One Advice | Bankruptcy, IVA & Debt News

Young people are apparently more likely to face the pitfalls of recession and the credit crunch, in comparison to older generations according to a study by the Chartered Insurance Institute (CII).

The CII report that the IPOD generation – Insecure, Pressured, Over-taxed and Debt-ridden – will suffer the effects of recession due to being both overprotected and isolated from financial services, as financial advice and products is not tailored to an IPOD’s needs.

This term covers young adults between the ages of 18 to 24. Over half have up to £10,000 of unsecured debts and a fith owe even more than this, meaning that many of them may need debt help in order to effectively manage their finances.

Trevor Matthews, CII president, said: “What is striking in this report is that Ipods possess the highest potential for appreciating the good value of advice and yet are not benefiting from it.”

Valentine’s Day is just around the corner. And even before these credit-crunch times, we all know how it can often turn out to a very expensive day to show your love, especially if your other half has expensive tastes! But it is possible to be romantic whilst living on a credit crunch budget. Here are some ways to beat the credit crunch and still have a romantic day….

1: Be romantic and cook a meal… Cook your partner’s favourite meal at home instead of facing a bustling restaurant where the romantic atmosphere is bound to be spoiled by at least one arguing couple. Not only will cooking at home provide you with a more romantic and intimate atmosphere with the addition of some cleverly placed candles and soft music, but you can also avoid over-priced wine and the waiter’s tip!

2: Go for a walk, or a drive… If it is too cold to go for a romantic walk, then go for a drive to those ’special places’ from the past, such as the place you first met or shared your first kiss and talk about the good times together, and maybe even re-live them.

3: Write a love note or soppy poem… Use the blank space in your Valentine’s card imaginatively. Write a love note or romantic poem which they will be sure to treasure. And if you are stuck for romantic words, try writing out an old verse which truly expresses how you feel.

4: Put together a mix CD or MP3 playlist... Go back to your teenage years when you used to compile a mixed-tape for your latest crush. Put together all those songs which mean so much to you, or your favourite romantic songs. Your partner will be very impressed by the thought and you can use them in idea number 1.

5: Make heart-shaped treats… Use the credit crunch as an excuse to reignite your culinary skills. Bake heart shaped chocolates, cookies or cakes together from scratch.

6: Rent a DVD, get a takeaway and a bottle of wine… Nothing can de-stress you more than sitting down together and watching a DVD (to stick with the Valentine’s theme, make it a romantic one!). Turn the lights down low and cuddle up on the couch together with your favourite bottle of wine, much more romantic than a jam-packed cinema.

7: Candles, candles and more candles… Nothing says romance as much as candles do. Tea light candles are really cheap to buy. Purchase a bag and dot them all around the house to really set the Valentine’s mood.

8: Make your own Valentine’s Day card… It can be much cheaper, and much more personal to make your own Valentine’s day card. Find some romantic pictures of the two of you to use this as your basis. Putting some rose petals in the envelope is an additional romantic touch.

9: Create your own snow messages… If it is snowing this weekend, and chances are it could be, make a solution of water and red food colouring to surprise your loved one with written love notes in the snow. And take a picture in case the snow starts to melt.

10: Forget about your finances, just for the day… If you really are struggling with debt then sometimes it can be very hard to forget about your problems. Even if you are worried about your debt management plans, try to push it aside for just one day. As you can see from the tips above, you don’t have to spend a fortune to enjoy a romantic valentine’s day with your loved one.

Have we missed out any cheap credit crunch Valentine’s ideas? If so then please feel free to add your suggestions in the comment box below…

The worse of the credit crunch is over, or so we are told, but that doesn’t mean that you have to go back to your old spending habits. There are a number of excellent money saving ideas to stick to and ensure that you can keep your debt management in check.

Many of us found ourselves coping with the worst of the credit crunch by adopting new money-saving strategies that were designed to cut costs, avoid spending more than our income and ensured that our personal finances are in check. Now that the credit crunch is improving, it is important that we don’t abandon these credit crunch spending ideas and find ourselves returning to our old ways of spending.

There are a number of ways to save money, and the following tips are really simple to keep to meaning you can save money easily, which is what everyone wants to do!:

1. Voucher Codes. These were buoyant during the worse of the credit crunch when companies tried to make sure that we still kept spending with them. But the good news is there are still gems to be found and these vouchers could save you a significant amount. You can use these funds to pay off your debts a little bit quicker.
2. Comparison Shopping. Don’t feel the need to be loyal to your supermarket. Shopping at different retailers means that you may be able to save yourself some additional money by taking advantage of instore special offers! Don’t forget that you don’t have to buy branded goods or the best supermarket ranges, standard store brands can be just as good, and even better for your bank balance.
3. Comparison Websites. It is not just your grocery shopping where you can save money by switching stores; comparison websites have opened up a number of different opportunities which allow you to save yourself money on all sorts from travel insurance, home insurance, car insurance etc. Make sure you take advantage of these offers and don’t spend more than you have to.

