Archives – Author
This week we have a guest post by a reader who would like to remain anonymous. She contacted Money Stand to tell more people about her personal struggle with debt, which she hid from her partner. She hopes this story will encourage others in debt to face up to their money problems.
Before deciding to take control of our debts, they did worry me to the point that it was affecting my sleep patterns and I did suffer from a lot of stress. I did lie to my husband, mainly by not telling him how bad things were financially, and just letting him think that everything was under control and there were no problems whatsoever. Things really came to a head when I had to go into hospital and had to trust him to handle the finances for a week. There was no option then but to tell the truth and hope for the best.
It was the best thing I had done in ages! Yes he wasn’t pleased, yes he did have a good whinge. But at the end of it all, he was supportive and we have sat down since and worked out how we can afford everything we need and get some extra money together to save up to pay off the smaller debts. We only have 3 debts but they amount to £30,000 but we only have an annual wage of £27000 coming in, and we are a family of 5.
We sat down together and looked at money coming in and money going out. We have seen areas where we could cut back our spending, like on the little luxuries of brand names at the supermarkets. I now shop around instead of getting everything in the one shop. We have changed our suppliers for utility bills, we have letters in to reclaim charges, and I am now not afraid to complain to a company about anything I find unacceptable.
I have to say that the stress of keeping it all in has lifted and I feel so much better for being honest with my husband. We are now working as a team to try and clear our debts as quickly and painlessly as possible. They say that a trouble shared is a trouble halved, and it is true. I don’t have to bear the burden alone and I know there is someone there that I can talk to and be honest with, instead of plastering a false smile on my face every day and lying to everyone about things. I feel better now, and hope that by reading this someone else will have the courage to face their debts head on and will feel like I do now.
If you would like to write a guest post for Money Stand, please get in touch.
July 15, 2009
Boost you income
Why not take on a part time job in the evening after your regular work, or even on a weekend, sure you’ll have less time to watch television or spend time with the family but think of the extra money in your pocket that could pay for a nice holiday or just help pay off those debts. Renting out a room in your house if it’s going spare is another great way of boosting your income, and the money you gain will be tax-free under the government’s rent-a-room scheme.
Insure your income
Insuring your income is a great idea during a recession as if you lose your job the insurance can cover payments on your mortgage for up to a year. The Government will also help homeowners who lose their jobs by paying the interest on mortgages of up to £200,000 from the 13th week after being made redundant. Mortgage protection can cover your repayments but make sure you check the small print as they have very specific terms.
Get a good credit card
Card issuers are pushing up their prices and also reducing their interest free periods so it is vital that you pay off consumer and credit card debts. Switching to a cheaper card is normally the best option and if you’re not in debt then have a think about switching to a cash back card that will give you back a percentage of the money you spend. If you are getting squeezed by those credit card companies and in need of debt help then make sure you shop around wisely for the best options as the recession is limiting them and debt help can be harder to come by.
Overpay your mortgage
If you can afford it then try to overpay your mortgage, Not only will this cut the term of your mortgage considerable and save you lots of money in the long run but will also means that if you do run into difficulties then you can take a payment holiday.
Change your savings
Savings rates have dropped dramatically with them being at the lowest in the history of saving, but there are still accounts that give you more than the base rate. There are still accounts out there that give 4% which is not too far away from the 6-8% we were getting last summer.
Get better insurance
Insurance is a necessity and you can always get cheaper and better insurance for your home/car. All you have to do is not accept that renewal quote, use comparisons sites or call your insurer and tell them you’re leaving as you’ve found a better bargain. They will offer you a better deal, and you can always haggle with them a bit more to get that low price. The same works for Sky TV and mobile phones just call them up and say you don’t want it anymore and they will lower their price to keep you.
February 23, 2009
Trying to get to sleep whilst in debt can be a nightmare. Being proactive about debt is a first step on your way to getting debt free. There are many ways to alleviate and get rid of the debt monster but being creative and forward thinking and crucial to success.
There are only two sources to obtain the extra cash to reduce and pay off your debts; spend less money from your current income and find a creative way to bring in some extra much needed cash.
Getting organised is the first thing you should do. Make a spreadsheet on what you get each month and then add all your outgoings and tally it all up, this allows you to see where outgoings can be cut and money saved. See what you have left over after all this then budget for food and other luxuries. Give yourself room in the budget just in case anything unexpected arises and always know how much money you have in your debit account so you don’t go making any silly superfluous purchases.
