Even though the number of the UK population experiencing heavy debt burdens has been rising for some time, many people are still suffering in silence.  They seem to think that their problems will sort themselves out when in reality they need to act, and act NOW!

There are masses of debt consolidation services available in the UK, and while you may need to extend your payment terms, there is a real chance that you could soon see the pressure of debt being reduced.  These are not the fly by night characters which you see in the press, these are regulated companies who make a living out of advising people with debt problems and introducing them to other financial institutions.  While they do normally receive a commission for introducing you to a financial institution, the benefits are there for all to see.

So why do people not make more use of these services?

One of the main reasons why people seem afraid to own up to their financial troubles is pride and the worry of what people might say.  However as they say, pride comes before a fall, and the longer you leave it the deeper that fall will be.  Financial problems have a habit of mounting up once the rot sets in, and while initially you may have missed one payment, it can soon lead to you falling behind on your mortgage, your credit card payments, etc as you struggle to juggle the balls in the air.

Many people are also afraid of what the banks might say, and what they might do.  However, let’s not forget that it is in the interests of the bank to keep you away from bankruptcy, and the possibility that they may receive nothing.  They would much rather you refinanced your debts and paid a smaller amount back per month over a longer period.  They won’t do YOU any favours, but what may be beneficial for them may also be beneficial for you.

We cannot stress enough the need to face your financial worries head one, make use of the mass of debt consolidation services available throughout the UK.  You will be surprised how much the pressure starts to lift as soon as you make a positive move.  What are you waiting for?

As the banks continue to try and increase their fee income, more and more consumers are complaining about increased overdraft charges.  While everything is now legal and above board, many are still receiving a shock when they open up their bank statements.  As the economy moves downwards and money becomes tighter we will see more people double checking their statements!

So what can you do to reduce the total overdraft charge which appears on your statement? Did you know that many banks will give you a free overdraft – up to a certain limit – if you actually ask them?

The subject of overdraft fees is something which has caused major concerns over the last couple of years, and the banks are now very keen to get their fee structures back on track.  They have been advised that their fees should be more transparent, easier to understand and above all the fee should fit the service. 

Do you depend on your overdraft?

It seems that more and more people actually depend on their overdrafts to see them through each month, especially with Christmas fast approaching.   While a £5 fee per month on your overdraft may not seem an awful lot, when you consider you may be paying £60 for the year, on an overdraft which may be just a few of hundred pounds – does it really seem that economical?

For those with a regular income, and an overdraft which rarely goes over a certain limit, it may well be more worthwhile taking out a short term loan to pay off the overdraft.  The interest rate on the loan would be no where near the effective rate on your overdraft, so you would benefit from a more structured debt repayment plan, as well as reduced interest charges.  Now I bet the banks did not suggest that to you?

The last 20 years has seen a massive increase in the amount of credit cards issues in the UK, not to mention a major pile of debt which has added up over the years.  Everyone seems to have the best intentions when they take out that new credit card, but few will ever payback the full amount, with credit card debt repayments often becoming a way of life for many. 

If you have any outstanding balances on your credit card you should consider a credit card debt consolidation program to bring your finances back under control.  Make use of the many interest free periods available on a range of credit cards, thereby reducing your interest payments in an instant and also allowing you to pay off more of the outstanding capital.

The credit card debt consolidation sector is now an established area of the finance industry which is showing substantial growth.  While you may ask yourself what is in it for the finance companies, you would be surprised how they are able to extract a £5 fee here a £5 fee there – fees which can add up across the years.  After the ongoing overdraft compensation situation is resolved we could well see the financial industry fight back, with many expecting the end of free banking, the end of charge free credit cards and more charges for the consumer to digest.

As Christmas approaches it has never been more important to get your finances into order and reduce your interest payments as much as possible.  Lower interest charges will give you the chance to reduce the actual debt owed, allowing you to be debt free quicker.

A recent report in the UK financial press has indicated that some 25% of the UK population are suffering from unmanageable debt, and with the economic situation set to get worse this figure looks likely to rise substantially.  Are you stuck in a debt trap?

If you are stuck in a debt trap it is essential that you are proactive rather than reactive, and do not leave it too late to sort out your affairs.  Too many people in the UK would rather bury their heads in the sand and hope that all turns out well in the end – the chances of this are minimal!

