critical illness insurance is seen as a luxury rather than a necessity by a surprising number of consumers but I would beg to differ.  If you have a young family and are the sole provider for your household, what would happen were you to fall ill or, god forbid, suffer a fatality? In the majority of cases without life and critical illness insurance it would leave the family in a horrendously difficult position.  Mortgage repayments not met, no income and no money for living expenses.  Could you leave your family in that position? No, nor could I. Again, its a simple product to arrange and one that you can do yourself.


What about vehicle insurance. Whether you own a van, a car or a motorcycle, despite it being illegal to ride or drive a vehicle on UK highways without it, insurance is hugely important in terms of peace of mind.  Now, its unfortunate that lawful drivers bear the brunt in terms of cost and raised premiums, of drivers who don't have vehicle insurance but its still not a huge expense and one that really is an essential.  There are a vast number of companies offering a hugely different array of vehicle insurance products ranging from those with 4-5 years no claims, to those who deal entirely with those drivers unfortunate enough to have experienced a driving ban.  Again, there are comparison sites that deal exclusively with vehicle insurance so, do your research and make sure you get the product with the right fit.


Insurances are a lot more important than they are considered by many consumers and I would hesitate before telling anyone not to look into getting all the above products, despite it costing a little more in terms of monthly outlay. I suppose it all boils down to making sure that you budget correctly and that you get the best quality products you can buy for the money that you're prepared to spend on a monthly or yearly basis. 

Since beginning to write The Financial Plan, I have been looking around the world wide web at the number of blogs and websites devoted to Debt management, bad credit loans, credit cards, loans, etc and I am, quite frankly, amazed at the actual lack of resource available.  A huge amount of these 'blogs' or websites could only loosely be described as informative and as a resource for those consumers wanting information on credit and financial issues.  The vast majority are one page advertisements for various loan and debt management companies and its plainly obvious that there are also a large amount of sites out there that are just set up as revenue streams to take advantage of the many people experiencing financial difficulty.

The idea of this website itself was that it would be an informative, well written and up to date information portal for consumers wanting information on debt, debt management and debt consolidation, credit, credit cards, mortgage, insurance, loans and saving money.  For something to be considered as a resource or as a creditable source of relevant information, it should, in my eyes, be full of interesting information that would actually be deemed useful so The Financial Plan is hopefully, put together with that in mind. With regards to financial issues, there are a huge amount of blogs and websites out there on the world wide web but only a few have what would be considered authority on the subjects mentioned. 

What The Financial Plan is designed to do, is be a one stop shop for information and a gathering point for resources and information on the above.  It wasn't designed just as a revenue stream, nor as just an advert for one of the many credit, loan or debt management companies.  It was simply meant to be informative for consumers with debt issues or consumers needing information on loans, people who needed information on those subjects.  It was also meant to highlight links to companies that could be of assistance to the people who would find this website of use.  Although its fairly new at the moment, take a look around the site and hopefully you will like what you see.

Your credit report - what is it and what does it contain? Many of you will have, at some point, applied for a loan, credit of some sort or a credit card.  Its usually at that point that the money lender you have chosen to approach to arrange credit will go to one of the leading credit scoring companies such as Experian or Equifax to find out what your credit rating is like.

To explain in layman's terms, credit and whether or not to grant a credit facility is worked out on a scoring system individual to each lender.  This system is used to determine if you are a low or high risk borrower and if you are likely to be at risk of defaulting and not making repayments. The better you have been historically at paying your bills, paying back any loans you may have had and generally paying anything granted on a credit basis in  timely fashion, the higher your credit score will be.  Conversely, if you have defaulted on your mortgage repayments, not paid your water bill and are behind with your mobile phone payments your credit rating is very likely to be low and you will find it very unlikely that you will be offered a loan or any form of credit.   It is the lenders job, be they a bank, credit card company or loan company, to lend money responsibly so the lower your credit score the less likely they are to grant credit facilities. One of the myth's of the credit scoring system is that everyone has an individual rating and there is a magical number that once you get past, you will be granted credit. That actually isn't true, companies will individually lend you money if they want to, they will simply use your credit rating as a guideline.  So it stands to reason that the better it is, the more credit worthy you will seem.

Any time you try to buy something on a 'buy it now' and 'pay September' kind of deal or you approach a loan company to borrow money, more likely if its an unsecured loan by the way, you can pretty much guarantee that your credit file will have been examined for any hint of irresponsible borrowing behaviors.  The bad thing is that, every time a company makes a search for your credit score, it leaves a footprint.  If credit is refused, although other lenders don't know that, it increases the chances that it will be refused again if you have lots and lots of applications and searches on your file. It very much pays to not only be selective when looking to buy something on credit or borrow some money but to make sure that historically you have made the payments you should have been.