Avoid eating out, if it’s a special occasion then cook something special at home, even if you use the most expensive ingredients it will still be cheaper than going out. Growing your own vegetables if you have a garden is also a great way of saving some extra money. Always check the local paper for event listings that are free in your area. Free events are worth taking advantage of as they provide a whole day out and means you’re not spending you hard earned cash on going to theme parks or expensive pay events.
Get rid of all your credit cards and store cards apart from one with a low credit limit. Try to only use cash and avoid using credit at all costs, if you can’t pay for it in cash then you can’t afford it. If you do need to borrow money then try asking friends and family instead.
Buy some thermal underwear! This can drastically reduce your heating bills if you wear it around the house and thus turn down your thermostat. Damart sell cheap thermal underwear and have been in the business for over 50 years, spending a little on some Damart thermals will save you a lot in the long run.
Try and get a second income! Be creative it doesn’t have to be an evening job. You could start a blog or sell items on EBay or even do peoples ironing for them. If you own your house or rent a flat that has an extra room then why not consider renting out. Using the money earned from a second income could be used to put solely into a rainy day account or in to savings or used to pay of smaller bills such as credit cards or store card bills.
So come on, get creative and help yourself get out of debt or make that bit of extra cash.
February 10, 2009
With the recession just starting to take effect many of us will be feeling its force. Losing your job or knowing someone that has, the credit crunch is affecting us all. Most of us have payment protection on our mortgages or loans in case something unexpected happens, but what about those who don’t know about such products and are now defaulting on payments.
Most of us shop around to get the best deals when looking for financial products, we also know what we’re looking for to meet our specific needs i.e. tracker interest rates or fixed rate loans but there are thousands upon thousands of adults who are uneducated when it comes to personal monetary issues.
Lack of education in the financial area can and will lead to large losses of money from the purchasing of unstable and unsuitable financial products. In turn this can lead to even more dramatic effects; those who have got into debt will have to find a financial package to help them recover from that position whether it’s an IVA, bankruptcy or a consolidated loan, choosing the right one that will provide the best solution is a hard task if you don’t have the understanding of what each option offers. You need to know the pros and cons of what they are offering. People need to develop an understanding of economics and finance so they can make the right choices before they get taken advantage of by a loan shark.
Financial education should incorporate lots of different areas to help people manage their money more effectively. The key points being:
• Planning ahead with savings, pensions other investments for the unexpected
• Keeping organised with financial documents and making assessment of advice received
• Knowing whether the credit limit, loan, mortgage is right for them
• Looking for suitable financial options and opportunities
• Engaging confidently in financial situations
Getting children educated about money from a young age either at school, college or at home has massive benefits and sets them up for a happier future with less stress and strain over their finances.
Financial education will enhance and develop people’s understanding of economics and finance and give them a much needed foundation to manage their money better and make knowledgeable choices with financial packages.
February 5, 2009
If you’re thinking about going into town to buy some new clothes then stop and think again! Why waste money on petrol or public transport, parking and then overpriced shops when you could do all this from the comfort of your own home and save a great amount of money.
Using the internet to shop online for fashion should be you first port of call when wanting to buy new clothes. The Internet allows shops to sell their stock at reduced prices due to the lack of overheads they have to pay for. Even small, boutique, high street shops may sell at slightly reduced prices on their websites and the large high street retailers will offer even further discounts.
There is always a sale online, unlike the high street a sale can always be found on the web for whatever you are looking for. Normally the first thing you see when you go on a sites homepage is a huge red banner advertising a sale. However, if you do not see this sign do not fear, many online retailers will have special offers on their site for example Roman Originals are offering free matching trousers with any jacket purchased.
Why not try shopping through well known affiliate sites like ipoints that give you points for shopping through them and once you’ve built up enough points then they can be redeemed for great gifts.
You may think that delivery will be expensive but most ecommerce sites will have a spend limit to qualify for free delivery and if you don’t spend enough to qualify then a voucher code could be obtained from one of many sites that will give you free delivery when inputted at the checkout.
If you do decide to order clothes online and they arrive but don’t fit or are damaged you can always return them. Most ecommerce sites operate a good returns policy and will pay for the return postage or provide return pre paid postage parcels.