Learn to embrace your new-found frugal ways and these credit crunch spending ideas to make sure you can take greater control of your finances without making any major sacrifices to your standard of living.

Charities could soon suffer from the credit crunch as Britain is becoming more frugal. Research by nfpSynergy shows a direct correlation between GDP (Gross Domestic Product) and charity income since 1980.

It shows that charities have had a dip in their donations when the average disposable income has fallen. Although charities have not reported a drop in donations yet, there is an average of 15 months between the drop of disposable income and charities.

Jonathan Baker of nfpSynergy commented: “Some charities have done well during a downturn, perhaps by being very efficient and tightening their methods.” But are advising people to be aware of this trend.

The credit crunch has changed all of our lives in some way, meaning that many of us may feel as though we have debts that we cannot afford or that we are becoming penny-pinchers in order to make our pounds go further.

Lloyds TSB have released a Financial Face of Britain report showing that the credit crunch has shown both positive and negative trends in the way that we deal our finances. One in three of us have curbed our spending habit over the last six months so we can cope with the economic downfall.

However, due to the rising cost in living, the financial face of Britain shows how two out of every five adults are now saving less with the 45-54 age bracket having to cut their savings the most severely. In addition, over four million do not have any savings put away.

Mark Cockburn, Retail Network Director, said: “It is difficult to put money aside with rising bills and ever increasing household expenses. While everyone understands the good sense in saving, what consumers told us they need is more guidance and advice on how to save more”.

2008 was undoubtedly the year of financial doom and gloom, so the fact that ‘credit crunch‘ has been named the Word of the year by Countdown’s Susie Dent is no surprise to anyone.

Dent comments: “Specialized vocabulary is now firmly on the British public’s radar. As fears of a recession escalate, it may be productivity of the linguistic kind that is the safest bet. ‘Credit crunch’ is an example of an established term – it was already in currency back in the 1960s – being resurrected as circumstances change”.

There has also been further entries which Dent sees as important words of 2008 when it comes to describing the UK financial crisis, these include:

• Ninja Loan – A loan given to someone who has ‘No Income, No Job, No Assets’.
• Jingle Mail – Sending house keys to the mortgage company because of repossession.
• IPOD – An acronym for ‘insecure, pressured, overtaxed, and debt-ridden’.
• Homedebtor – A homeowner whose mortgage is so large that they are unlikely to ever pay it off.
• Going Underwater – Falling into negative equity.

Not only have takeaways become the victim of the credit crunch, but it seems as though more cash-strapped Brits are spending their Saturday nights at home as their disposable income is on the decrease.

According to a new survey by Halifax Home Insurance, 60% of those polled now spend Saturdays nights at home with friends and family rather then go out to restaurants or for an evening at the local pubs and clubs.

84% have admitted that the change in weekend spending habits is due to an active effort to try to manage debt levels as they struggle against the credit crunch and soaring household bills. Many are willing to share debt free tips as 73% said they plan to share money-saving ideas with friends and family.

Paul Birkhead, of Halifax Home Insurance, said: “They say Brits are at their best when times are challenging, and our research clearly shows we’re being resourceful in watching the pennies while looking to have a good time – and it’s bringing people together.”

The economic downturn is at risk of catching many Brits by surprise, and we have been urged to recession proof our income. Fool.co.uk have released figures which show that 70% of the employed have less than 20% of their monthly income remaining after all living expenses have been paid for.

This could lead to many seeking debt help and advice, especially as unemployment has been predicted to rise by 200,000 by the end of 2008. Many of us need to take better control of our finances, especially as one in eight people are currently spending more than they earn.

David Kuo, head of personal finance at Fool.co.uk, said: “We are only in the early stages of a recession so we have yet to feel the full impact of the economic downturn. Consequently, it is important to tackle our finances head on now before it is too late to do anything about it.

Tips to Recession Proof Your Income

1: Save More- With the risk of unemployment on the increase, it is essential that those who are in employment begin to save more of their salary. Challenge yourself to save a certain amount each month and put this in a high-interest savings account.

2: Spend Less – To compliment the above tip to recession proof your income, it is essential that you are spending less on a monthly basis. This might mean cutting back on treats, such as glossy magazines or the morning shop-bought coffee.

3: Examine Your Debt – You might find that points one and two are almost impossible as you have a high percentage of your outcome going out on your unsecured debt. If you are struggling and have began missing payments then it is essential that you seek expert help ASAP. One Advice are a leading debt solutions provider and we can help you reduce your outgoings to your debt.

Take the 1 Minute Debt Test to see which debt solution is right for you.

Christmas tends to be a time of year where we forget how to budget and any sense of keeping track of our expenses seems to go out of the window. However, come the New Year you could be stuck with high credit cards bills detailing purchases you can’t even remember what you spent. If this is you, it is time to nip this habit in the bud so you don’t spend January wondering how you will ever become debt free.

