One Advice | Bankruptcy, IVA & Debt News

Easter is always an expensive time of year and usually the weather isn’t warm enough to let your children play outside, but the credit crunch means that you also can’t afford to spend much extra cash.

So how can you entertain your kids during the Easter holidays whilst on a credit crunch budget? Here are 5 money saving tips…

1: Have an “Unbirthday” – Pinch the idea from Alice in Wonderland and celebrate your child’s ‘Unbirthday’. You can make a cake together, blow up balloons and invite other children around to celebrate. You might want to ask other parents to do the same or chip in for some party food so that you can keep your costs low.

2: Old-School Card Games – Take a trip down memory lane and encourage your children to play some of the old card games which you used to do as a child. These can be picked up pretty cheaply or you might have some stored from your youth, and there are a number of different games you could play, such as Go Fish, Old Maid, Donkey or Happy Families.

3: Invest in a family computer game – Games consoles are notoriously anti-social, but there are a number of family games which allow the whole family to play along. As a holiday treat you could buy one of these games which the whole family can play together.

4: Paper Mache – Paper mache may be messy but it is also very fun and allows your children to explore their creative site. All you need is some flour, water and old newspapers.

5: Piggy Bank Plundering – Keeping with the financial essence of this blog, if your children have piggy banks or you have jars of loose change lying around the house, you could give your child the task of counting up the money. You could use this extra cash to treat them to a family outing, such as trip to the cinema, or ask if they want to put it into a savings account for a larger purchase.

On the surface, credit seems like a positive thing, after all if you receive credit for something it is usually in praise of your actions. However when this turns to financial issues then the meaning becomes very different, as credit is an impostor term for debt!

We are all aware of the negative connotations which fly around the word ‘debt’, from newspaper reports to TV specials it seems like this debt burden is everywhere. But surely applying for that extra £100 credit doesn’t mean that you are in debt, right? Wrong.

Credit is something that we all want but, in reality, we can never have. As soon as you gain credit is becomes debt. Infact the idea of credit can really only be used in the future tense, as this dictionary entry explains:

Credit: (noun) The facility of being able to obtain goods or services before payment, based on the trust that payment will be made in the future.

Thus meaning that until it has been paid back to the lender, it is your debt. Everyday we are bombarded with ways that we can be offered credit, but maybe in reality these Credit Cards should really be renamed to Debt Cards.

Credit crunch has hit the poorest families with one in five of Brits going without a meal during the past 12 months alone. This figure soars to one in eight for those on low incomes, according to a recent study by Barclay’s and children’s charity NCH.

The poll revealed that 16% of those on the tightest budgets admit to missing a meal so that their family members have food on the table. Over half (57%) of families on low incomes admitted that there were finding it a struggle to feed their family in comparison to the same time time last year.

To avoid getting into further unaffordable debt during the credit crunch, 19% have gone without any heating in order to make up for the shortfall in their income.

Chief executive of NCH, Clare Tickell, said: “There’s no doubt that everyone is feeling the pinch at the moment and that those on the lowest incomes are suffering the most.” Their survey was in response to a new scheme which calls for families to take a tighter control over their finances so that they do not find themselves with unnecessary debt problems in the future.

The NCH advise in setting a food budget in help control your debt levels when it comes to supermarket spending and that money is not wasted on food that is never consumed. More than half of the 1,000 polled said that they feel guilty about the amount of food that they throw away but do not set a food budget to control their spending or take a list when they go shopping.

Cutting back on your spending can be hard, and you might find that you are constantly having to say ‘no’ to an evening out because everything costs money right? Wrong! Walletpop have put together a list of Fabulous Freebies meaning that you can clear your debts whilst still having a reasonable social life!

Here are a couple of their best suggestions:

1: Free Cinema Ticket - Orange mobile phone customers can enjoy two cinema tickets for the price of one every Wednesday at participating UK cinemas. All you have to do is text FILM to 241 from your Orange handset and you will be sent a unique code which allows you to take your friend to the cinema for free or you can agree to split the cost of the ticket.