Shopping online has massive benefits for your wallet, not only does using the web help you save more money and make you feel good about what you have purchased but financially, can be a step towards achieving your financial goals whether it’s filling up that pension, getting out of debt or just putting some extra cash towards a nice holiday you deserve, it’ll really help you in the long run.
February 4, 2009
Borrowing money in the current financial crisis is all too common and borrowing without giving little or no thought to the future is a hazardous game to play. What happens to this debt if you die, does it get written off? NO, the debt must still paid back even in death by any means. A surprising number of people assume that their debts will be written off when they die but this is just not the case (sadly)
People can also get into debt following a death due to the high costs of funerals and all the extras that go with them so they take out credit to cover the costs.
When a will is made the individual names someone to be the executor who will take care of all affairs after their death, if they die without having a will then an administrator is appointed to carry out these actions. When the person dies all of their assets are lump together this includes their house and property, insurance, money, shares and bonds. This is known as their estate.
The first task of the executor is to pay off any outstanding debts that are owed using the estate. The creditors that are owed money are usually paid in a certain order; mortgage then rent arrears, council tax, loans and credit cards and finally debts to the exchequer. Spouses or partners do not inherit the deceased’s debts unless they have acted as a guarantor against a loan or the house is jointly owned.
Nothing will be paid to any beneficiaries until the all of the debts have been paid off from the value of the estate. If the value of the estate is not enough to cover the outstanding debts and you jointly owned a house with a deceased individual then you may be forced to sell the property in order to satisfy the creditors but this all depends on your legal position.
Dealing with debt after a death can be hard to come to terms with as it’s a double blow and can really make life miserable in a short space of time. So to avoid unnecessary undue problems then remember to plan ahead for unexpected circumstances.
February 3, 2009
Is there more to a marriage than love? It’s not surprising that many couples stay together when the love fades for financial reasons. This practical approach to marriage can stop people falling into debt and don’t forget that married people are much more likely to avoid depression and live longer than their single counterparts. I’ve been reading some debt news articles about relationships and debt which prompted me to write today’s article.
Stay together for financial reasons can make perfect sense considering what could be at stake. So what are the pros and cons?
Children, not only do you give them emotional stability by staying together but also the financial stability to allow them opportunities and open doors that otherwise would not be available to them. Staying together means you don’t waste your money on solicitors, accountants and estate agents, which may come heavily into play for couples that have lots of assets. There is the question of how much you are willing to sacrifice, maintaining your present style of living and not feeling financially restricted can be a major factor in staying together as getting use to living below your means is difficult and will put a huge strain on you and your children.
You need to ask yourself how much will you stand to lose, if you do all the number crunching and the amount won’t create a major financial meltdown then there is no reason to stay married if the love’s not there. If you have substantial financial assets that you have built together such as houses, cars, stocks and bonds as well as retirement funds and insurances that are registered in both you names then you may want to think twice before you call you solicitor for those divorce papers. A separation may be the way forward if you both stand to lose out big-time as a divorce is permanent and may require the 50-50 splitting of your assets whereas a separation involves a different set of financial rules.
Ask an accountant to do all the sums for you and check the financial burden if there were a divorce as it’s not only the splitting assets but also the tax implications. Young couples do not carry so many assets so separation or divorce is far easier as there is far less financial worries involved and they have the time to start building up their finances again however older couples have a far more substantial portfolio so would stand to lose far more.
Staying married when you can’t be lovers is easy as long as you remain good friends and pursue your own dreams and interests, money is far easier to negotiate when your are friendly with each other.
Most people would frown on those staying married for the money but should they one day find themselves in the same situation they may have second thoughts.
January 28, 2009
Reducing your carbon footprint is all the rage at the moment and If like me you don’t like to spend lots of money on expensive products that are made from super sustainable resources and don’t like to give up some of those small luxuries then you’ll be please to know that there are a few great ways of going green that can save you bucket loads of cash.
Drive a bit slower
Easing off the accelerator pedal can drastically reduce your carbon emissions and dramatically improve your mileage. Reducing your speed by just 10mph can improve the mileage of your car by as much as 15%. Avoiding sudden braking and quick starts, you should try and anticipate the lights. Letting the engine idle also wastes that precious fuel so if you expect a long wait then turn the engine off. Doing all your errands on one day will also save you nipping out every day to do one of them, saving you money on fuel and lowering your emissions. Not driving at all would be ideal but we all know how hard a luxury this would be to give up.