But don’t panic if you already feel you have started the festive seasons by overspending, there are still a number of ways to have a credit crunch Christmas where you can cut unnecessary Christmas costs, such as:

1: Channeling your creative side: For those of you who are arty or feel as though you are neglecting your creative side, Christmas can be the perfect time to channel this talent by making your own Christmas gifts, cards, wrapping paper, gift tags etc. It may take a little forward planning but your friends and family will appreciate the effort you have made and it is far more personal than anything you can buy in the shops

2: Plan your Christmas food shop: There is no easier way to have a debt-free, stress-free, credit crunch Christmas than by planning in advance. There are a number of websites where you can check the prices of popular ingredients and use this to plan where you are going to do your shopping.
You may also be able to take advantage of online voucher codes by shopping online but watch out for additional delivery costs and remember to book your delivery slot as soon as you can so your groceries can be delivered as close to Christmas Day as possible, no-one likes a mouldy sprout!

3: Avoid the High-Street rush: Unless you are looking for something in particular, one way to have a credit crunch Christmas is to avoid the High Street altogether. You have better chance of finding the best deals online and there are a number of online comparison tools which can assist you in making sure you are getting the best deals. Don’t forget to see if there are any discount codes you can use or whether you can get cash back on your purchases.

4: Don’t undo your hard work in the sales: If you have got through a credit crunch Christmas pretty much unscathed, don’t undo your hard work and let the sales lead you seeking debt advice. Remember to shop sensibly in the January sales and make sure you only buy items you really want and cannot do without.

5: Don’t be in denial. If you are reading this and have already overspent over Christmas, there is no need to panic. One Advice are here to help you with any financial struggles you may be going through. No matter how bad your debt problem has got there is a debt solution, such as an IVA, debt management plan or even bankruptcy.
Don’t bury your head in the sand, contact one of our specialist debt advisors now for free advice by filling in the enquiry form to the right of this article.

The credit crunch is hitting hard with the average Brit struggling to cope, as their monthly outgoings soar by an average of 26% during the past two years alone. According to research carried out by insurer Combined Insurance, this hike is being proportioned to higher housing and energy costs.

The average person is now spending £1,281 a month on bills and general costs of living, which has shot up from £945 in June 2006. This research shows that, on average, people are spending around a third more on rent and mortgages than they were two years ago. Everyday bills such as television subscriptions, electricity bills and water rates have rose by an average of 30%.

Those with children have been hit the hardest, as families have found a 77% increase in the average child care costs and other spending, such as clothing, has increased by 37%.

Director of Combined Insurance, Nigel Brittle, said: “The many cost of living hikes are taking their toll on the monthly budget and many Britons are living on the edge with their finances.”

Because of this increase, it is inevitable that households are going to have to cut back on their spending in some areas. This research reports that people are spending 8% less on insurance and 7% less on telephone and broadband costs.

The credit crunch is hitting the whole of the UK hard, bit it seems as through the over 50s are the ones who are suffering the most. Research by the Post Office reveals that almost half of the 50-plus need help to manage debt as they resort to using their credit cards in order to afford daily living costs, with three quarters having access to more than one credit card.

Putting money aside for a rainy day is becoming more of a hope then an actuality, as a third of those in this age bracket are unable to save regularly.

Duncan Caesar-Gordon from the Post Office said: “In an economic climate where living costs are soaring, over 50s are finding they cannot afford to save and are more reliant on credit.”

Sadly, these figures do not get any better with age. 57% of the over 70s are unable to make any deposits to their savings and 64% admit to regularly paying for food with credit cards.

As the UK well and truly heads towards a Credit Crunch Christmas, the Norwich Union have reported that although we will be forced to cut out the usual excesses of the Christmas season, we’ll enjoy it!

The report finds that 80% of us are welcoming in the credit crunch Christmas bugeting with welcome arms, as we feel less worried about having to spend lots of money and getting into christmas debt, and instead are more concerned about spending Christmas our family and friends.

Spokesperson for Norwich Union, Louise Colley, commented:”It’s good to see that we’re refusing to let the credit crunch entirely steal our Christmases and planning more traditional, less expensive celebrations this year.”

The Banks behind the lending boom are now hindering the recovery of the financial system by being too cautious with their money. This has lead to a warning from The Bank of England stating that banks need to spend more of their cash in order to alleviate the credit crunch.

Their latest Financial Stability Report firmly accuses banks of being overly cautious, and that they are refusing to lend any more money in fear of further credit crunch losses. However this spending is needed in order to speed up the recovery of the UK financial system.

The housing market has been seriously hit by the credit crunch, with the number of mortgages decreasing and an increase in the cost of lending. The Bank of England further estimate that mortgage approvals are at an all-time low, falling an average of 44% from the previous year.