If you’re not with Orange, you should think about signing up for a free pay-as-you-go SIM card as by topping up with a minimum of £5 credit, you can take part in the Orange Wednesday ticket offer. And £5 is often less than the price of a peak-time adult cinema ticket.

2: Free Food -The MoneySavingExpert.com website is constantly updated with the latest offers, including where you can get free or discounted food. Many of the major restaurant chains are offering discount vouchers so it is always worth checking before you treat yourself to a meal.

We will have to work 83 days to simply pay off a years worth of interest on loans, mortgages and credit card debt.

Today, Wednesday March 25, has been dubbed ‘debt freedom day‘ as it is the first day of the year that we will have earned enough money to cover all of the interest occurred in 2009, and the remainder our income can actually go towards paying off debts. According to research by Unbiased.co.uk,as a country, we owe £88.5 billion worth of debt, of which credit card debt counts for £59.8 billion.

David Elms, chief executive of the website, comments: “It takes a date like Debt Freedom Day to bring home just how much we are spending as a nation on debt and it will hopefully spur people into action to do something about their debts.”

PimpYourFinances.com have published a highly informative blog post which poses the question: Are You Honest With Money?

This question is something very interesting to think about especially if you are trying to take greater control over your debt management; even if our financial intentions are good there can be pitfalls along the way which sees us wasting money when we should be using it pay off our debts.

Am I Honest With Money?

• Do you put money away into your savings but find that you have to withdraw it because you have not managed to stick to your budget?
• Do you congratulate yourself by saying ‘no’ to your morning latte but later treat yourself to something from the vending machine?
• Do you miss payments to your credit card debt, not because you cannot afford them but because you simply forgot?

If you can answer yes to any of the above then it could be time to get your budget in order. Start simple – take a note of how much you spend over the month and write it all down. Make sure you take a note of everything from your weekly supermarket shop, weekend splurge or chocolate bar from the corner shop; every penny really does add up.

It is likely that most of us will need to get into debt at some point of your life, such as to buy a new home or to make home improvements. Every time that you apply for credit, your potential lender will check your credit rating to check your credit worthiness. If you have been turned down for credit in the past then it is important that you understand your credit file and boosting your credit rating means that you are more likely to be accepted for the loan or credit card that you want.

But how do you boost your credit rating? Follow these simple tips below…

1: Understand your Credit Rating – There are a number of ways that you can check your credit file. The three main credit reference agencies, Experian, Equifax and CallCredit, hold information about every financially active adult in the UK.

Between them, they will contain personal information about you such as previous addresses and details of any insolvency issues, such as bankruptcy, IVA or judgements against you. They will also contain information about your current and previous credit and financial history, such as how much debt you owe, the credit level available and your record of paying off debt.

For a small fee, you can have access to all of this information. Simply visit one of the companies which are listed above. Some even offer special offers where you can view your credit file for free for a limited period of time, but ensure that you are aware of the terms of this deal so you are not signed into one of their premium services.

2: Dispute any incorrect Bad Credit Rating References – There may be details on your file which is leading you to have a bad credit rating. So it is important that you make sure information about you is correct. (more…)

Due to current financial circumstances, it is becoming harder and harder to find cheap deals in order to switch around your credit card debt once introductory offers have come to an end.

Coupled with the rise of cost of living, it is becoming harder to clear credit card debt. But there are easy ways that could help you to afford credit card debt:

1: Budget – and stick to it. It is a simple task to work out your budget. To create a simple budget, all you need to do is work out your disposable income, which the money that you have left once you have deducted all necessary living costs.

But the hard thing to do it to stick to your budget. Keep a diary of your spending over a month and you will be able to see the little slips in your budgeting. Creating a fixed and affordable budget is one easy way to free additional monies which you can put towards paying off your credit card debt.