Unless you tackle your debt problems head on there is every chance that you will get yourself into a situation where you have little control, maybe looking at an IVA solution or Bankruptcy and the problems associated with these situations.  By tackling your debt problems early it may be possible to consolidate your debts into one manageable amount, possibly spread out over a longer time scale. 

While there is no pain free way to “fix” your personal debt problems, the longer you put them off the worse they will get.  A simple call to your credit card company, your bank, etc to alert them to your problems may well yield a lot more useful information than you might expect.  It is in their interests to keep you solvent and keep you from the clutches of either an IVA or Bankruptcy, where they will be forced to write off large amounts of debt.

Do not be scared to admit that you have problems, as this is the first stage of your fight back.  That is not to say that either an IVA or Bankruptcy may not be the best option for you, but either way you will take more control of the situation and relieve some of the pressure in the long term.

As consumers gear up for what promises to be a good, if not spectacular Christmas shopping period, it seems that we will soon see a stand off between the consumer and the retail sector.  Stuart Rose of Marks and Spencer recently pleaded with his retail counter parts to hold firm in the face of pressure to start early Christmas sales – forecasting that the consumer was ready to spend, and spend at full prices.  So who will win?

While this is the first time we have actually seen such a formal declaration from a leading member of the retail sector, in truth, this battle has been going on for decades.  Who will blink first, the consumer or the retailer?

In recent years we have seen a number of main retailers break ranks before the New Year’s sales and implement what have been drastic price cuts in some areas.  This year seems set to be little different, and the fact that the UK economy is forecast to decline over the net 12 months has some what handed power to the consumer.  Retailers will surely break rank as the competition heats up, and if the consumer is careful and willing to wait, there are surely many bargains to come.

So the moral of this post is, don’t be too hasty to get your credit card out just yet, because while you will save yourself interest payments the longer you wait, you also have the chance of getting your chosen items at a reduced price.   This year will be very interesting, now that Stuart Rose has most definitely drawn the battles lines.  Weapons at the ready!

While the rest of Europe continues to converge into one, the UK is being some what left behind but we are slowly making ground.  Whether the UK voters likes it or not, the UK is a major and very important part of Europe and it is highly likely that at some point we will catch up with the process, or risk losing our spot at the top table.  But how will it affect your finances in due course?

The main change at some point will be a change to the ECU, something which many are fighting but at some point it seems inevitable that it will happen.  This would see one interest rate set across Europe by what many expect to be a leading European Central Bank – with input from all member states.  While this would reduce the affects of currency movements, it will have a massive impact upon the financial sector.

In many ways it will make it easier to access European financial services, which under the EU finance directive, will see all members states receiving free access to other member state markets.  We will see a whole host of cross selling, new instruments introduced and a general expansion of the sector.  As the UK currently has one of the largest and most robust of financial sectors, we have most to lose unless we take some form of lead.

ECU mortgages and loans will soon become common place, cross European employees will be paid in the European currency rather than their own – well possibly…….

While there are many who claim that the above scenario will never happen, each year brings it closer.  The fight goes on but at some point it will become a case of the UK being left out unless the authorities go for full participation.  That time is not here yet, but it is not as far away as many think…….whether you like it or not.

As news of the credit crunch continues to dominate the financial pages, many are over looking the problems many entrepreneurs are forecasting after the increase in small business tax from 10% to 18%.  Recent research has shown that the vast majority of small business owners are very concerned about the lack of funding for inward investment, with many looking to delay or even cancel already planned expansion plans.  So why have the government taken this path?

After a campaign by a whole host of small business groups the Treasury had indicated that they were willing to listen and consider changing the new tax rules for small business – after initially simplifying the whole tax system. After much spin and bluff, nothing has happened and the government are now stuck between a rock and a hard place, unable to back track because they will losing facing, and attracting the continuing wrath of the small business environment.

Despite many promises to simplify the small business regulatory arena, the government have undone any good work of late, in one foul swoop.  A near doubling of the tax rate for smaller companies has ripped the heart out of many, coming at a time when the economy is set for a major shift downwards. What could go wrong has gone wrong for the Treasury over the last few weeks, and we are set to see more heartache for many industry leaders.