One of the best things you can do is get an up to date idea as to what your credit rating or credit score is today.  It saves a lot of time and hassle and will stop you making unnecessary applications to loan companies, etc if they are going to be poorly received, therefore leaving yet another application or 'footprint' on your file. A few of the companies out there will offer a free thirty day trial in which you can receive a copy of your credit file.  Take a look on the web and get a credit report done today - it could be one of the most useful things financially that you will do.

Saving money isn't the easiest thing to do when you have a family, mounting debt and bills to pay and although I am by no means some sort of money saving expert, I am however savvy enough to realize that making cutbacks and paring back on unnecessary spending is one of the most helpful things you can do if you have money problems. Now unless you are a Banker or Politician I would think that almost everyone, within reason will have some sort of money issues whether its not being able to find an extra 10k to get the next buy to let property or more likely, not being able to find enough money to cover all the bills at the end of the month out of a decreasing pay packet.

Its a sad fact that between the state of the economy and the necessity for food, electric, water, heating, etc, etc British households are becoming more and more reliant on finding ways to save money in order to get by, whether thats by making cutbacks on luxuries such as smoking and eating out or absolute requirements such as electricity and water.  If you are in any way having issues making payments at the end of the month then you need to be taking  look at on what and where you can make cutbacks and save money, even if its just a few pounds.  How does the old saying go -"look after the pennies and the pounds will look after themselves"

Utilities:
Since the privatization of the energy industry in 1996 the market has opened up , offering the consumer more choices when it comes to picking their energy supplier.  In terms of saving money, changing supplier doesn't save you a fortune but any savings made when you are in financial difficulty are a godsend. The type of saving made, although not huge can still be as much as 150GBP a year. Comparison sites such as www.uswitchcom are the best choice when looking to compare energy companies.  They also offer the chance to sign up through the site, a one stop shop, as it were.

Water:
The next thing to look at when making considerations on where to save money, would be the water bill.  Water bills are one of the largest a household can expect so if you can make savings somewhere, it can most definitely be appreciated.  One of the ways to do this is to get a water meter fixed although the rule of thumb when checking if it would be a viable saving is, if there are more bedrooms in your property than people its worth looking into.  With a water meter you are literally just paying for the amount of water used rather than paying a standing charge based on the 'rateable value' of the property and it is surprising how much can be saved for some households, between 58GBP and 104GBP in some cases.

Telephone and broadband:
Almost every modern household now has a telephone line, if not for the telephone itself then for broadband usage.  Its the same as everything, its worth shopping around to get the best deal.  Companies are fighting for your custom out there and they are jumping all over each other to offer the cheapest, fastest and best value deals.  There are packages that can be tailored to your individual usage dependent on which you use more of and its worthwhile taking a look at your quarterly bill to see if it cheaper to pay by direct debit say, or whether it would be better to switch from one provider to another.  The actual switching process is painless and quick now and what you might find is that your current company offer you a more competitive package to retain your custom, therefore saving you some money in any case.

These are just three of the things to consider that could save you up to 300GBP or more a year in some cases.  Any savings you can make when experiencing debt issues or money problems are not to be sniffed at and 300GBP a year is not by any means, a drop in the ocean and is money that could be used elsewhere or even saved.

Now, given that this site, at this stage, is kind of devoted to those of us out there with a less than whiter than white credit rating, it stands to reason that the only credit cards that would be worthwhile discussing would be those suited for consumers with a poor credit score. The ideal situation obviously is one where everyone can secure a platinum Visa or Mastercard but unfortunately with the economic situation being blamed on the easy availability of credit and the lenders propensity, until last year, to lend money to anyone with a belt to keep their trousers up rather than a piece of string, we can safely say that the days of freely available credit and loans are over, at least for now.

The view of the lenders is that everyone should of course be able to have credit, within reason, a profitable way of thinking to be sure. There are credit card options out there for those with a slightly tarnished credit rating and they are usually typified by a reduced amount initially available and a slightly higher interest rate than usual.  To be fair, these product are often a godsend and in some cases the only way to retrieve a credit score that is heading down the pan.  To give two of the more well known examples, cards such as the Capital One Classic or the Vanquis Visa provide credit facilities to consumers with poor credit, little or no credit history and even students and new migrants to the UK.  With interest rates at 34.9% APR for the Classic and 39.9% for the Vanquis they offer a way to rebuild your credit score.  Starting out at a low level of credit, say 250GBP and rising up to 2500GBP, as long as the repayments to the loan are made, these credit cards will go a long way to resurrecting your credit rating.  The key to both of these cards is to be very strict with your finances.  Some might say that this is a bad idea, as it was probably a less than firm grip on your monetary situation that got you a poor credit score in the first place, however, if you are unable to get credit elsewhere and you are really dedicated to making the repayments, these cards really are a good idea and for those who need credit, almost everyone in my view, you will be able to watch your credit score begin to improve.