2: Say no to additional credit card debt. Paying off your credit card debt as quickly as possible will help to make this debt more affordable to you. But there is no point doing this if you continue to rely on your credit card. It might not be easy to give up your credit card habit, but setting yourself a realistic budget (as discussed in step 1), should help make this process a little more bearable.

3: Get debt help. Sometimes it is just impossible to make your credit card debt more affordable to you. And if your unsecured creditors are asking for too much, it can make life very stressful. But there are debt solutions out there which can cut the monthly amount that you have to pay for creditors, leaving you with additional cash to afford the essentials in life.

For further information and advice, do not hesitate to contact us. We can take full details about your credit card debt to help you find a debt solution which is right for your own personal circumstances, whether this be with a debt management plan or an IVA.

Contact One Advice today on 0800 048 1752.

Brits are unable to control their spending whilst they are away on holiday. According to a new report by American Express, 83% may need to seek holiday debt advice as they do not plan a holiday budget. One in three will fritter away their money at the airport on the journey home, just to avoid changing their foreign currency back to the British pound.

Holiday spending traps to look our for include duty free, with 20% of those polled admitting to going over budget to treat themselves to cheaper booze, cigarettes or perfume.

Kirstie Bayley from American Express says: “The last thing people want to do when they go on holiday is worry about money.” This is backed up by the stats, which show that just 17% of holidaymakers will keep to a tight budget abroad. In comparison, 45% said that they would blow their holiday budget in one if they saw something that caught their eye.

Worrying About Holiday Debt?

If you are worrying about getting into further debt whilst you are abroad, then you need to budget and find a way to tighten your purse strings whilst still having a good time! One Advice can offer you some simple but effective debt management tips to help you avoid needing holiday debt advice by ensuring that you do not fall into further debt whilst away:

1: Mobile Phones.
Mobile phones are a great way to keep in touch with the happenings back on British soil and gloat to your nearest and dearest about the glorious weather! But remember that International rates from your mobile provider can often be very expensive, making calls from Europe to the UK can cost you 38p a minute, and outside of Europe you can expect to pay even more. You can also pay up to 40p a text which is almost four times the regular amount!

Check with your mobile phone provider as some do international packages that you can bolt-on to your current contract, helping to save you from any nasty surprises when the phone bill arrives.

2: Shop Around for your Insurance.
Everyone needs to take travel insurance when they go abroad just in case the unexpected happens. However you will find that the price from policy to policy can change dramatically. Best thing to do is to shop around on the Internet and make sure that you check the level of excess you would need to pay in the event of a claim. Sometimes it can be worth paying that little bit extra for increased cover but there are bargains to be had on the Internet!

If you are planning to go away a couple of times or more in a year then it can be more cost-effective to get a annual multi-trip policy.

3: Book Airport Parking in Advance.
Another way that shopping around on the Internet can save you money is the cost of airport parking. Check out the special offers online, and sometimes it can be worth staying at a hotel close to the airport that will let you leave your car there. Best of all, see if you can get a lift to and from the airport, take the train or check local taxi prices as some firms will do you a special rate if you book a return.

4: Your Money Abroad.
Sometimes holiday makers can be financially stung when they least expect it and this damage can be dependant on how you finance your trip whilst you are away. Planning in advance means that you can really save some money:
a) Watch Out for Fees: Although your credit or debit card can be an easy to way pay for things, it can also be expensive. Most card providers add a currency conversion fee of up to 3% and withdrawing from a cash machine can add an extra charge per transaction!

b) Don’t Get Your Currency Last Minute: Shopping around for the best currency exchange rate is the easiest way to make your Sterling go further. However, leaving it until the airport means that it could cost you up to 11% more!

Money worries and debt fears are now the biggest issue for most Brits, overtaking terrorism and immigration as the most serious issues facing our country. This fear has rise by 21% from last year, according to research carried out by Axa.