Wash clothes effectively
Front loading washing machines use a lot less water and 60% less energy than their top loader counterparts, to save the most money and the environment you should be washing your clothes in cold water as there are many fantastic products out there that will clean your clothes in these low temperatures. You should always make sure the washing machine is full and not just use it to wash one t–shirt at a time. Tumble dryers should be used efficiently as they use a great deal of energy so running full loads and doing two or more loads in a row to make use of the heat that is already in the dryer is a much more efficient process. Using a clothes horse or washing line would be far better but if you’re in a rush then the tumble dryer will have to do.
Video Conferencing
Why do companies waste so much money travelling to the other side of the globe to have a 1 hour meeting in which nothing is ever agreed? The emissions from the planes and taxis and other modes of transport taken are making a significant dent in the atmosphere as well as the money it costs the company is ludicrous, sure talking face to face with someone is far superior for a meeting but for long distance meetings why not just have video conferencing using free software such as Skype.
Programmable thermostats
Just turning down your thermostat can save you a fair bit of money, programming the thermostat to come on at certain times is even better so no unnecessary energy is wasted and even more money is saved. Having the heating come on in the morning and the evening for a few hours makes far more sense than having it on all day and night. You don’t need it on at night while you’re all tucked up in bed and don’t need it on throughout the day if you’re out at work so it’s just more intelligent to have it on for a few hours a day on a timer.
If you follow these basic ideas you may stand to make save some serious cash as well as saving the planet
January 21, 2009
If you have debt problems and the January blues are getting you down and need to get it you need to pick up the phone and call a debt management service provider, but before you do, that make sure you the debt solution team you pick is right for you and offers a good service with no loopholes of hidden articles.
Choose a reputable company
Many debt management services are being offered over the web but don’t just select on gut instinct, try to do a simple background check on the service provider. You want to be with the people who will genuinely help. The company should employ experts and the debt management service should be more one on one counseling than anything else. You should be dealing with a real expert rather than somebody who just poses to be one. In order for you to be guided accordingly, you have to be with the best people.
Questions to ask
The company should have a good track record and you should ask each company lots of questions before a decision is made:
1. How many people are actually helped by the company?
2. Are its clients satisfied with the service they got?
3. Are the services effective?
4. What does this service cost?
5. Will I be able to get debt free?
These are questions that you need to find the answers to before you commit to a specific debt management service.
A personalized service is key to getting the best out of the debt advice that will be received. You have to make sure that the debt management service provider looks deeper into your personal needs and requirements and not just leave you out in the cold with a big fat fee for them doing nothing.
Choosing a debt management service provider that will effectively take you towards debt-free living requires that both you and they share the same goals of you being debt free for life. These are the things that you should consider when selecting a debt management service provider. Remember, your chance to be free of debts is in their hands. Both of you should be helping each other.
January 8, 2009
Are you always being plagued by the ever increasing energy prices? Last year gas, oil and electricity prices rocketed to sky high levels and most people were left feeling very out of pocket and not only are these costs jumping to new unseen levels but the credit crunch is hitting hard and so any chance of that pay rise is likely to be out of the question.
One simple, effective way to save money on those dreaded bills is to get some thermal underwear. Ok so I don’t mean wear them to work but when you’re in the house just lounging around you could put on some thermals and turn the thermostat down a few degrees, not only will you be extra toasty warm, but by lowering the temperature by 4 – 5 degrees can help reduce your energy bill by up to 10%. Thermals only cost around £10-30 for a decent set; just think of the return on investment, they will probably have paid for themselves after just one month.
Thermals have had a bad image for a while but there are many brands out there that do not conform to that stereotype image, Damart for example, have been manufacturing thermals for 55 years and have very stylish and colourful ranges. More expensive thermals are even better at insulating and keeping you snug so if you fancied spending a little more cash you could buy some really good thermals and turn the heating down even further to save even more money.
This January looks set to be a cold month and no doubt we will all want our heating to be on high but for those of you who take my advice and get some thermals you can laugh at the poor fools who didn’t when the next quarterly bill comes.
January 6, 2009
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