Where is the incentive to invest their own money and take a risk? Where is the incentive to fund new projects? Where is the incentive to even consider starting a new business?

Finance costs have risen substantially, taxes have nearly doubled over night and the economy is turning down.  Can there be a worse situation for the band of UK small company entrepreneurs?

As news that insurance company Aviva may have been the victim of a cruel hoax, designed to give inside investors a massive windfall, it seems that the climate of uncertainty is continuing in the financial sector.

Aviva is one of the UKs largest insurers and what appeared to be an internal memo from the company’s Finance Director Philip Scott to Chief Executive Andrew Moss cast serious doubt on the company’s financial health.  The fake memo was released to one of the tabloid newspapers from a “whistle-blower” from within the company, who was supposedly looking to expose a possible liquidity problem.

After becoming aware of the scam the company alerted the Financial Services Authority who have taken up the investigation, and it was quickly confirmed that there was no truth at all in the fake memo.  This is a classic “bear raid”, which allows a group of investors to sell shares prior to bad news being announced, and then buy them back lower down – crystallising a potential massive profit for themselves.

While “short selling” – selling shares you do not own, with the intention of buying them back at a cheaper price – is not illegal, the circulation of false rumours and untruths is a serious offence which is covered by a whole host of financial regulations.  If the people involved in this scam are found then they risk serious criminal charges and possible prison sentences. 

This episode shows how uncertain and lacking in confidence the financial sector is at the moment, but customers of Aviva have nothing to fear – thankfully!

As the population still digest the enormity of the loss of confidential information for 25 million people in the UK, many are starting to ask the question, “Can the ID card program survive?”

The confidence in the governments ability to securely retain the type and amount of data which will be required for ID cards has forced many of the public and MPs to think again.  Can they really afford to back a system which has the potential to be even more damaging than the loss of 25 million records, can they take the chance that security systems and procedures are in place to retain and protect this information? The answer at the moment is no…………

It would be greatly unfair to say that the current Labour government were the only ones ever to lose such information, as it has happened time and time again in the past and will no doubt happen in the future.  One of the main problems for today’s government is the speed with which rumours grow legs and are manipulated by the press.  There will have been many occasions in the past, throughout the years, where information has disappeared in a similar fashion (although not on the same scale) and it has been kept quiet.

The government effectively had their hands forced with the current situation with rumours rife in the press and on websites, that something was seriously wrong.  Faced with such a problem and the fact the news was leaking out, a hurried statement needed to be issued, perhaps giving the authorities less time to stop the potential for fraud or find the discs in question.

The saga also puts the spotlight back onto recent redundancies within the civil service, at a time when MPs are holding out their own hands for more and more benefits, pensions and greater salaries.  Many are asking how MPs can justify putting the very services which we consider safe and secure at risk, while increasing their own income from the same pot – i.e. the tax payer.  

While the news that the HMR&C have “lost” two CDs holding the private and banking details of about 25 million people in the UK has been headline news for the last 24 hours, is your bank account really at risk? Will you become the victim of ID theft?

The sad fact is that no matter how hard the government try to convince people that there is no risk, there is a REAL risk to you from a number of different angles. 

Firstly there is the possibility that someone may actually have access to your bank details, your names and address, your previous addresses and your previous names.   Using this information it is not hard to redirect bank statements, cheque books and the like to a new address.

Secondly, there is a very definite threat of ID theft for both the adults on the discs and the children, with full names, addresses, dates of birth and national insurance numbers all present on the CDs which have gone missing.  This is a fraudsters dream, giving them more than enough information to apply for loans on your behalf, credit cards and many other financial liabilities – liabilities that you will be left with.

The Chancellor of the Exchequer stated yesterday that anyone found to have lost out due to this information falling into the wrong hands will receive full cover under the Banking Code.  But why on earth should the Banking Code be expected to cover what are in reality the short comings of the government? Whatever happens, if any compensation is paid out it will come out of the public purse in some way.  Forget those promises to be reimbursed; it is actually your own money they would use to do this!

While the authorities claim that the information does not seem to have fallen into the wrong hands as yet, you can bet your last dollar that each and every gang of crooks up and down the country will be looking for these discs, and the information held on them – something which could be worth millions of pounds in the right hands.  This is a problem which has possible repercussions many many months into the future – and you will only find out when it is too late!