Over half of the population (53%) believe that financial problems are the biggest cause in the UK today. Overall it seems that debt concerns are hitting Scotland the most, with 60% believing that this issue is a major problem.

AXA spokesman Steve Folkard said: “Money worries have a big impact on personal and professional relationships and in extreme cases they could even result in divorce and slower career progression, as people take out these frustrations on those around them.”

1: You are not the only one in debt.
If you are struggling with debts it could feel as though you are isolated in your problem and that you are the only one with money worries, this is just not true! In February 2009, Credit Action reported that the average UK adult owes £30,435 including mortgages.

2: Paying just the minimum amount on your credit card debt does nothing.
Only paying the minimum payments to your credit card debt should be avoided as you will barely be covering the amount of interest which is added on. This means that it will take you longer to clear your debt and you could, potentially, be paying hundreds (or thousands) more pounds than you originally thought.

3: Debt can be good.
Sometimes debt can be good, such as if you need to get out a student loan which will benefit your future employment earnings in the future or if you need to get a mortgage for your own home. Just make sure that you only borrow what you can afford to and that you shop around for the best interest rates.

4: Debt can also be bad.
Not all debt is good debt; debt can also be very bad! Credit card debt is very easy to get into especially if you are using your credit card to afford general cost of living items such as food bills, or you are using your credit card to pay restaurant bills or for fancy holidays.

5: Understand where your debt is coming from.
As point number 4 says, debt can be bad, very very bad! If you find that your debt is unaffordable and your credit card bills are growing each month and you are unsure why, then it is essential that you re-evaluate your spending. A good way to do this is by writing down everything you spend over a week or a month, and remember to include everything from the morning latte to the 4pm chocolate-fix from the vending machine.

This method is really effective in finding out where you waste money, and cutting down on these excesses means that you reduce the amount of debt you are getting into, and you may even have a little bit extra to pay off your debts each month.

6: You can get debt help.
If you have more debt then you can afford, it is possible to get debt help. The sooner you get debt help, the sooner your finances can be back on order and you are relived of any stresses that it is causing.

There are a number of ways that you can consolidate your debts into a lower monthly payment, such as a debt consolidation or debt management plan. Bankruptcy does not have to be the only way to get out of debt, seek professional advice about your finances.

Many of us are being overcharged for their utilities, often without even knowing it! But with just a little bit of forward planning you could easily save money by avoiding extra charges that many companies seem to be adding to our debts, but these fees are avoidable.

See if you are being charged for any of the following…

Credit Card Debt

Annual Fees – Some credit cards carry an annual fee. Although this fee may also include a number of benefits, it is no good in paying for a service which you don’t use. You might find that you will be saving yourself some money by switching to a credit card which does not include an annual cost.

Using your Credit Card Abroad – Using your credit card on holiday can be very costly, as many credit card companies add on a surcharge to convert the foreign currencies. Plan your holiday expenses and pay with cash or travellers cheques to avoid this charge.

Late Payment Fees – Late payment fees, penalties and charges can soon increase your debt and earn the card providers lots of additional funds, over the interest rate that you are already paying for the service. Try to pay by direct debit so that you never miss a payment or mark on the calendar when your next credit card debt repayment is due.

TV Charges

Television Packages – Do you have the full satellite package that you never use, or you only watch a few select channels? You could make some real savings by (more…)

Debt fears have hit the Bank of Mum and Dad as the credit crunch takes greater hold of their disposable income. According to research by Axa Insurance, the rising cost of living means that 17% of parents have cut back on children’s pocket money.

1 in 10 parents with children aged 16-18 have stopped lending money to their children, along with 1 in 6 parents who have children between 11-15 years old. Parents are trying to offer their children better debt advice, as one in five parents are encouraging their children to save their pocket money.

Alison Green of Axa said: “The bank of mum and dad has so far been quiet on the issue of how it will deal with the effects of the credit crunch.”