I would suggest making a visit to a good comparison site and marking up the pro's and con's of the credit cards available to you.  Make an informed decision, be clear on all the terms and conditions and finally, the most important, make the repayments.

How many of you out there have had those end of month emergency cash-flow situations arise, usually at the worst time possible?  I'd like to bet that many of you reading this, at some point in time, have had an unexpected bill come in, a car breaking down or an unexpected accident.  There is however a product available out there that can assist on those occasions when cash is a  little tight and the bills mount up. Payday loans or cash advance loans are usually thought of as the poor mans choice when it comes to borrowing money, a bad credit loan.   Yes, these cash loans do cater for the less fortunate of us that have poor credit scores and consumers that would probably have difficulty securing short term loans with blue chip or prime lenders but they can also be a very good way of managing immediate cash-flow problems.

The payday loan or instant cash advance is designed to be a short term solution to a problem.  Usually approved within 24 hours, secured over a 30 day period or less and with the option of a rollover by paying the interest accrued, they offer a quick cash loan, often from 100GBP to 1500GBP with no requirement of faxing documents. For those with a poor, or perhaps less than ideal credit score, payday loans can be a fantastic way of securing quick cash at reasonable rates of interest, as the criteria for borrowing can be a lot less stringent than the banks or major credit card providers.  As long as you are over 18, there is a regular income over a certain amount, a bank account with a direct debit facility and in a few cases, some form of identification, you can be pretty much assured that you will be able to secure some sort of quick cash payday loan facility.  Of course, this also means that the interest repayments will be a little higher than other lenders but then there are no invasive interviews, minimal hassle and no detrimental credit checks.

So, are payday loans and cash advances a good idea?  If used correctly and as they are designed, as a quick and easy way to secure a cash advance until payday, they can be a great way to manage short term cash-flow issues.  If you are gainfully employed with a monthly or weekly paycheck there shouldn't be any problem.  The repayments are taken by direct debit, leaving you with nothing to worry about and there is even the facility to just repay the interest, rolling over the initial cash advance or payday loan until you are better situated to pay it back. There are numerous payday loan companies online offering this short term, bad credit loan facility so check some out, compare and choose the best for you.

Payday loans, a good, effective way to borrow relatively small amounts of cash quickly, with no credit checks and no faxed documents and even if you have a bad credit rating they can provide a short term instant cash advance when its most needed.  Definitely a good idea for some.

To manage debt efficiently one should firstly look at all the underlying lifestyle causes rather than just attempting to treat the symptoms, as it were. look at what caused the problem in the first place and take steps to address that rather then just try and get out of it when you're already up to your neck in it. How did you get yourself in debt in the first place, how did you manage to spend above your means and end up in a situation where you are now paying back probably a huge amount of what is essentially non disposable income, on a monthly basis?

If you're anything like myself then the cause wasn't really overspending or living a lifestyle that far outweighed my means. I wasn't driving around in a ferrari or spending money like water at casino's or lapdancing clubs. It was simply a case of trying to live in a normal fashion and trying to pay bills, pay for general living expenses and manage a normal life. It wasn't helped by working for three years in a job that didn't really pay what it should have done however but that isn't really any kind of excuse. you budget to live within your means, so how does it happen?

Debt problems can creep up on the best of us and for those of us that don't keep as tight a rein on our money as a parliament bookkeeper, crippling debt can catch up with us faster than you can say IVA.

The first thing I did was sat down and got out the income and expenditure form. Its vital to take an honest look at what you have coming in, what you have going out and what is essential and non essential. You'll be surprised at what you can do without when you have to! The second thing was not to hide my head in the sand. Its important that you contact your creditors and offer some sort of repayment, most are glad of the contact and will be happy to accept some sort of repayment however small. Otherwise the debt can spiral and get worse and worse and can eventually end up in court. If you have difficulty doing this yourself then approach a professional body. Organizations such as the citizens advice bureau, consumer credit counselling service or the insolvency helpline can all help with free and impartial advice and assistance.

Debt doesn't have to be the end of the world. It can be frightening and in some cases can affect your health and well being. It does however need to be dealt with and however you got in the situation in the first place, take a look at your lifestyle, spending and habits and try to make cutbacks where you can. It will all help.